In the context of Vietnam’s growing integration and economic development, the real estate market has emerged as an attractive destination not only for domestic investors but also for many foreign individuals and organizations. However, alongside its potential, the market also presents various legal risks—particularly for foreign investors who may not be fully familiar with Vietnam’s legal framework and real estate procedures.
In one recent case, SB Law acted as legal counsel for a Hong Kong client in a dispute arising from a Deposit Agreement for the purchase of an apartment located in the heart of Ho Chi Minh City.
Case Background:
In 2018, Mr. K, a Hong Kong national and client of SB Law, entered into a Deposit Agreement with AL Real Estate Co., Ltd. to purchase an apartment in the AH Project, situated in the central area of District 1, Ho Chi Minh City. Under the Agreement, Mr. K paid a deposit of over VND 3 billion, equivalent to 30% of the apartment’s value, based on AL's commitment that the official Sale and Purchase Agreement would be signed in 2019.
However, AL Company repeatedly and unilaterally postponed the signing schedule of the sale and purchase agreement. In light of this, Mr. K requested to terminate the Deposit Agreement. After more than three months of consideration, AL Company agreed to terminate the Agreement and committed to refunding the entire deposit to Mr. K within 180 days, without interest.
Despite this commitment, more than two years have passed without any payment being made. AL Company also failed to provide any updates or maintain any communication with Mr. K. Believing that his lawful rights and interests were being infringed upon, in July 2023, Mr. K retained SB Law to provide legal services to protect his legitimate rights.
SB Law’s Role:
Upon receiving the case, SB Law’s legal team promptly undertook a comprehensive legal assessment and began representing the Client in resolving the dispute, including the following key actions:
- Reviewing the entire deposit agreement, its annexes, the termination agreement, and all related documents;
- Evaluating AL Company’s breaches of contractual obligations under applicable Vietnamese law;
- Advising on legal strategy and representing the Client in sending a formal Warning Letter to AL Company; simultaneously preparing and submitting a lawsuit to the competent Court to request AL Company to refund the deposit paid by Mr. K along with late payment interest, in accordance with the 2015 Civil Code.
Based on the provisions of the Civil Code, SB Law calculated the late payment interest at 10% per annum. As of July 2025, the total compensation amount (including principal and interest) claimed by SB Law on behalf of the Client exceeded VND 4 billion.
Outcome:
On July 10, 2025, the People’s Court of Ho Chi Minh City held the first-instance hearing. With SB Law’s thorough preparation of evidence and legal arguments, combined with a strong litigation strategy, the Trial Panel rendered a Judgment entirely in favor of SB Law’s Client.
According to the Court’s decision:
- The Court accepted all claims of the Plaintiff and ordered AL Real Estate Co., Ltd. to refund the deposit of more than VND 3 billion together with interest for late payment, bringing the total payable amount to over VND 4 billion;
- This amount shall continue to accrue interest from the date the Client submits a Request for Enforcement until the judgment is fully executed;
- AL Real Estate Co., Ltd. shall bear all first-instance civil court fees in accordance with the law.
This ruling marks a significant step in affirming the protection of the Client’s lawful rights and interests, while also demonstrating the Vietnamese judiciary's commitment to maintaining a transparent and equitable legal environment for foreign investors in Vietnam.
SB Law’s Capability and Commitment:
This case serves as a prime example of resolving a civil dispute involving foreign elements and highlights SB Law’s active role in protecting the rights of real estate buyers in a legally complex and evolving environment.
With a team of lawyers possessing in-depth expertise in civil law, real estate, and investment law, as well as the ability to work fluently in bilingual (Vietnamese–English) environments, SB Law has consistently been a trusted legal partner for the foreign investor community participating in transactions in Vietnam.
We understand that for foreign clients, a real estate transaction is not merely a financial investment, but also a matter of trust in the stability and transparency of the market. Therefore, SB Law is committed to accompanying clients throughout every legal step—from contract advisory and drafting to dispute resolution—with the guiding principles of transparency – fairness – compliance with the law.
