Adequate funds are not required for commencement of construction of works in Vietnam from January 01, 2021

According to Clause 39 Article 1 of the Law on amendments to Construction Law 2020 of Vietnam, the commencement of construction of a work must satisfy the following conditions:

- The construction grounds are available for entire or partial handover according to the construction schedule;

- The construction permit has been granted for the work subject to the provisions of Article 89 of this Law;

- The construction drawing design of the work item or the work to be constructed has been approved;

- The project owner has signed a construction contract with the contractor performing construction activities related to the constructed work as prescribed by law;

- Measures have been developed to ensure safety and environmental protection in the course of construction;

- The project owner has sent the written notification of the construction starting date to the local construction management agency at least 03 working days before the commencement of construction.

In comparison with the previous provision of Clause 1 Article 107 of the Construction Law 2014 of Vietnam, there are 06 conditions for commencement of construction of works, in which ensuring adequate funds according to the work construction progress is one of the requirements. However, Clause 39 Article 1 of the Law on amendments to Construction Law 2020 does not mention this provision. Instead, the Law on amendments to Construction Law 2020 has supplemented the time limit for the project owner to send the written notification of the construction starting date.

Thus, from January 01, 2021, adequate funds according to the work construction progress are not required for commencement of construction of works in Vietnam.

View more details at the Law on amendments to Construction Law 2020 of Vietnam, effective from January 01, 2021.

Phuong Thanh

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