Vietnam Elevates Rental Housing to Strategic Pillar in New Policy Shift

HANOI – Vietnam’s government has identified the development of rental housing as a core priority to meet the needs of its citizens and workforce, signaling a strategic shift in national housing policy, a senior official said.

Speaking at a recent real estate forum organized by the Vietnam National Real Estate Association, Deputy Minister of Construction Nguyen Van Sinh stated that the government and the Prime Minister are positioning the State to play a leading role in shaping the market and mobilizing social resources to expand the rental housing segment.

He underscored the real estate market's critical role in the national economy, citing its contributions to infrastructure, housing provision, social welfare, urbanization, and economic growth. According to the Deputy Minister, Vietnam's legal framework already accommodates various rental models—including social housing, worker accommodation, official residences, and commercial rentals—providing a foundation for future expansion.

Market Recovery Gains Momentum

As Vietnam balances ambitious economic growth targets with macroeconomic stability, the Party, National Assembly, and government have enacted a series of policies to foster a more stable, transparent, and sustainable real estate market.

Authorities have revised key laws governing investment, land use, planning, construction, housing, and real estate business activities, while simultaneously accelerating project approvals to boost housing supply. These reforms have enhanced legal consistency, streamlined administrative procedures, and helped clear longstanding obstacles for investors and developers.

Progress continues on the government’s program to build at least 1 million social housing units by 2030. To date, 781 projects with a total of 720,055 units are in development, achieving 72 per cent of the target. Of these, 231 projects (180,850 units) are complete, 234 projects (233,962 units) are under construction, and 316 projects (305,243 units) have received investment approval.

In 2025, developers completed 102,633 social housing units, surpassing the annual target of 100,275. In the first five months of 2026, construction commenced on an additional 34 projects, comprising nearly 30,000 units.

The government has also intensified efforts to resolve project bottlenecks. According to the Ministry of Construction (MoC), obstacles have been removed at 3,289 land-related projects covering more than 70,000 hectares, enabling them to resume development.

“With the decisive and coordinated implementation of these measures, the real estate market has shown encouraging signs,” Mr. Sinh said. “Major projects have broken ground, stalled developments have resumed, and both supply and liquidity have improved.”

However, he cautioned that significant structural challenges persist. A primary issue is the mismatch between supply and demand, with investment concentrated in the high-end segment while affordable housing remains scarce, especially in major cities.

The market is also heavily skewed toward properties for sale, with the long-term rental segment underdeveloped relative to actual housing needs. Furthermore, housing prices have outpaced income growth, pushing homeownership out of reach for many low and middle-income households. Existing policies have not proven sufficiently attractive to spur large-scale private investment in rental housing.

Another obstacle is the incomplete integration of housing information systems between central and local authorities, which hinders transparency and market oversight. “These are issues that have accumulated over time and cannot be resolved overnight, but they require immediate and coordinated action,” Mr. Sinh noted.

Strategic Focus

In response, Party General Secretary and State President To Lam and Prime Minister Le Minh Hung have articulated a new direction for the sector. The strategy pivots from a model focused primarily on commercial housing to a more balanced approach that simultaneously promotes commercial, social, and rental housing.

Under this vision, rental housing is elevated from a supplementary segment to a strategic, long-term component of the national housing system. It is intended to serve key demographics, including workers, students, civil servants, public employees, and members of the armed forces.

The government aims to foster a market-oriented housing sector supported by effective State management. The State will act as a facilitator, using planning, policy, and financial tools to ensure market transparency and sustainability while maintaining affordability.

Housing development will be more closely integrated with urban and land-use planning, industrial development, public transportation, and labor market strategies. Priority will be given to Transit-Oriented Development (TOD) projects, urban renewal programs, and developments within industrial parks, economic zones, and major economic corridors.

A key objective is to diversify funding sources. Authorities plan to reduce reliance on state budgets by mobilizing greater private sector participation and attracting long-term capital from financial institutions and investment funds. Public resources will be deployed strategically to guide market development and catalyze private investment.

The government also intends to address underutilized public housing assets, strengthen anti-waste measures, and enhance transparency in housing support programs to prevent speculation.

Expanding Rental Housing Supply

Building on these directives, the MoC has outlined several priorities. It will review the implementation of Directive No. 34-CT/TW, issued by the Secretariat in May 2024, and draft a new directive to strengthen Party leadership over the sector. The Ministry is also preparing amendments to the Law on Housing, the Law on Real Estate Business, and the Land Law for submission to the National Assembly this October.

Authorities will seek to better balance housing supply by prioritizing social housing, affordably-priced commercial housing, worker housing, and rental projects that meet genuine market demand.

Regarding rental housing specifically, Mr. Sinh said the MoC is collaborating with other ministries and local governments to amend legislation to create more favorable development conditions.

The Ministry has instructed local authorities to conduct detailed assessments of rental housing demand among workers, students, public servants, and armed forces personnel to inform investment planning and capital allocation.

City and provincial governments have been tasked with reviewing local planning, allocating suitable land, and ensuring adequate infrastructure for rental developments, particularly near industrial parks and in dense urban areas.

Furthermore, local governments are encouraged to invest directly in rental housing using their budgets and to strengthen local housing funds. They have been instructed to reserve land for social rental projects and expand rental stock by converting public assets and acquiring suitable properties from developers.

“The State will take the lead in guiding the market, while local authorities must proactively accelerate rental housing projects to meet the rapidly-growing housing needs of citizens and workers,” Mr. Sinh said.

He also called on local governments to accelerate social housing development, streamline administrative procedures, resolve delays on stalled projects, improve market transparency, and expedite the development of integrated housing and real estate databases.

The Deputy Minister expressed confidence that with strong political leadership, inter-agency coordination, and active participation from the business community, Vietnam’s real estate market will continue to develop in a transparent, healthy, and sustainable manner. He affirmed his belief that the sector will remain a vital engine of economic growth, urban modernization, and improved living standards, supporting the nation's long-term development goals.