Reports from around Vietnam indicate that efforts undertaken since early 2025 in regard to social housing are beginning to gain momentum, with encouraging progress seen. In just the opening four months of the year, 15,614 units were completed and 17 new projects broke ground, adding a planned 17,664 homes to the pipeline.

Many cities and provinces in Vietnam, such as Hai Phong, Bac Ninh, and Nghe An, have shown a growing commitment to social housing this year. These localities have actively incorporated social housing targets into their socio-economic development plans and urged investors to initiate and complete projects. Such actions represent important steps towards the national goal of building 1 million social housing units by 2030.

Yet despite these initial gains, the development of social housing continues to face significant hurdles. The endeavor still struggles to attract private sector investment, and individuals with genuine housing needs often find it difficult to gain access. To translate momentum into meaningful impact, this critical segment of the housing market now requires not just continued action but a bold, forward-looking approach in management and leadership.

Ongoing obstacles

The Vietnam Association of Realtors (VARS) has highlighted several persistent challenges that continue to slow progress.

One major concern is the lack of designated land in many localities for social housing. Even when land has been set aside, poor infrastructure often makes development unfeasible. In many cases, developers are left to identify and clear land themselves, which increases costs and reduces project viability. Vietnam also lacks strong mechanisms to encourage private sector participation through land contributions.

Investment procedures, meanwhile, remain overly complex. Approvals for social housing projects can be just as, if not more, complicated than those for commercial housing. Developers must undergo extensive price reviews and beneficiary evaluations, with few streamlined or preferential policies in place. When combined with capped profit margins, these barriers make social housing unattractive to investors.

Financing is another major hurdle. Projects mostly rely on developers’ own capital and commercial bank loans. Though the government has introduced a VND120 trillion ($4.87 billion) credit package, the short loan terms and interest rates in place are often considered high for both developers and low-income buyers. There is no long-term, stable funding source from the State budget or housing development funds to support sustainable growth.

On the local level, policy support is often limited or missing. Many localities have yet to incorporate social housing into their phased housing plans, nor have they introduced specific incentives to encourage investment in the field.

Social housing projects also face operational challenges due to rising costs for construction materials, labor, and consulting services. The legal requirement that 20 per cent of land in commercial housing projects be allocated for social housing has proven difficult to enforce, with unclear guidance on how this land area should be planned, selected, and implemented.

Identifying eligible buyers and renters also remains problematic. Some localities are hesitant to decisively implement the national program, partly because the criteria for determining who qualifies are vague. Groups such as seasonal workers, armed forces personnel, or those on incomes just above the eligibility threshold often fall through the cracks.

While the Law on Housing 2023 includes many positive changes, some of its provisions are difficult to apply in practice. Key issues include a lack of clear procedures for verifying eligibility and strict residency requirements that make it difficult for migrant workers to qualify.

Experts warn that if these issues aren’t addressed, they could contribute to rising social inequality and broader socio-economic challenges.

Redefining the foundations

To address the ongoing challenges, Dr. Nguyen Van Dinh, Chairman of VARS, emphasized the need to clearly define the role of social housing in providing homes for policy beneficiaries, workers, and those involved in production, business, and other economic activities. The State and local authorities must take the lead, as housing development contributes to economic growth and national development.

It is therefore essential to identify the necessary conditions for promoting social housing, including land availability, streamlined procedures, and capital sources. Meanwhile, enterprises should be viewed as implementation partners, and encouraged to apply their expertise and capacity in developing social housing according to programs initiated by the State and local governments. This would help improve access to housing for low-income earners.

VARS has proposed several specific solutions. Regarding land funds, local authorities should plan and allocate specific and reasonable land areas for social housing development, incorporating this target into their five-year and annual housing development plans. Enterprises with available land reserves should be encouraged to participate in social housing development via supportive mechanisms such as land-use conversion and reductions or exemptions in financial obligations.

On investment procedures and developer selection, VARS suggested shortening the investment approval process and simplifying developer selection through a transparent, public bidding mechanism.

In terms of capital, it has recommended establishing central and local-level social housing development funds sourced from land revenues, State budgets, and contributions from businesses and industrial parks. Authorities should also promote real estate investment trusts and housing-focused investment funds dedicated to the social housing segment.

Local authorities must issue tailored support policies that reflect actual needs, such as rental housing development and diversified housing models, while ensuring proper targeting of potential beneficiaries. They must also strengthen monitoring and strictly penalize any policy abuse, corruption, or other practices that obstruct implementation.

VARS has recommended simplifying and making the beneficiary qualification process more transparent, shifting from pre-approval to post-verification mechanisms. There should also be dedicated policies for renting or rent-to-own arrangements for workers who lack sufficient financial capacity to purchase homes.

Mr. Tran Van Binh, Secretary General of VARS, noted that the development of social housing cannot rely solely on a few enterprises or simply remain a stated goal in planning documents. Its development requires a long-term, comprehensive strategy with effective enforcement across all levels of government. “Only when social housing becomes an indispensable part of urban planning, attractive to developers, accessible to citizens, and governed by a stable operating mechanism, will the goal of building at least 1 million new social housing units be realistically achieved,” he said. “That, in turn, will help build a harmonious, humane, and sustainable society.”

Speaking at the ninth session of the 15th National Assembly (NA) on the morning of May 24, during discussions on a draft resolution from the legislature to pilot specific mechanisms and policies for social housing development, Ms. Nguyen Hoang Bao Tran, NA Deputy from the Binh Duong delegation (now part of the Ho Chi Minh City delegation) emphasized that promoting social housing is a humane policy. If effectively implemented, it would not only help workers settle but also advance the country’s sustainable development. Stability in housing enables workers to focus on their jobs and contribute more to society.

She added that workers in industrial parks, export processing zones, and major cities nationwide all dream of owning a small, secure home. “They are not asking for luxury apartments, just a decent place to rest and laugh with their children after long, tiring workdays, at an affordable cost, whether rented or owned within their means,” she said.