Legal Counselling

Vietnam: Method for determination of rents for social houses

08:25, 05/07/2016

This is a featured content specified in Circular No. 20/2016/TT-BXD of the Ministry of Construction of Vietnam providing guidelines for the Government's Decree No. 100/2015/NĐ-CP on development and management of social housing.

According to Circular No. 20/2016/TT-BXD of the Ministry of Construction of Vietnam, the rent for social house is determined according to the following formula:

Where:

- GiT: monthly rent for 1 m2 of usable area of the complete apartment or house at location i (VND/m2/month).

- Vđ: divided investment in the area for lease (VND/year).

- 12: 12 months.

- L: estimated annual profit which does not exceed 15% of investment in the area for lease.

- Bt: divided annual average maintenance cost of the area for lease.

- Tdv: divided profit from commercial area (including commercial houses) in the project of the area for lease.

- SiT: usable area of the apartment or house for lease at location i.

- Ki: floor coefficient of the apartment or house i, which is a weighted mean (K of a block is 1).

View more details at: Circular No. 20/2016/TT-BXD of the Ministry of Construction of Vietnam takes effect from August 15, 2016.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

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