Apartment Rental Guide in Vietnam

APARTMENT RENTAL GUIDE IN

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VIETNAM 0904 615 855

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CONTENTS OVERVIEW

03

BEFORE YOU START

09

SEARCH FOR YOUR PROPERTY

31

CHOOSE A SOLICITOR

34

CHOOSE A PROPERTY

37

NEGOTIATE

43

SIGN THE CONTRACT

50

MOVE IN AND SET UP

64

DURING YOUR STAY

69

EXTEND THE TENANCY

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AT THE END OF THE TENANCY

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APPENDIX

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1.1 Who Is This Guide For? 1.2 Different Property Types You Can Rent In Vietnam

01 OVERVIEW 03

ABOUT As a full-service third-party advisor, PMC provides flexible and effective brokerage and management services that will maximize the value of your real estate assets.

We appreciate that you have choices when it comes to deciding on a partner for your project, but we believe that PMC is uniquely qualified in our field to provide you with real world solutions.

Experience: As a multi-capable real estate company, PMC is a large firm in residential apartments, retails, offices, mix-used communities, adaptive reuse projects and sustainable properties.

Relationships: Our board of managers have entrusted by both private and government sector, built many strong and stable relationships with developers and customers.

Expertise: We implement that strategy across multiple property types, from mixed-use communities to transit-oriented developments, retail centers, offices and apartments.

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Find more about our management capability and what PMC can do for you.

Property Management: Apartments, Offices, Shopping Malls & Hotels.

Facility Management: Technical Services, Property Assessment & Risk Assets, Financial Management Brokerage Services: Commercial & Office Leasing, Residential Leasing & Purchasing, Site Acquisition, Marketing for Projects.

Real Estate Consulting Services.

Corporate Real Estate Services.

Our servicesfor residential buildings: Marketing & Leasing

Airport Transfer & Taxi

Legal Advisory

Housekeeping

Travel Booking

Home Moving

Maintenance & Repairs

Insurance Cover

Fitting-out Management

Administration & Accounting

Laundry

Home Design

Pest Control

Home Doctor

Grocery Shopping

Landscape Maintenance

Personal Security

Pet Care

Baby Sitting

Delivery

Car Rentals

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1.1 Who Is This Guide For?

Every year, more and more expats are coming to Vietnam to live, work and enjoy their lives here. As a foreigner, there is so much to adapt to - cultures, languages, climates – and so much more that it can be overwhelming. Even something that is usually straightforward, like property renting, can be quite frustrating at times - perhaps you are unfamiliar with the ways in which Vietnamese real estate agencies conduct business or the terms of the contract are difficult to understand.

The purpose of this guidebook is to explain how a foreigner can rent a property, especially condominiums and apartments. Please use this guidebook as a reference when renting property and living in Vietnam.

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1.2 Different Apartment Types You Can Rent In Vietnam

Apartment buildings are classified into different categories to determine the value of the apartment buildings when managing them or putting them onto the market.

According to Article 5, Degree No.31/2016/TT-BXD, the criteria for classification of apartment include:

Architecture criteria; System- device criteria; Service- society system criteria; Quality, management & operation criteria.

The higher level the apartments is, the higher the apartment’s quality and more variety services are. Therefore, the cost of a serviced apartment will be higher than that of others.

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Serviced Apartment A fully furnished apartment available for short-term or long-term stay, providing hotel-like amenities such as housekeeping, fitness center, laundry service and where most taxes and utilities are included within the rental price. Most of them are equipped with full kitchens, Wi-Fi and in-apartment washers and dryers.

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02

BEFORE YOU START

Before you actively start searching for apartments and setting up appointments, you’ll need to figure out a few details. Your pre-search tasks should include:

Purpose

Visa type

Size

Ideal location

Community

Design

Furniture

Management company

Amenities

Service

By figuring these things out beforehand you will be able to narrow your search so you can stay focused and not be overwhelmed during your search.

Budget range

Pets

2.1 PURPOSE Obviously, the reason for your trip will affect your choice of where to stay. If you are on a business trip then your priority would be privacy, quiet surroundings, and good Internet connection. Vacationers might prefer somewhere more crowded and stimulating in an eye-catching and active setting. So, the first step is figuring out what you need or want to do on your trip in order to decide where to stay.

Foreigners who want to rent apartments in Vietnam must meet the requirements set at Point B, Item 2, Article 119, of the 2014 Housing Law and Article 74 of Decree 99/2015/NÄ?-CP on guideline for the 2014 Housing Law, as follows: Having full legal capacity to establish and exercise civil rights to perform housing transactions in accordance with the laws of Vietnam.

Must be eligible to own houses in Vietnam in accordance with the Housing Law of 2014: Foreign organizations or individuals who invest in housing projects in Vietnam must possess valid investment certificate at the time of housing transactions and must have apartments/houses built in the project.

Businesses with foreign investment, representatives of foreign businesses, foreign investment funds and branches of foreign banks operating in Vietnam must have valid investment certificate or other documents issued by the competent authorities of Vietnam for legal operation in Vietnam at the time of housing transactions.

Foreign individuals permitted to enter Vietnam must have valid passport that bears the entry seal of the Immigration authority and is not given diplomatic immunity and privileges Not required to have temporary registration or permanent registration in the place where the property is.

Foreigners renting houses in Vietnam must meet the regulations under Item 3, Article 119 of the Housing Law of 2014 and Article 74 of Decree 99/2015/NÄ?-CP on guidelines on the Housing Law, which include:

Must be eligible to own houses in Vietnam in accordance with the Housing Law of 2014.

Must have the function of providing real estate services and currently operate in Vietnam in accordance with real estate business laws if authorized to manage houses

2.2 VISA TYPE

Depending on the purpose that you declared, you will get the corresponding type of visa with fixed validation duration.

Visa validation duration does not affect rental duration and property types you can rent, because you can offer to extend your visa validation duration. Otherwise, when negotiating a duration term in the rental contract, you still need to consider visa validation duration and the ability of extending visa duration to avoid any disputes over leasing duration.

According to Article 8 of the 2014 Law on entry, exit, transit, and residence of foreigners in Vietnam, there are 20 types of visas, valid from 30 days to 05 years.

