Surprising Proposal from Ho Chi Minh City Tourism Department: Renting Apartments as Hotel Alternatives

Regarding the Ho Chi Minh City People’s Committee’s ongoing review and consultation with relevant agencies, organizations, and individuals to supplement regulations on using condominium apartments for short-term rentals, Ms. Bùi Thị Ngọc Hiếu, Deputy Director of the Ho Chi Minh City Department of Tourism, stated that the department has reassessed scientific research tasks related to the sharing economy in the accommodation sector and proposed a temporary halt to this model.

From the perspective of the state tourism management agency, the Ho Chi Minh City Department of Tourism asserts that implementing shared accommodation models (like Airbnb) in residential buildings without a comprehensive regulatory framework poses significant risks.

Specifically, the constant flow of guests makes it challenging for building management to verify identities, potentially compromising security. Failure to report temporary residence, especially for foreign guests, complicates authorities’ efforts to maintain security and track accommodation statistics. When apartments are used as hotels, their residential nature is compromised, violating the 2023 Housing Law.

Beyond security concerns, the Department of Tourism highlights risks associated with apartment owners failing to register their businesses or declare taxes properly. Since condominiums are designed for residential use, not commercial accommodation, ensuring service quality and meeting tourism standards becomes difficult.

This situation also fosters unfair competition with hotels, which must comply with strict regulations on fire safety, accommodation standards, and price transparency. In contrast, short-term rental hosts can lower prices arbitrarily, pressuring legitimate accommodation businesses.

The Department of Tourism further warns of legal risks for regulatory bodies. Without a clear legal framework, enforcement actions lack a solid basis, hindering inspection and violation handling. Disputes between residents, apartment owners, building management, and technology platforms are likely but difficult to resolve without specific legal guidance.

Previously, in a report to the Ho Chi Minh City People’s Committee, the Department of Construction noted receiving strong opposition to this model. The Department of Justice opined that the current pilot draft contains provisions with legal normative content, such as conditions for apartment use and responsibilities of involved parties, which are not fully aligned with existing laws. Therefore, it recommended a review to avoid issuing legally contradictory documents and suggested incorporating necessary regulations into Decision 26/2025 on condominium management and use, previously issued by the city.

At a recent dialogue conference on condominium management organized by the Department of Construction and the Ho Chi Minh City Trade and Investment Promotion Center, short-term rentals faced further opposition. Delegates expressed concerns that without adequate oversight mechanisms, pilot implementation could disrupt residents’ lives and compromise building security.