Apply for Construction Operation Permits in Vietnam: Navigating the Legal Framework

In the realm of Vietnam’s construction industry, the importance of legal compliance cannot be overstated—especially when it concerns foreign contractors eager to capitalize on the burgeoning market.

The linchpin of legality in this sector is the Construction Operation Permit. This document stands as a testament to the contractor’s adherence to Vietnamese laws and regulations, ensuring that their operations proceed without a hitch.

To apply for construction operation permits is to navigate a legal labyrinth that, while complex, is structured to foster a secure, transparent, and efficient business environment.

Applying for Construction Operation Permits

Vietnam’s approach to regulating foreign contractors is systematic and governed by the Law on Construction and its decrees giving guidance. When contractors apply for construction operation permits, they are engaging with a system designed to uphold both local and international construction standards.

The decree outlines the necessary conditions, documentation, and procedural timelines that must be adhered to. For those seeking to apply for construction operation permits, it is paramount to understand that this permit is more than a document- it’s a prerequisite for legitimacy in the Vietnamese construction landscape.

Key Conditions When Applying for Construction Operation Permits

The primary condition to apply for construction operation permits is winning a bid or being selected by an investor or main contractor.

This step underscores Vietnam’s commitment to a merit-based and competitive bidding environment.

In addition, foreign contractors are typically required to partner with Vietnamese contractors, unless it is established that no local contractors have the capacity to participate. This regulation, encountered during the process to apply for construction operation permits, not only ensures knowledge transfer but also fortifies domestic capabilities.

The Dossier: A Critical Component to Apply for Construction Operation Permits in Vietnam

The dossier submitted when contractors apply for construction operation permits must be comprehensive. It includes a formal application, authenticated copies of bidding results, business registration certificates, and professional certificates of the contractor’s origin country, among other documents.

Application Dossier and Authority for Issuance of Construction Operation Permit

Foreign contractors must directly submit or send via postal mail one set of application documents to the agency issuing the construction operation permit, including:

a) An application for the construction operation permit according to Form;
b) A certified copy or electronic copy of the bidding results or a lawful selection decision;
c) A certified copy or electronic copy of the establishment license or Business Registration Certificate for the organization and practicing certificate (if any) issued by the country of the foreign contractor’s nationality;
d) A report form on operational experience related to bidding work and a certified copy or electronic copy of the consolidated financial audit report for the most recent three years (for cases not conducted according to the bidding laws);
e) A certified copy or electronic copy of the consortium agreement with the Vietnamese contractor or the official contract or principle contract with the Vietnamese subcontractor for carrying out the bidding work (already included in the bid dossier or tender dossier);
f) A lawful power of attorney for the person who is not the legal representative of the contractor;
g) A certified copy or electronic copy of the project approval decision or investment decision or investment certificate of the project/work.

As stipulated, all foreign documents must be translated into Vietnamese and certified, reflecting the meticulous attention to detail that is required to apply for construction operation permits.

Authority and Timelines in the Permit Application Process

When contractors apply for construction operation permits, the dossier is reviewed by the appropriate Vietnamese authority—the specialized construction agency under the Ministry of Construction for national projects, or the Department of Construction for local projects. The review period, as stipulated when one applies for construction operation permits, is 20 days from the dossier submission, showcasing the country’s commitment to expediency.  However, sometime, in practice, it would take longer for many reasons.

Applying for Construction Operation Permits: Legal Obligations and Nuances

Applying for construction operation permits requires a profound understanding of legal obligations. The application must be in Vietnamese, and any foreign business registration certificate must be consular legalized, unless exempt under international treaties. These nuances in the process to apply for construction operation permits highlight the balance Vietnam strives for—honoring international agreements while maintaining sovereign legal standards.

The Fee: Final Step to Apply for Construction Operation Permits

After the successful review, to apply for construction operation permits reaches its culmination with the payment of a fee determined by the Ministry of Finance. This final step in the journey to apply for construction operation permits solidifies the contractor’s fiscal responsibility and completes the legal formalities.

The Validity of Construction Operation Permits in Vietnam

The validity of the permit is another critical aspect for those looking to apply for construction operation permits. It remains effective until the completion and settlement of the construction contract or if the foreign contractor faces suspension, dissolution, or bankruptcy. Understanding these conditions is crucial for anyone seeking to apply for construction operation permits.

Implications for Foreign Contractors

For foreign entities, the process to apply for construction operation permits is a gateway to participating in Vietnam’s development. However, it requires a detailed comprehension of the legal framework and an appreciation for the nuances of the country’s regulatory environment.

The Role of Legal Services in Vietnam in License Application

Legal services play an indispensable role in assisting foreign contractors to apply for construction operation permits. From ensuring proper documentation to advising on compliance, these services ensure a streamlined application process. As foreign contractors frequently engage legal experts when they apply for construction operation permits, it’s evident that the complexity of legal and bureaucratic landscapes is best navigated with professional assistance.

The process to apply for construction operation permits in Vietnam is emblematic of the country’s legal rigidity and openness to foreign investment. While the process is comprehensive, it’s designed to ensure that only qualified, compliant, and responsible foreign contractors participate in Vietnam’s construction sector. Applying for construction operation permits is a testament to the contractor’s commitment to quality, safety, and legal compliance, aligning with Vietnam’s vision for a sustainable and internationally respected construction industry.

About ANT Lawyers, a law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.