Joint Circular No. 1-LBTT guiding the valuation for renting residential houses

CIRCULAR

MINISTRY OF CONSTRUCTION AND MINISTRY OF FINANCE

Guidelines for Determining Rental Prices for Housing

Pursuant to Decision No. 118/TTg dated November 27, 1992 of the Prime Minister on rental housing prices and incorporating housing costs into salaries;

Pursuant to Decision No. 137-HĐBT dated April 27, 1992 of the Council of Ministers on price management;

After reaching consensus through discussions with the State Planning Commission, the General Confederation of Labor of Vietnam, and the Government Price Board, the Ministry of Construction and Ministry of Finance provide guidelines for determining rental prices for housing as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. The rental price for housing determined under this Circular serves as the basis for calculating housing costs for state-owned properties currently managed by land management agencies, administrative and public service agencies, armed forces, Party and mass organizations at central and local levels, and production and business units that have rented or allocated housing to cadres, civil servants, and employees before November 1, 1992 (hereinafter referred to as the rental price for housing).

The rental price for housing specified in this Circular serves as the basis for determining the obligations of organizations managing and operating state-owned housing development.

This price also applies to private housing that was rented out according to state-directed values before November 1, 1992.

The rental price for housing only applies to tenants using the housing for residential purposes. Housing used for other purposes (such as production, business, services, etc.) is not within the scope of this Circular.

2. Based on the standard prices, coefficients, and calculation methods stipulated in Section II of this Circular, People's Committees of provinces and centrally-administered cities (hereinafter collectively referred to as provinces) shall determine and announce the application of rental housing prices for each type of house within their territorial jurisdiction (regardless of the level of management and the direct managing agency).

3. The standard prices for eight types of houses (categories I, II, III, IV of villas) and the coefficients prescribed in Section II of this Circular shall be uniformly applied throughout the country and may only be adjusted upon a decision by the State.

4. The rental prices for housing determined in this Circular apply to houses that meet the necessary safety standards as prescribed by the State. For houses that do not meet the required standards, the housing management authority must develop plans and measures to repair them or negotiate with tenants to undertake repairs according to approved budgets, which will then be deducted from monthly rent payments.

5. The criteria for classifying villa categories (for villas) and housing grades (for other types of housing) to determine rental prices are based on the provisions in Appendix 1 attached to this Circular.

II. DETERMINING RENTAL PRICES FOR HOUSING

1. The standard prices for eight types of houses (villas and general housing grades) are set forth in Table 1 below:

Table 1: Standard prices uniformly prescribed for each type of housing.

Unit: VND/sq m usable - month

The category of villa and grade of general housing are determined according to Appendix 1 attached to this Circular.

The usable area (sq m) for calculating rent based on the prices in Table 1 includes the following areas:

- Area of living rooms or parts used for living purposes ... sq m

- Area of auxiliary rooms and parts (kitchen, toilet, bathroom, laundry, washing...) ... sq m

2. Coefficients for adjusting standard prices to determine specific rental housing prices:

a) The specific rental housing prices in each province are determined based on the standard prices set forth in Table 1, along with four groups of coefficients as follows:

- Urban level coefficient (K1)

- Location coefficient within urban areas (K2)

- Floor height coefficient (K3)

- Traffic condition coefficient (K4).

The values of K1, K2, K3, K4 are uniformly prescribed in Tables 2, 3, 4, and 5 of this Circular.

Table 2: Urban level coefficient (K1)

³

Note: The urban level (I, II, III, IV, V) is based on Decision No. 132-HĐBT dated May 5, 1990 and the classification table attached to this Circular (Appendix 2).

Table 3: Location coefficient within urban areas (K2)

³ ³ ³ ³

Table 4: Floor height coefficient (K3)

Note: In places where the term ground floor is used, the ground floor is equivalent to the first floor as defined in this Circular.

Table 5: Traffic condition coefficient (K4)

b) Principle of applying coefficients: Each type of villa and each level of housing shall apply a maximum of not more than four coefficients specified above; the plus sign (+) increases, the minus sign (-) decreases.

3. Rent price for 1 square meter of usable area of housing:

a) For villas of various types:

³ Standard price of ³ 1 + total of all coefficients

Rent price = type of villa ³ x applied according to Article ³ V/m² usable month

villa ³ corresponding ³ ³ villa condition ³

rent

b) For houses of levels I, II, III, IV:

³ Standard price corresponding³ 1 + total of all coefficients

Rent price = to level of house³ x applied according to Article ³ V/m² usable month

housing levels ³ ³ ³ rental housing condition ³

4. Monthly rent payment:

Total rent to be paid for the entire usable area = ³{ Rent price for 1m² Usable Area }

for the entire usable area = ³ amount ³ { calculated according to each type of ³ }VND/month

area ³ ³ { specified in Section 3 corresponding to the rent price ³ }

³ ³ { fee ³ }

The specific calculation of monthly rent is detailed in the examples in Appendix 3 attached to this Circular.

