Speaking at a workshop on research into policies for Vietnam’s social housing market, Hoang Cong Gia Khanh, rector of the University of Economics and Law under Vietnam National University, HCMC, said social housing development is a complex challenge requiring coordination among the economy, businesses and the State.

Khanh said the approach should be broadened from “social housing” to “affordable housing,” as there is currently a gap between people eligible to buy social housing and those able to afford commercial housing. They are mainly young people, workers, civil servants and middle-income families.

Social housing demand 

Associate Prof Dr Tran Thi Hong Lien cited 2024 data from the General Statistics Office (GSO) and the urbanization rate published by the Ministry of Construction to estimate that around 7.04 million households nationwide need social housing based on their financial capacity.

After accounting for income distribution and the proportion of urban households, actual demand was estimated at around 3.12 million households, corresponding to demand for about 3.12 million homes and 155.94 million sqm of floor space.

According to Lien, people’s perception of the feasibility of the approval process for social housing has an even stronger impact on their intention to buy than price does.

“It is not that they are indifferent. They face psychological barriers and feel that accessing social housing is too difficult, so they have not even started,” she said.

Lien said policies should not only be issued but also make people feel that they can actually access and use them. Communication efforts should be improved so people clearly understand their rights, eligibility requirements and chances of accessing social housing.

Regarding supply, Lien identified five groups of social housing developers: state-owned and public-service enterprises; large private real estate groups; small and medium-sized local businesses; industrial park developers; and foreign investors. However, no single group can meet the entire demand.

Lien said the biggest bottleneck for social housing lies in institutions and regulations, rather than the market. Based on research into the experience of 10 countries and territories, she proposed codifying pilot regulations into law and expanding the groups eligible for support, including civil servants and public employees facing housing difficulties.

In the long term, she proposed a three-tier housing market model: social housing for rent with State support; affordable commercial housing with prices capped according to local incomes; and commercial housing without income restrictions. She also proposed establishing a mandatory housing savings mechanism and linking VNeID with the national social housing database.

Identifying potential buyers

Dang Tien Long, MA, said the focus should shift from how many additional homes are built to clearly identifying who they are for, where they should be located, and what form they should take.

According to Long, the 2023 Housing Law has a dedicated chapter on social housing, and Resolution 201/2025/QH15 introduced new mechanisms such as a national housing fund and a shorter process for selecting investors.

Long said renting is suitable for workers who do not have plans to settle in one place over the long term, but it remains unattractive to investors because costs are concentrated in the initial stage while revenue is collected gradually over many years.

Supply also comes not only from social housing projects but from the large network of boarding rooms and rental homes provided by households.

Therefore, before projects are implemented, surveys should assess affordability, job locations and commuting distances, demand for buying versus renting, and medium-term residential plans. 

He proposed providing direct rent subsidies to eligible workers while upgrading existing rental housing to expand supply, provided the properties comply with planning requirements and ensure adequate infrastructure and safety.

From a planning and architectural perspective, Tran Thu Hang, head of the Department of Planning and Architecture under the Ministry of Construction, said social housing should be incorporated into the urban structure rather than assessed solely in terms of the number of apartments and land funds. 

She noted that some projects have been moved to suburban areas far from essential social infrastructure. She proposed developing social housing in connection with transit-oriented development (TOD), employment centers and services. 

At the same time, the State should create a clean land bank from restructured public land; land freed up after industrial park relocation; urban redevelopment; and public transport hubs. 

Phuoc Sang