Prime Minister calls for 100,000 social housing units to be built in 2025

Prime Minister calls for 100,000 social housing units to be built in 2025

While supporting housing for low-income earners and those in need, the government encourages various sectors of the economy to provide housing through market mechanisms.

Vietnam aims to complete more than 995,000 social housing units by 2030, with more than 100,000 planned for this year, according to the latest directive from Prime Minister Pham Minh Chinh.

A social housing project in Gia Lam District. Photo: Mai Van/The Hanoi Times

Hanoi, in particular, is expected to deliver 56,200 units between 2021 and 2030, but has so far achieved only 20% of this target. Close to 4,700 new units are scheduled to be built in the city this year.

The city is currently carrying out three social housing projects in Dong Anh District, covering an area of nearly 200 hectares. These projects aim for the quality of commercial housing, but will be priced below VND18 million (US$705) per square meter, according to Nguyen Xuan Luu, Director of Hanoi's Department of Finance.

Speaking at a government conference on boosting economic growth and sustainable development in Hanoi on February 27, he stressed the city's commitment to complete all social housing projects within two years.

The director also revealed that the Hanoi People's Committee is proposing a financing mechanism to help state-owned enterprises and construction groups develop social housing. The plan is to offer loans to buyers of social housing, which can later be deducted from their income, such as salaries. This mechanism is currently being drafted in accordance with the Capital Law.

Social housing prioritized over commercial housing

Delegates attend the conference. Photos: VGP

At the event, the Urban Infrastructure Development Investment Company (UDIC), a wholly state-owned enterprise under the Hanoi People's Committee, has announced its commitment to advancing social housing initiatives.

"Our main goal this year is to strengthen key business areas, including real estate investment, especially in social housing projects," said Nguyen Van Luyen, General Director of UDIC.

He also suggested that the government consider designating financially strong state-owned enterprises with experience in social housing projects for these initiatives. He noted that this approach would streamline investment procedures, accelerate project timelines, and create employment opportunities for businesses.

To this idea, a representative of the Hanoi People's Committee replied that the city has mechanisms in place to allocate certain sites for social housing to the UDIC for construction with UDIC money.  The housing will be sold to families on the city's list after the foundation is completed.

Speaking at the conference, Prime Minister Pham Minh Chinh called for a breakthrough in social housing development, stressing the need for Hanoi and other localities to assign Regarding Hanoi's ongoing construction of three concentrated social housing areas in Dong Anh District, the Prime Minister stressed that social housing should be given priority over commercial housing. He insisted that social housing must meet the same infrastructure standards, such as transportation, healthcare, education, sports, and environmental quality, as commercial housing. He noted that the government would offer support policies, including free land grants, to help low-income individuals and young people secure housing.

The Prime Minister instructed the Ministry of Construction to continue proposing and refining social housing policies by organizing conferences to discuss solutions to promote the development of social housing.

Hanoi Times