In Vietnam, what is the fine imposed for managing and operating apartment buildings without being eligible to do so?
What is an apartment building in Vietnam?
Under Clause 3 Article 3 of the Law on Housing 2014 provides as follows:
"Article 3. Interpretation of terms
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3. Apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.
An apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for use by other households.
In Vietnam, what is the fine imposed for managing and operating apartment buildings without being eligible to do so?
What are the requirements for an apartment building-managing organization in Vietnam?
Under Article 105 of the Law on Housing 2014 :
Management of apartment buildings
1. The management of an apartment building shall be carried out as follows:
a) Regarding any apartment building having elevators, the managing organization shall carry out the apartment building management;
b) Regarding any apartment building having no elevator, the Apartment building meeting shall be held to decide whether to manage themselves or hire a managing organization conducting the apartment building management.
2. Any apartment building managing organization must satisfy requirements pertaining to competency as follows:
a) It is established and operated as prescribed in regulations of the Law on enterprise or the Law on cooperatives and in charge of apartment building management;
b) It is required to have departments in charge of apartment building management including technology, service, security, hygiene, or environment units;
c) There are personnel meeting requirements pertaining to housing management including construction, electric technique, water, fire safety, operation of equipment attached to the apartment building and certificates of training in apartment building management as prescribed in regulations of the Minister of Construction.
3. The apartment building managing organization shall manage the technical system, equipment, and provision of apartment building services, maintain the apartment building and perform other tasks relating to the apartment building management.
4. The apartment building managing organization is entitled to collect fees for management of the apartment building from the homeowners, or the occupiers according to the prices prescribed in Clause 3 and Clause 4 Article 106 of this Law; regarding the state-owned apartment building, the fees for management services shall comply with regulations in Point a, Clause 5, Article 106 of this Law.
5. The managing organization is entitled to manage more than one apartment building in the same or different administrative divisions.
An apartment building-managing organization in Vietnam must satisfy requirements pertaining to competency stipulated above.
In Vietnam, what is the fine imposed for managing and operating apartment buildings without being eligible to do so?
Article 68 of Decree 16/2022/ND-CP provides as follows:
Violation of regulation on management and use of apartment buildings of entities managing and operating apartment buildings
1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on:
a) Failing to produce service agreements for managing and operating apartment buildings in a manner conforming to regulations and law;
b) Failing to submit public reports on management and operation of apartment buildings to the elected Boards of directors or at request of competent authorities;
c) Failing to submit reports on management and operation at apartment building meetings; failing to collect feedback of inhabitants about the provision of apartment building management and operation services.
2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed on:
a) Managing and operating apartment buildings without being eligible for doing so;
b) Lacking professional departments specializing in management and operation of apartment buildings;
c) Employing individuals lacking certificate for professional training and education regarding apartment building management and operation affairs to perform professional work;
d) Manage and use maintenance expenditure in a manner not conforming to regulations;
dd) Maintaining common areas of apartment buildings as per contracts without being eligible for doing so.
3. Remedial measures:
a) Mandated preparation of service agreements for management and operation of apartment buildings conforming to regulations for violations under Point a Clause 1 of this Article;
b) Mandated submission of public reports on management and operation of apartment buildings to the elected Boards of directors or at request of competent authorities for violations under Point b Clause 1 of this Article;
c) Mandated submission of reports on management and operation at apartment building meetings or mandated collection of feedback of inhabitants regarding provision of apartment building management and operation services for violations under Point c Clause 1 of this Article;
d) Mandated fulfillment of apartment building management and operation eligibility for violations under Point a Clause 2 of this Article;
dd) Mandated adequate organization of professional departments specializing in management and operation of apartment buildings for violations under Point b Clause 2 of this Article;
e) Mandated employment of individuals licensed with certificate for professional training and education regarding apartment building management and operation for violations under Point c Clause 2 of this Article;
g) Mandated management and use of maintenance expenditure of apartment buildings conforming to regulations and law for violations under Point d Clause 2 of this Article;
h) Mandated assurance of maintenance capability when maintaining common areas of apartment buildings for violations under Point dd Clause 2 of this Article.
An administrative fine from 80,000,000 VND to 100,000,000 VND shall be imposed for managing and operating apartment buildings without being eligible for doing so.
Additionally, based on the specific violations of regulations on the management and use of apartment buildings by the apartment building-managing organization, the corresponding remedial measures for each act will be determined as per the above regulations.
Note: The above administrative fines are only applicable to organizational violations. Individual violations will incur fines that are half of those applied to organizations.
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