REGULATIONS REGARDING SOCIAL HOUSING’S DEVELOPMENT AND MANAGEMENT 2025

REGULATIONS REGARDING SOCIAL HOUSING’S DEVELOPMENT AND MANAGEMENT 2025

REGULATIONS REGARDING SOCIAL HOUSING’S DEVELOPMENT AND MANAGEMENT 2025

REGULATIONS REGARDING SOCIAL HOUSING’S DEVELOPMENT AND MANAGEMENT

The 2023 Law on Housing

Decree No. 100/2024/ND-CP

Circular No. 05/2024/TT-BXD

THE MINISTRY OF CONSTRUCTION

MAIN CONTENTS

I.SUBJECTS, FORMS, AND CONDITIONS FOR SOCIAL HOUSING POLICIES

II. STAGES OF INVESTMENT PROJECTS FOR SOCIAL HOUSING AND HOUSING FOR THE PEOPLE’S ARMED FORCES

III. ABOUT SOCIAL HOUSING

IV. ABOUT WORKER ACCOMMODATION IN INDUSTRIAL ZONES

V. ABOUT HOUSING FOR THE PEOPLE’S ARMED FORCES

VI. RESPONSIBILITIES OF MINISTRIES, SECTORS, AND LOCALITIES

VII. IMPLEMENTATION PROVISIONS

 

I. SUBJECTS, FORMS, AND CONDITIONS FOR SOCIAL HOUSING POLICIES

  1. Subjects eligible for social housing support policies (Article 76 of the Law on Housing):

a) People with meritorious services to the revolution (12 categories according to the ordinance on preferential treatment of people with meritorious services);

b) Poor and near-poor households in rural areas;

c) Poor and near-poor households in rural areas affected by natural disasters and climate change;

d) Poor and near-poor households in urban areas;

e) Low-income people in urban areas;

f) Workers and laborers working inside and outside industrial zones;

g) People’s armed forces;

h) Officials, public servants, and employees;

i) Individuals who have returned official residences;

j) Households and individuals whose land has been reclaimed without compensation from the State;

k) Students;

i) Enterprises, cooperatives, and cooperative unions in industrial zones.

 

  1. Forms of implementing social housing support policies (Article 77 of the Law on Housing):

a) Sale, lease-purchase, and lease of social housing;

b) Support through national target programs and public investment programs on housing;

c) Support through housing donations; exemption and reduction of land use fees for housing construction;

d) Providing preferential loans from the State (Social Policy Bank, credit institutions);

e) Sale, lease-purchase, and lease of housing for the people’s armed forces;

f) Leasing worker accommodation in industrial zones.

Provincial People’s Committees may stipulate the sale, lease-purchase, and lease of social housing for poor and near-poor households in rural areas and areas affected by natural disasters.

 

  1. Conditions for Social Housing Policies

 

  1. For purchasing, renting, or lease-purchasing social housing: No residency condition.
  2. For purchasing or lease-purchasing social housing: Conditions related to housing and income.
  3. For renting social housing: No conditions related to housing and income.

 

3.1. Housing Conditions (Clause 1, Article 78 of the Law on Housing; Article 29 of Decree No. 100/2024/ND-CP)

– No owned housing: The applicant and their spouse (if any) do not have their names on the Certificate of Land Use Rights, Ownership of Housing, and Assets Attached to Land in the province or city under central authority where the social housing project is located at the time of application.

– Existing housing with an average area of <15 m² per person: Including the applicant, spouse, parents, and children (if any) registered as permanent residents at that house.

 

3.2. Income Conditions (Clause 1, Article 78 of the Law on Housing; Article 30 of Decree No. 100/2024/ND-CP)

  1. People with meritorious services to the revolution (Clause 1, Article 76):No income condition.
  2. Poor and near-poor households (Clauses 2, 3, 4, Article 76): According to the Government’s poverty standards.
  3. Low-income individuals, workers, officials (Clauses 5, 6, 8, Article 76):

– Single individuals: Monthly income less than or equal to 15 million VND.

– Married couples: Combined monthly income of both spouses less than or equal to 30 million VND.

– Income is verified based on the salary and wage statement confirmed by the agency, unit, or enterprise. For low-income individuals without a labor contract (Clause 5, Article 76), the commune-level People’s Committee verifies the income.

  1. People’s armed forces (Clause 7, Article 76 of the Law on Housing):

– Single individuals: Monthly income less than or equal to the total income of a colonel.

– Married couples:

– Both spouses in the armed forces: Monthly income less than or equal to twice the total income of a colonel.

– Spouse not in the armed forces: Monthly income less than or equal to 1.5 times the total income of a colonel.

– The agency or unit where the armed forces personnel work verifies their income; for the spouse, the relevant agency, unit, enterprise, or locality verifies the income.

II. Stages of Investment Projects for Social Housing and Housing for the People’s Armed Forces

  1. Project Preparation Stage
  2. Project Implementation Stage
  3. Project Completion Stage

 

  1. Project Preparation Stage (Articles 4, 5, 6, 7, 8, 9 of Decree 100/2024/ND-CP):

(1) Project Investment Proposal for Decision or Approval of Investment Policy:

– Follow the provisions of Article 13 of Decree No. 95/2024/ND-CP.

(2) Construction Planning for Project Implementation:

– Construction planning follows urban planning laws;

– Land with technical infrastructure in commercial housing projects for social housing construction is determined according to the 1/500 detailed plan of the commercial housing project;

– Planning requirements when bidding for projects: Having a 1/2000 subdivision plan or a 1/500 detailed plan.