III. IMPLEMENTATION

1. The Chairman of the Provincial People's Committee organizes the division of areas within urban areas, investigates and determines the types of houses and sets rental prices for housing according to the guidelines of this Circular to be uniformly applied within the territorial scope of the province and report to the relevant ministries.

2. The Department of Land or Construction Department (where there is no Department of Land) bases on this Circular and actual investigation data of the locality, coordinates with the Finance-Price Control agency and the Trade Union of the province to develop rental pricing plans for housing in each district of the province, submit to the Chairman of the Provincial People's Committee for approval and public announcement before implementation, and simultaneously report to the relevant ministries.

3. Organizations managing or operating housing in localities, central sectors, social organizations, and private entities that have housing available for rent before November 1, 1992 base on the rental prices for housing announced by the Chairman of the Provincial People's Committee, proceed to sign new or renew lease contracts with all tenants to implement rent collection and fulfill obligations to the State from November 1, 1992.

4. During the process of implementing this Circular, if there are difficulties or obstacles, they should promptly reflect them to the Ministry of Construction so that the Ministry can coordinate with the Ministry of Finance to provide guidance and resolution.

APPENDIX NUMBER 1.

STANDARDS FOR CLASSIFYING HOUSING TO DETERMINE RENTAL PRICES.

1. Housing levels:

Note:

1. Fire resistance levels are applied according to TCVN 2022-78 fire prevention standards for buildings and structures.

2. Temporary usage quality is assessed based on the degree of completion as follows:

Level I: Complete, mostly high-end materials, good wooden doors.

Level II: Complete, good sanitary equipment and doors made of quality materials.

Level III: Incomplete, all ordinary materials.

Level IV: Incomplete, all ordinary and low-quality materials.

2. Villas:

A separate residential house, with a yard, garden, fence, built with brick tiles or reinforced concrete, architectural aesthetics, full living facilities, each floor has at least two rooms facing the yard or garden (excluding reception and dining rooms). Villas are divided into four categories:

a) Adjacent villa.

b) Twin villa.

c) Independent villa.

d) Luxury independent villa.

Classification of villas is based on the degree of use of expensive building materials, the size of the garden, the level of decoration and living facilities, and the arrangement of bathrooms and sanitation; category 1 may have one bathroom per floor and category 4 has one bathroom per room.

ANNEX NO. 2

TABLE OF URBAN CLASSIFICATION TO DETERMINE RENTAL HOUSING PRICES.

Type I City Type II City

1. Ho Chi Minh City 1. Da Nang

2. Hanoi 2. Hai Phong

3. Can Tho

4. Hue

Type III City

1. Nha Trang 7. Bien Hoa

2. Nam Dinh 8. My Tho

3. Quy Nhon 9. Thai Nguyen

4. Vung Tau 10. Vinh

5. Long Xuyen 11. Hon Gai

6. Dalat 12. Phan Thiet

Type IV City

1. Cam Pha 25. Ben Tre

2. Buon Ma Thuot 26. Thu Dau Mot

3. Vinh Long 27. Ha Dong

4. Soc Trang 28. Dong Ha

5. Thanh Hoa 29. Quang Ngai

6. Ca Mau 30. Son Tay

7. Bac Lieu 31. Tay Ninh

8. Viet Tri 32. Bac Ninh

9. Phan Rang 33. Kon Tum

10. Pleiku 34. Son La

11. Hoa Binh 35. Lang Son

12. Rach Gia 36. Ninh Binh

13. Thai Binh 37. Cao Bang

14. Yen Bai 38. Vinh Yen

15. Tuy Hoa 39. Tuyen Quang

16. Cao Lan 40. Bim Son

17. Hai Duong 41. Kien An

18. Chau Doc 42. Hoi An

19. Sa Dec 43. Lai Chau

20. Tan An 44. Dong Hoi

21. Bac Giang 45. Quang Tri

22. Uong Bi 46. Ha Tinh

23. Tra Vinh 47. Ha Giang

24. Tam Ky 48. Lao Cai

Type V City

1. Vinh An 6. Vien Thanh

2. Tam Diep 7. Go Cong

3. Phu Tho 8. Sam Son

4. Do Son 9. Song Cong

5. Ha Nam 10. Hung Yen

APPLICATION FORMS AND REGISTRATION TABLES FOR REQUESTING ISSUANCE OF CERTIFICATES AND LICENSES AND SAMPLES OF CERTIFICATES AND LICENSES

Example of calculating rental housing prices.

