Construction Activity License for Foreign Contractors in Vietnam: Conditions, Required Documents, and Detailed Procedures

As Vietnam continues to deepen its international economic integration, its construction market has become increasingly attractive to foreign contractors with strong financial capabilities, advanced technologies, and extensive construction experience. However, before undertaking any construction project in Vietnam, foreign contractors are legally required to obtain a Construction Activity License.

This license is not merely an administrative formality; it serves as a legal prerequisite that ensures transparency, compliance with Vietnamese laws, and the protection of the legitimate rights and interests of all parties involved throughout the implementation of the project.

What are the conditions for obtaining a Construction Activity License? What documents must be prepared? How can the application process be completed efficiently while minimizing legal risks? This article provides a comprehensive and practical guide to the licensing requirements for foreign contractors, enabling you to carry out construction activities in Vietnam with confidence and in full compliance with applicable regulations.

Conditions for Obtaining a Construction Activity License

A foreign contractor is eligible to be granted a Construction Activity License only if all of the following conditions are satisfied:

• The contractor has been officially awarded the contract or lawfully selected by the project owner, the main contractor, or the subcontractor to perform the construction work.
• The foreign contractor is required to enter into a joint venture with a Vietnamese contractor or engage Vietnamese subcontractors, except where no Vietnamese contractor is capable of undertaking any part of the work within the contract package.
• Where a joint venture is established or Vietnamese subcontractors are engaged, the parties must clearly agree upon and define the scope of work, work volume, and corresponding contract value to be performed by the Vietnamese contractor(s).
• The foreign contractor must undertake to fully comply with all applicable laws and regulations of Vietnam governing construction contracting and construction activities carried out within the territory of Vietnam.

Application Dossier and Competent Authority for Issuing a Construction Activity License

Pursuant to Decree No. 175/2024/ND-CP, a foreign contractor shall submit one (01) application dossier for a Construction Activity License to the competent authority, either in person, by post, or through the online public service system. The application dossier includes the following documents:

- An application form for a Construction Activity License using Form No. 01 (for organizations) or **Form No. 04** (for individuals) as prescribed in Appendix III issued together with Decree No. 175/2024/ND-CP.

- A certified true copy or a valid electronic copy of the bidding result or the contractor selection decision in accordance with applicable laws.

- A certified true copy or a valid electronic copy of the establishment license or enterprise registration certificate, together with the practicing certificate (if any), issued by the competent authority of the country where the contractor is incorporated or holds nationality.

- A report on the contractor's experience in the relevant construction field, together with copies of the audited financial statements for the most recent three (03) years (applicable where the contractor selection is not conducted in accordance with the laws on bidding).

- A certified true copy or a valid electronic copy of the joint venture agreement with a Vietnamese contractor or the principal subcontracting agreement with a Vietnamese subcontractor that was declared in the bidding dossier or proposal dossier.

- A valid power of attorney if the application is submitted by a person other than the contractor's legal representative.

Important Notes

- The application for a Construction Activity License must be prepared in the Vietnamese language.

- Documents issued by foreign authorities or organizations must be consular legalized unless exempted under an international treaty to which Vietnam is a contracting party.

- Any documents in a foreign language must be translated into Vietnamese. The Vietnamese translation must be notarized or duly certified in accordance with Vietnamese law.

Competent Licensing Authority

The Department of Construction is the competent authority responsible for issuing Construction Activity Licenses to foreign contractors carrying out projects within its respective province or centrally governed city.

Where a construction project is implemented across two or more provinces or centrally governed cities, the Department of Construction of the locality where the foreign contractor intends to establish its project management office shall have the authority to issue the license.

The statutory processing time is 20 days from the date the competent authority receives a complete and valid application dossier.

Additional Important Considerations

- The application form for a Construction Activity License must be completed entirely in Vietnamese.

- Foreign-issued documents, such as the establishment license or enterprise registration certificate, must undergo consular legalization unless otherwise exempted under an applicable international treaty to which Vietnam is a party.

- The documents referred to in Items (2), (3), (5), and (6), if prepared in a foreign language, must be translated into Vietnamese. The translations must be notarized or certified in accordance with the prevailing laws of Vietnam.

