Vietnamese authorities continue to sit on laws to regulate condotels

Created 19 May 2019
  • PDF
Editor Choice
(0 votes, average 0 out of 5)

The government has yet to create a legal framework for condotels though many people are keen to buy and sell them.
Vietnamese authorities continue to sit on laws to regulate condotels

Nguyen Manh Khoi, deputy head of the Ministry of Construction's department of house and real estate management, said at a recent forum that though regulations are now clearer than before, the ministry has yet to provide specific directions on how this type of property should be managed or technical specifications.

This has led to inconsistency in interpretation of regulations in different places, creating opportunities for corruption, industry insiders said.

Dang Hung Vo, a former deputy minister of natural resources and environment, said authorities are confused by the name of property segments whereas they should be focusing on their function to define them.

Vietnamese have always been using their houses for both residential and commercial purposes, and a condotel is the same, he said.

"If a condotel owner wants to use their condotel for commercial purposes, authorities can tax that business activity."

He suggested that the laws should be changed to include multi-purpose real estate, which allows owners to decide the main purpose of their asset.

Echoing Vo, economist Nguyen Tri Hieu said: "A condotel is a commercial property. All real estate and tax laws should define them as so."

The government needs to quickly complete the legal framework so that banks can accept them as collateral and buyers do not have to worry about title, he added.

Last year over 8,000 condotels entered the market in 12 cities and provinces, mostly popular tourism destinations such as Da Nang and Khanh Hoa Province in the central region, Ba Ria – Vung Tau Province in the south and the Quang Ninh Province in the north.

Over 7,800 condotels were bought, an absorption rate of 92 percent.

Source: VNE

Maybe You Also Interesting :

» Korea Exim Bank opens $2 billion credit line to PetroVietnam

The Export-Import Bank of Korea said on Sunday that it has agreed to open a US$2 billion credit line to Việt Nam’s State-owned Vietnam Oil and Gas Group...

» Baby ‘boon’ers flock to Saigon pagoda for fertility goddess

One Sunday morning, Le Thu Huong, 32, drives more than 200 kilometers to Saigon from her home in An Giang in the Mekong Delta.

» A few prayerful belly rubs for a baby

A fertility goddess and midwife fairies grant motherhood boons in Saigon.

Popular News Categories:

- Asia & Asean  |  EU & Russia  |  America

- Facts  |  Urban  |  Faculty  |  Environment

- Business  |  Finance  |  Market Health

- Destination  |  Cuisine  |  Arts Music

- Cinema  |  Soccer  |  Sports  |  IT & Internet