(3) Decision, Approval, Adjustment of Investment Policy:

– Follow public investment law, investment law; trade union financial resources apply according to public investment law;

– Appraisal opinions from the housing management agency according to investment laws and contents:

+ Preliminary total investment cost; type of house and housing area standards; support mechanisms and policies.

+ For concurrent approval of investment policy and investor, additional opinions on meeting the conditions for being a project investor according to various laws.

+ People’s armed forces projects require opinions from the Ministry of Defense and Ministry of Public Security on project requirements and other contents (if any).

(4) Project Investor:

– Projects using public investment capital, trade union financial resources: Determine investors according to construction law, public investment law;

– Projects using non-public state capital: Follow Clause 2, Article 7 of the Construction Law;

– Projects using private capital:

+ Approve investor if only one investor is interested;

+ Bid if there are two or more interested investors;

+ Approve investment policy concurrently with investor approval if the investor has land use rights;

+ For 20% land fund in commercial housing projects, assign the commercial housing project investor.

(5) Land Allocation, Leasing, Change of Land Use Purpose for Project Implementation:

– Follow land law for land allocation, leasing, and land use purpose change;

– Investors are exempt from land use fees and land lease fees for the entire project; no need to follow procedures for determining land prices, calculating land use fees, land lease fees, or requesting exemptions;

– If the investor constructs commercial housing within a social housing project, determine land prices, calculate payable land use fees according to land law.

(6) Other Contents (infrastructure connection, environment, fire prevention and fighting, 1/500 detailed planning approval, etc.) according to relevant laws.

 

  1. Project Implementation Stage for Social Housing and Housing for the People’s Armed Forces (Articles 11, 12, 13, 14 of Decree 100/2015/NĐ-CP):

(1) Preparation, Appraisal, and Approval of Design: As prescribed in Article 20 of Decree 95/2024/NĐ-CP;

(2) Issuance of Construction Permit: As prescribed in Article 21 of Decree 95/2024/NĐ-CP;

(3) Construction and Business of Future Houses:

– After starting construction, the project investor must provide project-related information as stipulated in Point a, Clause 1, Article 38 of Decree 100/2024/NĐ-CP;

– The investor prepares and submits the sales and lease-purchase prices for social housing and housing for the armed forces to the competent agency of the provincial People’s Committee for appraisal;

– The investor must fulfill financial obligations regarding land as specified in Clause 2, Article 23 of Decree 100/2024/NĐ-CP before commercial housing products are put into business (if any).

(4) Acceptance and Completion of Construction: As prescribed in Article 23 of Decree 95/2024/NĐ-CP.

  1. Project Completion Stage for Social Housing and Housing for the People’s Armed Forces (Articles 15, 16 of Decree 100/2024/NĐ-CP):

(1) Project Completion: As prescribed in Article 24 of Decree 95/2024/NĐ-CP;

(2) Handover of Housing: As stipulated in Clauses 3 and 4, Article 37 of the Law on Housing, and Article 25 of Decree 95/2024/NĐ-CP.

 

III. Implementation of Social Housing Policies Through Projects

  1. Forms of Social Housing Development
  2. Types of Projects and Requirements for Social Housing Investment Projects
  3. Types and Area Standards of Social Housing
  4. Land for Social Housing Development
  5. Social Housing Investors
  6. Incentives for Social Housing Project Investors
  7. Sales Price, Lease-Purchase Price, Rental Price of Social Housing
  8. Procedures for Appraisal of Sales Price, Lease-Purchase Price, Rental Price of Social Housing
  9. Procedures for Sale, Lease-Purchase, and Rental of Social Housing
  10. Preferential Loans for Purchasing, Lease-Purchasing Social Housing; Construction or Renovation of Housing
  11. Sources of Preferential Loans for Social Housing Policies
  12. Payment of Land Use Fees When Reselling Social Housing

 

  1. Forms of Social Housing Development (Article 80 of the Law on Housing):

There are six forms of social housing development:

(1) State investment with public investment funds for rental or lease-purchase;

(2) State investment with non-public state funds for sale, lease-purchase, or rental;

(3) Enterprises, cooperatives, and cooperative unions investing for sale, lease-purchase, or rental;

(4) The Vietnam General Confederation of Labor as the governing body of social housing projects with trade union financial resources for workers’ rental policies;

(5) Foreign enterprises participating in social housing investment for sale, lease-purchase, or rental;

(6) Individuals building social housing for rental.

 

  1. Types of Projects and Requirements for Social Housing Investment Projects (Article 81 of the Law on Housing):

(1) Types of Social Housing Investment Projects (five types):

– Investment projects for constructing a single housing building or a cluster of housing buildings;

– Investment projects for constructing a single housing building or a cluster of housing buildings with mixed purposes;

– Investment projects for constructing a residential area with integrated technical and social infrastructure;

– Investment projects for constructing an urban area with housing;

– Projects using multi-purpose land with housing construction.

(2) Project Requirements:

– Must be built on land designated for social housing development;

– Must meet the requirements for housing investment projects as stipulated in Article 33 of the Law on Housing;

– Handing over social housing and housing for the people’s armed forces must comply with Clauses 3 and 4, Article 37 of the Law on Housing and Article 25 of Decree No. 95/2024/ND-CP;

– Investors must build housing for sale, lease-purchase, or rental, and cannot transfer land use rights for individuals to build their own housing.

