Question

Are foreign contractors required to establish Executive office to conduct construction of works in Vietnam ? Law office in Danang, Vietnam advise about how to notify the Executive office of the foreign contractor in Vietnam ?

Answer

Executive office of foreign contractor in Vietnam ?

Construction license and Executive office of foreign contractor in Vietnam:

Contractors being foreign organizations and individuals conducting construction activities in Vietnam shall comply with the law on bidding and must possess operation licenses granted by state management agencies in charge of construction (Clause 2 Article 148 Law on Construction No. 50/2014/QH13 dated June 18, 2014).

Construction operation license is a license issued by competent state management agencies of Vietnam, granted to foreign contractors for each contract after obtaining the bid-winning results in accordance with Vietnam’s law (Clause 8 Article 2 Decree No. 59/2015/NĐ-CP dated June 18, 2015).

After receiving the construction license, the foreign contractor shall establish an Executive office at the place where the project is conducted and register the name, phone number, fax number, e-mail address, seal, bank account and tax code of the Executive office. Regarding contracts pertaining to the formulation of construction planning, formulation of construction investment project, construction survey or construction design, the foreign contractor may establish an Executive office at the place where the headquarter of the project owner is located. 

Regarding contracts pertaining to the construction and supervision of construction of work involving multiple provinces, the foreign contractor may establish the Executive office in an area where a part of the work is located (Clause 1 Article 9 Circular No. 14/2016/TT-BXD dated June 30, 2016).

After registering information about the Executive office, the foreign contractor shall send a written notification directly or by post to the Department of Construction of the area where the Executive office is located, the construction authority affiliated to the Ministry of Construction and relevant agencies using the form in Annex 11 of this Circular. If any information about the Executive office is modified, the foreign contractor shall notify such agencies (Clause 2 Article 9 Circular No. 14/2016/TT-BXD dated June 30, 2016)./.

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DMS Law firm in Vietnam
Director
(Signed)
Lawyer Do Minh Son

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Law on Construction in Vietnam No. 50/2014/QH13 dated June 18, 2014 took effect on January 01, 2015 (replaced the Law on Construction No. 16/2003/QH11 dated November 26, 2003, Law No. 38/2009/QH12 dated November 13, 2009).

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