Policy reforms in the coming period will focus on introducing more incentives to support the expansion of the rental housing sector, a Ministry of Construction official said at the Government’s regular press conference for May, held in Hanoi on June 3.

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Responding to questions from the media regarding breakthrough mechanisms to attract businesses to invest in the long-term rental housing segment, Lam Van Hoang, Chief of Office of the ministry, said the rental housing model was not new and that the current legal framework already provided relatively comprehensive regulations.

Notably, the 2023 Housing Law clearly distinguishes between housing for sale, rental housing and lease-purchase housing. However, rental housing development has remained limited.

Against the backdrop of rapid urbanisation and rising housing demand, Hoang stressed the need for stronger measures regarding financing, land access and preferential management mechanisms.

According to the official, to accelerate the development of rental housing, the ministry is focusing on three key tasks of improving policies and legal mechanisms, reviewing and issuing technical standards and regulations, and assessing demand across different groups and regions.

The construction ministry has proactively proposed new policy measures to translate the Party and State leadership’s directives into amendments to the Housing Law and the law on real estate business, which are expected to be submitted to the National Assembly for approval in October.

Under the proposed changes, housing policy would shift from a primary focus on commercial housing to a more balanced approach encompassing commercial housing, social housing and rental housing.

Rental housing is identified as a strategic long-term segment serving a broad range of people, particularly workers, students, civil servants, public employees and members of the armed forces.

“We are studying exceptional incentives relating to land and finance to help businesses gain easier access to land resources and credit for project development,” Hoang said.

“Alongside housing for sale, priority should be given to rental housing, especially apartment-for-rent models in major cities, industrial parks, economic zones, growth centres and key economic corridors.”

The ministry will work closely with other ministries, agencies and local authorities – initially focusing on Hanoi, Ho Chi Minh City, Dong Nai, Hai Phong and Da Nang, where demand is particularly strong – to assess rental housing needs and provide a basis for planning and resource allocation, thereby helping to avoid supply-demand imbalances, the Chief of Office noted.

Providing further details at the press conference, Minister-Chairman of the Government Office Dang Xuan Phong said that within just 10 days of conclusions issued by the Party General Secretary and State President, the Prime Minister had held working sessions with several localities facing significant demand for rental and social housing.

These included Hanoi, localities in the Mekong Delta such as Can Tho, Vinh Long and Dong Thap, as well as in those the Red River Delta including Hai Phong, Quang Ninh, Hung Yen, Ninh Binh and Bac Ninh. The Government leader is scheduled to continue discussions next week with authorities in the southeast region.

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