Are new developments safe to buy Vietnam?

Authored by the expert who managed and guided the team behind the Vietnam Property Pack

Everything you need to know before buying real estate is included in our Vietnam Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Vietnam. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Vietnamese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Ho Chi Minh City, Hanoi, and Da Nang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Who legally owns the land where new developments are built, and can you verify this ownership?

Vietnamese law requires all land ownership to be documented through a Certificate of Land Use Rights, commonly called the Red Book or Pink Book.

This certificate identifies the legal holder of land use rights and must be verified before any property purchase. The document specifies the land plot number, usage term duration, and any existing restrictions or encumbrances.

For new developments, you should request to see the original Red Book certificate from the developer, not photocopies or scanned versions. The certificate will clearly state whether the land is held under state lease or private ownership rights, along with the exact duration of those rights.

As of September 2025, Vietnamese citizens can hold freehold ownership of residential properties, while foreigners are limited to 50-year renewable lease structures. The Red Book will specify these terms and any remaining lease duration.

It's something we develop in our Vietnam property pack.

Does the developer have all required government approvals and permits for the project?

All Vietnamese real estate developments must obtain multiple government approvals before construction can legally begin.

Required documentation includes investment registration certificates, detailed planning approvals at 1/500 scale for residential projects, environmental impact assessments, building permits, and operational licenses. These permits are issued by the Department of Construction and Provincial People's Committees.

You should verify that the developer has obtained all necessary approvals by requesting to see original permit documents. Each permit serves a specific regulatory purpose and missing approvals can halt construction or prevent legal sales to buyers.

Major Vietnamese banks maintain approved project lists and will only provide mortgage financing for developments with complete permit documentation. This banking requirement serves as an additional verification layer for regulatory compliance.

Has the developer successfully completed other projects in Vietnam with good track records?

Developer track records provide crucial insight into their ability to deliver projects on time and to promised quality standards.

Research the developer's portfolio through official Vietnamese real estate directories and market analysis services to confirm past project delivery performance. Look specifically for evidence of punctual completions and adherence to original specifications.

Reputable developers will readily provide information about their completed projects, including delivery timelines and customer satisfaction records. Be cautious of developers who cannot provide clear evidence of successful past completions.

Vietnamese property market databases and real estate professional associations maintain records of developer performance that can be accessed for verification purposes.

Is the project officially registered with construction authorities and included in approved development lists?

Registration Authority	Required Documentation	Verification Method
Department of Construction	Project registration certificate	Check official provincial approved lists
Provincial People's Committee	Investment approval certificate	Verify through committee public records
Planning Department	Master plan approval document	Cross-reference with city planning office
Environmental Department	Environmental impact assessment	Check environmental compliance database
Fire Safety Authority	Fire safety compliance certificate	Verify with local fire department records

What type of ownership duration is offered, and how many years remain?

Vietnamese property ownership structures differ significantly between local citizens and foreign buyers.

Vietnamese citizens can purchase freehold residential properties with permanent ownership rights. Foreign buyers are limited to 50-year renewable leasehold arrangements for both apartments and houses, with no direct land ownership permitted.

The remaining lease term is always specified in the title certificate and purchase agreement. For foreign buyers, it's essential to clarify exactly how many years remain on the lease before committing to purchase.

Lease renewal processes require government approval and may involve additional fees or changed conditions. Understanding the renewal framework is crucial for long-term investment planning.

It's something we analyze thoroughly in our Vietnam property pack.

Are there restrictions or quotas on foreign buyers in this specific project?

Vietnamese law imposes strict quotas limiting foreign ownership in residential developments.

Foreign buyers can own maximum 30% of units in any condominium building and maximum 10% of houses in landed residential projects. These quotas are calculated per individual project, not per developer or area.

Before committing to purchase, request current quota status from the developer showing how many units have been sold to foreign versus Vietnamese buyers. Once foreign quotas are filled, no additional foreign sales are permitted.

Some high-end developments in Ho Chi Minh City and Hanoi reach foreign ownership limits quickly, particularly in popular expat areas. Early verification of quota availability is essential for foreign buyers.

Is the project compliant with fire safety, environmental, and zoning regulations?

Vietnamese developments must comply with comprehensive safety and environmental regulations before receiving occupancy permits.

Fire safety compliance requires specific certificates from local fire departments confirming adequate emergency exits, sprinkler systems, and evacuation procedures. Environmental compliance involves impact assessments for construction effects on local ecosystems.

