Phát triển thị trường nhà ở trên địa bàn thành phố hà nội đến năm 2030 tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

NGUYEN NGOC TIEP

DEVELOPING HANOI'S HOUSING MARKET
REWARD TO 2030

Major:
Economic Management
Major Code: 9.31.04.10

SUMMARY OF ECONOMIC DOCTORAL THESIS

Hanoi, 2019


Thesis completed at:
GRADUATE ACADEMY OF SOCIAL SCIENCES
VIETNAM ACADEMY OF SOCIAL SCIENCES

PhD Advisors:
1. Dr. Nguyen Dinh Duong

2. Assoc.Prof.Dr. Bui Van Huyen

Reviewer 1: Assoc.Prof.Dr. Phi Manh Hong
Reviewer 2: Assoc.Prof.Dr. Ngo Tuan Nghia
Reviewer 3: Dr. Nguyen Ba An

The dissertation will be protected before the Thesis Evaluation Board at

the Academy, at: GraduateAcademy of Social Sciences, 477 Nguyen
Trai street, Thanh Xuan district, Hanoi

At … day ... month .... year

The dissertation can be found at:
-National Library
-Graduate Academy of Social Sciences Library


INTRODUCTORY
1. The neccessary of study
Housing is one of the essential and necessary needs of people at
any stage from history to modernity. Maslow's Needs Tower has
identified the need for housing on the first floor of the tower, to assert
that this is one of the essential needs, which must be guaranteed for every
human being. The satisfaction of human housing needs is met in various
forms, including self-construction of houses or through the purchase and
sale of goods in the current commodity market.
During the 30-year renovation process in Vietnam in general and
in Hanoi in particular, the housing market has been gradually formed and
developed at a fast pace, contributing to quickly meet the housing needs
of the people and contribute contribute significantly to the economic
growth of the country and the City, increasingly becoming one of the key
parts of the economy. The newly formed real estate market is still
developing unstable, potentially with many risks; spontaneous real estate
development, according to the movement, is still popular when the
development is uncontrolled, there are times when there is no transaction.
The structure of housing goods on the market has not met the needs of
the society. The number and structure of houses is limited, there are not

many housing models suitable to the living needs of the people in the
process of modernization, urbanization and integration. The market is in
surplus of high-class and large-sized housing products with high selling
prices, but lacks middle and low-priced housing products to meet the
needs of the majority of urban population, leading to the loss of the
market balance. The process of formation of the housing market also
causes inadequacies in urban management and development, creating a
modern civilized space (in case of Hanoi city). Trading and trading
activities in the market have inadequacies in information, quality, support
services, payment methods ... so the development has many spontaneous,
deviant and inadequate factors of the market constraints. The real estate
market develops without effective control from state agencies, especially
at local state management agencies ...

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In big cities like Hanoi and Ho Chi Minh city, the urbanization
rate is fast, the proportion of urban population is high but rural
population is still relatively high; The growth rate of mechanical
population into Hanoi urban area is increasing, in which the proportion of
middle-income migrants still accounts for the majority (the proportion of
migrants under the age of thirty in Hanoi is 68.7%) impose rapidly
increasing housing demand in both quantity and quality, putting pressure
on the housing market, especially low and middle price housing. Hanoi
capital is the political - economic - cultural center of the country, has a
rapid urban development speed compared to many localities across the
country, currently the city has nearly 750 housing development projects,
New urban area is under development; Hanoi is also a very developed
locality of trade and service industries, focusing on many industrial parks

and businesses in the area creating many job opportunities and improving
people's lives (average income per capita). Hanoi's people reach about
3,900 USD/year). The characteristics of the population and labor of
Hanoi are also much different, the group of middle and low-income
workers also live in the central area; transferring righteous labor from
suburban workers to the center of Hanoi for services; labor in other
localities returning to Hanoi to work in industrial parks, businesses and
service industries. At the same time, the old housing types in the inner
areas of Hanoi also occupy a large proportion with the dormitories
formed during the subsidy period, each apartment with a small area has
been expanded and the quality degraded persisted for a long time.
Therefore, it can be affirmed that the demand for housing types for
medium and low income groups in Hanoi is huge.
The operation of the housing market in Hanoi, in addition to
general characteristics, has its own characteristics compared to other
cities in the country. The types of affordable housing suitable for the
majority of the population such as social housing, affordable housing are
lacking while high-class housing projects, real estate types have high
profitability such as villas, townhouses, shophouses, condotels is highly
developed by many investors due to its large profits. The healthy
development of the housing market will positively affect other markets

