An urgent need of a mega city
After more than 10 years and many changes of rented accommodation, Ngo Dinh Quan and Tran Thi Tram, who reside in Binh Hung Hoa Ward, still have not been able to buy an apartment to stabilise their lives. Both husband and wife work as accountants for a company, with a combined monthly income of around 25 million VND. After deducting living expenses, they can only save about 7 million VND each month. Before having children, life was still manageable, but since welcoming two young children, the pressure has become even heavier, while housing prices continue to rise. Their dream of owning an apartment is becoming increasingly distant.
Millions of workers in Ho Chi Minh City are facing a situation similar to that of Quan and Tram. Nguyen Van Hai, Member of the Standing Committee of the Ho Chi Minh City Labour Federation, said that a survey of 200,000 workers showed that as many as 95% have expressed a desire to buy social housing. However, with incomes ranging from 10-15 million VND per month, they would need an average of 20 years of savings to afford an apartment, not factoring in other fluctuations.
Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies, stated that social housing not only has social welfare significance but is also an important factor in urban governance and labour market stability. It is also an inseparable component of the city’s sustainable urban development strategy. According to statistics, during the 2021-2025 period, the city completed nearly 18,000 social housing units. However, compared with the actual demand from workers, this result remains very modest.
Social housing not only has social welfare significance but is also an important factor in urban governance and labour market stability. It is also an inseparable component of the city’s sustainable urban development strategy. According to statistics, during the 2021-2025 period, the city completed nearly 18,000 social housing units. However, compared with the actual demand from workers, this result remains very modest.
Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies
Under the government’s project to build one million social housing apartments during the 2025-2030 period, Ho Chi Minh City has been assigned the target of constructing 199,400 apartments, accounting for 20% of the national target. However, as of the end of 2025, the city has only completed a little over 13,000 apartments. Therefore, during the 2026-2030 period, the city needs to develop more than 164,000 units to meet the target. This is a major challenge in the context of many unresolved difficulties and obstacles.
Resolving bottlenecks to create breakthroughs
As a long-time investor in social housing, Le Huu Nghia, Director of Le Thanh Company and Vice Chairman of the Ho Chi Minh City Real Estate Association, pointed out difficulties and obstacles in the implementation of projects. For example, businesses remain hesitant because there are many potential risks during project implementation. Prolonged procedures, high capital costs, and a lack of available clean land have placed many projects at financial risk.
Giving an example of administrative procedures, Nghia said that although the city had agreed on a seven-step process for implementing social housing projects to be completed within 132 days, in reality, projects find it very difficult to meet this timeline. Even in favourable cases, completing procedures takes more than 700 days.
Similarly, regarding capital sources, although social housing is supported by a 145 trillion VND credit package with a preferential interest rate of 6.1%, actual market interest rates remain very high. Fearing losses, many banks have refused to provide loans. Even when businesses requested commercial loans, approval was still denied because banks feared being “whistled” for lending to the wrong beneficiaries. Businesses are very willing to cooperate with the city in developing social housing, but they need a transparent and open mechanism. This is the important policy foundation that enables businesses to confidently implement projects.
To achieve the target of developing nearly 200,000 social housing units by 2030, Ho Chi Minh City is implementing a series of strong measures. Pham Minh Man, Deputy Director of the Department of Construction, affirmed that the city will complete planning for land reserves for social housing construction through to 2040 with around 2,000 hectares, creating sufficient supply to fulfil the target of 28,500 units in 2026 and subsequent years. The city is studying a housing savings fund model, allowing workers to make regular salary contributions to purchase homes. Regarding sanctions, social housing projects delayed in implementation will not be allowed to complete procedures for selling commercial housing, while projects with prolonged delays may even face revocation of both the project and land fund. In addition, administrative reform and measures to facilitate business investment participation will continue to be studied and supplemented in a streamlined and effective direction.
Alongside developing social housing for sale, the city is also studying and implementing the Secretariat’s Directive No. 34-CT/TW (dated May 24, 2024) on social housing and orientations for housing development in the coming period.
According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, housing development thinking needs to change towards diversifying models, especially rental housing. The state should introduce policies supporting the development of rental housing and consider it a source of affordable housing for workers. To mobilise resources effectively, the HCMC Labour Federation has been assigned to coordinate social resources to develop housing under rental and purchase models, with a focus on rental forms. City leaders have also requested relevant agencies to survey housing purchase and rental demand in order to provide suitable support for each group.
For social housing to develop sustainably, Viet Nam needs a specialised agency with the full participation of ministries and sectors in order to focus on developing this type of housing. The implementation process also needs to be standardised to ensure consistency and fairness in legal procedures, progress, and pricing. The Ministry of Construction could issue model house and apartment designs to help reduce approval and design costs. In addition, financial sources and support policies for beneficiaries and investors need to be convenient through appropriate preferential policies.
Architect Nguyen Hong Hai, Director of Development and Technology Joint Stock Company
Referring to Singapore’s experience, architect Nguyen Hong Hai, Director of Development and Technology Joint Stock Company, noted that more than 80% of Singapore’s population currently lives in buildings constructed by the Housing Development Board. Singapore’s achievements in social housing development are the result of a long-term, comprehensive, and consistent strategy. These housing areas are well planned, equipped with synchronised utilities, and supported by convenient financial access mechanisms for those in need.
For social housing to develop sustainably, Viet Nam needs a specialised agency with the full participation of ministries and sectors in order to focus on developing this type of housing. The implementation process also needs to be standardised to ensure consistency and fairness in legal procedures, progress, and pricing. The Ministry of Construction could issue model house and apartment designs to help reduce approval and design costs. In addition, financial sources and support policies for beneficiaries and investors need to be convenient through appropriate preferential policies.
Social housing is currently a strategic issue for Ho Chi Minh City, especially during the present stage of development as a mega city. This need not only ensures sustainable social welfare policies but is also a condition for maintaining and improving labour productivity, attracting investment, and laying the foundation for the goal of double-digit economic growth.
