Da Nang Cracks Down on Illegal Practices: Collecting Placeholder Fees and Selling “Diplomatic Slots” for Social Housing

Da Nang has issued a mandate to rectify and severely penalize the unauthorized practices of "diplomatic quotas" and illegal brokerage in the sale of social housing.

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On November 26, the Danang City People’s Committee Office announced that Vice Chairman Le Quang Nam signed Official Dispatch No. 4174/UBND-ĐTĐT to rectify the submission of social housing purchase and sale dossiers.

Accordingly, the Danang People’s Committee assigned the Department of Construction to lead and coordinate with relevant units to expedite social housing projects. Additionally, project details must be fully disclosed at least 30 days before dossier submission, including: scale, number of units, selling price, rental price, dossier distribution time and location, and dossier submission start and end dates.

Danang addresses illegal “broker” and “diplomatic quota” practices in social housing sales.

This information must be published on the Department of Construction’s website, the commune-level People’s Committee’s website where the project is located, and at least once in a local newspaper.

The Department of Construction is responsible for guiding citizens to prepare dossiers correctly to avoid multiple submissions. They must also direct relevant agencies to verify eligible recipients and income/housing conditions using the Ministry of Construction’s new forms. The department will publish the list of eligible buyers/renters after contract signing and update data to prevent duplicate entries.

The People’s Committee requires authorities to strictly penalize illegal brokerage, “broker” activities, deposit collection, “guaranteed dossier” fees, and unauthorized “diplomatic quota” sales. Violators will be publicly identified to warn citizens against fraud.

Social housing project developers must strictly adhere to sales procedures, publish project information on their websites, and submit it to authorities for publication as required.

Citizens queue overnight to submit dossiers for An Trung 2 social housing.

During direct dossier submission, developers must set up multiple reception points, organize by time or residential area, provide guidance signage, and deploy staff to prevent overcrowding. If submissions exceed capacity, developers must extend submission deadlines and publicly announce this to ensure all citizens are accommodated.

The People’s Committee encourages digital solutions for online dossier submission, virtual queuing, and online dossier distribution to reduce in-person congestion.

The dispatch emphasizes that citizens registering for social housing must proactively research legal regulations and project information through official channels. They should interact directly with developers’ staff, avoid “brokers” or “diplomatic/internal quotas,” declare information truthfully, and submit dossiers for only one project without using proxies.

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