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Official Gazette

Monday, February 24, 2020

Guidelines for the Construction Law to be shortly issued

Updated: 10:55’ - 11/11/2014

The Ministry of Construction is working on six draft decrees guiding the Construction Law, which will come into force from January 1 next year.

These decrees govern construction planning, management of construction investment projects, management of construction work quality, management of construction costs, construction contracts, and handling of violations in construction activities.


Apartment buildings in Tran Duy Hung street, Hanoi__Photo: Hoang Lam/VNA


In order to handle violations in construction activities, which have become more rampant, especially in major cities, the decree on handling of violations of construction regulations introduces a mechanism of permit-based management, specifying construction works exempted from construction permits, publicizes and simplifies the order and procedures for grant of construction permits and further clarifies regulations on definite-term construction permits and permits for construction of houses in rural areas, etc.

According to the Deputy Chief Construction Inspector Ngo Thanh Quang, in addition to ordinary remedies such as termination of construction activities, forcible dismantlement of violating works and forcible payment of compensations for possible damage caused by their violations, project owners, construction contractors, design consultancy and construction supervision contractors would be named on a blacklist posted on the Construction Ministry’s website and published in the mass media.  

“That is not enough!” said Tran Chung from the Vietnam Federation of Civil Engineering Associations. He suggested the draft decree be added with a provision suspending the operation and use of works if their owners fail to comply with maintenance requirements.

“Such regulation would help improve project owners’ responsibility in maintaining construction works, especially high-rise residential buildings in urban centers,” he added.

With a view to better controlling state budget-funded construction projects, the draft decree on management of construction investment projects requires investors or owners of such projects to keep a close watch on foreign contractors’ performance of joint-venture agreements with Vietnamese contractors or hire of Vietnamese subcontractors. Project owners or investors would have to carefully consider the possibility of purchasing or hiring construction equipment from domestic suppliers before approving foreign contractors’ request for temporary import of construction equipment to serve construction activities, and find Vietnamese technical workers before agreeing with foreign contractors on employment of foreign workers.

The draft decree on construction contracts says that the maximum fine for breaching a contract on construction of a state budget-funded work must not exceed 12 percent of the value of the contract’s breached part.

The drafts are available on the Ministry of Construction’s website


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