Expanding the criteria and beneficiaries of social housing policies.
The announcement emphasizes the importance of the real estate market in the economic “ecosystem,” influencing production chains, capital and credit markets, labor, and more. As such, the National Assembly, Government, and Prime Minister have focused on perfecting and removing institutional bottlenecks and planning constraints, as well as addressing difficulties and obstacles to promote healthy and sustainable development.
Despite positive indicators and reports suggesting recovery and growth, the real estate market still faces challenges: there is a shortage of real estate supply, a mismatch between market demand and the lack of middle-income and social housing options, and extremely high property prices in urban areas compared to people’s incomes. Access to housing, especially in the middle-income and social housing segments, remains difficult, and there are instances of “price manipulation and speculation” that drive land prices to unreasonable heights.
The primary reasons for these issues are policy and legal delays, protracted administrative procedures (related to subdivision approval, detailed planning, investment procedures, and land valuation), limited access to credit, unresolved project obstacles, insufficient market information and data, ineffective market forecasting tools, and a lack of implementation of government regulatory measures.
To promote the healthy and sustainable development of the real estate and housing market and ensure that it meets the housing needs of the people, the Deputy Prime Minister has instructed the Ministries of Construction, Finance, Agriculture and Rural Development, and the State Bank of Vietnam to urgently identify and address inconsistencies, contradictions, and overlapping provisions in laws, decrees, and circulars. This will ensure that the legal framework is transparent, understandable, and easy to implement.
Evaluating the Entire Process of Real Estate Project Implementation
The Deputy Prime Minister has emphasized the need to evaluate the entire process of real estate project implementation, from appraisal and approval of subdivision planning and detailed planning to investment procedures, land price determination, technical design, base design, construction drawings, and construction permits. The goal is to simplify, integrate, and streamline procedures, reducing the time and cost of compliance while ensuring clear accountability for each agency. Implementing these procedures in a digital environment will enhance transparency, efficiency, and effectiveness.
Timely guidance will be provided to local governments to ensure a uniform application of laws, especially transitional provisions related to land, investment, planning, and housing. This will accelerate the progress of projects and expedite the release of state investment resources, social resources, and land resources.
The Ministry of Construction has been instructed to urgently develop and establish a real estate market information system, including transaction data, property prices, and supply-demand analysis. This will enable the state to proactively regulate the market through urban planning, development programs, and housing plans to adjust supply, modify project schedules and product structures, and implement financial and credit policies, including tax tools, in line with market conditions in each period. The ministry will also explore the development of real estate trading centers suitable for local conditions and transaction subjects.
The Ministry of Construction, in coordination with the Ministry of Finance and the Ministry of Agriculture and Rural Development, will propose tax policies for real estate projects that are slow to implement and cause social investment resource waste and land resource waste. They will also take the lead in coordinating with the Ministry of Finance and other relevant ministries and sectors to integrate investment procedures, base design approval, technical design, fire protection, and other procedures into the construction permit to shorten the construction investment time.
The Ministry of Construction will promptly study and issue standard design models for social housing, expand the criteria and beneficiaries of social housing policies, and diversify access modes such as rental, rent-to-own, and purchase.
The Ministry of Construction, in coordination with ministries, sectors, and localities, will synthesize difficulties, recommendations, and proposed solutions and report them to the Steering Committee. They will also submit them to the Government for consideration and issuance of a resolution to promote the healthy development of the real estate market.
Preventing Land Price Manipulation and Speculation
The Ministry of Agriculture and Rural Development, in coordination with the Ministry of Finance, will review land-related regulations, especially administrative procedures, land valuation, assigning the task of consulting on land price determination to eligible public service units when unable to select a land price consulting organization, land access, and transitional provisions. They will submit a draft decree amending and supplementing these points to the Government in June 2025.
They will also urgently complete the construction of a land price database down to the land lot level, based on value zones and standard land lots, moving towards a single land price to ensure transparency and fairness. This will serve as the basis for implementing real estate tax policies and preventing land price manipulation and speculation.
Studying Taxation on Idle Land and Slow-Moving Real Estate Projects
The Deputy Prime Minister has instructed the State Bank of Vietnam, in coordination with the Ministry of Construction, the Ministry of Public Security, and relevant agencies, to review and assess non-performing loans related to real estate and housing to develop appropriate handling measures, ensuring safety for the banking system. They will also explore expanding access to preferential credit for investors and people in implementing social housing policies.
The Ministry of Finance, in coordination with the Ministry of Construction and the State Bank of Vietnam, will study taxation on idle land and slow-moving real estate and housing projects, avoiding double taxation.
Reviewing Residential Relocation Projects and Unused Commercial Housing for Conversion to Social Housing
The Deputy Prime Minister has requested the People’s Committees of the provinces and cities to focus on resolving difficulties and obstacles for real estate projects, reviewing and classifying projects with similar legal obstacles to those specified in Resolution No. 170/2025/QH15 of the National Assembly so that when the National Assembly allows for the expansion of the scope of application, immediate implementation can occur.
Based on demand forecasts, proactively prepare social housing land funds in addition to the 20% land fund from commercial housing projects to avoid shortages and surpluses in different areas. Proactively review residential relocation projects and unused commercial housing to propose to competent authorities for permission to convert them into social housing.
The Ministry of Construction – the Standing Agency of the Central Steering Committee on Housing and Real Estate Market Policies, in coordination with the Government Office, will organize a meeting of the Steering Committee on the situation of activities and deployment in the second quarter of 2025.
Social Housing Loan with Zero Disbursement in Quang Binh
Despite the efforts of the Social Policy Bank (SPB) – Quang Binh branch, to promote and facilitate social housing loans, there has been a notable lack of uptake in the region. The bank’s social housing loan package has seen zero disbursements, with only sporadic individual borrowers seeking funds for construction and home repairs.
National Housing Fund: A Non-Profit Initiative
“The Deputy Prime Minister, Ho Duc Phoc, announced the establishment of a National Housing Fund, a non-profit initiative primarily funded by the government’s budget. The fund aims to provide much-needed support for the construction of social and affordable housing for those in need.”
The Real Estate Market: Unpredictable Trends Unveiled
The real estate market is experiencing a shift, as indicated by a myriad of data points, transaction reports, and market sentiments. This adjustment comes on the heels of a brief period of heightened expectations.
“Proposed Property Tax on Stalled and Vacant Properties: A Study”
“Vice Prime Minister Tran Hong Ha has proposed a study on imposing taxes on idle land, as well as on real estate projects and housing developments that are delayed or stagnant. This proposal aims to address the issues of land speculation and stagnant development, encouraging more efficient use of land resources and promoting a vibrant and sustainable real estate market in Vietnam.”
A Plethora of Policies: Streamlining Social Housing Development and Slashing Red Tape by 70-100%
The proposed resolution by the National Assembly aims to introduce a range of special policies to boost the development of social housing. With a focus on reducing red tape, the resolution seeks to streamline the process of creating much-needed social housing.
