1. Foreign contractors and construction operating licenses for foreign contractors

A foreign contractor is an organization that has legal status under the laws of a foreign country, is legally established and operates in that country, has business registration in the construction field and has the capacity to operate construction activities according to the law. regulations of Vietnamese law.

Construction activity license for foreign contractors is a license issued by a competent state agency to foreign contractors to carry out construction activities in Vietnam.

2. Conditions for granting construction licenses to foreign contractors

Conditions for granting construction licenses to foreign contractors are specified inDecree No. 15/2021/ND-CP regulations on construction investment project management. Accordingly, foreign investors need to meet the following conditions to be granted a construction license:

- Have legal status under the law of the country where the foreign contractor registers its business. This condition is to ensure that the foreign contractor is an organization with sufficient legal capacity to carry out construction activities in Vietnam.

- Capable of construction activities according to Vietnamese law. This condition is determined based on the following criteria:

   + Financial capacity: Foreign contractors need to have sufficient financial capacity to carry out construction projects, including equity capital, mobilized capital and other capital sources.

   + Technical capacity: Foreign contractors need to have a team of technical staff with professional qualifications and experience appropriate to the type of construction project being implemented.

   + Construction organization capacity: Foreign contractors need to be able to organize construction projects to meet the requirements of quality, progress, safety, labor hygiene and environmental protection.

The foreign contractor's construction capacity is determined through the appraisal of the application for a construction license.

- Have experience implementing similar construction projects in Vietnam or abroad.

This condition is to ensure that foreign contractors have practical experience in implementing construction projects similar to those expected to be implemented in Vietnam. Experience in implementing similar construction projects of foreign contractors is determined through review of construction projects that foreign contractors have performed in the past.

- There is a written approval from the investor for foreign contractors.

This condition is to ensure that the construction project investor agrees to the selection of a foreign contractor to carry out the project. The investor's written approval for the foreign contractor is made according to the form specified in Appendix ICircular No. 16/2021/TT-BXD.

3. Fees for granting construction licenses to foreign contractors

Fees for granting construction licenses to foreign contractors are specified in Clause 2, Article 4 Circular No. 38/2022/TT-BTC regulates the collection rates, collection, payment, management and use of fees for issuance of construction licenses, fees for issuance of certificates of capacity for construction activities, fees for issuance of practice certificates for construction activities . Accordingly, the fee for granting construction licenses to foreign contractors is:2,000,000 VND/license. Fees for granting construction licenses to foreign contractors are paid into the state budget in accordance with the law on state budget.

Fees for granting construction licenses to foreign contractors must be paid before submitting the license application.

Construction license fees for foreign contractors can be paid in cash or by bank transfer.

Construction licensing fees for foreign contractors are reduced by 50% from July 1, 2023 to December 31, 2023. This is to support foreign contractors in carrying out construction licensing procedures in Vietnam.

4. Order and procedures for granting construction licenses to construction contractors

The order and procedures for granting construction licenses to foreign contractors are specified inDecree No. 15/2021/ND-CP of the Government detailing a number of contents on construction investment project management.

- Step 1: Foreign contractors prepare documents. Application dossiers for construction permits for foreign contractors are specified inCircular 16/2021/TT-BXD. The application includes the following documents:

   + Application for construction permit.

   + A certified copy or a certified electronic copy of the establishment license or business registration certificate of the foreign organization or the operating license of the foreign organization in Vietnam.

   + Certified copy or certified electronic copy of the investor's written approval for the foreign contractor.

   + A certified copy or a certified electronic copy of the document certifying the foreign contractor's construction capacity issued by the competent authority of the country where the foreign contractor registered its business.

   + A certified copy or certified electronic copy of a document certifying the foreign contractor's experience in implementing similar construction projects issued by the competent authority of the country where the foreign contractor registered its business. business level.

- Step 2: Submit application. Foreign contractors submit documents to the Department of Construction where the foreign contractor plans to carry out the construction project. Applications can be submitted in person or by mail.

- Step 3: Department of Construction receives the application and checks its validity. Within 03 working days from the date of receiving the dossier, the Department of Construction checks the validity of the dossier. If the dossier is invalid, the Department of Construction shall notify the foreign contractor to supplement and complete the dossier.

- Step 4: Department of Construction organizes appraisal of documents. Within 15 working days from the date of receipt of valid documents, the Department of Construction shall organize the appraisal of the documents.

- Step 5: The Department of Construction issues a decision to grant or not grant a construction license. Within 05 working days from the date of appraisal of the dossier, the Department of Construction shall issue a decision to grant or not grant a construction activity permit.

- Step 6: Get results. Foreign contractors receive results at the Department of Construction where the application was submitted.

Cases of not granting construction activity licenses to foreign contractors. As prescribed atDecree 15/2021/ND-CP, the Department of Construction does not issue construction activity licenses to foreign contractors in the following cases:

   + The license application file is invalid.

   + Foreign contractors do not meet the conditions for granting construction licenses as prescribed by law.

   + Construction projects are not regulated by the Construction Law.

5. Meaning of construction license for foreign contractors

Construction activity license for foreign contractors is an important document, demonstrating the permission of a competent state agency for foreign investors to be allowed to carry out construction activities in Vietnam. . This license has important implications for both foreign contractors and construction project investors.

For foreign contractors, a construction activity license is the legal basis for foreign contractors to be allowed to carry out construction activities in Vietnam. This license helps foreign contractors avoid legal risks during construction project implementation.

 For construction project investors, the foreign contractor's construction operating license is the basis for the investor to determine whether the foreign contractor is qualified to carry out the construction project. This license helps investors feel more secure when choosing foreign contractors.