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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
56-CP
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Hanoi,
September 18, 1995
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DECREE
PROMULGATING THE REGULATION ON LEASING HOUSES IN VIETNAM TO
FOREIGNERS AND VIETNAMESE RESIDING ABROAD
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government of September 30, 1992;
To enhance the State management over leasing houses in Vietnam to foreigners
and Vietnamese residing abroad;
At the proposal of the Minister of Construction,
DECREES :
Article 1.-
To issue together with this Decree the Regulation on Leasing Houses in Vietnam
to Foreigners and Vietnamese Residing Abroad.
Article 2.-
This Decree takes effect from the date of its signing. The earlier stipulations
that are contrary to this Decree are now annulled.
Article 3.-
The Ministers, the Heads of the ministerial level agencies, the Heads of the
agencies attached to the Government, the Presidents of the People's Committees
of the provinces and cities directly under the Central Government shall have to
implement this Decree.
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ON
BEHALF OF THE GOVERNMENT
THE PRIME MINISTER
Vo Van Kiet
REGULATION
ON LEASING HOUSES IN VIETNAM TO FOREIGNERS AND VIETNAMESE
RESIDING ABROAD
(issued
attached to Decree No.56-CP of September 18, 1995)
Chapter I
GENERAL PROVISIONS
Article
1.- The economic organizations, political and social organizations and
individuals described thereunder (hereafter referred to as renting party) who
meet the conditions prescribed in Article 3 of this Regulation are authorized
to lease houses to foreigners and Vietnamese residing abroad (hereafter
referred to as foreigners) for lodging, for use as headquarters of
representative offices, company branches or establishments for business
activities as prescribed by law:
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2. Other enterprises and
organizations set up and operating according to law which have houses under their
ownership and have their legal land use right.
3. Vietnamese citizens who have
full civil action capacity and have houses under their ownership and have their
legal land use right.
Article
2.- The following entities and persons are not allowed to lease houses to
foreigners:
a/ The State agencies, Party
offices, Vietnamese political and social organizations and individuals are not
allowed to lease their offices or houses under State ownership which they are
being allowed to manage or use.
b/ The persons who are under
investigation for criminal liability, those who are serving their terms, or
those whose sentences have not been repealed.
Article
3.- A house to be leased to a foreigner must meet these conditions:
1. It has a clear address
(number of house, street, ward...) lying outside the area defined in Item 1,
Article 12 of Decree No.04-CP on the 18th of January 1993 of the Government.
2. It forms a separate flat (not
sharing any room or passage with another flat).
3. Safe in structure and
construction.
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5. Not involving a dispute about
ownership or utilization right.
Article 4.-
The renting party may directly or assign a house renting service business for
foreigners to fill the procedures for application, sign house renting contract
and carry out the rights and obligations defined in this Regulation. The fee
for assignment must not be higher than 2% of the value of the contract
stipulated in Article 7 of this Regulation.
In case the owner of the house
is not a permanent resident in the province or city where the house for rent is
located, he/she must empower another person who is a permanent resident of the
locality where the house is located to represent him/her in filling the above
necessary procedures, except those in the categories defined in Point b,
Article 2 of this Regulation.
Article 5.-
A foreigner renting a house for lodge must have a legal permit of temporary
residence in Vietnam for six months and more. If he/she rents a house as
headquarters of a representative office, or company branch or as an
establishment for business activities, he/she must have a permit to establish
the representative office, the company branch or for investment cooperation in
Vietnam issued by the authorized agency of Vietnam.
Article 6.-
The house renting contract signed between the renter and tenant must be done in
the prescribed form and certified by the agency issuing permits for house
renting to foreigners. The rent rate and the value of the rent written in the
contract shall be calculated in Vietnam Dong and shall be converted into US
dollars or another convertible currency at the exchange rate announced by the
Vietnam State Bank at the time of the signing of the contract.
Article 7.-
The land rent rate shall be mutually agreed upon by the two parties. The
remittances to the State budget which come under the obligation of the renter
shall be based on the rate written in the house renting contract which,
however, must not be lower than the rate for tax calculation applied in the
locality prescribed by the Ministry of Finance after consultation with the
President of the People's Committee of the province or the city directly under
the Central Government.
Article 8.-
1. The
Ministry of Construction shall have to exercise unified State management over
the business of renting houses to foreigners, preside over and cooperate with
the other ministries, ministerial-level agencies, agencies attached to the
Government and the People's Committees of the provinces and cities directly
under the Central Government in the exercise of State management of the
activities in renting houses to foreigners in Vietnam.
