Social housing in Vietnam: progress or failed plans?

Social housing in Vietnam: progress or failed plans?

The current situation in Vietnamese social housing was discussed at a workshop titled “Investing in Social Housing: New Context, New Opportunities” on May 27, 2025. Although in January 2023 the Prime Minister set an ambitious target of one million social housing units (NOXH) for low-income people by 2030, reports Vietnam.vn that only 657 projects had been implemented by mid-2025. This represents only 15.6% of the set target.

Ms. Tong Thi Hanh, director of the Department of Housing and Real Estate Market Management, pointed out several factors hindering the slow implementation. These include, among other things, inadequate implementation organization, difficulties in investing in social housing compared to the commercial sector and lengthy investment processes. In addition, access to preferential policies is more difficult, while the development of rental housing funds is lagging behind expectations.

Suggestions and solutions for social housing

One possible solution is to create a national housing fund. This fund should be financed not only from the state budget, but also from funds from private companies and individuals. Dr. Nguyen Van Khoi, chairman of the Vietnam Real Estate Association, emphasizes that many socio-economic development plans do not set specific goals for social housing. It calls for the planning of suitable areas for social housing and the conversion of commercial residential spaces into social housing.

Although the new Housing Law of 2023 contains preferential provisions, overlaps and lack of guidance lead to confusion. In order to put the ideas into action, Dr. Can Van Luc, chief economist at BIDV, for taking international fund models as a model and supporting both supply and demand in housing construction. Mr Vu Quoc Huy of Taseco Land is calling for transparent procedures and faster issuance of title certificates to ease the burden on investors and buyers.

International developments in social housing

In Germany, the federal government is pursuing an ambitious strategy in social housing and plans to provide a total of 21.65 billion euros by 2028. How BMWSB informed, this program is aimed at people with small and medium incomes and promotes the modernization of existing living space. The focus here is not only on rental apartments, but also student halls of residence and special apartments for trainees.

An example of successful social housing construction is the “Villa ganZ” project in Hanover, which offers rent-controlled living space for single parents and people living alone. The aim of these initiatives is to ensure that working people, seniors and families find adequate housing. The increasing funding for social housing in Germany, which will rise from 2 billion euros in 2022 to 3.5 billion euros annually by 2028, shows the commitment to long-term affordable housing and the creation of livable neighborhoods.