Ho Chi Minh City Department of Planning and Investment has issued 2,100 warnings to businesses to move out of residential apartment buildings within 15 days.
Businesses must register new office addresses upon leaving. The Department of Planning and Investment will work with the Department of Construction and local authorities to deal with those who fail to relocate in time.
Apartment blocks at Phu My Hung Urban Area
Bui Thi Thia, manager of the apartment block 42 on Nguyen Hue Street said most people had moved out and put their apartments up for rent for businesses. "We don't have the authority to ban people from renting out their apartments," she said.
A resident said the monthly rental fee for a 20-square-metre apartment was VND8m (USD353). There are many cafe and shops so it's noisy when people go in and out at night. Moreover, this building is old so he's worried when the apartment plan is changed spontaneously.
There are also some old information that haven't been updated. Nguyen Thi Hanh, a resident in Tan Phu District said she was entirely unaware that her apartment was once rented to Tri Suong Company nearly a decade ago.
According to local authorities, HCM City has 975 apartment buildings, mostly in District 1. Many businesses reacted badly to the decision because they were granted licences to operate in the buildings since 2005-2006.
The vague definition of a business office is also causing trouble. According to several companies, they do not operate in the apartment but only use it as a contact address and store documents.
The Department of Planning and Investment said they were only implementing Decree 99 issued last year that asked commercial offices to be moved out of the apartments by June 30.
Hanoi authorities have also struggled to apply the ban. One of the reasons why renters are slow to move out or ignore the regulation completely is because there are no ways of enforcing the regulation.