Vacation Ownership: The Black and White Must Be Clear

Scrutiny has returned to the persistent issue of "vacation ownership" scams, brought to the forefront by the VTV documentary series "VTV Special Trap 2 - Traps from Vacation Ownership Contracts." These cases, previously reported by media, continue to ensnare victims with evolving and more intricate schemes.

A 2019 contract dispute clarified the nature of vacation ownership, establishing it as a service product rather than real estate. This ruling means customers are entitled only to the right to use accommodation services for specific periods as agreed in the contract, not to establish ownership or usage rights over land, housing, or construction works. Despite this, Vietnam still lacks official legal frameworks governing this product or the associated business relationships, creating a void in tourism, trade, and service contract regulations.

The absence of clear legal definitions hinders public understanding of vacation ownership as a distinct service product. This regulatory gap has fueled the rapid growth of vacation ownership businesses, some operating with minimal resources. Common tactics involve inviting potential clients to events with promises of vouchers, often held in the evenings. During these events, customers are pressured into making immediate decisions, with sales pitches emphasizing benefits that may not be verifiable. Contracts have been found to lack association with actual hotels, and clients are frequently asked for deposits under dimly lit conditions, raising concerns about orchestrated deception.