Vietnam proposes new compensation options for old apartment renovations

The Vietnamese Government has proposed amendments to the draft Housing Law to facilitate the renovation and reconstruction of old apartment buildings. To address existing bottlenecks, the proposal suggests expanding compensation and support options for homeowners. Beyond receiving resettlement housing or cash, owners could be offered social housing or land use rights equivalent to the value of resettlement housing.

Data from the Ministry of Construction indicates a significant need for such measures, noting approximately 2,930 old apartment buildings nationwide as of November 2025. Major concentrations are located in Hanoi, Ho Chi Minh City, and Hai Phong. While the 2023 Housing Law established a legal framework, challenges remain regarding complex investment approval procedures and the need for policy alignment across land and construction laws.

Additionally, the Ho Chi Minh City Real Estate Association (HoREA) has submitted recommendations to the draft law to address supply shortages. HoREA suggests introducing policies for “affordable commercial housing” to serve middle- and low-income groups who do not qualify for social housing but cannot afford high-end segments. They also proposed management and incentive policies for long-term rental housing to help balance market supply and demand.