LAND LAW

A. GENERAL REGULATIONS

1. Conditions for land allocation, land lease, land use purpose transfer in order to execute investment projects [Clause 3, Article 58, the Land Law No. 45 on November 29th, 2013 (The Land Law No. 45), and the article 14 Decree No. 43/2014/NĐ-CP on May 15th, 2014 (The Decree No. 43)]

Those who are assigned land, leased land, allowed to change land use purposes by the State in order to execute investment projects shall satisfy the following conditions:

Their financial capacity is enough to ensure the land use in conformity with the execution schedule of investment projects. Particularly: (i): their own capital for execution of investment projects is not less than 20% of total investment capital for the projects whose area are at most 20 hectares, and is not less than 15% of total investment capital for the prjoects whose area are at least 20 hectares, and (ii) they are able to mobilize capital from credit organiztions and other private organizations:

They make a deposit in accordance with regulations of the Law on Investment;

They do not violate regulations of the Land law for those who are using land which has been assigned, leased by the State in order to execute other investment projects.

2. Competent to assign land, lease land or to permit to change land use purposes [Article 59, the Land Law No. 45].

People’s Commitee of Provinces will decided to assign land, lease land, and permit to change the land use purposes to Economic Organizations, Vietnameses who are residing in foreign countries, Foreign investment enterprises in order to execute investment projects in the fields of agriculture, forestry, aquaculture and salt production; production land, non-agricultural business; land for construction of public works for business purposes; land for execution of house-for-lease construction projects; land for construction of non- business works.

The State assigns land and collects land use money, leases land and collects annual land rental cost or collects the whole land rental cost for entire term of lease.

3. Term of land use, land lease

Term of land allocation, term of land lease for economic organizations for their purposes of production in the fields of agriculture, forestry, aquaculture and salt production; economic organizations, households, individuals in order to use as a ground for their production premises, business premises; econonic organizations in order to execute investment projects; Vietnamese people who are residing in foreign countries, foreign organizations and individuals; joint venture economic organizations in order to execute investment projects in Vietnam are considered and determined  on the basis of investment projects or applications for land lease but the terms will not more than fifty (50) years; Term of the investment projects which are implemented in areas with difficult socio-economic conditions, areas with specially difficult socio-economic conditions or the projects including large investment capital but slow payback will be longer but during 70 years.

For the business projects in relation to house for selling or for selling and leasing, term of land use for investors is the term of project operation, those who buy housing associated with land use right will be used the land stably for a long time.

Upon the expiry of the term, land users will be considered to extent the term of land use by the State if the land users wish to continue using, comply with regulations of the Land law during their use and their land use is in consistent with the approved planning for land use.

4. Land Acquisition

The land that has been allocated, leased by the State in order to execute investment projects is not used during 12 consecutive months or the schedule of land use is delayed during 24 months in comparison to the schedule as stated in the investment projects upon the date of receiving land handover in the field; if the land is not used, investors will be extended 24 months for the term of land use and must pay the State for an amount which is equivalent to the value of land use, the value of land lease during the time of late schedule in this period; If after the extended term, the investors are not put the land in use, the State will acquire the land without compensation for the land and assets associated with the land, unless otherwise in the events of force majeure, People’s Committee of provinces are agencies who have the right to make decisions on land acquisition as stated above.

The Land lot 2013 have narrowed the cases of land acquisition, thus the number of cases of land acquisition is decreased from 6 to 4. Particularly: Land acquisition for the purposes of national defence, security (The article 51); Land acquisition for economic development – for national, public benefits (The article 62); Land acquisition due to violating regulations of the land law (The article 64), and Land acquisition due to termination of land use (The article 65). Corresponding to these laws, the amended Land Law has detailed the cases of land acquisition.

5. Compensation for land, expenses of investment in land during the State’s non-residential and non-agricultural land acquisition

Economic organizations, publicnon- business organizations with financial autonomy, Vietnamese people who are residing in foreign countries, foreign organizations functioning foreign affairs, Foreign investment enterprises who are using non- agricultural land and are leased the land by the State by paying complete rental cost for the entire term of lease, during the land acquisition of the State, if they have enough conditions to be compensated in accordance with regulations in the Article 75 of the Land lot, they will be compensated based on the remaining term of land use.