There are 02 ways to extend visas: (01) requiring the support of an agency (02) working in person with the Immigration Department or the Immigration Offices at provincial or city police departments.

To extend visa at the Immigration Departments, foreigners can proceed to one of the following addresses: Hanoi: 44 - 46 Tran Phu street, Dien Bien, Ba Dinh district HCM city: 196 Nguyen Thi Minh Khai, Ward 6, District 3 Da Nang: 78 Le Loi, Thach Thang, Hai Chau, Da Nang550000

To extend visa, prepare the following documents: Original passport Application form for Vietnamese visa and temporary residence extension (NA5) as stipulated Circular 04/2015/TT-BCA regulating specimen papers concerning foreigners entering, leaving and residing in Vietnam

For workers, investors and businesses, the following documents are also required: Legal documents of the business Labor contract and temporary residency certificate provided by local police department (for employees) Investment certificate and introduction letter from the employer (for employer) Temporary residency certificate provided by police department of the area where the foreigners are residing in Vietnam

2.3 SIZE At this point you need to take a look at your needs and figure out what size apartment you want to rent.

Do you only need a studio apartment?

One, two or three bedrooms?

One, two or three bathrooms?

The answer to this question will be highly dependent on your unique situation and how many people you plan to live within the rental.

Keep in mind, larger apartments and more occupants will increase the utility usage significantly, so make sure you budget accordingly.

If you like flexibility and more space, consider a condo or apartment.

If you like privacy and good service, look for a serviced apartment.

Setting a budget range is the most important step when starting out your search for a property to rent. The more crowded the area is, the higher the cost will be.

You need to figure out how much you can afford to pay each month in rent and utilities. Specifically, the expenses might include:

Utility bills: Water bill, Electricity bill, Internet, Cable TV, etc. (usually, these cost about $64.8 per month for a person to live in urban areas like Hanoi or Ho Chi Minh City).

Agency fee: If you use an agency, be aware of the fees they charge.

Service charges: The landlord or building management might offer you some additional services such as laundry, housekeeping or breakfast.

Other living expenses: The price of food, cost of transportation or any other amenities outside of the building should be figured into your plan as well. You can find out more online about the cost of living in specific cities to aid you in creating a budget.

2.4 BUDGET RANGE

Rent: Including the building management fee and taxes (about $300 - $400 per month for a fully-furnished one-bedroom apartment in the city center).

Property managers and landlords are advised to accept rental applicants whose monthly rental payment would be equal to 30 percent of their monthly income.

You should also care about the less tangible aspects like environmental quality, security and fire safety, satisfaction and community atmosphere. Those might not directly affect your budget, but over time these factors may influence your quality of life and physical and mental health, leading to possible financial consequences.

2.5 IDEAL LOCATION The location of your apartment will greatly impact your day-to-day life. A location in close proximity to places that you visit often can have many perks. This will decrease your commute which will not only save you money on transportation costs but will also save your precious time.

With these factors in mind, select your ideal locations and a few potential backup locations and target these areas in your search.

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You should take into account all of your needs in priority order when searching for a property and select a few potential locations. Here are some places which should be available in your area.

Workplace School Supermarket Public transportation Pharmacy Restaurant

Nearby parks Cafes Nightlife Movie theaters Swimming pools Fitness clubs

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2.6 COMMUNITY

Many of the expats living in Vietnam are young, single professionals or couples who have moved to experience living abroad and are using Vietnam as a base from which to explore Asia.

Living in a different country with distinct cultures means you have countless opportunities to experience something you have never experienced.

Someone once said: “The need for connection and community is primal, as fundamental as the need for air, water or food.� And for foreigners, that need for a good community with a blended culture is the key to enjoying your new life. Now, in Vietnam, especially in large cities like Hanoi or Ho Chi Minh, there are a lot of multi-cultural buildings with Japanese, Korean, Western, and Vietnamese residents. And you can easily choose a building that matches your lifestyle with just a little time and research.

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2.7 PROPERTY MANAGEMENT COMPANY

The management company plays an important role in maintaining and caring for the developer’s property while increasing the value of the assets. Moreover, providing good property management to tenants significantly improves their quality of life.

A professional property management company can assure that they will always be available and be able to meet tenants’ needs.

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2.8 DESIGN

Firstly, you should consider the design of the building. An intelligent building design can reduce energy consumption, promote healthy habits, and influence on living quality. You should consider: - Building setback - Communal open spaces - Sun-exposure and/or shaded areas in the communal outdoor space - Landscaping - Building entry and circulation - Noise levels - Energy efficiency - Waste and Recycling - Integrated water and storm water management

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Secondly, the property design is also what you should consider. As mentioned above, your purpose will make an impact on your decisions. Soundproof apartment walls can be a good choice for business trips; floor to ceiling windows with lots of natural light or a balcony with panoramic city view can give you peace of mind after returning home from a hard-working day.

The separation of areas such as living room, dining room and bedrooms should also be a consideration. You may not want the noise from the living room or food odors from the kitchen to affect your bedrooms.

Try to choose a place that feels like your own private, comfortable nest.

You should consider: - Functional layout - Room depth - Windows - Storage - Natural ventilation - Private open spaces - Accessibility

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2.9 FURNITURE

If you have just moved to this country, you will need a fully-furnished property where you can quickly settle down.

In this case, paying attention to furniture’s condition and maybe the brand-name is quite necessary.

However, you still might find some semi-furnished or unfurnished properties so that you can decorate the apartment yourself. There are diverse styles for you to choose from such as classic, retro, vintage, Scandinavian, minimalist, luxury, etc. Your furniture style is fully contingent upon your tastes.

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2.10 SERVICES

If you want to spend time working or traveling around rather than doing housework, you should find a property whose landlord or the management can provide not just general but also in-house services such as laundry, housekeeping, babysitting, grocery-delivery service etc.

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2.11 AMENITIES You may move to Vietnam with your family, which presents the need to meet various needs. In order to find a property which can conform to all your requirements, you should think about whether you need certain amenities like a pool, fitness center, minimart or spa. If you are looking at a condo or apartment, you may find these amenities on the premises.

