Vietnam social housing: New developments and financing challenges

Vietnam is seeing significant activity in the social housing sector, though challenges remain regarding financing and supply. In Hanoi, the municipal government has allocated over 10,000 square meters of land in the Linh Dam urban area to IFT Financial Investment and Technology Security JSC. This land will be used to develop social housing for the People's Public Security forces, with a large portion of the area designated for apartment buildings exempt from land use fees.

In Bac Ninh province, the Department of Construction has announced the sale of over 1,600 social housing units across three major projects, with prices starting from approximately 15 million VND per square meter. These projects include Thong Nhat Smart City and Cat Tuong Smart City, offering various residential and commercial amenities.

Despite these developments, many low-income buyers face difficulties accessing long-term preferential loans. While the Vietnam Bank for Social Policies offers fixed interest rates around 5.4% per year for up to 25 years, limited disbursement quotas have forced some eligible buyers to seek higher-interest commercial loans to meet their housing timelines.