Legal framework should support construction firms: insider

Cumbersome legal requirements are one of the biggest challenges for Vietnamese construction companies, said Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors in an interview with VN Economy.

Legal stability required for condotel investment
Serious violations of Law on Land Planning

Legal framework should support construction firms: insider
Illustrative image -- File photo

Have you found any contradictions in legal documents in the construction field?

It is rather common in Vietnam that one issue is subjected to the adjustment of several laws. This leads to the problem of contradictions and overlapping between these laws. For example, the Ministry of Construction is tasked to build the Construction Law, the Ministry of Natural Resources and Environment is in charge of the Land Law, while the Ministry of Planning and Investment makes the Investment Law.

Such a practice has led to problems in the course of implementation. Under Vietnamese law, all public investment projects are subjected to the jurisdiction of the Law on Public Investment while the Construction Law governs both the use of the State Budget and financial resources from other agencies. Of course, the Construction Law is strongly related to the Housing Law, the Investment Law, the Land Law and others.

Does the Viet Nam Association of Construction Contractors help enterprises solve their problems?

We have sent a petition to the National Assembly and the Government asking them to review all laws related to construction to avoid overlaps between them. All we want is harmonisation in all related laws. We want Investment Law to be more comprehensive. Of course, the Construction Law must be synchronised with relevant laws, including the Investment Law, the Law on Public Investment, the Law on Tendering, the Housing Law and the Land Law.

At present some 60 per cent of investment in the construction sector comes from different financial resources – not only the State budget. That’s why contracts should have a provision to guarantee fair treatment among all signing parties.

What’s more important, the projects should commence the construction work when the project budget has been settled fully. This will avoid outstanding debt problem in many construction projects in Vietnam nowadays. In some projects, 75-80 per cent of the construction work was finished, yet they didn't have the money to finish the projects.

 

According to statistics, the revenue of many construction enterprises has been shrinking. Do you know why?

Revenues of most of the Vietnamese construction enterprises have dropped considerably as they don’t have new projects to do.

Of course, the revision of the construction law has also contributed to the drop in the number of construction projects, particularly Decree 60 which orders the review of all projects, including those using public land.

From the point of view of the Viet Nam Association of Construction Contractors, we want the Government to overhaul the country's real estate market to make it operate with more transparency and accountability.

What do you say to those who say Vietnamese construction firms are weak in today's competitive market?

Recently, Vietnamese private construction companies have gained more experience and have taken part in many big construction projects - both at home and abroad, including the Landmark 81 building with 81 stories.

The Landmark 81 project is an example. The owner of the building is VinGroup – a private Vietnamese investor. Under Vietnamese law, the construction of tall buildings must go through international bidding. In spite of intense competition from foreign companies, Coteccons, a Vietnamese construction company, won the contract.

TBKTVN/VNS

 
 

Other News

.
Struggles forecast on ending earnings season, rally lock-in
Struggles forecast on ending earnings season, rally lock-in
BUSINESSicon  19/10/2020 

The market will struggle in the coming days as the third-quarter earnings season is near its end and investors will try to realise their profits following recent rallies.

Investors see agricultural processing sector as ripe for plucking
Investors see agricultural processing sector as ripe for plucking
BUSINESSicon  19/10/2020 

On September 27 construction of a US$66 million hi-tech agricultural complex began in the Central Highlands province of Dak Lak.

Russian locality hopes to boost trade ties with Vietnam
Russian locality hopes to boost trade ties with Vietnam
BUSINESSicon  19/10/2020 

The Udmurtia Republic, a federal subject of Russia, is planning a webinar on November 17 to promote its export and investment potential to Vietnamese businesses and agencies.

Boeing to bring more technologies to local airlines
Boeing to bring more technologies to local airlines
BUSINESSicon  18/10/2020 

To cope with the COVID-19 pandemic, Boeing has sped up its ecoDemonstrator programme to support its partner airlines, including those in Vietnam.