6. Rights and obligations of Vietnamese people who are residing in foreign countries, Foreign investment enterprises to use in order to execute investment projects in Vietnam

Vietnamese people who are residing in foreign countries and investing in Vietnam and are allocated land by the State by collecting land use money will have the following rights and obligations:

The common rights and obligations as stipulated in the Article 166 and the Article 170 of the Land Law;

The rights and obligations as stipulated in the Clause 2 the Article 174 of the Land Law.

Vietnamese people residing in foreign countries, foreign investment enterprises who are leased land by the State by collecting annual land use money will have the following rights and obligations:

The common rights and obligations as stipulated in the Article 166 and the Article 170 of the Land Law;

To mortgage assets owned by them attached to the the leased land with credit organizations licensed to operate in Vietnam; to contribute capital in assets owned by them attached to the the leased land, those who receive the contributed capital in assets are leased land by the State in accordance with the proper purposes as specified during the remaining term;

To sell assets owned by them attached to the the leased land when having enough conditions as stipulated in the Article 189 of the Land Law;

To lease houses if permitted to do its business in the field of housing.

Vietnamese people residing in foreign countries, foreign investment enterprises who are leased land by the Vietnamese State by collecting the whole rental money for entire term of lease; foreign investment enterprise who are allocated land by the Vietnamese state by collecting land use money in order to execute investment projects will have the following rights and obligations:

The common rights and obligations as stipulated in the Article 166 and the Article 170 of the Land Law;

To transfer the land use right, assets owned by them attached to the the leased land within the term of land use;

To lease, to sublease the land use right, assets owned by them attached to the the leased land within the term of land use;

To mortgage the land use right, assets owned by them attached to the the land with credit organizations licensed to operate in Vietnam within the term of land use;

To contribute capital in land use right, assets owned by them attached to the land in order to cooperate production and business within the term of land use.

Foreign investment enterprises using the land which is formed by foreign investors’ equity purchase of Vietnamese enterprises will have the following rights and obligations:

In the event that foreign investment enterprises which are formed by receiving stock assignment are 100% foreign investment enterprises or foreign investment enterprises in which foreign investors make up the rate of controlling shares according to regulations of the Enterprise law, foreign investment enterprises will have the rights and obligations as stipulated in the clause 2, the clause 3of this article corresponding the method of land use money and land rental cost payment;

In the event that foreign investment enterprises which are formed by stock assignment are enterprises in which Vietnamese parties make up the rate of controlling shares according to regulations of the Enterprise law, foreign investment enterprises will have the rights and obligations as stipulated in the Article 174 and the Article 175 of the Land law.

Vietnamese people residing in foreign countries, foreign investment enterprises who are using the land in order to execute investment projects in Vietnam, are allocated land and leased land by the Vietnamese State by collecting the whole the rental cost for the entire term of lease, and are exempted or deducted the land use money or land rental cost will have the rights and obligations as stipulated in the Clause 4 the Article 174 of the Land Law.

7. Rights and obligations of join venture enterprises using land which is formed by receiving land use right as a form of contributed capital

Joint venture enterprises among foreign organizations, foreign individuals, Vietnamese people residing in foreign countries with economic organizations in which the economic organizations contribute capital through transfer of land use right, the Joint venture enterprises will have the rights and obligations as stipulated in the Article 174 of the Land Law in the following events:

Land as a contributed capital of the economic organizations is allocated by the Stated by collecting land use money, is leased by the State by collecting the whole rental cost for the entire term of lease and the paid land use money and the rental cost are not derived from the State budget;

Land as a contributed capital of the economic organizations after receiving transfer of land use right is not the land which is leased by the State by collecting annual rental cost, and payment for the transfer receipt is not derived from the State budget;

If State enterprises are leased land before July 01st, 2014 and use value of the land use right as the State Budget issued to the enterprises, without debit account and without return of the land rental cost according to regulations of the land law, in order to contribute joint venture capital to foreign organizations, foreign individuals, the join venture enterprises will have the rights and obligations as stipulated in the Article 174 of the Land Law. Value of land use rigt means the contributed capital of the State to the joint venture enterprises.

