Classification to set up a construction company in Vietnam

Schedule of specific commitment in services to set up a construction company in Vietnam according WTO

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

Mode of delivery:  (1)  Cross-border supply  (2)  Consumption abroad  (3)  Commercial presence (4)  Presence of natural person
Sectors and sub-sectors	Limitations on Market Access	Limitations on National Treatment	Additional Commitments
A.    General construction work for building (CPC 512) B.    General construction work for civil engineering  (CPC 513)  C.    Installation and assembly work  (CPC 514, 516)  D.    Building completion and finishing work  (CPC 517) E.    Other (CPC 511, 515, 518)	(1)   Unbound. (2)   None. (3)   None, except: For the period of 2 years from the date of accession, 100% foreign-invested enterprises could only provide services to foreign-invested enterprises and foreign-funded projects in Viet Nam. Foreign enterprises have to be juridical persons of a WTO Member.  After 3 years from the date of accession, branching is allowed.  (4)   Unbound, except as indicated in the horizontal section	(1)   Unbound. (2)   None. (3)   None, except that the chief of the branch has to be a resident in Viet Nam. (4)   Unbound, except as indicated in the horizontal section.

Classcification for CONSTRUCTION, according to Decision 27/2018/QD-TTg of Vietnam

This section includes:

General construction and specialized construction activities for buildings and civil engineering works. It includes new work, repair, additions and alterations, the erection of prefabricated buildings or structures on the site and also construction of a temporary nature.

General construction is the construction of: entire dwellings, office buildings, stores and other public and utility buildings, farm buildings etc. Construction of civil engineering works includes: motorways, streets, bridges, tunnels, railways, airfields, harbors and other water projects, irrigation systems, sewerage systems, industrial facilities, pipelines and electric lines, sports facilities etc. This work can be carried out on own account or on a fee or contract basis. Portions of the work or sometimes even the whole practical work can be subcontracted out. A unit that carries the overall responsibility for a construction project is classified here. Also included is the repair of building and engineering works.

This section includes: the complete construction of buildings (division 41), the complete construction of civil engineering works (division 42), as well as specialized construction activities, if carried out only as a part of the construction process (division 43).

– The renting of construction equipment with operator is classified with the specific construction activity carried out with this equipment.

This section also includes: the development of building projects for buildings or civil engineering works by bringing together financial, technical and physical means to realize the construction projects for later sale. If these activities are carried out not for later sale of the construction projects, but for their operation (e.g. renting of space in these buildings, manufacturing activities in these plants), the unit would not be classified here, but according to its operational activity, i.e. real estate, manufacturing etc.

41-410: CONSTRUCTION OF BUILDINGS

This division includes:

the construction of complete residential or non-residential buildings, on own account for sale or on a fee or contract basis. Outsourcing parts or even the whole construction process is possible. If only specialized parts of the construction process are carried out, the activity is classified in division 43 (Specialized construction activities).

4101- 41010: Construction of buildings

This class includes:

– construction of all types of residential buildings:

+ single-family houses,

+ multi-family buildings, including high-rise buildings.

– remodeling or renovating existing residential structures;

This class excludes:

– architectural and engineering activities, see 7110 (Architectural and engineering activities and related technical consultancy);

– project management activities related to construction, see 7110 (Architectural and engineering activities and related technical consultancy).

4102- 41020: Construction of all types of non-residential buildings

This class includes:

– construction of all types of non-residential buildings:

+ buildings for industrial production, e.g. factories, workshops, etc.

+ hospitals, schools, office buildings,

+ hotels, stores, shopping malls, restaurants;

+ airport buildings;

+ indoor sports facilities;

+ parking garages, including underground parking garages;

+ warehouses;

+ religious buildings;

– assembly and erection of prefabricated constructions on the site;

This class excludes:

– erection of complete prefabricated constructions from self-manufactured parts not of concrete, see divisions 16 (Manufacture of wood and of products of wood and cork, except furniture; manufacture of products of straw and plaiting materials) and division 25 (Manufacture of fabricated metal products, except machinery and equipment);

– construction of industrial facilities, except buildings, see 42930 (Construction of manufacturing facilities);

– architectural and engineering activities, see 7110 (Architectural and engineering activities and related technical consultancy);

– project management activities related to construction, see 7110 (Architectural and engineering activities and related technical consultancy).

