Vietnam: Entities required to buy compulsory insurance for construction investment activities

Specifically, according to the Decree No. 119/2015/NĐ-CP of Vietnam’s Government, except for construction works related to national defense, security and state secret, project owners or contractors that fall within the case in which construction insurance premiums have been included in the contractual price must buy construction insurance which is valid during the construction period with respect to the following construction works:

- Construction projects or project items which have certain impacts on public safety as stipulated by Appendix II of the Government’s Decree No. 46/2015/ND-CP dated May 12, 2015 on construction quality management and maintenance and written amendments, modifications or substitutions (if any);

- Construction projects having significant environmental impacts that belong to the list of projects subject to environmental impact assessment under the provisions of the Appendix II and III of the Government's Decree No. 18/2015/ND-CP dated February 14, 2015 on the scheme for environmental protection, strategic environmental assessment, environmental impact assessment and the plan for environmental protection in association with written amendments, modifications or substitutions (if any);

- Construction projects which have particular technical specifications and are subject to complicated construction requirements in accordance with laws on construction and other relevant legislation.

According to the Decree No. 119/2015/NĐ-CP of Vietnam’s Government, consultancy service contractors must buy professional liability insurance for provision of construction consultancy service with respect to the work of construction surveying and design for construction projects ranked II or higher. Engineering construction contractors must buy insurance policies for employees working at construction sites.

View full text at Decree No. 119/2015/NĐ-CP of Vietnam’s Government, effective from February 10, 2016.

Thu Ba

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