The South Korean investor of the tallest building in Vietnam has asked the Hanoi city government to replace it as the tower's manager, citing the low service fee set by the city.
Keangnam Vina, which invested in Keangnam Landmark Tower, the tallest in Southeast Asia after Petronas Towers in Malaysia, said it is incapable of running the building for the monthly fee of VND4,000 (US20 cents) per square meter, the news website VnExpress reported Wednesday.
The fee, including the value added tax, was set by Hanoi municipal administration in September last year as the service fee cap for apartment buildings in the area.
Ha Jong Suk, Keangnam Vina chairman, said it has asked the Hanoi government to look for a different manager for the tower on Pham Hung Street.
He said the current service fee is not enough to pay staff and maintain facilities at the tower, which includes one 48-floor building and a 70-floor skyscraper.
"As a business, we should make at least a little profit, but in contrast, we have been insolvent for months," Ha told VnExpress.
The tower received its first customers in March last year but the investor waived service fees until August, when 500 out of 900 apartments had been filled, he said.
Between August and October last year, the tower was charged a monthly fee of VND18,000 (US87 cents) per square meter.
After the city government's order last September, Ha said, the monthly payment is only enough to run the 20 elevators at the tower.
The order came after residents of five upscale apartment buildings in Hanoi united for the first time to seek the city administration's help in preventing service fees from spiking unreasonably.
The residents at 93 Lo Duc, The Manor, Golden Westlake, Keangnam and Sky City have complained that the prices for services were decided arbitrarily.
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