The Vietnamese government has issued Decree No. 261/2025/NĐ-CP, amending and supplementing several provisions of Decree No. 100/2024/NĐ-CP dated July 26, 2024, and Decree No. 192/2025/NĐ-CP dated July 1, 2025. These decrees detail the implementation of the Housing Law regarding the development and management of social housing and pilot mechanisms for social housing development.
Addressing Land Allocation for Social Housing Development
One notable update in Decree 261/2025/NĐ-CP is the requirement for developers to contribute an amount equivalent to the value of land used for technical infrastructure development, specifically allocated for social housing projects.
Previously, Decree No. 100/2024/NĐ-CP lacked clear guidelines on calculating the 20% land replacement value for social housing. This ambiguity led to inconsistent interpretations and challenges in calculation and collection across localities.
Decree No. 261/2025/NĐ-CP amends and supplements clauses 2, 3, and 4, and adds clause 2a to Article 19 of Decree No. 100/2024/NĐ-CP, outlining cases where developers must pay an amount equivalent to the land value for social housing infrastructure.
Under the new regulations, the amount developers must contribute includes:
a) Land use fees for 20% of the residential land area, calculated according to land laws;
b) Costs equivalent to 20% of the technical infrastructure investment, based on the project’s total infrastructure investment, excluding land reclamation and sea encroachment costs.
Developers failing to pay on time will incur late payment fees as per tax regulations. Payments are directed to local budgets and managed under national budget and National Housing Fund laws.
Once payment is made, developers fulfill their social housing obligations.
Single Individuals Earning Up to VND 20 Million/Month Eligible for Social Housing
Decree No. 261/2025/NĐ-CP also amends clauses 1 and 2 of Article 30 in Decree No. 100/2024/NĐ-CP, updating income eligibility for social housing support:
1. For individuals under clauses 5, 6, and 8 of Article 76 of the Housing Law:
a) Single applicants must earn no more than VND 20 million/month. Single parents with minors can earn up to VND 30 million/month.
b) Married couples’ combined income must not exceed VND 40 million/month.
c) Income is assessed over the 12 months preceding verification.
d) Provincial authorities may adjust income limits based on local conditions and household size.
2. Applicants without employment contracts must meet income criteria and obtain verification from local police within 7 days.
These updates allow single individuals earning up to VND 20 million/month, single parents with minors up to VND 30 million/month, and married couples up to VND 40 million/month to access social housing. Provincial adjustments accommodate local economic conditions.
Social Housing Loan Interest Rates Reduced to 5.4%/Year
Previously, social housing loans under Decree No. 100/2024/NĐ-CP carried a 6.6%/year interest rate. Decree No. 261/2025/NĐ-CP reduces this to 5.4%/year, with overdue interest at 130% of the lending rate. The Social Policy Bank may propose further adjustments as needed.
The decree also updates income eligibility for military personnel, capping spouses’ income at 1.5 times a Colonel’s total income.
Decree No. 261/2025/NĐ-CP takes effect on October 10, 2025.