2. The People's Committees of
the provinces and cities directly under the Central Government shall have to:
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b/ Appoint an agency attached to
the province or city to take responsibility for the issue, extension and
withdrawal of house renting permits, monitoring and controlling the activities
in house renting to foreigners in their localities (hereafter referred to as
permit-issuing agency).
c/ Concretely define the areas
and places eligible for renting houses to foreigners in their territories.
d/ Draw up the plan and project
for house building aimed at meeting the demand in houses for rent to
foreigners.
e/ Authorize the establishment
of enterprises or the registration of the business of renting houses to
foreigners in their localities.
f/ Handle the violations as
defined in Chapter IV of this Regulation.
3. The permit-issuing agency shall
have to assist the People's Committees of the provinces or cities directly
under the Central Government to manage the activities of renting houses to
foreigners in the locality; to collect the permit-issuing fee, monitor and
control the service of house renting to foreigners, and propose the authorized
echelon to handle the violations as stipulated in Chapter IV of this
Regulation.
Chapter II
PROCEDURE FOR ISSUING,
EXTENDING AND ABOLISHING PERMITS, AND PRODUCING PERMITS AND CONTRACTS ON HOUSE
RENTING
Article 9.-
The renter (house owner or his/her representative) shall send the application
dossier to the permit-issuing agency of the province or city where the house
for rent is located. The application dossier shall comprise:
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2. A resume of the renter
certified by the administration of the ward or commune where he/she resides.
3. A notarized copy of the
certificate of ownership of the house and of the legal use right.
4. A deed of delegation or
accreditation (if any) as stipulated in Article 4 of this Regulation.
Article
10.- Within 30 days at the latest after receipt of the full and duly made
dossier, the permit-issuing agency has to coordinate with the concerned
agencies in the locality in examining the conditions of the house for rent as
prescribed in Article 3 of this Regulation in order to answer the applicant
whether or not he/she shall be issued the permit.
Article
11.- The house tenant may directly or through the house renting service
enterprise for foreigners conduct the negotiation and fill the house renting
procedure as prescribed in this Regulation. The application dossier shall
comprise:
1. An application.
2. A notarized copy of the
permit as prescribed in Article 5 of this Regulation.
Article 12.-
When delivering the house to the tenant, the renting party must produce the
permit and the house renting contract to the security and tax offices (at the
district level) in the locality.
Article
13.- On expiry of the house-renting contract, if the contracting parties
agree to extend the contract or sign a new contract, they have to obey the
prescriptions of this Regulation.
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RIGHTS AND DUTIES OF
RENTING PARTY, TENANT, PERMIT-ISSUING AGENCY AND SERVICE ENTERPRISE
Article
14.- Rights and duties of renting party:
1. To pay different kinds of tax
(license, turnover, profit, land and house taxes...) as prescribed by law.
With regard to the enterprises
stipulated in Item 1, Article 1 of this Regulation, they must also remit to the
State budget other supplementary regulating contributions as prescribed by law.
2. To pay application fee at the
rate set by the Ministry of Finance.
3. To strictly observe the
signed house-renting contract.
4. To create favorable
conditions for the specialized agencies to discharge their tasks defined in
Article 8 of this Regulation.
5. To be entitled to abolish the
house-renting contract under the conditions stipulated in the contract or
prescribed by law, but it must notify the house tenant at least 30 days in
advance before the contract is annulled. The settlement of any dispute or any
compensation therein shall be effected as stipulated by Vietnamese law.
In case of annulment of the
house-renting contract, the renting party shall have to inform in time the
permit-issuing agency, the security service and the tax agency in the locality.
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1. To strictly observe the terms
under the signed contract.
2. To register for temporary
residence for himself/herself when coming to live or work at the house, and
register for temporary residence for his/her guests staying overnight with the
security service agency at the local ward or commune.
3. Not to assign the
house-renting contract or to re-rent the house to another party.
4. To be entitled to annul the
contract under the conditions agreed upon in the contract or as prescribed by
law. The settlement of any dispute or compensation involved in the contract
shall be effected according to the Vietnamese law.
Article
16.- Rights and duties of the service enterprise:
1. To carry out fully the
conditions concerning brokerage and service for both the renting party and the
house tenant under the contract.
