Rental Housing Pioneer Lê Thành Seeks Policy Support for Private Investment

Lê Thành Company, a Vietnamese firm that has specialized in building rental housing since 2013, is calling for government policies to encourage private sector investment in affordable rental accommodations. The company's CEO, Lê Hữu Nghĩa, shared insights into their long-term vision for housing solutions.

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From 2012, Lê Thành began researching solutions for apartment buildings specifically for rent. The primary concern for renters is the frequent need to move, which consumes significant time and incurs costs. Reasons for moving are numerous: starting a family, deteriorating rental conditions, flooding, or poor security.

Nghĩa explained that Lê Thành's focus on rental housing stems from understanding the struggles of low-income workers. Many face frequent and costly moves due to issues like family changes, deteriorating living conditions, or security concerns. The inability to invest in personal appliances due to the instability of rental situations also impacts their quality of life.

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The spirit of the Constitution states that all citizens have the right to housing for a happy life, not necessarily the right to own a home.

Lê Thành proposes a model of long-term rental contracts, specifically 49-year leases, which they believe meets the constitutional right to housing for a happy life, even without outright ownership. This model offers stability and affordability, with payment plans extending up to 100 months. The company also notes that these rental properties are not subject to speculation, as they are managed and maintained by the investor, preventing the formation of informal settlements.

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According to Lê Thành's research, 80%-90% of renters desire stable housing for 49 years, meeting the need for a settled life even without ownership. The rental price for a 49-year term is very suitable for the payment capacity of low-to-middle income earners.

The company has designed apartments ranging from 35 to 45 square meters, suitable for individuals, couples, and small families. Despite initial concerns about small units creating slums, Lê Thành's decade-long experience shows that proper management, security, and maintenance prevent such issues. The company is now urging for supportive policies to expand this model.

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Rental housing is not subject to speculation because no one speculates on housing they cannot own.