LEGAL NEWSLETTER OCTOBER 2024 | DECREE NO. 108/2024/ND-CP

and utilization. 

On August 23, 2024, the Government issued Decree 108/2024/ND-CP regulating the management, use and exploitation of houses and land that are public assets that are not used for residential purposes and assigned to organizations with the function of managing local housing business for management and exploitation ("Decree 108"),  effective from October 15, 2024. The following is a summary of the main points of Decree 108: 

1. Permitted purposes of management and utilization: 

• House lease (associated with the land use rights certificate);  

• Temporary management pending final disposal of properties in accordance with the law. 

2. Organizations with the function of managing local house business shall manage and exploit: 

• Local public sector entities in the fields of economics and other local public services assigned to manage and utilize properties or develop, manage and utilize land funds. 

• Enterprises with 100% charter capital held by the province-level People’s Committee that are assigned to manage and utilize properties (hereinafter referred to as housing management companies).  

3. Principles of management, use and exploitation of houses and land assigned to management and business organizations that manage and exploit 

• The management and utilization of properties must carried out efficiently, transparently, and in accordance with the law, while meeting the demand for properties to serve local socio-economic development. 

• The assignment of properties to housing management organizations shall be recorded as an increase in assets, and the value shall not be included in the State's capital contribution to the enterprise. 

• The management and utilization of properties must be monitored, inspected, examined and audited in accordance with the law; any violations of the law on the management and utilization of properties must be promptly detected and strictly handled in accordance with the law. 

4. House lease methods  

According to regulations, the lease of houses (associated with the land use rights certificate) of house management and business organizations shall be carried out by the auction method, except for the cases of implementation by the method of price listing specified below: 

• For those who are prioritized to rent houses; Priority subjects include: Associations with specific characteristics as prescribed by law on associations, leasing for office space in cases where they do not have an office; socialized institutions in the fields of education, vocational training, healthcare, culture, sports, and environment that are included in the detailed list of types and meet the scale and standards as decided by the Government. 

• Lease a house with a determined rent amount as prescribed in Clause 1, Article 16 of Decree 108 at the time of determination of the price for lease of less than 50 million VND/year. 

• Lease houses and land temporarily while awaiting legal processing. 

5. Payment and financial obligations: 

• Organizations/individuals renting houses must fully pay the rent on time as per the contract. In case of late or insufficient payment, a late payment penalty will apply. 

• Agencies, organizations, and units temporarily using houses and land must pay usage fees to the housing management and operation organizations. 

6. Financial obligations to the State: 

Housing management and operation organizations are responsible for fully paying the collected revenues from the exploitation of houses and land (including house rent, late payment penalties, temporary usage fees) as well as any revenue generated from installing telecommunication infrastructure on houses and land to the State budget before the 30th of each month.