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2.12 PETS

If you are a pet owner, or potentially would want to be one, this must be part of your criteria for an apartment.

Pretty much every apartment listing will state whether you’re allowed to have pets or not and what kinds of pets are allowed.

Remember to never try to sneak a pet into a property where they are not allowed and apply for Pet Registration Form.

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The regulations on apartment building management and use stipulated by the Ministry of Construction and attached with Circular 02/2016/TT-BXD specify that raising livestock and poultries in apartment buildings is prohibited (dogs and cats are considered livestock according to the 2018 Law on Animal Husbandry).

Although the regulations attached with Circular 02/2016/TT-BXD are only an example which apartment building management offices can use to develop the rules and regulations for the building they manage, these regulations are reasonable. Raising animals in apartment buildings may affect the sanitation of the apartment building and the safety of the residents. If the animals cause any harm or damage, the owners must compensate for these harms or damages.

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03

SEARCH FOR YOUR PROPERTY

SEARCH FOR YOUR PROPERTY

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3.1 PROPERTY WEBSITES

There are many websites out there today that will help you find available units according to your criteria.

Online sites are our first suggestion due to their ease of use, quality features, search results and available information on potential properties. These online tools allow you to quickly find several apartments that match your criteria.

Properties for rent are going on and off the market all the time so don’t feel discouraged if you can’t find something right away. Take a few minutes each day for a couple weeks to search for and contact agents and lessors. These online sites will provide all the details you need to figure out if a property is right for you and will have the contact information needed to set an appointment to see it in person.

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3.2 DIRECTLY CONTACT THE LANDLORD You can get information about an apartment directly by looking for landlords who are advertising their property themselves by some lower-tech means. In Vietnam, you may notice a sign while walking along the street or you can see many rental advertisements and flyers in public spaces.

3.3 REAL ESTATE AGENCY One of the most critical parts of renting property in Vietnam is finding a great agent to represent you. Your agent is your representative and will work to get you the best deal. While it can seem tempting to represent yourself or use the landlord’s agent, there are lots of pros to having your own agent, not least scheduling all the apartment viewings and negotiating your monthly rental fee.

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04 CHOOSE A SOLICITOR

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4.1 Why Do You Need A Solicitor?

Renting an apartment could be very risky, especially when you try to make a tenancy as a foreigner. The lease, which is often landlord biased, can impose a number of onerous obligations on Tenants, some of which may not be reasonable.

In addition to the Lease itself, property legislation, which is affected by the local laws and culture, has a large impact on the Tenant involved with the property. The best way to avoid those problems is to take the right legal advice at the start. Solicitors can deal with all areas of property rental law and are skilled in settling disagreements.

But prevention is better than cure.

Before you even look for a property, a solicitor can help you decide what the terms of the tenancy will be and can build these terms into a written 'tenancy agreement' tailored to your needs. So, if you are considering renting an apartment in other country, finding a professional local solicitor with deep knowledge in country laws and culture will help you avoid a lot of problems.

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4.2 PMC Solicitor Service PMC Solicitor Service is a part a PMC, focusing on helping tenants from other countries with formal process, documents, and any other legal issues that tenants might encounter during the tenancy. More specifically, our services includes: Explain the different types of tenancy agreement and identify the most suitable for you.

Draw up or check a tenancy agreement for you.

Highlight the essential requirements and terms of your tenancy agreement.

Explain issues.

any

related

legal

Warn you of any pitfalls, including advice on how to end an agreement.

Give you advice on the type of tenant references to ask for.

Representing you to negotiate the terms for your best interest and to carry out some legal procedures

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And we provide all those services on a multi-language online service as well as a 24/7 call center that will always be ready to give tenants the best advice.

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CHOOSE A PROPERTY

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5.1 For Short-term Tenancy (Stay Of 30 Days Or Less)

Look at the rating and reviews However, you should also care about the time gap in the positive reviews or the tone of the review to make sure it is legitimate.

Double check the accommodation on Google Even though you have carefully checked the reviews, you still should Google the place, look for more information and, especially, pictures and photos. The more photos the better. That way you can better understand the layout of a property to see if it will work for your plans. A floor plan can be very helpful.

Find a discount code To attract users, online sites often have a discount policy, so when you book a property you can also check out if there are any promotions.

Check the landlord’s ability to provide supporting paperwork Your landlord should help you in declaring temporary residence for foreigners with local authorities (according to Law No. 47/2014/QH13 dated June 16, 2014 of the National Assembly on entry, exit, transit, and residence of foreigners in Vietnam).

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The easiest way to find a short-term property is looking online. However, this is somewhat limiting because you can only rely on the information provided on the website. Here are some tips you can use to choose the short-term rental property that meet your requirements.

5.2 For Long-term Tenancy (Stay Of 30 Days Or More)

After having a list of potential property from your search, schedule a few different appointments on the same day to get it all done at once and compare several apartments when they are still fresh in your mind.

It will absolutely be better if you list out your requirements for the property. Maybe consider putting these into your checklist: - Clarify the parking situation - Locks, windows, and doors - Find out if appliances are provided in the apartment (Air Conditioner, Fridge, etc.)

- Check the water pressure - Check the internet and electrical stability - Ask about apartment community rules - Check the landlord’s right to rent and their ability to support tenants in dealings with local authorities

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+ Certificate of Ownership of House (origin or copy) or authorizing paper (origin or copy) (according to Article 119 of Law No 65/2014/QH13) + Business License (Required to let foreigners rent the property) (according to Decree No. 78/2015/ND-CP) + Certificates of eligibility for fire safety (according to Appendix 2, Decree No 79/2014/ND-CP)

+ Certificates of Satisfaction of Security and Order (according to Decree No 96/2016/ND-CP) + Declare temporary residence for foreigners (according to Law No. 47/2014/QH13)

Some buildings could require a minimum length of the tenancy, as the owner-occupants demand for the comfort and quietness of the residential environment.

Therefore, you should consider asking the landlord (or even better- the solicitor) for the codes of your target building.

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CONDITIONS FOR FOREIGN TENANTS

Having full legal capacity to establish and exercise civil rights and perform civil obligation in contract

Must be eligible to own houses in Vietnam

Not required to have temporary registration or permanent registration in the place where the property is.

