NOTES ON APPLICATION FOR ISSUANCE OF CONSTRUCTION PERMIT FOR FOREIGN CONTRACTORS

NOTES ON APPLICATION FOR ISSUANCE OF CONSTRUCTION PERMIT FOR FOREIGN CONTRACTORS

Unlike domestic contractors, foreign contractors must be granted a construction permit after winning the bid. In order to create supportive conditions for contractors implementing projects in Vietnam, the government has amended, supplemented and promulgated suitable regulations. However, for foreign contractors, the order and procedures as well as the preparation of documents may run into difficulties and obstacles due to language barriers and legal knowledge. Therefore, in this article, HTC law firm will provide consulting service on procedures for granting building permit for foreign contractors

1. Interpretation for a “foreign contractor”

A “Foreign contractor” means a foreign organization or individual that is legally capacitated and the individual must also have civil legal capacity to conclude and execute the contract. A foreign contractor’s legal capacity and civil capacity shall be determined according to the law of its country of nationality.

The foreign contractor may be a general contractor, main contractor, joint venture contractor or sub-contractor.

2. Conditions for granting building permit with foreign contractors

Foreign contractors must meet these conditions in order to be granted construction permit:

- A foreign contractor will be granted the construction operating license if it has been awarded the contract by the investor/contractor (subcontractor).

- The foreign contractor must set up a joint venture with a Vietnamese contractor or employ Vietnamese sub-contractors, unless the Vietnamese contractor is ineligible to execute any tasks of the contract package. Upon the joint venture or employment of Vietnamese contractors, it is required to clarify contents, quantity and value of tasks performed by Vietnamese contractors in the joint venture or Vietnamese sub-contractors.

- The foreign contractor must commit to comply with regulations of Vietnamese law on contract execution in Vietnam.

3. Procedures for application for issuance of construction permit for foreign contractors

Step 1: preparing documents prescribed by law

- An application form for construction operating license

- A certified copy of the report on bid results or the decision on lawful contract award

- A copy of the establishment license or the business registration certificate for the organization (with consular legalized) or the certificate of profession of the foreign contractor

- A report on experience in contract execution and certified true copy or e-copy of a report on finance auditing within 3 (three) latest years (for the case not in accordance with procurement law);

- A certified copy or e-copy of a joint-venture contract with the Vietnamese contractor or an official contract or a principal contract with the Vietnamese sub-contractor to carry out the contract (available in the bid)

- A lawful power of attorney held by the person who is not the legal representative of the contractor;

NOTES: All of the documents must be translated into Vietnamese, notarized and certified.

Step 2: Issuing documents from competent agencies

Competent agencies: with A - group projects, construction projects located in at least two provinces: Construction authorities affiliated to the Ministry of Construction

With B - group, C - group: Departments of Construction

Within 05 working days, the dossier-receiving agency will consider and request supplementation and correction if the dossier is incomplete or unsuitable; and give written instructions

Step 3: Competent agencies to receive dossiers and notify of results.

Provided that documents are complete and valid, foreign contractors will receive the result within 20 days from the date on which the sufficient application is received. If the application is rejected, the issuing agency must provide explanation in writing for the contractor.

Legal services HTC VN Law Firm provides related to consulting procedures for granting building permits to foreign contractors:

- Consultation on matters related to the procedures for granting construction permits to foreign contractors;

- Consultation on conditions for construction permits to foreign contractors

- Consultation on compiling and completing relevant documents to grant construction permits to foreign contractors;

- Provide legal services related to: procedures for applying for work permits for foreign workers in Vietnam, procedures for granting temporary residence cards for foreign workers, …

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Vũ Ngọc Quỳnh/176; Date: 24/12/2021

Translator: Vu Ngoc Anh)