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Dealing with Construction Permits in

Vietnam

Below is a detailed summary of the procedures, time and costs to build a warehouse in Vietnam. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Vietnam to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain the certification of the designs from the Police Department for Fire Fighting and Fire Prevention of Ho Chi Minh City

    Agency: Police Department for Fire Fighting and Fire Prevention of Ho Chi Minh City

    According to Decree 79/2014/ND-CP dated 31 July 2014 of the Government and Decree No. 46/2012/ND-CP dated 05/22/2012 of the Government on amending and supplementing some provisions of the government's Decree 79/2014/ND-CP dated 31 July 2014 implementing certain articles of the Law on Fire Prevention and Fire Fighting and the Government's Decree No. 130/2006/ND-CP dated 08/11/2006 on the compulsory fire and explosion insurance regime, all new commercial buildings must obtain a certification of their designs by the Police Department for Fire Fighting and Fire Prevention. The certification is required for the construction permit application.
    According to Circular 150/2014/TT-BTC dated 10 October 2014 on rates, collection, payment, management and use of fees for appraisal of fire safety designs the applicable fee for this procedure is as follows: 0.11401%*warehouse value.

    30 days VND 2,458,595
    2

    Request and obtain construction permit from the (District) Department of Construction of Ho Chi Minh City

    Agency: Department of Construction of Ho Chi Minh City (Municipality)

    The decision to grant a construction permit is made by the District People's Committee, at the provincial level, and the Construction Office. The following documents are required:
    a) Application for issuance of building permit (standard form)
    b) Notarized or certified copy of one of the papers on the land use right in accordance with the Law on Land. Land is national property in Vietnam. Only a business can be the holder of the land-use right. It is assumed that the BuildCo already holds the land-use certificate.
    c) Two sets of design drawings, each of which includes:
    - Drawing of the works position on the land lot with a scale of 1/100 - 1/500, together with the outline of works position;
    - Drawing of surface, main elevation and section of the works with a scale of 1/50 - 1/200;
    - Drawing of foundation with a scale of 1/100 - 1/200 and foundation section of 1/50, together with the connection diagram to the system of transportation infrastructure, water supply, wastewater and rainwater drainage, wastewater treatment, electricity supply, communications and other technical infrastructure related to the project with a scale of 1/50 - 1/200.

    If deemed necessary, the Construction Office consults any of the following related offices:
    • Office of the Chief Architect
    • Office for Land Planning
    • Office for Land Management
    • Department of Culture
    • Department of Health
    • Department of Natural Resources and Environment
    • Fire Protection Office
    • Department of Public Traffic and Transportation
    • Local National Defense Office

    Under Law on Construction No. 50/2014/QH13 of the Government dated 18 June 2014, The Department of Construction has 30 working days from the date of receiving the completed file to issue or deny the construction permit. In practice, this time limit is seldom met. The application form can be obtained at the local department of construction. It is currently required for a construction company to go to the office and obtain the form. After obtaining a construction permit, within a time limit of 7 working days prior to the date of commencement of construction of the warehouse, BuildCo is required to provide written notification of the commencement date to the People's Committee at the district level where the warehouse is located (according to Article 106.2.c of the Law on Construction No. 50/2014/QH13, dated 18 June 2014).

    82 days VND 100,000
    3

    Notify the Department of Construction about the commencement of construction and receive inspection

    Agency: Department of Construction of Ho Chi Minh City (Municipality)

    This inspection and the following ones are not stipulated by specific regulations. However, because the authority is mandated to supervise the construction, these do take place in practice.

    1 day no charge
    4

    Request and receive inspection from the municipality after completion of foundation works

    Agency: Department of Construction of Ho Chi Minh City (Municipality)

    This inspection and the following ones are not stipulated by specific regulations. However, because the authority is mandated to supervise the construction, these do take place in practice.

    3 days no charge
    5

    Request and receive inspection from the municipality upon completion of building surroundings

    Agency: Department of Construction of Ho Chi Minh City (Municipality)

    This inspection and the following ones are not stipulated by specific regulations. However, because the authority is mandated to supervise the construction, these do take place in practice.

    3 days no charge
    6

    Request water and sewage connection

    Agency: Ho Chi Minh City Water Supply Company

    Different areas in Ho Chi Minh City are covered by different public water companies. Therefore, BuildCo is required to contact the relevant water company and submit the following documents:
    • The application form (available at the water company)
    • A notarized copy of the business registration certificate of BuildCo
    • A certified copy of the land use right certificate or the construction permit

    The costs of obtaining water/sewage connection depend on the usage capacity of the warehouse, as well as on its exact location in relation to the main water lines. The standard water meters cost approximately VND 1.5 million.

    1 day VND 4,000,000
    7

    Receive inspection by water company

    Agency: Ho Chi Minh City Water Supply Company

    1 day no charge
    8

    Connect to water and sewage services

    Agency: Ho Chi Minh City Water Supply Company

    14 days no charge
    9

    Notify and receive inspection from the municipality after completion of building

    Agency: Department of Construction of Ho Chi Minh City (Municipality)

    At the end of construction, the Department of Construction visits the site to confirm that the building was built according to the master plans, rules, and regulations. BuildCo must provide written notification of the completion of construction.

    1 day no charge
    10

    Register the building at the Department of National Resources and Environment

    Agency: Department of National Resources and Environment

    The cost for registering ownership of the warehouse should include an administrative fee of VND 350,000.00 (based on Decision 98/2009/QD-UBND of the People's Committee of Ho Chi Minh City of 22 December 2009) and a registration fee of 0.5% of the warehouse value (based on Decree 45/2011/ND-CP of the Government dated 17 June 2011). For the registration fee, the value of the construction contract signed between BuildCo and the construction contractor will be taken as the warehouse value, provided that it is higher than the minimum value calculated by the Tax Department based on the minimum unit price as provided for by the People’s Committee of Ho Chi Minh City.

    The application file should be submitted to the Department of Natural Resources and Environment of Ho Chi Minh City.According to Article 61 of Decree 43/2014/ND-CP (dated 15 May 2014), providing details on the Law on Land, the time for issuance of the certificate of ownership of construction work shall not exceed 30 days. The work carried out by the Department of Construction includes the time for taking measurements or checking the measurements of the construction works, if any; reviewing the application file; submitting the file for approval and signature; and notifying the applicant to make payment of financial obligations (e.g., payment of the registration fee at Tax Department). Decree 88 also states that the applicant must pay all financial obligations within 60 working days from the date of receipt of the notification from the Department of Construction.

    30 days VND 11,132,366

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Unscheduled inspections. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certification exam. 2.0