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and contribute to social stability. Therefore, the study of the topic
"Developing Hanoi’s housing market reward to 2030" is an urgent issue
both theoretically and practically.
2. Objectives and task of the study
2.1. Objectives of the study

On the basis of systematizing theoretical issues on the housing
market, the thesis analyzes and assesses the real situation of the housing
market in Hanoi in order to propose the main directions, tasks and
solutions to develop Hanoi’s housing market will be healthy and
effective reward to 2030.
2.2. Task of the study
- Systematize and clarify theoretical issues about the housing
market as a theoretical basis for research and assessment of the housing
market in Hanoi.
- Researching the housing market development experience of a
number of cities in the world and a number of concerns in the country,
thereforce drawing lessons for Hanoi city on housing market
development.
- Researching and assessing the current situation of the housing
market, mechanisms and policies to develop the housing market,
especially social housing and low-price commercial housing in Hanoi in
recent years, to clarify achievements and limitations.
- Proposing solutions to develop Hanoi’s housing market reward
to 2030.
3. Subject and scope of study
3.1. Subject of study
Housing market, the thesis focuses on the mid- and low-priced
housing market segments such as medium and low-priced social housing
and commercial housing. This type of housing has a great demand in
Hanoi, the main object is the urban households with average income;
laborers in rural Hanoi; laborers from other provinces come to Hanoi to
work, live and socially disadvantaged groups, but the supply is low.
3.2. Scope of study

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- Regarding the space: The thesis focuses on study in Hanoi
capital.
- Regarding the time: The thesis study in the period from 2008 to
2018 and orientation to 2030.
- Regarding the contents: The thesis focuses on developing
Hanoi’s medium and low price housing market.
4. Methodology and study methods
4.1 Methodology
Researching on the housing market, the author focuses on five
main research topics. From identifying the research object will have to
clarify what is the concept related to the object? Analyze and evaluate the
development of the market through studying the constituents (in each
element, it will analyze its own characteristics related to this type of
market), combined with the impact factors that The focus is on analyzing
the role of state management in the housing market in general and the
middle and low price housing market in particular. From there, proposing
and proposing solutions to healthy development of the housing market,
focusing on proposing solutions to the low- and medium-price housing
market.
4.2 Specific study methods
4.2.1. Approach
- Approaching history
- Approaching objects
4.2.2. Comparative method
Refer to models and experiences of countries in the world on
housing market development. Refer to the advantages of developed
countries in the management model, supporting policies, understanding
the needs of the people, the way the government regulates the market ...

At the same time, comparing the appropriate points with applicability to
the real situation in Hanoi.
4.2.3. Statistical methods
Statistical documents related to the housing market in general
and the market of medium- and low-prices in particular, which focus on

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the State's policies related to housing issues, market development in
Hanoi.
4.2.4. Interview method
Interviewing twenty experts - managers, ten enterprises invest in
building housing projects.
The interview focused on the following contents: guidelines,
policies, state management, market demand, housing selection trends,
development perspectives, experience, suggestions ...
4.2.6. Survey
* Survey: The purpose is to find out about the problems people
face in living in these areas, desires for living conditions in housing
areas and other arising issues. Assess the needs, desires and aspirations
of people in social housing.
- Distribute one hundred and fifty questionnaires to people living
in five social housing projects.
- Time scale: from March to November 2018
* Field survey: This project option is located in different
locations that are representative of local communities in the area and
have a high density of people living there. The survey was conducted in
five social housing projects and two medium- and low-price commercial
housing projects. The purpose of evaluating the current quality of

housing projects, infrastructure service works to serve the life of people.
Infrastructure around, connecting the traffic of the area with the
surrounding, the livelihood of people living in these areas.
5. New contributions of the thesis
- Research to contribute to affirming the indispensable and
objective development of the medium- and low-price housing market in
the short and long term. Medium and low-priced housing is also a
commodity, which needs to be developed according to the market
mechanism, in the period until 2030, this commodity is a special
commodity of Hanoi’s housing market.
- To contribute to clarifying the particularities and peculiarities
of the housing market in the developing Hanoi period, the State's support

