Today : Sep 13, 2025
Politics
12 September 2025

Vietnam Proposes Overhaul Of Construction Law Procedures

A new draft law aims to streamline permits, encourage innovation, and protect contractors as Vietnam modernizes its construction sector.

On September 12, 2025, Vietnam’s construction sector took center stage as Deputy Prime Minister Trần Hồng Hà chaired a pivotal meeting in Hanoi to discuss sweeping amendments to the nation’s Construction Law. The gathering brought together a diverse group of stakeholders: representatives from ministries, local governments, experts, and industry associations. Their mission was clear—rethink the rules of the game to foster a more transparent, efficient, and innovation-friendly construction environment, all while streamlining the tangled web of regulations that has long stymied progress.

According to VGP News, the draft law under discussion proposes a bold new “one-door, one-lock” mechanism for both the appraisal and issuance of construction permits. This approach is designed to allow simultaneous evaluation of project dossiers, which, in theory, could slash the time required for approval and cut down on bureaucratic headaches. As Deputy Minister of Construction Bùi Xuân Dũng explained at the meeting, the draft aims to “continue concretizing the policies of the Party and State towards a favorable, transparent, safe, and low-cost legal environment.” In practice, this means simplifying administrative procedures, making it easier for investors and contractors to navigate the system, and reducing compliance costs across the board.

The need for such reform is hardly theoretical. Since its enactment in 2014, the Construction Law has undergone multiple amendments, resulting in a patchwork of provisions that are difficult to interpret and often overlap with other major laws, such as the Investment Law and Land Law. As reported by Tuổi Trẻ, representatives at the meeting—including those from the Ministry of Justice—argued that this round of amendments must be comprehensive, unifying previous changes and clarifying distinctions between public and private project management. The draft also seeks to update rules on construction contracts and technical standards to ensure they remain practical and enforceable.

One of the standout proposals is the introduction of a “contractor consortium” model for major infrastructure projects like high-speed railways and Long Thành airport. This would replace the traditional joint venture approach, allowing for more flexible partnerships between independent, specialized contractors. As Hoàng Quốc Hiệp, Chairman of the Vietnam Association of Construction Contractors, pointed out, this change is crucial for tackling complex, high-value projects that demand a range of expertise and a unified management structure.

The draft law goes further, stipulating that investors must have clear rights and limits when it comes to adjusting contracts. It also opens the door to referencing international standards and prices—an especially important move in a country where local norms may lag behind global best practices. To protect contractors and subcontractors, the law would require a minimum payment guarantee of 30% of the contract’s value. This, advocates say, would help shield smaller players from the risk of delayed or incomplete payments, a chronic issue in the industry.

In terms of project oversight, the law mandates that directors and management boards must possess professional certificates, raising the bar for accountability and expertise. At the same time, the draft aims to harmonize warranty regulations between the Construction Law and the Housing Law, eliminating confusion over responsibilities for post-construction maintenance and repairs.

Administrative reform is another major theme. The draft categorizes its amendments into four groups: technical edits to align with the local two-level government model; policy changes focused on decentralization and technical management; simplification of administrative procedures—potentially cutting steps by 50% through the “one-door, one-file” mechanism; and the application of information technology and digital data in construction management. The hope is that by streamlining and digitizing processes, Vietnam can leapfrog some of the inefficiencies that have dogged the sector for years.

“We must eliminate from the draft any provisions that duplicate those in other laws,” Deputy Prime Minister Trần Hồng Hà insisted, according to VGP News. He also emphasized the importance of classifying projects based not only on their financial scale but also on their complexity, technological demands, and potential impact on safety, the environment, and society. “A large-scale urban area with familiar technology is a completely different animal from a new bridge using cutting-edge technology for the first time,” he remarked, urging a more nuanced approach to regulation.

The law would also allow the use of foreign consultants when local expertise is lacking, ensuring that projects benefit from the latest scientific and technical knowledge. This is particularly relevant for ambitious undertakings like high-speed rail or new airports, where domestic standards and experience may not yet match international benchmarks. By referencing global norms and adopting advanced technologies—such as Building Information Modeling (BIM), Geographic Information Systems (GIS), and artificial intelligence—the draft aims to accelerate Vietnam’s transition to green, smart, and digitally managed construction projects.

The proposed changes have garnered broad support from both government and industry. Lê Anh Quân, Vice Chairman of the People’s Committee of Hải Phòng, highlighted the practical difficulties that arise after administrative boundary changes, such as projects being halted or requiring a change in investors. He noted that the draft has yet to clarify the procedures for settling accounts in such cases, underscoring the need for more precise and flexible regulations.

Crucially, the law is designed to protect the interests of small and medium enterprises (SMEs) and subcontractors, who often bear the brunt of payment delays and regulatory uncertainty. The draft encourages innovation and entrepreneurship, giving investors more freedom to apply new technologies and pursue green, smart, and digitally integrated construction. It also calls for flexible warranty periods, to be regulated by the government according to the type and scale of each project.

Deputy Prime Minister Trần Hồng Hà wrapped up the meeting by praising the Ministry of Construction for its “responsible, scientific, and open-minded” approach in drafting the law. He stressed that the amendments must be “comprehensive, synchronous with related laws such as the Investment Law, Public Investment Law, Land Law, and Planning Law,” and tailored to the realities of Vietnam’s evolving administrative and economic landscape.

With Vietnam’s urban centers expanding rapidly and infrastructure demands growing ever more complex, the stakes for reforming the Construction Law have never been higher. If the proposed changes deliver on their promises, the country could see not only faster project approvals and less red tape, but also a more dynamic, innovative, and resilient construction industry—one better equipped to build the future, brick by digital brick.