Transforming Commercial Apartments into Residential Complexes

There are 7 shophouses (commercial apartments) in Diamond Riverside condominium that have been renovated by Nhật Huy Khang Joint Stock Company (specialized in exporting labor to Japan) without permission, blocking the area from being used as a dormitory.

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According to residents of Diamond Riverside apartment complex (Vo Van Kiet Street, Ward 16, District 8, Ho Chi Minh City), the developer handed over the apartments in 2020. Over the years, the apartment complex has been operating normally. However, before the Lunar New Year 2024, the shophouses BS03, BS05, BS07, BS09, BS10, BS12, BS15 in Block B suddenly underwent renovation by Nhật Huy Khang Joint Stock Company, converting them into lodging for trainees, with 66 bunk beds per unit, for a total of 478 people.

Several issues arise

Immediately afterwards, the apartment management board sent a letter to the authorities informing them of Nhật Huy Khang Company’s use of commercial apartments for internal residence. On February 16, Nhật Huy Khang Company allowed people to move into the commercial apartments, which sparked strong reactions from residents.

In an interview with a reporter from Người Lao Động Newspaper, Mrs. Nguyễn Thị Thùy Dung (a member of the Diamond Riverside apartment complex management board) said that the biggest concern of residents is Nhật Huy Khang Company’s lack of respect. Previously, residents had sent a letter to the company to discuss legal issues, but they only received silence in return. “They unilaterally allowed trainees to stay. The issue is, what legal basis does Nhật Huy Khang Company have to organize lodging in commercial apartments? Have they ensured fire prevention and fighting requirements? Who will be responsible in case of fire? Meanwhile, the increasing population will lead to increased energy and waste management costs. Not to mention the sudden appearance of a large number of trainees affecting security and order here,” Mrs. Dung said.

According to some residents, it has only been a few days, but there have already been instances of indiscriminate garbage dumping and unauthorized use of facilities in the park… Residents have suggested that Nhật Huy Khang Company relocate the trainees to another location until they can provide the necessary legal documents and receive approval from the authorities. At the same time, they propose that if the company fails to comply within 3 days, the water and other services to the 7 shophouse units will be cut off. During this time, if any incidents occur, the company will bear full responsibility.

The commercial apartments have been converted into lodging for trainees

Authorities are reviewing and inspecting

On the evening of February 19, residents of Diamond Riverside apartment complex had a dialogue with the leaders of Ward 16 People’s Committee, Ward 16 Police (District 8), the Firefighting and Rescue Team – District 8 Police, and Nhật Huy Khang Company.

According to Mrs. Phạm Thị Thanh Huyền (a lawyer representing Nhật Huy Khang Company), the company has provided documents and licenses to the authorities but has not received any response. The company is waiting for a reply from the competent authorities regarding the lodging permit. If the authorities request the relocation of the occupants, the company will comply.

Also according to Mrs. Thanh Huyền, Nhật Huy Khang Company is allowed to operate lodging businesses and send trainees to work abroad. The company is conducting business activities that have been licensed by the relevant authorities.

With the 7 shophouses, the company has subleased them from the owners to operate them in accordance with the regulations; the trainees sent abroad have also registered their temporary residence. Regarding fire prevention and fighting, the company has sent a request to the Fire Department for guidance on legal compliance. Currently, the company does not allow trainees to cook in the commercial apartments…

Mr. Trần Anh Nghĩa, Deputy Chairman of Ward 16 People’s Committee, said that on January 26, the committee received a letter from the Diamond Riverside apartment complex management board. On February 7, the committee had a meeting with Nhật Huy Khang Company.

The committee requested the company to provide the legal documents regarding the renovation of the shophouse apartments and whether it affects fire prevention and fighting. However, due to the proximity to the Lunar New Year, the local authorities requested that the company provide the documents by February 20. Based on that, the committee will review, inspect, and inform the residents. According to Mr. Trần Anh Nghĩa, after the dialogue, an inspection and handling will be carried out. The management board is requested to summarize the residents’ opinions and submit them to the Ward People’s Committee.

According to Lieutenant Colonel Phùng Tấn Hoàng Tam, Deputy Head of the Firefighting and Rescue Team – District 8 Police, the district’s Fire Department has the function of inspecting and handling violations, but does not have the authority to approve fire prevention and fighting. Regarding the changes in the electrical equipment of the shophouses, which do not conform to the original design approval, Nhật Huy Khang Company is requested to cease such activities.

The leaders of Ward 16 Police believe that Nhật Huy Khang Company’s permit includes registration for other lodging facilities, but not for security and order. To ensure security and order, an inspection team must be formed, and if any violations are found, appropriate measures will be taken.

Improper use

According to lawyer Trần Thị Thanh Thảo, Director of Thảo Trần Law Firm, shophouses are not allowed to register for temporary residence or temporary absence because their primary purpose is not for living but for business. This means that Nhật Huy Khang Company has used the apartments for the wrong purpose.

In addition, current legislation does not have specific provisions regarding shophouses. However, in this case, the penalty for misuse of a permit can be based on Article 6 of Decree 98/2020/ND-CP (amended by Decree 17/2022/ND-CP), with fines ranging from 5 to 10 million dong for conducting business outside the scope, target, scale, duration, area, or location specified in the business license.