Vietnam social housing report 2023

A HOME

INTRODUCTION

By the end of 2023, Vietnamwill reach 100 million people, making it the 3rd most populous in the ASEAN region, after Indonesia and the Philippines and 15th in the world. Meanwhile, the country’s urbanization ratio increased from 20% in 1993 to more than double in 2022 with 41.7%. Such rapid urbanization can promote economic growth, but also widen the wealth gap. The housing price in Vietnam is now about 20 times higher than the average annual income per capita, making it increasingly difficult for a Vietnamese to achieve homeownership. This situation raises a need for balancing measures, particularly the development of more social housing(*) as an instrument for the insurance of social security and the promotion of sustainability for the real estate market. Consequently, Vietnam’s government has taken initiatives to realize this target and help people improve their living quality through allocating resources to build 1 million social housing units for factory workers; a US$5 billion credit package for the development of social housing projects and workers’ housing projects; amendment of the Housing Law 2014 to add more open policies and attractive incentives; and other related policies to promote social housing development. Up until the beginning of 2023, Vietnam had completed 301 social housing projects in urban areas and workers’ housing projects in industrial zones, with a total scale of nearly 156,000 units. About 401 projects are prepared to be built, with a total scale of about 454,000 units. However, this still cannot fully satisfy demand for this type of housing, according to the survey by MOC, which states that the demand for social housing for low-income workers in industrial zones is about 2.4 million units for the 2021 – 2030 period. Specifically, if the existing completed supply and future supply are taken into account, the market will still be short of more than 1 million units, equivalent to 51% of the total demand. To keep you informed with the most recent developments, and explore potential opportunities in this under-supplied sector, Cushman &Wakefield hereby presented our new research publication: A HOME FOR ALL. We hope that this publication will put you, our Valued Clients, and Readers at the center of What’s Next in the Vietnam real estate market.

TABLE OF CONTENTS

01 Market Landscape 02 Regional Case Studies 03 Laws & Regulations

DISCLAIMER

The information provided by Cushman & Wakefield in the draft 2023 amendment is for reference purposes only. Our company makes no warranty regarding the accuracy, adequacy, or validity of any information in the 2023 draft amendment since the 2023 amendment is formatted as a Draft and has not been officially approved by the Government. All statements below are hypothetical and ineffective until such draft documents are approved. Therefore, policies and opinions could change at any time without any notice. The two terms “public housing” and “social housing” are going to be used interchangeably. FORALL

Trang Bui Country Head of Vietnam bui.trang@cushwake.com