On October 10, 2025, the Government promulgated Decree No. 261/2025/ND-CP (“Decree 261”) amending and supplementing a number of articles of Decree No. 100/2024/ND-CP dated July 26, 2024, detailing the implementation of certain provisions of the Law on Housing regarding the development and management of social housing (“Social Housing” or “SH”), and Decree No. 192/2025/ND-CP dated July 1, 2025, of the Government detailing certain provisions and measures for implementing Resolution No. 201/2025/QH15 dated May 29, 2025, of the National Assembly on the pilot implementation of specific mechanisms and policies for developing social housing.
This Decree replaces and updates numerous important provisions from the previous regulations, aiming to remove practical obstacles and accelerate social housing projects amid increasing demand, particularly in major urban areas and industrial zones. The key highlights are as follows:
1. Increasing the Income Cap for Eligibility to Purchase, Lease, or Lease–Purchase Social Housing
Decree 261 revises the income eligibility criteria for access to social housing policies by significantly raising the income ceiling, thereby enabling more citizens—especially middle-income workers in urban areas—to qualify for social housing. Specifically:
|
Beneficiary |
Decree No. 100/2024/ND-CP |
Decree No. 261/2025/ND-CP |
|
Single person |
Monthly income ≤ VND 15 million |
Monthly income ≤ VND 20 million |
|
Single person raising a minor child |
No separate provision |
Monthly income ≤ VND 30 million |
|
Married couple |
Combined monthly income ≤ VND 30 million |
Combined monthly income ≤ VND 40 million |
|
Household with ≥ 3 dependents eligible for social housing policies |
Not prioritized |
Encouraged to access social housing |
In addition, the Provincial People’s Committee is authorized to adjust the income coefficient to suit local socio-economic conditions, provided that such adjustment does not exceed the ratio between the province’s average per capita income and the national average.
2. Provisions on Preferential Loan Policies
Under the current Decree No. 100/2024/ND-CP, the lending interest rate for purchasing or lease–purchasing social housing is set as follows: “Equal to the lending interest rate applicable to poor households as prescribed by the Prime Minister from time to time. The overdue debt interest rate shall be equal to 130% of the applicable lending rate.”
At present, the Vietnam Bank for Social Policies applies a lending rate of 6.6% per annum for poor households.
Under Decree 261, the Government further strengthens the loan incentive policies for social housing purchasers and lease–purchasers by reducing the interest rate to only 5.4% per annum.
Furthermore, Decree 261 allows all credit contracts signed prior to October 10, 2025 for loans to purchase or lease–purchase social housing to be adjusted retroactively, applying the new interest rate to both the outstanding principal and overdue balance. These new provisions significantly alleviate the financial burden on low-income individuals, facilitating broader access to social housing policies.
3. Change in Authority for Income Verification of Individuals Without Labor Contracts
Previously, low-income urban residents without labor contracts were required to apply to the Commune-level People’s Committee for income verification. In practice, commune-level authorities often lacked the necessary data and resources to carry out such verification. To address this issue, Decree 261 transfers this responsibility to the Commune-level Police Authority at the applicant’s place of permanent or temporary residence. Income verification will now be conducted based on the national population database.
4. Revision of the Method for Calculating and Collecting Payments Equivalent to the Value of Land Funds Allocated for Social Housing Infrastructure
Under Decree No. 100/2024/ND-CP, project developers were required to determine and pay the amount equivalent to the value of the land fund after completing the technical infrastructure construction. This approach created financial difficulties for developers and strong objections, as land prices typically increased substantially by the time infrastructure construction was completed.
To remedy this, Decree 261 introduces a new approach by calculating and collecting payments at the time of land use fee determination.
Accordingly, the payment equivalent to the value of the land fund invested in technical infrastructure for social housing shall be calculated as the sum of the following components:
(i) Land use fee for 20% of the residential land area of the project; and
(ii) The amount equivalent to technical infrastructure investment costs, determined by the ratio of the 20% residential land area to the total project land area, multiplied by the total cost of technical infrastructure investment calculated according to the published investment unit cost at the time of land use fee determination (excluding costs of site leveling and land reclamation in case of sea reclamation projects).
Decree No. 261/2025/ND-CP takes effect on October 10, 2025.
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