O/L 4308 – PROVINCES MUST CONSIDER CONDOTEL & SHOPHOUSE CONSTRUCTION

The Ministry of Construction has recently issued Official Dispatch No. 4308/BXD-HDXD to the People’s Committees of central cities and provinces on the management of investment and construction of accommodations, offices combined with accommodation, resort villas, commercial townhouses (condotel, officetel, resort villa and shophouse).

According to the Ministry of Construction, in the last few years, a new type of real estate has emerged in several localities, to which the unclear legal regulations has caused shortcomings in the management of construction and investment as well as the operations of condotel, officetel, resort villa and shophouse, specifically as follows:

– Some construction planning projects, though have determined the functions of condotel, officetel and resort villa, have yet to calculate the population reasonably;

– There are some problems and shortcomings in the operation, management and use of the building with the function of condotel, officetel due to a large number of owners and users who operate and exploit;

– Lack of legal provisions in the contractual relationship between initial investors and secondary investors;

– The local governments are still confused in the granting of ownership certification for condotels, officetel, resort villas…;

– Some investors have required to convert types of condotel and officetel to commercial houses, putting pressure on local technical and social infrastructure systems.

In the Official Dispatch No. 4308/BXD-HDXD, the Ministry of Construction requests the People’s Committees of central and provincial cities to assess the actual situation in the locality and consider granting new certification for construction and investment of such buildings (approval of planning, decision on investment policy for construction projects with the above real estate types). Simultaneously, the construction-specialized authorities, when carrying out project appraisal, construction design, construction licensing, and acceptance procedures, need to scrutinize the legal regulations on construction plan, investment policy, compliance with the system of standards and technical regulations, especially reecently-issued regulations on condotel, officetel, resort villa and shophouse.

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