This policy is part of a resolution passed by the Ho Chi Minh City People's Council on 24/7, outlining incentives for investors participating in apartment building renovation and reconstruction projects within the city.
Accordingly, the city will support 50% of the construction costs for external technical infrastructure, such as transportation systems, water supply, drainage, lighting, and waste treatment, up to a maximum of 10 billion VND per project.
In addition, the city will also support 50% of the cost of relocating and, if necessary, forcibly relocating residents according to plans approved by the competent authorities. This support will be provided only after the investor has completed the infrastructure or relocation work according to the approved schedule. Projects implemented in multiple phases will be considered for support based on the completion of each phase.
The funding will be drawn from the regular expenditure budget, with the Department of Construction overseeing the inspection, consolidation, and submission of requests to the relevant authorities for allocation.
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Thanh Da Dormitory, Ho Chi Minh City, built in the 1970s, is now dilapidated. Photo: Quynh Tran |
Thanh Da Dormitory, Ho Chi Minh City, built in the 1970s, is now dilapidated. Photo: Quynh Tran
The policy applies to projects that meet the requirements of the Housing Law and Decree 98, including dilapidated and dangerous apartment buildings requiring urgent demolition, or those within the state-approved renovation plan.
Ho Chi Minh City hopes this policy will create a financial incentive for investors, helping to accelerate the renovation of hundreds of old apartment buildings, many of which are severely deteriorated but have been slow to be rebuilt due to a lack of resources.
According to the Department of Construction, Ho Chi Minh City currently has 474 apartment buildings with 573 blocks built before 1975 that are dilapidated and unsafe. Among them, 16 apartment buildings are classified as level D (dangerous), 116 as level C (potentially dangerous), 332 as level B (not meeting normal usage requirements), and 12 have been dismantled or repurposed. To date, 5 level D apartment buildings have been completely dismantled, and 6 others have also been demolished.
Under the plan for renovating and rebuilding damaged and dilapidated old apartment buildings in the city, the city government will spend 5 years preparing to renovate and rebuild 467 old apartment buildings constructed before 1975 and those built between 1975 and 1994. Level B and C apartment buildings built before 1975 will also be repaired and upgraded in the next 5 years. For the 16 level D apartment buildings, the city plans to rebuild 7 buildings that have been relocated and dismantled; the remaining 9 (not yet or currently being relocated) will be repaired and rebuilt.
By 2035, Ho Chi Minh City will complete the renovation and reconstruction of old apartment buildings built before 1975, as well as those that are severely damaged, classified as level D, or have reached the end of their lifespan and were built between 1975 and 1994.
Le Tuyet
