VIETNAM TIGHTENS PAYMENT AND TRANSPARENCY RULES FOR REAL ESTATE BUSINESSES

Contractual Payments Must Be Made Through Banks

Under Article 66 of Decree 339, project developers, real estate businesses and real estate service providers that accept contractual payments outside the banking system may be fined between VND 240 million and VND 300 million.

The provision is intended to implement the requirements of the 2023 Law on Real Estate Business, which requires regulated real estate business and service transactions to be settled through bank accounts.

However, the requirement does not apply in the same manner to all transactions involving individuals. Individuals conducting small-scale real estate businesses, as well as those selling or leasing property without commercial purposes, may still carry out transactions in cash in accordance with applicable regulations.

Stricter Penalties for Anti-Money Laundering Violations

Decree 339 also introduces penalties for certain violations related to anti-money laundering requirements in the real estate sector.

Under Article 77, organizations and individuals providing real estate services that fail to report suspicious or high-value transactions, or that provide inaccurate information or documentation, may face fines ranging from VND 40 million to VND 80 million.

Additional sanctions may include suspension of real estate business activities for one to three months.

Stronger reporting and transaction-monitoring requirements are expected to give regulators additional tools to identify unusual transactions and reduce the risk of real estate businesses being used for money laundering activities.

Aiming to Curb “Dual-Price” Transactions

According to market experts, requiring contractual payments to go through banks could help curb practices such as declaring a lower property price in contracts than the actual transaction value, receiving off-contract payments or failing to fully record revenue.

Routing payments through the banking system gives authorities greater visibility into transaction flows and provides additional grounds for monitoring compliance with financial obligations.

The measure is also part of broader efforts to improve transparency in the real estate market, particularly as regulators strengthen oversight of high-value transactions.

Higher Penalties for Non-Compliant Business Structures

Decree 339 also increases penalties for conducting real estate business without establishing a legally required enterprise, cooperative or cooperative union.

The new fine ranges from VND 120 million to VND 160 million, compared with VND 100–120 million under the previous rules.

The sanctions also apply to organizations and individuals that purchase, lease or lease-purchase housing or construction works but use them in violation of applicable regulations.

In addition to monetary penalties, violators may face suspension of real estate business activities for three to six months.

Failure to Disclose Project Information Could Result in Fines of up to VND 400 Million

Another notable provision concerns the disclosure of information before real estate products are offered for sale.

Developers that fail to disclose, or provide incomplete or insufficiently transparent information about a project or its products before launch may face fines ranging from VND 300 million to VND 400 million.

This represents a significant increase compared with previous regulations and highlights the growing importance of information transparency in real estate business activities.

Taken together, the new provisions on payment methods, transaction reporting and information disclosure reflect a broader regulatory shift toward greater financial transparency, improved transaction traceability and stronger accountability for property developers and real estate businesses.