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is required for this market not only to motivate the market but also help
the market achieve its sustainable development goals.
- Proposing a system of new perspectives and solutions, with a
focus on state management solutions to develop the housing market,
which focuses on developing the medium- and low-price housing market
in the coming period consistent with the needs of society.
6. Significance of the study
* Theoretical significance of the study
The thesis contributes to clarify current theoretical issues,
research on housing market development as the basis for strengthening
the state management of the housing market.
* Practical significance of the study
Contribute to an overview of the current housing market
development situation, including the assessment of the medium- and

low-price housing market segment in Hanoi in recent years.
The thesis is a useful reference for researchers; Helping policy
makers and management agencies to consult in the process of making
policies and managing the development of the housing market in Hanoi.
7. Structure of the thesis
Apart from the preamble and conclusions, the contents of the
dissertation are presented in four chapters:
- Chapter I. Overview of research situation related to dissertation
topic;
- Chapter II. Theoretical and practical basis on the housing
market;
- Chapter III. Current situation of housing market development in
Hanoi;
- Chapter IV. Major solutions to develop Hanoi’s housing market
reward to 2030.

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CHAPTER I. OVERVIEW OF RESEARCH SITUATION
RELATED TO DISSERTATION TOPIC
1.1. Case study international and Vietnam
Reasonable housing is not a new concept, this phrase has been
mentioned by developed countries around the world such as the United
States, England, and Canada from the 1960s and 1970s of the last
century. Later, these related concepts began to spread to developed
countries in Asia, where the population density is high, such as Japan,
Korea, and Singapore.
Studies of successful cases around the world show:
- Housing - especially housing for the disadvantaged is subject to

many countries' interest with appropriate policies and mechanisms. From
developed countries in the Americas, Europe to newly developing
countries in Asia, the Government has specific policies on housing for
different types of people in society.
- Housing are researched and built with a variety of models, with
always paying attention to types of houses for rent. In Northern European
countries, the psychology of homeownership of people is relatively more
open so the trend of renting housing is very developed. (Housing for rent
in France accounts for 18%, the Netherlands for 36%, the UK for 22%).
Especially, this issue is quite common in Europe and the Americas,
where people do not attach much importance to the need to own houses.
- In countries with developed market economies, the budget for
investment and reconstruction of housing funds usually accounts for 2325% of the total investment for development of the national economy (in
the US nearly 30 %), about 20-25% from other sources, the rest belongs
to private capital.
For Vietnam, the real estate market has its own characteristics
due to the people's ownership of land and state management policies.
Therefore, there are many research works of typical authors such as Dinh
Van An, Le Xuan Ba, Thai Ba Can, Tran Nguyen Nam, Tran Kim
Chung, Hoang Van Cuong, Bui Van Huyen, Dinh Thi Nga ... Studies of
domestic scholars show the following issues:

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- Exemption of some taxes, land use incentives for businesses
involved in the construction of social housing, housing for low-income
objects in society;
- Promote the model of social insurance for lease, which supports
tenants at a price equal to 50% of the market price;

- Developing housing for low-income people in the form of highrise houses for urban centers with limited land fund;
- Need to carry out well the planning of housing development
areas, the state participates in closely monitoring the process of
implementing social housing projects according to the standards and
standards.
- State intervention plays a very important role in ensuring the
prospect of developing the low-price housing market in accordance with
the needs of the people.
1.2. Researches on real estate and housing markets in Hanoi
Some of the studies close to the object of the thesis are as
follows:
- Author Le Thi Bich Thuan has presented models of
resettlement housing development in some countries around the world.
At the same time, assess the effects of resettlement policy in urban
development process in Hanoi. Also studying the group of difficult
people in housing, author Nguyen Van Trinh has generalized the
inadequacies of housing issues for workers in industrial parks today in
the country.
- Dr. Hoang Xuan Nghia and Dr. Nguyen Khac Thanh evaluated
the shortcomings and inadequacies in the quality of housing projects of
low-income people in Hanoi. From the assessment of the current
situation, the author has proposed solutions to housing for low-income
people in Hanoi in a socialist-oriented market economy.
- Dr. Trinh Kim Lien and his colleagues have conducted a study
on urban housing products in Hanoi, thereby evaluating the structure of
commercial housing products in Hanoi City in the period of 2008-2012.
At the same time, it pointed out that the structure of housing products
was still unreasonable, houses for commercial purposes were strongly

