Nguyen Danh Cong – Partner
Nguyen Quang Thai – Junior Associate
On 26 August 2026, the Government issued Decree No. 339/2026/ND-CP providing for administrative penalties for violations in the fields of construction, technical infrastructure management, housing management and development, and real estate business (“Decree 339”). This Decree officially comes into force from 26 August 2026, replacing Decree No. 16/2022/ND-CP.
Decree 339 establishes a stringent legal framework with highly deterrent sanctions aimed at restoring order, enhancing transparency in the real estate market, and heightening the responsibilities of participants in construction activities. Key provisions that enterprises and project developers must take note of include the following:
Strict Control of Real Estate Transactions and Enhancement of Information Transparency
Decree 339 tightens the monitoring of cash flows and transparent public disclosure of information in the market through strict sanctions:
- Imposition of substantial administrative fines (ranging from VND 240 million to VND 300 million) for receiving cash payments for the purchase, sale, transfer, or brokerage services of real estate without transferring funds through a bank account;
- The act of listing real estate ineligible for trading on real estate exchanges is subject to significantly increased fines (from VND 400 million to VND 600 million), which are substantially higher than the former regulations under Decree No. 16/2022/ND-CP; and
- Fines imposed for acts of failure to disclose, incomplete disclosure, or inaccurate disclosure of information concerning real estate projects and housing put into business on the Information System on Housing and Real Estate Market.
The escalation of these sanctions reflects the firm determination of state regulatory authorities to eliminate illicit transactions and opaque information, enhance transparency, combat money laundering, prevent tax loss, and safeguard the lawful rights and interests of homebuyers and secondary investors.
Strengthening Sanctions for Apartment Building Management and Construction Order
To address hotspots and recurring complex disputes in residential housing projects, Decree 339 supplements and tightens several new sanctions:
- Unauthorized division, sale, or lease of car parking spaces in apartment buildings in violation of applicable laws faces fines ranging from VND 160 million to VND 200 million. In addition, defaulting project developers are subject to remedial measures requiring them to re-adjust the sale or lease of parking spaces in compliance with regulations;
- Violations by project developers or building management boards relating to the management and operation of apartment buildings and maintenance funds (such as failing to establish a maintenance plan or failing to convene the initial general meeting of apartment owners in accordance with regulations) are strictly penalized, with fine brackets reaching up to hundreds of millions of VND;
- Stringent penalties are imposed on acts of organizing construction work without a construction permit (for works requiring a permit) with fines of up to VND 160 million, alongside sanctions for violations regarding site safety, screening, and environmental sanitation.
Compliance Recommendations
Given that Decree 339 has officially come into effect, replacing Decree No. 16/2022/ND-CP, with a broad scope of regulation, heavy financial penalties, and numerous remedial measures, project developers, real estate enterprises, real estate service providers, trading exchanges, brokers, and apartment building management and operation entities must proactively conduct a comprehensive review of internal operations to identify, control, and mitigate legal risks, specifically:
- For Project Developers and Apartment Building Management Boards: A comprehensive review of design dossiers, master plans, and schemes for allocating common and private ownership of utility systems—especially car parking areas—must be conducted to prevent major financial penalties and mandatory remedial measures imposed by state authorities.
- For Real Estate Enterprises: Strictly control statutory conditions for putting real estate into business; deposit, collection, and payment procedures; public disclosure and updating of project information; and advertising and provision of information to customers.
- For Real Estate Exchanges and Brokers: Verify the legal eligibility of real estate products prior to listing/introducing them; control advisory and advertising content; refrain from receiving or collecting money in violation of regulations; and retain documentation demonstrating full compliance.
Recommendations on Compliance Governance
To mitigate risks arising from the implementation of Decree 339, enterprises are advised to shift from a reactive approach “handling violations post-event” to a proactive compliance governance mechanism. Accordingly, entities should establish a legal compliance checklist tailored to each phase of a project-spanning investment preparation, construction, inspection and acceptance, sales launch, contract execution and performance, through to handover, management, and operation.
Concurrently, clear allocation of responsibilities must be established among legal, commercial, accounting, project management, marketing, trading exchange, and operation management departments; conduct periodic training for relevant personnel; maintain complete records evidencing compliance; and implement an independent review mechanism for high-value transactions or those involving complex legal elements.
In summary, the escalation of penalty severity and scope under Decree 339 underscores that compliance requirements for participants in the construction and real estate sectors are being elevated to a higher standard. Enterprises must not only ensure formal compliance on paper but also establish robust control mechanisms to guarantee transparency, consistency, and verifiability throughout project implementation and customer transactions. This serves as a crucial factor in minimizing the risks of administrative sanctions, operational suspensions, or mandatory remedial measures under Decree 339.
