Dealing with Construction Permits in
Vietnam
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page 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 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
VND 3,515,000,000
- City: Ho Chi Minh City
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain construction permit from the (District) Department of Construction of Ho Chi Minh City
The decision to grant a construction permit is made by the Chairman of the People’s Committee, at the provincial level, and the Director of the Department of Construction. The following documents are required:
- Application letter (in the approved form).
- A copy of the land use rights certificate with abstracts from the real estate registry or an outline of the construction site. Land is national property in Vietnam. Only a business could be the holder of the land-use right. It is assumed that the BuildCo already holds the land-use certificate.
- Business license.
- One set of construction designs.
If deemed necessary, the Department of Construction 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.
Each consultation separately takes 10 days. However, the Department of Construction is required to abide by the overall time limit of 30 working days to issue or refuse the license. 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. Internet download is not possible yet. 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. (See Article 68.2 (a) of the Law on Construction No. 16/2003/QH11, dated November 16, 2003.)
Agency: Department of Construction of Ho Chi Minh City (Municipality)
|
90 days
|
VND 100,000
|
| 2 |
Receive inspection by the Department of Construction of Ho Chi Minh City
This inspection and the following ones are not stipulated by specific regulations. However, because the authority is mandated to supervise the inspections, these do take place in practice.
Agency: Department of Construction of Ho Chi Minh City (Municipality)
|
1 day
|
no charge
|
| 3 |
Receive inspection from the municipality after completion of foundation works
The company must notify the Department of Construction at the different stages of construction and suspend construction until the department visits the site 3 days after the notification.
Agency: Department of Construction of Ho Chi Minh City (Municipality)
|
1 day
|
no charge
|
| 4 |
Receive inspection from the municipality at completion of building surroundings
The company must notify the Department of Construction at the different stages of construction and suspend construction until the department visits the site a week after the notification.
Agency: Department of Construction of Ho Chi Minh City (Municipality)
|
1 day
|
no charge
|
| 5 |
Request water and sewage connection
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.
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.
Agency: Ho Chi Minh City Water Supply Company
|
1 day
|
VND 4,000,000
|
| * 6 |
Receive inspection by water company
Agency: Ho Chi Minh City Water Supply Company
|
1 day
|
no charge
|
| * 7 |
Connect to water and sewage services
Agency: Ho Chi Minh City Water Supply Company
|
14 days
|
no charge
|
| * 8 |
Request and connect to phone line
The time frame for requesting and receiving telephone service depends on the district in which BuildCo is located.
The cost varies between VND 545,454 and VND 727,272 (decided by the director of each provincial post office).
(see http://www.vnpt.com.vn)
Agency: VNPT Group
|
7 days
|
VND 800,000
|
| 9 |
Notify and receive inspection from the municipality after completion of building
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.
Agency: Department of Construction of Ho Chi Minh City (Municipality)
|
1 day
|
no charge
|
| 10 |
Register the building at the Department of Construction of Ho Chi Minh City
The cost for registering ownership of the warehouse should include an administrative fee of VND 500,000 (about USD 31.25) and a registration fee of 1% of the warehouse value. 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 Construction of Ho Chi Minh City. According to Decree 95/2005/ND-CP (dated July 15, 2005), On Issuance of Certificates of Ownership of Residential Houses and Construction Works, the work carried out by the Department of Construction may take 55 working days, including 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 95/2005/ND-CP 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.
Agency: Department of Construction of Ho Chi Minh City
|
90 days
|
VND 17,825,000
|
* Takes place simultaneously with another procedure.