Housing for workers - a strategic step for sustainable industrialization

The process of economic restructuring has led to a shift in population structure. In particular, the wave of labor migration from rural to urban areas, from provinces to key industrial areas, has created great demand and pressure on housing for workers as well as other social services.

Perspective of social housing project for workers and laborers in industrial parks in the Southeast Economic Zone. Photo: Hoang Vinh

Workers' housing plays a very important role and directly affects the industrialization process in many aspects. Here are some of the main impacts:

Stabilizing the workforce - the core element of industrialization. Stable housing helps retain workers. When there is safe housing, close to the workplace, workers are less likely to leave their jobs, reducing the rate of sudden resignation, creating a sustainable human resource for industrial zones. Housing ensures basic living conditions, helping workers have good health and spirit, thereby working more effectively, helping to increase labor productivity.

Meeting the demand for workers' housing is a factor in attracting investment and accelerating industrialization. Workers' housing is essential social infrastructure. Investors are often interested in the ability to provide housing for workers before setting up factories, so good workers' housing helps localities attract FDI capital and develop industry faster. Therefore, this is a factor that creates competitive advantages between localities. Industrial parks with a complete ecosystem (including housing) will be more attractive than places with only empty land and lack of infrastructure.

Creating momentum for urbanization and sustainable development. Workers' housing is not only a place to live but also promotes the formation of satellite cities, commercial services, education , health, transportation, etc. around industrial parks. This helps to connect industry and urbanization. Moreover, it reduces the pressure of uncontrolled immigration. Without workers' housing, workers have to rent temporary accommodation, causing overload of urban infrastructure and complicated security and order.

Long-term social and welfare impacts. Stable housing for workers improves the quality of life, increases worker attachment to the enterprise and the locality, thereby forming a stable community. At the same time, this is a factor in reducing social inequality. Affordable housing for workers helps them not to be left behind in the industrial development process.

Dormitory for workers invested by Luxshare ICT Group in VSIP Nghe An Industrial Park. Photo: Tran Chau

Dormitory for workers invested by Luxshare ICT Group in VSIP Nghe An Industrial Park. Photo: Tran Chau

Thus, workers' housing is not only a social security policy but also an important driving force to promote industrialization in a sustainable, effective and humane direction. Investing in workers' housing is investing in the social infrastructure serving long-term industrial development.

Recognizing this issue, the Party and the Government have long been interested in supporting the development of social housing for sale, hire-purchase, and lease for policy beneficiaries and low-income people (including workers). Not only the State's support policy, but this issue has also been supported by the business community and the whole society (especially housing for policy beneficiaries and poor households). For Nghe An, from 2021 to present, the province has completed the construction of 1,756 houses in 3 projects and works, including 300 social houses for workers and 1,456 worker accommodation houses. Currently, the province is implementing 7 projects, planning to add 1,553 more houses including: 1,381 worker accommodation houses and 172 houses for low-income people. At the same time, 41 projects have been planned, of which 34 projects have selected investors (about 28,000 apartments).

However, housing for workers in industrial zones nationwide only meets about 30% of the demand. Most migrant workers are renting public housing with poor living conditions. Furthermore, according to the investigation and survey results of the Vietnam General Confederation of Labor, out of a total of 220 industrial zones and export processing zones nationwide, almost none have built nurseries, kindergartens, primary schools and medical stations to serve the essential needs of workers.

For Nghe An, compared to the actual demand, even the number of houses completed and under construction only meets about 10%. Especially for young couples who are both workers, access to housing is even more difficult (there are no apartments for families in boarding houses, and social housing for low-income people is very scarce).

Social housing project for workers and laborers in industrial parks in the Southeast Economic Zone. Photo: PV

According to the Industrial Park Development Plan of Nghe An towards 2030, the labor force in industrial parks is forecasted to be about 250,000 people (an average growth of about 12-15%/year compared to 2024). If it is expected that about 65% will have demand, there will be a need for about 60,000 apartments by 2030. In Decision No. 444/QD-TTg dated February 27, 2025 of the Prime Minister, the target for social housing development by 2030 in Nghe An must reach 28,500 units (of which 19,500 are for workers and 9,000 are for low-income people). Thus, in the next 5 years, Nghe An needs to build more than 26,000 units. However, if on schedule, by 2030 Nghe An will only be able to meet about 30% of the demand. This is a huge challenge in the coming period.

Nghe An is on the path of acceleration, a breakthrough task is to increase investment attraction in the field of industrial development. This will create a great pressure on housing for workers. The problem of housing for workers is not only to solve the problem of social security, but also a solution to develop human resources, attract investment and improve social labor productivity. To solve this problem, I would like to propose some of the following issues:

First of all, for social housing projects, it is necessary to do a good job of site clearance and planning of “clean land” to create conditions for investors to implement projects as quickly as possible. It is necessary to review and integrate planning of social housing, workers’ housing and cultural-social institutions, and expert housing into planning of industrial zones and clusters (ensuring that 70% of workers have the need). Review public land funds and inter-urban land for use in building social housing. In addition, in urban development planning, it is necessary to pay attention to developing the model of “satellite urban clusters for workers” with adequate social infrastructure and reasonable investment and operation mechanisms.

Second, reform administrative and legal procedures, shorten appraisal time, prioritize social housing projects, worker accommodation with land funds near key industrial zones. Effectively implement the Government's support policies on incentives for beneficiaries (workers, investors). Quickly establish and operate the Local Housing Development Fund.

Third, do a good job of communication, publicize and transparent information, especially the multi-dimensional monitoring mechanism.

Fourth, there should be a socialization mechanism to attract private enterprises to participate in social housing investment with non-budgetary funds (with State support such as tax incentives, technical and social infrastructure support, or PPP mechanism, etc.). Furthermore, there should be a mechanism to require enterprises to have accommodation plans for workers when granting investment licenses with State support. At the same time, it is necessary to consider policies to support households with conditions (exemption or reduction of land tax, income tax, electricity and water, etc.) to encourage and develop the model of "standard boarding houses" for people to participate in the social housing program.

Fifth, promote the role of the Trade Union organization in representing workers' interests in supervising and investing in housing for workers to rent or buy.

Finally, promote the application of science and technology in construction to improve the quality, safety and reduce the cost of social housing and workers' housing. Apply digital technology to manage social housing and workers' housing in a scientific, objective and transparent manner.

Developing workers' housing is not only a social security goal to ensure human rights but also a competitive solution to attract investment, a solution to develop human resources, a driving force to promote industrialization as well as socio-economic development of Nghe An province. With the high determination of the Provincial Party Committee, the Provincial People's Committee and all levels, sectors, as well as the business community and people, it is hoped that the Social Housing Development Program in general, and workers' housing in particular, will soon meet the essential needs of the workforce and laborers, contributing to the rapid and sustainable socio-economic development of Nghe An province, leaving no one behind.

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Source: https://baonghean.vn/nha-o-cho-cong-nhan-buoc-di-chien-luoc-cho-cong-nghiep-hoa-ben-vung-10304193.html