HCM City Running Out of Land for Workers’ Accommodation

Khu công nghiệp, chế xuất in Ho Chi Minh City (HCM City) is running out of land for workers’ accommodation, with existing housing only meeting 15% of the demand, according to HEPZA officials.

HEPZA’s Deputy Director of Industrial and Export Processing Zones Management Board in HCM City, Pham Thanh Truc, shared this information during a conference on the development of housing from 2016 to 2020 and the release of the 10-year plan.

HCM City currently has 17 industrial parks and export processing zones, employing 280,000 workers, of which over 60% are from outside the province. HEPZA has already constructed 16 accommodation projects, providing nearly 21,000 living spaces. However, this only fulfills 15% of the demand. During the 2016-2020 period, the city only had one worker accommodation project covering 7 hectares with 1,449 rooms, providing housing for 7,600 people in the Southeast Industrial Park.

The biggest challenge for HEPZA, according to Truc, is the lack of available land for adjusting the planning of workers’ accommodation and other utility projects within the industrial and export processing zones. The planning adjustments also require a significant amount of time and effort due to complex procedures. For example, the Tan Thuan Export Processing Zone has 8,000 square meters undergoing planning adjustments for workers’ accommodation, but it is facing numerous obstacles.

Tran Doan Trung, Deputy Permanent Chairman of the Ho Chi Minh City Federation of Labor, stated that although their organization has the funds and desires to build workers’ accommodation, they are unable to do so due to the absence of a mechanism for the participation of socio-political organizations in this type of project.

According to Trung, more than 70% of the city’s workforce are migrants, resulting in a low level of attachment to a specific area. This group often gives priority to short-term rentals instead of long-term home ownership. Therefore, it is crucial to clearly identify the needs for accommodation and home ownership. Trung emphasized that if the focus remains primarily on ensuring housing ownership for workers, the problem may never be resolved, as it is already difficult enough for them to meet the initial down payment requirements.

The Labor Federation spends between 500 to 600 billion dong annually to take care of workers. This amount can be used as an annual rental credit for workers instead of a one-time payment, as the Federation maintains a stable source of funds. However, there needs to be a mechanism for the Federation to participate in the construction of workers’ accommodation or dormitories.

Huynh Thanh Khiết, Deputy Director of the HCM City Department of Construction, shares the view that the demand for rental homes in the area is greater than the demand for social housing ownership. The city has conducted surveys and found that there are 60,470 rental houses available, meeting the demand of nearly 1.5 million workers and laborers. This group does not have a strong desire for home ownership due to their constant movement and fluctuation, so they prefer to rent for flexibility. However, the city’s housing policies have focused on construction and ownership.

As a result, Khiết stated that from 2021 to 2025, HCM City plans to prioritize rental properties for low-income individuals instead of selling homes. The Department of Construction is collaborating with the Department of Planning and Architecture to address any issues related to workers’ accommodation planning.

During the 2021-2025 period, HCM City aims to develop 500,000 square meters of rental housing, including approximately 7,000 apartments, and increase workers’ accommodation by 220,000 square meters, providing around 4,500 units. In the following five years, the city plans to add an additional 816,000 square meters of rental housing with 11,600 apartments and 480,000 square meters of workers’ accommodation with 8,000 units.

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