New Regulations to Guide Implementation of the Construction Law
The new Law on Construction 2020 was ratified last summer and came into force on 1 January 2021. It replaced the previous legislation dated 2014 and includes some important changes on issues such as pre-feasibility studies, construction permits, environmental impact assessments, and administrative procedures.
Over the last few weeks, the government has issued three new decrees to guide the implementation of the 2020 Construction Law.
Decree 09/2021/ND-CP
The first, Decree 09/2021/ND-CP, was issued on 9 February 2021 and replaced Decree 24a/2016/ND-CP. It covers the development, production, and management of construction materials and – in particular – their safe, efficient, and sustainable use. Decree 09 applies to all state agencies, organizations, and individuals in the field of construction; but not to projects or manufacturing facilities approved before the regulation came into force.
Decree 10/2021/ND-CP
Meanwhile, Decree 10/2021/ND-CP – also issued on 9 February – governs the management of construction costs for projects using public investment or state capital as well as those funded through public-private partnerships. The decree covers a range of issues including project cost estimates, investment capital, management and consultation costs, alongside cost settlement and liquidation.
It stipulates the rights and responsibilities of the authorizing authorities, investors, and contractors; and applies to state agencies, organizations, and individuals involved in the construction of the projects described above. However, like Decree 09, it does not cover all aspects of on-going projects which began before Decree 10 was issued. These remain subject to the old regulations – Decree 68/2019/ND-CP – with some overlap.
For instance, if a project had been appraised before 1 January 2021 under the old Law on Construction, but its total investment capital had not been appraised before 9 February – after the new Law on Construction had entered into force – then the appraisal would be conducted under the old legislation and its guiding documents. However, the management of construction costs for this project would be subject to the amended Law on Construction and Decree 10.
Decree 15/2021/ND-CP
The final implementing regulation for the new Law on Construction – Decree 15/2021/ND-CP – governs the creation, appraisal, and approval of construction projects and design; construction permits and security; as well as special and overseas construction projects. Issued and implemented on 3 March, it applies to local and foreign individuals and organizations involved in construction activities in Vietnam, as well as Vietnamese nationals and enterprises investing in international and ODA projects.
Decree 15 applies to construction projects which began after it took effect, replacing Decree 59/2015/ND-CP. However, as with the previous two decrees, there is some overlap between the old and new regulations. For instance, projects whose basic design and construction were approved before Decree 15 entered into force will not be required to undertake feasibility studies. However, subsequent steps – such as project or design adjustments – must be compliant with Decree 15.
For detailed information on the application of Decrees 09, 10, and 15 please contact the team at Audier & Partners: contact@apflpartners.com
