Vietnam’s Circular 37: 06 principles of determining condominium service charges

According to Article 2 of Circular No. 37/2009/TT-BXD of the Ministry of Construction of Vietnam, 06 principles of determining condominium service charges are specified as follows:

1. Condominium service charges shall be determined on the principle of accurately and fully covering expenses, generating a reasonable profit for the management and operation of condominiums under normal conditions and taking into account practical socio-economic conditions of each locality and people's incomes in each period. These charges shall be approved by more than half of members of the condominium management board by a show of hands or casting secret ballots. For condominiums without a management board, condominium service charges shall be approved by more than half of households in the condominiums by a show of hands or casting secret ballots. If condominium service charges have been agreed in apartment purchase and sale contracts, the agreed charges apply.

2. Condominium service expenses included in condominium service charges shall be collected and paid on the principles of self-collection, self-financing and publicity to ensure the normal operation of condominiums.

3. Expenses for fuel, electricity, water, telephone, Internet and other services for each apartment shall not be included in condominium service charges but be paid by apartment users directly to service providers (if separate use contracts are available) or to condominium-managing and -operating enterprises (if such contracts are unavailable), based on the actually used volume added with a wastage (if any).

4. Maintenance expenses include all expenses for the renovation, maintenance, minor repair, medium repair, overhaul and extraordinary repair aiming to maintain the quality of condominiums. These expenses shall not be included in condominium service charges.

5. Revenues from other services on the areas under common ownership of condominiums (if any) shall be accounted for under the Finance Ministry's financial regulations and used to offset condominium service expenses for reducing condominium service charges.

6. For projects on condominiums using high-class services not under common ownership (such as sauna, swimming pool, tennis courts or other high-class services), users of these services shall reach agreement with condominium-managing and -operating enterprises on the service charges, which shall not be included in condominium service charges.

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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