Urgent need to prevent root causes of real estate business violations

The Vietnamese real estate sector is grappling with widespread irregularities, leading to significant financial losses for investors and creating potential security and social order issues. Projects like the Bavico Nha Trang hotel and apartment complex, built on national defense land, have been seized as part of fraud investigations, leaving hundreds of secondary investors facing the risk of losing their assets after years of pursuing claims.

Despite existing regulations under the 2014 and 2023 Real Estate Business Laws, which clearly define conditions for project sales and require financial guarantees from commercial banks, a significant gap persists between law and practice. Developers frequently circumvent these rules by using disguised capital mobilization methods such as "deposit reservation contracts," "investment cooperation contracts," and "product registration forms." This allows them to collect funds from customers even before projects meet legal requirements, including obtaining certificates for future-formed housing.

The article points to a systemic failure in state management, citing shortcomings in land, planning, investment, and construction oversight across multiple terms. Inadequate and untimely inspections, coupled with the unchecked proliferation of deposit and reservation transactions, have contributed to the problem. Furthermore, the brokerage sector, especially freelance agents, lacks stringent oversight and has become a major channel for disseminating risks in the market. The piece stresses the urgent need to address these issues at their root, emphasizing preventative measures and deterrent penalties to safeguard the integrity of the real estate market and protect investors from further harm.