At the Vietnam Real Estate Forum 2026 on June 2, the development of rental housing attracted significant attention from policymakers, experts and businesses.

Vu Sy Kien, deputy director general of the Land Administration Department under the Ministry of Agriculture and Environment, said one of the major bottlenecks is that Vietnam has yet to clearly define the role, scale and actual demand for rental housing within the broader housing market.

He said a nationwide review and assessment of rental housing demand should be conducted as soon as possible. This would help local authorities proactively allocate land, prepare planning schemes and develop appropriate policies.

Economist Le Xuan Nghia identified access to capital as one of the biggest obstacles.

According to Nghia, rental housing is not a new concept globally. In many European countries, it has been an important component of the housing market for hundreds of years. 

However, rental housing requires long-term financing, while commercial banks mainly mobilize short- and medium-term funds, making it difficult to support such projects.

"If we want to build a solid rental housing foundation over the next 10 years, we need to rely on public investment and government resources rather than expecting preferential credit packages alone to do the job," he said.

He pointed out that the VND145 trillion credit package for social housing development has so far disbursed only around 2 percent. It is difficult for developers to access loans at an interest rate of 6.1 percent when banks' funding costs currently stand at 7-8 percent.

According to Nghia, government bonds are the most suitable source of financing for rental housing because they can mobilize long-term capital over roughly 20 years at interest rates of only 3-4 percent.

Beyond financing, he also emphasized governance. Drawing on observations from countries such as Finland, he noted that the common model is for the state to provide land, planning and financing, while professional organizations are responsible for management and operations.

"Vietnam should follow a similar approach, with the state preparing land, resources and planning, while the private sector takes part in construction and operations to ensure professionalism," he said.

Cultural barriers

Doan Van Binh, Founder and Chair of CEO Group, said one of the biggest barriers to the rental housing market is Vietnamese society's preference for owning a home. Renting is often associated with instability, a lack of success or even a failure to provide adequately for future generations.

Beyond cultural factors, the market also faces significant cost pressures.

First, land-use fees account for an increasingly large share of total project costs. In addition, rental housing requires long-term capital at low interest rates. While rental yields typically range from only 2-4 percent per year, borrowing costs are currently around 10-12 percent, making the business model financially unattractive.

Construction costs are another major challenge. According to Binh, building material prices rose about 30 percent in 2025 and increased by another 10 percent in the first quarter of 2026, contributing to higher real estate prices.

Notably, Vietnam's rental market remains largely fragmented, dominated by boarding houses, small-scale rental properties and mini apartment buildings with inconsistent service and safety standards.

Binh said the emerging global trend is Serviced Living, a housing model that combines accommodation with services, where the core value extends beyond shelter to include living experiences, services and community connections.

Associate Professor Nguyen Quang Tuyen said the 2023 Law on Real Estate Business should be supplemented with provisions governing rental agreements between developers and tenants.

He argued that the Civil Code currently provides only a general legal framework and is insufficient to regulate the unique situations that arise in residential leasing.

Therefore, regulations should clearly define the rights and obligations of developers and tenants, and mechanisms for handling violations and procedures for resolving issues when lease agreements expire.

Deputy Minister of Construction Nguyen Van Sinh urged local authorities to quickly conduct surveys of rental housing demand across different population groups.

Based on these assessments, local governments should review planning schemes, allocate suitable land funds and develop technical and social infrastructure to support rental housing projects, particularly in industrial parks and densely populated areas.

Hong Khanh