MINISTRY
FOR CONSTRUCTION -GOVERNMENT PRICE COMMITTEE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
03/TT-LB
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Hanoi,
May 13, 1992
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CIRCULAR
ON
MINIMUM RENT PAYABLE BY FOREIGNERS AND FOREIGN NATIONALS OF VIETNAMESE ORIGIN
Pursuant to Decree No.
389/HDBT of the Council of Ministers dated 10 November 1990 promulgating the
Regulations on Leases and Labour Hire By foreigners;
Pursuant to Decision No. 137/HDBT on price control of the Council of Ministers
dated 27 April 1992;
Pursuant to Circular No. 3/TT-LB making provisions for the implementation of
Decree 389/HDBT of the Ministry of Construction - Ministry of Labour, War
Invalids and Social Affairs - Ministry of Interior - Ministry of finance dated
8 April 1991.
In order to unify the administration by the State of leases by foreigners and
foreign nationals of Vietnamese origin who reside in Vietnam for a period of
more than six months, the Ministry of Construction and the State Committee for
Prices has stipulated the following minimum rent levels:
Chapter I
GENERAL PRINCIPLES
Rents
applicable to foreigners and foreign nationals of Vietnamese origin
(hereinafter referred to as foreigners) during their stay in Vietnam must be in
accordance with the following principles:
1. All
details of construction, maintenance, care taking and improvement expenses,
facilities, and day to day improvement requirements must be calculated
accurately and completely for the tenant.
2. The rights
of landlords, tenants, and the State must be protected.
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4. Price
stabilization for business operations leasing houses must be implemented.
Chapter II
ENTITIES TO WHICH RENTS APPLY AND SCOPE OF APPLICATION
1. The
Minimum Rent List issued with this Circular applies to towns classified as Type
1 and Type 2 pursuant to Decision No. 132/HDBT on the classification of towns
of the Council of Ministers dated 5 May 1990. In respect of towns which are not
classified as Type 1 or Type 2 (stipulated in this Circular) people's
committees of provinces and cities shall stipulate the minimum rent levels in
accordance with the conditions prevailing in the locality. Where the confirmed
rent level is less than fifty (50) pe r cent of the rent levels stipulated in
this Circular, the approval of the Ministry of Construction and the State
Committee for Prices must be obtained.
Private
businesses in every sector of the economy have the right to determine for
themselves the rent levels in contracts, provided that they are not less than
the minimum rent level stipulated by the authorities.
2. The
provisions on rent levels in this Circular shall apply to foreigners residing
in Vietnam for a period of more than six months, and do not apply to
organizations and individuals covered by State conventions providing for
accommodation and offices.
3. These
provisions shall apply nationally to entities which are referred to as lessors
in paragraph 1 of part A of article 1 of the Regulations issued with Decree No.
389/HDBT of the Council of Ministers dated 10 November 1990, and shall act as
the basis for the determination of rents for accommodation and workplaces, and
for the implementation of all obligations of business operations leasing
premises, pursuant to the provisions of the State.
Chapter
III
CLASSIFICATION OF PREMISES AND AREAS FOR DETERMINATION
OF RENTS
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Accommodation
and workplaces leased by foreigners during their period of residence in Vietnam
are classified as follows:
1. fully
detached premises:
(a) Villas:
- Separate
house with courtyard, garden, and surrounding walls.
- Reinforced
structure, using steel reinforced concrete or bricks.
- Surrounding
walls and internal walls made of steel reinforced concrete or bricks.
- Roof made
of steel reinforced concrete or tiles, with appropriate heating and sound proof
insulation facilities.
- Excellent
internal materials and good external materials.
- Daily
living facilities (kitchen, toilets, bathrooms, electricity, water) are
comprehensive and suitable for use, with high quality hygiene facilities. Each
storey must at least have its own hygiene facilities.
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(b) Detached
premises:
- Detached
house, having at least two rooms, with no surrounding courtyard or garden.
- Reinforced
structure, using steel reinforced concrete or bricks.
- Surrounding
walls and internal walls made of steel reinforced concrete or bricks.
- Roof made
of steel reinforced concrete or tiles, with appropriate heating and sound proof
insulation facilities.
- Excellent
internal materials (plastered, paved and filled) and good external materials.
- Daily
living facilities (kitchen, toilets, bathrooms, electricity, water) are
comprehensive and suitable for use.
- No limit on
number of storeys.
2.
Apartments:
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- Reinforced
structure, using steel reinforced concrete or bricks.
- Surrounding
walls and internal walls made of steel reinforced concrete or bricks.
- Roof made
of steel reinforced concrete or tiles, with appropriate heating and sound proof
insulation facilities.
- Excellent
internal materials (plastered, paved and filled) and good external materials.
- Daily
living facilities (kitchen, toilets, bathrooms, electricity, water) are
comprehensive and suitable for use.
B.
CLASSIFICATION OF AREAS
Within each
town and city there are three classifications of areas as follows:
(a) Central
city area:
Being the
area with the highest concentration of buildings and population density which,
at the same time, satisfies two of the three criteria of: center for politics -
economy, center for culture - sport; center for tourism. Having public
utilities, suitable and comprehensive.
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Being the
area which is close to the central area and consisting of supporting centers
(wards and precincts). Medium concentration of buildings and population
density, having suitable public utilities (transportation, electricity, water,
amongst other things) which are reasonably accessible.
(c) Area
within the edge of a city or town:
Being the
area close to the area surrounding the central city area with communications
still in the process of being urbanized. Public utilities are not favorable and
not fully completed.
Chapter IV
AREAS AND DETAILS FOR THE CALCULATION OF RENTS
Main area:
includes bedrooms, lounge, office, dining, kitchen, and hygiene facilities.
Additional
area: includes balcony, garage, storehouses, reception area.
Courtyard and
garden area: Includes courtyard, pathways (in the case of villas), gardens,
ornamental structures.
Furnishing
expenses provided for in the rent include expenses for the necessary facilities
and the minimum requirements for daily living (tables, chairs, beds, wardrobes,
and things for general use).
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Costs of
electricity, telephone, water, telefax shall be paid directly by the lessee
according to consumption.
MINIMUM
RENT LIST FOR PREMISES
(Unit : USD/m2/month)
No
Central
Inner
fringe
1
Main area:
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Villas
9.0
8.0
6.0
Detached Premises Apartments
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7.0
5.0
2
Additional area
Villas
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4.0
4.0
Detached Premises
4.0
3.0
3.0
Apartments
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2.0
2.0
3
Other area
Swimming Pool
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2.0
2.0
Tennis Court
2.0
2.0
2.0
Chapter V
PROVISION FOR IMPLEMENTATION
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Phan
Van Tiem
Ngo
Xuan Loc