Ho Chi Minh City department puts forward pilot program for short-term apartment rentals to manage booming Airbnb sector

The Ho Chi Minh City Department of Construction has proposed a 12-month pilot program allowing short-term rentals in apartment buildings starting September 1 this year, with the aim of regulating the rapidly growing Airbnb-style market and encouraging the shared economy under proper legal frameworks.

Airbnb is an online platform that allows property owners, or hosts, to rent accommodations to travelers.

Ho Chi Minh City currently hosts around 13,000 Airbnb listings, with over 60 percent of them located in apartment buildings.

Airbnb hosts in the city generate an estimated VND2 trillion (US$77 million) in revenue annually.

Despite this popularity, legal clarity remains elusive.

The municipal Department of Construction said that Vietnam’s housing law neither bans nor explicitly allows short-term tourist stays in residential apartments, leading to challenges in public security, management, and tax enforcement.

Under the pilot plan, apartment owners must gain approval from their building’s residents’ committee, contribute additional management fees, and strictly follow regulations.

Violators could face administrative penalties or be suspended from the pilot.

Industry perspectives, recommendations

Some industry insiders support the proposal.

Nguyen Thuong Hoai, representing Ho Chi Minh City’s short-term rental community, said clearer rules would promote professionalism and protect residents’ interests.

However, she suggested previously active hosts be allowed to continue without requiring new condo-wide votes.

Tourism experts and hotel managers agreed the sector needs stricter standards, licensing, tax compliance, and security protocols.

Suggestions included assigning each Airbnb unit a registration code, connecting platforms to local authorities, and requiring foreign platforms like Airbnb to open offices in Vietnam to handle disputes and data sharing.

Speaking to Tuoi Tre (Youth) newspaper, Nguyen Thi Thanh Ha, marketing director of the Vias Vung Tau Hotel in Ho Chi Minh City, emphasized the need for standardized regulations and strict state management for Airbnb activities.

A lecturer from the tourism department at Van Hien University in Ho Chi Minh City argued that investment in the accommodation service market is often driven by trends, leading to the emergence of unprofessional and inexperienced hosts, which affects quality, efficiency, and broader impact compared to other countries.

To ensure effective accommodation business and good customer experiences, the lecturer stressed the need to promptly amend and supplement legal documents to manage shared economy and smart tourism models.

The lecturer also suggested that tourism management agencies, like the Ministry of Culture, Sports, and Tourism, should develop a project to enhance the quality of Vietnam’s tourism accommodation services.

This project should include clear regulations on quality control and legal compliance for Airbnb-style accommodations.

« Since this is a shared accommodation model, it needs to ensure a balance of interests for all parties, including residents, through regulations on security and order. Violating these rules should result in penalties for Airbnb hosts, » the lecturer added.

Lawyer Truong Thi Hoa told Tuoi Tre that apartment owners must clearly understand Airbnb’s terms and conditions, along with legal compliance.

She underlined the need for clear criteria to manage and ensure a balance of interests, life, and space for residents, including tax management.

Individuals providing short-term apartment rental services must register their business and declare and pay taxes transparently.

The lawyer further recommended that cross-border platform providers like Airbnb should establish representative offices in Vietnam to collaborate with Vietnamese regulatory bodies in addressing arising issues and safeguarding the rights of both renters and service providers.

Duong Duc Minh, deputy head of the Institute for Tourism and Economic Development Research in Ho Chi Minh City, also advocated for a suitable legal framework and management tools to effectively regulate this model.

A legal framework for shared accommodation should include minimum standards for safety, security, legal responsibility, and tax obligations, distinct from traditional hotels.

Accommodation service providers must register their business or declare with local authorities.

Authorities need to assign each Airbnb unit a registration code, and connect data between platforms like Airbnb and state agencies, Minh suggested.

Le Truong Hien Hoa, deputy director of the Ho Chi Minh City Department of Tourism, urged individuals and entities involved in the shared economy model to follow the guidance of the Ho Chi Minh City Department of Construction to comply with tax and security regulations.

« It is essential to meet the regulations set by authorities to ensure customer rights while also protecting apartment residents,” Hoa said.

International examples of Airbnb regulation

France and Singapore were cited as case studies where unregulated Airbnb growth strained urban housing markets.

Paris now caps rentals at 90 days per year, imposes heavy fines, and mandates permit numbers in listings.

Singapore prohibits rentals under three months in private housing, imposing fines up to S$200,000 (US$157,000) and jail terms for repeat violations.

Japan, Australia, and the U.S. allow short-term rentals but with varying limits and strict local rules.

Thailand and Germany maintain restrictions, requiring hotel licenses or allowing limited exemptions.

Tuoi Tre News – July 27, 2025