Deputy Director Ha Quang Hung first explained the significance of establishing a National Housing Fund given the current circumstances. Despite considerable efforts, the implementation progress of the project aiming for the “Investment and construction of at least 1 million social housing units for low-income earners and industrial park workers in the 2021-2030 period” has fallen short of expectations.
According to reports from various localities, from 2021 to March 2025, only 66,755 units have been completed nationwide, representing approximately 15.6 percent of the project’s target for 2025. A critical factor contributing to the constrained supply of social housing is the insufficiency of financial resources to support localities and businesses in rolling out social housing projects sustainably over the long term.
In the recent past, some local housing development funds have become operational, with HCMC’s fund, in particular, demonstrating considerable effectiveness. However, these funds universally grapple with challenges stemming from a lack of supplementary capital injections from the state budget. Meanwhile, other off-budget state financial funds have not prioritized assistance for social housing. Consequently, businesses have largely been left to secure funding independently.
This situation does not fully reflect the State’s intended role as outlined in the National Housing Development Strategy. Therefore, establishing a National Housing Fund is deemed essential. It would help address current impediments, create a stable and sustainable capital stream for social housing development, ensure social security, and ultimately enable people to secure stable housing.
The Deputy Director then elaborated on how the proposed Fund is expected to function. The Ministry of Construction is proposing to the Government, for subsequent submission to the National Assembly, the establishment of the National Housing Fund. This is conceived as an off-budget state financial instrument, operational at both central and local tiers.
The Fund’s capitalization will derive from state budget allocations, voluntary contributions, donations from domestic and foreign organizations and individuals, contributions equivalent to the value of land plots already equipped with technical infrastructure for social housing (as stipulated by housing legislation), revenue from the disposal of state-owned residential assets, and other legitimately mobilized funds.
The primary functions of the Fund will be to invest in construction, develop the social housing inventory, and provide residential units for lease-purchase or rental to officials, civil servants, public sector employees, and the wider workforce.
The proposal to establish the National Housing Fund has secured in-principle approval from relevant authorities. However, for the Fund to operate effectively, achieve its objectives, and guarantee operational integrity – precluding vulnerabilities, financial leakage, or inefficiency – meticulous and specific regulatory frameworks must be developed and instituted.
This includes robust mechanisms for consistent reporting and oversight of the Fund’s activities. The details of this mandate will be delineated in a Government decree, following the National Assembly’s ratification of the resolution. In the period ahead, the Ministry of Construction will continue its collaboration with the Ministry of Finance and other pertinent agencies to refine the draft decree before presenting it to the Government for deliberation and promulgation.
Beyond the proposed National Housing Fund, there are also notable elements that these special mechanisms and policies for social housing development encompass. As it stands, the development pathway for social housing projects largely mirrors that of commercial ventures, which often results in extended project timelines, thereby impeding the attainment of the target to complete at least 1 million social housing units by 2030.
Consequently, this time, alongside the National Housing Fund proposal, the Government also suggests piloting several policies. These include, for instance, green-lighting investment policies while concurrently allocating social housing construction projects (not reliant on public investment capital) to investors without a formal bidding process.
Simultaneously, certain procedural steps will be expedited during the formulation, appraisal, and approval of detailed plans for social housing investment projects, as well as for construction investment procedures and the determination of sale and lease-purchase prices for social housing.
Notably, specific policies will be enacted concerning eligibility criteria for social housing assistance; provisions for enterprises, cooperatives, state administrative bodies, and public non-business units to lease social housing; and matters of compensation, support, resettlement, investment in technical infrastructure, and the allocation of land reserves for social housing initiatives.
These innovative mechanisms and policies are anticipated to significantly expedite the rollout of social housing projects in localities in the near future.
