National Housing Fund: Creating momentum for social housing development

The National Housing Fund is a model that has proven effective in Singapore and South Korea.

The Government has just issued Decree 302/2025/ND-CP detailing the National Housing Fund and the implementation of Resolution 201/2025/QH15 of the National Assembly on the specific mechanism for social housing development. In particular, the Central Housing Fund is established and is under the Ministry of Construction ; the Provincial People's Committee will establish and manage the Local Housing Fund.

Need to increase organizational and operational capacity

These funds operate as public service units, have legal status, their own seals, independent accounting and are allowed to open accounts at the State Treasury or commercial banks. The Provincial People's Committee has the right to establish new funds, reorganize or transfer existing funds but must ensure compliance with legal regulations.

The fund's core mission is to create and develop a social housing supply to serve people's rental needs. The fund has the right to invest in building social housing projects with synchronous technical and social infrastructure; receive and convert the function of public housing assets for rental.

Ly Thuong Kiet social housing project (Dien Hong ward, Ho Chi Minh City) with 1,254 apartments is about to be completed. Photo: QUOC ANH

In addition, the fund is allowed to purchase social housing from investors; order, receive or transfer housing from 100% state-owned enterprises; receive resettlement housing or housing voluntarily contributed by organizations and individuals. The fund can also purchase commercial housing for rent to serve officials, civil servants, public employees and workers.

At the same time, the fund is responsible for organizing the management and operation of the entire housing fund invested or received, ensuring that leasing activities take place according to the correct mechanism, to the correct subjects and for the right social security goals.

Dr. Huynh Phuoc Nghia, lecturer at Ho Chi Minh City University of Economics (UEH), assessed that the regulations on the operating mechanism, authority and organizational model of the National Housing Fund in Decree 302/2025/ND-CP are relatively complete and clear.

However, Dr. Nghia emphasized that the decisive factor lies in organizational and operational capacity. The National Housing Fund is a public service unit operating under a financial autonomy mechanism, so the quality of human resources, the ability to develop strategies, operate projects and coordinate inter-sectoral cooperation will determine the level of success. "Having a good mechanism is not enough, the important thing is that the implementation team must have enough capacity to operate smoothly" - he emphasized. According to him, if the National Housing Fund is given appropriate recruitment rights, it will have the conditions to attract a team of good experts, thereby operating the model more effectively, transparently and sustainably.

According to Dr. Nghia, the housing development fund model is not new and is quite similar to models that have operated effectively in Singapore or South Korea. In Singapore, housing development agencies operate autonomously, have easy access to land funds, and create 50%-60% of the total housing supply in the market. Vietnam currently also allows the National Housing Fund to use State land funds according to planning, cooperate with the private sector, and borrow capital from commercial banks, a mechanism that is considered "more open" than many European countries that depend mainly on private resources. "If implemented in the right direction, the fund can create a huge impact. The target market ranges from social housing, worker accommodation to special types of housing such as public housing or houses for people in natural disaster areas. The fund can completely invest in temporary housing, resettlement or support households in landslide areas according to the coordination mechanism with localities" - Dr. Nghia analyzed.

Focus on developing rental projects

Ms. Cao Thi Thanh Huong, Senior Manager of Research Department at Savills Vietnam, emphasized that the National Housing Fund is a model that has proven effective in Singapore and Korea, where people can borrow at low interest rates and for long periods, while participating businesses enjoy investment incentives and access to planned land funds. This model creates two-way benefits. Accordingly, buyers receive reasonable financial support, while businesses are motivated to participate in developing affordable housing. When both sides benefit, the market will move towards a more balanced and sustainable state.

From the business perspective, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), expects the establishment of the National Housing Fund to create more diverse and flexible capital mobilization channels for social housing development. Investors will have more stable financial resources to develop projects, and people with real needs will have access to housing at reasonable prices. Thereby promoting the goal of developing at least 1 million social housing units set by the Government .

According to the Chairman of HoREA, in addition to the capital mechanism, the National Housing Fund also creates a land fund for investors to implement social housing projects. This mechanism helps enterprises access clean land more conveniently, low-cost capital and shorten project implementation time. At the same time, enterprises participating in social housing development can also cooperate with the fund to prepare land funds and long-term resources.

According to Dr. Pham Viet Thuan, Director of the Institute of Natural Resources and Environment Economics of Ho Chi Minh City, the urbanization process in recent years has shown that the group of ordinary laborers, low-income people, workers in industrial zones... always face disadvantages when accessing suitable housing. Therefore, he believes that the establishment of a National Housing Fund, operating under the build - own - rent model, will be more suitable and bring sustainable efficiency.

The Fund can proactively create land funds, invest in infrastructure, and build social housing for rent in densely populated areas or near industrial parks - where the demand is really large and urgent. "We have witnessed many cases of people buying social housing but traveling by luxury cars or speculating by proxy. If we focus on the rental model, these situations will be significantly reduced," he said.

He emphasized that for many years, low-income workers, civil servants, and poor laborers have had the same wish: a stable place to live at a reasonable price. A social housing project with rental prices lower than rented rooms, better quality, and professionally managed will help hundreds of thousands of families have the opportunity to improve their quality of life and reduce the pressure of making a living in urban areas.

However, it is necessary to clarify and specify more specifically the subjects eligible for renting. If the conditions are tightened too much, social housing will deviate from its original goal of solving the basic housing needs of workers.

Real estate price regulation tool

Dr. Pham Viet Thuan hopes that the National Housing Fund will be given sufficient authority and resources, from preferential loans, clean land funds to policies on land use fee exemptions and reductions, and investment procedures. At that time, the fund will not only support the disadvantaged but also help the real estate market reduce the pressure of price fluctuations.

"In the context of increasing housing prices, escalating material and financial costs, the Prime Minister's decision to establish a National Housing Fund to invest in social housing projects for rent and workers' housing is a very encouraging signal. This will be an important regulatory tool to help curb the increase in real estate prices and stabilize the market," Dr. Thuan commented.

Source: https://nld.com.vn/quy-nha-o-thanh-bai-o-thuc-thi-196251124211636863.htm