Vietnam Draft Real Estate Law: Vingroup (VIC) Pushes for Earlier 5% Deposits

Overview

At a National Assembly group discussion on October 22, delegate Bui Xuan Hai proposed allowing real estate developers to collect the 5% deposit on off-plan property earlier, once basic legal procedures are completed, with the money held in an escrow bank account. Vingroup (VIC), listed on HOSE, and the Vietnam Banking Association have separately recommended earlier deposit collection under the draft Law on Real Estate Business. The debate matters for VIC because presale cash flow is a core funding channel for large residential pipelines.

Key Facts

• The draft law retains the existing cap of 5% on deposits for off-plan property, but only permits collection after the project has met conditions to be sold, including commencement or construction documentation.
• Delegate Bui Xuan Hai, Rector of Hai Phong University, proposed allowing collection once investors obtain investment policy approval, 1/500 detailed planning approval and a construction permit.
• Under the draft, developers must notify regulators before opening sales, and authorities have 8 days from notification to inspect and respond.
• Hai proposed placing deposit funds in a bank escrow account to prevent developers from using the money freely.
• The Vietnam Banking Association argued that deposit demand exists before a project is eligible for sale, and the current rule limits buyers’ access to housing.
• Vingroup proposed two options for off-plan deposits, including collection once a feasibility study report for the housing or construction works has been approved.
• The National Assembly discussion took place on October 22; the draft law remains under review.

What Happened

Speaking at the October 22 group discussion on the draft Law on Real Estate Business, delegate Bui Xuan Hai said the draft is overly cautious on conditions for selling off-plan, or “paper,” housing. Under the draft, developers must satisfy multiple requirements before selling, including project commencement or construction paperwork, and must notify regulators, who then have eight days to check and respond. The draft keeps the current 5% cap on deposits.

Hai argued the rule is illogical because once a project is eligible for sale, developers can sign contracts and receive payments directly without needing a deposit. He said developers want to gauge the market, and deposit collection helps them plan investment and strategy for future projects. He proposed keeping the 5% cap but allowing collection after basic legal steps: investment policy approval, 1/500 detailed planning approval and a construction permit. To protect buyers, he recommended escrowing deposits in a bank. The article also notes that the Vietnam Banking Association and Vingroup made separate recommendations last month for earlier deposit collection, with Vingroup proposing collection after a feasibility study report is approved.

Market Context

VIC closed at VND 232,900 on October 22, 2026, according to the price context. The stock is the flagship of Vingroup, one of Vietnam’s largest private conglomerates, with real estate development, homes, autos and other units under its umbrella. The draft law is being debated as Vietnam’s real estate sector, a key driver of credit and construction activity, remains sensitive to presale cash flow and bank funding. Any rule that shortens the time between project approval and deposit collection would affect developers’ working capital cycles and buyer confidence across HOSE-listed property names.

Strategic Significance

For long-term investors, the key issue is whether Vietnam shifts presale risk earlier in the project cycle. Vingroup’s proposal to collect deposits after feasibility study approval is more aggressive than the delegate’s proposal, which requires planning and construction permits. If adopted, earlier deposit collection would improve developers’ cash conversion and reduce reliance on corporate bonds and bank loans, but it would also raise the importance of escrow enforcement. The debate signals that regulators are weighing developer liquidity against buyer protection, a balance that will shape presale volumes and funding costs for VIC and peers.

What to Watch

• The National Assembly’s final vote and the official text of the Law on Real Estate Business, including the exact trigger for deposit collection.
• Whether the escrow account requirement is written into the law and which banks are designated to hold funds.
• Vingroup’s next project launch disclosures and any update on presale timelines for Vinhomes developments.
• SBV guidance on escrow accounts and real estate credit, given the Banking Association’s involvement.
• VIC’s Q3 2026 earnings release and management commentary on presale cash flow.