2. To collect service fee (only one
time) at the rate set by the Ministry of Finance and the commission fee as
prescribed in Article 4 of this Regulation.
3. To discharge the duty of tax
payment and other obligations prescribed by law.
Chapter IV
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Article
17.- The enterprises, organizations or individuals that undertake the
business of house renting to foreigners without permits shall be fined 50
million Vietnam Dong and shall be forced to end their activities. In case of
serious consequences, they shall be prosecuted before law.
Article
18.- The enterprises, organizations and individuals having permits to rent
houses to foreigners but do not have duly made house-renting contracts, or who
do not fill the procedure for registration stipulated in Article 6 and Article
12, or whose permits and house-renting contracts have expired but they do not
conform to the stipulations in Article 13 of this Regulation, shall be fined 20
million Vietnam Dong and shall be forced to fill all the procedures as
prescribed. In case of recidivism, they shall be fined twice the amount of the
earlier fine, and shall have their house-renting permits withdrawn.
Article
19.- The house tenant who violated the stipulations in Article 15 of this
Regulation shall be served a warning and fined 2,000 USD (if the house is for
dwelling), or 5,000 USD (if the house is intended as headquarters of a
representative office, a company branch or an establishment for business
activities). In case of recidivism, they shall be fined twice the amount of the
earlier fine. In case of serious consequences, they shall be forced to end the
house-renting contract and shall be dealt with according to Vietnamese law.
Those organizations
and individuals that are not allowed to rent houses under the terms of this
Regulation but that still rent houses in Vietnam, shall be served a warning and
fined 3,000 USD (if the house is for dwelling), or 8,000 USD (if the house is
intended as headquarters for a representative office, company branch or an
establishment for business activities). They shall also be forced to end the
house renting. In case of serious consequences, they shall be dealt with
according to Vietnamese law.
Article
20.- A service enterprise which violates the stipulations of this
Regulation shall be fined 20 million Vietnam Dong. If it causes damage to the
concerned parties, it shall have to return the service fee and compensate for
the damage. In case of recidivism or serious consequences, it shall have its
business permit withdrawn.
Article
21.- Public employees of the State management agencies stipulated in
Article 8 and the personnel of the service enterprise who deliberately
contravene the stipulations of this Regulation, shall be dealt with according
to law depending on the extent of their offense.
Chapter V
IMPLEMENTATION PROVISIONS
Article
22.- The agencies, mass organizations, social organizations and economic
organizations that are not specialized in house renting business, and the
Vietnamese citizens or foreign residents settling in Vietnam who are re-renting
houses owned by the Vietnamese State, shall have to return all the money they
have received as house rent to the State budget as from the date when this
Regulation became effective.
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Article
23.- The enterprises, organizations and individuals that have been issued
permits to rent houses to foreigners as stipulated in the Regulation issued and
attached to Decree No.389-HDBT on the 10th of November 1990 of the Council of
Ministers are entitled, if the house renting contract has not expired, to
continue to rent their houses until the end of the 31st of March 1996. From the
1st of April 1996 onward, if the house-owners wish to continue to rent houses
to foreigners, they shall have to fill anew the procedure on house-renting as
prescribed in this Regulation.
Article
24.- This Regulation replaces the Regulation on house renting issued and
attached to Decree No.389-HDBT on the 10th of November 1990 of the Council of
Ministers and takes effect on the date of its signing. The earlier stipulations
by the various ministries, the ministerial-level agencies, the agencies
attached to the Government and the People's Committees of the provinces and
cities directly under the Central Government concerning house renting to
foreigners which are contrary to this Regulation, are now annulled.
The Ministry of Construction
shall guide the activities of the service enterprises for house renting to
foreigners stipulated in Point e, Item 2, Article 8 of this Regulation.
Article
25.- The house renting activities concerning the diplomatic
representations, consulates and representative offices of international
organizations and non-governmental organizations in Vietnam (Diplomatic Corps
in abbreviation) shall follow a separate regulation.
The People's Committees of Hanoi
City and Ho Chi Minh City shall have to work out plans for the construction of
separate residential quarters to be rented to the agencies of the Diplomatic
Corps, and manage the activities of house renting to these agencies in their
localities.
Article
26.- The Ministers, the Heads of the ministerial-level agencies, the Heads
of the agencies attached to the Government and the Presidents of the People's
Committees of the provinces and cities directly under the Central Government
shall have to implement this Regulation.