Vietnam eyes National Housing Fund to expand social housing

Hanoi, July 24 (VNA) – Vietnam’s Ministry of Construction has proposed the creation of a National Housing Fund, with initial capital of 5-10 trillion VND (200-400 million USD), aimed at boosting social housing supply for low-income groups.

Under a draft decree, the fund will operate at two levels, including a central fund managed by the ministry and local funds overseen by provincial governments. Both will have independent legal status and be allowed to manage finances through the State Treasury or commercial banks.

The central fund will receive its initial capital of 5 trillion VND from the state budget, expected to double within three years. Additional funding could come from public housing sales, land-use revenues, investment income, and voluntary contributions.

At the local level, the funds will be backed by provincial budgets and other legal sources, including land-use fees from commercial developers and proceeds from public asset sales.

The fund will be used to build, manage, or renovate affordable housing for rent. It will also convert public buildings or purchase privately developed homes. The fund may also acquire commercial housing for public sector workers.

Independent social housing projects would need to be completed within five years, or seven years if integrated with surrounding infrastructure.

Despite many support policies, Vietnam has met just 22.6% of its 2025 goal to build 100,000 social housing units. A 5.7 billion USD credit package remains largely undisbursed.

Economist Nguyen Duc Kien noted that while many state funds are ineffective, a dedicated housing fund is necessary and in line with global practices, where governments build supporting infrastructure around social housing rather than leaving it to private developers./.