MoC could eliminate construction licensing procedures

This was the statement by Nguyen Danh Huy, Deputy Minister of Construction, at the government’s media briefing on June 4.

Huy stated that the viewpoint of the MoC is that all administrative procedures for licensing must be reviewed and simplified.

Regarding construction permits, in Official Dispatch No.78/CD-TTg, the prime minister requested the MoC to focus on reducing and simplifying administrative procedures in the construction sector. Firstly, for legal documents related to the construction sector and licensing regulations, the MoC will review everything, from the Construction Law to decrees and circulars. Second, the ministry will conduct a final assessment because all licensing procedures for people are decentralised to localities.

"We create improvements for individuals and businesses, but we also have to assess the impact. If we remove licensing and allow people to build on their own, will it affect the rights and legitimate interests of others?" asked Deputy Minister Nguyen Danh Huy.

The MoC plans to adjust, amend, and reduce procedures according to the Construction Law, all of which will be completed in 2025. In the immediate future, areas with approved the 1/500 detailed plans can be amended and exempted from licensing immediately. Or areas with urban designs according to the general laws can use that urban design and licensing can be eliminated immediately.

Speaking about the advantages and disadvantages of removing this administrative procedure, the Deputy Minister said that if a procedure is removed, people will not have to apply for a licence, and state management agencies will not have to carry out licensing procedures, saving costs and labour. However, the challenge is how to create new advantages while maintaining the role and ensuring the legitimate rights of others.

In order to reform administrative procedures in the construction sector more strongly, substantially, and drastically, to meet the requirements and directions of the Politburo, and the government, the prime minister requested the MoC to cut down on construction permit procedures for construction projects with detailed planning at a scale of 1/500 or developments in areas with approved urban designs; to continue to study and thoroughly decentralise the authority to handle administrative procedures for appraisal, design, construction permit issuance, and inspection of acceptance work in accordance with the organisation of administrative units.

People's committees of provinces and centrally-run cities are asked to proactively monitor and inspect, within their authority, the compliance with laws on construction investment by entities participating in construction investment activities, ensuring state management, social order and safety when implementing the transition from pre-inspection to post-inspection and decentralising the authority to handle administrative procedures.

The Ministry of Construction (MoC) has been demanded to coordinate with other ministries and sectors to minimise processes and procedures for implementing social housing projects.

Regarding the North-South high-speed railway, Prime Minister Chinh reiterated that under Resolution No. 106/NQ-CP, the Government has approved the overall implementation plan, ensuring construction starts no later than December 2026

Vietnamese Minister of Construction Tran Hong Minh on May 20 had a meeting with South Korean Ambassador to Vietnam Choi Youngsam in Hanoi to discuss future cooperation opportunities.

Public investment is being deemed a lifeline for construction materials manufacturers such as cement and steel producers, which are currently under mounting pressure from fierce competition and shrinking export markets.