Ho Chi Minh City proposes incentive mechanism to remove bottlenecks in renovating old apartments

The Ho Chi Minh City People's Committee has just submitted to the City People's Council a preferential mechanism with a series of financial support policies for investors in old apartment renovation projects, including support of 50% of technical infrastructure costs and relocation costs.

At the 2nd session of the 10th term Ho Chi Minh City People's Council (2021-2026) on the morning of July 24, the Ho Chi Minh City People's Committee submitted to the City People's Council a proposal on preferential and support mechanisms for investors participating in projects to renovate and rebuild apartment buildings in the area.

According to the People's Committee of Ho Chi Minh City, since 1999, Ho Chi Minh City has had a policy to repair and rebuild seriously degraded apartment buildings and collective houses. Then, based on Resolution No. 34/2007/NQ-CP of the Government , since 2008, Ho Chi Minh City has implemented a Plan to renovate and rebuild old apartment buildings.

Leaders of Ho Chi Minh City and delegates of the Ho Chi Minh City People's Council attended the meeting. Photo: VIET DUNG

For many years, Ho Chi Minh City has directed departments and localities to make efforts to speed up the renovation and construction progress to replace degraded apartment buildings, ensuring safety for residents, and at the same time serving the goal of urban beautification. In particular, since 2015, this content has been included in the Resolution of the 10th Ho Chi Minh City Party Congress (term 2015-2020), with the goal of "by 2020, completing the demolition and investing in new construction of at least 50% of the 474 old apartment buildings built before 1975".

However, the implementation progress is still slow and has not met the set requirements. Therefore, based on the Housing Law 2023, Decree No. 95/2024/ND-CP and Decree No. 98/2024/ND-CP of the Government, the People's Committee of Ho Chi Minh City believes that it is necessary to soon issue a resolution on incentive and support mechanisms to encourage investors to participate in projects to renovate and rebuild apartments.

According to the content of the submission, the People's Committee of Ho Chi Minh City proposed specific support policies as follows:

Support 50% of the investment cost for technical infrastructure within the project scope but not exceeding 10 billion VND/project. In which, the supported technical infrastructure includes: traffic system connecting the project, power supply and public lighting system, communication system, water supply and drainage, wastewater treatment, solid waste management and public sanitation system. Not applicable to technical infrastructure located inside apartment buildings.

At the same time, support 50% of relocation costs, forced relocation of residents according to the decision of competent authorities, to reduce the initial cost burden for investors.

Applicable subjects include: Investors (enterprises and organizations selected as investors of apartment building renovation and reconstruction projects as prescribed in Point d, Clause 1, Article 63, Point b, Clause 6, Article 73 and Point b, Clause 4, Article 74 of the Housing Law); supported projects are apartment building renovation and reconstruction projects under Clause 1 and Clause 2, Article 3 of Decree No. 98/2025/ND-CP of the Government.

The support policy is disbursed after the investor completes the acceptance of the infrastructure project or supports relocation costs when the relocation plan is approved. Projects eligible for incentives are those approved for investment after the resolution takes effect.

Preferential funding sources will be arranged from the regular expenditure budget of Ho Chi Minh City, through estimates managed and inspected by the Department of Construction for the value of supported construction items.

The Ho Chi Minh City People's Committee said the resolution's goal is to ensure constitutionality, legality, and consistency with the legal system, while creating a special mechanism to speed up the renovation and reconstruction of old apartment buildings, contributing to urban beautification and improving the quality of life for people.

CAM NUONG - AUTUMN HUONG - NGO BINH

Source: https://www.sggp.org.vn/tphcm-de-xuat-co-che-uu-dai-go-nut-that-cai-tao-chung-cu-cu-post805170.html