GUIDELINES FOR APPLICATION OF FOREIGN CONTRACTOR LICENSE

GUIDELINES FOR APPLICATION OF FOREIGN CONTRACTOR LICENSE

When preparing the application for foreign contractor license, enterprises should pay attention to the completeness and accuracy of the documents. The application typically includes information about the contractor’s capacity, experience, legal status, and relevant supporting documents. Additionally, it is essential to comply with regulations regarding translation, notarization, and the validity of documents under the law of Vietnam, if required. Thoroughly preparing the application not only facilitates the review process for obtaining a foreign contractor license (or construction activity license for foreign contractors) but also increases the chances of successful licensing.

It is necessary to prepare a complete application in accordance with regulations

According to current legal provisions, the application for a foreign contractor license includes:

– Application for a construction operation license;

– Bidding results or the decision to select a legal contractor;

– Establishment license or business registration certificate for the organization and the practice certificate (if any) issued by the country where the foreign contractor is a national;

– Report on operating experience related to the contracted work and consolidated financial audit report for the last 3 years (in case of non-compliance with the provisions of the law on bidding);

– Joint venture contract with a Vietnamese contractor or the official contract or the principle contract with a Vietnamese subcontractor to perform the contracted work (included in the bidding documents or bidding documents);

– Legal authorization letter for a person who is not the legal representative of the contractor;

– Project approval decision or investment decision or investment certificate of the project/construction.

Preparing the application not only facilitates the review process for obtaining a foreign contractor license but also increases the chances of successful licensing (Photo: Internet)

Some important considerations when preparing the application for foreign contractor license

– Application must be made in Vietnamese;

– Foreign establishment license or business registration certificate must be legalized by the leader, except in cases where international treaties to which Vietnam and related countries are members have provisions on exemption of localization fees.

– Other papers and documents, even in foreign languages, must be translated into Vietnamese and the translation must be proven and certified according to the provisions of law of Vietnam.

– In principle, foreign contractors must contact Vietnamese contractors or use Vietnamese subcontractors, except in cases where domestic contractors are not qualified to participate in any work of the bid package. When forming a joint venture or using a Vietnamese contractor, it is necessary to determine the content, volume and value of the work performed by the Vietnamese contractor in the joint venture; the Vietnamese subcontractor shall perform; In case the foreign contractor has no contact or uses Vietnamese subcontractors, the reason must be clearly explained.

The application will be received and processed by the competent state authority based on specific circumstances

Specifically:

– The Department of Construction issues construction activity licenses for foreign contractors undertaking construction investments within the administrative area of the province.

– In cases where the construction investment project spans two or more provinces, the competent authority is the Department of Construction of the locality where the foreign contractor intends to set up its operational office.

Legal basis:

  • Construction Law 2014;
  • Amended Construction Law 2020;
  • Decree 15/2021/ND-CP guiding a number of contents on construction investment project management;
  • Decree 35/2023/ND-CP amending Decrees under the state management of the Ministry of Construction;
  • Circular 02/2019/TT-BXD providing detailed guidance on the periodic reporting regime; amending, supplementing and replacing a number of articles of the Circular related to the periodic reporting regime under the state management of the Ministry of Construction.

𝐋𝐈𝐍𝐂𝐎𝐍 𝐋𝐀𝐖 𝐅𝐈𝐑𝐌 – 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐜𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧

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