If Vietnamese people residing in foreign countries, who are leased land by the State by collecting land use money, or paying the whole rental cost of entire term of lease, perform capital contribution in the form of land use right transfer as domestic economic organizations to joint ventures with foreign organizations, foreign individuals, the joint venture enterprises will have the rights and obligations as stipulated in the Article 174 of the Land Law.

If Joint venture enterprises to which Vietnamese parties contribute capital in the form of land use right transfer is changed into 100% foreign investment enterprises, the Joint venture enterprises will have the following rights and obligations:

The rights and obligations as stipulated in the clause 2 the Article 183 of the Land Law with regard to the cases that land use right due to receiving previous contributed capital is not subject to the case to use in order to execute house-for-selling investment projects and 100% foreign investment enterprises are leased land by the State by collecting annual rental cost in acordance with the regulations of the clause 1 the Article 56 of the Land Law;

The rights and obligations as stipulated in the clause 3 the Article 183 of the Land Law with regard to the cases that land use right due to receiving previous contributed capital is not subject to the case to use in order to execute house-for-selling investment projects and 100% foreign investment enterprises are leased land by the State by collecting the whole rental cost of the entire term of lease in acordance with the regulations of the clause 1 the Article 56 of the Land Law;

The rights and obligations as stipulated in the clause 3 the Article 183 of the Land Law with regard to the cases that land use right due to receiving previous contributed capital is subject the case to use in order to execute house-for-selling investment projects and 100% foreign investment enterprises are leased land by the State in acordance with the regulations of the clause 1 the Article 55 of the Land Law.

8. Rights and obligations of Vietnamese people residing in foreign countries, foreign investment enterprise using land in industrial zones, industrial clusters, Export Processing zones, hi- tech zones, economics zones

Vietnamese people residing in foreign countries are received land use right transfer in industrial zones, industrial clusters, Export Processing zones, hi- tech zones, economics zones, and have the rights and obligations in accordance with the regulations in the Article 174 of the Land Law.

Vietnamese people residing in foreign countries, foreign investment enterprises who are leased rent, subleased rent in industrial zones, industrial clusters, Export Processing zones, hi- tech zones, economics zones will have the following rights and obligations:

In the event of paying the whole rental cost of entire term of lease, sublease, they will have the rights and obligations as stipulated in the Article 174 of the Land Law;

In the event of paying annual rental cost, they will have the rights and obligations as stipulated in the Article 175 of the Land Law.

9. Forms of land sublease

In the event that investors select the form of land lease of the State by paying annual rental cost in order to execute projects on construction of and business in industrial zone infrastructure, the investors will be only permitted to sublease the land use right by paying annual rental cost with regard to the land where infrastructure has been completed [The clause 1, the Article 175, the Land Law No. 45].

The State leases land to economic organizations, Vietnamese people residing in foreign countries, foreign investment enterprises in order to invest in construction of and business in infrastructure of industrial zones, industrial clusters and export processing zones. With regard to the area of leased land in the form of paying annual rental cost, those who are leased land by the State will be entitled to sublease the land in the form of paying annual rental cost; with regard to the area of leased land in the form of paying the whole rental cost of the entire term of lease, those who are leased land by the State will be entitled to sublease the land in the form of paying the whole rental cost of the entire term of lease or paying annual rental cost [The clause 2, The Article 149 of the Land Law No. 45].

However, those regulations will be only applied when the Land Law 2013 takes effect (July 01st, 2014). With the regard of shortcomings, the Land Law 2013 is amended and modified as following:

“In the event that investors are leased land by the State in the form of collecting annual rental cost in order to invest in construction of and business in infrastructure of industrial zones, industrial clusters and export processing zones and sublease the land associated with its infrastructure in the form of paying the whole rental cost of the entire term of lease prior to this Law becomes effective, the investors shall pay money to the State in accordance with regulations of the Government; those who are subleased the land will have the same rights and obligations as the rights and obligations of those who are leased land by the state by collecting the whole rental cost of the entire term of lease after the investors fully pay the rental cost to the State Budget”.

