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Four tips on investment and construction management of Projects with Condotel and Officetel Apartments

The Ministry of Construction has issued the Official Dispatch No. 4308/BXD-HDXD regarding the investment and construction management of projects with condotel (a hybrid of condominium and hotel), officetel (a hybrid of office and hotel) apartments, resort villas or shophouses.

According to this document, in order to continue to improve the effectiveness and efficiency of the state authority over the management of construction investment, the Ministry of Construction requests the People’s Committees of provinces and centrally-run cities to order relevant agencies and units during the process of their management of construction investment, or construction authorities during the process of their implementation of administrative procedures, for construction investment projects with condotel, officetel apartments, resort villas or shophouses should keep the followings in their mind:

First, when evaluating and approving zoning plans and construction plans, People’s Committees of centrally-affiliated cities and provinces must ensure that these plans are conforming to technical standards and regulations in force, and provide clear explanations about the size of the construction floor area, the number of apartments and inhabitants for the arrangement of condotel, officetel, resort villa or shophouse functions to determine the criteria and requirements concerning technical and social infrastructure.

Second, when deciding investment policies for construction investment projects with the above real estate types, it is required to ensure the correspondence between investment purposes or land uses and functions of construction projects; note that the formation and development of this type of real estate must be suitable to the local real situation over periods of time.

Third, the People’s Committees of provinces and centrally-run cities are requested to, based on local actual situations, consider issuing new legal investment and construction permission formalities (including approval of construction plans, decision on investment policies for investment and construction projects with the aforesaid types of real estate) while the management and operation of these types of real estate still face some difficulties as stated in the Official Letter No. 4308/BXD-HDXD.

Forth, when carrying out evaluation of projects, construction designs, construction licensing, and inspection of acceptance testing, construction authorities must carefully inspect and review legal frameworks for construction planning, investment policies, assessment of compliance with technical standards and regulations, especially those related to condotel, officetel apartments, resort villas and shophouses that have just been issued; In case of unclear information related to the population scale on the side of the accommodation function and the capacity to meet infrastructure requirements of project areas, it is necessary to send written documents to local regulatory planning authorities to seek their further explanations.

Notification reports on evaluation and inspection of acceptance testing activities should be all sent to local regulatory construction authorities for their managerial purposes during project development and operation period.

The Official Dispatch No. 4308/BXD-HDXD was issued on September 3, 2020.

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