Million rooftops: A bright spot from the industrial hub (Part 3)

Part 3: Long-lasting bottlenecks that need to be addressed

Despite achieving many positive results, the development of social housing (SH) in Dong Nai in particular and the whole country in general still faces many difficulties and obstacles, failing to meet practical needs. Some obstacles regarding land funds, procedures, capital sources, and preferential mechanisms have not been thoroughly resolved; the ability of people to access housing and capital sources still lags behind policy goals.

Effectively identifying and removing these bottlenecks will be decisive in achieving the target of one million social housing units ahead of schedule.

A representative of Dong Nai branch of the Vietnam Bank for Social Policies disseminates regulations on preferential interest rate loans for purchasing social housing to the public. Photo: Hoang Loc

Many intertwined barriers

After the Housing Law 2023 and guiding documents were issued, the SH market has seen clear improvements. Supply has increased significantly, and many projects have been launched, contributing to improving living conditions for low-income people and creating more momentum for the real estate market. However, a paradox exists: despite improved supply, people's actual access still faces many barriers.

According to Deputy Director of the Department of Construction Do Thanh Phuong, the current "bottlenecks" are not in a single stage but are intertwined and multi-dimensional. Legal procedures remain a major obstacle. Some projects, even those assigned to investors under a pilot mechanism, are still slow to complete the necessary steps for groundbreaking, thus affecting the overall progress.

Regarding land funds, Dong Nai does not lack in total, but it lacks suitable land funds to develop independent SH apartment complexes in areas with high demand. Many 20% land funds in commercial housing projects, which were expected to be an important source of supply, are still "on paper" due to legal obstacles.

As of March 2026, Dong Nai has 73 SH projects that have been and are being implemented, with a scale of approximately 71,800 units. Of these, 68 SH and worker housing projects account for about 66.6 thousand units; 4 SH projects specifically for workers account for nearly 4,800 units, and 1 worker dormitory project accounts for over 400 units.

Some projects face difficulties in sales, forcing investors to extend their schedules. Construction projects are under pressure regarding material sources, as many mineral mines are prioritized for national key projects. Examples include the project of nearly 1.1 thousand apartments in Long Hung ward, the project of nearly 1.5 thousand units in Phuoc Tan ward, or some newly started projects.

A major bottleneck lies in market mechanisms. Although SH receives incentives, it is not truly attractive to investors because profit margins are controlled. At the same time, input costs such as raw materials and site clearance constantly fluctuate, increasing risks and reducing economic efficiency.

The real estate market currently faces a paradox of supply: a shortage of affordable housing but an oversupply of high-end housing; SH must be cheap for people to access, but it must be attractive enough for businesses to invest.

Another specific issue in Dong Nai is the "mismatch" between policy and living habits. The Housing Law 2023 stipulates that SH is mainly developed in the form of apartments, but in many areas, especially suburban areas, people are still accustomed to individual houses. This challenge makes some projects difficult to attract buyers, even though there is a real demand for housing.

For homebuyers, basic procedures have become convenient, but access to credit is a barrier. Nguyen Thi Hang, a social housing buyer in Long Thanh commune, said: The loan from commercial banks only has a preferential interest rate for 6 months, after which it floats according to the market, posing many potential risks. While capital from the Vietnam Bank for Social Policies is more stable in terms of interest rates, the procedures are complex, and not everyone can easily access it.

In reality, the "bottleneck" of social housing does not lie in the policy itself, but in the design and implementation of the policy. Removing obstacles related to mechanisms, land funds, legal frameworks, and capital sources needs to go hand in hand with improving people's access to housing. Only then can the social welfare goal that social housing aims for be realized.

Raising income ceilings, adding affordable housing

In response to these challenges, the Government has directed the Ministry of Construction to continue improving the policy system in a more flexible and practical direction. One notable requirement is to adjust income criteria to expand the beneficiary pool and increase the supply of social housing.

And the good news is that from April 7, 2026, in Decree No. 136/2026/ND-CP, the Government officially increased the income ceiling for purchasing social housing by 5-10 million VND, depending on the subject, compared to previous regulations. Accordingly, if the applicant is single, their actual average monthly income (according to verified salary slips) must not exceed 25 million VND (an increase of 5 million VND compared to the old regulation). For single individuals raising minor children, the maximum income level is raised to 35 million VND/month (an increase of 5 million VND compared to the old regulation). For married individuals, the total actual average monthly income of both spouses must not exceed 50 million VND (an increase of 10 million VND compared to the old regulation). The Decree takes effect immediately upon promulgation.

Nguyen Tan Kiet, Director of Thanh Thang Design and Construction Consulting Co., Ltd., the investor of a social housing project with over 1,000 apartments in Bao Vinh ward, stated: Previously, income condition regulations had many shortcomings. Specifically, the policy allowed buyers to borrow up to 80% of the contract value, but if their income exceeded 20 million VND per month, they were no longer eligible to buy; conversely, people with low incomes found it difficult to access loan capital. This reality led to a paradox: those with the ability to repay were not eligible to buy a house. Meanwhile, those eligible to buy a house found it difficult to borrow capital.

Also, according to Kiet, the Government's adjustment to raise the income level to 25 million VND per month will expand access to social housing for people, especially workers and laborers. At the same time, this policy also contributes to encouraging corporations, groups, and businesses to participate in housing development according to local planning, better meeting actual needs.

Also related to the issue of increasing supply, Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), believes that it is necessary to further adjust the profit mechanism to increase investment attractiveness. Capping the maximum profit at 10% as it is now is not appropriate in the context of increasing input costs. The proposal to raise this level to 13%, accompanied by substantial incentives, is expected to create motivation for businesses to participate more strongly.

Currently, the Government has directed research to amend, supplement, and improve relevant laws such as the Land Law, Real Estate Business Law, and Housing Law in 2026 to create a more synchronous and transparent legal framework. Completing the institutional framework will help remove procedural obstacles, create a stable investment environment, and encourage businesses to participate in social housing development. This undertaking is the "lever" to increase supply and expand housing opportunities for people, which is the core goal of housing social welfare policy.

Social housing is not a challenge that can be resolved quickly or through isolated measures. It requires a comprehensive and coordinated policy framework that balances the interests of the State, businesses, and citizens. And when the "bottlenecks" are correctly identified and effectively resolved, this social welfare pillar will become a driving force for sustainable development.

Removing the "bottlenecks" is a solution to achieve the goal of the number of apartments, and at the same time, it is a prerequisite for the housing policy to play its role as a pillar of sustainable development comprehensively. When the barriers related to mechanisms, resources, and implementation are gradually cleared, the opportunity for stable housing will no longer be an expectation but will become a stable foundation for residents and the workforce.

Dong Nai is not only an industrial hub but is also gradually completing the conditions to become a centrally-governed city. In this journey, stable housing transcends the meaning of social welfare, becoming a strategic factor determining urban quality and developmental competitiveness.

By Hoang Loc – Translated by Mai Nga, Minho