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- Secure certificate of occupancy issued by the competent authority.

- Not subject to disputes or claims about ownership. If the lessor owns the property for a definite time, the property must still be in ownership of the lessor during the time of your contract.

CHECK THE RENTAL’S CONDITIONS TO BE ABLE TO RENT

- Not subject to any decision of land acquisition or notice of clearance and demolition of the competent authority.

- Ensure quality and safety for the house lessee; have adequate electricity, water supply and drainage systems; ensure environmental sanitation.

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06=

NEGOTIATE

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After choosing your ideal property, you should contact the landlord directly or via the agency to negotiate:

6.1 COST - The condition of the property: do not hesitate to ask the landlord to reduce the price if the condition is not as good as you expect.

Firstly, you should do some research and comparison between a few similar properties to figure out the standard price to expect. The overall cost could also be reduced by:

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- The duration of tenancy: In a lot of cases the landlords could offer some kind of discount if your tenancy is long enough. So maybe start with a short tenancy and negotiate to get a discount for a longer term.

- Consider what kinds of service are unnecessary: Some landlords could offer you a lot of additional apartment services and charge for them such as laundry or housekeeping. They could be convenient, but also costly, so thoroughly consider which services you truly need.

After choosing your ideal property, you should contact the landlord directly or via the agency to negotiate:

Wise choices about tenancy duration could potentially save you some money. However, you can have a short-term rental agreement first, to assure that property is the right place for you. Therefore, you should negotiate with the landlord about the tenancy duration and tenancy extension.

6.2 TENANCY DURATION

6.3 UTILITY BILLS For long-term tenancy, you will surely be responsible for the utility bills such as water, electricity or gas, but how it would be measured and be priced should be your main concern. Some landlords could use separate water meters or charge a higher price than the regulations permit.

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6.4 TENANT’S RIGHTS

The rental contract is negotiable. The tenant has the following rights: To manage the accommodation.

To participate in the General Residents Meeting (according to Article 12 of Circular No.02/2016/ TT-BXD on Regulation on Management and Use of Apartment Buildings).

To extend the tenancy if needed: also notice that before the tenancy ends, the landlord must remind you to decide whether to extend the tenancy or not.

Deposit: This is a repayable cost, which mean you could receive a refund if none of the related terms were violated. In some cases, the deposit could be considered as a kind of bond for repairs (if needed), not just as a guarantee that the contract will be concluded.

Exchange the rented apartments with other tenants if approved with written notification by the landlord.

Request the landlord to compensate for any damages caused by the landlord.

Request the landlord to repair the rented apartments if there are damages to the apartments that are not caused by the tenant.

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Continue renting according to the conditions negotiated with the landlord in case there is a change of owners Lease part or all of the apartment if specified in the contract or approved with written notification by the landlord Terminate the contract unilaterally under certain conditions Be able to use other public utilities, such as swimming pools, tennis courts, parking space, fitness or recreational facilities.

Enjoy other rights in accordance with the relevant laws or as negotiated in the contract

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6.5 LANDLORD’S RESPONSIBILITIES

Keep the property safe and free from health hazards.

Carry out repairs.

Do regular maintenance of services and furniture supplied by landlord.

Purchase fire insurance and other necessary insurances for the rented apartment;

Support tenants in procedures with local authorities: Make sure that the landlord or agency can help you with legal paperwork.

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Maintain and repair the apartment periodically or as negotiated. If the landlord does not maintain or repair the apartment, and consequently cause harm or damages to the tenants, the landlord must compensate for the harm or damages that may occur.

Ensure that the tenants can safely use the apartments during the renting period

Perform other responsibilities as required by the relevant laws or as negotiated

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07 SIGN THE CONTRACT

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TAKE PICTURES AS PROOF OF PROPERTY’S CONDITION

In order to compare the condition of the property before and after renting, you should take pictures as proof. You can avoid having to compensate for damage to the house which was not your fault.

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CAREFULLY CHECK THE INFORMATION IN THE CONTRACT including the following:

Form of tenant contract

Violate the contract

The content of the tenant contract

Terms of unilateral ending of the tenancy

Description of the housing transfer Payment Rights and responsibilities of the contract parties 52

Duration Deposit term

TENANT CONTRACT FORMAT

In accordance with the Housing Law of 2014, tenant contract must be made into written documents, but don’t have to be notarized.

The purpose of making written contract is to protect the benefits of all parties involved.

For tenant contract sample, refer to Decree 76/2015/NÄ?-CP on guidelines for law on real estate trading.

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CONTENT OF THE TENANT CONTRACT

Clause 5 of Article 121 of the Housing Law stipulates that a tenant contract must include the following information: Full name or title of the parties involved (individuals or organizations) Description of the housing transfer The price of the housing transfer if the parties involved negotiate on the price. If the price is regulated by local authorities, then this regulation must be followed; Deadline and methods of payment Deadline for housing transfer and renting duration

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Rights and responsibilities of the parties involved; Covenants involved;

of

the

parties

Other agreements; Effective date; Date of signing contract; Signature and full names of the parties involved. If the parties are organizations, seal (if available) and position of the signer must be provided.

Note: Although the law stipulates that the tenant contract must contain these contents, the parties can add additional provisions on dispute resolution or provisions of governing law. Because the tenant contract is signed between a foreigner, a Vietnamese organization or other individuals, therefore all the parties should make provisions on governing law in order to reach an agreement if any dispute occurs.

The content of the tenant contract must conform to Clause 5, Article 121 of the Housing Law of 2014. The parties involved must also pay attention to the following points when negotiating and making contracts :

DESCRIPTION OF THE HOUSE/APARTMENT

This must be described in detail in the contract. In the tenant contract, the parties involved must specified the characteristics, location, quantity and condition of the house/apartment.

Describing the house/apartment in full and detail will help the parties involved to protect their rights and perform their responsibilities.

For example: The tenant may require the landlord to handover the house/apartment that retains the shape, quality and condition as specified in the contract, in case the landlord fails to handover the house/apartments as specified in the agreement between both parties.

