Vietnam Construction and Real Estate Penalties: 7 Key Points Under Decree 339

The Government introduced Decree 339 to make enforcement of construction and property rules more consistent and address problems in applying the previous penalty decree. It sets out which violations can be penalized, who can be held responsible and what must be done to correct particular failures. 

Vietnam construction and real estate penalties changed on August 26, 2026, when Decree No. 339/2026/ND-CP was issued and took effect on the same day. It replaced Decree No. 16/2022/ND-CP and covers construction, technical infrastructure, housing management and development, and real estate business.

For management, the immediate task is to review work in progress, customer money and outstanding handovers. Depending on the violation, a fine may be accompanied by restrictions on operations or an order to stop work, correct documents, return money or complete a handover.

Quick Reference

The seven points to check under Vietnam Construction and Real Estate Penalties Under Decree 339 cover responsibility and timing, land use and construction approvals, property eligibility, customer money and contracts, brokers, trading floors, and apartment maintenance funds. The applicable penalties depend on the activity, the responsible party and whether the violation has ended. A fine may also come with restrictions on operations or an order to correct the failure.

What Decree 339 Changes

Vietnam Construction and Real Estate Penalties Under Decree 339 sets out administrative violations, penalties and corrective measures. The underlying duties must still be read under the applicable construction, housing and real estate legislation. The replacement of the penalty decree does not mean every duty described below is new.

The rules apply to Vietnamese and foreign organizations and individuals committing covered violations in Vietnam. Each business should focus on its actual role. A developer, an individual broker and a building management board do not have the same obligations.

Seven Points for Management to Check

Responsibility and the Date of the Violation

A project may involve several companies, a contractor and an outside sales agency. Management should identify which party has each legal duty and who holds the supporting records. An internal assignment helps organize the work; it does not by itself change the party legally responsible.

The limitation period for administrative penalties is one year for real estate business and technical infrastructure management, and two years for construction and housing management or development. For a completed violation, the period runs from its legally determined end date. For a continuing violation, it runs from detection. These periods are not fixed cutoffs for reviewing old records; a failure that began years ago may still be continuing.

The transition rule generally applies the rules in force when the violation occurred to conduct completed before August 26, 2026. Conduct that began earlier and was still continuing when Decree 339 took effect is handled under the new Decree. 

An unresolved problem is not automatically a continuing violation. The Decree contains specific rules for deciding when certain acts end. For example, the end date for a failure to hand over apartment maintenance funds is tied to full handover. Dated bank records and handover documents can therefore be important.

Construction Approvals and Actual Work

The project team should compare the work on site with the approved design and the construction permit, where a permit is required. The review should also cover site handover, the relevant construction contract, approved construction drawings and the commencement notice.

A site that is ready for workers may still lack a legal condition for starting. Missing commencement conditions can require construction to stop until they are met. Changes to the design or the work should be checked before they are carried out.

The permitted land use needs a separate review. The Decree directs violations involving construction on land used for the wrong purpose to the land-law penalty decree. Outside that specific case, works that breach both land and construction law are handled under both decrees. A construction review should therefore include the land documents and any required change of land-use purpose. 

A foreign contractor should separately need to check whether its work requires a construction operation license in Vietnam. The owner’s construction permit does not replace the contractor’s own licensing requirements.

Property Eligibility and Sales Information

Before a property is offered for sale or lease, the company should confirm that the proposed transaction is legally permitted. The documents needed will depend on whether the property is completed, still under construction or part of a project involving land with infrastructure.

The review should cover the relevant land and project documents, construction and acceptance status, mortgages, buyer eligibility and required public information. These are also central to real estate due diligence in Vietnam.

Sales information should reflect the current legal position. A change to the mortgage or project status may require a disclosure update. Management should make sure that sales staff and outside agents receive the same approved information before they make commitments to customers.

Customer Payments and Contract Terms

The bank-payment rule covers project developers, real estate businesses and real estate service enterprises, including brokerage and trading-floor companies. Customer payments under real estate or real estate service contracts must pass through an account at a domestic credit institution or a foreign bank branch operating lawfully in Vietnam. Finance teams should check the account stated in the contract against the account actually receiving the money.

For off-plan property, the Law on Real Estate Business limits a developer’s deposit to 5% of the sale or lease-purchase price. The property must already meet the legal conditions for being put into business before the deposit is collected. The agreement must state the price. A deposit within the 5% cap can still be unlawful if collected too early. 

