Hanoi sets rules for rental auctions of public business space in resettlement and social housing

Regulations consist of 3 chapters and 20 articles, detailing the auction process for renting public assets that are service spaces for businesses in resettlement apartment buildings; service space in social housing located in state-owned assets (including service space in workers’ housing areas, student housing and dormitories, and social housing funded with state budget funds, with the City People’s Committee as owner under applicable law) and service space handed over by developers of commercial housing projects to the City People’s Committee for use as service businesses and other non-residential purposes (the City People’s Committee acts as owner). The applicable subjects include state agencies that manage public assets in housing funds as prescribed; organizations offering rental asset auction services and other organizations and individuals involved in the auctions of service spaces. The principle of rental auctions is to ensure independence, transparency, objectivity, honesty, and fairness, protecting the State’s rights and the legal interests of participants in accordance with the Asset Auction Law 2016 and the Asset Auction Law amended in 2024. Auctions must be conducted in accordance with the procedures prescribed by law on public assets and asset auctions. For service spaces in resettlement housing where the City People’s Committee is the owner representative, the managing unit designated by the City to oversee the property must reserve at least one-third of the service space for households or individuals resettled to lease (if they wish) through an auction. However, if after two rental auctions there are no eligible households or individuals participating, the auction may be opened to expand participation to cover the remaining two-thirds of the service space. If after two rounds of expanded auctions there is still no success, the managing unit shall review the causes and propose solutions, reporting to the supervising authority. If it is determined that lack of applicants is due to the starting price being too high and not aligned with market prices, the rental price for the service space shall be re-determined by the managing unit after obtaining guidance from the Department of Finance, the Department of Agriculture and Environment, the Department of Planning and Architecture, Hanoi City Tax, and other relevant agencies (as needed), with the managing unit forwarding the outcome to the Department of Construction to report to the City People’s Committee. Within 30 days from receiving a complete dossier, the City People’s Committee will review and decide on adjusting the rent in the Rental Price Schedule for service spaces. After the city-level approval of the rent adjustment, rental auctions for service spaces will be conducted in accordance with the regulations.