Forms of Capital Mobilization for Housing Development in Accordance with Vietnamese Law

Amidst the growing demand for housing and the rapid pace of urbanization, capital mobilization for housing development has become a key element in Vietnam's socio-economic development policy. Diversifying forms of capital mobilization not only helps address the resource challenges faced by investors but also ensures the rights and interests of citizens - the ultimate beneficiaries of housing projects.

Decree No. 95/2024/ND-CP and the 2023 Housing Law provide specific regulations to govern, guide, and oversee the forms of capital mobilization in this sector. These legal documents establish a safe and transparent legal framework for housing investment and construction activities. Specifically:

Legal Risks When Violating the Law in Capital Mobilization for Housing Development:

According to the provisions of the 2023 Housing Law, mobilizing capital in an improper form or failing to meet the specific conditions for each type of housing, as prescribed by the housing law, will have no legal value. In addition, the use of capital for housing development must also comply with the following principles: (i) Ensure transparency and openness; protect the legal rights and interests of the entities whose capital is mobilized; (ii) The capital must be used for the intended purpose of housing development and cannot be diverted to other projects or purposes; (iii) The arrangement and use of funds for housing development must align with the approved provincial housing development programs and plans. Accordingly, organizations and individuals involved in legal violations related to capital mobilization, depending on the nature and severity of the violation, may face administrative penalties or criminal liability, and if damages are caused, they must compensate for the damage in accordance with the law.