Why Ho Chi Minh City’s Hottest Social Housing Project Hasn’t Launched Yet

Not Yet for Sale

The Ly Thuong Kiet Social Housing Project is located at 324 Ly Thuong Kiet Street (Ward 14, former District 10), Ho Chi Minh City. It is considered the most strategically located social housing project, situated in the heart of Ho Chi Minh City and opposite the Phu Tho Indoor Stadium. Construction began on September 26, 2019, with 4 blocks of 25 floors each, expected to provide 1,254 apartments. However, the project has not yet been put into use.

Previously, the Ho Chi Minh City People’s Committee issued a document to departments, agencies, and Duc Manh Joint Stock Company regarding the adjustment of the investment policy for the Ly Thuong Kiet Social Housing Project. Accordingly, the Ho Chi Minh City People’s Committee approved the proposal of the Department of Planning and Investment (now the Department of Finance) and related units on adjusting the timeline, implementation progress, and total investment capital of the project, with Duc Manh Joint Stock Company as the investor.

The investor must complete the construction within 15 months from February 10, 2025. Subsequently, within 3 months, they must complete the acceptance, handover, and commissioning process.

The total investment capital (preliminary total project cost) of the Ly Thuong Kiet Social Housing Project is over 1,561 billion VND. This includes the investor’s equity of over 468 billion VND and mobilized capital of over 1,000 billion VND.

The Ho Chi Minh City People’s Committee requires Duc Manh Joint Stock Company to implement the project on schedule, without selling or transferring apartments to foreign organizations or individuals. Additionally, foreign organizations or individuals are not allowed to own housing as per the commitment, and the project to upgrade and expand Alley 334 Ly Thuong Kiet must be completed as scheduled…

After the social housing construction project is completed and put into use, Duc Manh Joint Stock Company will conduct an audit and approve the project cost settlement as per regulations, submitting a set of documents to the Department of Construction.

If the selling or rental price of social housing, as per the audit and settlement results, is higher than the price agreed in the contract, the investor may not collect the price difference. If it is lower, the investor must re-sign the contract or supplement the contract with an addendum and refund the difference to the buyer or tenant.

Currently, there is market information about the sale of the Ly Thuong Kiet Social Housing Project with various details. However, speaking to Tien Phong Newspaper, Ms. Nguyen Thi Chi, General Director of Duc Manh Joint Stock Company, confirmed that the company has not implemented any sales policy for any apartments in the project, nor has it authorized or cooperated with any unit, organization, real estate agency, or individual to sell or accept deposits for apartment sales.

What is the Current Progress?

Previously, Duc Manh Joint Stock Company sent multiple documents to the Department of Construction, District People’s Committee, and Ward People’s Committee regarding the above issue to inform the public and advise caution regarding social housing purchase information for the Ly Thuong Kiet project online.

Ms. Chi affirmed that the procedures and processes for selling the Ly Thuong Kiet Social Housing Project will strictly adhere to the provisions of the law on social housing. Specifically, these include the 2023 Housing Law, Article 38 of Decree 100/2024/ND-CP dated July 26, 2024, issued by the Government, detailing some articles of the Housing Law on social housing development and management, and other related documents.

“All information regarding the sales launch, including the start and end dates for receiving registration files, will be specifically announced on the company’s website and publicly disclosed on the Ho Chi Minh City Department of Construction’s Electronic Information Portal once the project is approved for sale,” said Ms. Chi.

Regarding progress, the General Director of Duc Manh Joint Stock Company confirmed that the project is currently 90-95% complete and is continuing the acceptance and finalization process according to the schedule approved by the Ho Chi Minh City People’s Committee.

In response to the observation that some blocks have completed external rough construction but the construction site has recently been devoid of workers, Ms. Chi explained that the Ly Thuong Kiet Social Housing Project is 90-95% complete. Therefore, the number of workers is appropriately arranged to match the remaining workload.

Regarding the project’s six-year duration without completion, Ms. Chi stated that during implementation, several significant challenges and obstacles were encountered, which have been reviewed and resolved by the competent authorities.

“The most significant challenge currently faced by social housing projects nationwide is related to construction, sales procedures, and file acceptance. Newly issued legal regulations still have unclear provisions, requiring guidance from specialized agencies such as the Ho Chi Minh City Department of Construction and the Ministry of Construction to ensure clarity and minimize negativity during the acceptance and sales process,” said Ms. Chi.

Currently, the investor is coordinating with the Ho Chi Minh City Department of Construction to finalize these procedures before implementation, ensuring that the sales and file review process proceeds smoothly, in accordance with the law, and with fairness and objectivity.