HCMC – The HCMC Real Estate Association (HoREA) has proposed that the People’s Committee of HCMC reduce the value-added tax (VAT) for social housing projects to encourage investment in this housing segment.
HoREA Chairman Le Hoang Chau said projects for upgrading and rebuilding aging condo buildings in the city had been plagued with pressing issues, such as high costs and low returns.
To address this, the association has recommended lowering the VAT to 5% to ease the financial burden on developers and stimulate investment in condo building upgrades and reconstructions.
Despite government initiatives aimed at promoting affordable rental housing for low-income earners, investment in this sector has remained limited due to thin profit margins and lengthy capital recovery.
In addition to the proposed 5% VAT for housing developments, HoREA has proposed a separate VAT rate of 3% for social homes for rent.
Chau said that these tax adjustments would alleviate the financial strain on businesses and promote the development of social housing, helping to meet the housing needs of the population.
With Resolution 98/2023 in place, which grants special mechanisms and policies for the development of HCMC, the city can determine policy incentives for investors and prioritize attracting strategic investors in the fields of science and technology, innovation, and creativity.