 

  1. Types and Area Standards of Social Housing (Article 82 of the Law on Housing; Articles 27, 28 of Decree 100/2024/NĐ-CP):

3.1. Types and Area Standards of Social Housing Built Through Projects:

(1) For social housing in apartment buildings:

– Must be designed and built as enclosed structures, complying with national technical regulations and applicable standards;

– Each apartment’s usable area must be at least 25 m² and not exceed 70 m²;

– The maximum usable area of apartments can be increased (up to 10% more than the maximum area of 70 m², but the number of apartments exceeding 70 m² must not be more than 10% of the total number in the project).

(2) For social housing as individual houses:

– Only allowed to be built in ethnic minority and mountainous areas as per the Prime Minister’s regulations;

– Must be designed and built according to national technical standards for construction planning;

+ Construction density, land use coefficient, and building height must comply with planning;

+ The plot area must not exceed 70 m², and the land use coefficient must not exceed 2.0 times.

3.2. Types and Area Standards of Social Housing Built by Individuals for Rent:

(1) Building multi-story housing with multiple apartments:

– For housing with two or more stories and a scale of 20 or more apartments, it must comply with the regulations in Clause 1, Article 57 of the Law on Housing (conditions for being a social housing project investor; investment construction according to the project).

– For housing with two or more stories and a scale of fewer than 20 apartments, it must comply with the regulations in Clause 3, Article 57 of the Law on Housing (Article 4 of Circular 05/2024/TT-BXD; fire prevention and fighting; fire prevention and fighting roads as prescribed by the provincial People’s Committee).

(2) Building rows of one-story housing:

– Must be built as enclosed structures (with separate rooms and separate bathrooms);

– The average area must be at least 8 m² per person (not including the ancillary area);

– The construction quality must be at least level IV or higher;

– The layout must ensure traffic, environmental hygiene, and incident remediation (fire, explosion, etc.).

 4. Land for Social Housing Development (Article 83 of the Law on Housing):

  1. Provincial People’s Committees must allocate sufficient land funds for social housing development according to the needs outlined in the housing development programs and plans, including land funds for independent social housing development and land funds for social housing within commercial housing projects. The land for social housing development must be connected with regional technical and social infrastructure and meet the living and working needs of social housing beneficiaries.
  2. Land for Social Housing Development by Projects includes:

a) Land allocated by the State for building social housing for sale, lease-purchase, or rent;

b) Land leased by the State for building rental social housing;

c) Residential land reserved for building social housing within commercial housing projects;

d) Land owned by enterprises, cooperatives, or cooperative unions for social housing investment projects.

3. Individuals are entitled to use land for building social housing for rental purposes.

 

Articles 17, 18, 19 of Decree 100/2024/ND-CP:

  1. Land for Social Housing within Commercial Housing Investment Projects:

(i) For allocating residential land within commercial housing projects for social housing:

– In special, grade I, II, III urban areas, the provincial People’s Committee, when approving the investment policy, decides that the project investor must allocate 20% of the total residential land area (excluding existing residential land and resettlement land) for social housing.

– For projects under the Prime Minister’s approval authority, the provincial People’s Committee considers and decides on land allocation when the lead appraisal agency seeks opinions.

(ii) For allocating social housing land outside the commercial housing project:

In special, grade I, II, III urban areas, the provincial People’s Committee, when approving the investment policy and concurrently approving the investor, decides on social housing land allocation outside the project when:

– The project requires land allocation for social housing according to regulations;

– The investor has land suitable for planning, land use plans, and located in the same urban area as the commercial housing project, with an equivalent or similar area or value of residential land for social housing;

– The investor submits a written proposal for land allocation to replace the social housing land.

(iii) For paying equivalent value for the 20% social housing land fund:

– In special, grade I, II, III urban areas, the provincial People’s Committee, when approving the investment policy and the investor, decides not to allocate residential land for social housing and approves the commercial housing project investor to pay an equivalent value for the 20% land fund.

– The payment by the investor follows land use fee and land lease fee regulations, calculated at the time of investment in technical infrastructure (Clause 5, Article 6 of Decree No. 103/2024/NĐ-CP on land use fees and land lease fees);

– The payment made by the investor must be submitted to the local budget and managed, used according to state budget laws;

– The commercial housing project investor who has paid according to this regulation has fulfilled the social housing obligation.

4*. For projects under the Prime Minister’s authority, the provincial People’s Committee provides opinions on fulfilling the social housing obligations of the commercial housing project investor when requested for coordinated appraisal by the appraisal agency.

 

  1. Investors of Social Housing Investment Projects (Article 84 of the Law on Housing):

– Projects using public investment funds and trade union financial resources: Investors are determined according to construction law and public investment law.

– Projects using non-public state funds: As stipulated in Clause 2, Article 7 of the Construction Law.

– Projects using private funds:

+ Approve the investor if only one investor is interested.

+ Conduct bidding if two or more investors are interested.

+ Approve the investment policy concurrently with the investor if the investor has land use rights.

+ For the 20% land fund within commercial housing projects, assign the commercial housing project investor.

(1) If there is only one investor meeting the requirements of the invitation dossier as per bidding law (Article 20 of Decree 100/2024/ND-CP):

– The provincial People’s Committee approves the investor to be the project investor for social housing when they meet the conditions for investor approval under investment law and the conditions for equity capital, capital mobilization ability under real estate business, land law, and other related laws.

– The procedures for investor approval follow investment law.

– The document approving the investor under investment law is the document designating the project investor.

(2) If two or more investors are interested, bidding is conducted according to bidding law (Article 21 of Decree 100/2024/ND-CP):

– Project conditions:

+ Conditions as per bidding law for projects requiring bidding.

+ Not falling under the cases specified in Points a and c, Clause 4, Article 84 of the Law on Housing.

