Posted 4.01. 2021 by Cekindo
Vietnam has one of the most rapidly-growing economies in Asia and the world. The increasing influx of foreign investment and rapid urbanisation in Vietnam has made the country’s construction business develop significantly over the years. High-rise buildings, new infrastructures, and private housing projects are forming the skylines of Vietnamese cities.
The market for the construction business in Vietnam has been growing on average 9.7%. With more and more investments diffusing into transport, manufacturing, and energy infrastructure in Vietnam, the construction industry’s output value in Vietnam is expected to burgeon up to 2024. Also, the local government relaxes the country’s construction policies and legislations for the purpose to encourage more local and foreign investments in this booming sector.
One of the ways to start a construction business for foreigners is by operating under a Construction Operating License. Most foreign investors prefer this option due to its convenience and fast execution as they don’t have to set up a construction company to carry out a construction project.
However, it is important to take note that for every new construction contract that foreigners secure, they will have to obtain one construction operating license. Before applying for a construction operating license, foreigners must win a construction contract or be selected as a subcontractor for a construction project. Plus, a partnership with a Vietnamese company by establishing a joint-venture contract with them is also mandatory.
Foreign investors can participate in the bidding of real-estate projects and they must obtain the construction business license in Vietnam after winning the construction contract.
Dossier requirements for foreign contractors to acquire the construction license in Vietnam are listed below as per laws and regulations set out by the Vietnamese government:
The application and all documents submitted must be certified and translated into the Vietnamese language if they are in foreign languages. For the business registration certificate and establishment certificate, consular legalisation is compulsory as well.
Depending on the type of construction projects, foreign contractors must submit the dossier to either the specialised agency of the Ministry of Construction or the provincial construction department.
Within five business days upon the receipt of a valid and complete application, the authority will recommend if any supplementation or correction of documents is required. And within twenty business days, the authority will issue the construction license if the application is approved. The authority will issue a written explanation to the foreign contractors if the application is rejected.
When starting a company in Vietnam, it is important to keep in mind that there are different procedures, license requirements, tax rules, and other business regulations you have to comply with on both state and federal levels.
Cekindo’s specialised business registration service can help you with every aspect of your company establishment including the application for a business license in Vietnam.
Cekindo’s professional business consultants can also help you draft a variety of business documents and agreements required for your company incorporation in Vietnam. We even handle your business submissions and manage various legal processes including visa and work permit application, tax registration, and license application. All in all, Cekindo’s business solutions make your company’s formation in Vietnam faster and easier.
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