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developed and had large numbers, while social houses and student
houses occupied a billion Small scale, low quality.
- Mr Do Thanh Tung also presented the reality of financial
policies to enable medium and low-income people in Hanoi to have
access to long-term capital to own and improve create housing.
- In order to develop social housing, two issues need to be
harmoniously solved: the mechanism for managing stimulus capital from
the state budget and how to choose the beneficiaries of social housing
incentives. In addition, there should be effective measures to promote the
development of public-private partnerships, attracting capital sources to
develop the housing market for low-income people, which is currently
concerned by the whole society. Author Nguyen Thi Thu Nguyet
suggested an aspect in proposing solutions to attract resources involved
in housing development such as: (1) Government to support private
participation; (2) Government imposed on private parties; (3) Subsidies
for low-income people; (4) Control of subjects and (5) Distribution of
houses.
1.3. Research gaps
Realizing that research on market types in general, of which
research on the real estate market is quite rich and studied elaborately by
many authors. However, research on a small segment of the real estate
market such as the low and medium price housing market is small. This
is the theoretical gap for the middle and low price housing market, which
needs to be supplemented.
In fact, the study of policies or models of low-income housing in
Hanoi has also been conducted by many authors. In particular, research
on the low and middle price housing market (including social housing
and affordable commercial housing), an overview of the supply-demand

relationship of the market put in the State control is not yet available.
This is a practical gap that needs to be researched and clarified.

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CHAPTER II.
THEORETICAL AND PRACTICAL BASIS ON THE
HOUSING MARKET
2.1. Some basic concepts
2.1.1. Concepts
From the references, the thesis defines the definition of mediumand low-price housing as “Construction for residential purposes, with
priority given to groups of people with medium- and low-income in
society ”and“ The medium- and low-price housing market is the place
where transactions of construction for residential purposes take place,
with priority given to medium- and low-income groups in society”.
2.1.2. Characteristics and roles
The housing market has the following characteristics: Real estate
goods in general and goods in housing in particular have certain
characteristics; The user is for the entire population, the whole society,
anyone needs a place to live; The subjects provided are two State entities
and all individuals and organizations from all economic sectors; There
State controls the housing market.
The housing market has three main roles: Playing a role in
solving housing problems, creating opportunities for people to have
housing; Having a role to promote economic development; Promote the
development of civilized and modern cities.
2.2. Factors constituting and affecting the housing market
development
2.2.1. Market demand

The housing market demand is the total amount of goods
(housing) that buyers want and are willing to buy in proportion to their
ability to pay at each price level.
Demand factor for the medium- and low-price housing market is
simple, not too high, the object is also easy to accept if it meets the
minimum requirements in daily life.
2.2.2. Market supply
The housing supply in the market is the quantity of completed
houses sold by the seller in the specified period of time.

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The supply factor in the low and middle price housing market is
unique in comparison with other markets, provided by three different
types of entities, but all are lower prices by many different methods to
suit people. buy; execute the project in a short time and the construction
quality is acceptable, the projects are provided at locations far from the
center and legal regulations are needed to support market participants.
2.2.3. Price
Housing prices on the market are an aggregate economic
indicator reflecting the results of using building materials, materials,
human labor and capital invested by enterprises to implement housing
projects.
The price factor in the market of medium- and low-price houses
has its own characteristics, the price of apartments sold is not too high, in
the solvency of the majority of the population; For each type of audience,
each age group will have different appropriate prices.
2.2.4. Real estate brokerage
Regarding real estate brokerage, including official brokerage

services and informal brokerage services. Official brokerage service is an
organization or individual providing real estate brokerage services
according to Law on Real Estate Business.
For low-cost commercial housing, this type of housing people
can freely buy, sell and exchange on the market through brokers or
actively from customers. For types of social housing, people wishing to
buy houses are not free to buy and sell at the real estate exchange.
2.2.5. Market news
The medium- and low-price housing market news is all
information related to this market, including information on: law; land
policies, master plans, plans on land use, information on housing
projects, environment, demands, supply levels, psychology, and habits of
buyers in a given space and time.
2.3. State management of the housing market
2.3.1. Promulgating policy and legal documents
The State issues regulations on the order and procedures for
buying and renting houses of various types, creating favorable legal

