Be wary of scams to obtain social housing through 'diplomatic' and 'internal' allocations

Many residents in Hanoi have reported having to pay large sums—at times reaching billions of dong—in the hope of obtaining social housing through so-called “diplomatic allocations” or “internal allocations.” Hanoi Police have issued a warning that criminals are exploiting social housing policies to commit fraud and misappropriate assets, including through schemes advertised online.

How the fraud works

According to the police, the abuse of social housing policies—including projects for the armed forces—continues with increasingly sophisticated methods. Offenders repeatedly use social media to advertise and solicit buyers for “diplomatic allocations,” “internal allocations,” or “guaranteed purchase allocations.” They claim to have connections with leaders, developers, or officials involved in social housing projects in the city, offering “consulting” and “brokering” services to generate illicit profits.

Many victims pay large amounts, sometimes billions of dong, to secure a unit. After receiving the money, the suspects allegedly fail to deliver as promised, do not refund in full, pay only in small installments, or delay payments before fleeing—leaving many households with severe losses.

Police warning and prevention measures

Hanoi Police said that despite repeated warnings, some residents remain overly trusting and fall for promises without legal basis, becoming victims of “middlemen.” To prevent such acts, the police urged residents to:

• Not follow instructions or allow brokers to forge documents or papers from agencies or organizations to ensure a dossier meets conditions for buying social housing, including false confirmations about housing, residence, workplace, or income.
• Only register and submit applications for buying, renting, or rent-to-buy social housing through the investor when an official notice is published, such as public postings on the City Department of Construction’s website, the local People’s Committee at the project site, government official statements, or the investor’s real estate trading floor if available.
• Absolutely not conduct transactions, place deposits, or transfer money to any individuals or organizations advertising illegal social housing for sale or claiming to have “internal quotas” or “diplomatic quotas.”
• Recognize that any advertising of “internal quotas,” “diplomatic quotas,” or “guaranteed purchase” for social housing is a violation of law. If money has been transferred to a “land broker” to obtain a “guaranteed quota,” or if such fraud is detected, citizens should promptly report to the nearest police authority for investigation and prosecution under the law.
• For those already benefiting from social housing policies, strictly comply with rules on management and use of apartments; do not illegally transfer, and do not prepare notarial deeds of sale before meeting conditions to avoid legal consequences during inspections, audits, and post-audit checks.

Recent case actions

On 25 March 2026, the Hanoi Police Investigation Agency issued an indictment and an arrest warrant for Le Trung Tien (born 1991, resident of Dai Thanh commune, Hanoi; CEO of Star Homes Real Estate Joint Stock Company) and Nguyen Thi Thuy (born 1987, HR Director of Star Homes) on charges of fraud and misappropriation.

The police said they are expanding the investigation to clarify the actions of six individuals involved in brokering and selling social housing, to pursue investigations and prosecutions and to establish the facts of fraud and asset misappropriation.

Stated penalties and related sentencing references

The content also states that life imprisonment for fraud and misappropriation is applicable in cases involving more than 30.8 billion dong. It further references that a group of criminals who defrauded and misappropriated billions from Visa cards was sentenced to 3 to 17 years in prison, and that a fraud group was arrested through multi-level marketing under “Sky Media.”