42: CIVIL ENGINEERING

This division includes:

general construction for civil engineering objects. It includes new work, repair, additions and alterations, the erection of pre-fabricated structures on the site and also construction of temporary nature;

Included is the construction of heavy constructions such as motorways, streets, bridges, tunnels, railways, airfields, harbours and other water projects, irrigation systems, sewer-age systems, industrial facilities, pipelines and electric lines, outdoor sports facilities, etc. This work can be carried out on own account or on a fee or contract basis. Portions of the work and sometimes even the whole practical work can be subcontracted out.

421: Construction of roads and railways

This group includes:

– construction of motorways, streets, roads, other vehicular and pedestrian ways;

– surface work on streets, roads, highways, bridges or tunnels:

+ asphalt paving of roads;

+ road painting and other marking;

+ installation of crash barriers, traffic signs and the like;

– construction of bridges, including those for elevated highways;

– construction of tunnels;

– construction of railways and subways;

– construction of airfield runways;

This group excludes:

– installation of street lighting and electrical signals, see 43210 (Electrical installation);

– architectural and engineering activities, see 71101 (Architectural and engineering);

– project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4211- 42110: Construction of railways

This class includes:

– construction of railways (including railway bridges);

– construction of railway tunnels;

– construction of subways;

– railway painting;

– installation of railway crash barriers, traffic signs and the like;

This class excludes:

– installation of street lighting and electrical signals, see 43210 (Electrical installation);

– architectural and engineering activities, see 71101 (Architectural and engineering);

– project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4212- 42120: Construction of roads

This class includes:

– construction of motorways, streets, roads, other vehicular and pedestrian ways;

– surface work on streets, roads, highways, bridges or tunnels:

+ road surface work: asphalt paving of roads, spreading concrete etc.

+ road painting and other marking,

+ installation of crash barriers, traffic signs and the like;

– construction of bridges, including entire bridge (excluding railway bridges);

– construction of tunnels;

– construction of subways;

– construction of airfield runways, aircraft stands.

This class excludes:

– installation of street lighting and electrical signals, see 43210 (Electrical installation);

– architectural and engineering activities, see 7110 (Architectural and engineering activities and related technical consultancy);

– project management activities related to construction, see 7110 (Architectural and engineering activities and related technical consultancy).

422: Construction of utility projects

This class includes:

– the construction of distribution lines and related buildings and structures that are integral part of these systems:

+ long-distance pipelines, communication and power lines;

+ urban pipelines, urban communication and power lines; ancillary urban works;

– water main and line construction:

+ irrigation systems (canals);

+ reservoirs;

– construction of:

sewer systems, including repair;

+ sewage disposal plants;

+ pumping stations;

+ power plants;

– water well drilling;

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4221- 42210: Construction of power works

This class includes:

– the construction of transmission and distribution lines and related buildings and structures that are integral part of these systems:

+ long-distance power lines, grids.

+ urban power lines and grids, underground power cables and ancillary urban works;

+ electrical substations;

– power plants;

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4222- 42220: Construction of water supply and drainage works

This class includes:

– water main and line construction:

+ irrigation systems (canals);

+ reservoirs;

– construction of:

+ sewer systems, including repair;

+ sewage disposal plants;

+ pumping stations;

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4223-42230: Construction of communication works

This class includes:

– construction of communication lines and related buildings and structures that are integral part of these systems:

+ communication lines and networks.

+ pole, drain lines, tanks to pull information cables and ancillary works.

– construction of radio stations, radio and television broadcasting stations and relevant works.

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4229-42290: Construction of other utility projects

This class includes:

– construction of mud treatment plants.

– construction of other utility projects not elsewhere classified.

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

429: Construction of other civil engineering projects

This group includes:

– construction of industrial facilities, except buildings, such as:

+ refineries;

+ chemical plants;

– construction of water projects such as:

+ waterways, harbour and river works, pleasure ports (marinas), locks, etc.

+ dams and dykes;

– dredging of waterways;

– construction of tunnels;

– construction of other works, except buildings, such as: outdoor sports facilities;

This class also includes: land subdivision with land improvement (e.g. adding of roads, utility infrastructure etc.);

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4291-42910: Construction of water projects

This class includes:

– construction of water projects such as:

+ waterways, harbour and river works, pleasure ports (marinas), locks, etc.

