HO CHI MINH CITY ACCELERATES SOCIAL HOUSING DEVELOPMENT: OPPORTUNITIES FROM PUBLIC LAND, PLANNING REFORMS AND CREDIT POLICIES

1. Shifting from Housing Targets to Resource Mobilization

At the People Ask – Government Answers dialogue held on November 8, 2026, Ho Chi Minh City outlined several initiatives to accelerate the development of social housing and rental housing.

According to the Department of Construction, the city's social housing development target for the 2026–2030 period is 181,257 units, comprising 129,257 units for sale or lease-purchase and 52,000 rental units.

To achieve this target, the city is focusing on three key areas: expanding the land supply, improving planning procedures and increasing access to financing.

Notably, the city has reviewed 191 land plots covering approximately 600.43 hectares. Of these, 31 plots under state management account for around 69.6 hectares and have the potential to accommodate approximately 39,000 apartments. The city has submitted a report to the Ho Chi Minh City People's Committee for consideration of investor selection arrangements in accordance with applicable regulations.

This represents a noteworthy shift in approach. Rather than requiring developers to independently identify and assemble the entire land bank, the government is proactively reviewing available land resources and considering appropriate mechanisms for selecting investors.

2. Key Developments in Planning, Land Allocation and Financing

2.1. Planning: Potential to Shorten Procedures by Approximately Four Months

According to information presented at the dialogue, Ho Chi Minh City is considering adjustments to planning preparation procedures to shorten implementation timelines. Proposals under discussion include studying mechanisms for preparing detailed zoning plans at a 1/500 scale and incorporating relevant planning indicators into 1/2,000-scale zoning plans in cases where the applicable conditions are met.

These measures are expected to potentially reduce the planning preparation period by approximately four months, helping developers minimize waiting times and financing costs incurred during project preparation.

However, the scope and eligibility criteria for applying these mechanisms must be determined in accordance with specific regulations and guidance issued by the competent authorities. Adjustments to planning procedures do not exempt projects from legal requirements concerning zoning, population density or infrastructure provision.

2.2. 31 Publicly Managed Land Plots: Potential Supply of Approximately 39,000 Apartments

Among the 191 land plots reviewed, 31 publicly managed plots covering approximately 69.6 hectares are being considered for investor selection. According to information released by the city, these sites have the potential to accommodate approximately 39,000 apartments.

In addition, Ho Chi Minh City continues to study the conversion of certain underutilized industrial zones, factories and other suitable land resources to expand the social housing supply. Its long-term planning direction also includes reserving approximately 1,800 hectares of land for this purpose by 2040.

It is important to note that land that has been reviewed or included in long-term planning does not necessarily mean that all legal procedures have been completed or that the sites are ready for project development. Actual implementation will depend on zoning approvals, land-related procedures, investor selection and other relevant conditions.

2.3. Preferential Credit: Supporting Both Homebuyers and Developers

The Ho Chi Minh City Housing Development Fund currently provides loans of up to VND 900 million per application, with a maximum loan term of 20 years and an annual interest rate of 4.4%. The total amount disbursed has been reported at approximately VND 4.2 trillion, supporting more than 7,200 borrower instances.

For businesses, the existing interest-rate subsidy mechanism through the Ho Chi Minh City Finance and Investment State-owned Company (HFIC) provides interest-rate support for loans of up to VND 200 billion per project, with a maximum support period of seven years. The city is currently advising on a proposal to increase the eligible loan amount to VND 300 billion per project and extend the support period to 10 years.

This proposal remains under consideration and development and has not yet been officially promulgated as an effective policy. Businesses should therefore distinguish between the existing support mechanism and the proposed adjustments.

3. Opportunities Come with Higher Implementation Requirements

One notable aspect of Ho Chi Minh City's strategy is that it focuses not only on social housing for sale but also sets a target of developing 52,000 rental units during the 2026–2030 period.

This segment has a distinct financial structure. Housing projects for sale can generate revenue through buyers' payments according to contractual schedules, whereas rental housing projects typically require substantial upfront investment and have longer capital recovery periods. Investment performance also depends on occupancy rates, rental prices, operating expenses and the ability to manage properties after completion.

At the dialogue, businesses, including Le Thanh, also raised concerns about the need for more supportive financing, legal and policy mechanisms for rental housing development. These considerations should be taken into account when developing investment strategies for this segment.

From an implementation perspective, developers need to focus on three key areas:

• Planning and legal compliance: Carefully assess the legal status of land plots, planning indicators, population density and infrastructure capacity. Shorter planning procedures can only deliver meaningful benefits when project documentation meets the applicable requirements.

• Financing and cash flow: Develop prudent capital plans and clearly distinguish between equity, commercial loans and loans eligible for interest-rate support. For rental housing projects, financial assessments should account for occupancy rates, rental prices, operating expenses and payback periods.

• Location and actual demand: Prioritize connectivity to industrial parks, logistics hubs, metro stations and major employment centers. Lower land costs do not necessarily translate into a competitive advantage if a site has poor connectivity or is unsuitable for the affordability levels of workers.

4. Key Issues for Businesses to Monitor

Based on the announced initiatives and available data, three notable trends can be identified.

First, publicly managed land is becoming an important input in Ho Chi Minh City's social housing development strategy. Developers with strong financial capacity, legal expertise and project implementation experience should proactively study the list of 31 land plots, investor selection procedures and participation requirements. However, businesses should closely monitor the release of official information and specific procedures for each site rather than assume that the entire land bank is ready for development.

Second, rental housing is increasingly being incorporated into the city's longer-term development strategy. The target of 52,000 rental units set by the city, together with the Ho Chi Minh City Federation of Labour's initiative targeting 128,000 worker housing units, indicates that this segment needs to be approached on a larger scale. Nevertheless, the figure of 128,000 units represents a cooperation target, not the number of units already completed or approved for investment.

Third, policy effectiveness should be assessed based on actual implementation. A land plot can only become a viable investment opportunity when it meets requirements relating to legal status, planning, financing and market demand. Similarly, interest-rate support policies can only deliver meaningful benefits when developers meet the eligibility criteria for financing and the support period aligns with the project's implementation schedule.

5. Project Development Capabilities Will Determine Competitive Advantages

In the coming years, Ho Chi Minh City's social housing market may move towards a more professional development model, with participation from property developers, financial institutions and property management operators.

For real estate businesses, competitive advantages will depend not only on their ability to access land resources but also on their capacity to manage the entire investment process, from site selection, planning and legal procedures to capital mobilization, construction and operations.

Rental housing projects, in particular, require a long-term investment mindset, as project performance depends heavily on operating cash flow and the quality of property management after completion.

Conclusion,

Ho Chi Minh City's latest development initiatives are creating new opportunities for businesses involved in social housing, particularly projects utilizing publicly managed land and rental housing developments. However, these opportunities can only translate into tangible value when land-related issues, legal procedures, planning requirements, financing and actual housing demand are addressed in a coordinated manner. In the long term, project execution capabilities and sustainable property management will be among the key factors determining a company's competitive position in this market segment.