Five new highlights of the amendment of construction law 2020

1| Proposal on supporting foreigners who are investors and technical experts, highly skilled workers, business managers to enter Ho Chi Minh City 

The consequences of the Coronavirus have a serious impact on all aspects of the world economy, including the activities of the tourism industry, the world aviation industry, etc. The disease has also created a barrier when foreign investors or experts work legally in Vietnam but are not currently allowed to enter Vietnam to continue working due to the complicated disease situation. Therefore, on July 30th, 2020, the Department of Labor, War Invalids and Social Affairs has issued Statement No.20488/TTr-SLĐTBXH-VLALD to the People’s Committee of Ho Chi Minh City to support foreigners who are investors and technical experts, highly skilled workers, business managers to enter Ho Chi Minh City to work.           

Accordingly, the Working Group met and agreed to report to the People’s Committee of Ho Chi Minh City to propose to the Prime Minister to permit Ho Chi Minh City to temporarily consider and support entry to the Ho Chi Minh City only foreigners who are investors, business managers, and experts who have been granted work permits to work at agencies, organizations and enterprises in Ho Chi Minh City that have not returned to working and experts serving key city works using the city budget. In addition, the other subjects are temporarily not considered entry to Vietnam.

2| Five new highlights of the law on amendments of construction law (amendment) 2020 

Law on amendments of Construction law 2020 that will enter into effect from 1st January 2021 introduces several notable new regulations as following: 

(i) Additional exemption for certain categories of works

Clause 30 Article 1 of the amended construction law 2020 adds some construction works that are exempted from construction permits, such as:

  • The advertisement works not subject to construction permits as prescribed by the Law on the advertisement;
  • Passive telecom infrastructure works as prescribed by the Government.

(ii) Time to grant construction permits is shortened

According to Point b Clause 36 Article 1 of the law, from the date of receiving a valid dossier, the agency competent to grant construction permits shall examine the dossier for the grant of a permit within 20 days in the case of grant of construction permits, including also definite-term construction permits, adjusted construction permits and relocation permits (reduced 10 days compared to Law on Construction 2014). 

(iii) Removing the requirement of adequate allocation of funds at the time of construction commencement

Clause 39 Article 1 of the new law also amended and supplemented regulations on conditions for construction commencement whereby ensuring the adequate allocation of funds is abolished at the time of construction commencement.

The new law regulating the construction commencement of work must satisfy the following conditions:

  • The construction grounds are available for entire or partial handover according to the construction schedule;
  • The construction permit has been granted for the work subject to the provisions of Article 89 of this Law;
  • The construction drawing design of the work item or the work to be constructed has been approved;
  • The project owner has signed a construction contract with the contractor performing construction activities related to the constructed work as prescribed by law;
  • Measures have been developed to ensure safety and environmental protection in the course of construction;
  • The project owner has sent the written notification of the construction starting date to the local construction management agency at least 03 working days before the commencement of construction.

(iv) Some projects shall execute the assessment of environmental impacts

Clause 11 Article 1 of the law supplemented regulations on the preliminary assessment of environmental impacts at the time of project formulation. Projects executing the preliminary assessment of environmental impacts include: 

  • National important projects and group-A projects using public investment funds.
  • PPP projects as prescribed in the Law on investment in the public-private partnership form.
  • Projects of which investment policies are approved by the National Assembly or the Prime Minister as prescribed by the Law on Investment.

For the construction of detached houses of households or individuals, neither construction investment pre-feasibility study report nor construction investment economic-technical report is required. 

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