Zoning compliance ensures the project matches approved land use designations and density requirements. Mixed-use developments require additional permits for commercial components.

Request to see original compliance certificates for each regulatory area, not summary statements. Non-compliant projects may face construction halts or occupancy delays that affect delivery timelines.

Which Vietnamese banks officially provide mortgages for this development?

Vietnamese bank mortgage approval serves as an additional verification layer for project legitimacy and compliance.

Major Vietnamese banks including Vietcombank, BIDV, and Techcombank maintain approved project lists and conduct independent due diligence before offering financing. Banks require complete legal documentation and regulatory compliance before approving mortgage lending.

Foreign buyers face additional mortgage restrictions, with most Vietnamese banks requiring 30-50% down payments and limiting loan terms to 15-20 years for non-residents. Interest rates for foreign borrowers typically range 8-12% annually as of September 2025.

If major Vietnamese banks refuse to provide mortgages for a specific development, this indicates potential legal or compliance issues that require further investigation.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What percentage of the project has been sold, and what's the buyer composition?

Understanding project sales progress and buyer composition provides insights into market acceptance and foreign quota availability.

Developers typically disclose percentage of units sold, though detailed breakdowns by Vietnamese versus foreign buyers may require specific requests. High local buyer interest often indicates strong market fundamentals and good location selection.

Projects with very low sales rates may indicate pricing issues, location problems, or market concerns that require investigation. Conversely, projects with extremely high foreign buyer percentages may be approaching quota limits.

Sales velocity information helps assess whether the project will achieve completion financing and delivery timelines as promised to buyers.

What's the construction progress and completion schedule with delay penalties?

Construction progress and delivery timelines directly impact investment returns and occupancy planning for buyers.

Request detailed construction schedules showing current progress against planned milestones, including foundation completion, structural work, and finishing phases. Reputable developers provide monthly progress reports with photographic documentation.

Purchase contracts should specify clear delivery dates and penalty clauses for construction delays. Standard Vietnamese property contracts include delay penalties ranging 0.02-0.05% of purchase price per day for late delivery.

Weather delays during monsoon seasons are common in Vietnamese construction projects, so realistic scheduling should account for seasonal factors affecting completion timelines.

What are the ongoing monthly fees and hidden ownership costs?

Vietnamese condominium ownership involves multiple ongoing costs beyond the initial purchase price that must be factored into investment calculations.

1. **Monthly Management Fees**: Range VND 15,000-35,000 per square meter in Ho Chi Minh City and Hanoi developments as of September 20252. **Sinking Fund Contributions**: One-time payments of 2-5% of purchase price for major building repairs and renovations3. **Property Management Services**: Additional fees for security, cleaning, and facility maintenance ranging VND 500,000-2,000,000 monthly4. **Utility Connection Fees**: Electricity, water, and internet setup costs typically VND 5-15 million per unit5. **Property Tax**: Annual rates of 0.03-0.15% of property value for residential units6. **Insurance Requirements**: Building insurance and personal property coverage often mandatory for mortgage buyers

Request complete fee schedules from developers showing all current and projected costs, including any planned increases for the first five years of ownership.

Are there any disputes, lawsuits, or investigations involving the developer or project?

Legal disputes can significantly impact project completion and ownership security for buyers.

Check Vietnamese court records, local media reports, and government notices for any ongoing litigation involving the developer, land ownership, or project approvals. Land ownership disputes are particularly serious and can halt construction indefinitely.

Online property forums and Vietnamese real estate communities often discuss problematic developers or projects experiencing legal difficulties. These sources provide early warning signs before formal legal proceedings begin.

Government investigations into developer licensing, permit violations, or financial irregularities can result in project suspensions or cancellations that leave buyers without recourse.

It's something we cover extensively in our Vietnam property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. ASL Gate - Red Book Certificate Updates Vietnam 2025
2. Apolo Legal Services - Property Ownership Verification Vietnam
3. Vietnam Briefing - Project Approval Requirements
4. Legal Mondo - Vietnam Land Register Information
5. LTS Legal - Vietnam Permits and Licenses Guide
6. Vietnam Real Estate - Top Developers 2024
7. Tilleke & Gibbins - Foreign Land Acquisition Vietnam
8. Move to Asia - Vietnam Land Purchase Guide Foreigners