A harmonious solution is needed.

While this is a necessary step, in the long run, a solution is needed to ensure the interests of both businesses and those in need of housing.

A simmering anxiety

Following a series of recent fires and explosions that resulted in significant loss of life and property in mini-apartment buildings and boarding houses, Hanoi authorities have taken strong action, conducting a comprehensive inspection and review to address establishments that do not meet fire safety standards.

Mini apartment building in Khuong Dinh ward, Thanh Xuan district, Hanoi. Photo: Pham Hung

Accordingly, by the end of June 2024, the Hanoi City Police had inspected 36,972 out of 36,972 lodging establishments; penalized 3,134 cases with 4,310 violations, imposing fines totaling over 12.83 billion VND; temporarily suspended 672 cases, 75 cases are currently suspended, and ordered 16,479 establishments to cease operations; 100% of investors have signed commitments to comply. Regarding mini-apartment buildings, 193 establishments were inspected; 14 cases were temporarily suspended, 4 cases are currently suspended, and 22 establishments have been ordered to cease operations.

“This is an unprecedented large-scale inspection of lodging houses and mini-apartments in the capital city. Through this, we have found many loopholes in fire safety measures, leading to a lack of timely response in case of an incident. Currently, the housing business is booming in the capital, so in the coming time, the Hanoi City Police will continue to tighten inspection and review to promptly detect and strictly handle violations, ensuring maximum safety of life and property for the people,” said Lieutenant General Nguyen Hai Trung, Director of the Hanoi City Police.

Hanoi, along with Ho Chi Minh City, is one of the two largest cities in the country. Every year, in addition to receiving a large number of migrants who come to live and work there, the city also receives an additional 200,000-300,000 people – a mechanical increase in population within the city itself. Therefore, housing is one of the most pressing social issues, posing many challenges for the capital's government.

Meanwhile, with rapid urbanization, land available for housing development is shrinking, leading to continuously escalating housing prices. Therefore, renting is the top solution for low-income individuals (freelancers, students, factory workers, etc.).

"Cheap products often come with low quality, that's a fact. Most of the rental housing for low-income earners is poorly constructed, lacking amenities and services, and deficient in fire safety measures..."

"In addition, the lack of awareness among residents regarding safety in their daily lives creates insidious risks that threaten the lives and property of those living there. Meanwhile, the legal system has almost 'neglected' regulations on the management and operation of this product," observed urban management expert and architect Tran Huy Anh.

Tighten management

Nguyen Hai Linh, a second-year student at Hanoi University of Electrical Engineering, who rents a room in the Ho Tung Mau area (Cau Giay district), said that nearly a month ago, her landlord informed her that she had to move out because the establishment had been temporarily suspended from operation by city authorities due to not meeting fire safety requirements.

“For almost a month now, I’ve been searching for a room to rent in various areas near my school for convenience, but I still haven’t found one, so I had to move my belongings in with a classmate. Finding a room to rent is even more difficult right now because many rental businesses have been forced to temporarily cease operations due to not meeting fire safety requirements,” shared Nguyen Hai Linh.

Recently, the rental housing business has boomed in Hanoi, considered a lucrative type of real estate for investors. Those in the rental housing business don't need a huge amount of capital, and with the high demand for rentals from freelancers, students, factory workers, office workers, and even professionals, tenants can move in as soon as the property is built.

In particular, even if the investor has to use bank loans for business, they can recoup their debt within just 5-7 months of operation. According to calculations by landlords, it only takes 3-5 years to recover the initial investment, after which they can confidently reap profits. An investor managing about 10 rental rooms can earn between 30 and 70 million VND per month.

“In a large city like Hanoi, the demand for housing is enormous, but not all workers can afford to rent an apartment. They are forced to live in smaller, even less convenient, boarding houses. This benefits both sides, the investors and the tenants. However, in reality, due to lax management by authorities, thousands of boarding houses have been built and operated without ensuring safety, amenities, and fire prevention standards,” analyzed Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association.

According to experts, the comprehensive review and inspection of lodging establishments by Hanoi authorities regarding fire safety measures, both recently and in the near future, is necessary and essential, better late than never, given the recent fire incidents. However, many also believe that the authorities need to find a balanced solution that is legally sound but still ensures the interests of all parties involved.

“Currently, mini-apartment buildings and boarding houses have developed strongly in large numbers. After careful research and extensive consultation with the public, experts, and managers, the Ministry of Construction has included specific regulations on the business of these types of properties in the 2023 Housing Law. The Ministry of Construction is currently continuing to finalize the implementing regulations and has also sent documents to localities regarding the organization of reviews, inspections, and classification of business establishments, tightening control over new construction activities; along with solutions to address and rectify cases that do not meet fire safety requirements so that they can continue to operate safely,” said Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction).

 

It is essential for authorities to intensify inspections and enforcement against individual houses used for rental purposes or combined business and rental activities. This includes disseminating information and providing guidance on fire safety conditions, and decisively closing down any establishments that fail to meet these requirements. Furthermore, the relevant state management agency (the Ministry of Construction) should promptly issue decrees and circulars specifying detailed standards and regulations, guiding implementation, and classifying rental housing businesses as conditional business activities. This will make management easier for local authorities. - Lawyer Trinh Huu Duc (Vietnam Lawyers Association)

Source: https://kinhtedothi.vn/hang-nghin-nha-tro-chung-cu-mini-tam-dung-hoat-dong-can-giai-phap-hai-hoa.html