Foundations dug, columns up — then construction inspectors arrive and suspend the works: no building permit. Machines idle, workers stand around, every halted day burns money. That is the price of "build first, permit later" thinking — and the law has a full procedure for exactly this situation.
1. When is a building permit required?
Article 89 of the Construction Law 2014 (as amended by Law 62/2020/QH14) requires investors to hold a construction permit before breaking ground, except exempt cases (state-secret works, emergency-order works, rural detached houses outside planning areas, etc.). Factories in industrial parks, warehouses and production facilities almost always need a permit — there is no grey zone to slip through.
2. Sanctions for building without a permit
Building without a required permit draws administrative sanctions under Decree 16/2022/ND-CP on construction-sector violations, with measures scaled to severity: immediate suspension of works; fines; an order to obtain the permit within a set deadline — if eligible and completed in time, works may resume; if ineligible or the deadline lapses, demolition of the violating construction is ordered. In short, the law offers exactly one exit: regularise with a genuine permit — there is no "ask-forgiveness" route.
3. How to remedy and resume
Step 1: obey the suspension — building on during suspension aggravates the violation and may trigger forced enforcement. Step 2: review permit conditions: planning, design, fire safety, environment, land — and prepare a complete permit dossier. Step 3: file and complete the permit within the deadline set by the sanction decision. Step 4: resume only with the permit in hand and a resumption decision. Note: demolition costs (if ordered) and all suspension losses fall on the investor — recoverable from no one.
4. Lessons for investors, especially foreign ones
Foreign investors used to home-country procedures sometimes leave everything to the local contractor without checking legalities. Contracts must state who is responsible for permitting and the penalties if the contractor builds unpermitted. Cheapest remains: permit first, break ground second.
This article has been quality-reviewed by the FLAW AI Legal Council
Frequently Asked Questions
Are factories inside industrial parks exempt from permits?
Not automatically. Exemptions apply only to specifically listed cases; ordinary workshops and warehouses still need a construction permit before starting.
What if the project qualifies for a permit after suspension?
Complete the permit procedure within the sanction decision’s deadline and works may resume — the law’s one "exit" for remediable violations.
What if the deadline passes without a permit?
The violating construction must be demolished at the investor’s cost, and the administrative fine still stands.
Is the contractor penalised for building knowing there was no permit?
Yes. Contractors participating in unpermitted construction are themselves violators under Decree 16/2022/ND-CP; contracts should allocate this responsibility clearly.