HCM CITY — The Ministry of Public Security is inviting investors to develop a social housing project worth nearly VNĐ1.1 trillion (US$43 million) for police officers and personnel in HCM City, as the southern metropolis struggles to meet its ambitious housing goals.

According to a recent announcement by the ministry’s Construction and Barracks Management Department, the proposed project will be built on a 6,300-square-metre plot in Tăng Nhơn Phú Ward.

The 22-storey complex will include two basement levels and provide 477 apartments designed to accommodate about 1,000 residents. 

The total floor area is estimated at 61,000 square metres, with construction expected to begin at the end of 2025 and completion targeted for the second quarter of 2027.

Interested investors must submit proposals to the department by November 6, the ministry said.

Social housing push

The project is part of a broader national effort to expand social housing for low-income workers and members of the armed forces. 

Under the central government's targets, HCM City, following its recent administrative merger with Bình Dương and Bà Rịa-Vũng Tàu provinces, must deliver nearly 200,000 social housing units by 2030.

However, progress remains slow. As of this year, only 6,657 units have been completed, meeting just 6.6 per cent of the target. Of those, more than 3,400 are located in the former HCM City area, nearly 3,000 in the old Bình Dương region, and just over 300 in the former Bà Rịa-Vũng Tàu area.

The Department of Construction said that land clearance and compensation remain major bottlenecks, delaying or stalling multiple social housing projects.

Việt Nam’s social housing programme, first introduced more than a decade ago, aims to provide affordable homes for low- and middle-income earners, industrial workers, and public servants. 

Despite strong policy support, implementation has lagged behind demand, particularly in major cities such as HCM City, Hà Nội and Đà Nẵng, where soaring land prices, limited public land reserves, and low developer interest have hampered progress.

To address these challenges, the government recently announced several incentives, including low-interest loans, simplified approval processes, and public-private partnership models to attract investors. 

Yet, experts say more structural reforms and land-use flexibility are needed for the programme to gain real momentum.

Earlier this month, HCM City also announced the first sales phase of the Sonadezi Hữu Phước social housing development, offering apartments priced between VNĐ12.4 million and VNĐ14.2 million ($490-560) per square metre .

The project, comprising three high-rise buildings with 210 apartments, is being developed by Sonadezi Châu Đức JSC. — VNS