The City’s Aging Apartment Blocks Get a New Lease of Life: Over 500 Run-Down Residential Buildings in Ho Chi Minh City to be Revamped in the Next Decade

According to Mr. Vu Anh Dung, Deputy Head of Urban Development, Ho Chi Minh City Department of Construction, in the next ten years, the city will complete the renovation and repair of over 500 old and dilapidated apartments built before 1975 and between 1975 and 1994. The renovation and repair of these apartment buildings include relocation, demolition, and reconstruction for those severely damaged and dangerous ones, as concluded by professional assessment. For the remaining apartments that are not yet classified for demolition, repairs will be carried out to prevent further deterioration and enhance the city’s aesthetics.

As per the current Law on Housing, old apartments are defined as those built before 1994. The city will initially prioritize those constructed before 1975. From 2016 to 2020, Ho Chi Minh City utilized the state budget to renovate and repair 237 out of 474 pre-1975 apartments.

Moving forward, the city has proposed solutions to expedite the relocation and demolition process for old and hazardous apartments that need to be rebuilt. Specifically, the city will allocate state funds for inspecting, assessing, and evaluating the quality of apartment buildings. It will also empower local authorities at the district level to take charge of planning, approving, and announcing apartment renovation and reconstruction plans.

Ho Chi Minh City will continue to promote and encourage the cooperation of residents who have not yet relocated from severely damaged and dangerous apartments, as concluded by assessments. These residents will be provided with temporary housing and resettlement options in state-owned housing funds prepared by the city.

For those who do not agree with the relocation plan and fail to comply with the state’s regulations, the authorities will enforce compulsory measures to carry out the apartment renovation and repair plans for the common good. This ensures the safety of the community and contributes to the city’s aesthetic improvement.

The 2023 Housing Law and the Government’s Decree No. 98/2024/ND-CP, dated July 25, 2024, on the reconstruction of apartment buildings, provide detailed regulations on investment procedures and incentives for apartment renovation and reconstruction projects. Investors are exempt from land compensation and land use or rental fees. They are also permitted to sell apartments and commercial and service areas after completing compensation and resettlement. Additionally, the government will support relocation and enforcement costs and infrastructure construction expenses.

Ho Chi Minh City is currently drafting a resolution to provide additional incentives and support for investors participating in apartment renovation and reconstruction projects. According to the draft resolution, the city will support 50% of the cost of constructing technical infrastructure within the project’s scope, up to VND 10 billion per project. It will also provide 50% support for relocation and enforcement costs according to the plan and 100% exemption for project investment approval fees.