Thông tư liên tịch 03/TT-LB

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.

3. The rent levels must be appropriate and, whilst encouraging foreign businesses investing in Vietnam, must be in line with the market prices (domestic and international).

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

A. CLASSIFICATION OF PREMISES

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.

- No limit to the number of storeys, and private sport facilities (swimming pool, tennis court) are permissible.

(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:

- Multi-storey apartment block with separate apartments.

- 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.

(b) Area surrounding the central city area:

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).

Other necessary facilities such as wireless, refrigerator, air-conditioning shall be negotiated between the two parties.

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)

Chapter V

PROVISION FOR IMPLEMENTATION

This Circular is effective as of the date of its signing. If any problem arises during its implementation, all Ministries and people's committees of provinces and cities should notify the Interministry for consideration and resolution.