National housing development fund to begin with $190 million

THE HANOI TIMES — The Ministry of Construction has proposed establishing a National Housing Development Fund with an initial minimum charter capital of VND5 trillion (US$190 million).

According to the ministry's draft decree, the fund's capital could increase to VND10 trillion (US$380 million) within three years. The entity will be fully funded and managed by the central and provincial governments.

It may also receive financial contributions from organizations and individuals, both domestic and foreign, as well as from other legally mobilized sources.

Additional capital may come from the sale of public housing managed by central agencies or from the fund’s own activities and assets.

Local authorities may contribute to the fund by allocating revenue equivalent to the value of land invested in infrastructure for social housing development.

Other sources may include proceeds from selling public housing or auctioning land use rights. Provincial-level People’s Committees will determine how much of these revenues to allocate to the fund.

The National Housing Development Fund is designed to support the construction and renovation of social housing projects intended for sale or lease.

Government officials, public employees, and other state-contracted workers may seek support from the fund to rent commercial housing.

Independent social housing projects financed by the fund must be completed within five to seven years.

The target tenants for the fund’s housing are low-income individuals who meet the legal eligibility criteria, as well as government officials, civil servants, public employees, and homeless individuals or those facing housing difficulties.

The fund may also use revenues from commercial and service areas within its projects to cover maintenance and housing management expenses for social housing developments.