Ministry of Construction proposes amendments to the Housing Law (amendment)

The Ministry of Construction has proposed revisions to the Housing Law aimed at removing obstacles, increasing decentralization to local authorities, and improving the effectiveness of housing market management.

In its policy briefing, the Ministry said the Housing Law 2023—approved by the National Assembly on November 27, 2023, and effective from August 1, 2024—has supported housing development, ensured openness and transparency, and aligned coherently with related laws on investment and land, as well as planning.

However, the Ministry noted that socio-economic development and new requirements from the Party and the State have created additional demands. These include reorganizing administrative boundaries, reorganizing the state administrative apparatus to implement a two-tier local government model, and revising related legal texts in the housing sector—necessitating amendments to the Law.

Revision of housing owners’ rights and responsibilities for public assets

Under the proposed ownership policy, the Ministry plans to revise provisions on the responsibilities and powers of representatives of housing owners for public assets, with a focus on decentralization and delegation of certain powers to fit the two-tier government model. The proposal would empower provincial People’s Committees to authorize district-level People’s Committees to represent owners of housing in public assets.

The Ministry also proposes reviewing and amending rules on the number of housing units foreign organizations and individuals may own in Vietnam. It would clarify the quantity owned in a given area to better reflect actual conditions. In addition, the Ministry plans to review and amend the rights and obligations of foreign organizations and individuals who own housing, including clarifying the rights and obligations of foreign individuals who marry Vietnamese citizens and live abroad.

The Ministry said the objective of these proposals is to strengthen management and improve the efficiency of housing assets that are public assets, while removing practical difficulties related to foreign ownership when implementing mergers or changes in administrative boundaries.

Housing development policy: formalization, decentralization, and redevelopment

On housing development policy, the Ministry said amendments are needed to formalize Party and State policy, align with the two-tier local government model, remove practical difficulties in developing different housing forms, and promote redevelopment and reconstruction of condominiums.

Commercial housing development

For commercial housing development, the Ministry expects to clarify the development form by specifying that housing infrastructure investment projects can be transferred to end-users, ensuring compatibility with land laws.

For housing forms intended for habitation—such as serviced apartments and office-cum-residences—the Ministry said new provisions would be added to address difficulties in developing these housing types and to meet practical needs.

Renovation and rebuilding of apartment buildings

For renovation and rebuilding of apartment buildings, the Ministry said it would add a Build-Transfer (BT) arrangement in line with the PPP law. It would also revise and clarify incentive mechanisms for projects, including clarifying incentives for the portion of space allocated for commercial use. In addition, the Ministry proposes revising regulations on decision-making and approval of investment policy to simplify administrative procedures by not requiring an investment policy decision.

Legalizing pilot policies and clarifying social housing support

The Ministry also proposed legalizing social housing policy by codifying policies already defined in Parliament’s pilot resolution and Government resolutions.

The proposed amendments would focus on clarifying:

• beneficiaries of the housing support policy;
• conditions for eligibility; and
• methods of implementing the support policy.

It would also clarify principles for implementing social housing support policies, the housing fund, assigning developers and granting investment policy approvals while exempting social housing and army housing projects from public investment, determining sale prices and affordable rent-to-own prices for social housing, the types and standards of social housing, and recipients of worker housing in industrial zones.

The Ministry said that if current regulations are retained, they would not adequately institutionalize the Party and State’s policy to promptly amend regulations to remove obstacles for businesses investing in social housing and to ensure social welfare for citizens.

Financial policy adjustments to improve enterprise access to capital

The Ministry said it also targets adjustments to the financial policy for housing development to facilitate enterprise access to capital and boost supply.

Specifically, the proposed amendments focus on clarifying conditions for mobilizing capital for housing development, including capital mobilization for projects where land is allocated in parcels, and development capital for various housing types to ensure flexibility.