Prohibition on Using Apartment Units for Business Purposes

Actual practice shows that business activities conducted in apartment buildings often affect public order due to the uncountable and uncontrollable number of people coming and going. Moreover, the operating hours of some individuals and business households sometimes extend late into the night, affecting the living schedules of residents in the area. The regulation prohibiting business activities in apartments and condominiums is reasonable under the law, but it is unfavorable for some business owners, causing them to feel distressed and unsettled.

According to Clause 7 Article 80 of Decree 99/2015/ND-CP, households with business registration documents issued by competent authorities that state the use of apartments as business locations before the Housing Law came into effect (i.e., July 1, 2015) must move their business activities to locations other than apartments within 6 months from December 10, 2015. Thus, organizations, households, and individuals are not allowed to use apartments as business locations from after June 10, 2016.

However, this regulation is difficult to enforce and lacks penalties for violations. Currently and in the near future, Ho Chi Minh City and Hanoi will conduct comprehensive inspections, reviews, and strictly handle violating organizations, households, and individuals.

Article 55 of Decree 121/2013/ND-CP prescribes a fine of 50-60 million VND for the following acts conducted in apartment buildings:

- Operating restaurants, karaoke, or nightclubs;- Repairing motorcycles; trading livestock or poultry; conducting livestock slaughtering activities;- Unauthorized extension, encroachment of space, or damage to common property by any means; altering load-bearing structures, technical infrastructure, communal facilities, or the exterior architecture of the apartment building;- Dividing or changing the use of common property or shared areas against regulations;- Trading in gas or explosive, flammable materials.

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