Vietnam social housing report 2023

GOVERNMENT’S POLICIES

2013 - 2016 X Credit support package of VND 30,000 billion was supplied by the Government to create favorable conditions to support the poor and low-income people to get loans to buy social housing. X Approximately 53,000 individuals and households have access to preferential credit to buy and repair houses. Thanks to this package, the solvency of the poor increased and the developers can overcome hurdles, accelerate consumption and reduce bad debt. 2018-2020 X Adding VND 3,000 billion credit package: About VND 1,000 billion for the Bank for Social Policy under Decree No. 71/2018/QH14 and an additional VND 2,000 billion for 4 commercial banks appointed by the State Bank to provide social housing loan support. X VND 3,000 billion credit package was added to provide social housing loans to support businesses and people to overcome difficult times and restore production and business activities affected by the COVID-19.

EXPECTED AMENDMENT OF SOCIAL HOUSING POLICY

1 2 3

2013 - 2023

2023 AMENDMENT

Incentives for developers: X Land use, land rent levy exemption X 50% VAT and CIT reduction X Receive support for investment in technical infrastructure inside and outside the project X Preferential loans at low interest rates X Investors can spend 20% total area within the social housing project for construction investment and commercial business

The developers of a commercial housing project of 10 ha (or 2 ha) or more in urban centers of grade 3 (or grade 1) or more are no longer required to reserve 20% of the residential land area in the project to build social housing.

The developers of a commercial housing project of 10 ha (or 2 ha) or more in urban centers of grade 3 (or grade 1) or more are required to reserve 20% of the residential land area in the project to build social housing.

The profit must not exceed 10% of total investment cost Loan interest rates must not exceed 50% of the average loan interest rates of commercial banks in the same period.

Provincial-level People’s Committees have to extract 10% of land use collected from commercial housing and urban area development projects for investment, construction of technical and social infrastructure, and traffic connection of the social housing project. The commercial developers will be no longer responsible for the implementation of social housing policies or for contributing to develop social housing.

Not regulated yet

The commercial developers will be responsible for the implementation of social housing policies or for contributing to develop social housing.

Source: Cushman & Wakefield Vietnam

2023

LAWS & REGULATIONS: 1. Housing Law 2014: Article No.55, No. 69, No.50, No.95, No.92, No.42, No.88, No.51 2. Decree No.100/2015/ND-CP on social housing development and management 3. Decree No.49/2021/ND-CP: Amending and supplementing the number of articles of Decree No. 100/2015/ND-CP dated October 20th, 2015 of the Government on the development and management of social housing 4. Draft Law Amendment 2023 5. Resolution No.33/NQ-CP on solutions to remove and promote the safe, healthy, and sustainable development of the real estate market

X On March 12, VND 120,000 billion credit package was approved implementation by Bank of Vietnam. Loan rates for builders and homebuyers will be lower than 1.5-2% of the average lending rate of banks in the market in each period. X VND 120,000 billion credit package is implemented to push for the completion of least 1 million social housing apartments by 2030 and to support developers and buyers of social housing projects with low interest loans.

Source: Cushman & Wakefield Vietnam

Source: Cushman & Wakefield Vietnam