Construction

ANT Lawyers’ construction industry practice has the expertise in the field of construction laws. Precisely because of the rapid development of Vietnam’s infrastructure, legal grounds for constructions and buildings are subjected to many amendments and alterations that aim to keep up with this emerging branch of industry.  More and more foreign, domestic businesses and individuals take part in this emerging construction industry which in turn cause a growing demand for more commercial and residential buildings in Vietnam.  However, the laws covering all aspects of construction in Vietnam are complex and fast changing.  That’s where ANT Lawyers can provide advice for investors and developer whom wish to operate in the field of construction in Vietnam.   In Vietnam, the Construction sector includes all types of work and mostly civil engineering.  Construction is defined as public construction works, residential housing, industrial works, traffic works, irrigation systems, energy works and some others.  Construction laws are part of property law in Vietnam.  The construction sector in Vietnam is strictly regulated and especially for foreigners it is often difficult to deal with construction Laws firm  in Vietnam.  The major legal ground for all activities connected with construction is the Law on Construction 2003 of Vietnam issued by the Ministry of Construction.  This Ministry is also the responsible agency for all concerns connected with construction and has main functions like the state management on constructions; architecture; economic zones or building materials. There are numerous further agencies with legal status that support the Ministry depending on specific topics like e.g. technical infrastructure, real estate market, planning and finance, just to name a few. The Construction Law effective since 2004 provides general provisions on construction business but also guides on investment projects in the construction industry.  It is applicable to domestic, foreign organizations and individuals that invest in construction of works and engage in construction activities in Vietnam.  First of all, it is important to know the situation in Vietnam concerning land law and construction rights on land.   In Vietnam, no matter of the purpose, land cannot be owned by anyone because the Vietnamese state administers the land for the people and with that it only leases pieces of land to applicants.  If one is granted for a Land Use Rights Certificate he/she has the control over the land and is entitled to rights to the land.  Related to this entitlements are also the investment projects of foreigners who need land to carry out their construction projects in Vietnam.  For this purpose, one can lease land from the state or a private Vietnamese entity (person).   If foreigners wish to build factories in industrial zones they may sub-/lease land from the industrial zone developer.  Even though when the foreigner’s name does not but the lessor’s name does stand on the Land Use Rights Certificate he/she can get a certificate of a construction work ownership for the work that was build and paid as part of the performance of the investment project in Vietnam.  Article 35 of the Law on Construction 2003, prescribes several requirements on construction work investment projects.  For example it is important to ensure the socio-economic efficiency of the construction project; before formulating large sized construction works, the investors have to compile and submit reports therefore to the competent authorities for investment licenses.  Further requirements are stated in Article 36 whereby construction investment projects must have an appropriate design and technology plan and safety must be assured during the construction process. Construction plans that have already been approved can be adjusted in following cases: natural calamities, enemy sabotage or force majeure.  If there appear factors which might bring out higher efficiency to the project, construction plans can be changed.  If the investors fulfill all required conditions, of course they have various rights in the formulation of work construction investment.  They can negotiate, sign and supervise the performance of contracts connected with the construction. There are also several amendments on the Construction law. Decree 48/2010/ND-CP applies to all individuals and organizations involved in construction contracts that have 30% or more state funding and provides noticeable provisions on the legal duty to inform about defaults or on the time limit for arbitration in cases of dispute. Circular No.10/2012/TT-BXD guides Decree No.64/2012 ND-CP regarding construction licenses whereby the Circular provides application conditions and necessary documents and names five types of licenses for construction businesses. Decree No.15/2013/ND-CP provided guidelines on quality management of constructions and on types of construction. These legal amendments and new guidelines are an example for the fast changing legal grounds of Construction law in Vietnam. For foreign investors and even for Vietnamese, it might be very important to understand this laws to ensure a trouble-free realization of the commercial or private projects connected with constructions in Vietnam.   ANT Lawyers have the local expertise and know-how to provide our clients with the best information and support in this field.  ANT Lawyers, your lawyers in Vietnam.