How to Get a Construction License in Vietnam for Foreign Contractors. From August 15, 2016, under Circular 14/2016/TT-BXD takes effect, foreign contractors are only allowed to carry out construction activities in Vietnam after being granted a license from a competent state agency of Vietnam. To be granted this license, a foreign contractor must also meet certain conditions during the implementation of a construction project in Vietnam.
Conditions for granting Construction Licenses to foreign contractors
First of all, foreign contractors must ensure that their construction activities in Vietnam must comply with Vietnam’s regulations and international agreements that Vietnam has signed or acceded to. In addition, the contractor must also meet the conditions prescribed by law:
- For projects in which bidding is required, the foreign contractor must, at the time of submission of dossiers of application for construction permits, have a winning decision or a decision to select a contractor.
- For projects (bidding packages) that are not required to hold a bid, if there is no winning decision, the foreign contractor must ensure that the foreign contractor satisfies the qualifications suitable to the contractor.
- Most importantly, the foreign contractor must enter into a partnership with a Vietnamese contractor or employ a Vietnamese subcontractor
In addition, the foreign contractor must commit to comply with all provisions of Vietnamese law relating to contracting activities in Vietnam.
Dossiers and procedures for applying for Construction Licenses for foreign contractors
A dossier of application for a construction permit for a foreign contractor has 2 cases:
- One is the application for a construction permit for the foreign contractor that is an organization.
- Second is the application for a construction permit for foreign contractors who are individuals.
Foreign investors are organizations
Documentation is specified in Article 4, Circular 14/2016/TT-BXD, including the following documents:
- Application form for construction permit (form)
- A copy of the bidding result or the contractor selection decision or contractor agreement
- Copy of contractor’s business registration certificate
- Report on experience in construction activities related to the contractor job (form)
- A copy of the partnership contract with the Vietnamese contractor or the Vietnamese subcontractor agreement, clearly identifying the work done by the Vietnamese contractor.
Foreign investors are individuals
The application includes the following documents:
- An application for an operation license
- A copy of the result of the bidding or the decision to select a bid or contractor agreement
- Copy of passport and copy of operation license or practice certificate of individual
Language and legalization
The entire application file for the license must be presented in Vietnamese.
For the operation licenses or practice certificates issued by the foreign competent authorities must be consular legalized.
Remaining papers in other foreign languages must be translated into Vietnamese and notarized or authenticated.
Processing time to get the Construction License in Vietnam
Dossiers of application for construction business permits for foreign contractors will be processed within 20-25 working days from the date of receivng valid contractor dossiers. The construction permits need to comply with rules a few rules, regarding the usage of environment friendly items – for instance, the fire barriers to protect underground cables. One best way to learn more about them is to see here and take necessary actions during the construction.
Construction management department of the Ministry of Construction or Provincial Department of Construction.
- The Department of the Ministry will issue licenses to projects belonging to group A or projects implemented within an interprovincial area or higher
- The provincial Department will issue licenses to projects in groups B and C and implemented within one province.
The classification of construction projects into groups A, B, C is done according to the project classification issued together with Decree 59/2015/ND-CP.
ABB Law full service
ABB Law is a Vietnam Law firm which more than 10 years experiences.
- Providing advice prior to submitting the dossiers in Vietnam;
- Preparing the required documents;
- Setting up a new company in Vietnam.
- Translating the documents into Vietnamese and then notarizing them;
- Submitting the dossiers in Vietnam. Work with Vietnam authority to ensure that the license shall be issued punctually;
- Guiding clients to complete the required procedures after being issued the license;
- Supporting clients during business operation in Vietnam.