Despite rising demand for affordable housing, particularly in major cities like HCMC and Ha Noi, the supply of social housing remains severely constrained by a range of structural and systemic challenges.

Growing Demand, Limited Supply

According to the Ministry of Construction, to meet the needs of low-income workers and industrial labourers, Viet Nam will need at least one million social housing units by 2030. In HCMC, where the population exceeds 9.5 million and includes a significant migrant workforce, affordable housing is not just a social priority but a pressing necessity.

The city has made visible efforts to address this, investing in worker accommodations and social housing projects. Yet, while there’s an oversupply of commercial and high-end residential units, the social housing segment remains markedly underdeveloped.

“In HCMC, the need for low-income and social housing is a consistent policy focus,” says Dr. Su Ngoc Khuong, Senior Director of Investment Advisory at Savills Viet Nam. “However, the actual supply on the ground is far from adequate, hindered by planning issues, land availability, and transportation infrastructure.”

A Complex, Multidimensional Challenge

Dr. Khuong notes that even completed social housing projects are often left unoccupied, a result of three missing pieces: insufficient technical infrastructure, weak social infrastructure, and underdeveloped urban economic conditions. “Social housing isn’t just about land availability,” he stresses. “It’s a complex, interdisciplinary issue rooted deeply in social planning and policy.”

In addition to infrastructure concerns, rising construction costs and a lack of new supply have driven prices up on the secondary market. Many units are now resold at double or even triple their original price within just a few years, making access even harder for the intended beneficiaries.

“Globally, we’ve seen governments take a more active role in shaping and regulating the social housing sector,” Dr. Khuong explains. “Viet Nam’s government has made commendable efforts, launching national housing initiatives and social housing funds. But with land resources constrained and demand far outstripping supply, the gap remains difficult to close.”

He also points to planning inconsistencies and an imbalanced market dynamic, where social housing fails to reach those who truly need it. The Ministry of Construction recommends 25–30 sqm of living space per person in first-tier cities, however, that standard is rarely met.

Unlocking the Market: What’s Needed Now

To build a more sustainable social housing ecosystem, Dr. Khuong advocates for a more structured and supportive framework, with clearly allocated land quotas, assigned development responsibilities based on measurable KPIs, and streamlined legal, financial, and operational hurdles for developers.

“If we can remove these obstacles, particularly around credit access and preferential lending for eligible developers and homebuyers, we can begin to secure a more stable pipeline of supply,” he adds.

Dr. Khuong also warns of broader societal risks if housing affordability continues to decline. “Without adequate shelter, urban populations face mounting socio-economic stress. For developing countries, this is a critical challenge with long-term implications.”

Without decisive, coordinated action, the housing challenge in Viet Nam’s urban centres may persist well beyond the current decade. Social housing must be recognised not only as a welfare response, but as a foundational pillar of sustainable urban development, providing not just shelter, but a stable base for living, learning, and working.