Vietnam: What are the penalties for failing to submit the construction investment feasibility study reports for construction authorities for approval as per the law?
- Construction investment feasibility study reports to be required for each construction investment project in Vietnam?
- What are the contents of the construction investment feasibility study report in Vietnam?
- Is there a penalty for failing to submit the construction investment feasibility study reports for construction authorities in Vietnam?
Construction investment feasibility study reports to be required for each construction investment project in Vietnam?
Pursuant to Article 52 of the Construction Law 2014 (amended by Clause 10, Article 1 of the Law on Amendments to the Construction Law 2020) stipulates as follows:
“Article 52. Formulation of construction investment projects
1. Upon construction investment, project owners or agencies or organizations assigned to take charge of project preparation shall make construction investment feasibility study reports, except the cases prescribed in Clauses 3 and 4 of this Article. Contents of construction investment feasibility study reports must conform to the requirements of each type of projects. The formulation of construction investment feasibility study reports must comply with the regulations laid down herein and relevant laws.
2. Before making construction investment feasibility study reports, construction investment pre-feasibility study reports shall be formulated according to the following provisions:
a) For 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, and projects of which investment policies are approved by the National Assembly or the Prime Minister as prescribed by the Law on investment, the formulation of construction investment pre-feasibility study reports is compulsory;
b) For projects other than those prescribed in Point a of this Clause, the formulation of construction investment pre-feasibility study reports shall be decided by investment decision makers;
c) Procedures for formulation and appraisal of construction investment pre-feasibility study reports shall comply with the provisions of the Law on public investment, the Law on investment in the public-private partnership form and relevant laws;
d) Contents of construction investment pre-feasibility study reports must comply with the provisions in Article 53 hereof, except those of PPP projects.
3. Only construction investment economic-technical reports shall be required for construction investment projects in the following cases:
a) Construction works used for religious purposes;
b) Small construction works and other works prescribed by the Government.
4. For construction of detached houses of households or individuals, neither construction investment pre-feasibility study report nor construction investment economic-technical report is required.”
Accordingly, when investing in construction, the investor or the agency or organization assigned to prepare the project must prepare a construction investment feasibility study report. For construction of detached houses of households or individuals, neither construction investment pre-feasibility study report nor construction investment economic-technical report is required.
Vietnam: What are the penalties for failing to submit the construction investment feasibility study reports for construction authorities for approval as per the law?
What are the contents of the construction investment feasibility study report in Vietnam?
Pursuant to Article 54 of the Construction Law 2014 stipulates as follows:
“Article 54. Contents of construction investment feasibility study reports
1. A basic design shall be made to achieve the project’s objectives, suit construction works of the project, ensure synchronism between works when they are put into exploitation and use.
A basic design must comprise explanations and drawings expressing the following contents:
a/ The construction location, direction of the line of works, list, sizes, types and grades of works on the whole construction ground;
…
2. Other contents of a construction investment feasibility study report include:
a/ The necessity for investment, investment policy, construction investment objectives, construction locations and to be-used land area, capacity and form of construction investment;
…
dd/ Other relevant contents.”
Accordingly, the construction investment feasibility study report will include the contents as prescribed above.
Is there a penalty for failing to submit the construction investment feasibility study reports for construction authorities in Vietnam?
Pursuant to Article 12 of Decree 16/2022/ND-CP stipulating as follows:
"Article 12. Violation of regulation on preparation, appraisal, and approval of construction investment
1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on:
a) Failing to organize preparation, appraisal, or approval of construction investment projects when construction investment project of a structure is required;
b) Failing to present the feasibility study of construction investment to construction authorities for approval as per the law.
2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed on revising construction investment project in a manner contradictory to regulations and law.
3. A fine ranging from VND 100.000.000 to VND 120.000.000 shall be imposed on approving construction investment projects where:
a) The projects are not conforming to construction planning approved by competent authority; or
b) Technological solutions and design solutions are not suitable as per the law; or
c) Capital of the project cannot be guaranteed as per the law; or
d) Financial performance or socio-economic effectiveness of projects utilizing public investment, non-public investment state capital, or public-private partnership projects cannot be guaranteed; or
dd) The projects are not conforming to investment guidelines approved by competent authorities.
4. Remedial measures:
a) Mandated preparation, appraisal, or approval of construction investment guidelines for violations under Point a Clause 1 of this Article;
b) Mandated submission of feasibility study of construction investment to construction authorities for approval for violations under Point b Clause 1 of this Article if construction has not been commenced or is in progress; or
c) Mandated approval of revised projects in accordance with regulations and law for violations under Clause 2 of this Article;
d) Mandated preparation of construction investment projects conforming to planning approved by competent authorities for violations under Point a Clause 3 of this Article if projects have not been commenced; or
dd) Mandated preparation and approval of construction investment projects with adequate, law-compliant technological solutions and design solutions for violations under Point b Clause 3 of this Article if construction has not been commenced; or
e) Mandated preparation and approval of construction investment projects in a manner guaranteeing financial performance or socio-economic effectiveness for violations under Point d Clause 3 of this Article; or
g) Mandated approval and preparation of construction investment projects conforming to investment guidelines approved by competent authorities for violations under Point dd Clause 3 of this Article.”
Thus, based on violations of regulations on formulation, appraisal and approval of construction investment projects to determine the level of administrative sanction according to the above provisions.
Accordingly, the act of failing to submit the construction investment feasibility study reports for construction authorities according to regulations will be subject to an administrative fine of from VND 60,000,000 to VND 80,000,000.
In addition to administrative penalties, based on violations to determine remedial measures according to the above provisions.
Note, the level of administrative penalties as prescribed above only applies to organizations committing administrative violations. In case an individual violates, the administrative sanction applied to the individual will be 1/2 of that of the organization.
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