    INTER-MINISTRY      THE SOCIALIST REPUBLIC Of VIETNAM
 CONSTRUCTION-fiNANCE     Independence-freedom-Happiness
STATE PRICE COMMITTEE
                                 Hanoi, 18 August, 1994

CIRCULAR A GUIDANCE ON DETERMINATION Of REMAINING VALUE Of RESIDENCE IN SELLING Of STATE-OWNED RESIDENCE TO THE TENANTS

In accordance with Article 7 Decree 61/CP dated 5, July of 1994 of Government, delineating residence trading, the inter-ministry: Construction, finance and State Price Committee conduct methods to define the Remaining value of residence as follows.

I. General principles:

The definition of remaining value of residence must be on the following principles:

1. Based on scientific and technical principles.

2. Ensure the preciseness and connection.

3. Conform with reality and easy to apply.

II. Methods to measure the remaining value of residence.

The remained value of residence measured depends on the percentage of remaining value of residence, new price of residence and the area for use at selling time.

formula is as follows:

Remaining     Percentage of        Price of        Used area
 value of  = Remaining value X   Residence at   X at selling
residence      of residence    new construction       time
  (VND)             (%)            (VND/m2)           (m2)

1. The percentage of remaining value of residence is defined as follows:

a. Method of economic-technical analysis:

The percentage of remaining value of residence defined depends on the percentage of remaining quality of major structure (foundation, frame, pillar, wall, floor, roof and roof-supporting structure) that constitutes this residence and the ratio of the stru cture value to total value of the residence.

formula is as follows:

                      Percentage          Ratio of value 
              n      of remaining            of major
              ă     value of major    X  structure number 
             i =1   structure into       total value of the
Percentage            (number i)           of residence(%)
remaining value = htmlhtmlhtmlhtmlhtmlhtml-----
of residence      Ratio of total remaining value of major structure            to total value of the residence
(%)

Where i-number of major structure n-amount of major structure

- Percentage of remaining value of major structure stated by the council of selling house depends on initial design, transforming design and upgrading design implemented by housing control department and the actual quality of these structure according to conducting standards in appendix 1 of this circular.

- Ratio of major structure value to total value of the residence implemented according to the conducting table in appendix 2 of this circular.

In case that house or apartment was specially designed, the residence selling committee bases on initial design, transforming and upgrading design implemented by housing control department and the actual quality of this house or apartment to state the per centage of remaining value and percentage of remaining value of other structure in order conform with the reality.

b. Method of statistic-practical analysis

Percentage of remaining value of residence stated in accordance with actual quality, use period and the period this house has been used.

2. Price of residence at news construction decided by chairman of people committee of provinces, centrally-managed cities in accordance with decree 61/CP 5 of July, 1994 by Government, delineating the trading in houses. In case that the apartment or house was specially designed, Council of selling house bases on initial design, transforming and upgrading design implemented by housing control department and the actual quality of this house to price at new construction in order to conform with the reality.

Placing houses in rank implemented according to circular 05/BXD-DT dated 9th of february, 1993 by the Ministry of construction in accordance with initial design, transforming and upgrading design implemented by the Housing control Department.

3. Use area of the residence stated in accordance with the Circular 05/BXD-DT dated 9th of february, 1993 by Ministry of construction.

III. Operation

1. The council of selling house establishes professional divisions of experts in housing area in order to help the council in determination of remaining value of residence the results achieved as sample in appendix 3.

2. The people committees of provinces, centrally-managed cities govern councils of selling house implement the definition of remaining value of residence to ensure the fastness, connection, preciseness and regularly check on the implementation.

During operation, proposals and difficulty problems should be submit to the Inter-Ministry to solve in time.

  fOR HEAD Of         fOR MINISTER Of     fOR MINISTER Of
  STATE PRICE             fiNANCE          CONSTRUCTION
   COMMITTEE          Deputy Minister     Deputy Minister
  LE VAN TAN          NGUYEN SINH HUNG     PHAM SY LIEM
   (Signed)              (signed)            (signed)