Ho Chi Minh City proposes land‑fee waivers and ultra‑low‑interest loans to boost rental housing

The Construction Department of Ho Chi Minh City has submitted a set of proposals to the Ministry of Construction and the central government aimed at accelerating the development of rental housing. Key measures include waiving or reducing land‑use fees, land‑lease fees, value‑added tax and corporate income tax for the duration of lease contracts, and fast‑tracking project approval by classifying social‑rental and rental‑housing projects as urgent.

The department also recommends a dedicated credit package with interest rates of 3‑4 % per year for loans lasting 15‑20 years, with a three‑year grace period. The state would subsidise 70‑80 % of commercial loan interest during the first ten years of operation. These incentives target social rental housing, worker dormitories and commercial rental units, responding to the city’s inventory of 72,581 rental units—including roughly 10,000 social rental houses and 2,100 worker dorms—and the need to establish a larger rental‑housing fund.