Issuance of construction operation permits for foreign contractors

Illustration photo

Question: What are the procedures for foreign contractors to get construction operation permits and practicing certificate for construction operation?

Answer:

The Government on June 18, 2015 issued Decree No. 59/2015/ND-CP (Decree No. 59) on management of construction investment projects.

Under this Decree, foreign contractor must satisfy the following conditions to get construction operation:

1. Foreign contractors engage in the following construction activities: formulation of a construction master plan; formulation and evaluation of an investment project for construction works; management of the investment project for construction works; management of a construction investment cost regarding the construction investment project funded by capital from the State’s budget; a construction survey must conduct information disclosure on the Portals of the Ministry of Construction and the Department of Construction pursuant to the delegation of power.

2. In case the tender packages fall under objects which are required to apply regulations on the tendering of Viet Nam, the foreign contractor must ensure that it has obtained a bid award or has been selected as a contractor.

3. In case the tender packages fall under objects which are not required to apply regulations on the tendering of Viet Nam, the foreign contractor shall be issued the permit if it satisfies the conditions on capacity suitable to the contracted work as stipulated by law and it has obtained a bid award or selected as a contractor of the investor.

4. A foreign contractor must partner with a Vietnamese contractor or engage with a Vietnamese sub-contractor, unless domestic contractors lack capacity to engage with any work of the tender package.

Under Decree 59, a practicing certificate for construction activities shall be issued to an individual who is a Vietnamese citizen, Vietnamese residing overseas, foreigner lawfully engaging in construction activities in Viet Nam to undertake positions, engaging in work for positions or independent practice, such as labor safety; a director of project management, an individual directly engaging in project management; a chief designer of a construction master plan; a manager of a construction survey, a chief designer, or design manager.

Foreign individuals or a Vietnamese person residing overseas who have already been granted a practicing certificate by a foreign authority or organization shall be recognized in their practice in case they engage in professional practice relating to construction activities in Viet Nam for less than six months.

In case the individuals engage in professional practice relating to construction activities in Viet Nam for six months or more, conversion of a practicing certificate for construction operation at the Ministry of Construction shall be required./.