VN has been active as foreign companies plan investment relocation
VN has been active as foreign companies plan investment relocation
BUSINESSicon  18/10/2020 

Vietnam has been seen as an ideal destination for foreign companies looking for elsewhere to relocate production channels in a bid to diversify their supply chains in the post-Coronavirus pandemic.

Exploitable security plagues digitalisation
Exploitable security plagues digitalisation
BUSINESSicon  19/10/2020 

Disruptive technologies spur the evolution in the financial landscape, with comprehensive applications providing convenient access to customers’ banking needs.

New FTAs puts logistics in limelight
New FTAs puts logistics in limelight
BUSINESSicon  19/10/2020 

New-generation free trade agreements are increasing the importance of domestic logistics groups, with Vietnam emerging as a safe yet high-return market for overseas parties pouring money into new developments.

MoIT helps enterprises deal with increasing trade remedy cases
MoIT helps enterprises deal with increasing trade remedy cases
BUSINESSicon  17/10/2020 

Vietnam’s export goods face more trade remedies in the process of deep economic integration, so the Ministry of Industry and Trade has developed solutions for the situation.

ASEAN pushes forward with 5G connectivty cooperation
ASEAN pushes forward with 5G connectivty cooperation
BUSINESSicon  17/10/2020 

As ASEAN chair this year, Vietnam is playing a crucial role in further cementing joint activities within the bloc via boosting the application of high technologies to adapt to Industry 4.0, which is sweeping throughout the region.

Macadamia nuts ripe for billion-dollar expansion
Macadamia nuts ripe for billion-dollar expansion
BUSINESSicon  19/10/2020 

Vietnam wants to earn around $1 billion from growing macadamia by 2030, and although some plantations have achieved partnerships with domestic buyers, 

Real estate stocks await cash flow
Real estate stocks await cash flow
BUSINESSicon  17/10/2020 

Domestic and foreign capital flow is expected to bolster real estate shares after the COVID-19 pandemic as many investors are paying attention to the industry.

Online exports require professionalism
Online exports require professionalism
BUSINESSicon  17/10/2020 

Using online platforms to boost exports is the fastest way to bring Vietnamese goods to the world, said business leaders and industry experts.

Vietnam to become the 4th largest economy in Southeast Asia: IMF
Vietnam to become the 4th largest economy in Southeast Asia: IMF
BUSINESSicon  17/10/2020 

Vietnam's GDP is estimated to reach US$340.6 billion this year, making it the fourth-largest economy in Southeast Asia.

Long Thanh Airport: investment rate high, ACV may lack money
Long Thanh Airport: investment rate high, ACV may lack money
BUSINESSicon  19/10/2020 

The Ministry of Finance (MOF) has warned about problems with the Long Thanh International Airport project, citing capital arrangement capability.

The dark future of hotels on 'golden land' in Hanoi
The dark future of hotels on 'golden land' in Hanoi
BUSINESSicon  18/10/2020 

A series of hotels have had to cancel their opening plans this year because of Covid-19. Many hotels have been put up for sale because of poor patronage.

Special day for two billionaires: mountains of money pouring in
Special day for two billionaires: mountains of money pouring in
BUSINESSicon  18/10/2020 

Techcombank share prices have soared, while the Hoa Phat Group of the billionaire Tran Dinh Long has reported a record 30-year profit. The prosperity of these enterprises has helped their owners earn more money despite Covid-19.

Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Meeting expectations of the corporate bond market
Meeting expectations of the corporate bond market
BUSINESSicon  16/10/2020 

A new government decree tightens conditions on the issuance of corporate bonds. However, before the decree came into effect, enterprises flooded the market with new issuances.

M&A activities signal promising fortunes
M&A activities signal promising fortunes
BUSINESSicon  17/10/2020 

Although merger and acquisition levels dropped in 2020 across Vietnam, the prospect for such activities remain bright for next year as overseas investors look to local businesses in order to improve market access.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

 
 
 
Leave your comment on an article

OR QUICK LOGIN