Removing barriers, developing social housing from new resources and policies
(Chinhphu.vn) - With the goal of building 1 million social housing units by 2030, a series of specific policies are being proposed and developed. However, bottlenecks in procedures, land availability, and capital are still slowing down implementation, requiring a comprehensive solution to overcome them.
Báo Chính Phủ•27/05/2025
Seminar "Investing in Social Housing Development: New Context, New Opportunities" - Photo: VGP/HT
Identifyingthebottlenecks in social housing.
In January 2023, the Prime Minister approved a plan to build at least 1 million social housing units for low-income earners and industrial zone workers during the 2021-2030 period. However, after more than three years, according to the Ministry of Construction , only 657 projects have been implemented, and the number of completed units has only reached 15.6% of the target by 2025.
At the seminar "Investing in Social Housing Development: New Context, New Opportunities" organized by Investor Magazine on the afternoon of May 27th, Ms. Tong Thi Hanh – Director of the Department of Housing and Real Estate Market Management, Ministry of Construction – pointed out several reasons. Firstly, implementation remains inadequate, and businesses face more difficulties when investing in social housing compared to commercial housing. Secondly, investment procedures are lengthy, preferential policies are difficult to access, and the rental housing supply is underdeveloped.
Furthermore, the habit of owning private homes among the population is also a major obstacle to the development of rental housing. Ms. Hanh emphasized that to ensure people feel secure and committed to renting an apartment long-term, the State needs to create a groundbreaking, long-term policy system. Therefore, in the draft of the new National Assembly Resolution, a notable proposal is the establishment of a National Housing Fund with the aim of investing in rental projects to support those who cannot afford to buy a home.
Furthermore, the proposed funding for the Fund includes state budget, resources from businesses, individuals, and related organizations. This will be the foundation of long-term social security policy – a new mechanism that Ms. Hanh believes will give a boost to social housing.
Ms. Tong Thi Hanh – Director of the Department of Housing and Real Estate Market Management, Ministry of Construction - Photo: VGP/HT
We need substantive planning, transparent mechanisms, and specialized funding.
Drawing on market realities, Dr. Nguyen Van Khoi – Chairman of the Vietnam Real Estate Association – noted that many localities have not included social housing targets in their annual socio -economic development plans, causing delays in progress.
Mr. Khoi proposed that localities must clearly identify the actual housing needs, in accordance with the income of the population; at the same time, they must create a plan for clean land funds that are convenient in terms of transportation and social infrastructure.
Furthermore, Mr. Khoi emphasized the need to supplement mechanisms allowing the conversion of commercial housing and resettlement housing projects into social housing to increase supply. Although the 2023 Housing Law already includes preferential provisions for investors, the regulations are still overlapping and lack specific guidance, causing confusion in many localities. The requirement for investors to allocate 20% of land for social housing construction without accompanying substantial support is also reducing investment attractiveness.
Therefore, Mr. Khoi suggested that Vietnam should maintain the direction of the Social Housing Fund as in the draft, including support for building rental housing, affordable housing for sale, and support for both businesses and buyers. The proposed capital structure includes 30-35% from the budget, 40% from beneficiaries and businesses, and the remainder from sources such as revenue from land equivalents or the sale of public assets.
Sharing the same view, Dr. Can Van Luc – Chief Economist of BIDV – commented that Vietnam does not yet have a dedicated National Housing Fund like developed countries. Dr. Luc analyzed that international fund models typically share five common points: the government plays a facilitating role; the fund provides financial support to both the supply and demand sides; capital comes from the state budget and beneficiaries; support is provided for both social housing and affordable housing; and there is an independent operating agency.
More importantly, Dr. Can Van Luc suggested that the Fund should operate on a "revenue-expenditure" model, ensuring cost recovery and sustainability, rather than being profit-driven. The forms of support should be diverse, ranging from loans and guarantees to interest rate subsidies and investments in land clearance, prioritizing practical funds that can be implemented immediately.
From a business perspective, Mr. Vu Quoc Huy – Deputy General Director of Taseco Land – believes that simplifying procedures and quickly issuing ownership certificates will help low-income earners access social housing more easily. He hopes that the new Resolution will truly remove administrative obstacles and create the most favorable conditions for the people.
Meanwhile, some other experts emphasize the need to reduce financial requirements for buyers. For example, loan interest rates should be fixed for the entire loan term or only 50–60% of the market rate; loan terms should be extended to reduce financial pressure on individuals and businesses.
In particular, when implemented through commercial banks, there needs to be a clear and transparent interest rate subsidy policy, settled over short periods, to create incentives for implementation. Simultaneously, the State needs to issue effective inspection and supervision mechanisms to ensure the Fund is not misused.
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