Vietnam Draft Real Estate Law: Earlier 5% Deposits Proposed for VIC

Overview

A National Assembly delegate has proposed letting real estate developers collect the 5% deposit on off-plan property earlier in the project cycle, at basic legal approval rather than at construction commencement, during a 22 October group discussion on the draft Real Estate Business Law. Vingroup (VIC), listed on HOSE, and the Vietnam Banking Association have made similar submissions, putting the deposit-timing rule at the centre of the legislative debate for listed developers.

Key Facts

• Delegate Bùi Xuân Hải, Rector of Hải Phòng University, spoke at the 22 October group discussion on the draft Real Estate Business Law.
• The draft retains the existing cap of 5% on deposits for off-plan property.
• Under the draft, developers must have commenced construction or hold construction documentation before selling off-plan units, and must notify regulators, who respond within 8 days.
• Hải proposed allowing deposits once investment approval, 1/500 detailed planning approval and a construction permit are in place.
• Hải suggested placing deposit funds in a blocked bank escrow account to prevent developers from using the money freely.
• The Vietnam Banking Association argued deposit demand exists before units are eligible for sale, limiting buyers’ access.
• Vingroup submitted two options and wants deposits collected once a feasibility study for the housing or construction works is approved.

What Happened

Speaking at the National Assembly’s group discussion on 22 October, delegate Bùi Xuân Hải described the draft law as overly cautious on the conditions for selling off-plan, or “paper”, housing. Under the draft, a developer must satisfy multiple requirements before selling, including that the project has broken ground or holds construction paperwork, and must notify the management authority, which has 8 days to inspect and respond. The draft keeps the current 5% cap on deposits.

Hải argued the rule is illogical because a project already eligible for sale allows the developer to sign contracts and take payment directly, making a deposit unnecessary. He said developers want to gauge the market, and deposits help them plan investment and strategy for future projects. He proposed keeping the 5% cap but permitting collection once basic legal procedures are complete: investment policy approval, 1/500 detailed planning approval and a construction permit. To protect buyers, he suggested moving deposit money into a blocked bank account. The article also cites the Vietnam Banking Association and Vingroup, which submitted two options and wants deposits taken once a feasibility study is approved. The article does not state whether the draft amendments have been formally tabled.

Market Context

VIC closed at VND 232,900 on 22 October 2026 on HOSE. The deposit-timing question sits at the intersection of real estate and banking, since earlier cash collection would improve developer working capital and presales visibility while raising customer-protection concerns that the escrow proposal addresses. The debate is part of the broader legislative review of the Real Estate Business Law, which shapes presale rules across the listed property sector.

Strategic Significance

For Vingroup, earlier deposit collection would shorten the cash cycle on large residential pipelines, funding construction and debt service before ground-breaking and improving presales visibility for investors modelling VIC’s property arm. The escrow safeguard, if adopted, would channel deposits through banks rather than developer balance sheets, changing how presale cash is deployed and potentially favouring developers with cleaner legal pipelines. The proposal also targets developers using subsidiary entities or side agreements to circumvent the deposit cap.

What to Watch

• Whether the draft law retains the 5% cap and the commencement condition in the next National Assembly session.
• Whether the escrow requirement is written into the final text and which banks would hold deposits.
• Vingroup’s next disclosures on presales and deposit policy for Vinhomes projects.
• National Assembly voting schedule and any revised draft published for public comment.
• Regulatory guidance on the 8-day notification and inspection process for off-plan sales.