Competent Authority for Issuing a Construction Activity License

- The Department of Construction shall issue Construction Operation Licenses to foreign contractors carrying out construction activities within the administrative boundaries of the relevant province.

- Where a foreign contractor performs construction activities in two or more provinces, the competent authority shall be the Department of Construction of the locality where the foreign contractor intends to establish its project management office.

Processing Time and Licensing Fee

Within 20 days from the date of receipt of a complete and valid application dossier, the competent construction authority shall review the application and issue the Construction Activity License to the foreign contractor.

If the application is rejected, the competent authority must provide a written notice clearly stating the reasons for the refusal, enabling the contractor to amend or supplement the application where appropriate.

Upon the issuance of the Construction Activity License, the foreign contractor is required to pay the prescribed licensing fee in accordance with the fee schedule issued by the Ministry of Finance.

Validity of the Construction Activity License

A Construction Activity License issued to a foreign contractor shall cease to be valid in the following circumstances:

• The construction contract has been fully performed and duly liquidated by the contracting parties in accordance with applicable laws and contractual provisions.
• The construction contract is no longer legally effective because the foreign contractor has been suspended from operation, dissolved, declared bankrupt, or is otherwise subject to circumstances resulting in the termination of the contract under the laws of Vietnam or the laws of the country where the contractor is incorporated or holds nationality.

Conclusion

A Construction Activity License is not only a mandatory legal requirement for foreign contractors undertaking construction projects in Vietnam, but also a fundamental legal basis for ensuring that construction activities are carried out transparently, in full compliance with Vietnamese law, and with minimal legal and operational risks.

Having a thorough understanding of the licensing requirements, preparing a complete application dossier, and following the prescribed procedures will help contractors significantly reduce the time and costs involved while avoiding unnecessary delays and compliance issues during the licensing process.

In practice, the licensing procedure can be complex, particularly for contractors unfamiliar with Vietnam's legal and regulatory framework. Therefore, conducting careful legal due diligence or engaging experienced legal consultants is often the most effective approach to ensuring timely project implementation and regulatory compliance.

We hope that the information provided in this article has given you a clear understanding of the legal requirements and practical procedures for obtaining a Construction Activity License for Foreign Contractors in Vietnam, enabling you to prepare effectively and carry out your construction projects with confidence.

About Khanh An Business Law LLC

Khanh An Business Law is proud to be one of Vietnam's reputable law firms, providing comprehensive legal services to both domestic and international clients. We are committed to delivering practical, efficient, and comprehensive legal solutions tailored to the specific needs of businesses and individuals.

Construction Operation Permit Services for Foreign Contractors

Keeping up to date with the latest regulations under Decree No. 175/2024/ND-CP is essential for foreign contractors to ensure legal compliance and minimize potential risks. With a team of experienced lawyers led by Attorney Huong, Master of Laws, Khanh An Business Law is committed to supporting international contractors throughout the licensing process by providing:

- Comprehensive advice on the eligibility requirements and licensing procedures under the latest provisions of Decree No. 175/2024/ND-CP.

- Assistance in preparing and completing consortium agreements, subcontracting documents, and consular legalization procedures.

- Representation before the Departments of Construction nationwide for obtaining Construction Operation Permits.

- Ongoing legal consultation for foreign contractors throughout the implementation of their projects in Vietnam.

Khanh An's Core Values

At Khanh An Business Law, we are guided by three core values: **Prestige – Quality – High Efficiency**. These values serve not only as the foundation of our professional practice but also as the driving force behind our continuous growth and improvement. We take great pride in the positive feedback and trust we have received from our clients, which reflects the quality and professionalism of the legal services we provide.

We remain committed to delivering the highest standard of legal services and to accompanying our clients in achieving sustainable growth and long-term success.

Contact Information

KHANH AN BUSINESS LAW LLC

Hotline: (+84) 24 6688 5821 / (+84) 976 529 499

Address: 88 To Vinh Dien, Khuong Dinh, Hanoi, Vietnam

Website: khanhanlaw.com

Email: info@khanhanlaw.net