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frameworks and corridors for well-developed markets, meeting the needs
about the houses of the whole society. At the same time, the state is also
oriented in the development and issuance of relevant development
programs and plans to develop housing supply to the market.
2.3.2. Planning
The State has shown its management role through activities to
direct functional agencies to implement necessary measures to stabilize
the real estate market; elaborate and promulgate housing development
programs and plans; land use plannings and plans to promptly supply

information to agencies, organizations and people for a clear
understanding; information on investment activities in infrastructure
development; approved real estate projects; Project investors are eligible
to raise capital according to regulations in order to ensure market
information transparency, prevent fraud, speculation and blow up real
estate prices to gain illicit profits.
2.3.3. Economic policy - finance, tax rates
The State applies economic and financial polices and various
types to improve the effectiveness of state management of the housing
market such as financial policies to support the market, pricing and
issuance of frameworks. housing prices, using tax rate and interest tools.
2.3.4. Implementation
For the housing market, the State performs a management role
through organizational structure, carrying out inspection and supervision
activities to adjust relationships in the market. The objective of state
management for this market is to ensure the stable and healthy
development of the market, contributing to the overall stability of the real
estate market.
2.4. Lessons for Hanoi City
2.4.1. Experience of countries oversea and Vietnam
- Experience in real estate market development in general and
housing market in particular of Germany, Finland, Southeast Asia.
- Experience in state management with the medium- and lowprice housing market of USA, France, Asian.
- Experience of Ho Chi Minh City.

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2.4.2. Lessons for Hanoi City
- Housing is the object of interest by many countries with

appropriate policies and mechanisms. From developed countries in the
Americas, Europe to newly developing countries in Asia, the
Government has all set specific housing policies for different types of
people in society.
- Housing for all in the society have been researched and built
with a variety of models in which always pay attention to types of houses
for rent. In Northern European countries, the psychology of
homeownership of people is relatively more open so the trend of renting
housing is very developed. Psychological change, conception of housing
ownership of Vietnamesee, especially those living and working in Hanoi,
need a lot of time and need the impact to change comprehensively about
thinking and receiving. wake of people.
- In countries with developed market economies, budget capital
for investment and reconstruction of housing funds usually accounts for
23-25% of the total investment for development of the national economy
(in the US near 30%), about 20-25% from other sources, the rest belongs
to private capital.
- All countries are interested in ensuring the quality of housing
projects for the poor and low-income people in society.
- Increase supply to the market through diversification of
investment capital sources, mobilization of all resources for social
housing.
- Promote the preferential support for buyers, not just for
investors as today, to stimulate the needs of people with real housing
demand and create attractive demand for the market.
- Forming organizations providing professional information
about the market to people and functional agencies to monitor and
quickly grasp the needs of the market.
- Use new technologies and designs in order to save cost of
finishing works, reduce selling prices of apartments for people but still

have to ensure quality works.

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CHAPTER III.
CURRENT SITUATION OF HOUSING MARKET
DEVELOPMENT IN HA NOI
3.1 Overview of the urban socio-economic situation
3.1.1. Economic situation
In the period of 2008 - 2018, GRDP increased by an average of
7.41% per year. The investment environment in Hanoi has improved,
businesses are focused on supporting the Government, solving many
difficulties in the process of operation.
Many measures have been taken to attract domestic and foreign
investment. The creation of conditions for foreign businesses to invest in
Hanoi has also opened opportunities for real estate investors and
businesses. The economic development speed of the Capital in recent
years has brought many opportunities but also created a lot of pressure on
the real estate market in general and the housing market in particular.
3.1.2. Socio situation
The population concentration in the inner city area is increasing,
accounting for 45% (3,498,756 people) compared to the total population
of the city. The increasing population in inner-city areas not only creates
pressure on addressing housing needs for people, but also creates
difficulties and pressing for the system of social infrastructure works.
Addressing housing issues for many sectors, with the cultural level and
lifestyle from many regions has also created characteristics of housing
demand in Hanoi.
3.1.3. Urban situation

The condition of modern and synchronous infrastructure also
helps the distance between housing projects connecting to the downtown
area quickly and conveniently. Compared to many other localities, the
transport infrastructure of Hanoi is relatively developed, the urbanization
process has taken place, thereby creating a spillover for the housing
market to many regions. The middle and low price housing market in
Hanoi has its own advantages, but due to the characteristics of the large
area, the inadequacy between the infrastructure of the old residential area
and the new development area also affects. quality of a number of