+ Investment policy approval decision already obtained.

+ Subdivision planning at 1/2000 scale or detailed planning at 1/500 scale.

– Organizations participating in the bidding to select the social housing project investor must meet the conditions stipulated in the Land Law, Bidding Law, and the guiding documents of these laws.

– Bidding dossiers are evaluated on a 100-point scale, including total evaluation points for capacity and experience, business investment plan, and effectiveness of investment development for the sector, locality, ensuring a total proportion of 100%.

– Procedures, documents, and requirements follow bidding law.

– The decision approving the selection result of the winning investor is the document designating the project investor.

 

  1. Incentives for Social Housing Investment Project Investors (Article 85 of the Law on Housing):

(1) For Project Investors:

– Exemption from land use fees and land lease fees for the entire project; no need to follow procedures for determining land prices, calculating land use fees, land lease fees, or requesting exemptions;

– Preferential treatment for value-added tax and corporate income tax;

– Maximum profit margin of 10% of the total construction investment cost for the social housing area;

– Allocation of up to 20% of the total residential land area in the project with technical infrastructure invested for constructing commercial housing, business, and service facilities; accounted separately, and the investor retains all profits from this part. If the land is used for commercial housing construction, land use fees must be paid according to land law;

– Access to preferential loans;

– Provincial People’s Committees support the connection of the project’s technical infrastructure with the regional technical infrastructure to ensure social infrastructure synchronization within and outside the project area;

– Provincial People’s Councils issue support mechanisms for social housing projects in their locality;

– Other incentives as per legal regulations (if any).

(2) For Individuals: eligible for loans to build or renovate housing for rent to social housing beneficiaries.

 

Article 22 of Decree 100/2024/NĐ-CP:

– The maximum profit margin is 10% of the total construction investment cost for the social housing area (A).

– The construction investment costs of the social housing project as the basis for calculation include:

– Social housing buildings, technical infrastructure works or components, and social infrastructure (if any) in the project;

– Loan interest (if any);

– Reasonable and valid costs of the enterprise allocated to the social housing part, determined as follows:

– Construction investment costs of the project are determined according to construction cost management law at the time of appraisal submission;

– Loan interest (if any) does not include loan interest during the construction period already determined in the project’s construction investment costs;

– Total reasonable and valid costs of the enterprise are 2% of A; if insufficient, the investor prepares estimates for this cost item;

– Construction investment costs for technical infrastructure works or components, social infrastructure (if owned collectively), and compensation, support, resettlement costs are allocated evenly to the total residential and commercial service land area (if any) in the social housing project.

 

Commercial Housing, Business, and Service Area (Article 23 of Decree 100/2024/NĐ-CP):

(1) If the detailed planning of the project allocates a separate land fund:

– The land area for business, service, and commercial construction is determined in the total commercial, service land area of the project; the land area for commercial housing construction is determined in the total residential land area of the project;

– The land area for business, service, and commercial housing construction is determined in the project’s detailed planning but must not exceed 20% of the total residential land area of the project.

(2) If the detailed planning of the project does not allocate a separate land fund:

– The floor area for business, service, and commercial purposes is allocated at a rate not exceeding 20% of the total residential floor area of the project, excluding the common living area;

– If the project has multiple blocks, the investor can choose to allocate within each block or combine into one or several blocks;

– Business, service, and commercial facilities are exempt from land use fees and land lease fees, except if the investor transfers or contributes capital from the land area or floor area.

 

  1. Prices for Social Housing Sale, Lease-Purchase, and Rental

(1) For social housing built with public investment funds and trade union financial resources:

– Rental social housing: The rent must cover housing maintenance costs and recoup the housing construction investment over a minimum period of 20 years.

– Lease-purchase social housing: The lease-purchase price must cover the housing construction investment costs over a minimum period of 5 years; maintenance costs are not included as they are paid by the lease-purchaser.

– The rent and lease-purchase prices must not include the incentives specified in Clause 1, Article 85 of the Law on Housing.

– Competent authorities decide on the rent and lease-purchase prices of social housing.

– The Vietnam General Confederation of Labor decides on the rent for social housing built with trade union financial resources.

– The formula for calculating rent and lease-purchase prices is guided in Article 31 of Decree 100/2024/NĐ-CP.

(2) For social housing built without public investment funds or trade union financial resources:

– Sales and lease-purchase prices of social housing are determined as follows:

  1. a) Including all costs to recover capital, such as:

– Construction investment costs for social housing buildings,

– Compensation, support, resettlement costs,

– Technical and social infrastructure construction costs implemented by the social housing investor within the project (excluding construction for business purposes or handover to the State),

– Loan interest (if any),

– Reasonable and valid costs of the enterprise,

– Maximum profit margin.

  1. b) Excluding incentives specified in Points a, b, đ, g, and h of Clause 2, Article 85 of the Law on Housing, and maintenance costs paid by the buyer or lease-purchaser.  

The formula for determining prices is guided in Articles 32, 33 of Decree 100/2024/NĐ-CP:

– Rental price of social housing: Including maintenance costs, agreed upon by the investor and tenant within the price framework set by the provincial People’s Committee (Article 34 of Decree 100/2024/ND-CP).

– For social housing built by individuals, the rent must comply with the price framework set by the provincial People’s Committee.

 

8. Procedures for Appraisal of Sales Price and Lease-Purchase Price of Social Housing (Article 35 of Decree 100/2024/ND-CP):

  1. The project investor directly submits one certified copy of the dossier to the competent agency of the provincial People’s Committee or submits the dossier online through the public service portal.

