VIETNAM Law and Practice Contributed by: Tran Thai Binh and Duong Thi Minh Han, LNT & Partners
6.10 Payment of Utilities and Telecommunications
Subject to negotiations between the parties, a landlord may impose further restrictions on ten - ants regarding the use of a property, if these restrictions are not contrary to the law, par - ticularly in the case of land or factory leasing in industrial parks, where tenants must observe the regulations on environmental protection. 6.14 Tenant’s Ability to Alter and Improve Real Estate The tenant is permitted to alter or improve the real estate, but always subject to the consent or approval of the landlord, even if such main - tenance and improvement increases the value of the property. If the leased property is depre - ciating, not due to any fault of the tenant, and the landlord fails to act on the notice given by the latter, the tenant may carry out alterations or improvements to the leased real estate in the absence of consent by the landlord, but is usu - ally required to submit the alteration plan and design to the landlord for approval. In addition, the tenant must have a security bond or amount paid to the landlord, such as a deposit, for com - pensation of damages caused to the landlord or the building. 6.15 Specific Regulations Apart from the general rules above, specific regulations may apply, subject to the category of real estate into which the leased property falls. Residential houses subject to a lease must sat - isfy various requirements stipulated by the law on housing, including: • not being subject to any encumbrances – ie, any dispute, claim or petition on the owner - ship; • not being distrained from any enforcement of effective judgment or administrative order of the competent authority; or
Utilities and telecommunications expenses incurred in privately used areas will be measured by separately installed gauges and independent - ly borne by the specific user. Expenses incurred in public areas will be borne by the property owner or shared or allocated to the tenants as stipulated in the contract. 6.11 Payment of Property Taxes Technically, landlords are responsible for paying taxes charged on the income earned from real It is common practice for the tenant to bear the insurance premium for policies that cover all risks on the real estate and public liabilities. However, it is also common practice for the property owner to procure insurance for the building structure. The insurance will be in the name of the tenant and the landlord, and at the coverage rate requested by the landlord. estate leasing activities. 6.12 Insurance Issues Business interruption insurance is more unusual in this market, given that tenants have suffered significant losses following the COVID-19 pan - demic, and landlords have had to forego basic rent due to closure of a tenant’s business. 6.13 Restrictions on the Use of Real Estate Per general regulations, tenants are obliged to lease and use the property according to its intended purpose, function, design and other agreements under the lease contract. Tenants are required by law to preserve, maintain and repair minor effects at the leased property and will bear the cost if there is any loss or damage.
1366 CHAMBERS.COM
Powered by FlippingBook