Ministry of Construction proposes $400 million for social housing development

A newly released report from the Ministry of Construction (MoC) on May 17 highlighted recent progress in social housing development, the establishment of the national housing fund, and the expansion of the rental housing market.

According to the report, Vietnam has reached 72 per cent of its goal to build one million social housing units by 2030. Cumulatively, 781 social housing projects are currently underway nationwide, providing a total of 720,055 units.

Of these, 231 projects have been completed with a scale of 180,850 units, while another 234 projects are under construction to deliver 233,962 units.

Cumulatively, 781 social housing projects are currently underway nationwide, providing 720,055 units

Furthermore, 316 projects have received approval for their investment guidelines, which will add 305,243 units to the market.

To sustain this momentum, the proposed $400 million charter capital for the Central Housing Fund will be disbursed in two distinct phases. The first $200 million is scheduled for allocation this year, with the remaining $200 million planned for the 2029 to 2030 period.

At the regional level, 13 localities have successfully established their own local housing funds. These authorities are currently submitting reports to People’s Councils to request additional capital to fulfil their operational goals.

Meanwhile, 20 other localities are finalising procedures to assign their existing financial funds to take on the responsibilities of a local housing fund. In addition, Son La province is restructuring its public service units to facilitate this establishment.

Assessing the demand for rental housing, the MoC gathered reports from 23 out of 34 specific localities. Among them, 18 localities reported a projected need for 71,187 rental units between this year and 2030. Conversely, the provinces of Cao Bang, Ha Tinh, and Gia Lai reported of still having no demand for such housing.

Looking ahead, the MoC is concentrating on refining the amended draft Law on Housing and the amended draft Law on Real Estate Business, which will be submitted to the government and subsequently to the National Assembly for approval at its second session of the 16th tenure in October.

The goal is to legalise successful pilot policies, retain appropriate existing regulations, and remove practical obstacles that hinder market development.

The MoC is also urging localities to accelerate social housing development. It has instructed 21 localities that have not yet completed their fund establishment to quickly set up new entities or assign existing financial funds to the task.

Local authorities are encouraged to prioritise their budget capital to provide initial charter capital, in accordance with Decree No.302/2025/ND-CP, ensuring that the local housing funds have immediate resources to operate.

To ensure that social housing policies reach the correct beneficiaries, the MoC will finalise property identification on the housing and real estate market database system as mandated by Decree No.357/2025/ND-CP. This system guarantees accuracy, synchronisation, and a seamless connection from the central government down to the local level, making the screening process faster and more transparent.

The MoC is also coordinating with the Ministry of Public Security to strictly investigate and address illegal brokerage activities, fraudulent property appropriation, and the manipulation of profiles for buying or renting social housing.

This joint effort aims to enhance transparency and prevent negative practices in the sector, strictly following Directive No.34/CT-TTg issued by the prime minister. The directive, enacted last December, outlines key tasks and policy measures for ministries, local authorities, and relevant agencies to strengthen economic management, support growth, and address pressing socioeconomic challenges.

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