Under Prime Minister Pham Minh Chinh’s directive, a national housing fund will be established later this month.

The Prime Minister made the instruction during a video-teleconference on social housing development, held in Hanoi on March 6, according to the Government News.

The fund aims to mobilize social resources to increase low-cost housing supply in Vietnam, especially in major urban centers.

The demand for social housing is very high in Vietnam but construction process remains slow.

The PM tasked relevant ministries, agencies and localities perform their tasks in line with their functions, duties, and authority and deploy breakthrough solutions on social housing development.

He was quoted by the Government News as saying at the video-teleconference that the Government targets to cut at least 30 per cent of administrative procedures in 2025 in a bid to speed up construction progress.

The Ministry of Construction was assigned to review and propose preferential policies for social housing development, which must be submitted to the Prime Minister either this month or in April.

Vietnam targets to build at least 1 million social housing units for low-income earners and workers at industrial parks during the 2021–2030 period.

However, so far, only 103 projects with 66,755 apartments were completed, equivalent to less than 7 per cent of the preset goal. Meanwhile, 137 other projects have been under construction with 114,618 apartments. Over 400 other projects got construction licenses with 412,200 apartments.