The foreign contractors
are only permitted to carry out construction activities in Vietnam so long as
being granted construction operation license by Ministry of Construction as per
the Construction Law.
EPC Contractors have
increasingly been interested to learn the requirements of licenses and permits
to operate in Vietnam. It is advised that the construction law firm in Vietnam
with lawyers specializing in construction area to assist the foreign
contractors to understand the legal frameworks, and requirements of foreign
contractors before and after taking on construction projects in Vietnam after
bidding result.
The regulations and
procedures are promulgated in Decree No. 59/2015/NĐ-CP on management of construction investment
projects and Circular No.14/2016/TT-BXD guiding on licensing
construction activities and management of foreign construction contractors in
Vietnam.
Investment in
construction activities has been growingly rapidly. In order to meet the tender
conditions and take part in construction activities in Vietnam, foreign
contractors shall follow the regulations in Vietnam and obtain proper license
during the preparation and the execution of the construction of the project.
Prior to construction
operation license, foreign constructors have experienced another form of permit
named contractor’s permits for foreign contractors in Vietnam. These are two
concepts however the process of registration and document requirements are not
so different.
There has been an effort
to harmonize and reduce differences and conflicts arisen in many fields of laws
regulating the mentioned subject and the new provisions of the Law on Bidding,
Construction Law and the Investment Law to be issued in 2014 which establish a
stable legal framework for the implementation of foreign contractor’s bidding
and construction activities in Vietnam. This changes does not
differentiate which position the foreign contractors are appointed from the
lead contractor, the main contractor, contractor to subcontractor consortium.
Unlike domestic contractors, foreign contractors must be granted construction
operation license for each awarded contract. The amendment from the
contractor’s permits for foreign contractor contribute to the unity of the same
concept in different legal instruments regulating the license procedure of
foreign contractors operating within the territory of Vietnam, and limit the
unnecessary overlaps, difficulties to law interpretation and application of
legal entities.
We shouldn’t forget to
mention that the amendment of the foreign contractor’s construction operation
license is to increase the relevance between the name and nature of the
licensed activities of foreign contractors in construction operation. One of
the initial conditions to a foreign contractor to be licensed is when the
contractor has won a bid or been selected to be sub-contractor of an investment
project. Therefore, the terms construction operation license shall demonstrate the role
of the contractor in the construction projects they have been participated in.
The new construction
operation license for foreign contractor is expected to be easier to relate to
when foreign contractor take part in construction project in Vietnam.
This would attract more foreign contractors to undertake construction projects
in Vietnam to bring in the technology equipment, as well as the management
skills to Vietnam.
ANT Lawyers has law
offices in Hanoi, Ho Chi Minh,
and Da Nang City.
For advice or service request, please contact us via email ant@antlawyers.vn,
or call +84 8 3520 2779. To learn
more about us, visit www.antlawyers.vn.
or call +84 8 3520 2779. To learn
more about us, visit www.antlawyers.vn.
Source: ANTLawyers.vn
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