The development of real-estate projects as well as the new regulations of the Law on Bidding, the Law on Construction and the Law on Investment have encourage foreign investors participate in bidding in Vietnam. Foreign bidders may be: general contractors, prime contractors, partnership contractors or sub-contractors. However, different from local contractors, a foreign contractor must be granted the Construction License in accordance with each construction contract after winning bid.
Procedures for issuance of the Construction License of foreign contractor is regulated in Decree No. 59/2015/NĐ-CP (on construction project management) and Circular No. 14/2016/TT-BXD (providing guidelines for the issuance of construction licenses and the management of foreign construction contractor in Vietnam, which has been effective from August 15, 2016).
A dossier for requirement for issuance of the Construction License of foreign contractor:
- An application form for the Construction License (using the form prescribed in the Annex 1 of Circular No. 14/2016/TT-BXD);
- Certified as true copies of the report on bidding result or legal decision on bidding award;
- Certified as true copies of the Certificate of establishment or the Certificate of Business Registration and practice license (if any) issued by authorized bodies in the country where the foreign contractor holds that nationality;
- Report on experiences in contract execution and report on financial audit within 03 latest years (for bidding packages which are not subject to regulations of the Law on Bidding);
- A joint-venture contract with a Vietnamese contractor or an official contract or a rule contract with a Vietnamese sub-contractor to carry out the bidding (available in the bid-envelopes);
- A legal power of attorney to authorize the person who is not the legal representative of the contractor (using the form prescribed in the Annex 3 of Circular No. 14/2016/TT-BXD).
- The application must be made in Vietnamese;
- The Certificate of establishment, the Certificate of Business Registration which are issued overseas must be consular legalized;
- All of the documents which are in foreign languages must be translated into Vietnamese, certified as true and notarized.
Dossier submitted at:
- For projects belong to Group A, construction projects locate in 2 provinces or more: specialized bodies of the Ministry of Construction;
- For projects belong to Group B and C: Construction Department of provinces.
Duration: Within 05 working days, the authorized body which receives the dossier will examine and require amendments or adjustments if the dossier is not complete or unsuitable and provide guidelines in written form. Within 20 working days from the day on which the valid dossier is received, the authorized body will examine and issue the Construction License for foreign contractor or refuse to do so and provide explanation.
- Consult about conditions of Construction License for foreign contractors in Vietnam;
- Consult about and draft joint-venture contract of foreign contractors and Vietnamese partners;
- Consult about procedures for issuance of the Construction License for foreign contractors in Vietnam;
- Consult about dossier preparation as prescribed by the law for Construction License for foreign contractors in Vietnam;
- Translate, certify as true and consular legalize documents which are used during the process;
- Complete dossier for clients to get the Construction License for foreign contractors in Vietnam;
- Perform the procedures for issuance of the Construction License for foreign contractors at authorized bodies;
- Register and require issuance of seal samples of the Executive offices of foreign contractors.
If foreign contractor was granted the Construction License as prescribed by: The Law on Construction 2003, Decision No. 87/2004/QĐ-TTg (on promulgating the regulations on management of operations of foreign contractors in the construction domain in Vietnam); Decision No. 03/2012/QĐ-TTg (on amending and supplementing a number of articles of the regulation on management of operations of foreign contractors in the construction domain in Vietnam promulgated together with decision No. 87/2004/QĐ-TTg); Circular No. 01/2012 (guidance on contractual licensing procedures and management of foreign contractors operating construction in Vietnam) then the Construction License is still valid and can be used until the bidding contract is terminated.