Legal Counselling

Vietnam: Method for determination of selling prices for social houses according to Circular No. 20/2016/TT-BXD

13:29, 05/07/2016

On June 30, 2016, the Ministry of Construction of Vietnam issued Circular No. 20/2016/TT-BXD 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 selling price for a social house is determined according to total investment in the construction of the house, loan interest (if any), estimated profit and VAT, exclusive of maintenance cost. The selling price is determined according to the following formula:

Where:

- GiB: selling price for 1 m2 of usable area of a complete apartment or house at location i.

- Tđ: total investment in the usable area for sale.

- Tdv: divided profit from commercial area in the project for the area for sale.

- L: estimated profit of the project which does not exceed 10% of investment in the area for sale.

- SB: total usable social housing area of the project, including areas of apartments and houses that are not sold by the investor.

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

View relevant provisions at Circular No. 20/2016/TT-BXD of the Ministry of Construction of Vietnam, effective from August 15, 2016.

- Thanh Lam -

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