According to the deputy minister, the Ministry of Construction has submitted six implementing decrees to the government covering construction investment cost management, construction quality, building materials, construction contracts, licensing requirements for construction activities and construction management. The ministry has also issued eight circulars and a decision announcing standard construction contract templates.

The entire package of legal documents will take effect simultaneously on July 1.

One of the most significant reforms is the overhaul of building permit procedures. Under the new regulations, state authorities will conduct only one regulatory review for each project or construction work from the investment preparation stage until construction begins.

Projects and construction works whose feasibility study reports have already been appraised by the competent construction authority will be exempt from obtaining a building permit.

For projects that still require permits, applications will be processed entirely online. Documentation requirements have been simplified, unnecessary conditions have been removed and the expected processing time has been reduced to no more than seven days.

According to the Ministry of Construction, the exemption policy follows the principle that each project should undergo only one administrative procedure between the project preparation stage and the start of construction.

Bui Van Duong, Deputy Director General of the Department of Construction Economics and Investment Management, said the new exemption provisions build on existing regulations while expanding the categories of projects eligible for exemption. The changes also provide clearer guidance for private houses of fewer than seven storeys, Grade IV houses in rural areas and buildings located in areas without approved urban or rural planning schemes or architectural management regulations.

Business licensing requirements reduced

Another major change under the revised Construction Law is the abolition of the requirement for construction companies to obtain construction competency certificates.

The law also removes professional practice certificate requirements for individuals in a number of construction-related fields.

According to the Ministry of Construction, reducing these business conditions will significantly lower market entry costs and create a more favourable operating environment for businesses.

The law also reforms project management by replacing specialised project management boards and regional project management boards with a unified model known as the Construction Investment Management Board. Other management arrangements are consolidated under the model of project management organised by the investor, in line with Vietnam's new two-tier local government structure.

Beyond administrative reforms, the 2025 Construction Law introduces a range of measures to accelerate digital transformation across the construction sector.

A National Information System and Database for Construction Activities will be established to provide each construction project with a unique digital identity, supporting construction order management and the delivery of online public services.

The new regulations also encourage the development of green buildings, environmentally friendly construction materials, energy-efficient technologies and wider application of science and technology throughout construction investment activities.

Regarding construction investment cost management, the law clarifies cost concepts, cost estimation methods, construction norms and pricing systems while providing greater flexibility in applying these tools, particularly under special policy mechanisms.

In the field of construction contracts, several provisions have been revised to ensure consistency with the Law on Bidding and the Civil Code. The amendments introduce mechanisms for addressing force majeure events, fundamental changes in circumstances and safeguards for contractual performance.

Hong Khanh