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housing projects, thus creating a negative sentiment among people of
medium and low price housing types in areas far from the center.
3.2. Situation of the housing market in Hanoi
3.2.1. Market demand
The demand for medium- and low-price housing for Hanoi
people is very large, can account for 35-40% of the needs of the whole
city’s population but at present this demand has not been met.
Between 60 -70% of customers visiting real estate exchanges are
interested in apartments with medium and low prices. Most of them are
young couples and families with low and middle income with the desire
to buy apartments that are affordable. Hanoi City is the locality with the
second highest demand after the City. Ho Chi Minh City with 110,000
apartments by 2020.
Through the author's survey in four social housing projects in the
area, the author also noted the reasons that people are interested in when
they want to buy apartments of social housing projects. to live in turn
according to the order is: In accordance with the solvency, payment

(90.5%); Quality of housing construction (87.6%); Convenient
transportation (84.7%); Reasonable distance to the workplace (67.4%);
Near markets (54.1%); Near schools (47.7%).
3.2.2. Market supply
The supply of medium- and low-price housing market in Hanoi
is made up of three main target groups:
(1) The State: The State implements housing projects for policy
beneficiaries and people facing difficulties in housing in the City through
various types of social housing projects, official residences, re-housing
projects. settlement, housing for workers. Besides, Hanoi is currently
implementing five large-scale social housing projects, namely Tien
Duong commune, Dong Anh district (73.23ha); Co Bi and Gia Lam
communes (39.12 ha); Ngoc Hoi commune, Thanh Tri district and
Thuong Tin district (44.62ha) and Dai Mach commune, Dong Anh
district (116.7 ha).
(2) Enterprises: in the medium- and low-price housing market,
enterprises participate in providing housing for people in two forms:

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firstly, social housing, which comply with the provisions of law on
housing development. socially and publicly offered so that qualified
people can submit a purchase application; The second is the enterprise
investing in low-cost commercial housing projects, which are not the
same as social housing which are not entitled to preferential policies of
the State. Investors of these projects follow the market mechanism,
meeting the society's needs for this type of housing.
(3) People build their own houses: now this model is very
popular with single households and young households because they do

not have enough economic power to access to official housing projects
on the market. In the city, a small-sized apartment building has appeared
to address the demand for housing for the above subjects.
3.2.3. Market price
Compared to commercial housing projects, apartments in the
medium and low segments have lower costs, consistent with the majority
of people in Hanoi. On the market today, medium- and low-price
apartments are offered for sale at an average price of 14-16 million per
square meter (social housing) for projects with prime locations, prices
from 10-12 million per square meter for projects in more remote
locations.
The author's survey of people living in some medium and low
cost housing projects, the price is suitable with the solvency and is most
wanted to buy is from 700 million - 1 billion / apartments (accounting for
29.1%).
3.2.4. Real estate brokerage
In Hanoi, any type of high-end, mid-end or affordable housing
project is distributed through two forms: formal brokerage and informal
brokerage. In Hanoi, there are more than 500 registered real estate
exchange. However, only about 200 businesses are operating or
operating effectively.
3.2.5. Market news
At present, the responsibility of providing housing market news
in general, low-cost housing in particular belongs to enterprises and state
management agencies (Hanoi People's Committee & Department of

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Construction - the city's specialized department in charge of this field).

Investors are always guaranteed to publicize information on the websites
of enterprises, at the headquarters and at the trading floor of the investor's
projects.
3.3. State management of the housing market
3.3.1. Promulgating policy and legal documents
The Hanoi government has also issued policies to encourage and
encourage housing development investment through incentives for each
project or businesses. Not only interested in supporting businesses
through the construction of commercial housing projects to recover
capital quickly, The Government is also interested in housing
development for those who are difficult to access housing such as:
officials and workers.
The Law on Capital has mentioned housing development and
management. It clearly states that "In commercial housing development
projects, new urban areas must reserve a higher proportion of residential
land and housing areas for social housing development than the national
regulations" .
The People's Council of Hanoi City stipulates that projects for
development of commercial houses and new urban centers in areas with
land use scale of ten hectares or more must reserve 25% of the residential
land area or 25% housing area for social housing development.
Hanoi City has reviewed and reformed administrative procedures
in the field of investment, land management, construction permits,
certificates of house ownership and land use rights.
3.3.2. Planning
Hanoi master plan has also set the direction for housing
development to 2030 as follows: the average area of houses in urban
areas must be at least 30m2 of use floor per person and dark rural houses
minimum of 25m2 of use floor per person. Inner-city areas, improving
living conditions in old quarters, apartments, controlling construction

density and height, adding public functions, trees and technical
infrastructure.
Housing development program for the period of 2012-2020,

