Assess the needs accurately and provide appropriate levels of support.
The State Bank of Vietnam, along with other ministries and agencies, is coordinating to review and assess the demand for social housing according to three main groups: demand for purchase, lease-purchase, and rental. Identifying specific needs helps the State balance resources and avoid spreading resources too thinly.
In addition, according to Ms. Nguyen Thi Hong, it is necessary to clearly define the level of support that can be provided. The Government and the Prime Minister have directed the vigorous provision of financial support through preferential interest rate policies. However, careful calculations must be made to ensure that priority is given to the right beneficiaries.
"People with low incomes often only have the ability to rent a house, instead of buying or lease-purchasing, so policies need to focus on this segment. Interest rate support policies need to be designed flexibly, suitable to their ability to repay and for long-term loans," Ms. Nguyen Thi Hong explained.
The issue of social housing supply has always been a concern for the leaders of the State Bank of Vietnam as well as many financial and real estate experts. "If we only discuss the target group or the right to buy and sell, without addressing the supply issue, the Resolution (the new Resolution on breakthroughs in social housing development) will lack focus. It is necessary to clearly define the goal as developing the supply of social housing," the Governor of the State Bank of Vietnam stated.
Construction procedures need to be shortened as much as possible.
In reality, many projects take 10-15 years to complete the procedures. This results in businesses incurring prolonged interest costs, reducing investment efficiency. Banks that raise capital from the public still have to pay interest periodically and cannot simply "wait" for the projects to be completed.
Therefore, according to the State Bank of Vietnam's leadership, if the procedures are shortened to 2-3 years, bank capital will circulate faster, helping more eligible projects access credit.
In the draft of the new Resolution, key solutions have been clearly outlined, such as: allocating land funds, approving and publicly disclosing the list of projects, approving investment policies, and accelerating administrative procedure reforms. Another obstacle, according to Governor Nguyen Thi Hong, is verifying the eligibility of borrowers for purchasing or renting social housing. Banks require clear verification documents for lending, while local verification agencies lack uniformity. Therefore, the State Bank of Vietnam recommends improving the verification process to avoid overlaps and prolonged approval times.
Specifically, the new Resolution directs the State Bank of Vietnam (SBV) to instruct commercial banks to participate in the 120,000 billion VND credit package (currently increased to 145,000 billion VND). “This capital is mobilized from the people, and the preferential interest rates in the initial period are also balanced by the banks themselves. In addition, a specific list of projects from localities is needed for banks to disburse funds quickly, because many businesses are still facing land allocation procedures,” Governor Nguyen Thi Hong stated.
Furthermore, experts also suggest diversifying sources of socialized capital. Accordingly, enterprises developing non-profit projects can completely raise capital through the stock market. However, due to the long-term nature of the projects and the target beneficiaries being low-income individuals, individual investors are less interested in buying corporate bonds in this sector.
Therefore, according to the State Bank of Vietnam's leadership, Vietnam could consider a mechanism for guaranteeing bond issuance by the State or local authorities. If the locality clearly sees the social benefits of the project, it could guarantee the bond issuance for the enterprise, thereby building confidence among buyers and helping the enterprise raise medium- and long-term capital, without being entirely dependent on bank credit.
Earlier, at a meeting discussing breakthrough development in social housing chaired by Prime Minister Pham Minh Chinh, Head of the Central Steering Committee on Housing Policy and Real Estate Market, Mr. Dau Minh Thanh, Chairman of the Board of Members of the Housing and Urban Development Investment Corporation (HUD), affirmed: "We are ready to implement the three 'assignments': the Government and the Ministry of Construction assign tasks, the localities assign locations, and the enterprises assign housing."
According to Mr. Dau Minh Thanh, HUD is currently implementing 9 social housing projects with more than 6,600 units. In 2025, HUD started construction on 5 projects with 1,300 apartments, mainly concentrated in Hanoi and Ho Chi Minh City. It is expected that by 2030, based on the development of land in commercial projects, HUD plans to develop 1 million social housing units, equivalent to approximately more than 9,000 apartments.
“We also suggest that Hanoi and Ho Chi Minh City pay close attention to directing and expediting the process and procedures to help investors quickly implement projects. In addition, HUD also requests that ministries, sectors, and localities implement solutions to help people easily access information and shorten the process and procedures for purchasing social housing so that it can reach the people sooner,” Mr. Dau Minh Thanh suggested.
At a recent conference with ministries, localities, and businesses on breakthrough solutions for social housing development, Prime Minister Pham Minh Chinh directed that the most favorable conditions should be created to ensure that social housing projects are completed within 2-3 years.
The Prime Minister emphasized the need to cut administrative procedures by at least 50%, placing social housing projects in the "green lane" or "priority lane" to expedite procedures; creating clean land for social housing development through flexible methods; and diversifying funding sources for social housing development, including credit, state capital through the Social Policy Bank, the Housing Development Fund, and bond issuance.
The Prime Minister requested that localities establish regulations and take responsibility for quickly, efficiently, and accurately resolving administrative procedures for social housing development, following the principle of "local authorities decide, local authorities act, local authorities are responsible"; ensuring the legitimate rights of citizens and businesses, while also upholding the rule of law.
Prime Minister Pham Minh Chinh noted that policies and their implementation regarding social housing must be as convenient as possible for social housing buyers, ensuring transparency, promoting digitalization, and preventing buyers from having to "crowd and scramble" to purchase a home, which could easily lead to corruption and policy distortion.
At the same time, the Prime Minister requested that credit sources for real estate in general and social housing in particular be diversified, and that a Social Housing Fund should be established instead of relying solely on bank credit.
Source: https://baotintuc.vn/kinh-te/co-nhung-nguoi-thu-nhap-thap-chi-co-kha-nang-thue-nha-o-xa-hoi-20251025145302394.htm
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