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PAYMENT

All transactions, payments, listings, advertisement, etc. cannot be executed in foreign currency in any form, directly or indirectly.

In other words, payment to costs and services from Vietnam should be in VND while payment to costs and services from outside Vietnam can be in other currencies.

Thus, a contract for services in Vietnam shall be void if the price in it was noted in or anchored in a foreign currency.

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When the contract is void, the parties involved must return to each other what they have received before the contract is negotiated.

In addition, all transactions executed in foreign currency, if noticed by the authorities, will be fined.

Therefore, the parties involved should negotiate and pay in Vietnamese Dong to avoid any legal issues that may arise.

* Key contract terms are understood as the core, irreplaceable terms for each contract. When a contract lacks key contract terms, the contract is considered incomplete and the parties involved can’t negotiate the contract.

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Legal framework

01

Ordinance 28/2005/PL-UBTVQH11

02

Ordinance 06/2013/PL-UBTVQH13

03 04 58

of the standing committee of the National Assembly dated December 13, 2005 on foreign exchange control

amending and supplementing a number of articles on foreign exchange control

Circular 14/VBHN-NHNN dated April 04, 2019 on guidance to restrict foreign exchange in Vietnam

Decree 88/2019/NĐ-CP

dated November 14, 2019 regulating penalties for administrative violations in monetary and banking sector

*For reference: Resolution 04/2003/NQ-HĐTP of the judges’ council of the supreme peoples’ court guiding the application of a number of law provisions to the settlement of economic cases (no longer in effect but can be used as refereced)

RIGHTS AND RESPONSIBILITIES OF THE PARTIES INVOLVED

The rights and responsibilities of the parties involved are based on the contents and value of the contract, and the legitimate benefits which the parties involved have agreed upon. These articles may be a repetition of the responsibilities and pledges defined in the previous articles and may include extra legally binding articles if deemed necessary by the parties involved.

Defining the rights and responsibilities of the parties involved will help the landlord and tenant to understand what rights each party has or what responsibilities each party must perform for one another.

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Pay the costs late; Violate the terms of health; fire safety; public security; environment; etc. in contract;

VIOLATE THE CONTRACT

Use incorrect personal information for any illegal purposes; Not completed other obligations in contract; Repair or renovate the apartment without prior notice Increase the renting costs without prior notice Other violations as regulated in the contract

When a party violates its obligations seriously, the other party has the right to terminate unilaterally the contract without any compensation for damage. The party who ends the contract must notify the other party immediately of its termination of the contract The aggrieved party shall receive a compensation for damage caused by the violating party The party unilaterally terminate the contract must inform the other party at least 30 days in advance, unless other agreements are in place.

This regulation will ensure that the tenant has enough time to pack their belongings and find a new place to stay.

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TERMS OF UNILATERAL ENDING OF THE TENANCY

DURATION The duration of the contract is defined and agreed upon by the parties involved. In case of open-ended contract, the contract shall terminate after 90 days. This is an important term to carry out the contract. The parties involved should identify clearly the effective date, duration (duration for goods delivery, service implementation, etc.) and termination date of the contract.

After the duration, each of party can offer to extend the lease expires. With the duration extension, the parties can negotiate to modify the terms as desired.

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TE RM SI T EP O D A security deposit equivalent to 1–3 months’ rent is given to the landlord.

When you move to a new residence, the money is used to pay any outstanding rent, make repairs and clean the house/apartment as necessary.

At the termination of the lease, landlord may refund the deposit to the tenant within 5 business days after moving out. The landlord has a reason to settle the outstanding amount of rent or other claims in relation to the tenant, as compensation for lost keys, not completed final cleaning or other damages caused by the tenant.

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7.1 GET SUPPORT FROM AGENCY OR LAWYER IF NEEDED

You should seek independent legal advice from a solicitor. A solicitor will act on your behalf to provide expert information about the property and will advise you on any risks or implications of a purchase.

7.2 MAKE AND KEEP A COPY OF ANY CONTRACT YOU SIGN Although you will keep a legal copy of the contract, you should make and keep another copy for yourself in case of emergency, for example lost or torn copies.

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08 MOVE IN AND SET UP

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Strategically pack your belongings by room, label everything clearly in order to maximize space and protect items from damage.

Ask friends and family to help for a fast and low-budget moving option.

1 .

8

o M

g n vi

s p Ti

Rent a moving truck: If you have already lived in Vietnam for a while, you will have a lot of belongings. Renting a moving truck is a good way to deliver your stuff to the new property.

Rent a moving company to load, transport and unload your possessions.

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8.2 Explore The Building

For a convenient and safe life, you should ask the building manager for a building tour. It is essential for you to understand the design of the building, you must know the location of fire escape ladder and fire extinguisher to be prepared in case of fire.

8.3 Buying Furniture Firstly, you together with the landlord should make a list of landlord’s belongings. After that, you may want to buy more furniture, kitchen appliances, and decorations to make your property cozier and more practical. The cheapest way is buying or swapping items in the Expats online groups. Or you can buy new items from interior dÊcor stores. You should ask your landlord or search on the internet for highly-rated furniture stores.

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8.4 Register With Local Authorities And Building Management Office

01 You will have the support from your landlord on temporary resident declaration for the local authorities and Building Management Office (if any) In accordance with the 2014 Law on entry, exit, transit, and residence of foreigners in Vietnam, the person who directly manage and operate the accommodation facilities is responsible for filling the temporary residency form for foreigners.

According to the Housing Law 2014, if the leaseholder is a foreigner, it is necessary that the person must be eligible to own houses in Vietnam as stipulated in Article 159 of the Law on Housing 2014.

02 Get support from solicitor: You can seek advice from a solicitor or authorize a solicitor to register with local authorities and Building Management Office

For this reason, you must provide the following documents to the person who directly manage and operate your accommodation facilities - Passport - Visa (if any) - Other papers that verify your identity

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8.5 Explore The Neighborhood 8.6 Informing Address Change Last but not least, when you change your address, you should inform others in order to in case of emergency. You should inform: Family and friends Current employer (in case of emergency and for tax documents) Financial institutions (bank, billing addresses) Educational institutions Subscription services

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It is important to get to know the neighborhood.