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Hanoi has developed a Housing Development Plan for the period of
2015-2020, which determines the actual demand for social housing by
2020, increasing by nearly 50% compared to with the Government's
Housing Development Program, which involves about 40,000 people
shifting from worker housing to social housing purchase.
3.3.3. Economic policy - finance, tax rates
Hanoi City has guided and created favorable conditions for
organizations and individuals in the area to have access to a credit
support package of VND 30 trillion for social housing and commercial
housing projects cheap deals for medium- and low-income people.
Tax policies and fees related to real estate in Hanoi are now tools
to contribute to the publicity, transparency and regulate the market,
limiting speculation; Tax payment procedures have had many reforms
that really facilitate people and businesses to conduct purchase and sale
transactions.
3.3.4. Implementation
* Organizing structure
In Hanoi, the state management apparatus of the real estate
market is organized by agencies: Department of Planning - Architecture;
Authority of Planning & Investment; Department of Natural Resource
Environmental; Department of Construction. Vertical, the Ministry of
Construction and the Department of Construction are the two agencies
assigned the main task of state management of the real estate market on a

national and local level.
The People's Committee of Hanoi City manages houses that are
invested with local capital. Department of Construction is a specialized
agency of the City People's Committee that will perform the function of
advising and assisting the City People's Committee in state management
of housing.
* Inspection, inspection, supervision and sanctions
Organizing the city's state management apparatus for inspection
activities, in which the City Inspectorate is assigned as a specialized
agency of the Hanoi People's Committee, with the function of advising
and assisting the City People's Committee in state management. on the

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inspection, settlement of complaints, denunciations and prevention of
corruption. City inspection force has the function of checking the
construction work.
In fact, after discovering inadequacies in the market, the
handling of the loading and processing is still not strong enough and in
the process of solving, there are still some barriers of society.

3.4. General assessment
3.4.1. Achieved
Housing market in Hanoi is developing fast, a model of housing
development organization under the project has been formed, through the
actual implementation, confirming the model of urban development
under the project with the synchronization of technical infrastructure and
social infrastructure, creating a civilized and modern urban face is right
and an inevitable trend in the process of national construction and

modernization.
The appearance of many different types of housing has helped
the real estate market have many positive changes, consumers who have
demand for housing will have more opportunities to choose suppliers,
businesses and the project is traded publicly and transparently in the
market.
The implementation of social housing projects and affordable
housing in the City has also contributed to the increase in housing supply
in general, contributing to the city's housing fund.
The State has taken a number of regulatory measures to ensure
housing ownership opportunities for people with real needs but difficulty
in housing in the area.
The fact that businesses have potentials in the construction
industry, bring quality works to help people feel secure with the City's
policy.
With the average price per unit for sale on the market of VND
14-16 million per square metter (social housing); from VND 17-18
million per square metter (cheap commercial housing).
Currently, Hanoi City has provided sufficient information on
social housing projects that are going to be launched for sale and

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announced the results of receiving applications via Department of
Construction’s portal.
3.4.2. Exist
- Documents and policies to support and give incentives to
investors implementing medium- and low-price housing projects are
limited and incomplete.

- The supply of medium- and low-price housing in the market
today is very scarce, while there are many completed housing projects
that cannot be sold due to the lack of many factors to attract buyers.
- The issue of organizing the implementation of policies to each
object is sometimes inappropriate, choosing whether to apply incentives
directly to home buyers or to housing investment enterprises set off.
- The inspection and examination of the observance of the state
regulations on the purchase and sale of houses is sometimes still
incomplete, many housing projects are not sold to the right subjects.
- The issue of market news in today's society makes people
saturated when there is a need to find out information about the mediumand low-price market, sometimes individuals and organizations do not
know trust in the provided information source.
3.4.3. Cause
- Policy documents suitable to the actual situation are still slow
to be issued, not yet suitable among issuing agencies.
- Enterprises focusing on high-class real estate with high profit
will recover capital faster.
- Many businesses have limited financial resources.
- Conformity to comply with house purchase and sale regulations
is not good.
- There are not many reputable, competent and responsible
agencies to publish various types of market news.