2. The investor’s dossier for price appraisal includes:

a) Application for price appraisal;

b) Legal documents of the project (including: Investment policy approval; Land allocation decision or Land Use Rights Certificate or other documents proving land use rights; 1/500 detailed planning approval; Construction permit and other related documents);

c) Pricing plan for social housing sales and lease-purchase prepared by the investor.

3. The competent agency of the provincial People’s Committee where the project is located appraises the sales and lease-purchase prices of social housing as proposed by the investor.

If the investor uses the winning bid price, reappraisal of the social housing sales and lease-purchase prices is not required.

9. Procedures for Sale, Lease-Purchase, and Rental of Social Housing (Article 38 of Decree 100/2024/ND-CP):

  1. Within 30 days of project commencement, the investor provides project information for public disclosure on the website of the Department of Construction.
  2. Before selling, the investor reports in writing to the Department of Construction for public disclosure on the department’s website.
  3. Interested individuals submit their applications directly to the project investor.
  4. The investor compares the regulations on subjects and conditions to compile a list of eligible social housing buyers.
  5. The investor sends the list to the Department of Construction for verification to identify the correct subjects and exclude individuals already benefiting from social housing policies.

– The local agency issuing Land Use Rights Certificates is responsible for verifying housing information and ensuring the accuracy of verification results.

  1. If the Department of Construction does not respond within 20 days of receiving the list, the investor informs the applicants to finalize and sign the contract.
  2. The investor can only sign contracts when the housing meets the sale conditions and the sales price has been appraised and approved.
  3. After signing contracts, the investor compiles a list of buyers and sends it to the Department of Construction for management and inspection purposes (post-check).
  4. The Department of Construction updates the list on its website and sends it to the Ministry of Construction for monitoring.
  5. If the number of applications is less than or equal to the number of apartments, the selection of apartments is agreed upon between the investor and the customers.

– If the number of applications exceeds the number of apartments, the buyers are selected through a lottery.

 

10. Preferential Loans for Purchasing, Lease-Purchasing Social Housing; Building or Renovating Houses (Article 48 of Decree No. 100/2024/ND-CP):

  1. Conditions for preferential loans for purchasing or lease-purchasing social housing:

– Must have a source of income and the ability to repay the loan as committed to the Social Policy Bank.

– Must have a purchase or lease-purchase contract for social housing with the investor.

– The loan must be secured by assets formed from the loan funds.

  1. Conditions for preferential loans for building, renovating, or repairing houses:

– Must have documents proving eligibility and conditions.

– Must have the ability to repay the loan as committed to the credit institution.

– Must have a certificate of land use rights and ownership of assets attached to the land.

– Must have a cost calculation plan and a construction permit if required.

– The loan must be secured.

  1. Loan amount:

– For purchasing or lease-purchasing social housing: Up to 80% of the contract value.

– For new construction or repairs: Up to 70% of the estimated value, up to 1 billion VND, or up to 70% of the secured asset value.

  1. Loan interest rate: Equal to the interest rate for loans to poor households as prescribed by the Prime Minister.
  2. Loan term: Agreed upon by the bank and the customer, with a maximum of 25 years.

 

11. Sources of Preferential Loans for Social Housing Policies (Article 50 of Decree No. 100/2024/ND-CP):

  1. Preferential loan sources through the Social Policy Bank:

a) The State budget provides 100% of the funds, subsidizes interest rate differences, and management fees in the medium-term and annual public investment plans for the Social Policy Bank to lend to social housing project investors, housing for the people’s armed forces, and housing target programs.

b) The State budget provides 50% of the funds in the medium-term and annual public investment plans, and the Social Policy Bank provides 50% of mobilized funds; the State budget subsidizes interest rate differences and management fees for loans for purchasing, lease-purchasing social housing, housing for the people’s armed forces, and building, renovating, repairing housing.

c) Entrusted funds from local housing development funds (if any), annual support from local budgets, funds from bond issuance, housing bonds, and other legal sources as decided by the provincial and district People’s Councils to achieve local social housing goals and plans.

2. Loan sources for social housing through the Vietnam Development Bank.

3. Preferential funds from the state budget:

– Based on the provincial housing development programs and plans approved by competent authorities, the provincial People’s Committees develop medium-term and annual public investment plans as a basis for the state budget to provide funds to provinces and centrally run cities to subsidize interest rates for social housing project investors, worker accommodation, housing for the people’s armed forces, and individuals borrowing funds to build, renovate, or repair housing for rent.

– The subsidized interest rate is decided by the Prime Minister upon the Ministry of Finance’s recommendation for each period.

4. Preferential loan sources from credit institutions:

– Credit institutions designated by the State to lend according to the credit programs decided by the Government and the Prime Minister in each period.

– The Government utilizes ODA loans and preferential foreign loans to relend to designated credit institutions for social housing loans.

– Government bonds and local government bonds.

 

  1. Payment of Land Use Fees When Reselling Social Housing

(1) For project investors reselling social housing after renting for 10 years:

– Follow the provisions of the land law (Point a, Clause 10, Article 17 of Decree No. 103/2024/NĐ-CP dated July 30, 2024, on land use fees and land lease fees).

(2) For individuals reselling social housing after 5 years:

– Income tax must be paid.

– Regarding land use fees:

+ If the property is an apartment: The seller does not have to pay land use fees.

+ If the property is an individual house: The seller must pay 50% of the land use fees as prescribed by land law (Clause 4, Article 6 of Decree No. 103/2024/NĐ-CP).

– The time for calculating land use fees is when a valid dossier is submitted for recognizing land use rights.

