At an FDI investor’s project under construction, a subcontractor causes a fatal accident. The foreign investor immediately asks: "I contracted the main contractor; they hired the sub — what does it have to do with me?" The answer: potentially a lot, depending on whether the investor discharged its own duties.
1. The liability chain: subcontractor → main contractor → investor
Construction law sets a clear chain: the subcontractor answers to the main contractor for its scope; the main contractor answers to the investor for the entire works, including subcontracted parts — "that was the sub’s job" is no defence. For site safety, the main contractor must manage safety across the whole site, including subcontractor workers. A subcontractor-caused accident is first the main contractor’s responsibility toward the investor.
2. When is the FDI investor jointly liable?
The investor — FDI or domestic, the same law applies since the project company is a Vietnamese legal entity — has independent duties whose breach triggers joint liability: selecting an unqualified main contractor; knowing the main contractor illegally subcontracts (excessive scope, unqualified subs) and failing to stop it; squeezing schedule or price so hard the contractor must gut safety measures; failing to supervise or to suspend works upon discovering risks. Conversely, an investor that selected a qualified contractor, supervised properly and was not at fault bears no liability for a subcontractor’s accident.
3. Protection for victims: three layers
Layer 1: the subcontractor’s injured workers claim against their direct employer (the subcontractor) under Article 38 of the 2015 OSH Law. Layer 2: non-contractual damage (passers-by, neighbouring property) is compensated under Article 584 of the Civil Code 2015 by the at-fault party. Layer 3: criminal liability under Article 295 of the Penal Code 2015 targets specifically at-fault individuals — site managers, safety officers of the main or subcontractor — not automatically the investor as a legal person.
4. Contract clauses FDI investors should insist on
The main contract should provide: no subcontracting without investor approval; approval of the sub list and their capacity; the main contractor’s comprehensive site-safety responsibility; the investor’s right to suspend works upon safety breaches; and immediate accident reporting. Good contract governance lets the FDI investor prove it was "not at fault" when incidents occur.
This article has been quality-reviewed by the FLAW AI Legal Council
Frequently Asked Questions
Does a different law apply to FDI investors?
No. An FDI project company is a Vietnamese legal entity subject to the same construction, labour and criminal law as any other investor.
Can the main contractor subcontract freely?
It must follow the investor contract and legal rules on subcontracting (scope, ratios, sub capacity); illegal subcontracting is a violation, and the main contractor remains fully responsible.
Whom do the subcontractor’s injured workers claim against?
Their direct employer, the subcontractor, under Art. 38 of the 2015 OSH Law; if the sub defaults, the at-fault main contractor and investor may be jointly liable by degree of fault.
What should the investor do right after a subcontractor accident?
Order the hazardous activity stopped; cooperate with rescue and investigation; re-audit sub capacity and the main contractor’s safety measures; preserve all records proving proper selection and supervision.