New mechanism to remove obstacles related to old apartment buildings.

Earlier this year, the Ho Chi Minh City People's Committee approved a project to renovate and rebuild old, dilapidated apartment buildings in the city, aiming to basically complete the preparatory work for renovating and rebuilding apartment buildings built before 1975 by 2030.

Recently, the city has continued to issue incentive mechanisms, hoping to remove obstacles and attract more investors.

The Vinh Hoi apartment building in Khanh Hoi ward (Ho Chi Minh City) has been severely dilapidated for many years. Photo: THANH HIEN

Slow relocation, living in insecurity.

As one of 474 apartment buildings constructed before 1975, the Pham The Hien apartment building in Chanh Hung ward has been severely dilapidated for many years and no longer meets safety standards.

According to observations by reporters from SGGP newspaper, many items have been severely damaged, especially the staircase where the iron bars have come loose, some are cracked, the supporting columns are in places with only the iron frames remaining, and sections of the walls are peeling off.

Ms. Nguyen Kim Lan, a resident of Block C, Pham The Hien apartment building, shared: “For many years, residents here have lived in constant fear of concrete falling on their heads. Now, during the rainy season, we suffer even more, partly because we fear strong winds causing the building to collapse, and partly because rainwater seeps through the ceilings, flooding the corridors and into our apartments. Despite the hardship, we cannot move elsewhere because the local authorities have not yet provided a concrete compensation plan.”

Regarding the deterioration of the Pham The Hien apartment building, Mr. Pham Quang Tu, Chairman of the Chanh Hung Ward People's Committee, said that the building consists of 3 blocks with 448 apartments and has exceeded its lifespan. The Ward People's Committee has informed residents about the building's deterioration and has also repaired some damaged areas.

“The relocation of 448 apartments in the Pham The Hien apartment building is part of the compensation, resettlement support, and urban renovation project in the South Bank of the Doi Canal area, which will be implemented in the period 2027-2032. The People's Committee of Chanh Hung Ward is coordinating with relevant units to develop a plan for the project. After the project is approved, the People's Committee of the ward will take the lead in coordinating with relevant agencies to prioritize the compensation and resettlement support for the relocation of these 448 apartments. The payment and relocation of households will be completed in November 2026,” Mr. Pham Quang Tu informed.

The Vinh Hoi apartment building in Khanh Hoi ward was also built before 1975, with 4 floors and 244 apartments, and received a Class D assessment in 2017. Since the end of 2019, District 4 (formerly District 4) had planned to relocate residents from the building, but the relocation has not yet been completed.

The apartment building is now in a state of severe disrepair, with chunks of concrete peeling off in some areas and falling onto the corrugated iron roofs of the ground floor. Warning signs have been posted in areas with weak structures. Mr. NVH, who lives on the ground floor of block C, lamented: "Here, chunks of wall and concrete are constantly falling onto the street and roofs, causing many residents to lose sleep and fear the building will collapse."

According to a representative of the Khanh Hoi Ward People's Committee, the ward is relocating residents to new temporary housing to ensure safety and is inviting investors to undertake the renovation and reconstruction project of the Vinh Hoi apartment building. However, some residents have not yet accepted the temporary housing option.

Mr. Vu Anh Dung, Deputy Head of the Urban Development Department, Ho Chi Minh City Department of Construction, said that Resolution No. 17/2025/NQ-HĐND stipulates preferential mechanisms and support for investors participating in projects to renovate and rebuild apartment buildings in the city.

Accordingly, for renovation and reconstruction projects of old apartment buildings that are approved by competent state agencies after August 4, 2025, the investors will be entitled to this preferential policy.

“Resolution 17/2025 is an additional support policy aimed at attracting more investors to participate in the renovation of old apartment buildings. Furthermore, under the direction of the Ho Chi Minh City People's Committee, most old apartment building renovation projects have now had their legal obstacles removed, allowing investors to proceed with their projects,” Mr. Vu Anh Dung shared.

More incentives for investors

According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, the 2023 Housing Law has provided fundamental solutions to address the renovation of old apartment buildings. The temporary housing mechanism during the renovation of old apartment buildings is also standardized in both the Land Law and the Housing Law, facilitating the demolition and reconstruction of these buildings.

However, there are still obstacles regarding regulations and administrative procedures. While compensation, land clearance, and project construction costs are substantial, lengthy procedures discourage investors from participating in old apartment building renovation projects.

Broken concrete pillars exposing rebar at Block C of Vinh Hoi apartment complex. Photo: HOANG HUNG

To address these issues, Mr. Le Hoang Chau hopes that Ho Chi Minh City will consider adjusting the planning for apartment building renovation and construction projects. Specifically, this includes increasing the land use coefficient, raising the maximum height, increasing the population size, and redefining a reasonable building density. In addition, increasing the number of apartments in a project is also a solution to attract more investors.

“Ho Chi Minh City is implementing Resolution 17/2025 on preferential mechanisms and support for investors participating in the renovation and reconstruction of old apartment buildings. The new mechanism will remove one of the biggest bottlenecks, which is investment capital, and hopefully will attract more investors,” Mr. Le Hoang Chau expected.

Recently, at a meeting on the implementation of the renovation and reconstruction of old apartment buildings, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong assigned the Department of Construction to take the lead and coordinate with relevant agencies and units to review legal regulations on the renovation and reconstruction of old apartment buildings; and to advise on adjustments and additions to the implementation plan of the project.

Simultaneously, the Department of Construction is requested to compile a list of apartment buildings requiring inspection and submit it to the Ho Chi Minh City People's Committee for consideration and decision; to urgently send a document to the People's Committees of wards, communes, and special zones providing unified guidance on the preparation of cost estimates for apartment building inspections; and to preside over and coordinate with relevant departments and the People's Committees of wards, communes, and special zones to review and prioritize the repair of apartment buildings, ensuring the safety of people's lives and property.

Thanh Hien

Source: https://www.sggp.org.vn/co-che-moi-thao-vuong-mac-ve-chung-cu-cu-post816525.html