Due diligence in Vietnam: verifying the developer, the title and the project

Before you pay a reservation deposit

• Verify the developer's business registrationAsk your lawyer to cross-check the registration number against the National Business Registration Portal and the local Department of Planning and InvestmentRed flagNo verifiable registration number, or a company that only recently changed name
• Confirm the project's own approval and land-use rightsRequest the investment decision and construction permit that cover the specific building or phase you are buying intoRed flagThe developer cannot produce the project's own land-use certificate or approval decision
• Check for a valid bank guarantee (bảo lãnh) on off-plan unitsAsk which commercial bank on the State Bank of Vietnam's approved list issued it, and request a copy of the guarantee letter itselfRed flagNo guarantee at all, or a bank you cannot confirm is on the SBV-approved list
• Verify the seller's tax and dispute history on the unitRequest written confirmation of no outstanding tax liabilities or litigation tied to the propertyRed flagReluctance to disclose, or a seller who will not put the confirmation in writing

Before you sign the Sale & Purchase Agreement

• Confirm the title holder's identity matches the sellerCross-check the name on the Pink Book (Sổ hồng) against the seller's passport or ID at the district land officeRed flagThe seller's name differs from the name recorded on the certificate
• Read the land-use term and purpose fieldsCheck the 'Thời hạn sử dụng' (term) and 'Mục đích sử dụng' (purpose) fields printed on the certificateRed flagA term that has already lapsed, or a stated purpose incompatible with residential ownership
• Confirm the building's foreign quota still has roomRequest written confirmation from the developer or the building's management board of the current foreign-ownership countRed flagOnly a verbal assurance that 'there is still space'
• Confirm the site sits outside a military or national-security zoneHave your lawyer check the zoning classification with the local planning authorityRed flagUnclear or unusually restricted zoning status that no one can explain

The checks a title search should always cover

• Search for pending litigation tied to the titleInstruct a local lawyer to run a dispute search at the relevant district court and land registryRed flagAny pending claim on the property, however minor it is said to be
• Check for an existing mortgage or lien on the certificateRequest an up-to-date extract from the land registration office showing all registered interestsRed flagAn undischarged bank mortgage still registered against the title
• Ask about boundary or neighbour disputesRequest the surveyor's boundary map and speak directly with the building's management boardRed flagUnresolved boundary complaints already on record

Completed units, or a visit to the construction site off-plan

• Tap tiles and walls with a coinA hollow sound signals poor adhesion and a likely future crackRed flagExtensive hollow zones across floors or walls
• Pour water on bathroom and balcony floorsIt should flow cleanly to the drain within a few secondsRed flagStanding water, which points to a slope or waterproofing defect
• Test every switch, socket and the water pressureBring a phone charger and test each outlet room by roomRed flagDead circuits, or pressure too weak to be usable
• For off-plan: visit the physical construction siteCompare visible progress against the payment schedule you are being asked to followRed flagA site that looks inactive despite payment milestones already being invoiced