An accommodation area for workers in HCM City’s Bình Tân District. — VNA/VNS Photo |
HCM CITY — Việt Nam's largest city plans to complete four social housing projects and start eight more in 2025 to address the growing demand for affordable housing.
The HCM City Department of Construction reports that the four projects, totalling 2,874 units, are located in District 6, District 10, and Thủ Đức City, catering to workers in nearby industrial zones.
The eight new projects will provide nearly 8,000 units, with two projects each in Thủ Đức City and District 12, along with others in Bình Thạnh, Bình Tân, and Bình Chánh Districts.
In 2024, only one social housing project was approved due to planning and investment challenges.
Bùi Xuân Cường, deputy chairman of the city’s People’s Committee, has called for a thorough evaluation to speed up social housing project timelines, aiming for project preparation to be completed in six months and overall completion within a year.
The city plans to build 69,700 to 93,000 social housing units by 2030 and is currently working on ten projects, six of which are finished, providing nearly 6,000 apartments.
Despite progress, challenges remain, including urban planning issues, procedural delays, and a lack of investor engagement.
Private investment
Phan Văn Mãi, chairman of the People’s Committee, said the city was seeking private investment in seven social housing projects in order to achieve the target by 2030.
"The city is committed to addressing the bottlenecks that impede the development of social housing in order to meet increasing demand and improve living conditions in order to attract and retain high-quality workers within the city," he noted.
Mãi encouraged all sectors to invest in housing development, particularly in social and low-cost housing.
Funding for the city’s housing development initiatives is expected to be sourced from private enterprises, credit institutions, household savings, and other avenues.
For social housing development specifically, funding will primarily be derived from private enterprises, preferential credit programmes, and 10 per cent of the city’s budget.
The Ministry of Construction has recently proposed a fresh VNĐ100 trillion ($3.9 billion) credit package for social housing, funded by government bonds and managed by the Social Policy Bank.
It offers loans for purchasing, building, renovating, or repairing social housing at interest rates set for poor households by the Government.
Previously, the Government approved a VNĐ120 trillion package for preferential loans from four commercial banks, with rates 1.5 to 2 percentage points lower than standard rates. But only VNĐ1.2 trillion, or over 1 per cent, has been disbursed after a year. — VNS