Recently, the city has introduced new incentive mechanisms, aiming to overcome challenges and attract more investors.
Delayed Relocation, Living in Fear
Among the 474 apartment buildings constructed before 1975, the Pham The Hien apartment complex in Chanh Hung Ward has severely deteriorated over the years, posing significant safety risks.
According to SGGP Newspaper, numerous sections are heavily damaged, particularly the staircases with exposed iron, cracks, and support columns reduced to bare frames. Walls are peeling, and concrete chunks are falling.
Ms. Nguyen Kim Lan, a resident of Block C, shares, “For years, we’ve lived in constant fear of concrete falling on us. During the rainy season, it’s worse—we worry about strong winds causing collapse and rainwater leaking through the ceilings into our homes. Despite the hardship, we can’t leave as local authorities haven’t finalized compensation plans.”
Regarding Pham The Hien’s condition, Mr. Pham Quang Tu, Chairman of Chanh Hung Ward People’s Committee, stated that the complex’s 448 units have exceeded their lifespan. The ward has notified residents and repaired some damaged areas.
“Relocating the 448 units is part of the South Canal Bank Urban Renewal Project, scheduled for 2027–2032. Our ward is collaborating with relevant agencies to plan the project. Once approved, we’ll prioritize compensation and resettlement, completing relocation by November 2026,” Mr. Tu said.
Vinh Hoi Apartment in Khanh Hoi Ward, built before 1975 with 244 units across 4 floors, was rated D in 2017. Despite a 2019 relocation plan, progress remains stalled.
Concrete chunks litter the ground-floor roof, and weak areas are marked with warning signs. Mr. N.V.H., a ground-floor resident, laments, “Falling debris keeps us up at night, fearing collapse.”
Khanh Hoi Ward authorities are relocating residents to temporary housing and seeking investors for the Vinh Hoi renovation. However, some residents reject the temporary housing plan.
Mr. Vu Anh Dung, Deputy Head of HCMC’s Urban Development Department, highlighted Resolution 17/2025, offering incentives for investors in old apartment renovations approved after August 4, 2025.
“Resolution 17/2025 aims to attract more investors by addressing legal hurdles and providing additional support,” Mr. Dung noted.
Enhanced Incentives for Developers
Le Hoang Chau, Chairman of HCMC Real Estate Association, praised the 2023 Housing Law for streamlining old apartment renovations. Temporary housing mechanisms in the Land and Housing Laws facilitate demolition and reconstruction.
However, administrative delays and high costs discourage investors. Mr. Chau suggests adjusting planning regulations—increasing land use coefficients, height limits, and population density—to attract developers.
At a recent meeting, Vice Chairman Bui Xuan Cuong directed the Construction Department to review legal frameworks, establish inspection budgets, and prioritize repairs to ensure resident safety.
Revitalizing Old Apartments: Good News for Residents in Ho Chi Minh City
Pre-1994 apartment buildings in Ho Chi Minh City are eligible for renovation and reconstruction support. Additionally, the city is conducting quality reassessments of hundreds of aging residential complexes.
The City of Ho Chi Minh: Redevelopment of Old Apartments in 42 Wards
“Ho Chi Minh City is proactively rolling out incentives and support for the renovation and reconstruction of apartment buildings constructed before 1994. The city is taking a proactive approach to address the aging infrastructure and improve the living conditions for its residents.”
