A section of Vĩnh Hội apartment complex in Vĩnh Hội Ward in HCM City, built before 1975, has been classified as Grade D - dangerous - due to severe deterioration. - VNA/VNS Photo
The initiative, which requires cooperation between government, developers, and residents, aims to balance the competing interests of social welfare, commercial viability, and city planning.
Most of the city’s old apartment blocks are located in central areas, making redevelopment both urgent and complicated.
Any upgrade must account for social infrastructure, transport networks, and technical systems, while also ensuring appropriate resettlement options for displaced residents.
Nguyễn Quốc Bảo, chairman of HCM City Real Estate Club (HREC), said this is a complex challenge, especially with smaller buildings under 1,000 square metres.
“Redevelopment requires harmonising the interests of three key stakeholders: the government, investors, and residents.”
He urged city leaders to streamline policies, provide resettlement support, and create incentives for developers.
Residents also need to be more open to relocation, while businesses must offer fair compensation and transparent resettlement plans to secure trust, he added.
Shared responsibility
Urban planners stress that rebuilding old apartment blocks is not only a commercial housing project but also carries a strong social responsibility.
Financial support, favourable credit terms, and simplified legal procedures are essential to help developers manage land clearance and negotiate compensation packages with residents.
Nguyễn Tiến Dũng, CEO of real estate firm Savista, said reaching consensus with residents is often the hardest step but also the most important.
“We need clear standards to evaluate the remaining value of residents’ properties and transparent formulas for compensation and apartment swaps,” he said.
International models offer potential guidance. Japan and South Korea have pioneered systems to balance the interests of all parties, while Germany has experimented with preserving historic architecture alongside modern upgrades.
Singapore’s Housing Development Board (HDB) has also shown how state-backed efforts can successfully deliver large-scale urban renewal.
A section of Vĩnh Hội apartment complex in Vĩnh Hội Ward in HCM City, built before 1975, has been classified as Grade D - dangerous - due to severe deterioration. - VNA/VNS Photo
New policies for resettlement
The city recently approved a comprehensive plan to rebuild or replace degraded apartment blocks, with new policies designed to win public support.
Under the plan, residents will be guaranteed resettlement units at least equal to — and in some cases double - the size of their original apartments.
Those unwilling to move into new buildings will be allowed to sell or transfer their resettlement rights or receive cash compensation.
Investors, meanwhile, must submit redevelopment proposals together with detailed compensation and resettlement schemes.
The policy also allows developers to negotiate land-use transfers directly with residents, providing more flexibility to accelerate projects.
Bùi Xuân Cường, deputy chairman of the city People’s Committee, said redevelopment is urgent but complicated because it involves the rights of tens of thousands of households.
“Our priority is to ensure a fair balance of benefits among residents, government, and developers, while keeping social welfare at the core,” he added.
To ease financial burdens, the city has adopted Resolution 17, offering incentives and support for investors in reconstruction projects.
It has also pledged to cover costs for tasks under state responsibility, such as building inspections, planning assessments, and permit approvals.
Long-term urban vision
HCM City has set ambitious targets: to complete redevelopment of all apartment blocks built before 1975, and to rebuild those classified as unsafe or heavily degraded between 1975 and 1994 by 2035.
Authorities argue that beyond new housing, the programme represents a broader redesign of urban living.
Modernised buildings are expected to improve fire safety, security, sanitation, and community facilities, while giving the city a more modern and cohesive skyline.
“Redeveloping old apartments is not just about bricks and mortar,” Cường said. “It is about creating safe, modern, and liveable spaces that reflect the needs of a dynamic, growing city.”
For residents, the benefits go beyond larger and safer apartments. Improved infrastructure, better services, and enhanced public spaces could transform the way communities live and interact, while boosting confidence in the city’s long-term growth.