 

IV. ABOUT WORKER ACCOMMODATION IN INDUSTRIAL ZONES

  1. Stages of Investment Projects for Worker Accommodation in Industrial Zones
  2. Subjects Eligible for Support Policies for Worker Accommodation in Industrial Zones
  3. Forms of Development for Worker Accommodation in Industrial Zones
  4. Conditions for Renting Worker Accommodation in Industrial Zones
  5. Planning and Allocation of Land Funds for Worker Accommodation in Industrial Zones
  6. Types of Projects and Requirements for Worker Accommodation Investment Projects in Industrial Zones
  7. Types and Design Standards for Worker Accommodation in Industrial Zones
  8. Investors of Worker Accommodation Investment Projects in Industrial Zones
  9. Incentives for Investors of Worker Accommodation Investment Projects in Industrial Zones
  10. Rental Prices for Worker Accommodation in Industrial Zones
  11. Principles of Managing and Operating Worker Accommodation in Industrial Zones
  12. Renting Worker Accommodation in Industrial Zones

 

1.Stages of Investment Projects for Worker Accommodation in Industrial Zones (Article 57 of Decree No. 100/2024/ND-CP):

  1. Investment Preparation Stage:

– Proposing, deciding, and approving the investment policy; planning for worker accommodation is done in conjunction with the industrial zone infrastructure investment project according to the laws on industrial zone and economic zone management, and investment laws.

– Selecting the investor for the worker accommodation project according to housing laws.

– Land allocation, leasing, and land use change according to land laws.

– Procedures for preparing, appraising, and approving the project are carried out according to construction laws.

  1. Project Implementation Stage: Includes surveying, preparing, appraising, and approving construction designs, obtaining construction permits, constructing, operating the building, and accepting the completed construction as per construction laws.
  2. Project Completion Stage: Includes handing over, finalizing, and other related procedures carried out according to construction laws, housing laws, and other relevant laws.

 

  1. Subjects Eligible for Support Policies for Worker Accommodation in Industrial Zones (Article 91 of the Law on Housing):

(1) Workers currently employed at enterprises, cooperatives, or cooperative unions producing in industrial zones.

(2) Enterprises involved in the business of industrial zone infrastructure; enterprises, cooperatives, or cooperative unions producing in industrial zones that invest in constructing worker accommodation.

 

  1. Forms of Development for Worker Accommodation in Industrial Zones (Article 92 of the Law on Housing):
  2. Enterprises involved in the business of industrial zone infrastructure invest in building worker accommodation within the industrial zone.
  3. Enterprises, cooperatives, and cooperative unions producing in the industrial zone invest in constructing or renting worker accommodation within the industrial zone to provide for their workers.

 

  1. Conditions for Renting Worker Accommodation in Industrial Zones (Article 93 of the Law on Housing):
  2. Enterprises, cooperatives, and cooperative unions producing in the industrial zone that rent worker accommodation within the industrial zone must have a lease contract for industrial zone premises and be engaged in production and business activities; they must also have labor contracts.
  3. Workers must have labor contracts and confirmation from their employer (enterprise, cooperative, cooperative union producing in the industrial zone, or industrial zone infrastructure business).
  4. The investor is responsible for approving the eligibility of individuals renting worker accommodation. If enterprises or cooperatives rent worker accommodation within the industrial zone to sublease to their workers, they are responsible for the approval.
  5. The industrial zone management board is responsible for checking and ensuring the proper approval of eligible individuals renting worker accommodation.

 

  1. Planning and Allocation of Land Funds for Worker Accommodation in Industrial Zones (Article 94 of the Law on Housing, Article 58 of Decree 100/2024/NĐ-CP):
  2. When planning the construction of industrial zones, the provincial People’s Committee is responsible for allocating at least 20% of the commercial and service land funds within the industrial zone for worker accommodation, except where the provincial land use planning, housing development programs, and plans have already allocated sufficient land to meet the housing needs of industrial zone workers.
  3. If an established industrial zone lacks or does not sufficiently provide accommodation for workers and has available commercial and service land that ensures environmental safety, the industrial zone infrastructure business can report to the provincial People’s Committee to adjust a portion of the commercial and service land for worker accommodation.
  4. The land designated for worker accommodation and associated service and public utility facilities within the industrial zone must maintain a safe environmental distance from production areas within the industrial zone.

 

  1. Types of Projects and Requirements for Worker Accommodation Investment Projects in Industrial Zones (Article 95 of the Law on Housing):
  2. Worker accommodation projects in industrial zones are considered new investment projects for constructing a single building or a cluster of buildings.
  3. Investment projects for worker accommodation must meet the following requirements:
  4. a) Conform to the industrial zone construction planning;
  5. b) Fulfill the area requirements for housing for workers in the industrial zone;
  6. c) Ensure synchronized technical and social infrastructure systems, and include all necessary functional areas and spaces for living needs, such as healthcare, cultural activities, playgrounds, sports, services, commerce, and public utilities;
  7. d) Have fences and separate pathways from production areas in the industrial zone, ensuring security and safety;
  8. e) Conduct environmental impact assessments as required by environmental protection laws.
  9. Investment projects for worker accommodation in industrial zones must be approved by the industrial zone management board for the investment policy and investor approval according to investment law; these projects must be managed and controlled in terms of quality, area standards, and rental prices of worker accommodation in the industrial zone.

 

  1. Types and Design Standards for Worker Accommodation in Industrial Zones (Article 96 of the Law on Housing):
  2. Must be apartment buildings that comply with detailed construction plans approved by competent state authorities.
  3. Must be designed and built to ensure compliance with construction standards and regulations; priority should be given to applying new construction technologies to reduce costs and save energy.

