Vietnam social housing report 2023

MARKET LANDSCAPE

KEY FACTORS IMPACT SOCIAL HOUSING

Vietnam’s government has taken initiatives to reach the social housing 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, both the completed and pipeline supply will only meet about 20 – 30% of the total demand.

There are two common structures of social housing in Vietnam: apartments or houses attached to the land. For apartments, there will be three types of total area corresponding to the number of bedrooms, in which, 1-bedroom apartments fall around 46 m2, 2- and 3-bedroom apartments can be as large as as 46-51-57-69. m2. For the landed house, they typically come in from 1 to 3 floors and the land area is about 50 to 75 m2. Social housing is classified as a priority real estate group, therefore, not all people can buy and own social housing. Specifically, social housing is geared towards lower-income households to ensure social security, workers in industrial zones and groups of people with meritorious services in wartimes. The majority of social housing projects are developed by domestic developers. A few examples are HUD Vietnam, BIC Vietnam and Him Lam in the Northern region. The Central region has Xuan Phu Hai, Saigon Invest Group and Vicoland; And the South has Nam Long, Hoang Quan and Sacomreal and many other investors.

PROVINCES WITH THE HIGHEST SOCIAL HOUSING TARGET BY 2030 PROVINCES/ CITY TOTAL DEMAND (UNITS) TARGET 2030 (CĂN) HCMC 345,388 69,750 Binh Duong 115,836 86,877 Long An 310,000 71,250 Binh Phuoc 84,489 44,243 Ha Noi 136,000 56,250 Bac Ninh 128,327 72,185 Bac Giang 99,928 74,946 Hung Yen 56,700 42,525 Nghe An 77,750 39,895 Hai Phong 52,700 33,476

LEGAL & POLICY FRAMEWORK

PUBLIC-PRIVATE PARTNERSHIPS

INVESTMENT & FINANCING

TECHNOLOGICAL ADVANCEMENTS

INFRASTRUCTURE AND COMMUNITY FACILITIES

SUSTAINABILITY

Source: The Ministry of Construction (MOC), Vietnam Disclaimer: The data above are estimated based on the actual situation of published social housing projects.​

DESIGN & CONSTRUCTION EFFICIENCY

This only includes projects that have announced the number of total units.

FIGURE 1:

OVERVIEW OF SOCIAL HOUSING MARKET 2023

Source: The Ministry of Construction (MOC), Vietnam

Disclaimer: The presented statistic are based on the best available data collected from MOC and is for reference purposes only.