“Affordable Housing: An Unaffordable Dream for Low-Income Earners”

The Ministry of Construction received a proposal from Ho Chi Minh City voters submitted to the National Assembly before the 7th session of the 15th National Assembly. The proposal concerns adjusting the price of social housing or providing support packages for low-income earners to purchase social housing, as currently, social housing is sold at very high prices, making it difficult for low-income earners to afford.

Regarding this issue, the Ministry of Construction stated that on November 27, 2023, at the 6th session of the 15th National Assembly, the Housing Law was passed and took effect from August 1, 2024.

On July 26, 2024, the Government issued Decree No. 100 detailing a number of articles of the Housing Law on the development and management of social housing (effective from August 1, 2024).

Accordingly, the 2023 Housing Law and Decree No. 100 of 2024 have stipulated new policies on social housing to encourage and promote investment, development, and reduce sale prices, purchase prices, and rental prices of social housing so that low-income people and workers can afford to buy, rent-to-own, or rent to stabilize their lives.

Specifically, it involves selecting investors for social housing projects, providing incentives to investors of social housing construction projects for sale, rent-to-own, or rent; and simplifying the conditions for purchasing, rent-to-own, or renting social housing.

The law also stipulates a maximum profit rate of 10% of the total investment cost for the area of social housing construction to ensure that the sale and rent-to-own prices are suitable for low-income people and workers. Regarding rental prices for social housing, the law allows the landlord and tenant to agree on a price within a framework set by the provincial People’s Committee.

In addition, to ensure the accommodation needs of workers in industrial parks, the 2023 Housing Law has supplemented regulations related to worker dormitories in industrial parks. Accordingly, worker dormitories in industrial parks must ensure synchronous technical and social infrastructure, sufficient functional areas, and spaces to serve accommodation needs, including healthcare, cultural activities, playgrounds, sports, services, commerce, and public utilities (Point c, Clause 2, Article 95).

In addition to enjoying social housing support policies, workers will be considered to rent worker dormitories in industrial parks at prices agreed upon within a framework set by the provincial People’s Committee.