Vietnam: Construction Rules to be Relaxed

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By: Dezan Shira & Associates
Editor: Koushan Das

Vietnam’s Ministry of Construction is going to introduce changes in construction regulations to create favourable conditions for construction and real estate businesses. The Ministry of Construction has proposed a new law to revise the Law on Construction 2014, the Law on Housing 2014, the Law on Real Estate Business 2014, and the Law on Urban Planning 2009. Changes in the laws would streamline and reduce the time-consuming and unnecessary administrative procedures leading to an open business environment.

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Proposed changes

The Ministry of Construction is planning to remove 41.3 percent of the existing construction preconditions and simplifying another 43.7 percent of regulations. Some of the amendments under consideration include reducing the number of subsectors which require practicing certificates and relaxing the requirements on capacity and company size. Other changes proposed include reducing and simplifying procedures for granting construction permits, which has been a major problem for firms in Vietnam.

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The proposed changes will create a favorable climate for the construction and real estate industry and will lead to an increase in much needed foreign investments for infrastructure development. The government is also planning to make changes in the Law on Bidding, the Law on Advertising, and the Law on Investment.

The Ministry is going to propose the changes in construction rules to the Government in March 2018 and bring it into the National Assembly in May and October next year. It is expected to come into effect in early 2019.


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