Example 1: Determining the rental price for a level II house, 2 floors in city Y.

a) Actual conditions of the rented house:

1. The rented apartment is located in a 2-story building with multiple apartments in the center of city Y, which is a level II city.

2. The total usable area subject to rent is 60 m², including 25 m² on the first floor.

3. Access roads and automobile roads.

b) Steps to follow:

1. Select standard price (Gc):

Take 1400 VND/m² - month (corresponding to a typical level II house in Table 1 of this Circular).

2. Determine the coefficients:

K1 = -0.05 (corresponding to the value of level II city in Table II of this Circular)

K2 = 0.00 (take the value specified in Table 3 corresponding to the location condition in the city center)

K3 = take the value specified in Table 4 for the first floor: +0.15; second floor: +0.05.

K4 = 0.10 (take the value specified in Table 5 corresponding to the location where the house has a road leading directly to the house).

3. Calculate the rental price (G):

a) Apply to the first floor area:

4

G1 = Gc (1+ , amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP Ki) = 1400 (1-0.05 + 0.05 + 0.10)

i=1 = 1400 x 1.20 = 1680 VND/m² usable month

b) Apply to the second floor area:

4

G2 = Gc (1+ , amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP Ki) = 1400 (1-0.05 + 0.05 + 0.10)

i=1 = 1400 x 1.10 = 1540 VND/m² usable month

2. Calculate the rent payable for the entire usable area of the first floor (S1) and the second floor (S2):

T = (G1 x S1) + (G2 x S2) = (1680 x 25) + (1540 x 35)

= 42000 + 53900 = 95900 VND/month.

Example 2: Determining the rental price for a house in Province X

A. Conditions of the rented house area:

1. The rented apartment is on the fourth floor of a third-grade building located in the suburban area of a fourth-grade city.

2. The total usable area subject to payment is 54 square meters.

3. The access road is a simple vehicle road.

B. Steps to follow:

1. Select the base price or standard:

Take Gc = 1350 VND/square meter-month (third-grade building in Table 1).

2. Select the coefficients:

K1 = -0.15 (take the value corresponding to a fourth-grade city in Table 2)

K2 = -0.20 (take the value specified in Table 3 for houses in the suburban area of a city)

K3 = -0.10 (take the value specified in Table 4 for rental areas on the sixth floor)

K4 = 0 (traffic condition is a simple vehicle road according to Table 5)

3. Calculate the rental price for the house:

4

G = Gc (1+ , amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP Ki) = 1350 (1-0.05 - 0.02 - 0.10 + 0)

i=1 = 1350 x (1 - 0.45) = 1350 x 0.55 = 742.5 VND/square meter SD-month

4. Calculate the rental payment for the entire usable area:

T = G x S = 742.5 x 54 = 40,095 VND/month

Example 3: Determining the rental price for a villa in Province E

A. Actual conditions of the rental:

1. The rented villa is a two-story villa of Class II located in the center of a third-grade city with a road for cars reaching the gate.

2. The total usable area subject to rental payment (S) is 200 square meters, including 100 square meters for the first floor and 100 square meters for the second floor.

B. Steps to follow:

1. Select the base price (Gc):

Gc = 3000 VND/square meter-month (take the value corresponding to a Class II villa in Table 1 of this Circular).

2. Select the coefficients:

K1 = -0.10 (take the value corresponding to a third-grade city in Table 2 of this Circular)

K2 = 0.00 (take the value specified in Table 3 corresponding to the condition of a villa in the center of a city)

K3 = (take the value specified in Table 4 applicable to the first floor at +0.15, and the second floor at +0.05)

K4 = 0.10 (take the value in Table 5 specified for houses with roads for cars reaching the gate)

3. Rental price for the villa:

- For the first-floor area: G1 = 3000 (1 + 0.00 + 0.15 + 0.10 - 0.10) = 3450 VND/square meter/month.

- For the second-floor area: G2 = 3000 (1 + 0.00 + 0.15 + 0.10 - 0.10) = 3150 VND/square meter/month.

4. Monthly rental payment for the villa:

T = (3450 x 100) + (3150 x 100) = 660,000 VND/month.