Scenario: an investor about to build a two-storey factory in an industrial park asks: “Are factory buildings under 7 storeys exempt from construction permits, like houses?” The short answer: the 7-storey threshold is not for factories at all — but in-park factories do have their own exemption route, on entirely different conditions. Misreading that route is a common reason projects are suspended right after the ground-breaking ceremony.
Who does the “under 7 storeys” threshold actually cover?
Within the permit-exemption system, the threshold “under 7 storeys and under 500 m² of total floor area” attaches to housing in urban development and housing projects with an approved 1/500 detailed plan. Production workshops are not in that group: a single-storey factory still needs a construction permit if it falls under no other exemption, while a multi-storey factory can still be exempt if it meets the industrial park conditions. For a factory, the number of storeys goes to the work’s grade and design-appraisal requirements — it is not an exemption ground.
The real exemption route for in-park factories
The Construction Law 135/2025/QH15 was passed on 10 December 2025 and takes effect on 1 July 2026; clauses 2 and 3 of Article 43 and Article 71 apply early, from 1 January 2026. Under clause 2, Article 43, works in industrial park, export processing zone or high-tech park projects with an approved 1/500 detailed plan and an appraised construction design are exempt from the construction permit. This continues point (dd), clause 2, Article 89 of the Construction Law 50/2014/QH13, and the new law widens it under a “single control” principle: works in projects whose feasibility study has been appraised by the specialised construction authority in an area covered by an approved 1/500 plan or urban design are also exempt. Both conditions must hold together: an approved 1/500 plan for the project area, and an appraised design for the specific work — the park’s plan does not replace appraisal of each factory’s design.
Exemption still leaves three obligations
First, commencement notice: the investor sends notice of the start date with the design dossier to the local construction authority and the park management board for monitoring and filing. Second, strict fidelity to the appraised design and the 1/500 plan — any change to scale, load-bearing structure or function must be appraised as an amendment before building; building contrary to the design is fined and must be restored or demolished even where no permit was required. Third, sectoral procedures are not waived: fire-protection design appraisal, environmental impact assessment or environmental license, and infrastructure connections must still be completed under their own laws. Before breaking ground, prepare a one-page cross-check: which point of clause 2, Article 43 grounds the exemption, the number of the 1/500 plan approval, and the number of the design appraisal — this trio is the first file an inspection team asks for on site.
Frequently Asked Questions
Can a factory building inside an industrial park be exempt from a construction permit?
Yes, but not because of its height. Under clause 2, Article 43 of the Construction Law 135/2025/QH15 (in force early, from 1 January 2026), works in an industrial park, export processing zone or high-tech park project with an approved 1/500 detailed plan and an appraised construction design are exempt from the construction permit — continuing point (dd), clause 2, Article 89 of the 2014 Construction Law. The new law’s through-line is single control: once the specialised construction authority has appraised the design, no permit is layered on top. Miss either condition — the 1/500 plan or the design appraisal — and a permit is required as usual.
Which construction works are permit-exempt under the new law?
Clause 2, Article 43 of the Construction Law 135/2025/QH15 lists the cases; those directly relevant to industrial investors include: works in industrial park projects with an approved 1/500 detailed plan and appraised design; works in investment projects whose feasibility study has been appraised by the specialised construction authority in an area with an approved 1/500 plan or urban design; internal repair, renovation and equipment installation that does not alter load-bearing structures, function, environment or safety; and temporary works serving the main construction. The ‘under 7 storeys’ threshold applies only to housing in urban and housing development projects — never to factory buildings.
If exempt, must the investor still notify commencement, and to whom?
Yes. The investor must send a notice of the commencement date together with the construction design dossier to the local state construction management authority (and to the industrial park management board for in-park projects) for monitoring and filing. The notice is not an approval procedure — the authority does not ‘approve’ it — but failing to notify breaches construction-order rules and is typically caught the moment an inspection team cross-checks site documents.
What happens if an exempt project is built contrary to the design?
Exemption removes the permit, not compliance: the work must be built exactly to the appraised design. Building contrary to it (extra floors, enlarged area, changed load-bearing structure) draws administrative fines in construction, forced remediation — restore the appraised design or demolish the deviating part — and the deviating part will fail completion documentation and fire-protection acceptance, so it cannot be accepted into use. If the deviation changes the investment project’s function or scale, the investor must also amend the investment policy and the design before continuing.
This article has been quality-reviewed by the FLAW AI Legal Council