The Vietnamese government is set to implement new regulations aimed at improving access to social housing for low-income citizens, military personnel, and civil servants effective August 1, 2024. This move follows the enactment of Decree 100/2024/NĐ-CP, which specifies eligibility criteria particularly focused on income limitations.
According to the Ministry of Construction, potential buyers must meet specific income thresholds to qualify for social housing schemes. For individuals, the gross monthly earnings must not exceed 15 million VND (approximately $630). For married applicants, the combined household income cannot surpass 30 million VND. This measure is aimed at ensuring the assistance reaches those most in need.
The regulations are particularly relevant for various groups, including low-income workers, civil servants, military personnel, and those affected by land reclamation without adequate compensation. These defined categories clearly delineate who can access the government's support for affordable housing.
Chinhphu.vn reported the Ministry's stance, stating, "The income for single applicants cannot exceed 15 million VND per month according to the wage table confirmed by their working unit." Such caps are intended to prioritize support for individuals and families struggling to secure decent living conditions amid rising living costs.
Many citizens have questioned how periodic adjustments to minimum wage levels might affect these income caps. For example, the recent increase of base salary from 1.8 million VND to 2.34 million VND has raised concerns about whether the threshold for social housing eligibility will likewise be adjusted. The Ministry clarified, stating, "...the income requirement for accessing social housing is pegged to wage earners' reported salaries and does not automatically change with base salary adjustments," ensuring stability for those involved.
Notably, the law distinguishes between various groups eligible for assistance. For example, military officers and civil servants have different income thresholds based on rank and position. An individual from the armed forces seeking social housing assistance must also confirm their earnings do not exceed the salary level associated with the officer rank of colonel, including allowances.
Trần Xuân Lượng, a Doctor of Real Estate from the National Economics University, expressed support for the government's approach: "The government's decision to allow businesses to invest in social housing is commendable; it empowers the private sector and optimizes resources through tax incentives and lower interest loans for development. This balance is likely to encourage more housing developments for those who need them most."
Potential buyers need to understand the characteristics of social housing as defined by Vietnamese law: it is typically priced lower than comparable commercial facilities, is intended for specific beneficiaries, and, after five years of transfer, can be sold or rented to others once the ownership conditions are fulfilled. This helps protect the original intention of providing affordable housing options to those who might otherwise struggle to enter the property market.
Critics argue it’s necessary to continue tweaking the regulations, ensuring they adapt to economic realities and the changing burdens faced by potential homeowners. The need for many workers and civil servants, especially those earning low incomes, is acute amid market volatility and inflationary pressures. The Decree 100/2024/NĐ-CP is seen as one step among many to create more accessible housing solutions.
Overall, the regulation brings clarity about whom the social housing policies aim to assist: the economically vulnerable, the military, public servants, and workers, all of whom play indispensable roles within society yet often lack adequate housing solutions. The anticipation surrounding these changes highlights the balancing act the government undertakes between regulatory assistance and market dynamics, ensuring the housing needs of its citizens are met effectively.