Nam Long (NLG) Ordered to Fix Violations Across Five Projects

Overview

The Government Inspectorate (Thanh tra Chính phủ) has concluded an inspection of five real estate projects invested or co-invested by Công ty CP Đầu tư Nam Long (HOSE: NLG), identifying violations that include selling property before public disclosure, operating projects before infrastructure completion, and selling apartments without bank guarantees. The inspectorate ordered Nam Long to cease the violations and remediate the consequences, according to the published inspection conclusion.

Key Facts

• The inspection covered 5 projects with a combined 20,064 homes, equivalent to more than 3.8 million sqm of usable area, per Nam Long’s own report.
• Between 2020 and 2025, the entities sold 11,967 homes, leased 354 social housing units, transferred 19 villa land plots and 1,755 land plots.
• At the Khu tái định cư and Khu cao tầng đa chức năng project and the Akari Hoàng Nam project, Nam Long signed sales contracts before the required public disclosure of project information.
• At the same resettlement and mixed-use high-rise project, Nam Long put real estate into business before completing infrastructure.
• At Akari Hoàng Nam, Nam Long signed contracts to sell Block D apartments without a bank guarantee and handed over homes before the medical station was built.
• At Đồng Nai Waterfront, developed by TNHH Thành phố Waterfront Đồng Nai, the 1/500 detailed plan was locally adjusted in 2025, adding more than 10,000 sqm of residential land.
• At Vàm Cỏ Đông Southgate, developed by Công ty CP Southgate, the D8 bridge was built outside the approved plan; the company reported it had demolished the structure with site-handling records and photos.

What Happened

The Government Inspectorate examined compliance with construction investment, housing and real estate business law at projects where Nam Long acted as investor or co-investor. Its conclusion, announced in a formal notice, states that contracts were signed before information disclosure at the resettlement and mixed-use high-rise project, Akari Hoàng Nam and Đồng Nai Waterfront. At the resettlement and high-rise project, the company also commenced business before infrastructure was finished, while at Akari Hoàng Nam it sold Block D apartments without a bank guarantee and delivered units before the medical station was constructed.

The conclusion also flags procedural issues at two other projects. At Khu nhà ở Nguyên Sơn, developed by Công ty CP Bất động sản Nguyên Sơn, and Khu đô thị mới Vàm Cỏ Đông Southgate, developed by Công ty CP Southgate, the developers have not submitted files to issue ownership certificates to homebuyers. At Vàm Cỏ Đông Southgate, Tây Ninh provincial authorities have not determined or collected additional land-use fees after a partial zoning adjustment, and Southgate built the D8 bridge outside the approved plan. The inspectorate said it would continue reviewing the nature, extent and consequences of the remaining issues for handling under law. The filing does not disclose any monetary penalty or remediation cost.

Market Context

NLG trades on the HOSE and closed at 21,750 on 30 September 2026. The stock sits within the Vietnamese real estate sector, which has been sensitive to regulatory scrutiny and legal-procedure risk since the 2022-2023 credit tightening cycle. Inspection conclusions of this type typically affect sentiment more than near-term earnings, but they can delay handovers, ownership-certificate issuance and project launches, which are the sector’s key cash-flow drivers.

Strategic Significance

The core issue for long-term holders is execution risk on NLG’s township and affordable-housing pipeline. Selling before disclosure and without bank guarantees points to procedural gaps in sales governance rather than demand weakness, but remediation can slow revenue recognition and expose the company to administrative penalties. The mention of uncollected land-use fees at Vàm Cỏ Đông Southgate and unfinished ownership-certificate files at two projects also signals that municipal coordination, not just company conduct, is part of the bottleneck. For a developer whose model depends on repeatable, legally clean launches, the inspectorate’s follow-up requirements are the variable to track.

What to Watch

• Nam Long’s disclosure of a remediation plan and any administrative penalty amounts.
• Progress on ownership-certificate issuance for buyers at Khu nhà ở Nguyên Sơn and Vàm Cỏ Đông Southgate.
• Tây Ninh provincial authorities’ determination and collection of additional land-use fees at Southgate.
• Whether the inspectorate refers any findings to police or issues further sanctions.
• NLG’s Q3 2026 earnings release and any guidance change on handovers or launches.