B. LAND RENTAL COST, WATER SURFACE RENTAL COST

1. Unit price of land rent in the form of paying annual rental cost:

In the event of land rent in the form of paying annual rental cost, the rate for calculating unit price of land rent during one year will be equivalent to 1% (one percentage) of the land price according to rented land use purposes according to regulations of provincial People’s Committees;

In the event that land price for calculating unit price of land rent which has been determined by provincial People’s Committees in the moment of land renting is not close to the price of existing transfer price of land use right in the market under normal conditions, provincial People’s Committees will determine the specific land price for each case on the basis of the actual transfer price of land use right.

With regard of residential urban land, land in commercial centers, land in service centers, land in traffic intersections, land in centralized residential areas which have special profitability, have a lot of advantages if the land is used as premises of production, business, commercial and services activities, on the basis of the current situation of locals,  provincial People’s Committees will determine the rate (%) of land price in order to specify unit price of land rent during one year but the rate will not exceed 30%.

Land price as specified by provincial People’s Committees will be the land price as stated in the land quotation which is issued by the provincial People’s Committees on 01 January every year.

2. Unit price of land rent in the form of paying the whole rental cost of the entire term of lease:

In the event of land lease in the form of paying the whole rental cost of the entire term of lease, the payable land rental cost will be equivalent to the payable land use money as the event of land allocation by collecting land use money in the same location, for the same land use purposes, and the same term of land use.

3. Deduction of compenstion money, ground clearance. [The clause 1, the article 3, the Land Law No. 43].

In the event that domestic organizations, individuals; Vietnamese people who are residing in foreign countries; foreign organizations, individuals who are leased land by the State advance money of compensation, assistance, re-settlement and cost of compensation for ground clearance according to the measures which have been approved by competent authorities, then they will be returned the money by the State Budget by deducting the whole advance payment, according to the approved measures, from the payable land rental cost.

In the event that the advance for compensation, assistance, re-settlement and cost of compensation for ground clearance according to the measures which have been approved by competent authorities exceed the payable land rental cost, then the deducted amount will be equivalent to the payable land rental cost; the remaining amount will be included in the investment expenses of projects. The amount which has been deducted from the payable land rental cost will not be taken account into the investment expenses of projects.

In the event of land rent in the form of paying annual rental cost, advance payment (if any) for compensation, assistance, re-settlement and cost of compensation for ground clearance according to the measures which have been approved by competent authorities will be deducted from the payable land rental cost, will be converted into corresponding time to pay rental cost according to the land rental price in the time of payable rental cost determining of the first period and it is determined the time of completion of annual rental cost payment.

4.  Stable time of unit price of land rent, water surface rent [The article 15, the Decree No. 46 on my 15th, 2014]

Unit price of land rent of each project is stable during 05 years from the decision of land lease of the State. During almost the stable time, Director of taxation departments, head of taxation offices will re-adjust unit price of land rent which will be applied to the next period.

 

FOREIGNERS’ HOUSE OWNERSHIP IN VIETNAM

Previously, the house ownership in Vietnam by the foreign organizations and individuals (“foreigners”) are provided for in Article 125 of the Housing Acts in 2005. In particular: (i) the foreigners who invest in constructing the houses for rent in Vietnam is issued the certificate of ownership for such houses by the State competent authorities, and (ii) the foreigners invest in constructing the houses for sale, after completion of the construction under projects, the investors are entitled to sell the houses for the subjects who are entitled to own houses in Vietnam.

On that basis, as specified by the law in Decree No. 71/2010/ND-CP, in the case that the foreigners who buy houses in Vietnam are entitled to own the houses under the provisions of Resolution No. 19/2008/QH12  and Decree No. 51/2009/NĐ-CP, in which the enterprises processing investment certificates operating in Vietnam, individuals residing in Vietnam with permanent residence card or temporary residence cards from 1 year or more under subjects:

Foreign individuals with direct investment in Vietnam or being employed by the enterprises operating in Vietnam to hold the managerial positions in such enterprises;

Foreign individuals whose effort has contributed to Vietnam (to be awarded the Medals,); or have made special contributions to Vietnam as decided by the Prime Minister;

Foreign individuals who are working in the field of economy – society has a university degree or equivalent and above and who have the knowledge and special skills required by Vietnam;

Foreign citizens married to Vietnamese citizens;

The enterprises with foreign capital operating in Vietnam do not have functions of trading in the real estate, demand for housing for accommodation for people who are working in such enterprises.

Period of apartment ownership for foreign individuals is 50 years from the date of certificate of house ownership. For the enterprises with foreign investment capital, the duration of ownership equivalent to the duration of the investment certificate issued for such enterprise by the competent authority. In addition, the foreign individuals may only own one apartment, while the foreign enterprises may own one or several apartments, depending on demand.

As prescribed by the Housing Acts No. 65/2014/QH13 on 25/11/2014 and effective on 1/7/2015, then the conditions for buying houses, rights of the house owners as the foreigners are more open and easier. Accordingly, foreign organizations and individuals who own houses in Vietnam consist of three groups:

As the foreign organizations and individuals who invest in constructing houses under projects in Vietnam under the provisions of the Housing Acts and related laws;

Enterprises with foreign investment capital, branches or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam;

Foreign citizens who are allowed to enter Vietnam.

Provided that:

Only purchase, hire purchase, donation, inheritance, and possession not exceed 30% of the number of apartments in an apartment building. If being the individual houses including villas, semi-detached houses, in an area with a population equivalent of a ward-level administrative units, it is allowed to only purchase, hire purchase, donation, inheritance and possession not more than 250 homes;

In case of donation, inheritance but not as the commercial houses in the area or located in the defense and security assuarance area as prescribed by the Government or exceeds the number of houses as prescribed in point (i) above, it shall only be entitled to the value of such house;

For the foreign individuals, they shall be entitled to own houses as agreed in the contract of sale transactions, hire purchase or donation and inheritance of houses but not exceeding 50 years from the date of issuance of certificate and may be extended under the provisions of the Government if needed. The ownership period for the houses must be specified in the certificate;

For the foreign organizations, they shall be entitled to own houses as agreed in the contract of sale transactions, hire purchase or donation and inheritance of houses but not exceeding the time limit as stated in the investment certificate issued for such organizations, including the extended time. The ownership period for the houses is calculated from the date of issuing certificate for the organizations and as specified in the certificate;

Period of apartment ownership for the foreign individuals is 50 years, thus before expiration of houses ownership as prescribed by this Law, the owners may give or sell the houses for the subjects who under policy of owning the houses in Vietnam. If over the expiry date of owning the houses that the owners do not to sell or donate the houses, such houses shall be owned by the State.

 

CONSTRUCTION REGULATIONS

1. Construction permit:

Before starting the construction of the work, the investor must have a construction permit issued by the State competent authority as prescribed by the Construction Law, unless the work is free of construction permit.

The work is free of construction permit [paragraph 2, Article 89, Construction Law in 2014] included:

Confidential work of the State, construction work under emergency orders and the works located in the two provincial-level administrative units or more;

The work under construction investment project decided on investment by the Prime Minister, ministers, heads of ministerial-level agencies, Chairman of People’s Committees at all levels;

Temporary construction works for main works;

Construction subject to the surburb route in line with the construction planning approved or accepted by the State’s competent authorities in term of the alignment;

The construction works in the projects on the industrial parks, processing zones, high-tech zones with detailed planning 1/500 approved by the State’s competent authorities and the construction design appraised under the provisions of the Law;

Houses in the projects on urban development, under-7-storey housing development projects with total floor area of 500 m2in the detailed planning 1/500 approved by the State’s competent authorities;

Repairs, renovation and installation of fittings causing no change in the bearing structure, in the utility, no impacts on the environment, the work’s safety

Repair, renovation changing exterior architecture which is not contiguous with the urban roads requiring architectural management;

The technical infrastructure works in rural areas requiring preparation of engineering- economic reports in construction investments and in the regions without detailed planning approved in the rural areas;

The construction works in the rural areas without urban development planning and detailed planning approved; private houses in rural areas except for ones in the reserve, historic – cultural areas;

The employers are exempted from permits as stipulated in points b, d, đ and i, this clause, who are responsible for informing the construction commencement time attached to the construction design documents to the local construction management authorities for monitoring and filing

Related permits consist of:

Construction permits;

Permits for repairs, improvement;

Permits for relocation of the works.

a. Permit issuing conditions in construction:

(i) Permit issuing conditions for urban works:

To be suitable to the detailed planning approved by the State’s competent authorities. For the regional construction works, the stable urban routes without detailed construction planning, to be suitable to the management mechanism on planning, urban architecture or urban design approved by the State’s competent authorities.

To be suitable to the purpose of land use under the land use plan approved

To secure the safety for the work, surrounding ones and to meet the requirements on envrionment protection, fire, explosion prevention and fighting; to secure safety of technical infrastructure, corridor protecting the irrigation, dykes, dams, energy, traffic works, cultural heritage sites, historical – cultural areas; to secure the safe distance to the flammable, explosive, toxic and important works related to national defense and security

To design the construction works to be appraised, approved under the provisions in Article 82, the Construction Law

To prepare the documents applying for the suitable permits as stipulated in Articles 95, 96 and 97, the Construction Law

(ii) Permit issuing conditions for suburb works:

To be in line with the site and overall plan of the project accepted in written by the State’s competent authorities.

To meet the conditions as stipulated in Articles 3, 4 and 5, Article 91, the Construction Law

(iii) Permit issuing conditions for private houses:

General permit issuing conditions for private houses in urban area consist of:

To be in line with the land use purposes under the approved land use planning;

To secure the safety for the work, surrounding ones and to meet the requirements on envrionment protection, fire, explosion prevention and fighting; to secure safety of technical infrastructure, corridor protecting the irrigation, dykes, dams, energy, traffic works, cultural heritage sites, historical – cultural areas; to secure the safe distance to the flammable, explosive, toxic and important works related to national defense and security

To design the private houses under the provisions in Clause 7, Article 79, the Construction Law

To prepare the documents applying for the suitable permits as stipulated in Clause 1, Articles 95, 96 and 97, the Construction Law 2014

The private houses in the urban areas must meet the said general conditions and in line with the detailed planning; the private houses in the stable site, urban routes without detailed planning must be suitable to the management mechanism on planning, urban architecture or urban design issued by the State’s competent authorities

The private houses in the rural areas must be in line with the detailed planning of the rural population points.

(iv) Limited permit issuing conditions consist of:

To be in the sites with zoning plan approved, announced by the State’s competent authorities but unexecuted and without decisions on land revocation from the State’s competent authorities.

To be in line with the scope stipulated by the Province People’s Committee for each region and in the existence time of the work under the implementation schedule for the approved zoning plan.

To include the Employer’warrants on self removal of the work after the lifetime of the work in the limited permit. Unless otherwise, such removal is forced and he shall bear all costs related to such forced removal.

To meet the conditions in Clause 1, this Article and the provisions in Clauses 2, 3, 4, and 5, Article 91, the Construction Law 2014;

For private houses, to meet the conditions specified in Clause 1, this Article and to meet the conditions in Clause 1, Article 93, this Law;

For the private works, houses with limited construction permits, after expiration of the duration but the implementation has not been executed, the issuing authority is responsible for informing the work owners or the assigned users about the revised construction plan and extension of the limited construction permit.

For the private houses, works in the sites with zoning plan approved by the State’s competent authorities and the annual land use schedule in the district level, the limited permit is not issued for construction but for repair and improvement purposes only.

b. The documents applying the construction permit:

(i) The documents applying the construction permit for private houses consist of:

Application for construction permits;

Copies of either of the documents proving the land use rights under the provisions and laws on the land;

Construction design drawings;

The semi-detached construction works must include the commitment on safety for their semi-detached works.

(ii) The documents applying the construction permit for the works beyond the route consist of:

Application for construction permits;

Copies of either of the documents proving the land use rights under the provisions and laws on the land;

Copies of decisions approving the project, investment decisions;

Construction design drawings;

Statement of capacities, experience of the design organization, individual who is the chief designer, design manager, attached to certificate of professional practice of the chief designer, design manager

(iii) The documents applying the construction permit for the works in the route consist of:

Application for construction permits;

Copies of decisions approving the project, investment decisions;

Construction design drawings;

Statement of capacities, experience of the design organization, individual who is the chief designer, design manager, attached to certificate of professional practice of the chief designer, design manager.

Written approvals of the State’s competent authorities for suitability to the location and the route plan;

The decisions on land recovery from the State’s competent authorities under the provisions and laws on the land

(iv) The documents requiring the construction permits for the religious works, monuments, imposing murals, advertising works, the work of diplomatic missions and international organizations in accordance with Clause 4,5,6,7, Article 95, the Construction Law 2014.

c. Authorization of issuing, revising, extending, re-issuing and revocation of the construction permits:

The Ministry of Construction shall issue the construction permits to the special works;

The province-leveled People’s Committees shall issue the construction permits to the grade I, grade II construction works; religious works, monuments, imposing murals ranked; the works on the route, arterial urban roads; the works with FDI, the province-leveled People’s Committees may authorize the Department of Construction, the Management Unit of economic zones, industrial parks, export processing zones, high-tech zones to issue the construction permits in the scope of management, functions of the agencies;

The district- leveled People’s Committees shall issue the construction permits to the works, private houses in the urban areas, center of the communes, reserves, historic- cultural sites in the control except for the construction works in the authorization of the Ministry of Construction and the province-leveled People’s Committees;

The permit issuing authorities are empowered to revise, extend, re-issue and revoke the construction permits issued by them;

If the permit issuing authorities fail to recover the wrongly issued permits, the district- leveled People’s Committees shall directly decide revoke the construction permits.

d. Conditions on construction commencement

(i) The construction commencement must meet the followings:

To have the construction site to hand over entire or a part of work under the construction progress;

To have the construction permits for the works under the regulations;

To have the working drawings of each work, to commence the approved construction work, to be checked, confirmed on the drawings by the Employer;

To have the construction contract signed between the Employer and the selected bidder;

To arrange the capital sufficiently under the construction progress;

To have the measures on safety control, environment protection during construction process;

(ii) The construction commencement of private houses must meet the conditions to have the construction permits.

e. Preparation of construction site:

Revocation of land, land transfer, land lease, compensation, site clearance are implemented under the provisions of the laws on land. The People’s Committee of all levels shall directly and organize compensation work, supports for site clearance, re-settlement for the construction projects under provisions and laws;

The site clearance period must meet the requirements under the implementation progress approved or decided by the competent authorities;

Transfer of entire or a part of construction site under the agreement between the Employer and the Construction Contractor.

Securing the funds for compensation, site clearance, re-settlement (if any)

f. Requirements for construction:

To comply with the approved construction design, standards, applicable technical standards, provisions of the laws on use of construction materials; securing safety control for bearing, safety in use, aesthetics, environment protection, fire, explosion prevention, fighting and other safety conditions under laws and regulations;

To secure safety for the construction works, the human beings, construction equipment, underground works, semi-detached works; to have necessary measures to minimize the loss and damage to the people and assets in case of any incident reducing safety during the construction process.

To apply the specific safety engineering measures for the works, the requirements with strict requirements on labor safety, fire, explosion prevention and fighting.

To use the materials in correct types, specifications, quality upon the requirements on construction design, to secure saving during construction process.

To check, supervise and accept the construction works, accept provisionally, where necessary, accept the work items completed to be put into operation;

The construction contractor must have qualifications and capacities in line with the types, grade of the works and construction works.

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