Construction Capability Declaration in Vietnam

Previously, domestic and foreign organizations and individuals participating in construction activities in Vietnam were required to publicly disclose information about their construction capability according to regulations. However, there have been many new regulations adjusting this content. The following article by Viet An Law will provide you with legal issues related to the Construction Capability Declaration in Vietnam.

Current Regulations on Construction Capability Declaration

Previously, the regulations on the declaration of construction capability were guided by Circular 17/2016/TT-BXD. According to this, the disclosure of information about the construction capability of organizations and individuals engaged in construction activities was carried out as follows:

• Domestic and foreign organizations and individuals participating in construction activities in Vietnam were required to publicly disclose information about their construction capability.
• Organizations and individuals that had been granted capability certificates or practicing certificates were required to publicly disclose information about their capability on the website of the certifying authority.
• All information about the construction capability of organizations and individuals disclosed on the websites of the Departments of Construction had to be transferred to the Ministry of Construction for review, data integration, and publication on the website managed by the Ministry of Construction. This served as a basis for searching and selecting organizations and individuals participating in construction activities nationwide.

However, Circular 17/2016/TT-BXD officially expired on November 20, 2018, and was replaced by Circular 08/2018/TT-BXD, which provides guidance on the content of practicing certificates, construction capability certificates, and the management of foreign contractors operating in Vietnam.

The new regulations in Circular 08/2018/TT-BXD have abolished the requirement for domestic and foreign organizations and individuals participating in construction activities to publicly disclose information about their construction capability. Therefore, the obligation to declare construction capability is no longer mandatory. After being granted a construction capability certificate, organizations and individuals are only required to disclose certificate information as per the regulations.

New Regulations on Disclosing Information about the Capability of Organizations and Individuals Participating in Construction Activities

Disclosure of Information upon Issuance of Certificates

Article 159 of the 2014 Construction Law, as amended in 2020, regulates the management and supervision of construction capability as follows:

“Management of Construction Capability

…1. Information on the construction capability of organizations and individuals that have been granted certificates must be publicly disclosed on the electronic information portal managed by the certifying authority and integrated into the electronic information portal of the Ministry of Construction…”

Additionally, Clause 1, Article 99 of Decree 15/2021/ND-CP stipulates:

“Disclosure of Information on the Capability of Organizations and Individuals Participating in Construction Activities

 …1. Information on the construction capability of organizations and individuals engaged in construction activities that have been granted certificates must be publicly disclosed on the electronic information portal managed by the certifying authority and integrated into the electronic information portal of the Ministry of Construction…”

Thus, currently, information on the construction capability of certified construction organizations must be publicly disclosed on the electronic information portal managed by the certifying authority and integrated into the electronic information portal of the Ministry of Construction.

Procedures for Disclosing Information

The responsibility for disclosing information on construction capability lies with the certifying authority. Specifically, the procedure for disclosing information on construction capability according to Clause 1, Article 99 of Decree 15/2021/ND-CP is as follows:

• The certifying authority is responsible for disclosing information on the construction capability of organizations and individuals on its managed electronic information portal and sending the information to the specialized construction agency under the Ministry of Construction for integration into the Ministry’s electronic information portal.
• The time for disclosing information on construction capability is no more than 5 working days from the date of certificate issuance.
• The time for integrating information into the Ministry of Construction’s electronic information portal is no more than 3 working days from the date of receipt of information from the certifying authority.

Note on the Authority to Issue Practicing Certificates According to Clause 1, Article 64 of Decree 15/2021/ND-CP

• Specialized construction agencies under the Ministry of Construction: issue Class I practicing certificates.
• Departments of Construction: issue Class II and Class III practicing certificates.
• Recognized professional social organizations: issue Class II and Class III practicing certificates to their members.

Disclosure of Information upon Certificate Revocation

In cases of certificate revocation, according to Clause 2, Article 90 of Decree 15/2021/ND-CP, the certifying authority has the obligation to disclose information as follows:

• The certifying authority must disclose the information on its electronic information portal and send the information to be integrated into the electronic information portal of the Ministry of Construction within 5 working days from the date of the decision.
• If the organization whose certificate is revoked does not return the certificate as required, the certifying authority will issue a decision to annul the certificate and disclose this on its electronic information portal.

New Regulations on Disclosing Information upon Issuance of Construction Capability Certificates by Professional Social Organizations

A recognized professional social organization is eligible to issue construction capability certificates when it meets the conditions specified in Clause 1, Article 100 of Decree 15/2021/ND-CP. Upon meeting these conditions, the professional social organization must submit one set of documents to the Ministry of Construction for recognition.

After reviewing and issuing a decision recognizing the professional social organization as eligible to issue construction capability certificates, the Ministry of Construction is obligated to disclose this information on its electronic information portal within 5 working days from the date of the decision.

These regulations ensure transparency and accessibility in the Construction Capability Declaration in Vietnam, facilitating the selection of qualified organizations and individuals for construction activities nationwide.

Note on Conditions for Issuing Practicing Certificates for Individuals

• According to Article 66 of Decree 15/2021/ND-CP, individuals are issued practicing certificates when they meet the following conditions:
• They have full civil act capacity as prescribed by law; have residency documents or a work permit in Vietnam for foreigners and overseas Vietnamese.
• They have the appropriate educational qualifications, experience, and time participating in relevant work as follows:
  • Class I: Hold a university degree in a relevant field and have at least 7 years of experience in the relevant work.
  • Class II: Hold a university degree in a relevant field and have at least 4 years of experience in the relevant work.
  • Class III: Have appropriate professional qualifications and at least 2 years of experience for individuals with a university degree; at least 3 years of experience for individuals with a college or intermediate degre
• e.They meet the examination requirements for the field in which the practicing certificate is requested.

For organizations, it is important to note the conditions for construction capability according to Article 83 of Decree 15/2021/ND-CP. These conditions are crucial for ensuring compliance with the Construction Capability Declaration in Vietnam. Organizations must have sufficient capability in areas such as construction surveying, planning design, construction design verification, project management consultancy, construction supervision, and cost management. Meeting these conditions not only ensures legal compliance but also enhances the organization’s credibility and competitiveness in the construction industry.

The above is Viet An Law’s advice on the Construction Capability Declaration in Vietnam. If you have any related questions or need legal advice on investment and construction, please contact Viet An Law for the best support.