Optimizing Social Housing Policies: Enabling Cash Contributions in Lieu of Land Funds and Adjusting Income Caps for Buyers

The draft decree amending the Social Housing Law introduces a new mechanism allowing developers to pay a fee in lieu of allocating 20% of land in their projects for social housing. Additionally, it raises the income ceiling for eligible buyers and renters. These adjustments aim to address existing challenges and inject fresh momentum into the social housing development program.

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Deputy Prime Minister Tran Hong Ha chairs a meeting on the draft amendment to the decree on social housing – Photo: VGP

On the afternoon of October 10, Deputy Prime Minister Tran Hong Ha chaired a meeting to review the draft decree amending and supplementing certain provisions of Decree No. 100/2024/ND-CP, which details the Housing Law regarding the development and management of social housing. The meeting also addressed Decree No. 192/2025/ND-CP, guiding the implementation of Resolution No. 201/2025/QH15 by the National Assembly on special mechanisms and policies for social housing development.

According to the Ministry of Construction’s report, the draft focuses on resolving implementation challenges, particularly regarding land use obligations for developers. A notable update allows developers to pay a fee instead of directly allocating 20% of the project’s land for social housing construction.

The Ministry of Construction clarified that the land use fee for the entire project remains subject to current land law regulations. The equivalent area of 20% of residential land eligible for fee substitution will incur a 3% annual supplement based on the approved infrastructure completion schedule.

This calculation method is considered flexible for businesses while ensuring fairness, preventing budget shortfalls, and providing stable resources for social housing development. Paying fees based on infrastructure progress also discourages companies from exploiting the mechanism to delay obligations.

Beyond land mechanisms, the draft decree adjusts income eligibility criteria for purchasing or renting social housing. Proposed thresholds are VND 20 million/month for individuals, VND 40 million/month for couples, and VND 30 million/month for single parents raising underage children.

Provincial and city People’s Committee Chairpersons may adjust these thresholds based on local conditions and living costs. Compared to current regulations, the new proposal better reflects urban residents’ actual living expenses.

Notably, individuals without formal employment contracts can access social housing policies if they have residency confirmation from commune-level police authorities, based on national population data. This provision significantly expands policy coverage to include informal workers.

Regarding interest rates for social housing loans, the draft maintains the 5.4%/year rate, with adjustments subject to the Prime Minister’s approval based on market conditions and budget feasibility.

During the meeting, the Ministry of Construction sought input on selecting social housing project developers when multiple qualified companies apply. Deputy Prime Minister Tran Hong Ha emphasized ensuring transparency and fairness in the selection process, avoiding unwarranted designations or preferences.

The Deputy Prime Minister also stressed the need to introduce incentives for social housing supporting multi-generational families or nuclear families with three or more children, aligning with broader population and welfare policies.

Deputy Prime Minister Tran Hong Ha directed the Ministry of Construction to expedite the draft’s finalization, thoroughly review all content and submissions, and submit the amended decrees (100/2024/ND-CP and 192/2025/ND-CP) to the Prime Minister for issuance, ensuring swift policy implementation.

Tung Phong

– 20:13 10/10/2025

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