 

  1. Investors of Worker Accommodation Investment Projects in Industrial Zones (Article 97 of the Law on Housing):
  2. Enterprises involved in the business of industrial zone infrastructure must determine the need for worker accommodation in the industrial zone, prepare and submit the planning and investment for technical and social infrastructure of worker accommodation attached to the industrial zone for approval by competent authorities.
  3. After completing the investment in technical and social infrastructure for worker accommodation, industrial zone infrastructure businesses can either invest in constructing the accommodation themselves or lease the land to enterprises or cooperatives producing in the industrial zone for investment in constructing worker accommodation:

– If the industrial zone infrastructure business invests in worker accommodation, it becomes the project investor.

– If enterprises, cooperatives, or cooperative unions producing in the industrial zone lease the land to invest in constructing worker accommodation, they become the project investor.

 

  1. Incentives for Investors of Worker Accommodation Investment Projects in Industrial Zones (Article 98 of the Law on Housing):
  2. Project investors for worker accommodation receive incentives as stipulated in Points a, b, đ, g, and h of Clause 2, Article 85 of the Law on Housing and the following incentives:
  3. a) Investment costs for technical and social infrastructure of worker accommodation are included in the investment costs for industrial zone infrastructure.
  4. b) Investment costs for constructing worker accommodation are deductible when determining taxable income according to corporate income tax laws.
  5. If enterprises, cooperatives, or cooperative unions producing in the industrial zone rent worker accommodation to sublease to their workers, the rental costs are considered reasonable expenses in production costs when calculating corporate income tax according to tax laws.

 

  1. Rental Prices for Worker Accommodation in Industrial Zones (Article 99 of the Law on Housing):

The rental prices for worker accommodation in industrial zones are agreed upon between the lessor and the lessee within the price framework set by the provincial People’s Committee.

 

  1. Principles of Managing and Operating Worker Accommodation in Industrial Zones (Article 100 of the Law on Housing):
  2. The investor organizes the management and operation of worker accommodation themselves or hires and delegates the responsibility to a qualified management unit.
  3. Worker accommodation must be rented to the correct eligible individuals.
  4. The purpose of use must not be arbitrarily changed.
  5. Building maintenance must comply with construction laws.
  6. The management unit of worker accommodation must establish usage rules, publicly announce them to workers renting the accommodation, and relevant units and individuals must comply.
  7. The management unit can offer other services to reduce housing management and operation service fees.
  8. The management and operation of worker accommodation enjoy preferential mechanisms similar to public utility services.

 

  1. Renting Worker Accommodation in Industrial Zones (Article 60 of Decree No. 100/2024/ND-CP):
  2. For worker accommodation built by industrial zone infrastructure businesses:

– The infrastructure business or the authorized management unit is responsible for renting to the correct eligible workers in the industrial zone.

– Workers needing accommodation must submit applications with confirmation from their employer.

– If the number of applications exceeds the available accommodation, a lottery is organized by the investor, with representatives from the industrial zone management board and the trade union supervising.

– Renting worker accommodation must be formalized with a rental contract with the management unit.

– Workers must pay rent in full, cannot sublease or transfer the rental contract, and violating this results in contract cancellation.

  1. For worker accommodation built by production enterprises in the industrial zone:

– Workers needing accommodation submit applications with confirmation from their employer, and the enterprise is responsible for renting to the correct eligible individuals.

 

  1. ABOUT HOUSING FOR THE PEOPLE’S ARMED FORCES
  2. Subjects Eligible for Support Policies for Housing for the People’s Armed Forces
  3. Forms of Development for Housing for the People’s Armed Forces
  4. Conditions for Support Policies for Housing for the People’s Armed Forces
  5. Land for Development of Housing for the People’s Armed Forces
  6. Types of Projects and Requirements for Investment Projects for Housing for the People’s Armed Forces
  7. Investors of Investment Projects for Housing for the People’s Armed Forces
  8. Incentives for Investors of Investment Projects for Housing for the People’s Armed Forces
  9. Prices for Sale, Lease-Purchase, and Rental of Housing for the People’s Armed Forces
  10. Procedures for Sale, Lease-Purchase, and Rental of Housing for the People’s Armed Forces
  11. Preferential Loans for Purchasing, Lease-Purchasing Housing for the People’s Armed Forces

 

  1. Subjects Eligible for Housing Policies for the People’s Armed Forces (Article 101 of the Law on Housing):

– Officers, professional soldiers, non-commissioned officers, public security workers, civil servants, and defense employees currently serving in the armed forces; individuals working in cryptographic organizations and other positions within cryptographic organizations who are salaried by the state budget.

– The Ministry of Defense and the Ministry of Public Security issue documents proving the eligibility of these individuals.

 

  1. Forms of Development for Housing for the People’s Armed Forces (Article 103 of the Law on Housing):
  2. The State invests with public investment funds for rental or lease-purchase by the eligible individuals.
  3. The State invests with non-public state funds for the eligible individuals to buy, lease-purchase, or rent.
  4. Real estate businesses invest in constructing housing for the People’s Armed Forces for the eligible individuals to buy, lease-purchase, or rent.

 

  1. Conditions for Purchasing, Lease-Purchasing, or Renting Housing for the People’s Armed Forces:

(1) For renting housing: No conditions regarding housing or income.

(2) For purchasing or lease-purchasing housing: Must meet two conditions:

– Housing condition: Similar to social housing and must not already have social housing.

– Income condition: Similar to the conditions for purchasing or lease-purchasing social housing.

