Vietnam PM Urges More Housing to Curb Rising Property Prices

HANOI, Sept 23 (VoM): Vietnam’s Prime Minister Pham Minh Chinh has called for faster housing development to address soaring property prices that have left many citizens unable to afford homes.

“Many people are in need of housing, but they can’t afford it because of high prices,” Chinh said during a meeting in Hanoi on Monday, according to state broadcaster VTV.

Government data shows apartment prices in Hanoi and Ho Chi Minh City have climbed 5.6% this year, averaging 80 million dong (US$3,028) per square meter. By contrast, the average annual salary of Vietnamese workers stands at just 98.4 million dong.

Economists have warned that Vietnam’s rapid economic growth, fuelled by credit expansion, risks creating asset bubbles in the real estate sector.

To ease the pressure, Chinh pledged to cut costs and simplify procedures for developers while directing the central bank to create loan policies with “reasonable interest rates.” He also instructed local governments to speed up social housing projects supported by low-interest loans for low-income households.

“Properly implementing housing policies and developing the property market will contribute to rapid and sustainable economic growth, while keeping inflation under control,” Chinh stressed.

Vietnam aims to contain inflation at 4.5%–5% this year. Consumer prices rose 3.24% in August compared to a year earlier, with rent and construction material costs climbing nearly 7%.

@Voice of Malaysia news