Chairman of the Hanoi People’s Committee Vu Dai Thang chaired a meeting on May 27 to review the implementation of central government directives regarding the progress of social housing and rental housing projects.

Permanent Vice Chairman Duong Duc Tuan said one of the biggest barriers at present is the deeply rooted preference among Vietnamese people for home ownership. International trends, however, are gradually moving toward rental housing models that better match income levels and different stages of life.

Citing Singapore’s success with professionally managed large-scale rental housing funds, Tuan emphasized the importance of ensuring stable accommodation for residents while increasing flexibility in the urban real estate market.

According to him, Vietnam’s legal framework still needs further adjustments to clearly classify operational mechanisms for different housing segments. Rental housing in particular lacks a comprehensive legal framework.

He said the early completion of legal mechanisms and diversification of investment models would help establish large-scale housing funds capable of meeting the real needs of middle- and low-income groups, workers, students and urban laborers.

Shift from property accumulation to real housing needs

Vu Dai Thang said that while Hanoi has accelerated the development of social housing for low-income earners, workers, teachers and doctors in recent years, the rental housing segment has not received adequate attention.

Referring to a May 25 working session between Prime Minister Le Minh Hung and Hanoi authorities, the chairman described the initiative as an important transformation from the mindset of asset accumulation to ensuring practical housing needs for residents.

He said the capital has sufficient political support, legal grounds and organizational conditions to implement the model.

“Hanoi is committed to simplifying procedures to the greatest extent possible and prioritizing faster approvals so rental housing projects can be launched soon,” Thang said.

The city has set a target of launching a pilot rental housing project in June as a model for wider replication.

The chairman instructed departments and agencies to urgently review and develop attractive policy mechanisms capable of encouraging experienced businesses to proactively register and propose projects.

Hanoi is also considering increasing the proportion of rental social housing in projects from the previous level of around 20% to between 20% and 30%, depending on each development.

City reviews land funds and investment mechanisms

The Department of Construction said it has proposed adding support mechanisms and investment policies for rental housing to a draft resolution of the Hanoi People’s Council under the 2026 Capital Law.

Meanwhile, the Department of Planning and Architecture has been tasked with reviewing and proposing suitable land funds, prioritizing areas with convenient public transport access and locations near industrial parks, high-tech zones or concentrated labor hubs.

The Department of Finance will select investors under special mechanisms, while the Department of Agriculture and Environment will coordinate reviews of eligible public land reserves.

The Department of Construction will support procedures related to design approvals and construction permits, while local wards and communes have been assigned to coordinate land reviews and site clearance efforts to ensure project timelines are met.

Notably, for socialized investment projects, the chairman agreed to review several cleared land areas with suitable planning in order to convert them into urban developments that include rental housing.

Seven social housing projects to begin construction in June

Alongside rental housing plans, the meeting also reviewed the progress of 90 ongoing social housing projects comprising around 80,800 apartments.

This year, Hanoi plans to begin construction on 41 social housing projects totaling approximately 27,426 apartments.

So far, 13 projects with around 11,124 units have already broken ground. In June alone, construction is expected to begin on seven additional projects with roughly 6,353 apartments.

Thanh Hue