The MoC reduces its pledge to build over one million social housing units

The MoC has adapted its objective for social housing (SH) construction to reflect unique realities. By 2030, around 1 million apartment units will be constructed. Of which, about 428,000 will be finished between 2021 and 2025, and approximately 634,000 will be completed between 2025 and 2030.

According to the MoC, presently, the proposed updated Housing Law and the Draft Resolution from the National Assembly on piloting the SH policy have developed in light of the scarce availability of funds from the state. There are advantageous measures for compliance with the legislation to encourage firms to engage in the establishment of SH for the purchase, rental, and lease-purchase of properties.

Deputy Minister of Construction Nguyen Van Sinh stated that the housing product structure in 2022 had been skewed towards the high-end sector, with accommodation for low-income households being inadequate. There are only nine newly approved social housing projects with a total of 5,526 apartments and two worker housing projects with a total of 1,729 units in the whole nation.

The MoC indicated that, to meet the target of SH development in 2030, roughly $36.71 billion is required. Credit is thus the main method for financing these initiatives. The MoC has suggested that the government should organise a $462 million preferential loan package, of which about $231 million would be provided to homeowners and the remainder to social housing investment companies.

Originally, the MoC had set a target of around 1.4 million finished residences by 2030. Of these, around 571,200 would be built from 2021 to 2025 and about 845,500 from 2025 to 2030. The original investment for the project was $47.5 billion.

According to the MoC, the goal volume of flats for public and worker housing to be built during the 2021-2025 period has been established by integrating information from localities based on the programme, an authorised community housing plan, and currently registered quantities.