Revolutionary Policy for Affordable Housing Development

On the morning of October 24th, Prime Minister Pham Minh Chinh, Head of the Central Steering Committee for Housing Policy and Real Estate Market, chaired a conference on accelerating and boosting the development of social housing (SH). The conference was held directly at the Government Office and connected online with 17 provinces and cities with high demand for SH.

Promoting “National Spirit and Fraternal Solidarity”

The Prime Minister emphasized that the Party and State have consistently prioritized social welfare alongside economic growth, ensuring no compromise on progress, equality, and social well-being. Over the years, Vietnam has successfully implemented social welfare policies, including the elimination of temporary and dilapidated housing nationwide. The country’s happiness index has risen by 39 ranks. The Prime Minister called for continued progress, guided by the principles of “national spirit and fraternal solidarity” in SH development, as outlined in the 13th Party Congress Resolution.

The Government has adopted a resolution on the plan to construct at least 1 million SH units for low-income earners and industrial park workers from 2021 to 2030. Localities have also developed housing programs, aiming to complete over 100,000 SH units by 2025. To date, 696 SH projects, comprising approximately 640,000 units, are underway. In the first nine months of 2025, over 50,000 units were completed, with an expected total of 89,000 units by year-end, achieving 89% of the annual target.

While these results are encouraging, Prime Minister Pham Minh Chinh noted that they fall short of public demand, necessitating greater efforts. He urged delegates to engage in detailed discussions to formulate effective solutions for sustainable SH development and to draft a new government resolution on this issue.

The Prime Minister stressed that the new resolution must introduce mechanisms and policies that benefit all stakeholders. The selection of enterprises (E) for SH development should be based on transparent, competitive criteria, balancing business advantages with social responsibility and “national spirit and fraternal solidarity.” Enterprises must empathize with the needs of SH beneficiaries to deliver meaningful projects.

For local governments, the Prime Minister emphasized the need for SH planning that aligns with other housing segments and ensures equal access to infrastructure, including transportation, telecommunications, utilities, and public services. He insisted that SH policies and their implementation must prioritize buyer convenience, transparency, and digitalization. “We must prevent situations where citizens have to ‘compete or resort to connections’ to purchase SH, as this can lead to corruption and policy distortions,” the Prime Minister stated.

Expanding SH Policy Beneficiaries

During the conference, delegates discussed state management of SH development, the role of local governments in land allocation and clearance, actual SH demand, funding and credit sources, incentives for SH projects, and pricing for sales and rentals. Key proposals included establishing criteria for selecting SH developers, defining eligibility for SH policies, ensuring transparency and simplified procedures, and preventing policy exploitation.

In his concluding remarks, the Prime Minister directed the Ministry of Construction to incorporate feedback and finalize the draft resolution for government approval. The new resolution should introduce groundbreaking solutions to longstanding legal challenges, establish long-term SH development frameworks with flexibility for adjustments, and address real estate exchanges, the national housing fund, and housing data.

The resolution will apply nationwide, encouraging participation from qualified enterprises based on financial capacity, experience, and resources. It aims to reduce administrative procedures by 50%, prioritize SH projects for expedited processing, secure cleared land through flexible methods, and diversify funding sources, including credit, state capital via the Vietnam Bank for Social Policies, housing development funds, and bond issuance.

Local governments are tasked with streamlining administrative procedures for SH development, adhering to the principle of “local decision-making, local execution, and local accountability.” They must protect the legitimate rights of citizens and businesses while upholding legal discipline.

The resolution will clarify buyer procedures, emphasizing ex-post checks and integrated databases for transparency. It will broaden SH policy eligibility, promote SH in both urban and rural areas, and integrate diverse housing segments within urban developments, sharing common infrastructure.