A conceptual correction up front: foreign contractors do not apply for a “construction capacity certificate”. The instrument governing foreign contractors in Vietnam is the “construction activity license” (Giấy phép hoạt động xây dựng) — granted for each specific contract/package. Moreover, under the 2025 Construction Law, organisational capacity certificates have been abolished — there is no longer any such thing as a foreign contractor needing a “grade I/II/III capacity certificate”. This article explains the correct regime under the current legal framework.
Current legal framework
- Construction Law No. 135/2025/QH15 (10 December 2025, effective 1 July 2026) — replacing Laws 50/2014/QH13 and 62/2020/QH14.
- Decree No. 175/2024/ND-CP (30 December 2024) — replacing Decree 15/2021/ND-CP; in force, amended by Decrees No. 14/2026/ND-CP (13 January 2026) and No. 67/2026/ND-CP (4 March 2026).
- Six decrees guiding the 2025 Construction Law (consolidated in 91/2026/VBHN-ND-BXD dated 25 September 2026) — effective 1 July 2026.
- Decree No. 144/2025/ND-CP (12 June 2025, effective 1 July 2025) — cutting the licensing/adjustment timeline to a maximum of 10 days.
- Decree No. 96/2026/ND-CP (effective 31 March 2026) — foreign contractors’ construction activities are on the market-access restriction list for foreign investors.
Three often-confused concepts
| Concept | Applies to | Current status |
|---|---|---|
| Construction activity license | Foreign organisations/individuals — granted per contract/package | Still in force (Decree 175/2024, continued in the 2025 Law’s guiding documents) |
| Practising certificate | Individuals (including foreigners) directly practising construction | Still in force under the Decree 175/2024 framework |
| Organisational capacity certificate | Domestic construction enterprises (previously) | Abolished under the 2025 Construction Law — not applicable to foreign contractors |
The principle: no license, no operation
A foreign contractor — an organisation established under foreign law or a foreign national, selected/contracted to perform a construction contract in Vietnam (general contractor, consortium member, main or sub-contractor) — may only carry out construction activities in Vietnam after being granted a construction activity license by the state construction authority.
Conditions for granting the license
Under the licensing-conditions regime for construction activity licenses in Decree 175/2024/ND-CP (exact article numbers being cross-checked against Consolidated Document 91/2026/VBHN-ND-BXD), there are two conditions:
- Having a winning-bid decision or selection decision from the investor/main (sub-)contractor;
- Forming a consortium with a Vietnamese contractor or engaging Vietnamese sub-contractors, except where domestic contractors lack the capacity to participate in any part of the package. The consortium/sub-contract arrangement must clearly delineate the content, volume and value of the work performed by the Vietnamese contractor.
Technical note: the foreign-contractor provisions are being verified against Consolidated Document 91/2026/VBHN-ND-BXD (the six decrees guiding the 2025 Construction Law, effective from 1 July 2026) — confirm the exact article numbers and content against the current text when preparing a dossier.
Application dossier
Under the dossier provisions of Decree 175/2024/ND-CP (exact article numbers being cross-checked against Consolidated Document 91/2026/VBHN-ND-BXD), the dossier comprises 01 set:
- Application form per Form No. 01 (organisations) / Form No. 04 (individuals), Appendix III;
- Certified copy of the bidding result / contractor selection decision;
- Certified copy of the establishment license or enterprise registration certificate of the home country + practising certificate (if any);
- Experience report on activities related to the contracted work + copies of audited financial statements for the last 03 years (for non-bidding cases; if established for under 03 years, submit for the actual years);
- Copy of the consortium contract with the Vietnamese contractor or the (formal/in-principle) contract with Vietnamese sub-contractors;
- Lawful power of attorney (if any).
Foreign-issued documents must be consularly legalised (unless exempted under an international treaty); foreign-language documents must be translated into Vietnamese with notarised/certified translations.
Authority and timeline
- Authority: the Department of Construction grants the license (including adjustments). For activities spanning ≥02 provinces/cities → the Department of Construction where the contractor plans to locate its site office.
