Eligibility of entities managing apartment building operation as of January 1, 2025 in Vietnam

Eligibility of entities managing apartment building operation as of January 1, 2025 in Vietnam

Pursuant to Article 150 of the Law on Housing 2023 (taking effect on January 1, 2025), regulations eligibility of entities managing apartment building operation are as follows:

(1) Entities managing apartment building operation shall meet requirements below:

- They are public service providers or enterprises, cooperatives, joint cooperatives capable of managing apartment building operation;

- They have technical, customer service, security, fire safety, hygiene, environment departments and other relevant departments for the performance of management services of apartment building operation;

- Managing individuals and employees engaging in operation management of entities managing apartment building operation must possess appropriate professional qualification in fields of construction, electrical engineering, water engineering, fire safety and firefighting, and operation of equipment associated with apartment buildings and certificate of completion of training, refresher training for professional knowledge and skills in managing apartment building operation.

(2) Entities managing apartment building operation shall only provide management services after obtaining notice of eligibility for managing apartment building operation of competent authority.

Eligibility of entities managing apartment building operation as of January 1, 2025 in Vietnam (Internet image) 

Management service fees for apartment building operation in Vietnam

Pursuant to Article 151 of the Law on Housing 2023, the management service fees for apartment building operation are as follows:

- Determination of management service fees for apartment building operation shall be open, transparent, and corresponding to tasks requiring management and services necessary for each type of apartment buildings.

- Management service fees for apartment building operation shall not include premiums of fire insurance, maintenance costs, vehicle tending costs, fuel costs, energy costs, domestic water, television services, communication, wages for administration boards, other service fees for services used by apartment buildings owners and users.

Management service fees for apartment building operation shall be determined in Vietnamese currency and calculated for every square meter of usable area of flats or other area in apartment buildings.

- In respect of apartment buildings with multiple owners, management service fees shall be regulated as follows:

+ If initial apartment building meetings have not been held, management service fees shall conform to contracts for housing purchase, lease purchase;

+ If initial apartment building meetings have been held, management service fees shall be agreed upon by managing entities and apartment building meetings.

- In respect of apartment buildings with single owners, management service fees shall conform to agreement between apartment building owners and users under lease agreements; in respect of apartment buildings under public ownership, management service fees shall conform to Clause 7 of  Article 151 of the Law on Housing 2023.

- In respect of mixed-use apartment buildings, management service fees applicable to business and service areas and private areas used as motor vehicle parking spaces shall be determined as follows:

+ Management service fees applicable to business and service areas shall be negotiated by the parties depending on activities in business area and position of apartment buildings;

+ Management service fees applicable to private area used as motor vehicle parking spaces shall be agreed upon by the parties and may be lower than management service fees of flats in the same apartment buildings.

- In respect of apartment buildings serving accommodation, management service fees applicable to private area serving as motor vehicle parking spaces shall conform to Point b Clause 5 of Article 151 of the Law on Housing 2023.

- Provincial People’s Committees are responsible for promulgating price range of management service fees for cases below:

+ Collect management service fees for apartment buildings under public ownership in provinces and cities;

+ Act as the basis for parties to consult in negotiation of management service fees in respect of housing that are not public housing or in case of disputes regarding management service fees between entities managing apartment building operation and apartment building owners, users; in case of failure to agree on management service fees, value under price range stipulated by provincial People’s Committees shall be applied.

Mai Thanh Loi

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