Vietnam considers State buybacks of stalled housing projects

Vietnam is exploring mechanisms to allow the State to repurchase commercial housing projects that are no longer viable for implementation or cannot be transferred. This initiative, outlined in Resolution 21-NQ/TW, aims to prevent the waste of land resources and expand the state-owned housing fund to meet public demand.

Experts suggest that acquiring stagnant projects could serve as a dual solution: unblocking frozen assets that act as a burden on developers and banks, while simultaneously increasing the supply of social or rental housing. Many stalled projects occupy locations with existing infrastructure and good transport connectivity, making them prime candidates for repurposing.

Regarding social housing, new regulations address the purchase of rental units. Under Decree 54/2026/NĐ-CP, developers may be prioritized to sell social housing to current tenants before a 10-year period if certain conditions are met, or they may sell the units back to the National Housing Fund. The pricing formula for such sales includes the appraised rental value plus the average annual interest rate of state-owned commercial banks, minus the housing's depreciation.