What are penalties for violations of regulations on urban development investment in Vietnam?

The Lawnet would like to respond as follows:

1. What is an urban development investment project in Vietnam?

According to the regulations in Article 2 of Decree 11/2013/ND-CP (as amended and supplemented by Decree 35/2023/ND-CP), an urban development investment project in Vietnam includes both urban area construction investment projects and urban infrastructure construction investment projects. To be specific:

- An urban area construction investment project is a project that integrates a mixed-use function, a synchronized technical infrastructure system, social infrastructure with housing, or other construction works according to a construction plan approved by a competent authority for new construction or urban renovation, including:

+ New urban area construction investment projects;

+ Urban area reconstruction projects;

+ Renovation and embellishment projects for urban areas;

+ Conservation and enhancement projects for urban areas;

+ Mixed-use urban area construction investment projects.

- Urban infrastructure construction investment projects include new constructions or expansions, renovations, and embellishments of architectural works and technical infrastructure within urban areas.

The investment for development must comply with the principles stipulated in Article 3 of Decree 11/2013/ND-CP:

- Ensure alignment with national, regional, and provincial plans, technical and specialized plans, complying with construction planning, urban planning, and implementation programs and plans for urban development.

- Ensure synchronous development of technical and social infrastructure, urban architectural landscapes associated with national defense and security.

- Ensure efficient and economical exploitation and use of resources; protect the environment and respond to climate change and natural disasters for sustainable development.

- Create a good living environment for urban residents; balance the interests of the community with those of the State and investors.

- Preserve and promote national cultural identity, and conserve and enhance existing cultural and historical sites.

2. What are penalties for violations of regulations on urban development investment in Vietnam?

Violations of investment development regulations in urban areas in Vietnam will be penalized under Article 14 of Decree 16/2022/ND-CP. To be specific:

(1) A fine ranging from VND 80,000,000 to VND 100,000,000 for the following acts:

- Implementing urban area development investment projects that do not comply with urban planning or are delayed compared to the approved schedule;

- Delayed handover of works or project items under urban area development investment projects according to the approved schedule.

(2) A fine ranging from VND 100,000,000 to VND 120,000,000 for the following acts:

- Allowing secondary investors to implement construction investments that do not conform to detailed construction planning or the approved project schedule;

- Changing the primary investor without written approval from a competent state authority;

- Failing to organize urban service provision to meet the needs of residents according to the project's objectives until transferred to the authorities or professional service management organizations;

- Not transferring administrative management as per regulations;

- The investor of the urban area project does not promptly supervise and check unauthorized residential constructions within the urban area; misuse of buildings and violations of housing usage regulations according to the Housing Law.

Additionally, remedial measures will also be applied, such as:

- Requiring the implementation of urban area development projects according to urban planning for acts of non-compliance or delays.

- Requiring the primary investor to enforce project execution by secondary investors according to approved detailed construction planning for delayed handovers of construction items.

- Requiring written approval from the competent authority for changes to the primary investor without prior approval.

- Ensuring urban service provision meets residents' living needs according to the project's objectives for acts of failing to organize such provision.

- Compelling compliance with administrative management transfer procedures for non-compliance.

- The urban area project investor must supervise, check, and promptly report to competent authorities in cases of unauthorized residential construction within the urban area, misuse of buildings, and violations of housing usage regulations.

Sincerely!

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