Ho Chi Minh City proposes incentive mechanisms to remove bottlenecks in renovating old apartment buildings.

The Ho Chi Minh City People's Committee has just submitted to the City People's Council a preferential mechanism with a series of financial support policies for investors in old apartment building renovation projects, including a 50% subsidy for technical infrastructure costs and relocation costs.

At the second session of the 10th term of the Ho Chi Minh City People's Council (2021-2026) on the morning of July 24th, the Ho Chi Minh City People's Committee submitted to the City People's Council a proposal outlining regulations on preferential mechanisms and support for investors participating in projects to renovate and rebuild apartment buildings in the city.

According to the Ho Chi Minh City People's Committee, since 1999, Ho Chi Minh City has had a policy of repairing and rebuilding severely dilapidated apartment buildings and collective housing. Subsequently, based on Government Resolution No. 34/2007/NQ-CP, from 2008, Ho Chi Minh City implemented a plan to renovate and rebuild old apartment buildings.

Leaders of Ho Chi Minh City and delegates of the Ho Chi Minh City People's Council attend the session. Photo: VIET DUNG

For many years, Ho Chi Minh City has directed its departments and localities to make efforts to accelerate the renovation and reconstruction of dilapidated apartment buildings to replace them, ensuring the safety of residents while serving the goal of urban beautification. In particular, since 2015, this has been included in the Resolution of the 10th Congress of the Ho Chi Minh City Party Committee (2015-2020 term), with the goal of "by 2020 completing the demolition and reconstruction of at least 50% of the 474 old apartment buildings built before 1975".

However, the implementation progress is slow and has not met the set requirements. Therefore, based on the Housing Law of 2023, Government Decree No. 95/2024/ND-CP and Decree No. 98/2024/ND-CP, the Ho Chi Minh City People's Committee believes that a resolution on preferential mechanisms and support should be issued soon to encourage investors to participate in apartment building renovation and reconstruction projects.

According to the submitted document, the Ho Chi Minh City People's Committee proposes the following specific support policies:

Support will cover 50% of the investment cost for technical infrastructure within the project area, but not exceeding VND 10 billion per project. This support includes the following technical infrastructure: transportation systems connecting the project, electricity supply and public lighting systems, communication systems, water supply and drainage, wastewater treatment, solid waste management, and public sanitation systems. This does not apply to technical infrastructure located within the apartment building itself.

At the same time, 50% of the relocation costs will be subsidized for residents who are forcibly relocated according to decisions of competent authorities, in order to reduce the initial cost burden for investors.

The eligible entities include: Investors (businesses and organizations selected as investors for apartment building renovation and reconstruction projects as stipulated in point d, clause 1, Article 63, point b, clause 6, Article 73, and point b, clause 4, Article 74 of the Housing Law); the projects eligible for support are apartment building renovation and reconstruction projects falling under clauses 1 and 2, Article 3 of Government Decree No. 98/2025/ND-CP.

The support policy will be disbursed after the investor completes the acceptance of the infrastructure project or provides support for relocation costs once an approved relocation plan is in place. Projects eligible for this incentive are those approved for investment after the resolution comes into effect.

Preferential funding will be allocated from Ho Chi Minh City's recurrent expenditure budget, through budget estimates managed and verified by the Department of Construction regarding the value of the supported construction items.

The Ho Chi Minh City People's Committee stated that the resolution's objective is to ensure its constitutionality, legality, and consistency with the legal system, while also creating a special mechanism to accelerate the renovation and reconstruction of old apartment buildings, contributing to urban beautification and improving the quality of life for residents.

CAM NUONG - THU HUONG - NGO BINH

Source: https://www.sggp.org.vn/tphcm-de-xuat-co-che-uu-dai-go-nut-that-cai-tao-chung-cu-cu-post805170.html