Happy signals
Immediately after the Prime Minister signed Decision No. 444/QD-TTg dated February 27, 2025 assigning the target of completing social housing (NOXH) in 2025 and the following years until 2030, a series of localities quickly implemented projects, creating excitement for the social housing market.
In Hanoi, Vice Chairman of Hanoi People's Committee Duong Duc Tuan has just concluded the implementation of the construction of 5 concentrated social housing areas in the city including Tien Duong 1 and Tien Duong 2, Dai Mach project (Dong Anh district), project in Tien Phong commune (Me Linh district), project in Co Bi commune (Gia Lam district). Hanoi requests the Department of Construction, the Department of Finance, the People's Committees of districts and related units to focus on speeding up the investment progress, implementing "green-flow" procedures, and shortening processing time for work procedures so that projects can start construction in September 2025.
In Hue, on March 26, the social housing project in Thuy Van complex (An Van Duong) with a total investment of 320 billion VND has just started construction.
In Thanh Hoa, the Department of Construction of this province has just announced information related to receiving documents for buying and renting social housing in the first phase at the social housing plot of Project No. 1 of the Thanh Hoa City Central Urban Area (commercial name is Vinhomes Star City). This social housing area consists of 2 buildings with 9 floors above ground and 1 basement with 280 apartments. The selling price of an apartment here ranges from 937 million VND to 1.47 billion VND. The lowest rental price is 3.6 million VND/month and the highest is more than 5.8 million VND/month.
Difficulties
With the very positive movements of the social housing market, the issue of concern at present is the mechanism to support those who are financially eligible to buy a house. One of the important solutions that the Ministry of Construction is drafting is to establish a National Housing Fund.
According to the Ministry of Construction, regarding the financial support of buying social housing, currently, there are 42 operating funds across the country, including 40 development investment funds, 1 100% state -owned company (Housing Development Fund in Ho Chi Minh City - HFIC), 1 Land Development Fund for Development Investment Fund Management (Quang Binh). In particular, the Housing Development Fund of Ho Chi Minh City (operating since 2005) has been disbursed for more than 5,500 low -income people with an amount of about VND 2,800 billion and 4 funds with direct investment activities of socialist social investment: Lao Cai, Thai Binh, Ha Tinh, Dak Lak with a total investment of VND 743 billion and supplying 1,345 apartment buildings ... Preferential for long -term and sustainable social housing development.
For example, the Ho Chi Minh City Housing Development Fund, at the end of 2024, will propose a policy for cadres, civil servants, and public employees who borrow to buy houses, and Ho Chi Minh City will reduce interest rates from 4.7% to 3.2%/year, calculated according to the gradual reduction of outstanding loans. In addition to this program, other cases such as people with revolutionary contributions, people working in the state sector, poor households, near-poor households, workers working in industrial parks... are eligible for preferential loans to buy social housing under the general policy with an interest rate of 4.8-5% per year, a loan limit of up to 80% of the apartment value and a loan term of up to 25 years.
However, according to the assessment, although the interest rate is attractive 1.5-2% lower than the current average interest rate), it comes with a number of conditions, including the fact that the capital disbursed for each dossier does not exceed 1 billion VND, making implementation still difficult.
The Ministry of Construction raised the need to establish a "National Social Housing Development Fund" from the State Budget and other legal capital to solve the above problems and have sustainable, long-term capital for social housing development.
Model for the National Housing Fund
The 2023 Housing Law (effective from August 1, 2024) stipulates the financial resources for housing development in Articles 112, 113. However, according to Mr. Le Hoang Chau - Chairman of HoREA, the law has not yet clarified the mechanism, organization of management and operation of capital sources for developing affordable housing, causing the market to continue to depend heavily on credit, posing potential risks to both banks and businesses.
The Housing Development Fund model is currently applied in many countries around the world. Typically, Singapore with the Housing Development Agency (HDB), has helped more than 80% of the population own good quality housing, Korea and China with the Housing Savings Fund have provided millions of low-cost rental apartments and provided credit support to people.
In Singapore, the Housing Development Fund operates according to the model of "investor and manager of public housing", combined with the Government's financial funding and support policies.
In the draft resolution and regulations on establishing the National Social Housing Development Fund, the Ministry of Construction proposes: The National Social Housing Development Fund is an non -state budget fund established by the Government from the state budget granted and other legal capital; The National Social Housing Development Fund is directly invested to create social housing funds and social housing funds; Lending interest rate support does not require mortgage; support enterprises to invest in building social housing, subjects to enjoy social housing policies according to conditions, contents and support levels prescribed by competent agencies; The Government details the establishment, management and use of the National Social Hone Development Fund.
This proposal of the Ministry of Construction is similar to the Singapore Housing Fund model. Here, the State's role is especially important in supplementing capital sources and creating loan mechanisms ( Conditions, subjects, interest rates). One requirement is that the National Housing Fund must be breakthrough, different and superior to current Funds and credit packages currently applied in Vietnam, including superior interest rates for buyers and real estate businesses that need loans.
In an interview with Lao Dong, Associate Professor, Dr. Ngoi Long said: In the context of Vietnam setting a goal of building at least 1 million social housing units by 2030, the establishment and development of a National Housing Fund is not only a temporary solution, but also a long-term strategy to ensure social security, improve the quality of life, and stabilize the real estate market.
This is the time for the State to make breakthrough decisions, build a strong financial fund, mobilize domestic and foreign resources, and at the same time establish an effective public-private coordination mechanism. The National Housing Fund will be one of the solid pillars for the country's sustainable, fair and humane development strategy". LINH ANH
