Regulations on selection of apartment building operating units in Vietnam

Regulations on selection of apartment building operating units in Vietnam (Internet image) 

1. Conditions for apartment building operating units in Vietnam

According to Clause 1, Article 27 of the Regulation on management and use of apartment buildings issued together with Circular 02/2016/TT-BXD (amended by Circular 28/2016/TT-BXD, Circular 06/2019/TT-BXD), the apartment building operating unit may be the investor or another unit that has satisfied all of function and capacity requirements prescribed in Clause 2 Article 105 of the Law on Housing 2014 as follows

- It is established and operated as prescribed in regulations of the Law on enterprise or the Law on cooperatives and in charge of apartment building management;

- It is required to have departments in charge of apartment building management including technology, service, security, hygiene, or environment units;

- There are personnel meeting requirements pertaining to housing management including construction, electric technique, water, fire safety, operation of equipment attached to the apartment building and certificates of training in apartment building management as prescribed in regulations of the Minister of Construction.

2. Selection of apartment building operating units in Vietnam

Pursuant to Clauses 2 and 3, Article 27 of the Regulation promulgated together with Circular 02/2016/TT-BXD (amended by Circular 28/2016/TT-BXD, Circular 06/2019/TT-BXD), then:

- The investor shall organize the operation of the apartment building during the period the first apartment building meeting is not yet organized. If the investor fails to satisfy all of function and capacity requirements prescribed in Clause 2 Article 105 of the Law on Housing to manage an apartment building which has elevator system, a qualified unit that meets all of prescribed function and capacity requirements shall be hired to operate the apartment building.

- After the first apartment building meeting has been organized, the selection of the operating unit shall be governed by the following regulations:

+ If an apartment building has no elevator system, the apartment building convention shall decide to operate the apartment building itself according to the self-governance method or hire a unit that meets all of function and capacity requirements to operate the apartment building;  

+ With respect to an apartment building having the elevator system, if the investor satisfies function and capacity requirements as prescribed in Section 1 and wishes to participate in the operation of the apartment building, the management board and the investor shall discuss to enter into service contract for the apartment building operation;

+ With respect to an apartment building having the elevator system:

++ If the investor fails to satisfy function and capacity requirements or satisfies all of function and capacity requirements prescribed in Section 1 but does not wish to participate in the operation,

++ Or if the investor performs the operation of the apartment building but fails to satisfy requirements specified in the signed service contract,

The apartment building convention shall decide to select another qualified unit that meets all of prescribed function and capacity requirements to operate that apartment building.

3. Number of management and operation units per apartment building in Vietnam

Each apartment building shall have 01 operating unit only to operate its shared area. An apartment building complex may have one operating unit or each apartment building in the apartment building complex may have its own operating unit as decided in the apartment complex convention.

If each building in the apartment complex has its own operating unit, the management board of the apartment complex shall reach an agreement with all operating units on the operation of shared technical facilities and civil engineering systems in the apartment building complex.

The operating unit may enter service contracts with other service providers to perform the operation work provided the operating unit must be responsible for service quality under terms and conditions specified in the service contract signed with the management board.

(Clause 4, 5, Article 27 of Regulation issued together with Circular 02/2016/TT-BXD (amended by Circular 28/2016/TT-BXD, Circular 06/2019/TT-BXD))

Van Trong

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