+ dams and dykes;

– dredging of waterways;

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4292-42920: Construction of mining and quarrying projects

This class includes:

– construction of mining and quarrying facilities, except buildings, such as:

+ refineries;

+ coal mining and ore facilities, etc.

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4293 – 42930: Construction of manufacturing facilities

This class includes:

– construction of manufacturing facilities, except buildings, such as:

+ Plants manufacturing basic chemical, medicinal chemistry, botanical product and other chemicals.

+ building material plants.

+ food manufacturing plants etc.

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

4299-42990: Construction of other civil engineering projects

This class includes:

– construction of other works, except buildings, such as: outdoor sports facilities;

– land subdivision with land improvement (e.g. adding of roads, utility infrastructure etc.);

This class excludes: project management activities related to civil engineering works, see 7110 (Architectural and engineering activities and related technical consultancy).

43: SPECIALIZED CONSTRUCTION ACTIVITIES

This division includes:

specialized construction activities, i.e. the construction of parts of buildings and civil engineering works without responsibility for the entire project. These activities are usually specialized in on aspect common to different structures, requiring specialized skills or equipment, such as pile driving, foundation work, carcass work, concrete work, brick laying, stone setting scaffolding, roof covering, etc. The erection of steel structures is included, provided that the parts are not produced by the same unit. Specialized construction activities are mostly carried out under subcontract, but especially in repair construction it is done directly for the owner of the property. Also included are building finishing and building completion activities.

Included is the installation of all kind of utilities that make the construction function as such. These activities are usually performed at the site of the construction, although parts of the job may be carried out in a special shop. Included are activities such as plumbing, installation of heating and air-conditioning systems, antennas, alarm systems and other electrical work, sprinkler systems, elevators and escalators, etc. Also included are insulation work (water, heat, sound), sheet metal work, commercial refrigerating work, the installation of illumination and signalling systems for roads, railways, airports, harbours, etc. Also included is the repair of the same type as the above-mentioned activities.

Building completion activities encompass activities that contribute to the completion or finishing of a construction such as: glazing, plastering, painting, floor and wall tiling or covering with other materials like parquet, carpets, wallpaper, etc., floor sanding, finish carpentry, acoustical work, cleaning of the exterior, etc. Also included is the repair of the same type as the above-mentioned activities.

The renting of construction equipment with operator is classified with the associated construction activity.

431: Demolition and site preparation

This group includes: activities of preparing a site for subsequent construction activities, including the removal of previously existing structures.

4311 – 43110: Demolition

This class includes: demolition or wrecking of buildings and other structures;

4312 – 43120: Site preparation

This class includes: the preparation of sites for subsequent construction activities. In specific:

– clearing of building sites;

– earth moving: excavation, landfill, levelling and grading of construction sites, trench digging, rock removal, blasting, etc.

– drilling, boring and core sampling for construction, geophysical, geological or similar purposes;

– site preparation for mining: overburden removal and other development and preparation of mineral properties and sites, except oil and gas sites;

– building site drainage;

– drainage of agricultural or forestry land;

– mine detecting and the like (including exploring) at construction site.

This class excludes:

– drilling of production oil or gas wells, see 06100 (Extraction of crude petroleum); 06200 (Extraction of natural gas);

– decontamination of soil, see 39000 (Remediation activities and other waste management services);

– water well drilling, see 42200 (Construction of water supply and drainage works);

– shaft sinking, see 43900 (Other specialized construction activities);

– oil and gas field exploration, geophysical, geological and seismic surveying, see 7110 (Architectural and engineering activities and related technical consultancy);

432: Electrical, plumbing and other construction installation activities

This group includes: installation activities that support the functioning of a building as such, including installation of electrical systems, plumbing (water, gas and sewage systems), heat and air-conditioning systems, elevators etc.

4321 – 43210: Electrical installation

This class includes:

the installation of electrical systems in all kinds of buildings and civil engineering structures. In specific:

+ electrical wiring and fittings;

+ telecommunications wiring;

+ computer network and cable television wiring, including fibre optic;

+ satellite dishes;

+ lighting systems;

+ fire alarms;

+ burglar alarm systems;

+ street lighting and electrical signals;

+ airport runway lighting;

This class also includes: connecting of electric appliances and household equipment;

This class excludes: construction of communications and power transmission lines, see 42230 (Construction of telecommunications and communication constructions).

4322: Plumbing, heat and air-conditioning installation

This class includes:

installation of plumbing, heating and air-conditioning systems, including additions, alterations, maintenance and repair.

