Brian Jeffrey
Deputy Prime Minister Tran Hong Ha has called for an evaluation of finished but unoccupied resettlement housing projects to explore their potential conversion into social housing.
This directive came during a recent discussion aimed at reviewing Vietnam’s real estate sector, focusing specifically on the development of social housing options.
In Hanoi, numerous resettlement initiatives are situated in prime urban areas yet have remained vacant for over ten years. These ventures, which have consumed billions in funding, have fallen into disrepair during their lengthy period of neglect.
For instance, the Duy Tan Street initiative in Cau Giay District, backed by an investment of around USD 8.8 million (equivalent to VND 223 billion), was launched in 2010 but has remained untouched and unused for more than a decade.
Additional examples include a project in the Sai Dong Urban Area and another along Ly Son Street in Long Bien District—both well-equipped with infrastructure yet exposed to the elements and left unattended for many years.
One project with particularly promising prospects is Den Lu III in Hoang Mai District, boasting stunning views of Den Lu Lake, but it too remains empty.
Similarly, commercial projects designated for resettlement, such as the X2 project in Dai Kim Ward, Hoang Mai District, face the same challenges.
Despite being finished five years ago, only around 80 out of 750 apartments are occupied, leaving a significant portion unutilized—an enormous waste of potential.
In Ho Chi Minh City, the situation is even more critical, with nearly 9,000 resettlement apartments sitting idle.
In comments to VietNamNet, Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), expressed that transforming these resettlement apartments into social housing is a practical and necessary approach.
Chau noted that this idea has been contemplated in Ho Chi Minh City for several years but was hindered by a lack of legal clarity, as the Housing Law of 2014 did not offer specific guidelines.
Now, with the 2023 Housing Law in place, which contains explicit rules regarding resettlement housing—including development, allocation, management, and functional conversion—implementation can proceed smoothly.
“Many individuals reject resettlement apartments due to inconvenient locations and inadequate infrastructure and public services,” Chau pointed out. He stressed that any shift to social housing must ensure residents have straightforward access to transportation, essential services, and amenities. Local authorities must address these challenges during the conversion process.
Lawyer Truong Anh Tu, Chairman of TAT Law Firm, echoed this sentiment, noting that many land-reclaimed residents he has assisted declined to take resettlement units due to their isolation, lack of schools, and insufficient community amenities.
“These individuals opt to rent and maintain a modest lifestyle rather than abandon their livelihoods,” Tu explained. “This highlights that a technically sound apartment is not necessarily the same as a livable one.”
“A building devoid of residents, with no lights or sounds of children, regardless of its construction quality, signifies a social failure,” Tu added. “Building resettlement housing is merely the first step; it doesn’t fulfill the goal of providing secure and meaningful accommodations.”