Have a walk around the area and remember every place you might need like bus stops, grocery stores, banks, pharmacies, coffee shops or gyms.

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G R N OU I R Y U

Y A

T S

D

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9.1

List of contact

You should make yourself a list of useful contact including addresses and phone numbers in case of emergency. The list should include: Building Management Office Building Owner’s Committee Solicitor Real estate agency Landlord Your country’s embassy Police station Hospital Pharmacy Bank …

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9.2

Transportation

You will need to go from place to place every day.

Therefore, ask your landlord for the most convenient and affordable transportation. You can use:

Bus: This is the most budget transportation in Vietnam. If your property is near a bus stop, this can be a good choice.

Metro: Hanoi and Ho Chi Minh city are 2 cities with ongoing metro projects. Although they are still under construction, the skytrain will be fast and convenient and is slated to begin limited operations in Summer 2019.

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Taxi/ Motorbike Taxi: You should book a taxi/ bike taxi via an approved app to assure the fare and safety.

Rental vehicle: If you have an international driving license, you can convert it at the local authority to legally rent a vehicle.

Bicycle (rental or purchase): You may want to include some suggestions about bicycles because many Tays like to exercise while commuting or want a green mode of transportation

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9.3 Pay Rent And Bills On Time If you don’t pay the rent, you can be evicted from the apartment due to a breach of the tenancy contract. As for utility bills, you should pay on time to avoid interruptions in service.

9.4

Maintain The Condition of Your Property It is important to maintain the move-in condition of any appliances and furniture. It is not only about your obligations as mentioned in the contract, but also about your convenient stay in the property. You should get your landlord’s permission before attempting repairs or decorating.

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Financial problems: Speak to your landlord as they may be able to help and are likely to be more sympathetic if you talk to them about any difficulties early on.

Unhappy with the quality of management: You should deliver your feedback to customer service in person or via the hotline. Your complaints will be valued and will improve the service quality.

The building is in an unsafe condition (insecurity, disrepair, health hazards, etc.): You should tell your landlord to get support from the local authority or other service providers.

9.5

If Things Go Wrong

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9.6

Connect With The Community

As the Vietnamese proverb says: “Better a neighbor nearby than a brother far away�. We believe that strong relationships among neighbors can make for a better living environment where people are willing to share and help each other.

We focus on building and developing community relationships through meetings, events, social media, and so on.

Therefore, you should begin participating in the building’s community as soon as you move in.

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9.7

General Resident’s Meeting As mentioned above, according to Vietnamese law, you have the right to attend the General Residents’ Meetings. This is an opportunity for you not only to enhance your relationships with other residents in the building but also to give opinions about the building services, facilities and other problems.

The Building Owner’s Committee and Building Management Office will be in charge of solving these problems to improve residents’ quality of life.

9.8

Residential Services As we understand the difficulties for foreigners who are fresh off the plane, the PMC team has provided a list of services for residential buildings to make your life in Vietnam more comfortable.

Our service is listed in Overview.

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Foreigners renting apartments are considered individuals using apartment buildings, in accordance with Circular 02/2016/TT-BXD on management and use of apartment buildings. Individuals who use apartment buildings are entitled to join the residential meetings to decide on the Owner’s Committee members, facilities, services and other issues pertaining to the apartment buildings.

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EXTEND THE TENANCY

10.1 Advance Notice 10.2 Get Support From Solicitor 10.3 Lease Extension Addendum

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10.1 Advance Notice If you want to extend the tenancy, make sure to notify the landlord at least one month before the end of the contract.

Failure to notify may result in the loss of renting rights to that property in the event that a new tenant has already leased it for the upcoming period.

10.2 Get Support From Solicitor After your first tenancy, you or the landlord may want to change the cost of rent or some rights and responsibilities in the signed lease agreement. Therefore, you should ask for help from your solicitor in order to strike the most reasonable deal.

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10.3 Lease Extension Addendum

The Lease Extension Addendum allows a lease agreement to continue past the previously established end date. Every change shall be mentioned in this addendum. The addendum must be signed by both the landlord and tenant and must be attached to the original lease agreement.

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AT THE END OF THE TENANCY

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11.1 Liquidation Agreement 11.2 Clean Up 11.3 Keep In Touch With The Agency And Solicitor For Further Information Or Services 11.4 Finalize Any Extra Rent And Bills 11.5 Take Back The Deposit 80

11.1 Liquidation Agreement A Liquidation Agreement is an agreement which is used to put an end to the tenancy.

This agreement can make the process easier. With this document, you and the landlord can settle things fairly.

The apartment should be cleaned before handover to the landlord. You can clean the apartment yourself or use a housekeeping service for professional deep cleaning.

11.2 Clean Up

11.3 Keep In Touch With The Agency And Solicitor For Further Information Or Services

Maybe you will come back to Vietnam in the future for another vacation or on business. Having a trustworthy agency and solicitor can help you a lot in finding a suitable accommodation for your stay later on.

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11.4 Finalize Any Extra Rent And Bills Make sure that your rent payments are up to date. Do not keep back rent because you think that it will be taken out of the deposit.

And do not leave bills unpaid.

11.5 Take Back The Deposit All of the aforementioned items need to be done prior to your move-out inspection so that you can receive your full deposit back.

Try to be present when the property is checked to determine whether any of the tenancy deposit should be deducted to cover damage. Use the pictures you took upon move-in as proof, if needed.

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APPENDIX 3 Law No 65/2014/QH13 On Housing

Article 119: Requirements Pertaining To Parties In The Housing Transactions 1. Any entity who sells, leases, leases and sells housing, transfers agreements on commercial housing sale, gives, exchanges, bequeaths, mortgages, lends, permit to stay in housing, or authorizes housing management must satisfy the following requirements: a. He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in this Law and law on civil; if the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale. b. If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in Law on Civil; if the entity is an organization, it must have legal personality, except for the organization giving house of gratitude.