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CHAPTER IV.
MAJOR SOLUTIONS TO DEVELOP HANOI’S HOUSING
MARKET REWARD TO 2030.
4.1. Forecast of demand and the development of the housing

market
4.1.1. Hanoi Urban 2030 and Vision 2050
Hanoi’ll develop according to the model of a central urban, five
satellite cities. These cities will contribute to reduce the load for the
central city, along with efforts to call and attract investors in these areas,
this is a good opportunity for the housing market to expand.
geographically. In particular, construction projects are located far from
the center but are synchronously connected with transport infrastructure
and arranged many social works as well as ensuring people's livelihoods
will be easy for medium- and low-income create new life in these areas.
4.1.2. Forecast of housing market demand
It is estimated that by 2020, Hanoi's population will be about 7.9
million, the urbanization rate will reach 58-60%. By 2030, about 9.2
million people, the urbanization rate will reach 65-68%. By 2050, the
maximum population will be around 10.8 million and the urbanization
rate will reach 70%-80%.
In the period from 2020 to 2022, the housing market is still very
lacking of affordable apartments for people, the system of real estate
policies has begun to take effect in reality and step by step entered life
large businesses are still leading the market trend.
In the next period from 2025 to 2030, with the City's guidelines
on prioritizing the development of housing funds for low-income people,
housing difficulties have been increasingly completed, consistent with
the real situation after many years policy adjustments times. Therefore,
conditions for attracting investment in this area also become easier.
4.2. Solutions to develop Hanoi’s housing market reward to
2030
4.2.1. Mechanisms and policies
- Promote administrative reform, create a clear environment to
attract investors to implement housing projects.

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- The simplification and speeding up the settlement of
administrative procedures in real estate-related fields help improve the
efficiency of state management.
- The process of scoring and evaluating investors with
individuals registering to buy social houses must be strictly supervised.
- Hanoi should continue to review the overlapping regulations,
policies that are incompatible with the actual situation (including those
relating to 20% land fund).
- The issuance, amendment, and supplement of housing
regulations for policy beneficiaries are necessary and will soon be
implemented and issued.
- Continuing to review and implement economic policies - real
estate finance and housing such as mortgage finance channel, real estate
bonds, investment funds ...
4.2.2. Market supply and demand
 Market supply:
Change the mode of social housing investment completely
according to market mechanism. The city should remove incentives for
investors and focus on direct support for buyers.
Further promote the mobilization of businesses to participate in
the development of medium- and low-price housing. Encourage
individuals and households to invest in the development of mini
apartment models to address housing needs for laborers and immigrants.
Compliance with regulations for projects larger than 10 hectares
must spend 20% of the land fund as social housing.
Prioritizing the land fund after relocating factories, universities

and hospitals out of the inner city area to build houses.
There should be clear and specific regulations on capital sources,
procedures for considering decisions and support levels for social
housing preferences.
 Market demand:
In order to implement the policy of stimulating demand for
medium and low-price houses, Hanoi needs to study and issue
mechanisms to clearly distinguish between three areas: (1) Managing

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development capital; (2) Housing construction and (3) Managing housing
supply.Thực hiện các biện pháp tuyên truyền, giáo dục nhằm thay đổi
nhận thức của dân cư về việc sở hữu nhà ở, trong đó có thể nhắm tới các
đối tượng người lao động trẻ tuổi.
4.2.3. Strengthen the state management
* Implementation
- Establishing "Housing Saving Fund" or "Housing Development
Fund".
- Continue to consolidate and enhance the management capacity
of department’s officials: Construction, Planning - Architecture, Natural
Resources and Environment and other directly related departments.
- Continue to promote training and retraining of knowledge for
staff involved.
- Pay attention to the implementation of demand forecasting,
planning the housing market development in the future.
- Studying and learning the experiences of nations that have
successfully applied sanctions to investors of housing projects for
vulnerable groups in society.

* Inspection, inspection, supervision and sanctions
- Strengthen the inspection, examination and supervision of the
community in the construction and enforcement of housing laws.
- Speeding up the inspection according to the planning for
housing development projects, especially affordable housing, to ensure
low-income people have stable quality of life immediately after receiving
the house.
- Check and supervise the disclosure of planning information and
housing development projects in accordance with the law.
- Strengthen operational inspection of real estate exchange.
- Refer to the experiences of other countries to limit the land
hoarding situation.
4.2.4. Market news
- Establishing an information system on the medium- and lowprice housing market to serve all market participants.

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