Regulations on contractual licensing procedures and management of foreign contractors operating construction in Vietnam

Circular No. 01/2012/TT-BXD of the Ministry of Construction dated May 08, 2012, guidance on contractual licensing procedures and management of foreign contractors operating construction in Vietnam. This Circular will take effect on June 26, 2012.

Accordingly, foreign contractors in the following cases shall not be considered for construction contractual license:
– No Vietnamese subcontractor involved in construction works as stipulated in the previous construction contractual licensed;
– Failing to report 03 or more terms under the provisions of this Circular for contracted work by contracting licenses previously granted;
– Violation of the provisions of relevant laws, such as regulations on employment, labor safety, tax payment and work quality, … and has been sanctioned for violating these regulations from two or more times.

In addition, the Circular also provides events for suspending the work of contractor and revoking contractual license.

Circular specifies the time for receiving dossier, granting contractual licensing for foreign contractors; it is new point in comparison with Circular 05/2004/TT-BXD dated 15/09/2004 of the Ministry of Construction. Accordingly, within 5 working days of profile, the licensing body shall be responsible for considering, within 15 working days after receiving the proper profiles, licensing body shall review and issue contractual license to foreign contractors.

Within the said above term, if the profile is not eligible under the regulations, the licensing body must inform and guide the contractor in writing enable contractor to supplement, revise the documents as provided. Therefore, responsibility of the competent authorities in guiding the contractor has been specified in this Circular.
This Circular helped the foreign contractor anticipate at the time from filing until the license. Since then, the contractor may be more active at the stage of licensing, to ensure effective investment process.