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2. If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, borrows, or stays in housing, or is authorized to manage housing is a person, he/she must satisfy following requirements: a. If the entity is a Vietnamese person, he/she must have full civil capacity to enter into transactions in housing as prescribed in law on civil and he/she is not required to register permanent residence in the place where the house under transactions is located. b. If the entity is a foreign person, or an oversea Vietnamese, he/she must have full civil capacity to enter into transactions in housing as prescribed in Vietnamese law, qualify for the homeownership in Vietnam as prescribed in this Law and he/she is not required to register temporary or permanent residence in the place where the house under transactions is located.

3. If the entity who buys, rents, rents and purchases housing, or receives agreements on commercial housing sale, receives housing exchange, gives, inherit housing, receives housing as capital contribution or mortgage, or is authorized to manage housing is an organization, it must have legal personality regardless of place where it sets up or registers business; if the entity is a foreign organization, it must qualify for the homeownership in Vietnam as prescribed in this Law; if it is authorized to manage housing, it must provide real estate services and run business in Vietnam as prescribed in Law on Real Estate Trading.

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On Enterprise Registration

Article 66: Business Household 1. Business household owned by an individual, a group of individuals being Vietnamese citizens from 18 years of age or older, has full civil capacity, or owned by a household may only register one business location, employs fewer than 10 employees, and takes responsibility for the business operation with all of their property.

2. Households engaged in agriculture, forestry, aquaculture, salt productions, street vendors, nomadic businesspeople, and service providers earning low revenues are not required to registered, except for conditional business lines. The People’s Committees of provinces shall specify the low revenues applied within their provinces.

3. Any business household that hires 10 employees or more must apply for enterprise registration as prescribed.

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APPENDIX 4

Decree No. 78/2015/ND-CP

Article 71: Procedures For Business Household Registration The individual, group of individuals, or representative of the household shall submit the application form for business household registration to the business registration authority of the district where the business location is situated. Content of application form: a. Name, address, phone number, fax number, email address (if any) of the business household; b. Business lines; c. Capital of employees; d. Full names, signatures, residences, numbers and dates of issue of unexpired ID cards or passports of individuals establishing the business household (if the business household is established by a group of individual) or of the individual (if the business household is established by a individual), or representative of the household (if the business household is established by a household).

The application form must be enclosed with legitimate copies of the unexpired ID cards or passports of individuals in the business household or representative of the household, and a legitimate copy of the minutes of meeting of the group of individuals on establishment of the business household (in case the business household is established by a group of individuals).

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APPENDIX 5 List Of Establishments Requiring The Certificates Of Full Satisfaction Of Fire Prevention And Fighting Conditions Before Being Put Into Operation (Promulgate together with the Government’s Decree No.35/2003/ND-CP) 1. Dormitories, hotels, working offices, leased office building of 7 stories or more.

2. Establishments manufacturing or processing gasoline, oil, liquefied gas and chemicals, which are easily flammable, explosion-prone, of all sizes.

3. Establishments producing, processing, supplying, preserving and using industrial explosives.

4. Petroleum depots with a total volume of 500 m3 or more, liquefied gas depots with a total weight of 600 kg or more.

5. Gasoline, oil or liquefied gas stores.

6. Solid or semi-solid marketplaces with a total business space of 1,200 m2 or more or with 300 business households or more, trade centers, supermarkets, department stores with the total area of pavilions of 300 m2 or more or with a total volume of 1,000 m3 or more.

7. Thermo-electric power plants of a capacity of 100,000 kW or higher, hydro-electric power stations of a capacity of 20,000 kW or higher, transformer stations of 220 kV or higher.

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APPENDIX 6 Decree No. 72/2009/ND-CP On Providing For Security And Order Conditions For A Number Of Conditional Production And Business Lines

1. Heads of enterprises, branches or representative offices and lawful representatives at law of business establishments subject to security and order conditions must possess good morality, clear personal history and not fall into the cases defined in Article 3 of this Decree.

2. Business establishments subject to security and order conditions may conduct business activities only after being granted certificates of full satisfaction of security and order conditions by competent public security bodies.

Article 4: Conditions for dealing in production and business lines subject to security and order conditions

3. Only Vietnamese individuals and organizations in the country may produce seals. Only establishments of the People’s Army or the People's Public Security may produce and deal in the repair of support tools and the repair of hunting guns.

4. Production and business lines subject to security and order conditions must not lie within restricted areas under law.

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APPENDIX 7

Article 3: Interpretation Of Terms Residents are subsidiary proprietor who are directly using apartments or organizations, households, individuals that are legally using apartments and other areas in condominiums in the form of renting, borrowing, staying in, authorized to manage or use under decisions of competent agencies.

Article 12: General Residents Meeting

Circular No.02/2016/ TT-BXD On Regulation On Management And Use Of Apartment Buildings

1. For developments with one owner, the General Residents Meeting is the committee of the owner’s representatives and residents.

2. For development with many owners, the General Residents Meeting is a conference of representatives of subsidiary proprietors or current residents if the subsidiary proprietor does not attend (including the case of an apartment that has been handed over or other area in the apartment, but has not yet paid all the money to the developer, except in the case of termination of the contract of purchase, sale, hire purchase of apartments).

3. General Residents Meeting have the right to decide on contents related to the management and use of development under the provisions of Article 102 of the Housing Law and the provisions of this Regulation.

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APPENDIX 8 Handover Checklist

General - If there are ceiling fans, are they all working? Are there any broken fan blades?

- Does the thermostat work? Check both the heat and air conditioning. Also check filters and vents to make sure they are clear of obstructions.

- Are there any broken blinds?

- What is the condition of the carpets?

Are there any stains? Is it worn?

- Is it clean in general?

Kitchen - Do all the burners on the stove work?

Are all heating elements in the oven working properly? If it is a gas range, are there any leaks in the line?

- Inspect the refrigerator, freezer, dishwasher and garbage disposal, both for cleanliness and to make sure they are all working.

- Are the walls clean? Are there any stains that could indicate water damage or mold? Is there cracked plaster?

- Are all the electrical outlets working?

- Check the circuit breaker box, both so you know where it is and to see whether it is in good repair.

- Are all smoke detectors working properly? Make sure there is a smoke detector installed in each bedroom and outside of all sleeping areas.

- Do all the light fixtures work? Flip the lights on and off in each room to make sure.