The review should also cover the amount and timing of later payments and the permitted use of customer funds. Sales staff and outside agents should use payment terms that reflect the project’s current legal status.

Off-plan housing also needs a separate bank-guarantee check. The developer should confirm the required bank approval and guarantee commitment, and when the buyer must receive a guarantee letter. The Decree recognizes an exception to providing the buyer-specific letter where the buyer refuses the guarantee. That refusal does not remove the requirements for the developer’s bank approval and guarantee commitment. 

The required contract model and mandatory terms should be checked before signing. A property sale contract in Vietnam should clearly address payment conditions, handover, title documents and refunds. Improper collection or use of customer money may lead to repayment and related interest or other corrective measures, depending on the applicable provision.

Individual Brokers and Brokerage Companies

Each person practicing real estate brokerage must have the required certificate and work within a real estate brokerage company or a real estate trading-floor company. The individual broker must also follow the operating rules of that enterprise. The company has separate duties concerning its rules, facilities, reporting and pre-operation information submission.

The requirement for a brokerage company to have at least one certified individual does not allow its other brokers to practice without certificates. Management should check the people actually handling transactions, including those engaged through outside arrangements. 

Property information supplied by the company and its brokers must be complete and truthful as required by law. A practical review should compare their statements to customers with the documents supporting the listing.

Real Estate Trading Floors

A company operating a real estate trading floor should review its operating license and the qualifications of its manager. The review should include its facilities, published transaction procedure, property information, transaction confirmations, retained records and required reports.

Changes to registered information may require a filing. The operator should also confirm that the brokers it contracts with are qualified and that properties placed on the trading floor meet the legal conditions for business.

Certain failures can lead to a suspension of trading-floor services. The operator should identify which condition is missing and what must be corrected before relying on the business to continue handling transactions.

Apartment Management and Maintenance Funds

The developer, the apartment operator and the building management board have separate duties. A building management board is treated as an organization for penalties; individual board members may separately face penalties for their own breaches. The review should also distinguish the maintenance fund for common property from money collected for day-to-day building operations. 

For the developer, the maintenance-fund review starts with the correct account, required account notices and information in sale or lease-purchase contracts. It also covers the contribution calculation, including qualifying areas retained or not yet sold by the developer, and the handover of the fund and accrued interest when due.

The first apartment meeting, building records and handover documents also need attention. A building occupied by residents may still have outstanding developer obligations.

The apartment operator must meet its operating requirements and report as required to the board and apartment meeting. The board has duties concerning receipt of records and funds, its maintenance account, financial rules and disclosure of expenditure. Where required, board members must complete the relevant training.

Management should reconcile the amount due, the amount held in the bank and the amount transferred. Any difference should have an explanation and supporting documents. An order to reimburse misused funds or complete a handover may apply in addition to a fine.

In short, for managing the risks of Vietnam Construction and Real Estate Penalties Under Decree 339, the management should begin with activities still taking place and obligations that remain unpaid or incomplete. Each issue needs a responsible person, a correction date and evidence that the required action has been completed.

Frequently Asked Questions

Q1: How Large Can Vietnam Construction and Real Estate Penalties Be?

The maximum fine for an organization is VND 1 billion in construction and real estate business, and VND 300 million in technical infrastructure and housing management or development. These are statutory ceilings, not the fine for every violation. The applicable amount depends on the specific act and the rules governing the penalty.

Q2: Do the Same Fine Amounts Apply to Individuals?

Generally, an individual faces half the organizational fine for the same act. Individual rates also apply to households and registered household businesses. Some provisions state an individual fine directly, including certain breaches by brokers and individual building management board members.

Q3: Does Correcting a Problem Remove Liability for the Earlier Violation?

Correction does not automatically erase an earlier violation. It may end a continuing failure or satisfy a required corrective measure. The dates, applicable rules and limitation period still need to be reviewed.

Q4: Does Paying the Fine Allow the Business to Continue?

Not necessarily. For specified violations, additional sanctions include suspension of construction activity in Vietnam for one to six months or real estate business for three to six months. The right to use a construction practice certificate may be suspended for six to twelve months, or a construction permit for three to twelve months. These sanctions depend on the particular violation; they do not accompany every fine. Payment of a fine does not replace a missing approval or make an ineligible transaction lawful.

Conclusion

Decree 339 gives developers and property businesses a reason to review how their current work is being carried out. A focused review of construction approvals, sales, customer money and apartment funds can identify what needs correction before the next transaction or handover. Management should confirm that each agreed correction has actually been completed.

General Disclaimer

This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.