“Revolutionizing Social Housing Policies: A Strategic Guide to Implementation”

Proposed Decree to Expedite Social Housing Development in Vietnam

The Ministry of Construction is drafting a decree detailing several measures to implement the National Assembly’s Resolution 201/2025/QH15 on piloting mechanisms and policies for social housing development. The draft decree comprises five chapters and 19 articles and will be effective from July 1, 2025, to June 30, 2030.

This decree elaborates on the following contents: The National Housing Fund; assigning investors and approving investment policies simultaneously without bidding for social housing and accommodation projects for the armed forces not using public investment capital; construction permit procedures for cases requiring a building permit; applying standard designs and typical designs for social housing construction; and determining selling and rent-to-buy prices for social housing.

The draft decree has outlined streamlined administrative procedures, including the elimination of the investor selection bidding process and the approval of investment policies as stipulated in investment laws. This move is expected to reduce processing time by approximately 200 days, equivalent to 70% compared to current regulations.

The procedure for approving investment policies and assigning investors for social housing construction projects outlined in this decree replaces the procedures for approving investment policies and selecting investors according to investment laws and related legal documents. The decision to approve investment policies and assign investors serves as the basis for land allocation, land lease, and land use purpose conversion. The sequence, procedures, and authority for land allocation, land lease, and land-use purpose conversion shall adhere to land laws.

Additionally, the waiver of the mandatory open bidding process for construction contractor packages allows for the implementation of a simplified direct appointment procedure. This measure reduces the processing time by 45-105 days compared to current regulations.

Exempting construction permits for projects employing standard and typical designs further streamlines the process by 20-30 days.

Regarding the application of standard and typical designs for social housing construction (Article 15), the draft decree stipulates that the provincial People’s Committee Chair shall announce standard and typical designs for social housing projects. These designs must be evaluated by the provincial Department of Construction for compliance with social housing area standards, fire protection requirements, and relevant construction technical regulations and national standards. The application of standard and typical designs for social housing construction is based on the principle of voluntariness or reference in project formulation.

According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, two prominent policy groups stand out within the special mechanisms and policies for social housing. The first is the decision to establish the National Housing Development Fund for leasing, and the second is the exceptional and breakthrough procedures for investing in social housing development projects.

“As the Prime Minister has acknowledged, this will reduce the time for social housing procedures by about 350 days. This calculation is based on the time frames specified in the government’s regulations, but in reality, we expect a reduction of more than 1,000 days, or over three years, in processing time,” said Mr. Chau.

Mr. Chau emphasized the superiority of the mechanism for assigning investors and approving investment policies without bidding. He also applauded the exemption from construction permits for social housing projects utilizing standard and typical designs, describing it as “fantastic.”