HCMC fines Dream Home Riverside developer VND 900 million for selling 682 apartments before meeting conditions

The HCMC People’s Committee has issued Decision No. 6199/QD-XPHC fining Ly Khuong Production and Trading Co., Ltd. VND 900 million for signing sale contracts for 682 off-plan apartments at Dream Home Riverside (Binh Dong Ward, HCMC) before meeting the legal conditions for sale.

Details of the penalty decision

• Fine: VND 900 million. The decision was signed by Vice Chairman of the HCMC People’s Committee Hoang Nguyen Dinh.
• Company fined: Ly Khuong Production and Trading Co., Ltd., headquartered at 38/6Q Nguyen Van Troi, Cau Kieu Ward, HCMC, with Mr Nguyen Viet Tuan as Director.
• Violation: signing sale contracts for 682 off-plan apartments in block D3 (367 units) and block D4 (315 units) before meeting business conditions.
• These apartments were outside the lists confirmed by the HCMC Department of Construction as eligible for sale in Letter No. 6084/SXD-PTN&TTBDS of 04/6/2021 (block D3) and Letter No. 18765/SXD-PTN&TTBDS of 01/12/2023 (block D4).
• Legal basis: Clause 4, Article 68 of Decree 339/2026/ND-CP of 26/8/2026.
• Remedial measure: return the illegal profits, including interest earned on money collected improperly.
• Deadline: pay the fine within 10 days of receiving the decision; late payment will be enforced with a late fee of 0.05% per day.

Project status and handover schedule

• The project was granted Construction Permit No. 91/GPXD by the HCMC Department of Construction on 20/7/2020.
• Under the approved design, block D3 consists of two 25-storey towers, A and B, joined by two shared basements; block D4 is a 25-storey building with two basements and a one-storey auxiliary block.
• Construction has been halted since around 2023. In block D3, tower A has its structure and link bridge up to floor 8 and tower B up to floor 5; block D4 has only part of floors 2 and 3.
• According to the figures cited, the developer has transacted about 2,000 apartments and collected 70% to 95% of buyers’ contract value.
• Handover was promised for August 2024 for contracts signed in October 2021; the project is now more than two years late.

Authorities’ handling

• The HCMC Department of Construction requires the developer to secure funding to complete block D3 and carry out acceptance procedures for occupancy as committed.
• The developer must hold customer meetings, disclose its financial plan and negotiate to resolve contract issues and disputes with residents.
• The HCMC People’s Committee assigned the Department of Finance to inspect and assess the developer’s financial capacity.
• The HCMC People’s Committee asked the HCMC Police to investigate and act if there are signs of misappropriation or misuse of money raised from homebuyers.
• The Department of Construction noted that the sale contracts are civil transactions; if the parties cannot negotiate, disputes fall under the jurisdiction of the courts.