The new Construction Law (Construction Law 2014) is probably one of the more important legislation passed by the National Assembly during the first section of this year. The Construction Law 2014 will take effect from 1 January 2015 and contain the following important points, among others:
- The concept of “special complex zone” (khu chức năng đặc thù) is introduced and is defined to include, among other things, economic zones, industrial zones, export processing zones, airports, or sea ports. Construction works within a special complex zone may be subject to a construction planning permit (giấy phép quy hoạch xây dựng) instead of a construction permit. There is a separate construction planning process for construction within a special complex zone;
- A general concept of “large scale and technical complex works, and works having material effects on public safety and environment” is introduced. Construction works within this concept are subject to stricter State’s management including compulsory purchase of insurance, examination of basic designs, construction design and examination of completion of construction works. The Government will provide more details of works large scale and technical complex works, and works having material effects on public safety and environment;
- Construction works which are exempted from construction permits now include construction works within an industrial zone, an export processing zone or a high-tech zone or residential house below 7 floors with total floor area under 500 m2 within an urban residential area which, in each case, already has an approved 1/500 construction plan. Under old regulations, these construction works are subject to construction permit; and
- The Construction Law 2014 provide a more detailed framework for contracts in construction sector. In general, the provisions on construction contracts under the Construction Law 2014 are more comprehensive than those under the old regulations and apply to both private and State-funded projects. For example, a construction contract must be made in Vietnamese and, if there is a foreign party, Vietnamese and a foreign language. Under the old regulations, only State-funded projects are subject to a comprehensive regulations on construction contracts.