Vietnam to mobilize resources for social housing development

Deputy Prime Minister Tran Hong Ha urges policymakers to draft regulations for allocating state funds to develop social housing for the poor and policy beneficiaries, similar to the model used for official residences.

Overview of the meeting. Photo: Thu Cuc/VGP

Ha made the remarks during a government meeting on June 13 to discuss the draft decree on guidance for the implementation of the Law on Housing.

“The draft decree should also include provisions for establishing a social housing development fund sourced from the state capital and other legal sources,” he noted.

Currently, there are 503 social housing projects underway nationwide, an increase of four projects from two months ago. Of these, 75 projects have been completed, providing nearly 40,000 units—an increase of three projects and over 1,700 units from two months ago.

However, the Ministry of Construction points out that many localities are still experiencing low growth in the construction of social housing. Several provinces and cities, such as the major cities of Hanoi, Ho Chi Minh City, Danang and Cantho, and Long An Province, have low implementation rates compared to the target of 1 million social housing units by 2030. Experts suggest converting unused resettlement housing into social housing to avoid waste.

Furthermore, the current Housing Law allows investors to commission or purchase commercial and social housing for resettlement purposes. According to the deputy prime minister, the draft decree needs to clarify the responsibilities of the state and investors to ensure that local authorities do not commission projects without following through on purchases and that enterprises meet deadlines and quality requirements.

A social housing project in Gia Lam District, Hanoi. Photo: Cong Hung/The Hanoi Times

Hanoi pushes for more social housing projects

In a recent move, the Hanoi Department of Planning and Architecture has proposed the construction of nine new social housing areas in suburban districts, covering more than 660 hectares.

The two largest projects are located in Chuc Son Ecological Town and Tan Tien Commune (both in Chuong My District). The Chuc Son project spans 169 hectares and is expected to house approximately 13,500 people. The Tan Tien project covers around 127 hectares, with a projected population of 15,750.

This follows a meeting on May 30 in which Chairman of the Hanoi People's Committee Tran Sy Thanh requested that relevant departments commit to breaking ground on at least one social housing project by October 1, 2024.

"The primary goal is to build high-quality, affordable social housing. We aim to regulate profit margins in accordance with the law to ensure that even those with above-average incomes can afford homes," emphasized Thanh.

In its housing development program for 2021-2030, Hanoi aims to complete at least five social housing areas, equivalent to about 15,000 apartments. So far, four projects have been under review by the Department of Planning and Investment.

In 2024, Hanoi plans to develop seven new projects, equivalent to 10,000 homes. At least three social housing projects are expected to be delivered this year.

Additionally, the much-anticipated NHS Trung Van social housing project (Nam Tu Liem District) is scheduled for delivery in the first quarter of 2025. It is expected to be initially priced at VND19.5 million ($766) per square meter - the highest price for social housing in Hanoi so far but is still 30-50% lower than commercial housing projects.