PRIME MINISTER DIRECTS FIVE LOCALITIES TO BREAK GROUND ON RENTAL HOUSING PROJECTS IN JUNE.

June 2026 marks a significant milestone in Vietnam’s housing policy as the Government places greater emphasis on rental housing development to meet the growing accommodation needs of workers in key industrial hubs.

At a working session with leaders of Hai Phong, Quang Ninh, Bac Ninh, Ninh Binh, and Hung Yen on the development of rental housing in line with directives from General Secretary and President To Lam, Prime Minister Le Minh Hung instructed each locality to strive to commence at least one rental housing project in June 2026, while preparing larger-scale projects for implementation later this year.

Strong Demand Amid Limited Supply

Northern Vietnam’s key economic region is among the country’s fastest-growing industrial and urban centers. The rapid concentration of industrial activities and labor forces has created substantial demand for affordable and long-term rental housing.

In Hai Phong alone, more than 370,000 workers are employed in industrial parks. The city estimates that approximately 33,000 social housing and rental housing units will be needed between 2026 and 2030. However, current supply remains limited, with many workers relying on privately built boarding houses that often face challenges related to safety standards, fire prevention, sanitation, and overall living conditions.

According to the Government, the shortage of quality rental housing has become a major bottleneck affecting urban development and labor attraction in key industrial localities.

Shifting the Housing Development Mindset

Prime Minister Le Minh Hung emphasized that rental housing development is a major policy direction of the Party and the State. He called for a fundamental shift in housing development strategy—from focusing primarily on homes for sale to simultaneously promoting both commercial housing and rental housing.

Under this approach, the State will play a facilitating role through policies, planning frameworks, and financial instruments, ensuring that individuals who are not yet able to purchase homes can still access long-term rental housing at reasonable costs.

The Government also views public resources as a catalyst for attracting private-sector participation. Effective utilization of the National Housing Fund, local housing funds, and long-term financing mechanisms is expected to help establish a more professional and sustainable rental housing market.

Accelerating Pilot Projects

To translate these objectives into action, the Prime Minister instructed the five localities to conduct comprehensive assessments of rental housing demand and develop rental housing plans through 2030. These plans should include specific annual targets, priority project lists, funding sources, and implementation roadmaps.

Local authorities have also been tasked with proposing policy mechanisms to address barriers related to capital, land resources, and investment procedures. These recommendations will serve as an important basis for refining the legal framework during the upcoming revisions of the Housing Law and the Real Estate Business Law.

In parallel, the Ministry of Construction has been directed to promptly issue national technical standards for small- and medium-scale rental housing developments, including mini-apartment buildings. The ministry is also reviewing mechanisms that would allow enterprises to acquire commercial housing or social housing projects for rental purposes.

On the financing side, the Ministry of Finance and the State Bank of Vietnam will work together to develop stronger tax and credit incentives aimed at attracting long-term investment capital into the rental housing sector.

The requirement for five localities to simultaneously launch rental housing projects this June is expected not only to address the urgent housing needs of workers but also to serve as a pilot model for large-scale rental housing development, paving the way for broader implementation across the country in the coming years.