To cope with the situation, the Ministry of Construction (MoC) has proposed that the Government put mechanisms in place to encourage investment in housing for low income people.

The MoC has asked the Government to authorize it to work with the Ministry of Finance and other relevant ministries to establish a development fund for social and low price houses and create financial sources for investors and low-income people to borrow preferential loans to build and upgrade houses.

In addition, the State encouraged all economic sectors to invest in building small-and medium- sized flats which will be sold under hire-purchase agreement and to give preferential policies to those who invest in building the public housing scheme. Those benefiting from such scheme include State employees, officers, professional soldiers and some low-income people according to the Government’s decree No90.

Those who hire flats will have to pay a monthly rent regulated by the State while those who buy houses under hire-purchase agreement must pay 20 percent of the house value in advance and the remaining will be paid in the next 15-20 years.