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posted 10 months ago
On 29 May 2025, the National Assembly officially passed Resolution No. 201/2025/NQ-QH15 (the “Resolution“), which provides specific mechanisms and policies for the development of social housing. This resolution opens up significant opportunities for employees and promotes the use of social resources in the construction of affordable housing. The Resolution will take effect for five (5) years starting from 1 June 2025 and is expected to address the urgent housing needs of low-income individuals.
The Resolution is based on several key legal documents, including Resolution No. 06-NQ/TW (24 January 2022), Directive No. 34-CT/TW (24 May 2024), the Law on Housing 2023, and the Law on Promulgation of Legal Documents 2025.
Despite progress, the country has only completed approximately 15.6%[1] of the target to build one million social housing units by 2025. The urgency of implementing this resolution is evident. The Resolution introduces eight (8) key policies aimed at accelerating the development of social housing across the nation, with some of the most notable changes outlined below:
The Resolution establishes the National Housing Fund, a broader term than the previously proposed “National Social Housing Development Fund.” This change reflects the need to support both social housing and affordable commercial housing, aligning with the rapid urbanization and diverse housing needs of low-income populations. This flexible approach ensures that the fund can adapt to evolving housing needs and avoids misinterpretation of its scope.
A key breakthrough in the Resolution is the exemption from bidding procedures for selecting investors for social housing projects. For projects that have not yet received approval for investment policies or have already been approved, the competent state agency can directly assign developers without bidding. In cases where investment policies have been issued, developers may still be chosen without bidding, except for projects with unresolved bids. The process aims to simplify procedures, accelerate project timelines, and reduce costs for developers.
The developer selected must meet the legal criteria for real estate business organizations, and if multiple developers express interest, priority will be given to those with experience in housing construction projects, strong financial capacity, and other criteria set by the government[2].
The Resolution allows developers of social housing to set their own selling and lease-purchase prices based on legal price-determination methods and standard profits for social housing. Developers are required to hire qualified consultants to appraise prices before approval. After project completion, an audit will ensure the final prices match the contractual terms. If the final price is lower than the contract, the developer must refund the difference; if higher, the developer cannot collect more than agreed.
This post-acceptance audit mechanism encourages greater initiative from developers, reduces administrative burdens, and promotes transparency in price-setting.
The Resolution expands the scope of beneficiaries, especially for employees whose workplaces are located far from their current homes. These employees are eligible to buy or lease-purchase social housing even if they do not own a home or their current residence is far from work. Local authorities are tasked with issuing specific regulations to ensure the policy is applied transparently and without exploitation[3].
Article 10 of the Resolution outlines the right of enterprises (including state agencies and public service units) to rent social housing or workers’ accommodation in industrial parks for employees, including foreign workers. However, manufacturing enterprises in industrial parks are restricted to renting worker accommodation within the park, not outside it.
This policy aims to support the accommodation needs of workers in industrial zones but does not extend to broader social housing options outside these zones. Although the Ho Chi Minh City Real Estate Association (HOREA) had proposed expanding this scope, the suggestion was not adopted.
Furthermore, the Resolution allows enterprises to account for the cost of renting social housing as a business expense, although state budget funds cannot be used to cover these rents.
The passing of the Resolution represents a major step forward in Vietnam’s approach to social housing development. It lays a clear legal framework to address the housing needs of millions of employees and low-income earners. With its emphasis on flexibility, transparency, and efficiency, the Resolution aims to increase the quality of life for employees and enhance investment opportunities in industrial parks. This marks an important foundation for the future of social housing development in Vietnam, ensuring a sustainable and effective model for addressing housing challenges across the nation.
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[1] Section I.2 on the practical basis and necessity of the Draft Submission of the Ministry of Construction on the proposal to develop a Resolution of the National Assembly on piloting a number of specific mechanisms and policies for social housing development
[2] Article 5 of Resolution
[3] Article 9 of Resolution
posted 5 months ago
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