Procedures for revocation of construction licenses for foreign contractors in Vietnam

Procedures for revocation of construction licenses for foreign contractors in Vietnam​ (Image from the Internet)

On December 30, 2024, the Government of Vietnam issued Decree 175/2024/ND-CP guiding the Law on Construction 2014 (amended in 2020) regarding the management of construction activities.

Procedures for revocation of construction licenses for foreign contractors in Vietnam

The revocation of construction licenses for foreign contractors in Vietnam is carried out in accordance with Clause 3, Article 118 of Decree 175/2024/ND-CP as follows:

- Within 10 days from the date of receiving inspection conclusions or inspection documents from the state management agency in construction, recommending the revocation of the construction license, or upon discovering or having grounds to identify one of the cases for revocation prescribed in Clause 1, Article 118 of Decree 175/2024/ND-CP, specifically:

“Article 118. Revocation of construction licenses

1. A foreign contractor's construction license is revoked in one of the following cases:

a) Falsification of documents in the permit application dossier;

b) Altering or erasing content in the construction license;

c) The construction license is incorrectly recorded due to the issuing authority's fault.”

The authority responsible for revocation will issue a decision to revoke the construction license; in cases where revocation is not executed, a written explanation must be provided to the recommending agency;

- The authority responsible for revocation of construction licenses must send the revocation decision to the organization or individual whose permit is revoked, and simultaneously inform the project owner and related agencies;

- Organizations or individuals whose construction licenses are revoked must return the original construction license to the issuing authority within 5 days from the date of receiving the revocation decision;

- In cases where a construction license is revoked due to errors from the issuing authority, the responsible authority must re-issue a new construction license within 5 days from the receipt of the revoked permit; for violations outlined in point a, point b, Clause 1, Article 118 of Decree 175/2024/ND-CP, specifically:

“Article 118. Revocation of construction licenses

1. A foreign contractor's construction license is revoked in one of the following cases:

a) Falsification of documents in the permit application dossier;

b) Altering or erasing content in the construction license;”

The authority responsible for issuing construction licenses for foreign contractors will only consider issuing a permit after 12 months from the date of issuance of the revocation decision;

- In cases where the organization or individual whose construction license is revoked fails to return the permit as required, the revocation authority will issue a decision announcing the nullification of the construction license, sending it to the individual or organization whose permit is nullified, and also notifying the project owner and related agencies.

Refer to Decree 175/2024/ND-CP effective from December 30, 2024.

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