According to the new regulations of this Decree, any individual that has not yet to obtain a practicing certificate is entitled to participate in the construction sector where appropriate for his/her major, and is not authorized to run his/her own construction business as well as hold any title that requires the practicing certificate (Clause 2 Article 1).

Conditions, procedures for and competence to issue, revoke a construction practicing certificate; construction design, supervision, inspection and evaluation are also amended, supplemented in comparison with the earlier regulations (Clauses 3, 4, 5, 6, 7, 8 and 9 Article 1 of this Decree).

With regard to the certificate of eligibility for construction activities, this Decree increases its valid duration from 5 years to 10 years (Clause 20 Article 1).

Relating to foreign contractors, under this Decree, a foreign contractor has to establish an executive office in the area where the project is executed. Regarding the contract on planning formulation, construction project formulation, construction survey or construction design, the foreign contractor may establish an executive office in the area where the investor’s head office is located (Clause 40 Article 1)

In addition, according to the new regulations, a foreign contractor shall have its construction license revoked in one of the following cases: fails to take remedial actions against violations after the regulatory authority requests it in writing to take remedial actions more than once; It has incurred administrative penalties for the tasks covered by the granted construction license for the second time (Clause 39 Article 1).

This Decree takes effect from September 15th, 2018.

To abolish Article 22 of Decree No. 79/2009/ND-CP dated September 28th, 2009; Article 19 of Decree No. 64/2010/ND-CP dated June 11th, 2010; Article 27, Article 34 of Decree No. 24a/2016/ND-CP dated April 5th, 2016 and Article 16 of Decree No. 11/2013/ND-CP dated January 14th, 2013.