In an effort to provide practical certainties for issues under the current Construction Law and to streamline procedures for construction operations, the National Assembly of Vietnam has approved Law No.62/2020/QH14 (the “Revised Construction Law”) on the amendments and supplements to the current Construction Law. The Revised Construction Law takes effect on 1 January 2021 and introduces the following key highlights/ changes:
|No.||Current Construction Law||Revised Construction Law|
|1.||–||New instances are added where construction permit is exempted:
|2.||Contractors for execution of buildings works are encouraged (but not obligated) to obtain the insurance in respect of civil liability to third parties.||Contractors for execution of buildings works must obtain a new mandatory insurance in respect of civil liability to third parties.|
|3.||The timing for competent authority to review application dossier and issue construction permit:30 days upon the receipt of valid dossier.||The timing for competent authority to review application dossier and issue construction permit:20 days upon the receipt of valid dossier.|
|4.||The requirement of sufficient allocation of funds as a condition for commencement of construction work.||This requirement is removed.|
|5.||The project developer must prepare a preliminary feasibility report prior to preparation of a feasibility study report for projects of national importance and group A projects.||The project developer must prepare the preliminary feasibility study report for the following projects prior to preparation of a feasibility study report:
Note: The Revised Construction Law adds the preliminary environmental impact assessment as a new item in the preliminary feasibility report.
|6.||Design for construction comprises:
There is no provision in respect of Front-End Engineering Design (“FEED Design”) in the Current Construction Law.
|Design for construction comprises:
The Revised Construction Law (a) expressly categorised FEED Design as a design for construction; and (b) clarified that FEED Design is a construction design formulated after the preliminary design.
Do note that the following legal issue remains not addressed by the Revised Construction Law:
This alert is for general information only and is not a substitute for legal advice.