New mechanism to remove obstacles in old apartments

Earlier this year, the Ho Chi Minh City People's Committee approved the Project to renovate and rebuild old, damaged and degraded apartment buildings in the city, with the goal of basically completing the preparations for renovating and rebuilding pre-1975 apartment buildings by 2030.

Recently, the city continues to issue incentive mechanisms, hoping to remove difficulties to attract more investors to participate.

Vinh Hoi apartment building, Khanh Hoi ward (HCMC) has been seriously degraded for many years. Photo: THANH HIEN

Slow to move, insecure living

As one of 474 apartment buildings built before 1975, Pham The Hien apartment building, Chanh Hung ward has been seriously degraded for many years and is no longer safe.

According to SGGP Newspaper's reporter, many items were severely damaged, especially on the stairs where the iron was loose, cracked, the supporting columns had only the iron frame left in some places, and the walls were peeling.

Ms. Nguyen Kim Lan, living in block C, Pham The Hien apartment building, shared: “For many years, people here have had to live in fear of falling concrete on their heads. Now that it is the rainy season, we are even more miserable, partly because we are afraid of strong winds causing collapse, and partly because rainwater will seep into the ceiling, overflow into the hallway, and flow into the apartment. Although we are miserable, we cannot move elsewhere because the local government currently has no specific compensation plan.”

Regarding the deterioration of the Pham The Hien apartment building, Mr. Pham Quang Tu, Chairman of the People's Committee of Chanh Hung Ward, said that this apartment building consists of 3 blocks with 448 apartments, and has expired its use period. The People's Committee of the ward has informed the residents about the deterioration of the apartment building, and the ward has also repaired some damaged areas.

“The relocation of 448 apartments at Pham The Hien apartment building is part of the compensation, resettlement support and urban beautification project for the South bank of the Doi Canal, which will be implemented in the 2027-2032 period. The People's Committee of Chanh Hung Ward is coordinating with relevant units to plan the project implementation. After the project is approved, the People's Committee of the Ward will preside over and coordinate with relevant agencies to prioritize compensation and resettlement support to relocate these 448 apartments. The work of organizing payment and relocation of households will be completed in November 2026,” Mr. Pham Quang Tu informed.

Vinh Hoi Apartment Building, Khanh Hoi Ward was also built before 1975, has a scale of 4 floors with 244 apartments and has had a level D inspection result since 2017. Since the end of 2019, District 4 previously had a plan to relocate people out of the apartment building but has not yet completed it.

The apartment building is now in serious disrepair, with some areas of concrete peeling off in chunks and falling onto the ground floor corrugated iron roof in heaps. Warning signs have been posted in areas with weak structures. Mr. NVH, who lives on the ground floor of block C, lamented: “Here, chunks of wall and concrete are falling onto the street and corrugated iron roof continuously, causing many residents to lose sleep and appetite and fear that their houses will collapse.”

According to the representative of Khanh Hoi Ward People's Committee, the ward is relocating people to new temporary residences to ensure safety and inviting investors to carry out the project of renovating and building new Vinh Hoi apartment buildings. However, some people have not accepted the temporary residence plan.

Mr. Vu Anh Dung, Deputy Head of the Urban Development Department, Ho Chi Minh City Department of Construction, said that Resolution No. 17/2025/NQ-HDND stipulates incentive and support mechanisms for investors when participating in investment projects to renovate and rebuild apartment buildings in the area.

Accordingly, for projects to renovate and rebuild old apartment buildings approved by competent state agencies after August 4, 2025, investors will enjoy this preferential policy.

“Resolution 17/2025 is an additional support policy with the hope of attracting more investors to participate in renovating old apartments. In addition, with the direction of the Ho Chi Minh City People's Committee, currently almost all old apartment renovation projects have had their legal problems resolved so that investors can carry out the projects,” Mr. Vu Anh Dung shared.

More incentives for investors

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, informed that the Housing Law 2023 has provided basic solutions for the renovation of old apartments. The temporary residence mechanism in the renovation of old apartments is also synchronized in both the Land Law and the Housing Law, facilitating the demolition and reconstruction of buildings.

However, there are still problems with regulations and administrative procedures. While the costs of compensation, site clearance, and project construction are huge, the lengthy procedures make investors "discouraged" when participating in old apartment renovation projects.

Concrete columns were broken, leaving exposed iron at block C of Vinh Hoi apartment building. Photo: HOANG HUNG

To resolve the above problems, Mr. Le Hoang Chau hopes that Ho Chi Minh City will consider adjusting the planning for apartment renovation and construction projects. Specifically, increasing the land use coefficient, raising the maximum height, increasing the population size, and at the same time deciding on a reasonable construction density. In addition, increasing the number of apartments in the project is also a solution to attract more investors to participate in the project.

“HCMC is implementing Resolution 17/2025 on incentive and support mechanisms for investors participating in renovating and rebuilding old apartment buildings. The new mechanism will remove one of the biggest bottlenecks: investment capital, hopefully attracting more investors,” Mr. Le Hoang Chau expected.

Recently, at a meeting on the implementation of renovation and reconstruction of old apartment buildings, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong assigned the Department of Construction to preside over and coordinate with relevant agencies and units to review legal regulations on renovation and reconstruction of old apartment buildings; and advise on adjustments and supplements to the project implementation plan.

At the same time, the Department of Construction is requested to make a list of apartment buildings that need to be inspected and submit it to the Ho Chi Minh City People's Committee for consideration and decision; promptly send a document to the People's Committees of wards, communes and special zones to guide the unification of the budget estimate for apartment building inspection; preside over and coordinate with relevant departments and People's Committees of wards, communes and special zones to review and prioritize the repair of apartment buildings; ensure the safety of people's lives and property.

THANH HIEN

Source: https://www.sggp.org.vn/co-che-moi-thao-vuong-mac-ve-chung-cu-cu-post816525.html