Vietnam's Prime Minister Le Minh Hung Pushes for Long-Term Rental Housing Model in Hanoi

On 25 May 2024, Prime Minister Le Minh Hung chaired a meeting with Hanoi People’s Committee and the Ministry of Construction to launch a rental housing scheme. Hanoi, as pilot, will integrate rental projects into urban land-use plans and set 15-20-year lease standards without land-use fees. The Prime Minister said expanding affordable rentals for workers, students, civil servants and armed-forces personnel would ease home-purchase pressure and rebalance the market.

PM stresses the need for people to have rental housing

Hanoi provides 14,351 rental units, about 33 % of its social-housing stock. The city’s target exceeds 560,000 units, with roughly 156,000 completed. The Prime Minister called for an assessment of demand by group and segment to identify shortfalls.

PM suggests developing long-term rental housing model in Vietnam

The state will not subsidise housing but will waive land fees during construction and cover only construction and maintenance costs; Ministries of Construction and Finance, with State Bank, must draft credit policies and mechanisms for businesses to acquire housing stock for leasing. Capital and long-term financing are sought to avoid over-reliance on the state budget.

The State does not subsidize housing but also does not let the market self-regulate

Hanoi must submit a project plan to Prime Minister by June 2026. The Ministries of Construction and Finance will propose acquisition mechanisms for rental-focused housing. The State Bank will present credit proposals by July 2026, and groundbreaking is slated for June 2026 for investment.

The State does not subsidize housing but also does not let the market self-regulate

If stable, priced rental units become available for 15-20 years, the Prime Minister expects a decline in home-ownership demand, easing price pressures in the sale market and fostering a balanced real-estate sector across urban corridors.

PM suggests developing long-term rental housing model in Vietnam

• “It must be based on Hanoi's urban and rural planning. First of all, since we haven't been able to mobilize social and private resources, the State should invest money and focus on construction. The Ministry of Construction should coordinate with Hanoi to establish regulations and standards. During the construction period, the State will not collect land fees, only construction costs will be considered, and then related costs, including future operation and maintenance costs, will be accounted for. If a 15-20 year lease commitment is provided, the need to own a house will be significantly reduced,” — Le Minh Hung, Prime Minister of Vietnam

PM stresses the need for people to have rental housing

• “The Prime Minister pointed out that if citizens are ensured stable rental housing for 15–20 years at reasonable prices, pressure on home purchases would significantly decrease, helping to rebalance Hanoi’s property market.” — Le Minh Hung, Prime Minister of Vietnam

PM suggests developing long-term rental housing model in Vietnam

• “The State plays a constructive role through institutions and policies, including land policies, planning and financial - credit tools for the market to develop healthily and transparently.” — Le Minh Hung, Prime Minister of Vietnam

The State does not subsidize housing but also does not let the market self-regulate

• “The State may participate in developing housing stock without land-use fees, while rental prices would be calculated based on construction, operation and maintenance costs.” — Le Minh Hung, Prime Minister of Vietnam

PM suggests developing long-term rental housing model in Vietnam

Sources do not disclose the exact amount of state funding earmarked for rental projects, nor provide detailed timelines for private-sector participation. Data on projected rental pricing formulas and the scale of anticipated private-capital inflows remain unspecified.

Hanoi chosen to pioneer rental housing models