The ABCs of Vietnam’s construction ministry proposal that got people talking
A draft circular proposed by Vietnam’s Ministry of Construction is drawing mixed reaction from industry players and experts in the country, according to Vietnam News, with some developers welcoming the policy, and others asking for further clarifications.
The proposal involves apartment buildings that were put into use by July 2015 to be grouped into Class A, B or C, based on four criteria as stipulated by the housing and real estate market management department.
According to the draft, the four criteria area as follows: 1) urban planning and architecture; 2) technical and social infrastructure; 3) quality of apartment; and 4) management service quality.
All compliant buildings will be reviewed every five years and receive the classification from the provincial and municipal departments of construction.
Class A apartments are those that score between 90 and 100 points, Class B from 80 to 90 points, and Class C below 80 points.
Certain developers agree to the proposal, citing the need to standardise building practices in Vietnam.
“It is important to have measures to prevent shady behaviour during the classification of apartment buildings,” commented Nguyen Xuan Quang, chairman of the Nam Long Real Estate Company.
Meanwhile, Le Hoang Chau, president of the HCM City Real Estate Association, noted that proper classification for high-end buildings must also be implemented to justify their selling prices.
Nguyen Trong Ninh, director of the Housing and Real Estate Market Management Department, said that the proposal still needed to be improved. He further proposed to make it optional for developers who would like their projects to be classified.
The draft is expected to be issued by the construction ministry in Q2 2016.