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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 21-CP

Hanoi ,April 16, 1996

 

DECREE

ON THE AMENDMENTS AND SUPPLEMENTS TO ARTICLE 5 AND ARTICLE 7 OF DECREE No.61-CP OF JULY 5, 1994 OF THE GOVERNMENT ON DWELLING HOUSE PURCHASE, SALE AND BUSINESS

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;
At the proposals of the Minister of Construction, the Minister of Finance, the General Director of the General Department of Land Administration and the Chairman of the Government Pricing Commission

DECREES:

Article 1.- Article 5 and Article 7 of Decree No.61-CP of July 5, 1994 of the Government are amended and supplemented as follows:

1- Article 5 is amended and supplemented as follows:

"Article 5.- The State will sell the space of State- owned dwelling houses which are being rented to the tenants so that the latter may improve their housing conditions, except for the following dwelling houses:

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2. Houses of special use which are temporarily used as dwelling houses (such as hotels, sanatoria, schools, hospitals, working offices, warehouses and other houses of special use);

3. Villas of various kinds planned for use as public buildings or for other purposes;

4. Multi-storey dwelling houses built by the State and designed into unself-contained apartments rented to many households.

These houses can be sold only after being renovated or repaired into self-contained and well-furnished apartments."

2- Article 7 is amended and supplemented as follows:

"Article 7- The selling price of State-owned dwelling houses to the current tenants includes the price of the dwelling house and the price of residential land at the time of transfer of the land use right.

1. The price of a dwelling house shall be determined on the basis of its remaining value and the coefficient for readjusting its use value:

a) The remaining value of a dwelling house shall be determined on the basis of the percentage points of the remaining value of the house, compared with the cost of building a new house, as stipulated by the People's Committees of the provinces and cities directly under the Central Government (hereafter referred to as provincial authorities) on the basis of the standard floor price of a new house stipulated by the State. This percentage shall be determined for each specific housing space to be sold, taking into account the duration for which it has been used and the actual state of the house.

The Ministry of Construction, the Ministry of Finance and the Government Pricing Commission shall provide guidance on the method to determine the remaining value of a dwelling house.

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b1) The coefficient for readjusting the use value of dwelling houses of various kinds, except for those mentioned in Point b2 below, is as follows:

- 1.2 for the ground floor and houses without storeys

- 1.1 for the 1st storey

- 1.0 for the 2nd storey

- 0.9 for the 3rd storey

- 0.8 for the 4th storey

- 0.7 for the 5th and higher storeys

b2) The coefficient for readjusting the use value of multi-storey dwelling houses which are rented to many households and structured into apartments, is as follows:

- 1.0 for the ground floor

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- 0.7 for the 2nd storey

- 0.6 for the 3rd storey

- 0.5 for the 4th storey

- 0.4 for the 5th and higher storeys

c) With regard to multi-storey dwelling houses which are rented to many households and structured into apartments and were handed over to users before November 27, 1992 (date of the promulgation of Decision No.118-TTg of the Prime Minister) the provincial People's Committee shall be entitled to apply the coefficient of readjustment from 1.0 to 0.5, on the basis of the actual use value of each house.

2. The price of residential land at the time of the transfer of its use right shall be set by the provincial People's Committee on the basis of the land price bracket set by the State, the site of the residential land and the position of the storey:

a) For a one-storey or multi-storey dwelling house rented to a household, it is equal to 40% of the land price when its use right is transferred.

b) For a multi-storey dwelling house rented to many households, it is equal to 10% of the residential land price when its use right is transferred and is determined according to the position of the storey and the coefficients in the following table:

Housese

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Ground floor

1st storey

2nd storey

3rd storey

4th storey

5th storey and higher

2 storeys

0.7

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3 storeys

0.7

0.2

0.1

 

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4 storeys

0.7

0.15

0.1

0.05

 

 

5 storeys and more

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0.15

0.08

0.05

0.02

0.0

Article 2.- This Decree takes effect from the date of its signing.

- Where the tenant buys an apartment in a multi-storey dwelling house which is rented to many households and structured into apartments as stipulated in Chapter II of Decree 61-CP of the Government before the date of the promulgation of this Decree, the People's Committees of the provinces and cities directly under the Central Government shall readjust the selling price of dwelling houses in accordance with this Decree and on the following principles:

1. If the buying party has paid the full rent, the difference between the selling price of the dwelling house defined in Decree No.61-CP and the selling price of the dwelling house defined in this Decree shall be returned to it.

2. If the buying party has not yet paid the full rent, the buying and selling contract on the dwelling house shall be signed again and the selling price shall be readjusted according to this Decree.

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Article 3.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

 

 

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Vo Van Kiet