In recent years, the State has issued numerous specific policies and regulations to promote the supply of social housing as one of the top-priority solutions for addressing the housing needs of the people. On May 29, 2025, the National Assembly adopted Resolution No. 201/2025/QH15 on the pilot implementation of certain special mechanisms and policies for the development of social housing (“Resolution 201”). Key highlights of Resolution 201 include:
1. Establishment of the National Housing Fund
For the first time, a document at the National Assembly level provides detailed provisions on the establishment, organization, and operation of the National Housing Fund, at both central and local levels.
According to Resolution 201, the National Housing Fund is a state financial fund outside the state budget, having legal status and operating on a non-profit basis. The Fund comprises: a Central Housing Fund established by the Government and Local Housing Funds established by provincial-level People’s Committees.
The capital sources for the Fund include allocations from the state budget; proceeds from land funds where technical infrastructure has been developed for social housing construction; proceeds from the sale of public housing assets; proceeds from land use rights auctions; voluntary donations and contributions from domestic and foreign organizations and individuals; and other legally mobilized sources.
The Fund shall be used for investing in the construction of social housing; technical and social infrastructure for social housing projects; and for creating social housing for rent, housing for officials, civil servants, public employees, and workers.
Currently, the Government is developing a draft Decree guiding the implementation of Resolution 201 regarding the functions, duties, and operations of the National Housing Fund. The establishment and operation of this Fund demonstrate a clear commitment by the Party and the State to housing and social security.
2. Allowing direct appointment of investors for social housing projects without bidding
Resolution 201 permits competent authorities to appoint investors or approve investment policies and concurrently appoint investors without going through the bidding process for the construction of social housing and housing for the armed forces that do not use public investment capital, specifically:
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Appointment of investors without bidding for projects already approved for investment policy, investment approval, or equivalent legal documentation.
If investor selection dossiers have been issued but no evaluation results are available by June 1, 2025, the provincial People’s Committee shall decide to either proceed with investor selection via bidding or appoint the investor in accordance with this Resolution. -
Approval of investment policy and concurrent appointment of investors without bidding for projects not yet approved for investment policy or equivalent documentation.
Investors must meet the legal requirements for real estate business entities.
In case of commercial housing or urban area projects with a requirement to hand over land for social housing, but by June 1, 2025, the land has not yet been handed over, or has been handed over but no investor has been selected to build the social housing, the provincial People’s Committee shall decide one of the following:
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Assign the same investor of the commercial housing or urban project (who has handed over or is expected to hand over land for social housing) to directly develop the social housing, provided they propose and meet legal conditions for real estate businesses;
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Assign another entity to implement the social housing or auction the land use rights in accordance with law. The proceeds equivalent to the land value shall be transferred to the National Housing Fund, in case the original investor does not propose to build social housing.
3. Allowing investors to determine selling and lease-purchase prices of social housing
Under the current Housing Law, the selling and lease-purchase prices of social housing (not using public investment or public financial resources) must be approved by the provincial People’s Committee.
However, Resolution 201 provides a more flexible mechanism, allowing the investor to determine and approve these prices based on price verification conducted by a qualified consulting unit engaged by the investor. To prevent negative practices and align with the “post-audit over pre-approval” principle, Resolution 201 requires the following:
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Upon completion and acceptance of the construction work, the investor must audit and finalize construction costs and submit to the competent agency under the provincial People’s Committee for inspection of the selling and lease-purchase prices.
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If the audited price is higher than the price stated in executed contracts, the investor shall not collect the difference from buyers or lease-purchasers;
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If the audited price is lower, the investor must refund the difference to the buyers or lease-purchasers.
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4. Streamlining investment procedures for social housing projects
Resolution 201 stipulates simplification of existing administrative procedures to enable investors to rapidly implement social housing projects, including:
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Exemption from preparing, appraising, approving, or adjusting detailed planning tasks for social housing projects or land plots lacking approved detailed planning or requiring adjustments;
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Exemption from appraisal of feasibility study reports by competent construction agencies under the Construction Law; investors shall self-appraise and approve feasibility reports and ensure legal compliance;
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Fire prevention and fighting design appraisal shall be integrated into the construction permit issuance process (where a permit is required) and handled by the permitting authority within 30 days from receipt of a valid dossier;
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Exemption from construction permits for social housing projects applying standard or typical designs issued by competent state agencies, conforming to urban/rural planning and fire prevention laws;
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Permitting the use of streamlined contractor appointment for procurement packages under social housing projects funded by public investment, trade union finance, or state-owned enterprises (or enterprises wholly owned by them).
5. Incentive mechanisms for compensation, support, resettlement, infrastructure investment, and land fund development for social housing
Resolution 201 introduces several special incentives for land clearance, compensation, support, resettlement, technical infrastructure development, and land fund creation for social housing:
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Provincial People’s Committees shall use state budget sources (including public investment, recurrent expenditures, and other lawful sources) to carry out compensation, support, resettlement, and synchronized infrastructure investment outside project boundaries to create land funds for social housing development;
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Where investors acquire land use rights through mutual agreement, the amount paid for land acquisition shall be recognized as project investment costs, but not exceeding the value of land use fees or rents that would have been payable to the State;
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Where the investor already has land use rights, the equivalent value of land use fees or rents may be included in project investment costs.
Resolution 201 shall take effect on June 1, 2025 and be applied for a period of 5 years (until May 31, 2030).
Comment: