Consolidated Text No. 07/VBHN-VPQH dated December 05, 2016 of the Office of the National Assembly of the Law on Construction

THE OFFICE OF NATIONAL ASSEMBLY 

Integrated Document No. 07/VBHN-VPQH dated December 05, 2016 of the Office of National Assembly integrates the Laws on Construction

The National Assembly’s Law No. 50/2014/QH13 on construction dated June 18, 2014, which comes into force from January 01, 2015 and is amended by:

The National Assembly’s Law No. 03/2016/QH14 dated November 22, 2016 on amendments to Article 6 and Appendix 4 on the list of conditional business lines of Law on Investment, which comes into force from January 01, 2017.

Pursuant to Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates Law on Construction

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof adjustment

This Law provides regulations on rights, obligations and responsibilities of authorities, organizations and individuals and the state administration related to construction.

Article 2.Subject of application

This Law applies to authorities, domestic and foreign organizations and individuals involved in construction in the territory of Vietnam.

If an international treaty to which the Socialist Republic of Vietnam is a signatory contains regulations different from those of this Law, the regulations of that treaty will prevail.

Article 3. Definitions

For purposes of this Law, the terms below shall be construed as follows:

1. “pre-feasibility study report” (hereinafter referred to as “PFSR”) means a document showing preliminary contents of a study on the necessity for, feasibility and effectiveness of construction, which is used as a basis for considering and deciding policies on investment in construction activities (“hereinafter referred to as “construction”).

2. “feasibility study report” (hereinafter referred to as “FSR”) means a document showing contents of a study on the necessity for, feasibility and effectiveness of construction according to the selected basic design plan, which is used as a basis for considering and deciding the construction.

3. “economic technical report” means a document showing contents on the necessity for, feasibility and effectiveness of construction according to the plan for making shop drawings of small works, which is used as a basis for considering and deciding construction.

4. “Supervisory Ministry” means a Ministry assigned to manage and construct works in the construction sector under its management.

5. “red-line boundary” means a boundary line drawn on the planning map and on the field for demarcating the land area for construction of works and land area reserved for roads or technical infrastructure works and other public spaces

6. “construction boundary” means a limit line of a land lot on which the main work is permitted to be constructed.

7. “ land use norms” means the norms used for management of spatial and architectural development specifically identified for an area or a land lot, including the construction density, land use coefficient and maximum and minimum height of works.

8. “economic-technical norms of a planning scheme” means norms forecast, determined and selected to be used as a basis for proposing options and solutions for construction planning, including population size, land, technical infrastructure norms, social infrastructure norms and environmental norms.

9. "project owner"means an authority,organization or individual that has, borrows or is provide with capital for carrying out construction activities.

10. “construction work” means a product created by human labor and building materials and equipment installed therein, affixed to land, which possibly includes underground and surface components, underwater and water surface components and is constructed according to its designs. Construction works include civil works, industrial works, traffic works, agricultural and rural development works, technical infrastructure works and other works.

11. “elevation point” means the compulsory minimum construction height selected in conformity with the planning for the foundation and rainwater drainage height.

12. "supervisory authorities" includes the Ministry of Construction, People’s Committees of provinces or and central-affiliated cities (hereinafter referred to as “People’s Committees of provinces”) and People’s Committees of districts, towns or provincial cities (hereinafter referred to as People’s Committees of districts)

13. “ construction authorities” means specialized authorities affiliated to the Ministry of Construction Ministries managing specialized construction works; Departments of Construction of provinces , Departments managing specialized construction works; provisions in charge of construction management affiliated to People’s Committees of districts.

14. “specialized authority assigned by the project approver” means a qualified organization assigned by the project owner to appraise a project.

15. “construction project” means a collection of proposals related to use of capital for construction, repair or renovation of construction works aiming to develop, maintain and raise the quality of works or products or services for a certain period of time and within specified costs. At the stage of project preparation, the project shall be demonstrated through a PFSR, a FSR or economic technical report.

16. “rural residential quarter” means an area where many households are bound together in their production, daily life and other social activities within a specific zone formed on the basis of natural conditions, socio-economic conditions, culture and other factors.

17. “building permit” means a legal document issued to a project owner by a competent authority for construction, repair, renovation or relocation of a construction work.

18. “limited-term building permit” means a building permit that is granted for construction of a work or separate house and effective for a limited period of time according to the construction planning.

19. “partial building permit” means a permit for partial construction of a work or a project granted before the construction is completed.

20. “construction” means either construction, repair or renovation of a construction work.

21. “construction activities” includes formulation of construction planning, construction project planning, construction survey, construction design, construction, construction supervision, project management, selection of contractors, commissioning, putting works into use, repair under warranty and maintenance of works and other activities related to construction.

22. “technical infrastructure system” includes traffic works, communication works, power supply works, public lighting works, water supply works, wastewater and solid waste collection and treatment works, cemeteries and other works.

23. “social infrastructure system” includes medical works, cultural works, educational works, sport works, commercial and public service works, trees, parks and other works

24. “construction consultancy activities” includes formulation of construction planning, investment project planning, construction survey, construction design, verification, inspection, experimentation, project management, construction supervision and other consulting activities related to construction.

25. “dedicated areas” means areas developed according to a separate function or mixed functions namely economic zones, industrial zones, export processing zones, hi-tech parks; tourist resorts, ecological resorts, conservation zones, historical-cultural relic areas; research and training zones; sports areas; airports, seaports, important technical infrastructure zones and another dedicated areas identified under the approved regional construction planning or established under a decision issued by a competent authority.

26. "construction project planning" includes preparation of a PFSR (if any), FSR or economic technical report and necessary preparations for construction.

27. "project approver” is an individual or a legal representative of an authority, organization or enterprise who has power to approve construction projects and decide to invest in construction.

28. "Contractor" means an organization or individual that is qualified for construction when entering into a construction contract.

29. “separate house” means a work constructed within a residential land area the land use right of which is held by a household or an individual in accordance with regulations of law.

30. “construction planning” means the organization of space of urban and rural areas and dedicated areas; organization of technical and social infrastructure systems; creation of an environment suitable for people living in areas, ensuring the harmony between national interests and community interests, ensuring the socio-economic development, national defense, security, environmental safety and response to climate change. Construction planning is demonstrated through a planning scheme including diagrams, drawings, mock-ups and descriptions.

31. “regional construction planning” means the organization of systems of urban and rural areas and dedicated areas and systems of technical and social infrastructure works in administrative boundaries of a province or a district, inter-provinces or inter-districts, which is conformable with socio-economic development requirements in each period.

32. “construction planning for dedicated areas” means the organization of landscape architecture, systems of technical and social infrastructure works in a dedicated area. The dedicated area construction planning includes general construction planning, sector planning and detailed construction planning.

33. “rural construction planning” means the spatial organization, land use, systems of technical infrastructure and social infrastructure works of a rural area. The rural construction planning includes general construction planning for communes and detailed construction planning for rural residential quarters.

34. “construction emergency” means damage to a construction work or its supporting structures that exceeds permissible limits and threatens to cause or has caused the collapse of a part or the whole of the construction work during the process of construction or use thereof.

35. “general contractor” is a contractor directly signing a contract with a project owner to undertake one, several or all tasks of a construction project.

36. “appraisal” means the inspection and assessment carried out by the project approver, project owner or a construction authority regarding necessary contents during the preparation for and execution of a construction project, which is used as a basis for considering and approving this project.

37. “verification” means professional assessment carried out by a qualified organization or individual regarding necessary contents during the preparation for and execution of a construction project, which is used as a basis for considering and approving this project.

38. “execution of a construction work” includes construction of a work and installation of equipment in a newly built, repaired or renovated works; demolition, warranty and maintenance of construction works.

39. “equipment installed in a work” includes construction equipment and technological equipment. Construction equipment means equipment installed in a construction work according to its construction design. Technological equipment means equipment included in a technological line which is installed in a work according to its technological design.

40. “preliminary design” means a design specified in a PFSR and showing initial ideas on design for a construction work, preliminary selection of technological lines and equipment, which is used as a basis for determining the construction policy.

41. “basic design” means a design specified in a FSR, based on the selected design plan, showing main technical parameters in accordance with applied standards and technical regulations, which is used as a basis for proceeding with subsequent designing steps.

42. “technical design” means a design detailing the basic design after the construction project is approved in order to fully show solutions, technical parameters and used materials in accordance with the applied standards and technical regulations, which is used as a basis for develop the shop drawing design.

43. "shop drawing design” means a design show sufficient technical parameters, used materials and structural details in accordance with applied standards and technical regulations and satisfies sufficient conditions for execution of a construction work.

44. “construction planning duration” means a period of time used as a basis for forecast and calculation of economic-technical norms for formulation of a planning scheme.

45. “planning region” means the territorial space demarcated by one or more administrative units and decided by a competent authority.

Article 4. Basic construction principles

1. Ensure the compliance of construction with planning and designs and the protection of landscapes and environment; ensure the suitability for natural and social conditions and cultural characteristics of each region; ensure the stable life of people and combine socio-economic development with national defense and security and response to climate change.

2. Reasonably use resources and natural resources in project areas and ensure proper purposes and subjects and procedures for the construction.

3. Comply with standards and technical regulations, regulations of law on use of building materials; ensure convenience and safe use of public works and high-rises for people with disabilities, the elderly and children; apply science, technology and information system to construction.

4. Ensure the quality, progress and safety of works, human lives and health and property; fire safety and environmental safety.

5. Ensure the consistent construction of each work and consistency with technical and social infrastructure works.

6. Organizations and individuals engaging in construction shall be qualified for types of construction projects, type and grades of construction works and tasks in accordance with regulations of this Law.

7. Ensure the transparence, saving and effectiveness; prevention of and fighting against corruption, waste, loss and other negative actions in construction.

8. Clearly separate the state administration in construction from the management of project owners in accordance with to each type of source of funding.

Article 5. Types and grades of construction works

1. Construction works shall be classified according to types and grades.

2. Types of works that are determined according to their utility include civil works, industrial works, traffic works, agricultural and rural development works, technical infrastructure and national defense and security works.

3. Grades of construction works are determined according types, sizes, purposes, importance, service life, used materials and technical requirements of construction works.

Grades of works include special grade, grades I, II, III and IV and other grades in accordance with regulations promulgated by the Government.

Article 6. Application of standards and technical regulations to construction

1. Construction shall comply with national technical regulations.

2. Standards shall be applied in construction according to the voluntary principle, excluding standards referred in technical regulations or other relevant legal documents.

3. Standards applied to a work shall be considered and approved by the project approver when deciding to invest.

4. The application of standards shall:

a) Comply with requirements of national technical regulations and relevant regulations of law;

b) Ensure the consistency and feasibility of the applied standard system.

5. The application of technical solutions, technologies and new materials to construction shall satisfy national technical regulations and relevant regulations of laws.

6. The Ministry of Construction and supervisory Ministries shall formulate standards and national technical regulations applicable to specialized construction works in accordance with regulations of law on standards and technical regulations.

Article 7. Project owners

1. A project approver shall appoint a project owner before the construction project is planned or as soon as it is approved.

2. Depending on sources of funding spent on the project, a project owner shall be defined as follows:

a) With regard to a project funded by the state budget and non-state budget, the project owner shall be the authority or organization that is assigned to manage and use capital for construction by the project approver.

b) With regard to a project using loans, the project owner shall be the organization or individual taking loans to invest in construction;

c) With regard to a project carried out under a project contract or public private partnership (PPP) contract, the project owner shall be the project management enterprise established according to agreements of investors in accordance with regulations of law;

d) With regard to projects not mentioned in Points a, b and c of this Clause, the project owner shall be the organization or individual owning capital of the project.

3. According to specific conditions of a project funded by the state budget, the project approver shall assign the management board of a specialized construction project (hereinafter referred to as “specialized management board”) or the management board of the construction project in an area (hereinafter referred to as “area-based management board”) to work as the project owner. If there is no management board, the project approver will select an eligible authority or organization to work as the project owner.

4. Project owners shall take legal responsibility and be accountable to project approvers within their powers and duties in accordance with regulations of this Law and relevant regulations of law.

Article 8. Supervision and assessment of construction projects

1. A construction project shall be supervised and assessed in accordance with each type of sources of funding. To be specific:

a) With regard to a project funded by the state budget, the competent authority shall supervise and assess it in accordance with regulations of law on public investment and law on construction according to approved contents of and criteria for assessment;

b) With regard to projects funded by other sources of funding, the competent authority shall supervise and assess objectives and the conformity with relevant planning, land use, progress of investment and environmental safety.

2. Infrastructure construction projects funded by the state budget, public contribution and sponsored by domestic organizations and individuals shall be subject to the community’s supervision.

Vietnamese Fatherland Front of the construction area, within its powers and duties, shall carry out the community’s supervision.

3. The Government shall provide detailed guidance on this Article.

Article 9. Construction insurance

1. Construction insurance includes:

a) Insurance for works during the construction period;

b) Professional liability insurance for construction consultancy;

c) Insurance for construction supplies, materials, means, equipment and employees;

d) Third party civil liability insurance;

dd) Insurance for repair under warranty.

2. Responsibility to buy compulsory construction insurance shall be specified as follows:

a) Project owners shall buy insurance for construction works during the construction period for works affecting the community safety and environment and works special technical requirements and complicated construction conditions;

b) Consultancy contractors shall buy professional liability insurance for construction consultancy for construction survey and construction design for works included in grade 2 or higher grades;

c) Construction contractors shall buy insurance for their employees working in construction sites.

3. Project owners, consultancy contractors and construction contractors are encouraged to buy construction instruction, except for compulsory insurance prescribed in Clause 2 of this Clause.

4. The Government shall provide detailed regulations on responsibility to buy compulsory insurance, conditions, insurance premiums and the minimum sum insured applying to insurance participants and insurers.

Article 10. Encouragement policies on construction

1. Domestic and foreign organizations and individuals are encouraged and enabled to research and apply advanced construction science and technology, use new materials, save energy and resources, protect the environment and respond to climate change; to reserve, embellish and promote the value of historical relics, cultural heritages, beliefs and religion. Organizations and individuals are enabled to build social houses and engage in construction according to the planning in mountainous areas, areas facing extremely difficult socio-economic conditions and areas facing climate change.

2. Organizations and individuals in all economic sectors that engage in construction are treated equally, encouraged and enabled to carry out construction. Contractors whose construction works obtaining awards for construction work quality given by the State shall be given priority when they participate in bidding in construction activities.

3. A number of public services being provided by regulatory authorities in construction shall be gradually transferred to socio- professional organizations that are eligible for provision of these services.

Article 11. International cooperation in construction

1. Domestic organizations and individuals are encouraged to promote international cooperation in construction, transfer technologies, techniques, and experience of management and use new materials.

2. The State shall protect overseas Vietnamese construction brands; provide assistance in and promote conclusion and implementation of international treaties and agreements related to construction between domestic organizations and individuals and foreign organizations and individuals on the basis of ensuring the basic principles in construction prescribed in Article 4 of this Law.

Article 12 Prohibited actions

1. Failing to decide construction in accordance with regulations of this Law.

2. Initiating a work although conditions for initiating construction works prescribed in this Law are not fulfilled.

3. Building in areas banned from construction; encroaching upon protection corridors of national defense, security, traffic and irrigation works, dykes, energy facilities, historical-cultural relic areas and other protection zones of works as prescribed by law; building in areas in danger of landslide, sweeping flood or flash flood, except for works built to prevent and repair damage caused by these disasters.

4. Failing to comply with the construction planning, except for works issued with limited-term building permits; encroaching construction boundaries or elevation points; failing to comply with granted building permits.

5. Formulating, inspecting and approving designs and cost estimates of state-invested construction works against regulations of this Law.

6. Carrying out construction activities while ineligible.

7. Selecting contractors not eligible for carrying out construction activities.

8. Failing to adhere to relevant standards and technical regulations applied to these works.

9. Producing or using building materials harmful to community health and environment.

10. Committing violations of regulations on occupational safety, property protection, fire safety, security and order and environmental safety related to construction.

11. Failing to use works for proper purposes and utilities; building annexes, encroaching upon areas and spaces legally managed or used by other organizations or individuals or upon public areas and common-use areas.

12. Giving or taking bribes related to construction; abusing other legal entities to participate in construction activities; entering into a collusion to falsify results of project planning, construction survey, designs or supervision.

13. Abusing positions and powers to violate regulations of law on construction, covering up violations and creating unnecessary delay in taking actions against violations of law on construction.

14. Obstructing lawful construction activities.

Chapter II

CONSTRUCTION PLANNING

Section 1. GENERAL PROVISIONS

Article 13. Construction planning and bases for formulation thereof

1. Construction planning includes:

a) Regional construction planning

b) Urban construction planning;

c) Construction planning for dedicated area;

d) Rural construction planning.

2. The construction planning shall be formulated according to the following bases:

a) Strategies and master plans for socio-economic development, national defense, security, sectoral master plans, general orientations of national urban system master plans and relevant approved construction planning;

b) Technical regulations on construction and relevant regulations;

c) Maps, documents and data related to local socio-economic condition and natural conditions.

3. Urban planning shall be implemented in accordance with regulations of law on urban planning.

Article 14. Requirements and principles for construction planning

1. Requirements for construction planning shall include:

a) The construction planning is conformable with objectives of strategies and master plans for socio- economic development; ensures national defense and security, creates a motivation for sustainable socio-economic development; is consistent with sectoral development master plans; ensures the transparence and harmony between national interests and community and personal interests;

b) Space for construction is organized and arranged on the basis of reasonable extraction and use of natural resources, land, historical relics, cultural heritages and other resources in conformity with natural and socio-economic conditions, historical and cultural characteristics and scientific and technological condition for each stage of development;

c) The construction planning meets demand for use of technical infrastructure system and ensures connection and consistency of regional, national and international technical infrastructure;

d) The construction planning ensures environmental safety, natural disaster preparedness and responses to climate change, minimizes impacts on community and ensures preservation, embellishment and development of the value of historical relics, cultural heritages, beliefs and religion and ensures the consistency between architecture, social infrastructure works and technical infrastructure;

dd) The construction planning creates bases for investment management, attraction of construction investment, management and use of construction works in regions, dedicated areas and rural areas.

2. Principles of construction planning shall be specified as follows:

a) The construction, management of space, architecture and landscapes shall comply with the approved construction planning and be conformable with mobilized resources;

b) Grade of construction planning shall ensure the consistency and conformity with the planning at higher grades.

Article 15. Review of construction planning

1. The implementation of construction planning shall be periodically examined, reviewed and assessed in order to make timely adjustments in conformity with the socio-economic development in each period. The periodical review shall be carried out every 10 years for regional construction planning, every 5 years for general planning and sector planning and every 3 years for detailed planning from the day on which the construction planning is approved.

2. People’s Committees shall take responsibility for reviewing approved construction planning.

3. Results of construction planning review shall be reported in writing to the competent authority approving this planning for consideration and decision.

Article 16. Responsibility to get opinions on construction planning

1. Authorities and project owners formulating construction planning shall get opinions from authorities, organizations, individuals and communities related to tasks of construction planning and planning schemes (hereinafter referred to as “planning tasks and schemes”).

Relevant People’s Committees shall cooperate with authorities and organizations formulating the construction planning (hereinafter referred to as “formulating authority”) and project owners in getting opinions.

2. If planning tasks and schemes shall be approved by the Prime Minister, the Ministry of Construction shall get opinions from other relevant Ministries, central authorities and organizations and People’s Committees of provinces shall get opinions from relevant authorities, organizations, individuals and communities in their provinces.

3. Opinions shall be fully received, explained and reported to competent authorities for consideration and decision.

Article 17. Manners of and time limit for getting opinions on construction planning

1. Opinions on planning tasks and schemes given by relevant authorities, organizations and individuals shall be gotten by sending documents or organizing conferences and seminars. Consulted organizations and individuals shall reply in writing or directly give opinions.

2. Public comments on tasks of and schemes for general construction planning shall be gotten by sending questionnaires to community’s representatives or conducting interviews with them. The community representatives shall collect opinions from the community’s members in accordance with the law on democracy at grassroots level.

3. Public comments on tasks of and schemes for sector planning, detailed construction planning and general construction planning for communes, planning for construction of residential quarters shall be gotten via comment cards through public display or presentation of planning projects on the mass media.

4. Time limit for getting opinions on construction planning is 20 days in case of authorities and 40 days in case of organizations, individuals and communities.

5. Formulating authorities shall receive opinions from consulted authorities, organizations, individuals and communities to complete planning tasks and schemes and explain in writing in case of refusal to receive these opinions.

6. The Government shall provide detailed guidance on getting opinions on planning tasks and schemes from relevant organizations, individuals and communities.

Article 18. Selection of organization providing consultancy on formulating construction planning

1. Formulating authorities shall decide forms of selecting organizations providing consultancy on construction planning (hereinafter referred to as “consulting firms”) in accordance with regulation of law.

2. Formulating authorities or project owners shall select consulting firms based on their capacity as prescribed by this Law and take legal responsibility for damage caused by their selection of ineligible consulting firms.

3. Selection of consulting firms via contests is encouraged to apply to general construction planning for dedicated areas that are great and significant, sector planning and detailed planning for construction of significant areas in dedicated areas.

Article 19. Funding for formulation of construction planning

1. The State shall provide funding for formulation of construction planning in accordance with regulations of law.

2. The State shall encourage domestic and foreign organizations and individuals to provide funding for formulation of construction planning.

Article 20. Procedures for formulating and approving construction planning

Construction planning shall be specified through planning schemes and gone through the following procedures:

1. Formulating and approving tasks of construction planning.

2. Carrying out field surveys, collecting maps, documents and data related to natural conditions, socio-economic condition, relevant master plans for socio-economic development and sectoral development master plans to formulate planning schemes.

3. Formulating the planning schemes

4. Assessing and approving the planning schemes.

Article 21. Retention of dossiers on planning schemes

1. Authorities, organizations and project owners formulating construction planning shall retain dossiers on approved planning schemes in accordance with regulations of law on retention of documents.

2. Supervisory authorities and land administration authorities shall retain dossiers on planning schemes and provide these documents to individuals, organizations and competent authorities in accordance with regulations of law.

Section 2. REGIONAL CONSTRUCTION PLANNING

Article 22. Regional construction planning and responsibility to organize the formulation of regional construction planning

1. The regional construction planning shall apply to the following regions:

a) Inter-provincial region;

b) Provinces;

c) Inter-district region;

d) Districts;

dd) Dedicated regions;

e) Regions along expressways or inter-provincial economic corridors.

2. With regard to planning schemes for construction of inter-provincial regions or provinces, the planning for technical infrastructure system shall be specified through technical-infrastructure schemes.

3. Responsibility to formulate regional construction planning is specified as follows:

a) The Ministry of Construction shall take charge and cooperate with Ministries, People’s Committees of provinces, relevant organizations and individuals in formulating planning tasks and schemes for inter-provincial regions and dedicated regions that are significant for the country and regions along expressways or inter-provincial economic corridors.

b) Supervisory Ministry shall formulate technical infrastructure tasks and schemes for inter-provincial regions;

c) People’s Committee of provinces shall formulate planning tasks and schemes for other regions located in their provinces

Article 23. Tasks and contents of schemes of regional construction planning

1. Tasks of regional construction planning include:

a) Determine bases for forming regional boundaries;

b) Determine objectives of regional development;

c) Forecast the regional population size, demands for technical and social infrastructure for certain periods of development;

d) Determine requirements for space arrangement of main systems of urban centers, rural areas, major dedicated regions and areas, systems of technical and social infrastructure works in the region for certain periods.

2. Contents of a regional construction planning scheme shall be specified as follows:

a) Regional construction planning for inter-provincial regions, provinces, inter-district regions or districts shall determine and analyze potentiality and motivation of regional development; forecast the urbanization speed; propose solutions for zoning dedicated regions and distributing systems of urban centers and rural residential quarters; determine dedicated areas, production establishments, systems of important technical and social infrastructure works that are significant for the region;

b) Regional construction planning for dedicated regions shall be based on socio-economic potentiality, defense and security potentials, cultural heritages and natural landscapes; determine and analyze the potentiality of development and capability of extraction, zone dedicated areas, distribute population and organize technical infrastructure system in accordance with features and development objectives of each region;

c) Planning for regions along expressways and inter-provincial economic corridors shall analyze motivation and impacts of the expressways and economic corridors on development of such regions, solutions for extracting and using land and arranging space of landscape architecture and organizing technical infrastructure system in conformity with features of the expressways and corridors and ensure traffic safety thereon;

d) Technical infrastructure planning shall forecast the development of and demand for using land; determine position and scale of important works, auxiliary works, main transmit networks, distribution network, protection scope and safety corridors of works;

dd) According to area and features of regions, regional construction planning schemes shall be researched according to topographical maps whose scale is from 1:25,000 to 1:250,000;

e) The regional construction planning duration is from 20 years to 25 years and the orientation towards 50 years;

g) The approved regional construction planning shall be used as a basis for urban planning, planning for dedicated areas, rural construction planning and technical infrastructure planning in the regions.

3. The Government shall provide details guidance on this Article.

Section 3. Planning for dedicated areas

Article 24. Dedicated areas and responsibility to formulate planning for dedicated areas

1. Dedicated areas shall include:

a) Economic zones;

b) Industrial parks, export-processing zones, hi-tech parks;

c) Tourist resorts, ecological resorts;

d) Conservation areas; revolutionary, historical-cultural relic areas;

dd) Research and training zones; physical training and sport zones;

e) Airports and seaports;

g) Important technical infrastructure areas;

h) Other dedicated areas defined in the approved regional construction planning or established by a competent authority.

2.Responsibility to formulate planning for dedicated areas shall be specified as follows:

a) The Ministry of Construction shall formulate tasks and schemes of the national general planning for dedicated areas;

b) People’s Committees of provinces shall formulate tasks and schemes of general planning for dedicated areas, except for the planning prescribed in Point a, Clause 2 of this Article and tasks and schemes of sector planning for dedicated areas;

c) People’s Committees of districts or project owners shall formulate tasks and plans of detailed planning for dedicated areas under their management or investment.

Article 25. Levels of planning for dedicated areas

1.General planning shall apply to a dedicated area whose area is at least 500 hectares and be used as a basis for formulating sector planning and detailed planning for this area.

2.Sector planning shall apply to a dedicated area whose area is less than 500 hectares and be used as a basis for formulating detail planning for this area.

3.Detailed planning shall apply to sectors in a dedicated area and be used as a basis for issuance of building permits and planning of construction projects in this area.

Article 26. General planning for dedicated areas

1.Tasks of the general planning for a dedicated area include:

a) Determine bases for forming of the dedicated area’s boundary;

b) Determine features and forecast population size of the dedicated area, forecast requirements for development orientation of space and technical and social infrastructure in each period of the planning;

c) With regard to general planning for construction and improvement of dedicated areas, apart from the tasks specified in Point a Clause 1of this Article, determine requirements for areas subject to site clearance , areas retained for embellishment, areas to be protected and other specific requirements according to features of each dedicated area.

2.General planning schemes for dedicated areas:

a) A general planning scheme for a dedicated area shall identify development objectives and motivation, population size, land area, technical and social infrastructure norms; development models, orientations of spatial development of dedicated zones, administrative centers, service centers, commercial centers, cultural centers, educational and training centers and medical centers, parks, sports centers; systems of overhead, surface, underwater and underground main technical infrastructure; strategic environmental assessment; plan for investment priority and resources for implementation of the planning.

b) A drawing of the abovementioned plan whose scale is 1:5,000 or 1:10,000 shall be enclosed with the scheme;

c) The construction planning duration is from 20 years to 25 years;

d) The approved planning schemes for dedicated areas shall be used as a basis for formulating the sector planning, detailed planning and project on construction of framework technical infrastructure in dedicated areas.

3.A plan of general planning for specific purpose zone shall identify development objectives and motivation, population size, land, technical and social infrastructure norms; orientations of spatial development of functional sector, planning for framework technical infrastructure system; strategic environmental assessment; plan for investment priority and resources for implementation of the planning.

Article 27. Sector planning for dedicated areas

1.Tasks of sector planning for dedicated areas include:

a) Requirements for land use areas, scale and scope of the planning for sectors, systems of technical and social infrastructure works in the planning area;

b) List of solutions for renovation of works that shall be retained in the planning area;

c) Other requirements depending on each planning area.

2.Plans of sector planning for dedicated areas:

a) A the sector planning scheme for dedicated area shall identify utility of each land area, principles of spatial arrangement and landscape architecture for the whole planning area, norms of population, land use and technical infrastructure system for each land lot; distribution of social infrastructure system in conformity with demand; distribution of technical infrastructure network in main streets in conformity with development stages of the whole dedicated area and strategic environmental assessment;

b) A drawing of the abovementioned plan whose scale is 1:2,000; shall be enclosed with the plan;

c) The duration of sector planning for dedicated areas shall be determined according to those of general planning and requirements of management and development of dedicated areas;

d) The approved plans of the sector planning for dedicated areas shall be used as a basis for determining construction projects in dedicated areas and formulating detailed planning for these areas.

Article 28. Detailed planning for dedicated areas

1.Tasks of detailed planning for dedicated areas include:

a) Requirements for land use area, scale and scope of the detailed planning, urban design systems of technical and social infrastructure works in the planning area;

b) List of measures for renovation of works to be retained in the planning area;

c) Other requirements depending on each planning area.

2.Detailed planning schemes for dedicated areas

a) A detailed planning scheme for a dedicated area shall determine norms of population, land use and technical and social infrastructure and requirements for spatial and architectural arrangement for the entire planning area; distribution of social infrastructure works to meet demands; requirements for architecture of works for every land lot and urban design; distribution of technical infrastructure system to in land lot boundaries and strategies environmental assessment;

b) A drawing of the abovementioned plan whose scale is 1:500 shall be enclosed with the plan;

c) The detailed planning duration shall be determined according to the investment plan;

d) Approved schemes of the detailed planning shall be used as a basis for issuance of building permits and formulation of construction projects.

Section 4. RURAL CONSTRUCTION PLANNING

Article 29. Subjects, levels and responsibility to formulate rural construction planning

1.Rural construction planning shall apply to communes and rural residential quarters.

2.The rural construction planning shall include:

a) General planning for all administrative boundaries of communes;

b) Detailed planning for rural residential quarters.

3.People’s Committees of communes shall take charge of formulating tasks and schemes of rural construction planning.

Article 30. General planning for communes

1.Tasks of the general planning for a commune shall include determination of objectives and the commune boundary; features and functions of the commune; determination of factors affecting the socio-economic development of the commune; forecasts of the population and labor size; land area, major economic-technical norms; requirements for principles of distribution of dedicated areas serving agricultural, industrial, cottage-industrial and handicraft production, trade villages, houses, services and systems of technical infrastructure works.

2.General planning schemes for communes

a) A general planning scheme for commune shall determine potentiality and motivation for development, population size, land area, residential quarter network; orientation of arrangement of overall commune space; developmental orientation of functional zones serving agricultural, industrial, cottage-industrial and handicraft production, trade villages, houses, services and systems of technical infrastructure works;

b) A drawing of the abovementioned scheme whose scale is 1:5,000 or 1:10,000 shall be enclosed with the scheme;

c) The general planning duration is from 10 years to 20 years;

d) The approved general planning scheme for communes shall be used as a basis for formulating detailed planning for rural residential quarters including commune centers, residential areas and other dedicated areas in the communes.

Article 31. Detailed planning for rural residential quarters

1.Tasks of the detailed planning for a rural residential quarter shall include forecast of population and labor size; land areas; determination of requirements for using land for distributing construction, conservation and embellishment of works and technical and social infrastructures in rural residential quarters

2.Detailed planning scheme for rural residential quarters:

a) A detailed planning scheme for a rural residential quarter shall determine location and area for constructing head offices of administrative authorities of communes and educational, medical, cultural, sport, commercial and service works and houses and formulate the planning for technical infrastructure and infrastructure serving production activities;

b) A drawing of the abovementioned scheme whose scale is 1:500 or 1:2,000 shall be enclosed with the plan;

c) The planning period shall be based on the investment project and resources for implementation of this planning;

d) Approved detailed planning schemes for rural residential quarter shall be used as a basis for setting up construction projects and issuance of building permits.

Section 5: APPRAISAL OF AND APPROVAL FOR CONSTRUCTION PLANNING

Article 32: Power to appraise planning tasks and scheme

1.The Ministry of Construction shall appraise planning tasks and schemes to be approved by the Prime Minister.

2.Authorities managing construction planning (“hereinafter referred to as “managing authorities”) which are affiliated to People’s Committees of provinces, shall appraise planning tasks and schemes to be approved by People’s Committees of provinces

3.Managing authorities affiliated to People’s Committee of districts shall appraise planning tasks and schemes to be approved by People’s Committees of districts

Article 33: Appraising council and contents of appraisal of planning tasks and schemes

1.The Ministry of Construction shall establish an appraising council which shall appraise planning tasks and schemes to be approved by the Prime Minister and its planning schemes. The Ministry of Construction shall work as the standing authority of the appraising council.

2.People’s Committees shall establish appraising councils which shall appraise planning tasks and schemes within their power. Managing authorities affiliated to People’s Committees of provinces and districts shall work as standing authorities of appraising councils established by their People’s Committees.

3.Composition of an appraising council shall include representatives of regulatory authorities, socio-professional organization and experts in relevant areas.

4.Tasks of the construction planning shall be appraised in term of:

a) The conformity of these tasks with the socio-economic development strategies and planning, national defense, security, environmental safety, responses to climate change, relevant construction planning and land use plans;

b) Fulfillment of requirements for contents of each type of planning tasks specified in Articles 23, 26, 27, 28, 30 and 31 of this Law.

5.A planning scheme shall be appraised in term of:

a) The fulfillment of conditions by organizations designing the construction planning in accordance with regulations in Article 150 of this Law;

b) Bases for formulating the planning scheme as prescribed in Clause 2 Article 13 of this Law;

c) The conformity with tasks of and requirements for contents of each type of planning prescribed in Section 2, 3 and 4 of this Chapter.

Article 34: Power to approve construction planning tasks and schemes

1.The Prime Minister shall approve tasks and schemes of the following construction planning:

a) Construction planning for inter-provincial regions, regional construction planning for provinces, regional construction planning for dedicated regions, construction planning for regions along expressways and inter-provincial economic corridors and technical infrastructure planning for inter-provincial regions;

b) General planning for economic zones and hi-tech parks;

c) General planning for tourist resorts, ecological resorts, conservation zones, revolutionary and cultural-historical relics areas, research and training zones, physical training and sports zones and other national dedicated areas;

d) Other construction planning formulated by the Ministry of Construction according to the Prime Minister s assignment.

2.The People s Committee of each province shall approve tasks and schemes of the following construction planning:

a) Inter-district regional construction planning, regional construction planning for districts;

b) General planning for dedicated areas, except for the planning prescribed in Point c Clause 1 of this Clause;

c) Sector planning for dedicated areas

3.People’s Committees of each district shall approve tasks and schemes of sector planning; detailed planning and rural construction planning in its district after receiving a written consent issued by the managing authority affiliated to People’s Committee of the province.

4.People’s Committees formulating the construction planning shall submit it to People s Councils for decision before it is approved by competent authorities.

5.Forms and contents of planning tasks and schemes shall be specified as follows:

a) Planning tasks and schemes shall be approved in writing;

b) A written approval shall contain main contents of planning schemes specified in Articles 23, 26, 27, 28, 30 and 31 of this Law and a list of approved drawings.

Section 6. Adjustments to construction planning

Article 35. Conditions for making adjustments to construction planning

1.The regional construction planning shall be adjusted in case of:

a) Adjustments to master plans for socio-economic development of the region, master plans for sectoral development of the region; regulations on protection of natural resources and environment; land use plans; strategies for national defense and security and regional development project;

b) Changes in natural and geographic conditions, administrative boundaries, large fluctuations in population and socio-economic situation.

2.The planning for a dedicated area shall be adjusted if:

a) There are adjustments to regional construction planning, master plans for socio-economic development or sectoral development of the region;

b) The formation of important projects that are meaningful to the country affects greatly to land use, environment, and spatial organization of the dedicated area;

c) Failure to implement the construction planning or implementation of construction planning affects to socio-economic development, national defense, security, social security and ecological environment or cultural-historical relics and public comments;

d) There are changes in climate, geology or hydrology; or

dd) The adjustments aim to serve national and community interests.

3.The rural construction planning shall be adjusted in case of:

a) Adjustments to master plans for local socio-economic development;

b) Adjustments to regional construction planning;

c) Adjustment to local land use plans;

d) Changes in natural and geographic conditions.

Article 36. Principles of adjustments to construction planning

1.The adjustment to construction planning shall be based on the analysis and evaluation of current situation and results of execution of existing planning, determine requirements for regional renovation and embellishment to propose adjustments to land use norms, measures for the arrangement of space and landscape for each region and measures for the improvement of technical and social infrastructure systems to meet the development requirements.

2.Adjusted contents of construction planning shall be appraised and approved in accordance with regulations of this law. Unchanged contents of the approved construction planning shall keep being carried out.

Article 37. Type of adjustments to construction planning

1.Overall adjustments to the construction planning (hereinafter referred to as “overall adjustments”) shall be specified as follows:

a) Overall adjustments shall be made if there are changes in features, functions or area of planning areas or contents that are expected to be adjusted cause changes in structure and general developmental orientation of the planning area;

b) The overall adjustments shall satisfy actual requirements and be conformable with socio-economic development trend and developmental orientations of the planning area in the future, improve the quality of living environment, infrastructure and landscapes and ensure inheritance and without impacts on construction projects that are being carried out.

2.Partial adjustments to the construction planning (hereinafter referred to as "partial adjustments") shall be specified as follows:

a) Partial adjustments shall only apply to the planning for dedicated areas;

b) Partial adjustments shall be made if contents that are expected to be adjusted do not cause great impacts on features, functions, area and general developmental orientation of the planning region and main planning measures of the region under sector planning or detail planning;

c) Partial adjustments shall determine scope, extent and contents of adjustments; ensure the continuity and consistency of the general planning for dedicated areas, existing sector planning or detailed planning according to the analysis and clarification of reasons for adjustments; socio-economic efficiency of the adjustments and solutions to problems arising from the adjustments.

Article 38. Procedures for making overall adjustments to construction planning

1.According to the socio-economic development and factors affecting development of regions, dedicated areas, rural areas and conditions for adjustments, after the construction planning is reviewed, the authority formulating the construction planning shall request the competent authority approving this construction planning (“hereinafter referred to as “approving authority”) to consider making overall adjustments.

2.Authorities and individuals that have the power to approve the construction planning shall approve guidelines for overall adjustments.

3.The formulation of, consultation on, appraisal of and approval for the tasks and schemes of adjusted construction planning and the announcement thereof shall comply with Articles 16 and 17 and Sections 2, 3, 4 and 5 of this Chapter.

Article 39. Procedures for partial adjustments to construction planning

1.The formulating authority shall make a report on contents of and plans for partial adjustments and get public comments in areas subject to the adjustments and their surrounding areas that are affected directly and submit it to the approving authority for decision on partial adjustments.

2.Authorities and individuals that have the power to approve the construction planning shall decide the partial adjustments based on opinions given by the appraising authority.

3.The formulating authority shall update adjusted contents and specify them in dossiers on construction planning. Contents of the partial adjustments shall be published in accordance with regulations in Article 42 of this Law.

Section 7. IMPLEMENTATION OF CONSTRUCTION PLANNING

Article 40. Publishing of construction planning

1.A construction planning scheme shall be published within 30 days from the day on which it is approved.

2.Published information shall include basic contents of the planning scheme and administrative regulations according to the approved planning scheme, except for information related to national defense, security and state secrets.

3.Managing authorities shall update sufficiently the implementation of the approved planning scheme in order that competent authorities shall promptly notify it to organizations and individuals for supervision during the implementation.

Article 41. Responsibility to publish construction planning

1.Responsibility to publish the regional construction planning shall be specified as follows:

a) The Ministry of Construction shall take charge and cooperate with relevant People’s Committees of provinces in publishing the construction planning for inter-provincial regions approved by the Prime Minister;

b) People’s Committees of provinces located in the planning area shall publish the regional construction planning approved by the Prime Minister other than those prescribed in Point a of this Clause;

c) People’s Committees of districts and communes located in the planning area shall publish the regional construction planning approved by the People’s Committees of provinces.

2.Responsibility to publish the general planning for dedicated areas is specified as follows:

a) The Ministry of Construction shall take charge and cooperate with relevant People’s Committees of provinces in publishing the construction planning for inter-provincial dedicated areas approved by the Prime Minister;

b) People’s Committees shall publish general planning schemes for dedicated areas located in administrative divisions under their management.

3.People’s Committees shall publish schemes of sector planning and detailed planning for dedicated areas located in administrative divisions under their management in order that people shall implement and supervise the implementation of the planning.

4.People’s Committees of communes shall publish the construction planning for communes and rural residential quarters.

5.People’s Committees shall publish the construction planning within 30 days from the day on which it is approved.

6.If a person who is responsible for publishing the construction planning fails to publish, delays publishing or fails to publish the correct approved construction planning, depending on the extent of his/her violations, he/she will be disciplined, face criminal prosecution or compensate for damage (if any) in accordance with regulations of law.

Article 42. Forms of publishing of construction planning

1.Approved planning schemes shall be published on websites of managing authorities.

2.Apart from the form prescribed in Clause 1 of this Article, the construction planning may be published in the following forms:

a) Organizing a conference whose attendants include representatives of relevant authorities and organizations, representatives of Vietnamese Fatherland Front and representatives of residents in the planning area and new agencies;

b) Publicly, regularly and continuously displaying panels, drawings and mock-ups at public places and head offices of the managing authorities or head offices of People’s Committees of communes in case of detailed planning;

c) Printing and widely publishing maps of the construction planning and regulations on management of approved construction planning.

Article 43. Provision of information on construction planning

1.Information on construction planning shall be provided in the following forms:

a) Publishing of dossiers on construction planning schemes

b) Explanation for the construction planning;

c) Provision of written information.

2. The managing authority shall provide information on construction places, construction boundaries, red-line boundaries, elevation points and other information related to the construction planning at the request of organizations and individuals within scope of the planning scheme managed by them.

People’s Committees shall receive process and provide information upon request.

Within 15 days from the date of request, the managing authority shall provide written information for requesting authorities, organizations and individuals.

3. Authorities, organizations and individuals requesting the written information shall pay fee for those.

4. Authorities and organizations providing the information shall take legal responsibility for time for providing information and accuracy of provided information and data.

Article 44. Setting up construction boundary markers on the field

1. Construction boundary markers shall be set up in case of schemes of general planning, sector planning and detailed planning.

2. Construction boundary markers shall include red-line boundaries, construction boundaries, elevation points and boundaries of areas banned from construction according to the approved documents on boundary markers.

3. After construction planning schemes are approved by the competent authorities, People’s Committees shall:

a) Set up construction boundary markers and approve documents thereon according to the approved construction planning. Time limit for making and approving documents on boundary markers is 30 days from the day on which the planning scheme is approved. The construction markers shall be set up within 45 days from the day on which their documents are approved;

b) Set up construction markers on the field in case of detailed planning schemes after investors are selected.

4. Responsibility to set up construction boundary markers shall be specified as follows:

a) People’s Committees of provinces shall provide direction on setting up construction boundary markers for construction planning schemes located in their provinces;

b) People’s Committees of districts shall set up construction boundary markers for construction planning schemes located in their districts;

c) People’s Committees of communes shall set up construction boundary markers for construction planning schemes located in their communes;

5. Documents on boundary markers shall be made by specialized organizations.

6. A boundary marker shall be stable and have its dimension meet prescribed standards, be inscribed with information as prescribed, be conspicuous, safe for people and means of transport passing it and conformable with the terrain of areas where it is set up.

7. People’s Committees of communes shall protect construction boundary markers.

8. The managing authorities shall keep approved documents on boundary makers and provide documents related to the boundary markers for requesting organizations and individuals.

9. If the construction planning is adjusted, boundary markers will be adjusted according to the adjustments.

10. If a person fails to set up the boundary markers in the correct position, moves or destroys the boundary markers or elevation points, depending on the extent of his/her violations, he/she will be disciplined, subject to administrative penalties, face criminal prosecution or compensate for damage (if any) in accordance with regulations of law.

Section 8. CONSTRUCTION MANAGEMENT UNDER CONSTRUCTION PLANNING

Article 45. Principles of construction management under construction planning

1. The construction management shall be based on the construction planning approved by the competent authority.

2. The investment in construction, repair and renovation of architectural works, technical and social infrastructure works and houses shall be conformable with the approved detailed planning and comply with regulations of law on construction.

Article 46. Introduction of locations for construction

1. The managing authority shall introduce locations for construction to investors on demand.

2. Introduced locations shall be conformable with the construction planning, scale and characteristics of investment, shall save the land area for construction and not affect socio-economic development and environment of regions, dedicated areas and rural areas.

Article 47. Planning permits

1. A planning permit is a document issued to a project owner of a construction project in a dedicated area by the competent authority, which is used as a basis for formulating the detailed planning or planning the construction project in the cases where the sector planning or detailed planning has not been approved.

2. Issuance of planning permits shall be based on management requirements, development control of dedicated areas, technical regulations on construction planning and regulations on management according to the general planning of dedicated areas.

3. A planning permit shall contain the planning area, land use norms, requirements for land extraction and use, organization of architectural space, surface and underground technical and social infrastructures, landscape and environmental safety in the project areas and its period.

4. Power to issue planning permits is specified as follows:

a) People’s Committees of provinces shall issue planning permits for national construction projects in dedicated areas;

b) People’s Committees of districts shall issue planning permits for construction projects other than those prescribed in Point a of this Clause.

5. Organizations and individuals that obtain planning permits shall pay fees in accordance with regulations on fees.

6. The Government shall provide detailed regulations on contents of and procedures for issuance of planning permits.

Article 48. Management of construction planning

1. People’s Committee of each province shall provide direction on formulating programs and plans for implementation of urban and rural construction planning and the planning for dedicated areas in its area in accordance with the approved construction planning.

2. The Ministry of Construction shall regulate the management of the construction planning for inter-provincial regions. To be specific:

a) Determine the list of programs and plans for implementing prior projects on construction of regional technical and social infrastructure systems;

b) Attract and regulate investments in development of regional technical and social infrastructure systems;

c) Review, adjust and inspect the implementation of the construction planning for inter-provincial regions;

d) Take charge and cooperate with relevant People’s Committees of provinces in submitting a regular report on the implementation of construction planning for inter-provincial regions in each stage thereof to the Prime Minister.

3. Plans for implementation of the construction planning shall specify the time limit for carrying out the planning in each specific area in conformity with the planning objectives and resources for implementation of this planning.

Chapter III

CONSTRUCTION PROJECTS

Section 1. GENERAL PROVISIONS

Article 49. Classification of construction projects

1. Construction projects shall be classified according to scale, features, types of construction works and used sources of funding.

2. Construction projects classified according to scale, features, types of construction works shall include national projects, group-A projects, group-B projects and group-C projects based on criteria prescribed by law on public investment.

3. Construction projects shall include one or more different types of works in different grades.

Article 50. Procedures for construction

1. Procedures for construction shall include 03 stages namely preparation, execution and completion of projects to put works into use, except for construction of separate houses.

2. If national projects and group-A projects include different component projects and each of them can operate independently, be used or divided into different investment phases for implementation, such component projects shall be managed as independent projects. The division of component projects or investment phases shall be specified in the investment decisions.

3. According to specific conditions of a project, the project approver shall decide the execution of the project by taking turns, mixture or alternation of tasks at the stages of implementation and completion of the project to put works into use.

Article 51. Requirements for construction projects

Construction projects with all sources of funding shall:

1. Be conformable with master plans for socio-economic development, sectoral development planning, construction planning and land use plans in the areas where construction projects are carried out.

2. Have appropriate technological and construction design measures

3. Ensure quality and safety in construction, operation, extraction and use of works, ensure fire safety, environmental safety and response to climate change.

4. Ensure sufficient provision of funding on schedule and financial and socio-economic efficiency of projects

5. Comply with relevant regulations of law.

Section 2. PLANNING AND APPRAISAL OF CONSTRUCTION PROJECTS AND DECISION ON CONSTRUCTION

Article 52. Planning of construction projects

1. When carrying out construction, a project owner shall make a FSR, except for the projects prescribed in Clauses 3 and 4 of this Article. Contents of the FSR shall be conformable with requirements of each project. The FSR shall be made in accordance with regulations of this Law and other relevant regulations of law.

2. In case of a national or group-A project, the project owner shall make a PFSR before making the FSR. If other construction projects require PFSRs, the project approver will consider deciding this issue.

3. The following project shall only require technical and economic reports:

a) Construction works for religious purposes;

b) Small construction works and other works prescribed by the Government.

4. In case of construction of separate houses, project owners are not required to formulate the construction planning or make technical and economic reports.

Article 53. Contents of PFSRs

1. Necessity of investment and conditions for construction.

2. Proposal for objectives, scale, locations and forms of construction.

3. Demand for using land and resources.

4. Suitable measures for preliminary designs in terms of construction, description, technology, technique and equipment.

5. Expected time for carrying out projects.

6. Preliminary investments and plans for raising capital; capacity for paying loans (if any); preliminary socio-economic efficiency and assessment of project impacts.

Article 54. Contents of FSRs

1. Basic designs shall be made to obtain project objectives in conformity with construction works and ensure the consistency of construction works when they are put into use. A basic design shall include descriptions and drawings specifying the following contents:

a) The construction location, direction of construction route, lists, scales, types and grades of works of the project;

b) Selected technological, technical and equipment plans (if any);

c) Measures for architecture, site, cross sections and elevations of construction works, their dimensions and main structures;

d) Measures for construction, major materials to be used, estimated cost of each work;

dd) Plan for creating connection between inside and outside technical infrastructure, measures for fire safety;

e) Applied technical standards and regulation and results of construction survey for creating basic designs.

2. Other contents of a FSRs shall include:

a) Necessity for investment, investment guidelines and objectives, construction locations, area of used land, capacity and forms of construction;

b) Capability to ensure factors for project execution such as use of resources, selection of equipment and technology, use of labor, technical infrastructure, product consumption, requirements for extraction and use of works, period of implementation, plan for site clearance and relocation (if any), measures for management of project implementation, operation and use of works and environmental safety;

c) Assessment of impacts of the project related to land expropriation; site clearance and relocation; protection of landscape and ecological environment and safety in construction, fire safety and other necessary contents;

d) Total investments and raised capital, financial analysis, risks, expenses for extraction and use of works, evaluation of socio-economic efficiency of the project; proposal for cooperation mechanism, policies on incentives for and assistance in project implementation;

Dd) Other relevant contents

Article 55. Contents of economic and technical reports

1. A design for shop drawing, a technological design (if any) and a cost estimate of construction works (herein after referred to as “cost estimate”)

2. Apart from the abovementioned contents, an economic and technical report shall contain description of necessity for investment, construction objectives, construction locations, area of used land, scale, capacity and grades of works, construction measures, construction safety, plans for site clearance and environmental safety, allocation of funding for project implementation, construction period and investment efficiency.

Article 56. Appraisal of construction project (hereinafter referred to as “project appraisal”)

1. Construction projects shall be appraised before decision on investment.

2. An application for project appraisal shall consist of:

a) The project owner’s statement on project appraisal;

b) A FSR or an economic and technical report;

c) Other relevant documents.

3. Contents of project appraisal shall comply with regulations of Article 58 of this Law.

Article 57. Power to carry out project appraisals

1. With regard to national projects, the state appraising council established by the Prime Minister shall appraise PFSRs and FSRs.

2. With regard to projects funded by the state budget, construction authorities, within their assigned tasks, shall take charge of appraising the contents prescribed in Article 58 of this Law.

3. With regard to projects using off-budget funds, the power to appraise construction projects shall be specified as follows:

a) Construction authorities shall take charge of appraising basic designs prescribed in Points a, b, d, dd, e and g Clause 2 of Article 58 of this Law;

b) Specialized authorities assigned by project approvers shall take charge of appraising technological designs (if any) and other contents of FSRs.

4. With regard to projects using other sources of funding, the power to appraise construction projects shall be specified as follows:

a) Construction authorities shall appraise basic designs for construction projects on special works, grade-I works, public works and works creating great impacts on landscape, environment and community safety. Specialized authorities assigned by project approvers shall take charge of appraising technological designs (if any) and other contents of FSRs.

b) Project approvers shall organize appraisals of projects that are not mentioned in Point a of this Clause;

c) With regard to a project carried out under a project contract or a PPP contract funded by the state budget, the construction authority shall take charge of appraising its basic design. The competent authorities, as prescribed by law, shall appraise other contents of its FSR.

5. With regard to a project only requiring an economic and technical report, the power to appraise the construction project shall be specified as follows:

a) If the project is funded by the state budget, the construction authority shall take charge of appraising contents of the economic and technical report prescribed in Clause 4 Article 58 of this Law;

b) If the project uses off-budget funds, the construction authority shall take charge of appraising shop drawing design and its cost estimate. The authority assigned by the project approver shall take charge of appraising technological designs (if any) and other contents of the economic and technical report;

c) If the project uses other sources of funding, the project approver and project owner shall organize the appraisal of design for shop drawing and the cost estimate, except for special works, grade I works and works creating great impacts on landscapes, environment and community safety and take responsibility for appraised contents.

6. Projects requiring fire safety, environmental safety and national defense and security shall be appraised by competent authorities.

7. Construction authorities, project approvers may invite professional and experienced organizations and individuals to carry out project appraisals or request project owners to select organizations and individuals that are eligible for carrying out construction activities or practicing construction and have been registered on the website of construction capacity as prescribed by this Law to carry out project appraisals and use it as a basis for the appraisal of and approval for the projects. Costs of verification and appraisal of projects and basic designs shall be added to the total investments of the projects.

8. The authority in charge of project appraisal shall consolidate results of the project appraisal and submit them to the project approver for consideration and decision.

9. Organizations and individuals engaging in project appraisal or verification shall take legal responsibility for the appraisal results. Organizations and individuals planning projects shall not appraise their projects.

Article 58. Contents of project appraisals

1. A project appraisal shall include appraisal of basic design and other contents of a FSR.

2. A basic design shall be appraised in term of:

a) Conformity of the basic design with the detailed planning, the approved entire site or with the selected plan for construction route in case of route-based works;

b) Conformity of the basic design with the construction location and capability to connect with technical infrastructure of the region;

c) Conformity of selected technological measures and lines with construction works requiring technical designs;

d) Conformity of designed measures for construction safety, environmental safety and fire safety;

dd) Compliance with standards and technical regulations related to design activities;

e) Eligibility for carrying out construction activities of organizations and practice ability of individuals providing consultancy on creation of designs;

g) Conformity of measures for carrying out projects in each stage and work items with requirements of the basic design.

3. Other contents of a FSR shall include:

a) Assessment of necessity for investment including conformity with investment guidelines, capability to meet demands for increase in scale, capacity and use ability to satisfy requirements for socio-economic development and ensure national defense and security for certain periods;

b) Assessment of factors ensuring the project feasibility, including conformity with sectoral development master plan and construction planning; the capability to meet demands for land use and site clearance ; demands for using resources (if any); assurance about input elements and outlets for the project’s products; measures for carrying out project; project owner’s experience of management; measures for environmental safety, fire safety; assurance about national defense and security and other factors;

c) Assessment of factors ensuring the project efficiency including total investments, project progress; extraction and operation costs; capability to raise capital on schedule, risk analysis, financial efficiency and socio-economic efficiency of the project.

4. If a project only requires economic and technical report as prescribed in Clause 3 of Article 52 of this Law, project appraisal will include:

a) Assessment of necessity for investment, scale of investment; implementation period; total investments and socio-economic efficiency;

b) Consideration of factors ensuring the project feasibility including demands for using land and capability for site clearance; factors affecting the work such as national defense, security, environment and other relevant regulations of law;

c) Reasonableness of measures for construction design; compliance with applied standards, technical regulations and regulations of law on use of building materials for construction works; reasonableness of selection of technological lines and equipment in case of projects requiring for technology; compliance with regulations on environmental safety and fire safety;

d) Assessment of conformity of measures for construction design with utility, safety level of the work and assurance about safety for surrounding works;

dd) Assessment of conformity of the major construction volume specified in the cost estimate and the construction volume in the construction design; the properness and reasonableness of application of construction norms and unit prices; determination of value of the cost estimate;

e) Eligibility for carrying out construction activities of organizations and individuals carrying out construction surveys, creating construction design and making economic and technical reports.

Article 59. Time limit for project appraisals

Time limit for project appraisal shall be counted from the day on which the valid application is received by the appraising authority. To be specific:

1. Time limit for appraisal of national projects is 90 days;

2. Time limit for appraisal of group-A projects is 40 days;

3. Time limit for appraisal of group-B projects is 30 days;

4. Time limit for appraisal of group-C projects and projects only requiring construction economic and technical is 20 days;

5. In case of extension of appraisal, the appraising authority shall report this issue to its supervisory authority for decision on the extension. The extension shall not exceed the time limit for appraisal prescribed in Clause 1, 2, 3 and 4 of this Article.

Article 60. Power to decide construction

1. If a construction project funded by state budget, national public bonds, government bonds or local government bonds, official development assistance, preferential loans from foreign donors, the State development investment credit, investments from revenues left for investment but not accounted into the state budget balance, or other loans from local budgets for investment, the power to decide construction shall comply with regulations of law on public investment.

2. If a construction project is funded by the Government-guaranteed credit, loans guaranteed by the state property, investment and development funds of state enterprises, funds for developing public services, and value of land use rights contributed by state authorities, organizations or enterprises as investments in construction, the power to decide construction shall be specified as follows:

a) The Prime Minister shall decide to invest in projects that are significant for the country;

b) Legal representatives of authorities, organizations and enterprises shall decide to invest in other construction projects as prescribed by law.

3. Project owners or their representatives shall decide to invest in construction projects using other sources of funding within their power in accordance with regulations of law.

Article 61. Adjustments to construction projects

1. Adjustments to a construction project funded by the state budget will be made if:

a) The project faces disasters, environmental incidents, enemy sabotage, fire or other force majeure factors;

b) There is the existence of more efficient factors for the project and financial and socio-economic efficiency of the adjustments has been proved by the project owner;

c) Changes in the construction planning cause direct effects on the construction project;

d) The construction cost index published by the Ministry of Construction and People’s Committees of province in the period of project is greater than those used for calculation of inflation in the approved total investments.

2. Adjustments to a construction project funded by the state budget shall be decided by the project approver.

3. Adjustments to a project using other investments shall be decided by the project approver based on requirements for construction planning, safety, environmental safety, fire safety, and national defense and security, which have been approved by competent authorities.

4. The adjustments causing changes in project objectives, scale and locations shall be approved by the competent authority.

5. Adjustments to construction projects shall be appraised and approved.

6. The Government shall provide detailed guidance on making, appraising and approving adjustments to construction projects.

Article 3. MANAGEMENT OF CONSTRUCTION PROJECTS

Article 62. Forms of management of construction projects

According to scale, features, sources of funding of and conditions for a construction project, the project approver shall use one of the following forms for managing the construction project:

1. Establishing a specialized management board or an area-based management board if the project is funded by the state budget or specialized projects funded by off-budget funds of state corporations and parent companies.

2. Establishing a single-project management board in case of the group-A projects funded by the state budget involving special works; projects using hi-tech certified in writing by the Minister of Science and Technology or national defense or security projects with state secret requirements.

3. Hiring consultants on project management in case of projects using off-budget capital and other type of investments

4. Using its affiliated specialized system that is eligible for managing small renovation or repair of projects and projects with the involvement of communities.

5. The management board of the construction project and project management consultants prescribed in Clause 1, 2 and 3 of this Article shall satisfy conditions prescribed in Article 152 of this Law.

6. The Government shall provide detailed guidance on models, organization and operation of management boards of construction projects.

Article 63. Specialized management boards and area-based management boards

1. Ministers, heads of ministerial agencies, Chairmen/Chairwomen of People’s Committees of provinces, Chairmen/Chairwomen of People’s Committees of districts or competent representatives of state enterprises shall decide to establish specialized management boards and area-based management boards that shall manage certain projects of the same sector or in the same construction route or same area.

2. A specialized management board or an area-based management board shall be assigned to work as the project owner of certain projects and carry out functions and tasks related to the project management and engage in providing consultancy on project management if necessary.

3. A specialized management board or area-based management board shall:

a) Exercise rights and carry out duties of the project owner as prescribed in Article 68 of this Law, manage projects assigned by the project approver and exercise the rights and carry out the duties prescribed in Article 69 of this Law;

b) Transfer works to authorities and organizations for operation and use or directly operate and use works if it is assigned by the project approver if necessary.

4. Specialized management boards or area-based management boards may provide consultancy on management of other projects on request and exercise the rights and carry out the duties prescribed in Article 70 of this Law.

Article 64. Single-project management board

1. A project owner shall establish a single-project management board to manage one of the projects prescribed in Clause 2 Article 62 of this Law.

2. A single-project management board shall have its own seal and account and exercise rights and carry out duties under the project owner’s authorization. Organizational structure of a single-project management board shall include Director(s), Deputy Director(s) and professional staffs depending on requirements and features of the project. The project owner shall decide whether members of the project management board work full-time or part-time.

Article 65. Hiring consultants on project management

1. A project owner shall sign a consulting contract for project management with an organization or individual that is eligible for carrying out construction activities in accordance with regulations of this Law to work one, multiple or all tasks of project management.

2. The project owner shall supervise the consultancy on project management and may authorize consultants to carry out tasks of project management according the contract for project management.

Article 66. Contents of project management

1. Project management shall include management of scope, plan, workload, construction quality, construction schedule, expenditures on construction, occupational safety in construction, environmental safety; selection of contractor and types of construction contracts, risks, information system and other necessary contents as prescribed in this Law and other relevant regulations of law.

2. Project owners shall carry out or assign project management boards, consultants on project management or general contractors (if any) to carry out some or all of the contents of project management prescribed in Clause 1 of this Article.

Article 67. Management of construction schedule

1. Project approvers shall decide time and schedule for carrying out project as soon as approving them. Schedule of construction works under projects funded by the state budget shall not exceed their construction period that has been approved by competent people.

2. Project owners and construction contractors shall formulate plans for schedule of and measures for construction and management of construction projects according to the approved construction schedules.

3. Project owners shall give advances and make payments for works completed on schedules of construction contracts.

4. Project owners and construction contractors are encouraged to propose and apply technical and technological measures and manage projects reasonably to shorten the construction time.

Section 4. RIGHTS AND RESPONSIBILITIES OF PROJECT OWNERS, PROJECT MANEGEMENT BOARDS, CONSULTANCY CONTRACTORS AND INVESTMENT DICISION MAKERS

Article 68. Rights and responsibilities of project owners related to planning and management of construction projects

1. A project owners is entitled to:

a) Set up and manage projects in case of eligibility in accordance with regulations of this Law;

b) Request relevant authorities and organizations to provide information and documents related to formulation and management of construction projects;

c) Select and sign a contract with a consultancy contractor to plan and manage the construction projects;

d) Plan and manage its construction projects ; decide to establish or dissolve single-project management boards within its power; and

dd) Other rights as prescribed by law.

2. A project owner shall:

a) Determine requirements for and contents of planning of construction projects; provide necessary information and documents in case of hiring consultants on setting up construction projects;

b) Select eligible consultants on setting up the construction project in accordance with regulations of this Law;

c) Take responsibility for legal bases and accuracy of information and documents provided for consultants when planning the construction projects; submit construction projects to the competent authority for approval in accordance with regulations of law;

d) Select qualified and experienced consultants to verify construction projects at the request of appraising authorities and project approvers;

dd) Conduct the project management as prescribed in Article 66 of this Law;

e) Inspect and supervise the execution of construction projects; submit reports on the execution of construction projects to the project approvers and competent authorities;

g) Receive payback and repay loans if construction projects require payback and repayment of loans; and

h) Carry out other responsibilities as prescribed by law.

Article 69. Rights and responsibilities of project management boards

1. A project management board is entitled to:

a) Exercise rights to manage construction projects under the project owner’s authorization;

b) Propose measures for organize project management, request the project owner to solve problems exceeding its power;

c) Hire consultants to manage construction projects if necessary after receiving consents from project approvers and project owners.

2. A project management board shall:

a) Carry out responsibilities of the project owner for project management within its authorized power;

b) Organize the project management to satisfy requirements for construction schedule, quality and expenditures, occupational safety and environmental safety in construction;

c) Submit reports to the project owners during the project management;

d) Take responsibility for violations of law related to project management;

dd) Other responsibilities as prescribed by law.

Article 70. Rights and responsibilities of consultancy contractors)

1. A consultancy contractor is entitled to:

a) Request the project owner to provide information and documents related to assigned consulting task;

b) Have intellectual property rights of its consulting products protected in accordance with regulations of law;

c) Reject illegal requests of the project owner;

dd) Exercise other rights prescribed in the consulting contract and relevant regulations of law.

2. A consultancy contractor shall:

a) Carry out responsibilities specified in the contract that has been signed in conformity with eligibility for construction activities in accordance with regulations of law;

b) Take responsibility for quality of work according to the signed contract;

c) Pay compensations for unconformable use of information, documents, standard, technical regulations, technical solutions and unconformable management and violations of the contract that cause damage to the project owner;

dd) Exercise other rights prescribed in the consulting contract and relevant regulations of law.

Article 71. Rights and responsibilities of appraising authorities

1. An appraising authority is entitled to:

a) Request the project owner, relevant organizations and individuals to provide information for project appraisal and explanation if necessary;

b) Collect fees for project appraisal in accordance with regulations of fees;

c) Request the project owner to hire qualified and experienced consulting organizations or consultants to engage in project appraisal if necessary;

d) Maintain its appraisal opinions, refuse to satisfy requirements that falsify results of project appraisal.

2. An appraising authority shall:

a) Appraise contents of construction projects in accordance with regulations of this Law;

b) Notify opinions on and results of the project appraisal in writing to authorities and organizations in charge of project appraisal that shall consolidate them and send a report to the project approver;

c) Take legal responsibility and be accountable to the project approver for its opinions on and results of project appraisal.

Article 72. Rights and responsibilities of project approvers

1. A project approver is entitled to:

a) Approve or authorize approval of construction projects, designs and cost estimates of project and make a cost statement of constructions;;

b) Refuse to approve projects that fail to satisfy investment objectives and project efficiency;

c) Suspend the execution of construction projects that have been approved or executed if necessary in accordance with regulations of law;

d) Change and adjust construction projects if necessary in accordance with regulations in Article 61 of this Law;

dd) Exercise other rights prescribed by law.

2. A project approver shall:

a) Organize the project appraisal and make a decision on construction;

b) Ensure sources of funding for carrying out construction projects;

c) Inspect the execution of construction projects by project owners; supervise and assess construction projects in accordance with regulations in Article 8 of this Law;

d) Approve the cost statement of completed construction works;

dd) Take legal responsibility for his/her decision;

e) Carry out other responsibilities prescribed by law.

Chapter IV

CONSTRUCTION SURVEY AND DESIGNS

Section 1. CONSTRUCTION SURVEY

Article 73. Types of construction survey

1. Topographic survey.

2. Engineering geological survey.

3. Hydrogeologyical survey

4. Survey on condition of construction works.

5. Other survey activities for construction decided by project approvers

Article 74. Requirements for construction survey

1. Tasks of and technical measures for construction survey shall be proposed in conformity with types and grades of construction works, types of construction survey, stages of construction design and requirements for making construction designs.

2. Technical measures for construction survey shall satisfy requirements of tasks of construction survey and comply with applied standard and technical regulations on construction survey.

3. Construction survey shall comply with technical measures for construction survey, ensure safety and environmental safety, satisfy requirements for approved tasks of construction survey and be inspected, supervised and subject to commissioning in accordance with regulations of law.

4. Results of construction survey shall be specified in a report and ensure truthfulness and objectivity, reflection of reality and shall be approved.

5. Contractors carrying out construction survey shall be eligible and conformable with types and grades of construction works and types of construction survey.

Article 75. Main contents of reports on results of construction survey

1. Bases, procedures and measures for construction survey.

2. Survey data; analysis and assessment of survey results

3. Conclusions in term of survey results and proposals.

Article 76. Rights and responsibilities of project owners related to construction survey

1. A project owner is entitled to:

a) Carry out construction survey in case of eligibility;

b) Negotiate and sign contracts for construction survey; supervise and request contractors of construction survey to comply with signed contracts;

c) Approve tasks of construction survey and technical measures for construction survey proposed by consultants on construction design or contractors of construction survey and assign tasks of construction survey to the construction contractors;

d) Adjust tasks of construction survey at reasonable requests of consultants on construction design;

dd) Suspend the execution or terminate contracts for construction survey in accordance with regulations of law;

e) Exercise other rights prescribed by law.

2. A project owner shall:

a) Select contractors conducting construction survey and supervising the construction survey in the cases where the project investor does not carry out these activities;

b) Provide contractors conducting construction survey with information and documents related to the construction survey;

c) Set requirements for construction survey and facilitate the performance of tasks by contractors conducting construction survey;

d) Comply with signed contracts for construction survey;

dd) Supervise the construction survey; carry out commissioning and approve survey results in accordance with regulations of law;

e) Pay compensations for provision of unconformable information and documents or violations of contracts for construction survey;

g) Carry out other responsibilities prescribed in contracts for construction survey and relevant regulations of law.

Article 77. Rights and responsibilities of contractors conducting construction survey

1. A contractor conducting construction survey is entitled to:

a) Request the project owner and relevant parties to provide relevant information and documents in accordance with contracts to carry out the construction survey;

b) Refuse to satisfy requirements outside contracts for construction survey;

c) Hire subcontractors to carry out construction survey in accordance with regulations of contracts for construction survey;

d) Exercise other rights prescribed in contracts for construction survey and relevant regulations of law.

2. A contractor conducting construction survey shall:

a) Comply with requirements for construction survey prescribed in this Law and contracts for construction survey;

b) Propose and add tasks of construction survey if there are factors affecting directly design solutions;

c) Take responsibility for results and quality of the construction survey conducted by it and take responsibility for managing quality of construction survey by subcontractors (if any) and their results of construction survey. Subcontractors conducting the construction survey shall take legal responsibility and be accountable to contractors for results of the construction survey;

d) Pay compensations for improper performance of tasks of construction survey and unconformable use of information, documents, standard, technical regulations related to construction survey and violations of contracts for construction survey

dd) Carry out other responsibilities prescribed in contracts for construction survey and relevant regulations of law.

Section 2. CONSTRUCTION DESIGNS

Article 78. General provisions on construction designs

1. Construction designs shall include preliminary designs specified in PFSRs, basic designs specified in FSRs, technical designs, shop drawing designs in the project period and other designing steps (if any) in accordance with international practice.

2. A construction design shall be created in one or multiple steps, which depends on scale, features, types and grades of construction works. Project approvers shall decide quantity of designing steps when approving construction projects.

3. Construction designs shall be created in one or multiple steps as follows:

a) One-step design shall include design for shop drawing;

b) Two-step design shall include 2 steps namely basic design and design for shop drawing;

c) Three-step design shall include 3 steps namely basic design, technical design and design for shop drawing;

d) Designs including other steps (if any).

4. A dossier on construction design following the basic design shall consist of design descriptions, design drawings, relevant documents on construction survey, cost estimate and technical instructions (if any).

5. The Government shall provide detailed guidance on steps of construction design, appraisal of and approval for construction designs.

Article 79. Requirements for construction designs

1. Construction designs shall satisfy requirements for construction design tasks, be conformable with approved contents of construction projects, construction planning, landscape and architecture, natural conditions, culture and society in the local areas.

2. Contents of construction designs shall satisfy requirements of each designing step.

3. Construction designs shall comply with applied standards, technical regulations, regulations of law on use of building materials for construction works; satisfy requirements for utility and applied technology (if any); ensure the structural safety, safety in use, aesthetic, environmental safety, response to climate change, fire safety, and other safety conditions.

4. Construction designs shall have suitable designing measures and reasonable costs of construction; ensure the consistency in each work and with relevant works; ensure the convenience, hygiene and health for users; enable people with disabilities, the elderly and children to use works; exploit advantages and reduce disadvantages of natural conditions; give priority to use local and eco-friendly materials.

5. Construction designs shall be appraised and approved in accordance with regulations of this Law, except for the constructions designs prescribed in Clause 7 of this Article.

6. Contractors creating construction design shall be eligible and conformable with types and grades of construction works and their tasks.

7. Construction designs for separate houses shall be specified as follows:

a) Construction designs for separate houses shall fulfill requirements prescribed in Clause 3 of this Article;

b) A household may design a separate house whose gross floor area is less than 250 m2 or a separate house having fewer than three floors or a height of less than12 meters in accordance with approved construction planning and shall take legal responsibility for design quality, impacts of construction works on environment and safety of adjacent works.

Article 80. Main contents of construction designs developed following basic designs

1. Architectural plan

2. Technical plans (if any).

3. Utilities.

4. Service life, process of operation and maintenance of construction works.

5. Structural plans and major building materials.

6. Technical structure.

7. Plans for fire safety.

8. Plans for saving and using energy efficiently.

9. Plans for environmental safety and response to climate change.

10. Cost estimates of construction in accordance with steps of construction designs.

Article 81. Contests for and selection of architectural designers of construction works

1. In case of large public works requiring particular architecture, contests for or selection of architectural design for construction works (hereinafter referred to as “architectural design”) shall be organized before FSRs are made. The project approver shall make a decision on contests for or selection of architectural design for construction works.

2. Cost of contests for and selection of architectural designs shall be added to total investments of projects.

3. Architectural designers who win the contests or are selected may have their copyright protected and be given priority to set up construction projects and create construction designs in case of eligibility as prescribed by law.

4. The Government shall provide detailed guidance on contests for and selection of architectural designs for construction works.

Article 82. Power to appraise, approve technical designs, shop drawing designs and cost estimates of construction projects

1. With regard to construction works funded by the state budget:

a) Assigned construction authorities shall take charge and appraise technical designs and cost estimates of construction projects in case of three-step designs; appraise shop drawing designs and cost estimates of construction projects in case of two-step designs;

b) Project approvers shall approve technical designs and cost estimates in case of three-step designs; approve shop drawing designs and cost estimates in case of two-step designs;

2. With regard to construction works using off-budget capital:

a) Assigned construction authorities shall take charge and appraise technical designs and cost estimates in case of three-step designs; appraise shop drawing designs and cost estimates of construction projects in case of two-step designs. Technological designs and other contents (if any) shall be appraised by specialized authorities assigned by project approvers;

b) Project approvers shall approve technical designs and cost estimates of construction projects and project owners shall approve shop drawing designs in case of three-step designs. Projects owners shall approve designs for shop drawing and cost estimates in case of two-step designs.

3. With regard to construction works using other sources of funding:

a) Assigned construction authorities shall take charge and appraise technical designs and cost estimates in case of three-step designs; appraise shop drawing designs in cases of two-step designs for special construction works, grade 1 construction works, public works and construction works creating great impacts on landscape, environment and community safety. Technological designs and other contents (if any) shall be appraised by specialized authorities assigned by project approvers;

b) Specialized authorities assigned by project approvers shall appraise technical designs, shop drawing designs and cost estimates in case of remaining construction works;

c) Project approvers and project owners shall approve construction designs and cost estimates.

4. Construction authorities and project approvers may invite qualified and experienced organizations and individuals to engage in appraisal of construction designs or request project owners to select organizations and individuals that are eligible for construction and have been registered on the website of construction capacity as prescribed by this Law to inspect construction designs and use it as a basis for the appraisal of and approval for the projects. Expenses for appraisal of and approval for construction designs and cost estimates shall be added to total investments of projects.

5. The competent authorities, as prescribed by law, shall appraise contents related to environment, fire safety and other contents in accordance with regulations of law when appraising construction designs.

6. Authorities, organizations and individuals that verify, appraise and approve construction designs and cost estimates shall take legal responsibility for results of verification and appraisal of and approval for construction designs and cost estimates of construction projects carried by them.

Article 83. Contents of appraisal of construction designs created after basic designs and appraisal of cost estimates of construction projects

1. Conformity of a designing step with its previous designing steps. To be specific:

a) Conformity of technical designs with basic designs;

b) Conformity of shop drawing designs with technical designs in case of three-step designs, with basic designs in case of two-step design or with tasks of construction design in case of one-step design.

2. Reasonableness of measures for construction designs.

3. Compliance with applied standards, technical regulations and regulations of law on use of building materials for construction works.

4. Assessment of conformity of measures for construction design with utility, safety level of a construction work and assurance about safety for surrounding works;

5. Reasonableness of selection of technological lines and equipment in case of projects requiring for technology;

6. Compliance with regulations on environmental safety and fire safety;

7. Conformity between the major construction volume specified in the cost estimate and those specified in the construction design; the properness and reasonableness of application of construction norms and unit prices; determination of value of the cost estimates.

8. Ability of organizations and individuals conducting construction survey and designs.

Article 84. Adjustments to construction designs

1. An approved construction design will be only adjusted if:

a) Adjustments to construction projects require adjustments to construction designs;

b) During the execution of construction projects, construction designs need to be adjusted to ensure quality of construction works and efficiency of construction projects.

2. In case of adjustments to construction designs prescribed in Clause 1 of this Article, if there are changes in geology of construction works, designed loading capacity, structural solutions, materials of bearing structures or measures for construction affecting structural safety of works, such adjustments shall be appraised and approved in accordance with Article 82 of this Law.

Article 85. Rights and responsibilities of project owners related to construction designs

1. A project owner is entitled to:

a) Create construction designs if it has operating and practicing capacity in conformity with types and grades of construction works;

b) Negotiate and sign contracts for construction design; supervise and request contractors creating construction designs to comply with signed contracts;

c) Request contractors creating construction designs to adjust and supplement construction designs or select other contractors to adjust, supplement and change construction designs if the first contractor refuse to carry out the abovementioned tasks;

d) Suspend or terminate contracts for construction designs in accordance with regulations of the contracts and relevant regulations of law;

dd) Other rights prescribed in contracts for construction design and relevant regulations of law.

2. A project owner shall:

a) Select contractors creating construction design if it does not self-create construction projects;

b) Determine tasks of construction designs;

c) Provide sufficient information and documents to contractors creating construction designs;

d) Comply with signed contracts for construction design;

dd) Submit construction designs and cost estimates for appraisal and approval and pay fees for appraisal thereof;

e) Retain dossiers on construction designs;

g) Pay compensations for violations of contracts for construction design;

h) Other responsibilities prescribed in contracts for construction design and relevant regulations of law.

Article 86. Rights and responsibilities of contractors creating construction designs

1. A contractor creating construction designs is entitled to:

a) Request project owners and relevant parties to provide information and documents for construction designs;

b) Refuse to satisfy requirements out of tasks of construction designs and contracts for construction designs;

c) Have the copyright on construction designs

d) Hire subcontractors to create construction designs in accordance with contracts for construction design

dd) Exercise other rights prescribed in contracts for construction design and relevant regulations of law.

2. A contractor creating construction design shall:

a) Only contract to create construction designs in conformity with its operating and practicing capacity;

b) Comply with standards and technical regulations applicable to construction works; prepare dossiers on construction designs according to requirements of tasks and steps of construction designs, contracts for construction design and relevant regulations of law;

c) Take responsibility for quality of its construction designs that include the contents prescribed in Articles 79 and 80 of this Law; take responsibility for quality of construction designs created by subcontractors (if any). Subcontractors engaging in construction design shall take legal responsibility and be accountable to contractors for results of construction designs.

d) Supervise construction designers during the construction;

dd) Not appoint suppliers of building materials and equipment in construction designs for works funded by the state budget;

e) Pay compensations for unconformable tasks of construction survey, unconformable use of information, documents, standards, construction regulations, technical and technological measures that affect quality of construction works and violations of contracts for construction design;

g) Carry out other responsibilities prescribed in contracts for construction design and relevant regulations of law.

Article 87. Rights and responsibilities of authorities and organizations appraising construction designs and cost estimates

1. An authority or organization appraising construction designs and cost estimates is entitled to:

a) Request project owners, relevant organizations and individuals to provide information and documents for appraisal of construction designs and cost estimates and provide explanations if necessary;

b) Collect fees for appraising construction designs and cost estimates in accordance with regulations of law on fees;

c) Invite experts to carry out appraisal or request project owners to select eligible consulting organizations to verify construction designs and cost estimates to use them as a basic for appraisal if necessary;

d) Maintain its appraisal opinions and refuse to satisfy requirements that falsify results of project appraisal.

2. An authority or organization appraising construction designs and cost estimates shall:

a) Appraise contents of construction designs and cost estimates in accordance with regulations of this Law;

b) Notify opinions on and results of the appraisal in writing to authorities and organizations in charge of appraisal that shall consolidate them and send a report to the project approver;

c) Take legal responsibility and be accountable to the project approver for its opinions on and results of appraisal of construction designs and cost estimates.

Article 88. Retention of dossiers on construction works

1. Project owners shall retain dossiers on completed construction works. Contractors engaging in construction activities shall retain dossiers on tasks carried out by them.

2. Documents for management and use of construction works shall be retained by managers or users of these works for the minimum period equal to their service life in accordance with regulations of law.

3. Dossiers on construction works shall be prepared and retained in accordance with regulations of law on keeping documents.

4. The Government shall provide detailed guidance on keeping dossiers on construction works.

Chapter V

BUILDING PERMITS

Article 89. Subjects and types of building permits

1. Before initiating construction works, project owners shall obtain building permits issued by competent authorities in accordance with regulations of this Law, except for the construction works prescribed in Clause 2 of this Article.

2. Construction works that are exempt from building limits include:

a) State-secret works, urgent works and works located in the territories of two provinces or more;

b) Works of construction projects that are invested by the Prime Minister, Ministers, heads of ministerial authorities, Chairmen/Chairwomen of People’s Committees;

c) Makeshift construction works temporarily serving construction of main works;

d) Route-based works constructed outside urban areas that are conformable with the construction planning approved by competent authorities or whose direction has been approved by competent authorities;

dd) Works of construction projects on industrial parks, export processing zones and hi- tech parks whose detailed planning with scale of 1:500 have been approved by competent authorities and construction designs have been appraised in accordance with this Law;

e) Houses of projects on urban development and projects on housing development that have under 7 floors, their gross floor area of under 500 m²and detailed planning whose scale is 1:500 that has been approved by competent authorities;

g) Works undergoing repair, renovation or installation of interior equipment which does not change their bearing structure and utilities and affect the environment and safety of these works;

h) Works undergoing repair or renovation which changes their external architecture not facing roads in urban centers and subject to architecture management requirements;

i) Rural infrastructure works that only require economic and technical reports and are located in regions whose detailed planning for residential quarters has not been approved;

k) Rural construction works located in regions whose urban planning and detailed planning have not been approved; rural separate houses; except for those constructed in conservation areas or historical and cultural relic areas; and

l) Project owners that are exempt from building permits as prescribed in Point b d, dd and i of this Clause shall notify initiation time of works and submit dossiers on construction designs to local authorities managing construction activities for monitoring and keeping dossiers.

3. Building permits include:

a) Permits for new construction;

b) Permits for repair and renovation of construction works

c) Permits for relocation of construction works.

4. Special and grade-1construction works shall be issued with construction permits in the stage when construction designs are approved in accordance with regulations of this Law.

5. If a construction project includes more than one construction work, building permits shall be issued to one, multiple or all construction works in the cases where technical infrastructure of the construction area has been built according to the construction planning approved by competent authorities.

Article 90. Main contents of building permits

1. Name of the construction work

2. The project owner’s name and address.

3. Locations of the construction work, construction routes in case of route-based construction works

4. Type and grade of the construction work

5. Elevation point.

6. Red-line boundary, construction boundary.

7. Density of construction (if any).

8. Land use coefficient (if any).

9. In case of civil works, industrial works and separate houses, apart from contents specified from Clause 1 to Clause 8 of this Article, their building permits shall contain total construction area, construction area of the first (ground) floor, number of floors (including basements, attics, technical floors and staircase roof), and maximum height of the entire work.

10. Time limit for initiating construction works is 12 months from the day on which the building permit is issued.

Article 91. Conditions for issuance of building permits for urban construction works

1. Construction works are conformable with detailed planning approved by competent authorities. If works are constructed in stable areas or street routes in urban centers which have no detailed planning, they must be conformable with regulations on management of urban planning, urban architecture or urban designs issued by competent authorities.

2. Construction works are conformable with land use purposes prescribed in approved land use master plans.

3. The safety of construction works and their surrounding works are ensured. Construction works satisfy requirements for environmental safety and fire safety; ensure safety for technical infrastructure and protection corridors of irrigation works, dikes, energy works, traffic works, cultural heritage areas, historical-cultural relics and ensure safe distance to flammable and hazardous works and important works related to national defense and security.

4. Construction designs are appraised and approved in accordance with regulations of Article 82 of this Law.

5. Applications for building permits are conformable with each type of building permits in accordance with regulations in Article 95, 96 and 97 of this Law.

Article 92. Conditions for issuance of building permits for construction works other than route-based works outside urban areas

1. Construction works are conformable with locations and the entire sites of construction projects that have been approved in writing by competent authorities.

2. The conditions prescribed in Clauses 3, 4 and 5 Article 91 of this Law are satisfied.

Article 93. Conditions for issuance of building permits for separate houses

1. General conditions for issuance of building permits for urban separate houses include:

a) Construction works are conformable with land use purposes prescribed in approved master plans for land use.

b) The safety of construction works and their surrounding works are ensured. The construction works satisfy requirements for environmental safety and fire safety; ensure safety for technical infrastructure and protection corridors of irrigation works, dikes, energy works, traffic works, cultural heritage areas, and historical-cultural relics; ensure safe distance to flammable and hazardous works and important works related to national defense and security.

c) Construction designs for separate houses comply with regulations in Clause 7 Article 79 of this Law;

d) Applications for building permits are made in accordance with regulations Clause 1 Articles 95, 96 and 97 of this Law.

2. Urban separate houses satisfy conditions prescribed in Clause 1 of this Article and are conformable with detailed planning. Separate houses that are constructed in stable areas or street routes in urban centers which have no detailed planning are conformable with regulations on management of urban planning, urban architecture or urban designs issued by competent authorities.

3. Rural separate houses are conformable with detailed planning for residential quarters.

Article 94. Conditions for issuance of limited-term building permits

1. General conditions for issuance of limited-term building permits

a) Construction works are located in areas whose sector planning is approved and published by competent authorities but has not been carried out and have not obtained decisions on land expropriation issued by competent authority;

b) Construction projects are conformable with scale of works defined by People’s Committees of provinces for each area and the service life of works according to plans for execution of the approved sector planning;

c) Project owners commit to demolish construction works when the service life of works prescribed in building permits expires. If the project owners fail to demolish works, the destruction will be enforced on the project owners and they will pay all costs related to enforcement of demolition.

2. Works obtaining limited-term building permits shall satisfy conditions prescribed in Clause 1 of this Article and Clauses 2, 3, 4 and 5 of Article 91 of this Law.

3. Separate houses shall satisfy conditions prescribed in Clause 1 of this Article and Clause 1 Article 93 of this Law.

4. In case of works and separate houses obtaining limited-term building permits, if the permit’s period expires but plans for execution of construction planning has not been carried out, the licensing authority shall notify project owners or users of construction projects of adjustments to the construction planning and extension of limited-term building permit.

5. In case of works and separate houses located in areas whose sectoral planning has been approved by the competent authority and plans for annual use of land of districts, limited-term building permits will not be issued for new construction and only issued for repair and renovation of works.

Article 95. Applications for permits for new construction

1. An application for a permit for new construction of separate houses shall consist of:

a) An application form for the building permit;

b) A copy of one of documents proving the land use right as prescribed in law on land;

c) Drawings of construction design;

d) A written commitment to ensure safety of adjacent works if the construction works are adjacent to other works.

2. An application for a building permit for construction works other than route-based works shall consist of:

a) An application form for the building permit;

b) A copy of one of documents proving the land use right as prescribed in law on land;

c) A copy of a decision on approval for the construction project or decision on construction;

d) Drawings of construction design;

dd) A declaration of capabilities and experience of organizations or individuals in charge of creating construction designs enclosed with copies of their practicing certificates.

3. An application for a building permit for route-based works shall consist of:

a) The documents prescribed in Point a, c, d and dd Clause 2 of this Article;

b) A written approval issued by the competent authority in terms of conformity with locations of and plans for construction routes;

c) A decision on land expropriation issued by the competent authority in accordance with regulations of law on land.

4. An application for a building permit for religious works shall consist of:

a) Documents prescribed in Clause 2 of this Article;

b) A written approval in terms of necessity for construction and scale of construction works issued by the religious regulatory authority.

5. An application for a building permit for a monument or mural shall consist of:

a) The documents prescribed in Clause 2 of this Article;

b) A copy of a license or written approval in terms of necessity for construction and scale of construction works issued by the cultural regulatory authority.

6. An application for a building permit for an advertising work shall consist of:

a) The documents prescribed in Clause 2 of this Article; a copy of the contract for land lease or contract for lease of works;

b) A copy of a license or written approval in terms of necessity for construction and scale of construction works issued by the competent authority in charge of advertisement.

7. Applications for building permits for works of diplomatic missions and international organizations shall comply with the Government’s regulations.

Article 96. Applications for permits for repair and renovation of works

1. An applications form for permits for repair and renovation of a construction work.

2. A copy of one of documents proving ownership, rights to manage and use the work or house in accordance with regulations of law.

3. Drawings or photos of parts and items of the work or house which will be renovated.

4. Works of ranked historical and cultural relics, famous landscapes and technical infrastructure shall obtain written approvals in term of necessity for construction and scale of construction works issued by the cultural regulatory authority.

Article 97. Applications for permits for relocation of works

1. An application form for a permit for relocation of a construction work.

2. A copy of one of documents proving the right to use land to which the work is relocated and legal documents proving ownership of the work in accordance with regulations of law.

3. As-built drawings (if any) or drawings showing the condition of relocated works which include construction site, cross section of the foundation and drawings of the main bearing structure; the overall site plan of the place where the work is relocated; drawings of construction area and cross section of the foundation of the place where the work is relocated.

4. A report on results of survey and assessment of quality and condition of the construction work carried by an eligible organization or individual.

5. A plan for relocation carried out by an eligible organization or individual including:

a) Description of condition of the work and the area where the work is relocated; measures for relocation, plan for arrangement and use of vehicles, equipment and labor; measures for ensuring safety of the work, people, machinery, equipment and adjacent works; assurance about environmental sanitation; relocating progress and organizations and individuals relocating the work;

b) Drawings showing measures for relocating the work.

Article 98. Adjustments to building permits

1. During the construction, if adjustments to construction designs lead to one of the following changes, project owners shall apply for adjustments to their building permits:

a) Change in the external architecture of works in urban centers or areas subject to requirements for architectural management;

b) Change in one of the following factors: construction location and area; scale, height and quantity of floors of works and other factors affecting their main bearing structure;

c) Change in utility of construction works because of adjustments to their internal designs, which affects to safety, fire safety and environmental safety.

2. An application for adjustments to a building permit shall consist of:

a) An application form for adjustments to the building permit

b) An original copy of the issued building permit;

c) A drawing of construction designs related to changes in construction designs that have obtained a building permit;

d) A report on appraisal results and a written approval for the adjusted design created by the project owner which contains contents of ensuring the structural safety, fire safety and environmental safety.

Article 99. Extension of building permits

1. Before the expiry date of a building permit, if a construction work has not been initiated, its project owner shall request for extension of its building permit. Each building permit shall only be extended twice or less with each extension of 12 months. When the extension of the building permit expires but the construction work has not been initiated, the project owner shall submit an application for issuance of a new building permit.

2. An application for extension of a building permit includes:

a) An application form for extension of the building permit;

b) An original copy of the issued building permit;

3. If the service life of a construction work or separate house specified in the limited-term building permit has expired and its construction planning has not been implemented, the project owner or the user of this construction work or separate house shall request the licensing authority to consider granting extension of the service life until the construction planning is implemented. The extended service life shall be written in the issued limited-term building permit.

Article 100. Reissuance of building permits

1. A building permit will be reissued if it is damaged or lost.

2. An application for reissuance of a building permit shall consist of:

a) An application form for reissuance of the building permit;

b) An original copy of the issued building permit which is torn.

Article 101. Revocation and invalidation of building permits

1. A building permit shall be revoked if:

a) It is not issued in accordance with regulations of law;

b) The project owner fails to repair the construction against the building permit within the time limit specified in the document on actions against violations at the request of a competent authority.

2. After 10 days from the day on which the decision on revocation of the building permit is issued by the competent authority in the cases prescribed in Clause 1 of this Article, if the project owner fails to return the building permit to the licensing authority, the licensing authority or competent authority shall decide to invalid this building permit and notify it to the project owner, People’s Committee of the commune where the construction work is located. Decision on invalidation of a building permit shall be published on the website of Department of Construction.

Article 102. Procedures for issuance, reissuance and extension of and adjustment to building permits

1. Procedures for issuance of or adjustment to a building permit shall be specified as follows:

a) The project owner shall submit 02 applications for issuance of or adjustment to the building permit to the licensing authority;

b) The licensing authority shall receive and verify the applications and give a receipt to the applicant in case of valid application or in order to provide instructions to the applicant on completion of the applications in case of invalid applications;

c) Within 7 working days from the day on which the applications are received, the licensing authority shall assess these applications and conduct an inspection on the field. When assessing the applications, the licensing authority shall find documents that are in lacking, invalid or incorrect and send a written notification of supplementation and adjustment to the applications to the applicant. If the supplementation to the applications fails to satisfy requirements specified in the notification, within 5 working days, the licensing authority shall notify in writing to the applicant of keeping completing the applications. The applicant shall supplement and complete the applications in accordance with the written notification. If the applicant continues failing to complete the applications in accordance with the notification, within 3 working days, the licensing authority will notify the applicant of refusal to issue the building permit;

d) According to the scale, features, type and location of the construction work specified in the application, the licensing authority shall compare them with the conditions prescribed in this Law and send consulting requests to regulatory authorities of fields related to construction works as prescribed by law;

dd) In case of a construction work or separate house, within 12 working days from the day on which the applications are received, consulted regulatory authorities shall send a written reply related to contents related to their management. After the abovementioned period expires, if the consulted authorities give no opinions, they will be considered having agreed and shall take responsibility for contents related to their management. Pursuant to applicable regulations, the licensing authority shall decide whether to issue the building permit;

e) From the day on which the applications are received, the licensing authority shall consider issuing the building permit within 30 days in case of issuance of building permits including limited-term building permits, adjusted building permits and building permits for relocation and within 15 in case of separate houses. When the time limit for issuance of the building permit expires, if the licensing authority needs more time for consideration, it shall notify in writing reasons to the applicant and concurrently report it to its supervisory authority for consideration and direction within 10 days from the day on which the abovementioned time limit expires as prescribed in this Clause.

2. Procedures for extension and reissuance of a building permit shall be specified as follows:

a) The project owner shall submit 2 applications for extension or reissuance of the building permit to the licensing authority;

b) Within 5 working days from the day on which the valid applications are received, the licensing authority shall consider granting extension of the building permit or reissuing the building permit.

3. Receipt of replies and payment of fees for issuance of a building permit shall be specified as follows:

a) The applicant shall receive the building permit enclosed with dossiers on construction designs submitted for issuance of the building permit bearing the licensing authority’s seal at the place of receipt of applications within the time of appointment specified in the receipts;

b) The project owner shall pay fees in accordance with regulations of law when submitting applications for the building permit.

4. If the applications are not eligible for issuance of the building permit within the time limit prescribed in Article Clause 2 of this Article, the licensing authority will send a written notification which contains explanations for refusal to issue the building permit. If the time limit prescribed in the receipt has expired but the licensing does not reply, the project owner may construct its works according to dossiers on construction designs that have been assessed and approved in accordance with regulations and enclosed with the applications for the building permit.

5. The Government shall provide detailed guidance on applications for issuance, reissuance and revocation of and adjustment to each type of building permit for each type of construction work.

6. The Minister of Construction shall provide detailed guidance on specimens of applications and drawings of construction designs in the applications for building permits.

Article 103. Power of issuance, reissuance and extension of and adjustment to building permits

1. The Ministry of Construction shall issue building permits for special works.

2. People’s Committees of provinces shall issue building permits for grade 1 and grade 2 construction works; religious works, works of historical and cultural relics, monuments and murals which have been ranked; works located in main streets and thoroughfares in urban centers and works of foreign-invested projects. People’s Committees of provinces may assign the Department of Construction and management boards of economic zones, industrial parks, export processing zones and hi-tech parks to issue building permits within their power.

3. People’s Committees of districts shall issue building permits for works and separate houses constructed in urban areas, conservation areas and historical and cultural relic areas in the districts under their management, except for construction works prescribed in Clauses 1 and 2 of this Article.

4. A licensing authority has power to adjust, grant extension of, reissue and revoke building permits issued by it.

5. If a licensing authority fails to revoke building permits issued illegally, the People’s Committee of the province will decide to revoke these building permits.

Article 104. Responsibilities of licensing authorities

1. Publicly post up and provide explanations for and guidance on regulations on issuance of building permits.

2. Monitor, give results or notify project owners of invalid applications.

3. Issue building permits according to the procedures and within the time limit prescribed in Article 102 of this Law.

4. Take charge and cooperate with relevant applicable authorities to inspect the construction according to building permits; suspend the construction and revoke building permits within their power in the cases where project owners commit serious violations related to construction works.

5. The licensing person shall take legal responsibility and pay compensations for incorrect issuance or delay in issuance of building permits in accordance with regulations of law.

Article 105. Responsibilities of authorities and organizations related to issuance of building permits

1. Carry out the responsibilities prescribed in Point dd Clause 1 Article 102 of this Law;

2. Implement necessary measures when receiving the notifications of dealing with works failing to comply with the planning; works constructed without building permits or not constructed according to the issued building permits.

Article 106. Rights and responsibilities of applicants

1. An applicant is entitled to:

a) Request the licensing authority to provide explanations and instructions related to regulations on issuance of building permit and comply with these regulations;

b) Complain about, sue and denounce violations of law on issuance of building permits;

c) Initiate construction works in accordance with regulations of this Law.

2. An applicant shall:

a) Submit an adequate application and pay fees for issuance of building permits;

b) Take responsibility for accuracy and truthfulness of the application for building permits;

c) Send a written notification of the initiation date of construction work to the People’s Committee of the commune where the construction work is located within 07 working days before starting the construction work;

d) Comply with contents of the building permit.

Chapter VI

CONSTRUCTION OF WORKS

Section 1. Preparation for construction

Article 107. Conditions for initiating construction works

1. Initiation of a construction work shall satisfy the following conditions:

a) There is a construction area which will be transferred wholly or partially on schedule of construction;

b) If the construction work requires a permit as prescribed by law, it shall obtain a building permit in accordance with regulations in Article 89 of this Law;

c) Shop drawing designs for items of the work or the work to be initiated have been approved by the competent authority and inspected and confirmed on the drawing by the project owner;

d) There is a contract between the project owner and the selected contractor;

dd) The construction work is funded sufficiently on schedule of construction;

e) There are measures for ensuring occupational safety and environmental safety during the execution of construction works.

2. The initiation of construction of separate houses shall only satisfy the conditions prescribed in Point b Clause 1 of this Article.

Article 108. Preparation of construction areas

1. Land expropriation, land allocation, land lease, compensations for site clearance and site clearance related to construction areas shall comply with regulations of law on land. People’s Committees shall provide directions on and carry out tasks of compensations for site clearance and relocation related to construction projects in accordance with regulations of law.

2. The time limit for site clearance shall satisfy requirements for approved progress of projects or decisions issued by competent people.

3. Transfer of the whole or partial construction sites for executing construction works shall be based on agreements between project owners and construction contractors.

4. Funding for compensation, assistance and relocation related to site clearance (if any) shall be ensured.

Article 109. Requirements for construction sites

1. Project owners shall put up signs at construction sites, except for separate houses having less than 7 floors. A sign shall include:

a) Name and scale of the construction work;

b) Date of initiation and date of completion;

c) Names, addresses and phone numbers of the project owner, construction contract, organization creating construction designs and the organization or individual supervising the construction;

d) Perspective drawings of the work.

2. Construction contractors shall manage the entire construction site in accordance with regulations of law unless project owners organize the management of these construction sites. Construction works shall be managed in term of the following contents:

a) There must be fences, guard posts and conspicuous signs to ensure the separation between the construction site and outside areas;

b) Arrangement of the construction site within the executing scope shall be conformable with the approved overall site plan and specific conditions for the place of construction;

c) Materials and equipment pending the installation shall be arranged according to the design for the entire construction work;

d) Signs providing directions on the map of the entire site, occupational safety and fire safety and other necessary signs shall be put up within the construction site.

3. Construction contractors shall take measures for ensuring safety for people and vehicles entering and leaving the construction site, collect and treat construction wastes in a proper manner without creating bad impacts on the environment around the construction sites.

Article 110. Requirements for using building materials

1. Use of building material shall be safe, efficient, saving and friendly to the environment.

2. Building materials and components used in a construction work shall comply with the approved construction designs and technical instructions (if any) and ensure their quality as prescribed in law on standards, technical regulations and law on quality of products and goods.

3. Building materials used for manufacturing and processing semi-finished products shall comply with Clauses 1 and 2 of this Article.

4. Priority shall be given to the use of locally and domestically obtained building materials. The use of imported materials for construction projects funded by the state budget shall be specified in bidding documents or requests for proposal in conformity with construction designs and technical instructions (if any) decided by project approvers.

Section 2. EXECUTION OF CONSTRUCTION WORKS

Article 111. Requirements for execution of construction works

1. Execution of construction works complies with approved construction designs, standards and technical regulations applied to construction works, regulations of law on use of building materials; ensure the structural safety, safety in use, aesthetic, environmental safety, response to climate change, fire safety, and other safety conditions as prescribed by law.

2. Execution of construction works ensures safety of construction works, people and construction equipment, underground facilities and adjacent works and necessary measures shall be taken to reduce of human and property losses when unsafe incidents occur in the period of construction.

3. Separate technical measures for safety are imposed on items of works or tasks subject to strict requirements for occupational safety and fire safety.

4. Building materials are used in correct types, manners and quality according to requirements for construction designs to ensure the saving during the execution of construction works.

5. Tasks of construction and important transitional stages are inspected, supervised and subject to commissioning if necessary. Completed items of works and construction works are subject to commissioning before being put into use.

6. Construction contractors are eligible for different grades of construction works and construction tasks.

Article 112. Rights and responsibilities of project owners related to execution of construction works

1. A project owner is entitled to:

a) Execute construction works in case of eligibility for executing construction works or select construction contractors to do this;

b) Negotiate and sign contracts for execution of construction works; supervise and request construction contractors to comply with signed contracts;

c) Suspend or terminate construction contracts in accordance with regulations of law and the contracts;

d) Stop the execution of construction works and request construction contractors to take remedy measures in case of violations of regulations on quality of construction works, safety and environmental safety;

dd) Request relevant organizations and individuals to cooperate in carrying out tasks of construction;

e) Exercise other rights prescribed by law.

2. A project owner shall:

a) Select contractors that are eligible for executing construction works in conformity with types and grades of the construction works and tasks of construction;

b) Cooperate with People’s Committees in paying compensations for site clearance to transfer construction areas to construction contractors;

c) Supervise and manage the quality of construction works in conformity with forms of project and contract management;

d) Inspect measures for construction and ensuring occupational safety and environment sanitation;

dd) Organize the commissioning, payment and cost statement of construction works;

e) Hire consulting organizations eligible for construction to verify quality of construction works if necessary;

g) Consider and decide proposals related to designs for contractors during the execution of construction works;

h) Retain dossiers on construction;

i) Take responsibility for the quality and origin of materials, equipment and construction products provided by it;

k) Pay compensations for damage caused by violations of contracts and other violations committed by it;

l) Carry out other responsibilities prescribed by law.

Article 113. Rights and responsibilities of construction contractors

1. A construction contractor is entitled to:

a) Reject illegal requests;

b) Propose adjustments to construction designs to ensure the conformity with reality and quality and efficiency of construction.

c) Request payment of construction works completed in accordance with construction contracts;

d) Stop the execution of construction works if there are risks to safety of people and construction works or the hirer fails to fulfill the commitments specified in the contracts;

dd) Request compensations for damage caused by the hirers;

e) Exercise other rights prescribed in construction contracts and relevant regulations of law.

2. A construction contractor shall:

a) Only contract the execution of construction work and carry out tasks in conformity with its capacity and the signed construction contracts;

b) Propose construction measures, which specify measures for ensuring safety of people, machinery, equipment and construction works;

c) Construct works in conformity with constructions designs, applied standards, technical regulations; ensure the quality, progress, safety and environmental safety;

d) Organize a suitable system for managing quality of construction works and prepare documents thereof;

dd) Comply with requirements for construction sites

e) Take responsibility for the quality and origin of materials, equipment and construction products provided by it;

g) Manage workers in construction sites and ensure security, order and environmental safety;

h) Make as-built drawings and engage in commissioning of construction works;

i) Repair construction works under warranty;

k) Pay compensations for damage caused by violations of contracts, use of improper materials and failure to satisfy requirements of approved designs and ensure quality of construction works, environment pollution and other violations committed by it;

l) Take responsibility for ensuring the quality of works specified in construction designs that include tasks performed by subcontractors (if any). Subcontractors shall take legal responsibility and be accountable to contractors for quality of their tasks;

m) Carry out other responsibilities prescribed in construction contracts and relevant regulations of law.

Article 114. Rights and responsibilities of contractors creating construction designs related to execution of construction works

1. A contractor creating construction designs is entitled to:

a) Exercise the rights prescribed in Clause 1Article 86 of this Law;

b) Request project owners and construction contractors to comply with construction designs;

c) Reject illegal requests for changes in construction designs for the project owner;

d) Refuse to carry out commissioning of works and items of works that are not constructed in accordance with construction designs;

dd) Exercise other rights prescribed in contracts for construction design and relevant regulations of law.

2. A contractor creating construction designs shall:

a) Satisfy responsibilities prescribed in Clause 2 Article 86 of this Law;

b) Appoint eligible people to supervise designers in accordance with contract for construction designs. Appointed people shall take legal responsibility for their violations and compensations for damage caused by them;

c) Carry out commissioning of construction works in accordance with the contract for construction designs signed with the project owner;

d) Consider repairing unreasonableness of construction designs at the project owner s request;

dd) Promptly notify the project owner of construction activities which are not carried out in accordance with approved designs and propose handling measures;

e) Carry out other responsibilities prescribed in the contract for construction designs and relevant regulations of law.

Article 115. Construction site safety

1. During the execution of construction works, project owners and construction contractors shall ensure safety of their works, workers, equipment and vehicles for construction in construction sites.

2. Project owners shall assign eligible people to monitor and inspect the compliance with regulations on safety by construction contractors; suspend the construction in case of risks of unsafe incidents or signs of violations of regulations on safety; cooperate with contractors in dealing with incidents or work accidents; promptly notify competent authorities of construction emergency causing death.

3. Construction contractors shall propose and implement measures for ensuring safety of people, machinery, equipment, property, and works under construction, underground works and adjacent works. Machinery, equipment and materials subject to strict requirements for occupational safety shall be inspected before being put into use.

Article 116. Environmental safety in construction activities

During the execution of construction works, construction contractors shall:

1. Propose and implement measures for environmental safety during the execution of construction projects, including protection of air environment and water environment, reduction of solid waste, noise and other requirements prescribed by the law on environmental safety.

2. Pay compensations for damage caused by their violations of regulations on environmental safety.

Article 117. Relocation of construction works

1. Relocation of construction works shall comply with the approved construction planning, ensure quality and safety of construction works, not affect adjacent works and ensure the original architecture of works subject to conservation requirements.

2. When relocating construction works, project owners or owners of construction works shall obtain licenses for relocation of construction works.

3. Contractors relocating construction works shall implement measures for ensuring occupational safety of relocated construction works and their adjacent works and protecting the environment.

Article 118. Demolition of construction works

1. A construction work shall be demolished if:

a) The demolition aims to clear sites for construction of new works or temporary works;

b) It can collapse and affect the community and adjacent works;

c) It is built in areas banning from construction as prescribed in Clause 3 Article 12 of this Law;

d) It is not constructed in accordance with the construction planning, constructed without building permit in the cases where the building permit is required or not constructed according to contents of its building permit;

dd) It is constructed on public land or land used legally by organizations or individuals or constructed against the approved designs in the case where it is exempted from building permit;

e) Separate house is demolished to construct a new one.

2. A construction work shall be carried out in accordance with:

a) Decisions issued by the competent authority (if any);

b) The approved plans and measures and ensure safety and environmental safety.

3. Responsibilities for demolishing construction works shall be specified as follows:

a) Organizations and individuals demolishing construction works shall take responsibility for fulfilling the requirements prescribed in Clause 2 of this Article and take legal responsibility and pay compensations for damage caused by them.

b) Organizations and individuals that own or are using construction works subject to demolition shall comply with decisions on demolition of construction works issued by competent authorities and shall be subject to enforcement of demolition and payment of costs arising from the demolition in case of failure to comply with these decisions;

c) Competent authorities issuing decisions on demolition of construction works shall take legal responsibility for consequences arising from their failure to issue the decisions, untimely or illegal decisions.

Article 119. Construction emergencies

1. During the execution, operation or use of construction works, if there are risks to safety, risks of construction emergencies that can damage human lives, adjacent works and the community, project owners, construction contractors, managers of construction works and competent authorities shall:

a) Promptly stop execution, operation or use of construction works and implement measures for ensuring safety of people and property;

b) Implement necessary measures for reduction and prevention of risks to construction works and promptly notice them to relevant organizations, individuals and competent authorities;

c) Protect the incident scenes unless remedy measures shall be taken to prevent or stop damage.

2. When detecting or receiving notices of construction emergencies, competent authorities and relevant organizations and individuals, within their respective tasks and powers, shall:

a) Promptly take urgent measures for dealing with construction emergencies; and

b) Competent authorities shall identify causes of emergencies and clarify responsibilities of organizations and individuals causing construction emergencies.

3. A work that has incidents shall only be constructed, operated or used with permission of competent authorities dealing with construction emergencies.

4. Organizations and individuals causing construction emergencies shall pay compensations and relevant costs and be subject to measures for dealing with administrative violations. Individuals shall face criminal prosecution in accordance with regulations of law.

Section 3. CONSTRUCTION SUPERVISION, COMMISSIONING AND TRANSFER OF CONSTRUCTION WORKS

Article 120. Construction supervision

1. Construction works shall be supervised in term of their quality and construction volume, progress of construction, occupational safety and environmental safety during their execution.

The State encourages the construction supervision of separate houses.

2. Construction supervision shall satisfy the following requirements:

a) The supervision shall be exercised during the execution of construction works from the initiation to completion and commissioning of construction works;

b) The supervision shall follow the approved construction designs, applied standards, technical regulations, regulations on management and use of building materials, technical instruction and construction contracts;

c) The supervision shall be exercised honestly, objectively and disinterestedly.

3. Selected contractor supervising the execution of construction works shall propose supervising measures and procedures for controlling quality and volume of construction works, progress of construction, occupational safety, environmental safety, inspection and commissioning of construction works, measures for managing documents during the supervision and other necessary contents.

Article 121. Rights and responsibilities of project owners related to construction supervision

1. A project owner is entitled to:

a) Exercise construction supervision in case of eligibility and take responsibility for the supervision;

b) Negotiate and sign contracts for construction supervision; supervise and request the contractors supervising the execution of construction works to comply with signed contracts;

c) Change or request the consulting organization to change supervisors if they fail to comply with regulations;

d) Suspend the execution or terminate contracts for construction supervision in accordance with regulations of law;

dd) Exercise other rights prescribed in contracts for construction supervision and relevant regulations of law.

2. A project owner shall:

a) Select consultants on construction supervision whose capacity suitable for different types and grades of construction works to sign contracts for construction supervision in case of failure to exercise construction supervision itself;

b) Notify relevant parties of rights and responsibilities of consultants on construction supervision;

c) Promptly consider proposals of supervisors;

d) Carry out sufficient responsibilities specified in the contracts for construction supervision;

dd) Retain results of construction supervision;

e) Pay compensations for selecting ineligible consultants on construction supervision, for commissioning identifying wrong construction volume and designs and other violations causing damage;

g) Carry out other responsibilities prescribed in contracts for construction supervision and relevant regulations of law.

Article 122. Rights and responsibilities of contractors exercising construction supervision

1. A contractor exercising construction supervision is entitled to:

a) Engage in commissioning and determination of completed tasks and construction works;

b) Request construction contractors to comply with approved construction designs and signed construction contracts;

c) Maintain opinions on its construction supervision;

d) Suspend the execution of construction works if there are risks causing unsafe situations or construction contractors fail to follow the construction designs and promptly notify to project owners for Reponses;

dd) Reject unreasonable request of relevant parties;

e) Exercise other rights prescribed in contracts for construction supervision and relevant regulations of law.

2. A contractor exercising construction supervision shall

a) Supervise the execution of construction works in accordance with contracts for construction supervision;

b) Refuse to carry out commissioning of construction volume that fails to ensure the quality, applied standards, technical regulations and requirements of construction designs;

c) Refuse to carry out the commissioning if construction works fail to satisfy quality requirements;

d) Show unreasonableness of construction designs to project owners;

dd) Supervise the compliance with regulations on safety and environmental safety;

e) Pay compensations for falsification of supervision results in the case where the construction volume fails to comply with construction designs, applied standards, technical regulations but supervisors do not report to project owners or competent authorities and other violations committed by them;

g) Carry out other responsibilities prescribed in contracts for construction supervision and relevant regulations of law.

Article 123. Commissioning of construction works

1. Commissioning of construction works shall include:

a) Commissioning during the execution of construction works and commissioning of transitional stages of construction if necessary;

b) Commissioning of completed work items and works to put them into use.

2. Completed work items or works shall only be put into use after results of the commissioning show that they meet requirements for construction designs, applied standards and technical regulations and regulations on management and use of building materials and the commissioning is carried out in accordance with this Law.

3. Project owners shall take responsibility for commissioning of construction works. Organizations and individuals carrying out the commissioning shall take responsibility for construction products confirmed by them in the commissioning process.

4. Commissioning of works significant for the country, large works or works using complicated technique, works causing significant impacts on the community safety and environment and works funded by the state budget shall be inspected. Responsibility to inspect commissioning tasks shall be specified as follows:

a) The state commissioning council shall inspect the commissioning of works significant for the country, large works or works using complicated technique carried out by project owners.

b) Construction authorities shall inspect the commissioning of construction works that are not mentioned in Point a of this Clause carried out by project owners.

5. The Government shall provide detailed guidance on quality management, commissioning and measures for dealing with construction emergencies.

Article 124. Transfer of construction works

1. The transfer of construction works shall satisfy the following conditions:

a) The commissioning of these construction works has been carried out in accordance with regulations of law on construction.

b) The transfer ensures safety for operation and use of construction works

2. Project owners shall receive construction works as prescribed in contracts signed with contractors. Organizations and individuals engaging in the transfer of construction works shall take responsibility for construction products confirmed by them during the transfer. If a project owner is not the manager of construction works, this project owner will transfer the construction works to the manager of these works after the commissioning is carried out. The transfer of construction works shall be recorded in writing.

3. When transferring construction works, construction contractors shall transfer documents including as-built drawings, documents on the operation process, maintenance process and a list of equipment, accessories and materials reserved for replacement and other relevant necessary documents.

4. If a construction work has not been transferred to its managers, the project owner shall temporarily manage and operate it.

Section 4. REPAIR UNDER WARRANTY TO AND MANTENANCE OF CONSTRUCTION WORKS

Article 125. Repair under warranty to construction works

1. Construction contractors shall repair works constructed by them under warranty. Contractors providing construction equipment and technical equipment shall repair their equipment under warranty.

2. Repair under warranty shall include repair and replacement of equipment damaged or faulty due to contractors’ mistakes.

3. Period of repair under warranty to construction works, construction equipment and technical equipment shall depend on types and grades of construction works and regulations provided by producers or contracts for supplying equipment.

4. The Government shall provide detailed guidance on providing warranty on construction works.

Article 126. Maintenance of construction works

1. The maintenance of construction works shall be specified as follows:

a) Construction works and work item shall be maintained when being put into use.

b) Procedures for maintenance of construction works shall be established and approved by project owners before these construction works are put into use and conformable with use purposes, types and grades of construction works, work items and the equipment constructed and installed in construction works;

c) The maintenance of construction works shall ensure safety of the works, people and property.

2. Project owners or managers of construction works shall maintain the construction works and equipment.

3. Construction works and equipment shall be maintained in accordance with approved plans and procedures for maintenance.

4. The Government shall provide detailed guidance on maintenance of construction works and responsibility to publish construction works that are out of date.

Article 127. Cessation of using of construction works

1. Project owners, manager of construction works or competent authorities shall decide to stop using construction works if their service life has expired or the use of these works causes risks to safety or causes construction emergencies which affect safety of users, adjacent works, environment and the community.

2. If project owners, managers of construction works or competent authorities decide to stop using common construction works, they shall send written notifications of decisions to organizations, individuals and household using these works.

3. The use of construction works may only resume after emergencies have been handled or risks to safety have been eliminated. If the service life of a construction work has been expired but its owner or user wishes to continue using it, the owner or user shall conduct quality assessment, reinforce and renovate it and repair its damage (if any) to ensure its safety and utilities.

Section 5. SPECIAL CONSTRUCTION WORKS

Article 128. Special construction works

1. Special construction works shall include:

a) State-secret works;

b) Urgent works;

c) Makeshift works.

2. The Government shall provide detailed guidance on this Article.

Article 129. State-secret works

1. Construction of state-secret works shall ensure secrets during the construction related to national defense, security, foreign relations, economy, science and technology and other areas.

2. Authorities, organizations and individuals that are assigned to manage and construct state-secret works may make decisions on and shall take responsibility for construction of these works, which includes setting up construction projects, carrying out construction survey, creating construction designs, constructing these works, supervising the construction of these works, carrying out commissioning of these works and putting them into use.

3. The Government shall decide the construction of state-secret works

Article 130. Construction of urgent works

1. Works shall be constructed under urgent orders to promptly meet urgent requirements for prevention of natural disasters and enemy-inflicted destruction and other urgent requirements.

2. Authorities, organizations and individuals that are assigned to manage and construct urgent works shall decide procedures for construction survey, construction designs and execution of construction works in conformity with requirements for emergency cases and take responsibility for construction of these works and ensure promptly satisfy the requirements and progress to minimize possible damage to human and property.

Article 131. Construction of makeshift works

1. Makeshift works are constructed for the construction of main works;

2. Project owners and construction contractors shall appraise and approve construction designs and cost estimates of makeshift works and construct them in accordance with the approved construction designs and cost estimates.

3. Makeshift works shall be demolished when the main works are put into use unless they are conformable with the approved construction planning.

Chapter VII

COSTS OF CONSTRUCTION AND CONSTRUCTION CONTRACTS

Article 1. MANAGEMENT OF CONSTRUCTION COSTS

Article 132. Principles for managing costs of construction

1. Management of construction costs shall ensure investment objectives, project efficiency and the conformity with procedures for construction and sources of funding. Construction costs shall be calculated accurately and sufficiently according to each construction project, construction works and contract packages in conformity with requirements for construction designs, construction conditions and market prices.

2. The state shall manage construction costs by promulgating regulations of law, providing guidance on and carrying out inspection of the implementation thereof; providing guidance on estimating and managing construction costs, measuring construction volume, prices of machinery and construction equipment, adjusting cost estimates, construction price index and controlling construction costs; providing guidance on and managing the issuance of construction valuation certificates and publishing construction criteria and norms and construction price index.

3. Project owners shall manage construction costs from the stage of project to completion of construction works and putting them into operation and use within the total investments of the approved projects. Project owners may hire organizations and individuals eligible for providing consultancy on cost management to estimate, inspect and control construction costs.

4. The inspection and audit of construction costs shall be based on conditions and methods for determining construction costs that have been approved by project approvers and project owners in accordance with regulations and instructions on estimating and managing construction costs and procedures for investment construction.

5. Construction costs of projects funded by the state budget shall be determined in accordance with regulations on estimating and managing construction costs.

Article 133. Contents of management of construction costs

1. Management of construction costs shall include total investments, cost estimates, prices of contract packages, prices of construction contracts, construction norms and prices, costs of project management and consultancy on construction; payment and cost statement of construction contracts and investments thereof; rights and responsibilities of project approvers, project owners and construction contractors related to construction costs.

2. The Government shall provide detailed guidance on management of construction costs.

Article 134. Total construction investments

1. “total construction investments” means all construction costs of projects that are determined in accordance with basic designs and contents of FSRs. If PFSRs are required, total investments determined according to basic designs will be used as a basis for estimating construction costs.

2. Total construction investments shall include costs of construction, equipments, indemnity, assistance and relocation, project management and consultancy on constructions and other costs and provisions for arising volume and inflation. If a project only requires economic and technical reports, its total construction will include costs specified in cost estimates as prescribed in Article 135 of this Law, costs of compensation, assistance and relocation related to site clearance and other costs.

3. Total construction investments shall be determined according to the construction volume calculated according to basic designs and other necessary requirements of projects, or determined according to investment rates or data on costs of similar works that have been previously constructed.

4. Total construction investments shall be assessed and approved and used as a basis for managing costs of construction projects. In case of construction projects funded by the state budget, total construction investments to be approved will be equal to the maximum cost that may be used by project owners for carrying out construction projects.

5. Approved total construction investments of projects funded by the state budget shall only be adjusted in case of adjustment to the projects as prescribed in Clause 1 Article 61 of this Law. The adjustments to total construction investments of projects that use other sources of funding shall be decided by project approvers.

Article 135. Cost estimates

1. "cost estimates” means necessary costs for construction, carrying out contract packages and construction tasks, which are determined according to the construction volume calculated according to technical designs, shop drawing designs and requirements for construction tasks to be carried out and construction norms and prices.

2. Contents of a cost estimate shall include costs of construction, equipment, and project management, consultancy on constructions, other costs and provisions.

3. Cost estimates of projects funded by the state budget and approved in accordance with regulations of Clauses 1 and 2 Article 82 of this Law shall be used as a basis for valuation of contract package and negotiation and conclusion of construction contracts.

4. Approved cost estimates of projects funded by the state budget shall only be adjusted in the following cases:

a) There are adjustments to total construction investments as prescribed in Clause 1 Article 61 of this Law;

b) The design is allowed to be adjusted or supplemented but not against the basic designs or the structure of cost estimates may be adjusted but shall not exceed the approved total construction investments;

c) Adjustments to cost estimates shall be assessed and approved in accordance with regulations on construction.

5. Adjustments to cost estimates of projects using other sources of funding shall be decided by project approvers and project owners.

Article 136. Construction norms, construction prices and construction price index

1. Construction norms include economic and technical norms and limits for expenditures. Construction prices include detailed construction unit price and general construction prices for different groups and types of construction tasks, structural units, items of construction works or the whole construction works.

2. Construction unit prices shall be determined according to market prices or construction norms and prices of materials, labor, construction machinery and other necessary costs according to market prices in construction areas.

3. Systems of construction norms and construction prices prescribed in Clause 1 of this Article published by competent authorities shall be used and referred to by project owners for determining and managing construction costs.

4. Construction price index shall show the time-based fluctuations of construction prices and be used as a basis for determining and adjusting total construction investments, cost estimates and prices of construction contracts and managing construction costs.

The Ministry of Construction shall publish national construction price indexes and People’s Committees of provinces shall publish local construction price indexes.

Article 137. Payment and cost statement of construction projects

1. Payment and cost statement of construction projects shall comply with regulations of law on management of investments. Project owners or their legal representatives shall take legal responsibility for the accuracy and legality of construction unit prices, volume and value requested payment in payment documents.

2. Completed construction works that are subject to the commissioning, transferred and put into use shall have their statements made. In cases of projects funded by the state budget, project approvers shall approve cost statements within the approved total investments. The time limit for statement of construction projects shall be specified by the Government.

3. Payment and cost statement of construction contractors shall comply with regulations in Clause 144 Article 147 of this Law;

Section 2. CONSTRUCTION CONTRACTS

Article 138. General provisions on construction contracts

1. “Construction contract” is a civil contract that is made in writing between the hirer and the contractor to execute a part of or all tasks of construction.

2. Conclusion of construction contracts shall comply with the following principles:

a) Construction contracts shall be concluded voluntarily, equally, cooperatively, legally and in conformity with social ethics;

b) Investments shall be enough to make a payment according to construction contracts;

c) Contractors have been selected and the process of contract negotiation has finished;

d) If the contractor is a partnership of contractors, there must be a partnership agreement. Members of the partnership shall sign and affix their seals (if any) on construction contracts unless otherwise agreed by the parties.

3. Execution of construction contracts shall comply with the following principles;

a) Parties shall comply with their commitments specified in construction contracts related to scope of work, quality requirements, quantity, categories, time limit, methods and other agreements;

b) Construction contracts shall be executed honestly, cooperatively and legally;

c) The execution of construction contract shall not threaten interests of the State, community and legal interests of other organizations and individuals.

4. Construction contracts shall be made in Vietnamese. A construction contract related to foreign parties shall be made in Vietnamese and another language agreed by both parties.

5. Construction contracts shall be concluded and executed in accordance with regulations of this Law and relevant regulations of law.

Article 139. Effects of construction contracts

1. A construction contract will come into force if the following conditions are satisfied:

a) Its signers have legal capacity and power as prescribed by law;

b) The principles prescribed in Point a Clause 2 Article 138 of this Law are satisfied;

c) The contractor is eligible for construction activities and has practicing capability as prescribed by this law.

2. A construction contract shall come into force from the time when the contract is concluded or the specific time agreed by both parties.

Article 140. Types of construction contracts

1. Construction contracts shall be classified according to characteristics and contents of tasks to be performed and their applied prices.

2. According to the characteristics and contents of tasks to be performed, construction contracts shall include:

a) Contracts for consultancy on construction activities;

b) Contracts for execution of construction works;

c) Contracts for supplying equipment installed in construction works;

d) Engineering procurement and construction contracts (EPC) and turnkey contracts;

d) Other construction contracts.

3. According to applied contract prices, construction contract shall include:

a) Lump-sum contracts;

b) Fixed-price contracts:

c) Adjustable-price contracts;

d) Time-based contracts;

dd) Cost plus fixed fee contracts;

e) Combination type contracts;

g) Other construction contracts.

h) Construction contracts funded by the state budget shall only be made in the forms of the contracts prescribed in Points a, b, c and d of this Clause or combination of these types of contracts.

Article 141. Contents of construction contracts

1. A construction contract shall include the following contents:

a) Applied legal bases;

b) Languages used in the contract;

c) Contents and volume of tasks

d) Quality and technical requirements of the work, commissioning and transfer of construction works;

dd) Period and progress of the contract;

e) Contract price, advances, currency used in payment and payment of the contract;

g) Assurance about the execution of the contract, advance payment guarantee;

h) Adjustments to the contract;

Rights and responsibilities of both parties;

k) Responsibilities for violations of the contract, rewards and penalties for violations of the contract;

l) Suspension and termination of the contract;

m) Dealing with disputes over the contract;

n) Risks and force majeure events;

o) Cost statement and finalization of the contract;

p) Other contents.

2. General construction contract shall include contents of and responsibility for management of general contractors apart from the contents prescribed in Clause 1 of this Article.

3. The Government shall provide detailed guidance on construction contracts.

Article 142. Documents on construction contracts

1. Documents on a construction contract shall include a contract with the contents prescribed in Article 141 of this Law and its enclosed documents.

2. Several or all following documents shall be enclosed with a construction contract:

a) A written notification of successful bidder or appointment of contractor;

b) Specific conditions of the contract or terms of reference in case of contracts for consultancy on construction;

c) General conditions of the contract;

d) Bidding documents or requests for proposals of the hirer;

dd) Drawings of construction designs and technical instructions;

e) Bids or proposals of the contractor;

g) A written record of contract negotiation, documents providing adjustments and supplementation to the contract;

h) Appendices of the contract;

i) Other relevant documents.

3. Order of application of documents enclosed with construction contracts shall be agreed upon by both parties. If parties of a construction contract fail to come to an agreement, the order of documents prescribed in Clause 2 of this Article will be applied.

Article 143. Adjustments to construction contracts

1. Adjustments to a construction contract shall include adjustments to quantity, progress and unit price of the contract and other contents agreed upon by the parties in the contract. Adjustments to construction contracts shall only be made during the period of the contracts.

2. A construction contract will be adjusted if:

a) The adjustments are agreed upon by the parties in accordance with regulations of this Law and relevant law;

b) The State makes adjustments to policies, which affects directly to the execution of the contract, unless otherwise agreed upon by the parties;

c) There are adjustments to the construction project, which affect directly to the execution of the contract, unless otherwise agreed upon by the parties;

d) There are force majeure events as prescribed by law.

3. Apart from regulations in Clauses 1 and 2 of this Article, adjustments to prices of construction contracts of construction projects funded by the state budget shall comply with the following regulations:

a) The adjustments to unit price shall only apply to adjustable-price contracts and time-based contracts;

b) Unit prices of construction contract shall only be adjusted according to contents, scope, methods and bases that are agreed upon by the parties in accordance with regulations of law;

c) Adjustments to construction contracts that change investment objectives and period of the contracts and exceed the approved cost estimate of contract package shall obtain permission of project approvers.

Article 144. Payment of construction contracts

1. The payment of construction contracts shall be conformable with types and prices of the contracts and conditions specified in the contracts signed by the parties.

2. Parties shall reach an agreement on payment methods, time, payment documents and conditions.

3. The hirer shall pay adequate value for each payment to the contractor after deducting advances and amounts for repair under warranty as agreed upon in the contract, unless otherwise agreed upon by the parties.

4. The payment of lump sum contracts shall be made according to rates of contract prices or prices of construction works, work items or workload corresponding to each stage of payment agreed upon by the parties in the contracts.

5. The payment of fixed-price contracts and adjustable-price contracts shall be made according to completed construction works and tasks having undergone the commissioning and contract unit prices or modifiable unit prices agreed upon by the parties in the contracts.

6. In case of time-based contracts, the payment to consultants shall be determined by multiplying their salaries and other costs related to their activities by actual working time that has undergone the commission (on a monthly, weekly, daily or hourly basic)

7. The payment of a cost plus fixed fee contract shall be made according to costs of direct performance of tasks specified in the contract and costs of management and profits of the contractor as agreed upon.

8. The payment of arising construction volume without unit price stated in construction contracts shall be made as agreed upon in the contracts.

9. The payment of construction contract shall be made in Vietnam dong. A foreign currency will be used for payment of a construction contract if it is agreed upon by both parties in accordance with regulations of law on foreign exchange control.

Article 145. Suspension and termination of construction contracts

1. Parties of a construction contract may suspend the execution of the contract in the following cases:

a) The hirer may suspend the execution of the contract if the contractor fails to meet requirements for quality, occupational safety and progress as specified in the signed contract;

b) The contractor may suspend the execution of the contract if the hirer violates agreements on payments.

2. The hirer may terminate its construction contract if:

a) The contractor goes bankrupt or is dissolved;

b) The contractor refuses or continuously fails to perform tasks according to the contract resulting in violations of the performance progress agreed upon in the contract.

3. The contractor may terminate its construction contract if:

a) The hirer goes bankrupt or is dissolved;

b) Due to mistakes made by the hirer, the tasks are suspended continuously and exceed the time limit agreed by both parties, unless otherwise agreed upon by them;

c) The hirer fails to make a payment to the contractor within the agreed time limit from the day on which valid payment documents are received by the hirer, unless otherwise agreed upon by both parties.

4. Before a party of a construction contract suspends or terminates the contract in accordance with regulations in Clause 1, 2 and 3 of this Article, it shall send a written notification of reasons for the suspension or termination to the other party. If the party fails to notify the other party, thus causing damage to the other party, it shall pay compensations for such damage.

Article 146. Rewards and penalties related to construction contracts and compensations for damage caused by violations and measures for dealing with disputes over construction contract

1. Rewards and penalties related to construction contracts shall be agreed upon by the parties and specified in the contracts.

2. In case of a construction work funded by the state budget, the rate of penalty shall not exceed 12% of value of violated part of the contract Apart from the rate of penalty as agreed upon, the violator shall compensate for damage to the other party and a third party (if any) in accordance with regulations of this Law and relevant laws.

3. The contractor shall pay compensations to the hirer if:

a) The work quality fails to satisfy requirements specified in the contract or the contractor’s mistakes cause a delay in completion of the contract;

b) The contractor’s mistakes cause damage to human and property during the period of repair under warranty

4. The hirer shall pay compensations to the contractor if:

a) Performance of tasks of the construction contract is interrupted or behind schedule, causes risks and unused machinery, equipment, materials and components to the contractor due to the hirer’s mistakes;

b) The hirer fails to provide necessary documents for and facilitate the tasks in accordance with agreements in the contract, which make the contractor re-execute, suspend or adjust the tasks;

c) The hirer fails to provide materials and equipments and satisfy other requirements within the period and at the request specified in the construction contract;

d) The hirer fails to make a payment as agreed upon in the contract.

5. If a party of a construction contract fails to fulfill contractual obligations or improperly fulfill these obligations, after fulfilling these obligations or applying remedy measures, it shall pay compensations for damage to the other party (if any). The compensations level shall be equivalent to damage level to the other party.

6. If a party violates the construction contract due to a third party, the violator will be accountable to the other party for the violations. Disputes between the violator and the third party shall be dealt with in accordance with regulations of law.

7. If the violations committed by a party infringe upon the body, rights and property of the other party, the infringed party may request the violator to be responsible for its violations in accordance with agreements in the contract and relevant regulations of law.

8. Principles and procedures for dealing with disputes over construction contracts shall be specified as follows:

a) Agreements in the contracts and commitments made during the execution of the contracts shall be respected and the equality and cooperation shall be ensured;

b) The parties of construction contracts shall conduct negotiations on dealing with their disputes. If the negotiation is unsuccessful, their disputes will be dealt with through the mediation or commercial arbitration or court in accordance with regulations of law.

Article 147. Cost statement and finalization of construction contracts

1. The contractor shall make a cost statement of construction contracts (hereinafter referred to as “cost statement”) with the hirer in conformity with types and forms of applied contract prices. Contents of a cost statement shall be conformable with agreements in the construction contract.

2. The time limit for making a cost statement shall be agreed upon by both parties. The time limit for making a cost statement of a construction contract funded by the state budget shall be 60 days from the day on which all tasks of the contract including arising tasks (if any) are completed and undergone the commissioning. In case of contracts for large construction works, the above-mentioned time limit may be extended but shall not exceed 120 days.

3. A construction contract will be finalized if:

a) Both parties have fulfilled contractual obligations;

b) It is terminated and invalided in accordance with regulations of law.

4. The time limit for finalization of a construction contract shall be agreed upon by the contractual parties. In case of a construction contract funded by the state budget, the time limit for finalization thereof is 45 days from the day on which the parties fulfill their contractual obligations or the contract is terminated in accordance with Clause 2 Article 145 of this Law. In case of contracts for large construction works, the time limit for finalization thereof may be extended but shall not exceed 90 days.

Chapter VII

CONSTRUCTIONELIGIBILITY

Article 148. General provisions on eligibility of organizations and individuals carrying out construction activities

1. Individuals engaging in construction activities shall obtain training certificates in conformity with their tasks issued by legal training providers.

2. Contractors that are foreign organizations and individuals engaging in construction activities in Vietnam shall comply with regulations of law on bidding and obtain operating licenses issued by the supervisory authorities.

3. Holders of titles and individuals independently carrying out construction activities and required to obtain practicing certificates shall include labor safety supervisors; project managers, individuals directly engaging in project management; managers of construction planning designs; construction survey managers; construction design or design verification managers; site commanders; construction supervisors; construction appraisers and construction valuators. Practicing certificates shall be classified into class I, class II and class III.

4. Organizations engaging in construction activities shall be classified into classes I, II and III and assessed and issued with certificates of eligibility for construction by the competent authorities. The Ministry of Construction shall issue class I certificates; Departments of Construction shall issue class II and III certificates. Organizations engaging in construction activities shall register appropriate business lines in accordance with regulations of law.

5. The Government shall provide detailed guidance on eligibility of organizations and individuals engaging in construction activities; conditions and procedures for and powers of issuance of licenses to foreign organizations and individuals; programs, contents and forms of examination to issue certificates of eligibility for construction and conditions of organizations providing professional training in construction activities.

Article 149.Certificates of construction practice (hereinafter referred to as “practicing certificates”)

1. “ Practicing certificate” means a document certifying practicing capacity issued to the individuals prescribed in Clause 3 Article 148 of this law who are qualified and experienced to engage in the practicing fields by competent authorities.

2. An individual will obtain a practicing certificate if:

a) His/her qualifications are conformable with contents of the application for the practicing certificate;

b) His/her working period and experience are conformable with contents of the application for the practicing certificate;

c) He/she has passed the examination in professional experience and legal knowledge related to the practicing field.

3. Power to organize examinations and issue practicing certificates shall be specified as follows:

a) The specialized authority affiliated to the Ministry of Construction may organize examinations and issue class I practicing certificates;

b) Departments of Construction and eligible socio-professional organizations as prescribed by the Government are entitled to organize examinations and issue practicing certificates to other classes.

Article 150. Requirements for organizations creating construction designs

1. Those organizations are eligible for creating construction designs.

2. Managers of designing construction planning schemes obtain practicing certificates and have their capacity conformable with each type of construction planning.

Article 151.2(annulled)

Article 152. Requirements for organizations providing consultancy on project management and management boards of constructions projects

1. Organizations providing consultancy on project management shall satisfy the following requirements:

a) They are eligible for engaging in construction activities in conformity with the project management according to scale and types of construction projects.

b) Project managers or individuals directly engaging in project management qualified and experienced and obtain practicing certificates in conformity with scale and types of the construction project.

2. Project management boards shall satisfy the following requirements:

a) Management boards of specialized construction projects and regional construction projects are established according to decisions issued by competent authorities. Project owners shall decide to establish their management boards of construction projects;

b) They are eligible for engaging in construction activities in conformity with the project management according to scale and types of construction projects.

c) Their organizational structures are conformable with requirements of tasks of project management and these management boards have stable premises.

d) Project managers or individuals directly engaging in project management are qualified, experienced and obtain practicing certificates in conformity with scale and types of the construction project.

Article 153. Requirements for organizations conducting construction surveys

1. Organizations conducting construction surveys are eligible for doing their jobs.

2. Each task of construction survey is managed by a manager of construction survey appointed by the contractor conducting construction survey. Managers of construction survey have practicing capacity for construction survey and obtain suitable practicing certificates. Each individual engaging in each task of construction survey is qualified for his/her assigned tasks.

3. Machinery and equipment used for construction survey meet quality requirements and ensure safety for survey activities and environmental safety.

4. Laboratories for construction survey satisfy prescribed standards and be accredited by construction competent authorities.

Article 154. Requirements for organizations creating or verifying construction designs

1. Organizations creating or verifying construction designs are eligible for doing their jobs.

2. Design managers are qualified for construction design and obtain practicing certificates conformable with requirements of each type and grade of construction works.

Article 155. Requirements for organizations providing consultancy on construction supervision and verification

1. Organizations providing construction supervision and verification are eligible for doing their jobs

2. Individuals providing consultancy on construction supervision and verification obtain practicing certificates conformable with their tasks.

Article 156. Requirements for organizations providing consultancy on management of construction costs

1. Organizations providing consultancy on management of construction costs are eligible for doing their jobs.

2. Individuals in charge of estimate, verification and management of construction costs obtain practicing certificates of construction valuation.

Article 157. Requirements for organizations executing construction works

1. These organizations are eligible for executing construction works corresponding to their types and grades.

2. Site commanders are qualified for construction and obtain suitable practicing certificates.

3. Equipment used for construction satisfies requirements for safety and quality of construction works.

Article 158. Requirements for independent practitioners

Independent practitioners designing construction planning, conducting construction survey, creating construction designs, supervising construction survey, supervising the execution of construction works and carrying out construction valuation shall:

1. Register operating field in conformity with practicing contents.

2. Obtain practicing certificates and are qualified for their tasks.

Article 159. Management and supervision of eligibility for construction

1. Organizations engaging in construction activities shall register information about their construction eligibility with the Ministry of Construction and Departments of Construction of provinces where their head offices are located.

2. Independent practitioners engaging in construction activities shall register information about their practicing capacity with Departments of Construction of provinces where they reside permanently.

3. The Ministry of Construction and Departments of Construction shall provide instructions on registration of information about construction eligibility by organizations and practicing capacity and put them on their websites; inspect and take actions against violations of regulations on eligibility of project owners, organizations and individuals engaging in construction activities.

4. Project owners shall inspect and assess declarations on construction eligibility and practicing capability of bidders satisfying requirements of contract packages and information about construction eligibility that has been registered in accordance with regulations of this Article.

Chapter IX

RESPONSIBILITIES OF REGULATORY AUTHORITIES FOR MANAGING CONSTRUCTION

Article 160. Contents of state administration in terms of construction

1. Formulating, and directing the implementation of strategies, schemes, master plans and plans for developing the construction market and capacity of the construction sector.

2. Promulgating and organizing the implementation of legislative documents on construction.

3. Formulating and issuing standards and technical regulations on construction.

4. Organizing and managing consistently the construction planning, project management, project appraisal and construction design; issuing and publishing construction norms and prices.

5. Providing guidance on, inspecting and assessing the management of construction work quality; managing construction costs and construction contracts; managing construction eligibility; managing bidding related to construction activities; managing occupational safety and hygiene and environmental safety in construction activities.

6. Issuing and revoking permits and certificates related to construction.

7. Inspecting dealing with complaints and denunciations and taking actions against violations related to construction.

8. Conducting research into, applying science and technology to and popularizing knowledge and regulations of law related to construction.

9. Providing training in human resources engaging in construction.

10. Managing and providing information for construction.

11. Managing and retaining dossiers on construction works

12. Carrying out international cooperation in construction

Article 161. Responsibilities of the Government

1. Ensure the consistency of state administration in terms of construction nationwide; provide directions on formulation and implementation of strategies and plans and promulgate legislative documents on construction.

2. Direct ministries and local authorities to implement regulations of law on construction, assign the state administration to ministries and local authorities and provide directions on dealing with important and complicated problems during the construction management.

Article 162. Responsibilities of the Ministry of Construction

The Ministry of Construction shall be accountable to the Government for carrying out consistently state administration in term of construction and:

1. Take charge of formulation of legislative documents, strategies, schemes, master plans and plans for developing the construction market and capacity of the construction sector and submit them to the Government and the Prime Minister.

2. Promulgate and organize the implementation of legislate documents on construction within its power; promulgate national technical regulations on construction and guiding documents on construction techniques within its power.

3. Organize and manage construction planning, project management, project appraisal and construction design; promulgate and publish construction norms and prices.

4. Direct, inspect and assess the quality management of construction works; monitor, inspect and propose quality and safety of works significant for the country, large works and works contain complex techniques during the construction, operation and use of works; manage construction costs and construction contracts; manage construction eligibility and bidding related to construction activities; organize, consider and approve quality prizes for construction works.

5. Issue, reissue, adjust, extend and revoke permits and certificates related to construction.

6. Inspect and deal with complaints and denunciations and take actions against violations related to construction.

7. Conduct research into construction, apply science and technology to construction activities and popularize knowledge and regulations of law related to construction.

8. Provide professional training in construction for officials working for supervisory authorities.

9. Provide guidance on, inspect and assess the management of occupational safety and hygiene and environmental sanitation in construction activities.

10. Cooperate with relevant ministries and local authorities in inspecting and assessing the implementation of construction projects.

11. Manage and provide information for construction.

12. Manage and retain dossiers on construction works

13. Carry out international cooperation in construction.

14. Perform other tasks related to construction assigned by the Government.

Article 163. Responsibilities of Ministries and ministerial authorities

1. The supervisory Ministries, within their power, shall:

a) Cooperate with the Ministry of Construction in carrying out state administration in terms of construction and take responsibility for managing the quality of specialized construction works in accordance with regulations of this Law;

b) Research into and promulgate specialized regulations, standards, economic and technical norms, provide guidance on and inspect the implement thereof after receiving consents of the Ministry of Construction; organize professional training in construction for officials working for their affiliated authorities and entities;

c) Monitor, inspect and summarize the supervision and assessment of specialized construction under their management in accordance with regulations of law;

d) Cooperate with and assist relevant Ministries, authority and organizations and People’s Committees in issues under their management during the implementation of specialized construction projects.

2. Ministries and ministerial authorities shall:

a) Carry out the state administration within their assigned duties and power; promulgate documents within their power; direct the implementation of construction planning, plans for construction; provide guidance on, inspect and take actions against violations related to construction;

b) Cooperate with the Ministry of Construction, relevant Ministries, authorities and organizations and People’s Committees in problems within their assigned power during the construction.

c) Consolidate the situation of, carry out, inspect and assess construction and take responsibility for management of construction work quality within their assigned power.

d) Submit regular and annual reports on their construction management to Ministry of Construction for consolidation and monitoring;

dd) Carry out other responsibilities as prescribed by law.

Article 164. Responsibilities of People’s Committees

1. People’s Committees of provinces shall:

a) Carry out the state administration in terms of construction activities in their provinces according to the Government s assignment ; promulgate documents within their power; direct the implementation of construction planning and plans for construction; provide guidance on, inspect, supervise and take actions against violations related to construction;

b) Cooperate with and assist Ministries and other ministerial authorities in carrying out, monitoring, inspecting and supervising construction projects in their provinces; take responsibility for managing the quality of construction works within their assigned power;

c) Submit regular and annual reports on their management of local construction to Ministry of Construction for consolidation and monitoring;

d) Provide professional training in construction for officials working for their affiliated entities and authorities.

dd) Carry out other responsibilities as prescribed by law.

2. People’s Committees of districts and communes shall:

a) Carry out state administration in terms of construction in their areas according to the assigned power; provide professional training in construction for officials working for their affiliated entities and authorities

b) Cooperate with and assist their supervisory People’s Committees in carrying out, monitoring, inspecting and supervising construction projects in their provinces; take responsibility for managing the quality of construction works within their assigned power;

c) Submit regular and annual reports on their management of local construction activities to their supervisory People’s Committee for consolidation and monitoring;

d) Carry out other responsibilities as prescribed by law.

Article 165. Construction inspectorates

1. Construction inspectorates affiliated the Ministry of Construction and Departments of Construction shall carry out administrative inspections and specialized inspections related to construction of organizations and individuals engaging in construction.

2. The Ministry of Construction shall take responsibility for directing and carrying out specialized inspection of construction nationwide. Departments of Construction shall carry out specialized inspections of construction in their provinces.

3. Specialized inspections of construction shall include the following activities:

a) Inspecting the compliance with regulations of law by authorities, organizations and individuals in construction;

b) Discovering, preventing and taking actions against violations of regulations of law on construction within their power or at the request of competent authorities.

4. The Government shall provide detailed guidance on construction inspectorates.

Chapter X

IMPLEMENTATIONPROVISIONS

Article 166. Transitional provisions

1. Construction projects that have been approved before this Law comes into force are not required to be approved again. Activities that have not been carried out shall be carried out in accordance with regulations of this Law.

2. Single-project management boards of projects funded by the state budget which are established before this Law comes into force are not required to change their organizational form of project management as prescribed in Clauses 1 and 2, Article 62 of this Law.

3. Works that are constructed before this Law comes into force and are conformable with the construction planning but become unconformable after site clearance shall be permitted to exist in their original conditions. Their renovation, repair and upgrade shall comply with this Law.

4. The Government shall provide details guidance on Clause 1of this Article.

Article 167. Effects

1. This Law takes effect on January 01, 2015.

2. Law No. 16/2003/QH11 on construction and Article 1 of Law No. 38/2009/QH12 on amendments to certain articles of laws related to investment in capital construction shall expire from the day on which this Law comes into force.

Article 168.Specific

The Government and competent authorities shall provide detailed guidance on articles as assigned in this Law.

Integrated Document certified by the Chairman

Nguyen Hanh Phuc

1Bases for promulgation of the law No. 03/2016/QH14 on amendments to Article 6 and Appendix 4 on the list of conditional business lines of Law on Investment shall be specified as follows:

“Pursuant to Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates Law on amendments to article 6 and Appendix 4 on the list of conditional business lines of Law on Investment No. 67/2014/QH13”

2This Article shall be annulled according to regulations in Point b, Clause 3 Article 2 of Law No. 03/2016/QH14 on amendments to Article 6 and Appendix 4 on the list of conditional business lines of Law on Investment, which comes into force from January 01, 2017.

3Article 2 of Law No. 03/2016/QH14 on amendments to Article 6 and Appendix 4 on the list of conditional business lines of Law on Investment, which comes into force from January 01, 2017 specifies that:

“Article 2

1. This Law comes into force from January 01, 2017, except for Clause 2 of this Article.

2. The following conditional business lines shall come into force from July 01, 2017

a) Trading of equipment and camouflage software used for recording sound and video and positioning;

b) Production, assembly and import of cars.

The Government shall stipulate transition clauses applicable to organizations and individuals operating in lines of business specified in this clause.

3. The following Articles and Clauses shall be annulled:

a) Clause 1 Article 19 of Law No. 43/2013/QH13 on bidding;

b) Article 151 of Law No. 50/2014/QH13 on construction”