Bedrooms - Are there any broken shelves or hanging racks in the closet?

- Does the room smell of mold or mildew? Check the room itself as well as the closets.

- If it is a furnished apartment, is the mattress clean? Is the bed sturdy?

- Check the faucet to make sure it works and doesn’t leak.

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Exterior & Building Security

- Are all door locks working properly?

Are all exterior doors sealed properly?

- Do exterior lights work properly?

- Do the windows close and lock as they should?

- Does each of the windows have a screen? Are the windows reasonably clean?

- Are there any leaks in the windows where you could lose cold or warm air?

Bathrooms - Is the toilet working as it should? Flush it once or twice and make sure it drains and fills properly. Watch and listen for leaks or other problems.

- Make sure the water heater and air conditioner are not leaking. Even if they aren’t wet, look for water stains; they may not have been in use recently.

- Is the shower or tub working? Make sure you know how to change the hot and cold water in the shower and if you don’t, just ask.

- Check the washing machine and dryer for any visible blockage.

- Is there any mold on the tiles, ceilings or walls?

- Is the faucet working properly? Are there any leaks?

- Is the pipe under the sink leaking?

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Other

- Check the floor for water stains where the washer may have leaked. Also check for mold.

APPENDIX 9 Apartment Checklist

ENTRANCE

LIVING AREA

Coat rack

Couch / Sofa

Floor lamp

Doormat

Cushions

TV

Chairs

Speakers

Coffee table

DVD / Media player

TV / Media unit

Power socket

Bookcase / Shelf

Curtains / Blinds

DINING AREA

Dining table Chairs

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KITCHEN Appliances

Dinnerware

Cookware

Cleaning / Dishes

Fridge / freezer

Plates

Frying pan

Dishwashing brush

Microwave

Side Plates

Wok

Dishwashing tub

Oven

Bowls

Pot with lid

Dish rags

Kettle

Deep plates

Saucepan

Towels

Toaster

Serving Bowl

Coffee machine

Oven / Serving Dish

Flatware set Knives

Coffee Mugs Teacups

Kitchen utensils Serving spoon Ladle Spatula

Dish drainer Paper towel holder Viscose cloths Dish soap Garbage can

Forks

Glassware

Whisk

Spoons

Wine glasses

Tongs

Teaspoons

Water glasses

Peeler

Other

Knife

Pitcher / carafe

Scissors

Food containers

Bottle opener

Jars

Corkscrew

Spice Rack

Colander

Bin

Measuring cup

Oven Mitts

Cutting board

Garbage bags

Cutlery Tray

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SLEEPING AREA / BEDROOM Mattress

Curtains

Duvet

Alarm clock

Duvet covers

Clothing hangers

Bed sheets

Night table / shelf

Pillows

Night light

Pillowcases

Chair

Wardrobe / closet

Under-bed storage boxes

BATHROOM

OFFICE / STUDY AREA Desk (with drawers) Desk light Bookshelf Desk chair

Bathmat

Hair dryer

Mirror

Waste bin

Medicine cabinet

Shelves

Towel holder

Soap holder / dispenser

Towel rail

Soap

Bath towels

Shampoo

Hand towels

Shower Gel

Shower shelf / caddy

Toothpaste Toothbrush 105

TOILET

CLEANING

Toilet brush

Vacuum cleaner

Cleaning gloves

Toilet paper

Broom

All-purpose cleaner

Toilet paper holder

Dustpan

Bleach

Toilet plunger

Bucket

Toilet Cleaner

Waste bin

Mop

Window Cleaner

Air freshener

Cleaning Cloths

Glass Wipes

Soap

Sponges

Stepping Stool

Towel

LAUNDRY

OTHER

Washing machine

Smoke detector

Laundry basket

BBQ facilities

Drying rack Detergent Iron Ironing Board

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APPENDIX 10 Move-out Checklist

GETTING STARTED

ALL ROOMS

- Refer to the apartment inspection checklist your landlord gave you when moving in

- Restore walls to their previous condition.

Remove nails/hooks and fill in holes.

- Review this checklist and customize it, creating a list of everything you need to do before leaving

- Dust everything, especially high shelves, ledges, exhaust fans and ceiling fixtures.

- Clean the windows.

- Wash windowsills, walls and baseboards.

- Don't forget to clean things such as doorknobs, light switches and outlet covers.

- Make sure floors are clean, including removing carpet stains. Have professionals deep clean the carpet if possible.

- Remove cobwebs.

- Replace any burned-out light bulbs.

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BATHROOMS - Scrub bathroom tiles.

- Bleach grout in the shower/tub.

- Clean the toilet. Replace the toilet seat if necessary.

- Clean out all cabinets and drawers, including removing liners.

- Wipe down and disinfect all countertops and plumbing fixtures.

- Make sure the mirror is clean and spot-free.

KITCHEN - Clean out the refrigerator as thoroughly as possible. Remove the drawers (if necessary) to reach everywhere.

- Scrub the stove, including the oven, all drip pans and burners.

- Sweep behind appliances.

- Clean and disinfect countertops.

- Polish the sink and faucet.

BEDROOMS / LIVING ROOM - Dust, vacuum and mop after furniture has been removed.

- Mop from the furthest point in the apartment out to the door just before you leave.

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OUTSIDE - Sweep out your garage and remove all belongings.

- Cut the grass and pull weeds if that is your responsibility.

- Remove anything that you stuck in the ground or hung from a tree.

FINAL STEPS - Schedule a final walkthrough with the landlord and refer to the inspection checklist.

- Ask for a copy of the final inspection for your records.

- Leave your keys in the location specified by your landlord.

- Turn off all lights before leaving the apartment for the final time.

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APPENDIX 11 INFORMATION FORM FOR A TEMPORARY RESIDENT CARD

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APARTMENT RENTAL GUIDE IN

VIETNAM Ha Noi: Floor 21, VNPT Tower, No. 57 Huynh Thuc Khang Str., Dong Da Dist. Đa Nang: No. 36 Tran Quoc Toan Str., Hai Chau Dist.

HCM: Room 505, No. 42 Pham Ngoc Thach, Dist. 3. www.pmcweb.vn 0904 615 855