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Bank guarantee (Bảo lãnh): what it is, why it matters, how to obtain it
What is a bank guarantee for a Vietnam property purchase?
Bank guarantee at a glance
Document- Vietnamese name
- Bảo lãnh (ngân hàng bảo lãnh nhà ở hình thành trong tương lai)
- Literally: “guarantee for housing formed in the future”
- Issued by
- A commercial bank licensed by the State Bank of Vietnam (SBV) and accepted by the developer for the project
- Not every bank qualifies — always check the project-specific approved bank
- Who arranges it
- The developer, before marketing or collecting any payment for an off-plan unit
- Buyers do not apply for it themselves
- Typical cost to the buyer
- None charged directly — the guarantee fee is a developer-side financing cost
- Occasionally reflected indirectly in the sale price
- Validity
- From pre-sale until at least 30 days after the contractual handover date
- Governing law
- Circular 11/2022/TT-NHNN, as amended by Circular 61/2024/TT-NHNN; Housing Law 2023 (in force since 1 January 2025)
- Required for
- Off-plan (future-formed) apartments and villas sold by a developer
- Not applicable to resale / secondary-market purchases
How to obtain and verify a bank guarantee
⏱ Same day to about 1 week for verification, before any payment
You do not apply for the guarantee yourself — the developer arranges it with its bank before it can lawfully collect your deposit. Your task, as the buyer, is to obtain a copy and verify it before you transfer any money. None of the steps below require you to visit the bank in person from abroad; verification can be done by phone, email or through a Vietnam-based lawyer acting on your behalf.
- 1
Ask for the guarantee before signing anything
⏱ Same day
Request a copy of the bank guarantee for the specific project — and ideally the specific block or phase — before you sign a reservation form or transfer a deposit. A reputable developer provides this without hesitation; reluctance to show it is itself a warning sign.
DocumentsPassport · Reservation form (unsigned)
⚠Some developers show a guarantee covering an earlier phase of a large township, not the specific block you are buying into — check the block or tower name matches exactly.
→ law firms - 2
Confirm the issuing bank is genuinely licensed for the role
⏱ 1–2 days
Check that the bank named on the guarantee is a commercial bank licensed by the State Bank of Vietnam, and that it is the bank the developer has publicly disclosed for this project — developers are required to publish this. Foreign and joint-venture banks operating in Vietnam may also issue guarantees if licensed to do so.
- 3
Read the guaranteed amount, dates and trigger conditions
⏱ 1 day
The certificate should state a guaranteed amount (normally matching your scheduled payments), an expiry date running to at least 30 days after the contractual handover date, and the conditions under which you can claim repayment — typically the developer's failure to hand over as contracted.
⚠A guaranteed amount lower than your actual payment schedule leaves part of your money unprotected.
- 4
Verify the guarantee number directly with the bank
⏱ Same day◈ No charge
Call the issuing bank's branch — not a number supplied by the developer's sales office — and ask staff to confirm the guarantee number, the guaranteed amount and its validity for your unit. Reputable banks in Vietnam will confirm this to a named buyer on a specific transaction.
⚠Never rely solely on a scanned copy or a translation supplied by the sales team — confirm the original with the bank.
- 5
Keep it with your purchase file and re-check if handover slips
File a certified copy alongside your Sale & Purchase Agreement and payment receipts. If the project's handover date is pushed back, confirm the guarantee has been extended or renewed to cover the new timeline before you make any further payment.
