Student housing needs bond financing

Student housing needs bond financing

VietNamNet Bridge – Student housing projects this year will require financing from Government bond issues estimated at VND2.5 trillion (US$119 million), according to the Ministry of Construction.

An overcrowded student dormitory at Ha Noi University of Science and Technology. During 2011-15, 4.8 million sq.m of housing to accommodate students will be developed at a total cost of about $1.4 billion. (Photo: VNS)

Prime Minister Nguyen Tan Dung previously approved a decision listing 94 student housing projects nationwide. Another 18 new projects, with allocated land approved by local authorities, were likely to be added to the list, requiring VND400 billion ($19 million) in bond financing, including three projects involving training for special human resources responsible for security and policy and strategy implementation for islands in the East Sea.

Two of these are being implemented by the Ministry of Defence, while the third is under the auspices of Viet Nam Maritime University in Hai Phong.

Twelve of the remaining new projects belong to such sectors as health and vocational training in border and remote areas in which many ethnic minority students lack accommodation. Three other projects are housing developments for vocational students in Ha Tinh, Vinh Phuc, Hung Yen provinces.

The Ministry of Construction will allocate funds for priority projects which can progress quickly and be completed this year. VND218 billion ($10 million) in bond proceeds from 2010 remain undisbursed in six localities, a situation the ministry seeks to avoid going forward.

According to statistics on the Government website, Viet Nam will have an estimated 4.3 million students by 2015, 70 per cent of them needing accommodation. Current student housing projects underway can only meet the demand of about 1 million students. Therefore, another 4.8 million sq.m of housing will be developed during 2011-15, at a total cost of about VND30 trillion ($1.4 billion).

VietNamNet/Viet Nam News