The Ministry of Construction has recently proposed raising the income threshold for eligibility to purchase social housing. This move is seen as a necessary step to expand access to housing for low- and middle-income earners, while also serving as a catalyst to encourage businesses to invest in the affordable housing segment.
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The proposal is also expected to help address long-standing shortcomings in social housing policy.
Income criteria and verification challenges
Social housing development is a major policy priority of the Party and the State, reflecting a human-centered and inclusive approach to ensure that "no one is left behind." Access to stable housing is viewed as a foundation for improving livelihoods.
Dong Nai, as one of the country's largest industrial hubs, faces particularly high demand for housing among migrant workers and laborers. The provincial Party Committee, People's Council, and People's Committee have issued numerous resolutions and plans to expand social housing in order to meet this demand and support local socio-economic development. However, implementation has faced many obstacles.
One of the main barriers lies in the income eligibility criteria. Prior to August 1, 2024, the threshold was capped at VND 11 million per month for single applicants, and VND 22 million combined for married couples. Since August 1, 2024, the ceiling has been adjusted to VND 15 million for individuals and VND 30 million for couples. Yet many argue that these levels remain low compared to living expenses in major urban and industrial centers.
Dang Thi Kim Oanh, Chairwoman of Kim Oanh Group (headquartered in Dong Nai), pointed out that some workers are disqualified simply because they paid a small amount of personal income tax during the year. "This is regrettable," she said. "These people still face housing difficulties, but overly strict rules prevent them from accessing social housing. When those in need cannot buy, developers are also unable to sell."
Another persistent issue is income verification. Under current regulations, commune-level People's Committees are responsible for certifying the income of workers without labor contracts, including informal laborers and freelancers. However, many localities report lacking the necessary data to do so, putting non-contracted workers in urban areas at a significant disadvantage when applying for social housing.
Do Thanh Phuong, Deputy Director of the provincial Department of Construction, explained: "There are many obstacles to social housing development, particularly income criteria and verification. That is why Dong Nai has proposed that the Ministry of Construction raise income thresholds and allow workers to self-declare and take responsibility for their reported income."
In 2025, Dong Nai has been assigned a target of more than 4,200 social housing units by the Prime Minister. For the 2021–2030 period, the province is expected to deliver 66,700 units. So far, local authorities have approved 37 projects with a combined scale of over 37,000 units.
Raising income thresholds and lowering loan rates
In response, the Ministry of Construction has drafted a new decree to replace Decree No. 100/2024/ND-CP, which provides detailed guidance on social housing development and management under the Housing Law. A key change in the draft is the adjustment of income thresholds for buyers.
Under the draft, single applicants may earn up to VND 20 million per month, while single parents with dependent children are allowed up to VND 30 million. For married couples, the combined household income must not exceed VND 40 million per month. Compared to current regulations, this represents an increase of VND 5 million across all categories.
In addition to raising the income threshold, the Ministry has proposed cutting the preferential loan rate for social housing buyers at the Vietnam Bank for Social Policies from 6.6% to 5.4% per year. The change is expected to ease the financial burden on households when purchasing homes.
The draft also recommends assigning local police to verify the income of informal workers using the National Population Database, a solution considered more practical than relying on People's Committees, which often lack the necessary information.
Nguyen Minh Hai, Director of An Hung Phat Infrastructure Development JSC, whose company is currently developing a 1,500-unit social housing project in Phuoc Tan Ward, Dong Nai, expressed support for the proposals. "The adjustments to income thresholds and interest rates are entirely reasonable," he said. "They create more opportunities for workers to secure housing and give developers greater confidence to move projects forward."
At a recent national conference reviewing social housing targets for the first seven months of 2025 and outlining tasks for the remainder of the year, Prime Minister Pham Minh Chinh affirmed that social housing development remains a central and top-priority task in socio-economic planning. He instructed the Ministry of Construction to urgently submit a draft decree on the establishment of a National Housing Fund and to revise income thresholds to reflect current realities better.
Raising the income ceiling serves both as a social policy tool and an economic measure to expand access to welfare programs and unlock the real estate market. When more people become eligible to purchase social housing, developers gain greater confidence to invest in new projects, helping to narrow the gap between housing supply and demand. This undertaking is a key factor in achieving the Government's target of one million social housing units by 2030.
For Dong Nai, the policy adjustment would resolve housing challenges for industrial workers, urban residents, and households affected by land clearance who are not eligible for resettlement. At the same time, it would ease social welfare pressures in urban areas, supporting sustainable economic and social development.
By: Hoang Loc
Translated by: Le Hung - Minho
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