How to vet a Vietnamese developer and avoid stalled projects

Vietnam is a growing but less transparent market than Dubai. There is a developer registry, but not as public. Stalled projects are common — up to 15% of 2018–2021 Ho Chi Minh City and Da Nang projects are behind schedule. Here's how to filter risk before signing.

Level 1: legal documents

Before discussing price, request these 5 documents:

1. **Business Registration Certificate** — for the developer entity itself, not a subsidiary. Verifiable at **dangkykinhdoanh.gov.vn** (public registry).

2. **Land Use Right Certificate (LURC / "red book")** for the project's specific plot. Without it, the developer has no construction rights. A "preliminary permit" is not enough.

3. **Investment Registration Certificate** — from the provincial planning department. States use, footprint, storeys, timeline.

4. **Construction Permit** — without this, any "at foundation stage" sales are illegal.

5. **Bank Guarantee** (mandatory under Housing Law 2014) — a bank guarantees refund if the project doesn't deliver. Verify the guarantee code on the bank's website (Vietcombank, BIDV, VietinBank, Techcombank — top issuers).

Missing any document = walk away.

Level 2: reputation and track record

• **How many projects delivered?** Count handed-over projects in last 5 years. Less than two = risk.
• **Average delay** on recent projects. 6-month delay is Vietnam-normal. 18+ months = red flag.
• **Open litigation** — search **congbo.vn** (court decisions portal) by entity name.
• **Buyer reviews** — Facebook groups, forums (batdongsan.com.vn, vietnamexpats). Vietnamese-language sources are more revealing.

Top for foreigners in 2026: **Vingroup / Vinhomes**, **Sun Group**, **Novaland** (post-restructuring 2023), **Masterise Homes**, **CapitaLand** (Singapore), **Frasers Property**. Mid-stable: **Dat Xanh**, **Nam Long**, **Khang Dien**. Avoid regional one-project developers.

Level 3: Long-Term Ownership specifics

Foreigners get 50-year ownership, renewable. Cap: no more than **30% of units in a condominium** may be foreign-owned. The project must have a **foreign quota** — units earmarked for non-residents. Check that the SPA mentions the foreign quota and that other foreigners have already bought in this building.

Level 4: escrow and payment schedule

Housing Law 2014 limits the developer to collecting no more than: - **30%** before construction start. - **70%** before physical handover. - **95%** before pink book issuance.

A schedule violating these caps is illegal — refuse.

Demand payments to a **dedicated project account** at a state bank (should be in the SPA), not to the company's general account.

Level 5: physical audit

Visit the site or send a representative. What to check:

• Cranes running? Any activity?
• Project signboard — construction permit number matching what's in the SPA?
• Ask neighbouring developers or site security — "when will this be handed over?". On-site knows better than marketing.
• Cross-check coordinates with Google Earth over the past year — visible progress?

Red flags

• Payment to **manager's personal account** or "partner company account".
• SPA only in English (law requires bilingual VN+EN).
• Promised "guaranteed rental yield" only in marketing, not in SPA.
• No bank guarantee or issued by an unrated regional bank.
• Developer refuses to attend notaris signing.

What if the project stalls

Solo foreign litigation is nearly impossible. Playbook:

1. Gather all foreign buyers (usually there's a project Facebook group). 2. Hire one collective Vietnamese lawyer. 3. Simultaneously claim the bank guarantee at the issuing bank. 4. Parallel court filing in the provincial people's court. 5. Litigation runs 12–24 months, 60–90% recovery is plausible if the guarantee is valid.

Vietnam is a workable market but errors are costlier than in the UAE. Developer vetting before the deal saves stress and money later.