Vietnam: Responsibilities of organizations involved in the determination and management of condominium service charges

According to Circular No. 37/2009/TT-BXD of the Ministry of Construction of Vietnam, responsibilities of organizations and individuals involved in the determination and management of condominium service charges are as follows:

1. Condominium-managing and -operating enterprises shall:

- Manage and operate condominiums and provide services as agreed in contracts, ensuring safety, security and order and building a civilized urban lifestyle for condominium dwellers; and concurrently maintain the quality, architectural appearance, beauty and environmental sanitation of condominiums;

- Collect, pay and account condominium service charges as well as other revenues and expenditures in a public and transparent manner under the State's regulations.

2. Condominium management boards shall:

- Supervise the performance of contracts by condominium-managing and -operating enterprises; and annually or extraordinarily report to provincial- and district-level People's Committees on revenues and expenditures related to condominium service charges upon request. At the same time, publicize the collection and payment of condominium service charges for people's information on an annual basis or extraordinarily report thereon upon request of more than half of households in condominiums.

- Examine financial statements on revenues and expenditures related to the management and operation of condominiums, made by condominium-managing and -operating enterprises under signed contracts, and report thereon to condominium conferences under regulations.

3. In case condominium service charges, accurately and fully determined under Article 2, are higher than condominium service charge rates or brackets promulgated by provincial-level People's Committees, which are approved by more than half of households in the condominium or more than half of members of the condominium management board, the charge rates and service quality agreed between the condominium-managing and -operating enterprise and households will be applied and reported to provincial-level People's Committees and the Ministry of Construction for monitoring and inspection.

4. In case there is a dispute over condominium service charges, the condominium-managing and -operating enterprise may temporarily collect these charges at the ceiling rate or a rate within the condominium service charge bracket promulgated by the provincial-level People's Committee until the dispute is completely settled.

5. Other organizations and individuals are encouraged to determine and manage condominium service charges in accordance with this Circular.

View more details at Circular No. 37/2009/TT-BXD of the Ministry of Construction of Vietnam, effective from January 15, 2010.

Ty Na

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