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Appear later than the world but condotel market in Vietnam has rapidly developed to meet the increasing demand of tourist and domestic tourists. However, the strong development of condotel is a legal concern and shortcomings in the business operations of this product line of many investors.
The results of the inspection and survey of the management and exploitation of tourist apartments in the investment projects in Nha Trang City of the Tourism Department of Khanh Hoa recently showed that the owners are managing, organizing the operation of the project exploitation according to the investment certificate granted by the province. Accordingly, the purpose of the investment is to exploit the business of accommodation in accordance with the provisions of the Law on Tourism.
However, in 10 inspection units, only 3 projects are Diamond Bay Resort condotel – Resort – Phuoc Ha, Phuoc Dong; Vinpearl Nha Trang Bay Resort – Villas and Vinpear Golf Land Resort – Villas and Resorts Tam Tam has all the villas and apartments exploited in the form of cooperation to exploit tourist accommodation.
The investors are operating unclear actions with many purposes including an apartment for rent, rent or self-organizing tourist accommodation business. Including Muong Thanh luxury hotel complex (60 Tran Phu); Vinh Hoa apartment building (06 Duong Hien Quyen, Vinh Hoa ward, Nha Trang); Star City Hotel Nha Trang (72 – 74 Tran Phu); Island Resort (304 Street 2/4); Hoan Cau Trade Center and Hotel (Nha Trang Center, 20 Tran Phu) …
Mr. Tran Viet Trung, director of the Khanh Hoa Tourism Department, said that due to the unclear operation of the use purpose, the determination of responsibility for the performance of tax obligations was still inadequate, unclear, difficult to manage and reconcile tax collection.
You can read more information at: Vietnam Real Estate News
At the direction of Mr. Le Duc Vinh, Chairman of Khanh Hoa People’s Committee, writes about the unclear operation of the land use purpose of the investor: Recently, the type of tourist apartments in the province has developed strongly, with various forms of management, exploitation and business, While the specific legal provisions on this content are unclear, leading to many difficulties and shortcomings in the State management of taxation, security and order, fire prevention and fighting, temporary residence registration …
Undeniably, condotel now has many advantages, associated with many tourist activities. While tourism is now a key national economic industry, it is being invested, opening up opportunities to exploit the potential of the country, especially marine resources. As Mr. Nguyen Ngoc Thanh, vice chairman of VNREA, affirmed, in investment channels, there are no channels that have strong attraction as real estate in general, condotel in particular.
However, it must be admitted that, besides strengths, the condotel has potential legal concerns, selling prices and a heavy burden of risk in committing profits to customers.
Vu Xuan Thieng, deputy director of Khanh Hoa’s Department of Natural Resources and Environment, said that there are 14 real estate projects in the city. Among them, 13 projects have been granted investment certificates. After a period of inactivity, the greatest difficulty in issuing certificates of land use rights, ownership of houses and other property attached to land for each apartment in multi-functional mixed-use projects is not specific regulations.
Previously, Pham Van Thuong, Head of Real Estate Management – Department of Housing Management and Real Estate Market (Ministry of Construction) said: “Condotel is a new type of real estate and the Law has not specified. The Ministry of Natural Resources and Environment issues land use issues when issuing books. According to regulations, there are two types of land use term: long-term and long-term, only residential land. I have not seen any red book in the condotel, the General Land Department said that I have never seen the red book. “
Regarding this matter, Vu Thi Lan Anh, Deputy CEO of CEO Group, said that the Vietnam Real Estate Association and the business have proposed the Ministry of Construction and the Prime Minister on legal documents with condotel, customers want a certificate of ownership, as well as their savings. Value-added property. “I suppose, in order to secure the rights and interests of our clients, investors we would like to have written guidelines permitting the purchase of condotel certificates of title ownership attached to the land.”
To solve this problem, the Department of Natural Resources and Environment of Khanh Hoa has solved the solution as for the project of combining tourist apartments with commercial tourism, the provincial People’s Committee will support Clause 22, Article 2 of Decree 01/2017 / ND-CP dated 6/1/2017. In particular, the regulation “For projects with many construction items shown in the decision approving the investment project, the investment decision on the project, the investment license, investment certificate, the investment registration certificate granted by the competent agency, the decision approving the detailed planning, … if the investor has a need and condition, the competent State shall issue a certificate of land use right, ownership of dwelling houses and other assets attached to land for each construction item or part of the area of work item.”
Thus, if the owner wishes to issue a certificate to each apartment and the apartment area shown in the construction permit or certificate, the certificate will be issued at the request of the owner.
In the recent meeting, Khanh Hoa province has agreed on the management solution for tourist apartments in Nha Trang. Accordingly, during the investment licensing period, the Department of Planning and Investment and departments, the Department of Construction and the Department of Natural Resources and Environment are responsible for determining the type of hotel business associated with the tourist apartment. The tourism industry will be responsible when the project has completed the procedures to go into operation in accordance with the provisions of the Law on Tourism. And the management of tourism of these apartments is the responsibility of the owner. With the efforts of Khanh Hoa province in clarifying, unified management of tourism apartments will contribute to attracting investment capital into the property market, including tourism apartments.
Mr. Pham Van Thuong said that after the associations had opinions with the Ministry of Construction on the legal status of the condotel, the Ministry of Construction reported to the Prime Minister. The prime minister then handed over 3 ministries. The Ministry of Construction is tasked to develop this type of regulation, the Ministry of Natural Resources and Environment is responsible for the construction, management, and ownership of assets on land. The Ministry of Finance will prepare a financial management framework for the development of this model.
“Next time, the legal basis of the condotel type is taken into account more clearly. In principle, the business is doing what the law does not prohibit”, Mr. Thuong said.
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