Saturday, 27/02/2010 15:19

Is the decision to stop business in apartments illegal?

The decision by the Ministry of Construction (MOC) not to allow use of apartments as business offices has raised opposition from lawyers and businessmen who believe the decision is not in line with the Enterprise Law.

The decision by the ministry has once again become a hot topic of discussion after the MOC released a document urging local authorities to report on the result of the examination over the use of apartments as business offices.

Lawyer Nguyen Van Quynh from the Hanoi Bar Association said that MOC has had to remove the decision because it violates Enterprise Law. Quynh said that Enterprise Law stipulates that businesses have the right to choose places to do business which are suitable to them.

He went on to say that MOC released the decision but it did not care about the reality. A lot of businesses have small scale operations which cannot afford fees for premises. While the current laws encourage all economic sectors to do business, the MOC’s decision seems to go the opposite way.

Analysts have also pointed out a lot of economic problems occur if businesses cannot use apartments for offices. As businesses have to lease offices, the supply will become shorter, thus leading to the higher leasing fees, putting a heavier burden on businesses which have just escaped the economic downturn.

Nguyen Van Thinh, Director of Truong Thinh Company in District 9 in HCM City, called it a “decision that creates difficulties for the poor”. Thinh said that almost all small businesses, are setting up headquarters in apartments, and that MOC’s decision will bring big difficulties to both businesses which need premises and the owners of buildings.

Thinh has called on MOC to classify apartments to decide which apartments could be used as business offices and which cannot. He said that MOC should allow the use of apartments if the use does not affect the building.  He also said the ministry should prohibit the set up workshops or production bases in apartments which may cause noise and pollute the environment.

A lot of households in apartment blocs told Saigon tiep thi that if MOC insists on its decision, they will meet major difficulties in attempting to earn a living. ]  However apartments are being used as grocery shops or cafés.

Nguyen Thi Le Ha, the owner of a grocery shop in Dong Saigon apartment bloc in district 9 said that the shop brings income for the whole family and that she does not know what to do if the shop cannot continue.

VietNamNet, SGTT

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