What are the State’s encouragement policies in construction investment activities in Vietnam? What acts are prohibited in construction activities in Vietnam?
- What are the State’s encouragement policies in construction investment activities in Vietnam?
- What acts are prohibited in construction activities in Vietnam?
- What are the rights and obligations of project owners in the formulation and management of implementation of construction investment projects in Vietnam?
What are the State’s encouragement policies in construction investment activities in Vietnam?
Pursuant to Article 10 of the 2014 Law on Construction in Vietnam (amended by Clause 6, Article 1 of the 2020 Law on Amendments to the Construction Law) stipulating encouragement policies in construction investment activities as follows:
- Encourage construction investment activities performed to conserve, embellish and promote the value of historical relics, cultural heritages, beliefs and religion and those performed under planning in mountainous areas, islands, areas facing exceptionally difficult socio-economic conditions and areas prone to climate change.
- Stakeholders of all economic sectors in construction investment activities shall be treated equal before law, encouraged and given favorable conditions in construction investment activities; contractors with works conferred by the State with the construction work quality awards shall be given priority when they participate in bidding in construction activities.
- A number of public services provided by state management agencies in construction investment activities shall be gradually transferred to fully capable and qualified socio- professional organizations for provision.
- The Government adopts incentive policies for research and application of advanced science and technology, application of information technology to construction investment activities; investment activities and construction works certified to economically and efficiently use energy and natural resources, and meet environmental protection requirements; development of eco-cities and smart cities, response to climate change and sustainable development.
What are the State’s encouragement policies in construction investment activities in Vietnam? What acts are prohibited in construction activities in Vietnam?
What acts are prohibited in construction activities in Vietnam?
Pursuant to Article 12 of the 2014 Law on Construction in Vietnam (amended and supplemented by Point c, Clause 64, Article 1 of the 2020 Law on Amendments to the Construction Law) stipulating as follows:
Prohibited acts
1. Deciding on construction investment in contravention of this Law.
2. Starting construction when the conditions therefor prescribed in this Law are not fully met.
3. Constructing works in non-construction zones ; constructing works in encroachment upon the protection corridors of national defense, security, traffic or irrigation works, dykes, energy facilities, historical-cultural relic areas and protection zones of other works prescribed by law; constructing works in areas prone to landslide, sweeping flood or flash flood, except works built to overcome these phenomena.
4. Constructing works at variance with construction master plan, except cases with construction permits with a definite term; in encroachment of construction boundaries or construction levels; constructing works at variance with granted construction permits.
5. Formulating, appraising and approving designs and cost estimates of construction works using public investment funds, non-public investment state funds in contravention of this Law.
6. Contractors participating in construction activities when failing to fully satisfy the capacity conditions for carrying out construction activities.
7. Project owners selecting contractors that fail to fully meet the capacity conditions for conducting construction activities.
8. Constructing works not in compliance with the selected standards and technical regulations to be applied to works.
9. Manufacturing and using building materials which cause harm to community health and environment.
10. Violating regulations on labor safety and assets, fire and explosion prevention and fighting, security, order and environmental protection in construction.
11. Using works against their purposes and utility; building annexes or lean-tos encroaching upon areas and spaces lawfully managed or used by other organizations or individuals or upon public areas and common-use areas.
12. Giving and taking bribes in construction investment activities; abusing other legal persons to participate in construction activities; committing manipulation and collusion to falsify the results of project formulation, surveys, designs or supervision of construction.
13. Abusing positions and powers to violate the law on construction; covering up and handling late acts in violation of the law on construction.
14. Obstructing lawful construction investment activities.
Thus, the prohibited acts in construction activities are specified as above.
What are the rights and obligations of project owners in the formulation and management of implementation of construction investment projects in Vietnam?
Pursuant to Article 68 of the 2014 Law on Construction in Vietnam stipulating the rights and obligations of and obligations of project owners in the formulation and management of implementation of construction investment projects, specifically as follows:
- Project owners have the following rights:
+ To formulate and manage projects when fully meeting the capacity conditions prescribed in this Law.
+ To request related agencies and organizations to provide information and documents on project formulation and management;
+ To select, and sign contracts with, consultancy contractors for project formulation and management;
+ To organize the project formulation and management; to decide on the establishment and dissolution of construction investment project management units for single projects according to their competence;
+ Other rights prescribed by law.
- Project owners have the following obligations:
+ To identify project formulation task requirements and contents; to provide necessary information and documents in case of hiring consultants for project formulation; to organize the pre- acceptance tests of project formulation results and archive construction investment project dossiers;
+ To select project formulation consultancy organizations fully meeting the capacity conditions prescribed by this Law;
+ To take responsibility for the legal bases and accuracy of the information and documents provided to consultants for project formulation; to submit projects to competent approving agencies in accordance with law;
+ To select qualified and experienced consultancy organizations or individuals to verify projects at the request of the project-appraising agencies or organizations and investment deciders;
+ To organize the management of project implementation as prescribed in Article 66 of this Law;
+ To examine and supervise the project implementation; to periodically report on the project implementation to investment deciders and competent state management agencies;
+ To recover capital and pay loans, with regard to projects with capital recovery and loan repayment requirements;
+ Other obligations prescribed by law.
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