Risk factors affecting financial efficiency when investing in apartment projects for lowincome people

Abstract

Apartment for low-income people is an issue that is being discussed a lot in Vietnam recently. How to get more affordable social housing has been mentioned. However, no effective solution has been found yet. From a financial risk perspective, This paper has identified the risk factors affecting financial performance when investing in high-rise apartment projects for low-income people. The results of the risk analysis show that all factors have a level of risk from normal to high. In which, the study pointed out thirteen factors with a high level of risk, including: Construction costs increased compared to the total estimate; Fluctuations in material and labor costs; Project completion time is long; Budget costs are exceeded; Weak cost control mechanisms; Contractor's construction capacity is weak; The cost of compensation for site clearance increased; Accuracy of the estimate; Poor quality materials/equipment; Communication delays due to lack of coordination among project stakeholders; Issues related to occupational safety and health; Financial issues related to environmental protection and land appraisal; Environmental pollution (air, noise, groundwater) at the project site.

Key words: Level of impact; possibility; risk level; financial performance; low income people.