16:36 | 10/01/2023

Does application of foreign standards in construction activities have to be approved by investment decision-maker in Vietnam?

Does application of foreign standards in construction activities have to be approved by investment decision-maker in Vietnam? What are penalties for using foreign standards in construction activities without consent of individuals deciding on investment in Vietnam?

My company establish a construction project applying foreign technical standards, does it need to be approved by the state agency for use? If it is not approved and still used, will there be a penalty? Please advise.

Does application of foreign standards in construction activities have to be approved by investment decision-maker in Vietnam?

Pursuant to Article 8 of Decree 15/2021/ND-CP stipulating provisions on the application of international standards, regional standards and foreign standards (hereinafter referred to as foreign standards); basic standards; new materials and technologies in construction activities as follows:

1. The selection and application of foreign standards and basic standards must comply with the provisions of the Construction Law and other relevant law provisions.

2. In case of application of foreign standards:

a) The construction design notes or technical instructions (if any) shall contain the assessment of compatibility, uniformity and compliance with national technical regulations;

b) Foreign standards that are widely recognized and applied shall be preferred.

3. In case of application of basic standards:

a) When applying basic standards, there must be notes about the compliance with national technical regulations and the compatibility and consistency with relevant standards;

b) The announcement of the basic standards must strictly comply with the regulations and process specified in other relevant laws.

4. The use of new materials and technologies for the first time must comply with national technical regulations and relevant standards; ensure feasibility, sustainability, safety and efficiency.

Thus, the application of foreign standards in construction activities must be approved by investment decision-maker in Vietnam.

What are penalties for using foreign standards in construction activities without consent of individuals deciding on investment in Vietnam?

According to Article 26 of Decree 16/2022/ND-CP on violation of regulations on national technical regulations, applied standards, use of data and documents in construction activities as follows:

1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on using foreign standards without consent of individuals deciding on investment.

2. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed on using experiment results of construction experimenting organizations that are ineligible as per the law.

3. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on using data or documents that lack the legal basis.

4. A fine ranging from VND 50.000.000 to VND 60.000.000 shall be imposed on failing to employ or failing to employ the appropriate technical regulations, standards or failing to employ valid standards.

5. Remedial measures:

a) Mandated termination of experiment results or data, documents that lack legal basis for violations under Clause 2 and Clause 3 of this Article if construction has not been commenced or is in progress;

b) Mandated compliance with technical regulations for violations under Clause 4 of this Article if construction has not been commenced or is in progress.

According to the above regulations in Vietnam, using foreign standards in construction activities without consent of individuals deciding on investment will be fined from VND 20,000,000 to VND 30,000,000.

Best Regards!

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