Cases of revocation of construction operating license of foreign contractors in Vietnam

Cases of revocation of construction operating license of foreign contractors in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases of revocation of construction operating license of foreign contractors in Vietnam

According to Clause 1, Article 106 of Decree 15/2021/ND-CP, a foreign contractor shall have its construction operating license revoked in one of the following cases:

- The application for issuance of construction operating license contains counterfeit documents;

- Contents of the construction operating license are corrected, erased or falsified;

- The construction operating license is misstated at the fault of the issuing authority;

- The construction operating license is issued ultra vires.

2. competence in revocation of construction permit in Vietnam

According to Clause 2, Article 106 of Decree 15/2021/ND-CP, competence in revocation of construction permit is as follows:

- Authorities that have the power to issue construction operating licenses are the ones that have the power to revoke the construction permits that they issued;

- If the construction operating license is issued against the law but the competent authority that issued the construction operating license fails to revoke it, the Ministry of Construction shall directly revoke that construction operating license.

3. Procedure for revocation of construction operating license in Vietnam

According to Clause 3, Article 106 of Decree 15/2021/ND-CP, the procedures for revocation of construction operating license are as follows:

- Within 10 days from the date on which the inspection conclusion of the construction authority, including a proposal for revocation of the construction operating license, is received or it is discovered or there are grounds to determine one of the cases specified in clause 1 of Decree 15/2021/ND-CP, the revoking authority shall issue a decision on revocation of the construction operating license.

In case of failure to revoke it, a written explanation shall be provided to the organization that makes the revocation proposal;

- The revoking authority shall send the revocation decision to the individual or organization whose license is revoked; and forward it to the investor and relevant agencies;

- The organization or individual whose construction operating license is revoked shall return the original of such certificate to the authority that issues the revocation decision within 05 days from the receipt of the revocation decision;

- In the cases where the construction operating license is incorrect because of the issuing authority, the revoking authority shall reissue the construction operating license within 05 days from the receipt of the revoked construction permit;

In case of violations in point a, point b clause 1 Article 106 of Decree 15/2021/ND-CP, the authority that has competence to issue a construction operating license to the foreign contractor shall only do that when 12 months has elapsed since the date of revocation;

- In case the individual whose construction operating license must be revoked fails to return the construction operating license as prescribed, the competent authority that issues the revocation decision shall send him/her a decision to pronounce cancellation of the construction operating license and forward it to the investor and relevant agencies.

4. Requirements for eligibility to be granted construction operating license in Vietnam

Requirements for eligibility to be granted construction operating license under Article 103 of Decree 15/2021/ND-CP are as follows:

- A foreign contractor will be granted the construction operating license if it has been awarded the contract by the investor/contractor (subcontractor).

- The foreign contractor must set up a joint venture with a Vietnamese contractor or employ Vietnamese sub-contractors, unless the Vietnamese contractor is ineligible to execute any tasks of the contract package. Upon the joint venture or employment of Vietnamese contractors, it is required to clarify contents, quantity and value of tasks performed by Vietnamese contractors in the joint venture or Vietnamese sub-contractors.

- The foreign contractor must commit to comply with regulations of Vietnamese law on contract execution in Vietnam.

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