 

  1. Land for Development of Housing for the People’s Armed Forces (Article 104 of the Law on Housing):

– The allocation of land for housing development for the People’s Armed Forces within the local social housing land fund is decided by the provincial People’s Committee, ensuring connectivity with the area’s technical and social infrastructure and meeting the living and working needs of the eligible individuals.

 

  1. Types of Projects and Requirements for Investment Projects for Housing for the People’s Armed Forces (Article 105 of the Law on Housing):

(1) Investment projects for housing for the People’s Armed Forces include five types:

– Projects for constructing a single housing building or a cluster of housing buildings.

– Projects for constructing a single housing building or a cluster of housing buildings with mixed use.

– Projects for constructing a residential area with integrated technical and social infrastructure and other buildings.

– Projects for constructing an urban area with housing.

– Projects using multi-purpose land that includes housing construction.

(2) Investment projects for housing for the People’s Armed Forces must meet the same requirements as social housing projects and other requirements as stipulated by the Minister of Defense and the Minister of Public Security.

 

  1. Investors of Investment Projects for Housing for the People’s Armed Forces (Article 106 of the Law on Housing):

(1) For projects funded by state capital, the investor is determined according to public investment and construction laws.

(2) For projects not funded by state capital, the provincial People’s Committee selects the project investor according to Clause 4, Article 84 of the Law on Housing.

 

  1. Incentives for Investors of Investment Projects for Housing for the People’s Armed Forces (Article 107 of the Law on Housing):

(1) Investors of housing projects for the People’s Armed Forces funded by public investment receive the incentives specified in Points a and b, Clause 2, Article 85 of the Law on Housing.

(2) Investors of housing projects for the People’s Armed Forces not funded by public investment receive the incentives specified in Clause 2, Article 85 of the Law on Housing.

 

  1. Prices for Sale, Lease-Purchase, and Rental of Housing for the People’s Armed Forces:

– The prices for sale, lease-purchase, and rental of housing for the People’s Armed Forces follow the same regulations as social housing projects (whether funded by state or private capital).

 

  1. Procedures for Sale, Lease-Purchase, and Rental of Housing for the People’s Armed Forces:

(1) After project commencement, the investor provides project information to the housing management agencies of the Ministry of Defense and the Ministry of Public Security; public disclosure is made in local newspapers and the investor’s real estate trading platform.

(2) Before the sale, the investor reports in writing to the housing management agencies of the Ministry of Defense, the Ministry of Public Security, and the local Department of Construction for public disclosure on the Department of Construction’s website.

(3) Armed forces personnel wishing to purchase or rent must submit applications to the housing management agencies of the Ministry of Defense and the Ministry of Public Security.

(4) The housing management agencies of the Ministry of Defense and the Ministry of Public Security compile a list of eligible individuals, report it to the Ministry of Defense and the Ministry of Public Security.

(5) The Ministry of Defense and the Ministry of Public Security approve the list and send it to the project investor and the Department of Construction to coordinate with relevant agencies to verify eligibility.

(6) If there is no feedback from the Department of Construction within 20 days, the investor finalizes the list of eligible individuals and sends it to the Ministry of Defense and the Ministry of Public Security to inform the eligible individuals to finalize and sign contracts.

(7) The investor can only sign contracts when the housing meets the sale conditions and the prices have been appraised and approved.

(8) After signing contracts, the investor compiles a list of buyers and sends it to the housing management agencies of the Ministry of Defense, the Ministry of Public Security, and the Department of Construction for management and inspection purposes.

(9) If the number of applications is less than or equal to the number of apartments, the selection is agreed upon between the investor and the customers. If the number of applications exceeds the number of apartments, a lottery is conducted to select the buyers.

 

  1. Preferential Loans for Purchasing, Lease-Purchasing Housing for the People’s Armed Forces (Article 71 of Decree No. 100/2024/NĐ-CP):

(1) Preferential loans for purchasing, lease-purchasing housing for the People’s Armed Forces through the Social Policy Bank follow the regulations in Clauses 1, 3, 4, and 5 of Article 48 of Decree No. 100/2024/NĐ-CP (similar to social housing).

(2) Preferential loans for purchasing, lease-purchasing housing for the People’s Armed Forces through credit institutions designated by the State follow the regulations in Article 49 of Decree No. 100/2024/NĐ-CP (similar to social housing).

(3) Preferential loans for investors of housing projects for the People’s Armed Forces not funded by public investment follow the regulations in Article 25 of Decree No. 100/2024/NĐ-CP (similar to social housing).

 

RESPONSIBILITIES OF MINISTRIES, SECTORS, AND LOCALITIES

  1. Responsibilities of the Ministry of Construction(Article 72 of Decree No. 100/2024/ND-CP).
  2. Responsibilities of Related Ministries and Sectors(Article 73 of Decree No. 100/2024/ND-CP).
  3. Responsibilities of the Vietnam General Confederation of Labor (Article 74 of Decree No. 100/2024/ND-CP).
  4. Responsibilities of Provincial and Municipal People’s Committees(Article 75 of Decree No. 100/2024/ND-CP).
  5. Responsibilities of Enterprises with Production Facilities in Industrial Zones(Article 76 of Decree No. 100/2024/ND-CP).

 

IMPLEMENTATION PROVISIONS

  1. Implementation and Enforcement Responsibilities

– Articles 196 and 197 of the Law on Housing.

– Article 77 of Decree No. 100/2024/ND-CP.

  1. Transitional Provisions

– Clause 5, Article 198 of the Law on Housing.

– Article 78 of Decree No. 100/2024/ND-CP.

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