Vietnam proposes amendments to Real Estate Business Law

Vietnam's Ministry of Construction is seeking feedback on a draft amendment to the Law on Real Estate Business. The revised law aims to impact the rights of both investors and homebuyers, with the goal of being presented to the National Assembly for potential approval during its October session.

A key point of debate involves the regulations for purchasing homes that are still under construction. Currently, for apartment projects, developers can only collect an initial payment of up to 30% of the contract value once the foundation is completed.

Some businesses have proposed loosening deposit regulations, suggesting that developers be allowed to collect a deposit of up to 5% of the sale price once basic legal procedures are completed, rather than waiting for the foundation to be finished. However, other stakeholders argue that priority must be given to protecting homebuyers to prevent developers from collecting funds without fulfilling their obligations.