Question

Answer

What is the license required to conduct construction activities 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 Operating License (Construction Permit) in Vietnam:

Construction operating license means a license issued to the foreign contractor winning a contract by Vietnamese competent agencies as prescribed in regulations of law (Clause 8 Article 2 Decree No. 59/2015/NĐ-CP dated June 18, 2015).

The foreign contractor is only permitted to carry out construction activities in Vietnam after receiving construction operating license issued by state agency in charge of construction.

The operation of the foreign contractor in Vietnam must comply with Vietnamese law and related international treaties concluded or acceded by Vietnam  (Clauses 1, 2 Article 70 Decree No. 59/2015/NĐ-CP dated June 18, 2015).

Requirements for issuance of the Construction Operating License in Vietnam: 

The foreign contractor involved in construction activities prescribed in Clause 3 Article 69 of this Decree must post information on the website of the Ministry of Construction and Service of Construction in charge.

If bidding packages subject to regulations of law on bidding of Vietnam, the foreign contractor must ensure that it is awarded the contract. 

If bidding packages not subject to regulations of law on bidding of Vietnam, the foreign contractor must satisfy the following conditions:

- It is awarded the contract by the investor;

-  It is qualified to execute the contract as prescribed in law on construction.

The foreign contractor must set up a joint venture with a Vietnamese contractor or employ Vietnamese sub-contractors, unless the Vietnamese contractor is not qualified to execute any tasks of the bidding package. Upon the joint venture or employment of Vietnamese contractor, it is required to clarify contents, quantity and value of tasks performed by Vietnamese contractor in the joint venture or Vietnamese sub-contractors.

The foreign contractor must commit to comply with regulations of Vietnamese law on contract execution in Vietnam (Article 71 Decree No. 59/2015/NĐ-CP dated June 18, 2015).

Executive office of foreign contractor in Vietnam:

Executive office means an office of the foreign contractor that is registered to operate in the locality where the constructions works are located after the construction operating license is received. The executive office shall only operate within the term of contract and it shall be dissolved when the contract expires (Clause 13 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, address, phone number, fax number, e-mail address, seal, bank account and tax code (TIN) 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 office of the project owner is headquartered.

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)./.

Contact us:

Phone: 0914 165 703 

Email: dmslawfirm@gmail.com

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