The Vietnamese government has already adopted some amendments and supplements to a number of articles under Decree No 100/2015/ND-CP on the development and management of social housing, with new regulations regarding capital, interest rates, loan terms for the purchase of social housing and land use planning for social housing development.

According to the latest regulations, the maximum loan amount for purchase and lease purchase of social housing is equal to 80% of the value of the purchase, lease purchase contract.

In case of building, renovating or repairing a house, the maximum loan amount is 70% of the estimate value or loan plan, but not exceeding VND500 million and 70% of the value of the security guarantee.

The loan term for the purchase and the lease purchase of social housing is allowed to be extended to 25 years at the highest from the first loan disbursement date.

Loan interest rates at designated credit institutions are determined and announced by the State Bank of Viet Nam based on the principle of not exceeding 50% of the average lending interest rate of commercial banks in the same period.

Commercial housing or urban area projects covering 2 ha and above in special urban centres, and those at Class I or at least 5 ha in urban centres at classes II and III, are required to earmark 20% of the total land area identified in competent agencies-approved detailed planning projects for social housing construction.

Reporting by TRIEU TUNG- Translating by A.T