In specific:

– heating systems (electric, gas and oil);

– furnaces, cooling towers;

– non-electric solar energy collectors;

– plumbing and sanitary equipment;

– ventilation, refrigeration or air-conditioning equipment and ducts;

– gas fittings;

– steam piping;

– fire sprinkler systems;

– lawn sprinkler systems;

– duct work installation;

This class excludes: installation of electric baseboard heating, see 43210 (Electrical installation);

43221: Plumbing installation

This sub-class includes:

installation of plumbing and drainage pipes in the house or other construction works, including additions, alterations, maintenance and repair;

In specific:

+ plumbing and sanitary equipment;

+ steam piping;

+ fire sprinkler systems;

+ lawn sprinkler systems;

+ Plumbing installation.

43222: Heat and air-conditioning installation

This sub-class includes:

installation of heating and air-conditioning systems, including additions, alterations, maintenance and repair. In specific:

– heating systems (electric, gas and oil);

– furnaces, cooling towers;

– non-electric solar energy collectors;

– ventilation, refrigeration or air-conditioning equipment and ducts;

– gas fittings;

– steam pumping;

– duct work installation;

4329 – 43290: Other construction installation

This class includes:

– the installation of equipment other than electrical, plumbing, heating and air-conditioning systems or industrial machinery in buildings and civil engineering works, including maintenance and repair.

– installation of buildings or other construction projects of:

+ elevators, escalators;

+ automated and revolving doors;

+ lighting conductors;

+ vacuum cleaning systems;

+ sound system;

+ thermal, sound or vibration insulation;

This class excludes: installation of industrial machinery, see 3320 (Installation of industrial machinery and equipment).

433 – 4330 – 43300: Building completion and finishing

This group encompass activities that contribute to the completion or finishing of a construction such as:

– application in buildings or other construction projects of interior and exterior plaster or stucco, including related lathing materials;

– installation of doors (except automated and revolving), windows, door and window frames, of wood or other materials;

– installation of fitted kitchens, staircases, shop fittings and the like;

– installation of furniture;

– interior completion such as ceilings, wooden wall coverings, movable partitions, etc.

– laying, tiling, hanging or fitting in buildings or other construction projects of:

+ ceramic, concrete or cut stone wall or floor tiles, ceramic stove fitting,

+ parquet and other wooden floor coverings;

+ carpets and linoleum floor coverings, including of rubber or plastic,

+ terrazzo, marble, granite or slate floor or wall coverings etc.

+ wallpaper;

– interior and exterior painting of buildings;

– painting of civil engineering structures;

– installation of glass, mirrors, etc.

– cleaning of new buildings after construction;

– other building completion work not elsewhere classified;

– interior installation of shops, mobile homes, boats etc.

This class excludes:

– painting of roads, see 421 (Construction of roads and railways).

– installation of automated and revolving doors, see 43290 (Other construction installation).

– general interior cleaning of buildings and other structures, see 81210 (General cleaning of buildings);

– specialized interior and exterior cleaning of buildings, see 81290 (Industrial cleaning activities and specialized cleaning activities for buildings);

– activities of interior decoration designers, see 74100 (Specialized design activities).

439 – 4390 – 43900: Other specialized construction activities

This group includes:

– construction activities specializing in one aspect common to different kind of structures, requiring specialized skill or equipment:

+ construction of foundations, including pile driving;

+ damp proofing and water proofing works;

+ de-humidification of buildings;

+ shaft sinking;

+ erection of non-self-manufactured steel elements;

+ steel bending;

+ bricklaying and stone setting;

+ roof covering for residential buildings;

+ scaffolds and work platform erecting and dismantling, excluding renting of scaffolds and work platforms;

+ erection of chimneys and industrial ovens;

+ work with specialist access requirements necessitating climbing skills and the use of related equipment, e.g. working at height on tall structures;

– subsurface work;

– construction of outdoor swimming pools;

– steam cleaning, sand blasting and similar activities for building exteriors;

– renting of cranes with operator;

This class excludes: renting of construction machinery and equipment without operator, see 77309 (Renting and leasing of other machinery, equipment and tangible goods without operators not elsewhere classified).

By Viet An Law Firm, Lawyer Dong Van Thuc

Tel: +84961675566

Email: thuc@vietanlaw.vn for  registration the contruction company in Vietnam.