Hai Phong city aims to build 42,000 social housing units. (Photo: VNA)

Deputy Minister of Construction Nguyen Van Sinh highlighted that one of the ministry’s top priorities is implementing the one million affordable housing units project, as part of a comprehensive strategy aimed at alleviating the housing shortage for low- and middle-income earners.

In 2024, the country’s housing supply saw an 8.6% increase compared to 2023, marking notable progress in addressing nationwide housing challenges. Newly launched projects, particularly those focused on social housing, are expected to play a pivotal role in meeting the rising demand amid rapid urbanisation.

“The MoC is committed to resolving project obstacles and fine-tuning planning to ensure timely completion,” Sinh emphasised.

Efforts by the government and the MoC to improve living conditions and stabilise the real estate market have fostered optimism for a substantial boost in social housing supply by 2025.

Pham Thi Mien, Deputy Head of Market Research and Investment Promotion at the Vietnam Association of Realtors (VARS), predicted that social housing will be a standout sector in 2025, owing to new legal frameworks that encourage investment in the segment.

Key incentives include exemptions for developers from land pricing and land-use fees in most projects. Additionally, up to 20% of project land can be allocated for commercial service and housing developments, offering developers additional revenue opportunities.

Provincial and municipal authorities can decide whether developers must allocate land in their projects or elsewhere or pay equivalent monetary compensation.

Beyond a maximum 10% profit margin, developers can also generate income from commercial and housing areas covering up to 20% of a project’s total land, Mien noted.

Encouraged by favourable policies, many enterprises have ramped up efforts in social housing development.

The 319 Corporation under the Ministry of National Defense recently commenced work on a social housing project in Uy No Commune, Dong Anh District, Hanoi. A consortium led by Urban Infrastructure Development Investment Corporation (UDIC), alongside Hanoi Water Electric Construction JSC and Hanoi DAC House Development and Construction JSC, has initiated the NO1 Ha Dinh social housing project, which includes 440 units.

A joint venture between Viglacera Corporation and Hanoi Housing Development and Investment Corporation (Handico) plans to start the CT3 project, part of the Kim Chung New Urban Area in Dong Anh district, in early 2025.

According to VARS data, the demand for social housing between 2021 and 2025 stands at 1.24 million units, while the MoC has set a target of 428,000 units. Despite proactive efforts by the government, localities, and businesses, the progress has fallen short. In 2024, the country has yet to meet the Prime Minister’s target of completing 130,000 social housing units./.