DocumentsSale & Purchase Agreement · Payment receipts
What the guarantee costs — and who pays
The guarantee itself is a developer-side financing cost. The figures below are the buyer-side costs of having it checked — not the guarantee fee, which buyers are not charged directly.
| — | Min | Max | Base |
|---|---|---|---|
| Bank guarantee arrangement feeNot invoiced separately to the buyer; occasionally reflected indirectly in the sale price | €0 | €0 | borne by the developerDeveloper, at project financing stage |
| Independent legal review of the guaranteeConfirms the issuing bank, guaranteed amount, expiry and claim conditions match the SPA | €150 (≈ 4,000,000 VND) | €400 (≈ 10,600,000 VND) | flat fee, one-offBuyer, optional but recommended before any deposit |
| Certified translation of the guaranteeThe Vietnamese original remains the legally binding version | €40 (≈ 1,060,000 VND) | €120 (≈ 3,180,000 VND) | per documentBuyer, if a certified copy is needed for personal or bank records |
| Bank confirmation call or letterVietnamese banks generally confirm guarantee details to a named buyer at no charge | €0 | €0 | includedBuyer, direct with the issuing branch |
| Total | ≈ €190 (≈ 5,000,000 VND) | ≈ €520 (≈ 13,800,000 VND) |
Circular 11/2022/TT-NHNN · Circular 61/2024/TT-NHNN · Housing Law 2023 (in force since 1 January 2025)
Frequently asked questions
Are banks in Vietnam insured?
Domestic deposits at Vietnamese commercial banks are covered by the national deposit insurance scheme, and every commercial bank is licensed and supervised by the State Bank of Vietnam (SBV). A project bank guarantee is a separate instrument: it protects your deposit and progress payments on one specific development, not your personal bank account.
What does a bank guarantee cover?
It covers repayment of the amounts you have actually paid — deposit and progress payments — if the developer fails to hand over the unit as contracted. It does not cover construction defects, finishing quality, or delays that do not breach the contractual handover deadline.
What is the SBV in Vietnam?
The State Bank of Vietnam (SBV) is the country's central bank and banking regulator. It licenses and supervises every commercial bank, including which banks are eligible to issue guarantees for off-plan housing sales.
Is a bank guarantee compulsory for off-plan purchases?
Yes. Under Circular 11/2022/TT-NHNN, as amended by Circular 61/2024/TT-NHNN, a developer selling future-formed housing must have a bank guarantee in place before collecting advance payments, with only narrow project-type exceptions.
What if the developer cannot show me a bank guarantee?
Treat it as a red flag. Do not pay a reservation deposit or any progress payment until you have seen — and independently verified with the bank — a valid guarantee for the specific block or phase you are buying into.
Can I claim under the guarantee if handover is delayed?
Generally yes, once the delay breaches the deadline set in your Sale & Purchase Agreement and falls within the guarantee's own validity period. The claim runs through the issuing bank and typically requires supporting evidence from the SPA — an area where legal counsel is strongly advised.
Does a bank guarantee cover construction quality or design changes?
No. The guarantee is a financial instrument — it repays the money you have paid if the developer fails to hand over the unit at all. Snagging defects, finishing quality and layout changes are handled separately, typically at the handover inspection and through the Sale & Purchase Agreement's own quality clauses, not through the bank.
Is the guarantee document itself in English?
No. Vietnamese is the legally binding language for the guarantee, as it is for the underlying Sale & Purchase Agreement. Developers commonly provide an English translation for convenience, but the Vietnamese original is the version a bank or court will rely on if a dispute arises.
Sources
- Circular 11/2022/TT-NHNN (State Bank of Vietnam) — requires a developer selling future-formed (off-plan) housing to arrange a bank guarantee before collecting advance payments (no verified official English-language URL currently available; cited by name only).
- Circular 61/2024/TT-NHNN — amends Circular 11/2022/TT-NHNN's bank guarantee requirements (no verified official English-language URL currently available; cited by name only).
- Housing Law 2023 (Luật Nhà ở, No. 27/2023/QH15) — governs the sale of future-formed housing; in force since 1 January 2025.
Have a bank guarantee checked before you pay a deposit
Send us a copy of the guarantee, the reservation form and the draft Sale & Purchase Agreement. Our Hanoi advisory desk arranges an independent review and replies within 24 hours — no obligation, and never a substitute for your own lawyer.