- Timeline: a maximum of 10 days from receipt of a complete and valid dossier (Decree 144/2025, applicable from 1 July 2025).
- Result: licensing decision per Form No. 05 (organisations) / Form No. 06 (individuals), Appendix III of Decree 175/2024.
- Fee: VND 2,000,000 per license (paid directly) — per Circular 38/2022/TT-BTC.
License validity
The construction activity license expires when: (a) the contract is completed and liquidated; (b) the contract ceases to be effective because the contractor is suspended, dissolved or bankrupt, or for other reasons under Vietnamese law and the law of the home country.
Post-licensing obligations
- Register a site office in the locality where the package is performed;
- Comply with the reporting regime;
- Observe Vietnamese law on tax, labour, occupational safety and environment;
- Perform only within the scope stated in the license and the winning contract.
Foreign individuals directly practising
For foreign individuals directly practising construction in Vietnam, the practising certificate regime applies (Decree 175/2024 framework): practising for under 06 months → foreign diplomas and competency licenses must be consularly legalised with notarised translations; 06 months or more → the practising certificate must be converted. This content is being re-verified against Consolidated Document 91/2026/VBHN-ND-BXD — confirm the exact articles and procedures against the current text.
Related note: work permits for foreign individuals at construction sites fall under Decree 219/2025/ND-CP — handle this in parallel with the construction activity license.
Practical recommendations
- Start the dossier as soon as the bid is won: licensing takes only 10 days, but consular legalisation and certified translation of foreign documents usually take the longest.
- Settle the consortium/Vietnamese sub-contractor plan early: it is a mandatory condition (unless you can prove domestic contractors lack capacity) with clearly delineated work volume and value.
- Identify the correct Department of Construction: activities in ≥02 provinces → file where the planned site office is located.
- Remember post-licensing duties: site-office registration and reporting — many contractors are penalised here, not at the application stage.
Frequently asked questions
Does a foreign contractor need a grade I/II/III capacity certificate?
No. Foreign contractors obtain a construction activity license per package; organisational capacity certificates were abolished under the 2025 Construction Law.
How long does licensing take?
A maximum of 10 days from receipt of a complete and valid dossier (Decree 144/2025, applicable from 1 July 2025).
Can one license cover multiple packages?
No. The license is granted per specific contract/package and expires when the contract is completed and liquidated.
Do foreign sub-contractors need a license?
Yes. Foreign sub-contractors must also obtain a construction activity license before working in Vietnam.
Legal references
- Construction Law No. 135/2025/QH15 (10 December 2025, effective 1 July 2026) — replacing Laws 50/2014/QH13 and 62/2020/QH14.
- Decree No. 175/2024/ND-CP (30 December 2024) — replacing Decree 15/2021/ND-CP; amended by Decrees No. 14/2026/ND-CP (13 January 2026) and No. 67/2026/ND-CP (4 March 2026). Foreign-contractor provisions to be verified against Consolidated Document 91/2026/VBHN-ND-BXD.
- Six decrees guiding the 2025 Construction Law — consolidated in 91/2026/VBHN-ND-BXD (25 September 2026), effective 1 July 2026.
- Decree No. 144/2025/ND-CP (12 June 2025, effective 1 July 2025) — 10-day maximum licensing/adjustment timeline.
- Circular No. 38/2022/TT-BTC — construction activity license fee.
- Decree No. 96/2026/ND-CP (effective 31 March 2026) — market-access restriction list for foreign investors.
Further reading
- Foreign contractor tax (FCT) 2026: when to withhold, how to calculate and declare
- Construction and EPC disputes: a handling handbook
Foreign contractor needing a construction activity license? FLAT Law Firm prepares dossiers (including consular legalisation and certified translation), files and follows up until the license is granted. Contact us.
Transparency note: This article was researched and quality-checked by FLAT Law Firm’s AI Legal Council under our internal review process. It is general legal information, not legal advice, and does not substitute for advice from a licensed lawyer. Article numbers on licensing conditions, dossiers and individual practising certificates should be verified against Consolidated Document 91/2026/VBHN-ND-BXD at the time of application.
