The Vietnamese government has selected Hanoi-based Vingroup to construct 500,000 affordable housing units, reviving its goal of delivering one million homes by 2030. This follows significant delays, as only 66,755 units, seven percent of the planned total, have been completed since 2021.

Originally, 428,000 units were expected to be finished by 2024, but progress has been hindered by lengthy tendering processes, administrative challenges, land acquisition issues, and delays in funding. The initiative aims to address rising housing costs and the shortage of affordable homes in urban areas, particularly for factory workers and low-income families.

The government also views this housing expansion as a strategy to counteract its declining working-age population, which has been shrinking annually since 2014. Officials argue that improving living conditions could encourage larger families, especially following the removal of the two-child policy.

Vietnam’s housing plan is seen as a crucial step toward managing the country’s demographic transition.

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