After a period of slowdown, the real estate market of Vietnam is gradually operating again in a more positive and vibrant way. The change of legal regulations such as Bidding Law, Construction Law, Investment Law has created conditions for foreign investors to participate in Vietnam construction projects. Foreign contractors may participate as a main contractor, joint venture contractor or subcontractor. The only requirement is to comply with construction operating license procedures for foreign contractors in accordance with Vietnamese law.

From August 15, 2016, foreign contractors can only build Vietnamese construction after being granted construction operating license by Vietnamese competent state agencies. In order to be granted this license, foreign contractors must also meet certain conditions during the implementation of construction projects in Vietnam.

1. Conditions to obtain construction operating license  in Vietnam 

Under Vietnam Law, in order to obtain a contractor permit, you must satisfy the following conditions:

• Having won biddings or having been selected for contracting;
• Having signed contract;
• Having full capacity suitable to contracted works according to Vietnamese law provisions; and
• Committing to enter into an association contract with local partner(s), for carrying out the winning project.

2. Applying for a construction permits

a. Dossier 

The application file for construction operating license for foreign contractors has two cases: an application for a construction operating license for a foreign contractor and the application for construction operating license for foreign contractors is individual.

Records for foreign contractors are organizations

The application is made in accordance with Article 4 of Circular 14/2016 / TT-BXD, including the following documents:

• Application for construction operating license
• Copies of bidding results or decisions on the selection of contractors or contractor-accepting contracts
• Copy of the contractor business registration certificate
• Report of construction activity experience related to contracting work, declaration according to the form
• A copy of the partnership contract with a Vietnamese contractor or a Vietnamese subcontractor contract, which clearly identifies the part of the work performed by Vietnamese contractors.

Applications for foreign contractors are personal

The application includes the following documents:

• Application for operation license;
• A copy of the bidding result or the decision to select a contractor or contractor contract;
• Copy of passport and copy of individual license or practice certificate.

The entire application file must be expressed in Vietnamese, for operating licenses and practice certificates issued by foreign competent agencies, it must be consular legalized. Remaining documents in other foreign languages ​​must be translated into Vietnamese and notarized and authenticated.

b. Time to apply for a license

Applications for construction operating licenses for foreign contractors will be processed within 20-25 business days from the date of receipt of the valid documents of the contractor.

c. Place to submit

Depending on the grade/scale of the project, competent authorities are classified into two categories:

• For Group A projects, construction investment projects in 2 or more provinces: Specialized agencies under the Ministry of Construction;
• For Group B and C projects: Department of Construction.

The competent agency will grant a permit within 30 days after receiving a complete application.  In the case of separate houses, it will take 15 working days. Keep in mind that project construction must begin within 12 months of receiving the license.

3. Service of obtaining construction operation licenses for foreign contractors

• Counseling on the conditions for being granted a license to build foreign contractors in Vietnam;
• Consulting, drafting joint venture contract between foreign contractors and Vietnamese contractors;
• Counseling on the procedures to apply for a foreign contractor construction license in Vietnam;
• Advisory customers on prepare documents in accordance with the law of Vietnam relating to the issuance of licenses to build foreign contractors in Vietnam;
• Translate, notarized, consular legal documents serving the issuance of construction license for foreign contractor construction in Vietnam;

Whether you are already investing in Vietnam or want to expand your operations here, the country offers profitable opportunities in its construction industry. Hue Tran Law Firm is always ready to accompany, support procedures for applying for construction permits for domestic and foreign entrepreneurs. Hue Tran Law Firm is a reliable law firm with broad experience in this expertise, we believe to provide the client with a smooth process to obtain construction operating license in the shortest time.