Regarding the legal basis for the business model of sleep boxes, according to Decision 27/2018/QĐ-TTg which promulgates the system of Vietnam's economic sectors, it is stipulated that “The service of providing accommodation facilities is dormitories, which are houses with rooms for rent that have the minimum necessary equipment and amenities for guests” for short-term stays such as daily or weekly, belonging to the accommodation services sector. If renting out houses, apartments, or rooms with or without furnishings for long-term stays, usually monthly or annually, it is considered real estate business.

According to Clause 1, Article 3 of Decree 39/2007/NĐ-CP and Clause 2, Article 79 of Decree 01/2021/NĐ-CP, renting dormitories is an activity of leasing real estate that does not fall under the exempted entities from business registration, and thus must register as a business model. As analyzed, current legal regulations only provide for the rental of houses, apartments, and rooms, and do not regulate the rental of sleep boxes.

According to the 2014 Construction Law, any repairs or renovations within a structure that do not change its intended use or affect the safety of the load-bearing structure must comply with the construction planning approved by the competent state authority, as well as safety requirements for fire prevention and environmental protection. In other words, renovations inside an apartment that do not require a building permit must still meet fire safety requirements.

In practice, the sleep box business model is often spontaneously constructed from individual housing. These sleep boxes are not considered real estate permitted for business according to regulations.

This article is for reference only and is not intended to be used as advice. If you need advice, please contact us via email: info@barrso.com