Challenges in Social Housing Obligations
Mr. Phạm Đăng Hồ, Head of Urban Development Division at the Ho Chi Minh City Department of Construction, highlighted numerous challenges faced during the implementation of social housing projects.
 The Lý Thường Kiệt Social Housing Project (Diên Hồng Ward) comprises 1,254 apartments.
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These include determining compensation costs for site clearance, technical infrastructure investment expenses, and other lawful costs. Allocating these expenses to the social housing land fund when developers hand over the land to the government is another hurdle.
Similarly, the government may reclaim land designated for social housing if developers fail to meet project deadlines.
Fulfilling social housing obligations also presents challenges, such as determining the timing for monetary contributions. Developers must pay an amount equivalent to the value of land used for technical infrastructure development, which is intended for social housing construction.
Even confirming the completion of social housing obligations is difficult when developers opt for monetary contributions as per government decrees.
Overcoming Land Fund Challenges
The government recently issued Decree No. 261/2025/NĐ-CP, amending and supplementing certain provisions of Decree No. 100/2024. This decree details the implementation of the Housing Law regarding social housing development and management. It also includes Decree No. 192/2025, which outlines specific provisions and measures for Resolution No. 201/2025, a pilot program introducing special mechanisms and policies for social housing development.
The MR1 Social Housing Project, part of the Tân Thuận Tây residential area (Tân Thuận Ward), remains an empty lot three years after groundbreaking. It is currently used as a parking area and construction material sales site.
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A notable aspect of this decree is its resolution of land fund issues for social housing development. It specifies the amount developers must contribute, equivalent to the value of land used for technical infrastructure development, which is earmarked for social housing.
Previously, Decree No. 100/2024 lacked clear guidelines for calculating the replacement cost of 20% of project land for social housing. This calculation typically occurred after technical infrastructure completion, leading to varying interpretations and applications across regions, complicating cost calculations and collections.
Decree No. 261/2025 now stipulates that developers must pay an amount equivalent to the value of land used for technical infrastructure development, intended for social housing. Specifically, the land use fee for 20% of the residential land area in a project is determined according to land laws.
The amount equivalent to technical infrastructure development costs is calculated by multiplying 20% of the residential land area by the total technical infrastructure development costs of the project. This is based on the infrastructure construction investment rate announced by the Minister of Construction at the time of land use fee calculation.
Decree 261/2025 also introduces a provision for late payment penalties if developers fail to meet the specified payment deadlines.
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Unlocking a Significant Supply According to the Ho Chi Minh City Department of Construction, a review revealed a substantial allocation of land for social housing within commercial housing projects and urban areas. In Ho Chi Minh City, 35 commercial housing and urban development projects are designated for 20% social housing land allocation, totaling approximately 247 hectares. This is expected to yield around 71,000 apartments. Bình Dương Province has 33 projects covering about 138 hectares, with an estimated 39,000 apartments. Bà Rịa – Vũng Tàu Province has 4 projects spanning 23 hectares, anticipated to provide 5,800 apartments. |
Quốc Anh
– 10:40 23/10/2025
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