A developing urban area in the southern province of Bình Dương. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — The Government has established a National Housing Fund under Decree 302 to help ease housing pressures on low-income earners and industrial park workers.

Nguyễn Thị Mây, a worker at Thăng Long Industrial Park in Hà Nội, and her family have been renting a room in Thiên Lộc Commune for nearly a decade.

With a combined monthly salary of around VNĐ18 million (US$680), homeownership and even social housing remain out of reach for them.

“My husband and I both work in the industrial park and our two children stay with us. Buying a home is out of the question, especially since our workload has declined and workers are struggling. Our monthly rent and utilities alone are already VNĐ3.5 million ($130),” Mây told Voice of Vietnam (VOV).

As housing prices in major cities have soared since late 2024, stable housing has become an increasingly distant dream for blue-collar workers.

The launch of the National Housing Fund has therefore been welcomed, with many hoping it will soon lead to secure, affordable housing.

Another worker said: “My family doesn’t meet the criteria to be able to purchase a social housing unit and there are far too few projects. I hope this new policy will expand the housing supply.”

Under the Government’s Decree 302, the National Housing Fund will invest in building social housing and other similar infrastructure for rent. It may receive and convert public properties and purchase or order the construction of housing units from wholly State-owned enterprises.

The fund can also receive resettlement units, temporary housing and voluntary contributions, and purchase commercial housing to rent to civil servants, public employees and workers.

The breakthrough lies in its approach, which aims to meet actual needs, create a stable long-term supply and make durable housing attainable for low-income households. Because the fund focuses on renting rather than selling, the housing stock remains intact as a long-term public asset.

According to Hà Quang Hưng, deputy director of the Department of Housing and Real Estate Market Management (under the Ministry of Construction), the fund is designed to mobilise, manage and invest in long-term development of social housing and rental units, ensuring sustainable financial resources for social welfare goals.

“The fund will expand the supply of rental housing. By saving land resources and allowing many people to use the same housing stock over time, it will help meet long-term accommodation needs for groups unable to afford even social housing," said Hưng.

“It will also stimulate social housing development, balance supply and demand, adjust the real estate commodity structure, lower commercial housing prices, ultimately contributing to a stable, healthy real estate market.”

Dr Nguyễn Văn Đính, vice chairman of the Việt Nam Real Estate Association (VNREA), noted that many countries have found success with similar models. Việt Nam may adopt later but the policy remains fitting and appropriate within the broader strategy for housing market stability.

The fund helps diversify existing social welfare tools, he explained. Those looking to buy homes can purchase from enterprises while those who cannot afford or only need temporary accommodation can access rental housing – a widespread need in industrial zones.

Đính added that the National Housing Fund’s capital sources are viable, drawing from the State budget, land auctions and project contributions.

The remaining challenges lie in operations and prioritisation during the implementation process. This means local authorities must take responsibility and ensure balanced planning.

“Our housing market still relies heavily on credit, reducing feasibility and effectiveness. Managing, governing and approving fund operations must be handled cautiously due to limited experience. Ministries involved in finance, natural resources and construction will need to issue more detailed guidance,” said the VNREA vice chairman.

Sharing the same perspective, Dr Đặng Việt Dũng, chairman of the Việt Nam Federation of Civil Engineering Associations, stressed the importance of coordination between central and local authorities.

One of the examples of this issue is when the centrally invested fund may aim to provide housing for central-level staff but the execution depends on local land availability.

Meanwhile, local-level funds currently have no mandated scale, he added. Ideally, localities should use their budgets to set up funds similar to the central model.

However, if they struggle to secure land, the fund development will be hindered. Therefore, more specificity is needed to ensure effective rollout, he explained.

Dũng also noted that private developers of social housing can both rent and sell units, enabling rapid capital recovery. The National Housing Fund, however, offers rental-only units, meaning capital recovery will be slower.

While State support for workers is essential, favourable mechanisms must be in place to address this issue or the fund’s developments will face obstacles.

Suggesting financial resources to facilitate the operations of the National Housing Fund, Associate Professor Dr Nguyễn Thường Lạng from the National Economics University said there should be linkages with the banking system and financial institutions.

“This approach would provide the highest level of support for low-income people. Diversified capital and shared responsibility among stakeholders can create a broader network and better problem-solving capacity,” he said.

A successful national rental housing fund will require strong initial resourcing, with well-allocated land tied to comprehensive urban planning so residents have access to jobs, transport and public services.

Early projects should prioritise major industrial zones where demand is highest.

In addition, a data-driven operating model with greater decision-making autonomy can ensure efficient management, alongside transparent rental mechanisms that balance workers' affordability with the fund’s capacity to reinvest.

Flexible pricing aligned with income levels and service quality comparable to commercial housing are also considered essential.

Collaboration with businesses and communities, from land contributions to oversight, can further enhance effectiveness, supported by periodic monitoring and policy adjustments to keep the fund sustainable. — VNS