From 01/7/2026, Vietnam’s Construction Law 2025 (Law No. 135/2025/QH15, passed on 10/12/2025) officially replaces the 2014 Construction Law, ushering in a new legal framework for all construction investment activities in Vietnam. This is the most far-reaching reform of the construction sector in over a decade, shifting philosophy from “pre-approval through permits” to “management through data and post-inspection”.
This article summarizes the 10 changes with the most direct impact on businesses — investors, contractors and consultants — so you can review internal procedures before the new law fully applies.
1. Projects reclassified into 3 groups (Article 17)
The 2025 Law streamlines construction investment projects into 3 groups: (i) public investment projects; (ii) PPP projects; and (iii) business investment projects — covering most corporate projects, including those of state-owned enterprises operating under the Enterprise Law.
The practical significance is substantial: business investment projects enjoy autonomy over design content, self-appraisal and approval of detailed designs after project approval, free choice of project management model, and are not bound by the norm systems and cost-management rules applicable to public investment projects. State-invested companies should re-check their project classification — misclassification can lead to wrong procedures.
2. Far fewer projects need a construction permit (Article 43)
Clauses 2 and 3 of Article 43 expand the list of works exempt from construction permits to 8 groups (effective early, from 01/01/2026). The Law’s direction: each work or project should be subject to only one administrative procedure before breaking ground — instead of overlapping “gates” as before. Note: exemption does not mean zero procedure — most exempt cases must still send a commencement notice to the competent state construction authority.
3. Comprehensive reform of construction contracts
The 2025 Law comprehensively revises the chapter on construction contracts to align with the Bidding Law and the 2015 Civil Code, reinforcing freedom and voluntariness of agreement. Key new contents include force majeure, fundamental change of circumstances, price adjustment mechanisms, suspension and termination. Details are guided by Decree 210/2026/ND-CP (effective 01/7/2026).
4. Organizational capacity certificates abolished — self-declaration instead
One of the most notable changes: from 01/7/2026, organizations participating in construction activities no longer need a capacity certificate. Under Clause 6 of Article 88, organizations self-declare their construction capacity information on the Ministry of Construction’s portal (csdlhdxd.gov.vn) — the basis for investors to consider when selecting contractors. The legal representative is responsible for the accuracy of declared information.
5. Individuals: exams abolished, two practice certificate types cut
For individuals, the 2025 Law (Article 89) and Decree 212/2026/ND-CP abolish the examination requirement for practice certificates — assessment is based on dossiers and experience. At the same time, from 01/7/2026, project management and construction costing practice certificates are no longer issued (project management becomes a “practice condition”). Practice certificates are issued and delivered electronically, linked to the individual’s capacity identification code.
6. Cost management and capital settlement codified in the Law
The 2025 Law expressly adds cost management, payment and investment capital settlement into the statute — previously governed mainly by decrees. Decree 206/2026/ND-CP details construction investment cost management, with a trend of strong decentralization to investors and control within the approved total investment.
7. Businesses self-appraise and approve detailed designs
For business investment projects, after project approval, enterprises may self-appraise and approve detailed designs following the basic design — without submitting to specialized construction agencies for appraisal as under the old mechanism in many cases. This is a significant procedure cut, accompanied by greater responsibility for investors and consultants.
8. Tighter payment discipline for construction contracts (Decree 210/2026)
Decree 210/2026/ND-CP tightens payment discipline: the awarding party must pay within a maximum of 14 working days from receipt of complete valid dossiers; late payment bears interest. Maximum advance payment is 30% of contract value (this cap has applied since Decree 35/2023; Decree 210 inherits it); advances above VND 1 billion require an advance payment guarantee; advances must be fully recovered when cumulative payments reach 80% of contract value.
9. Clear transitional provisions (Article 95)
The principle: construction investment projects and designs approved before 01/7/2026 need not be re-approved; subsequent not-yet-performed activities follow the 2025 Law. Works already permitted under the 2014 Law but now exempt need no permit adjustment when designs change. Note: Clauses 3, 4 and 5 of Article 95 take effect early, from 01/01/2026.
10. Clearer division between state and participant responsibilities
Running through the 2025 Law is the philosophy of clear demarcation: state agencies focus on institution-building, issuing technical regulations, post-inspection and violation handling; while responsibility for quality, schedule and safety rests with participants — investors, contractors, consultants. Greater autonomy always comes with heavier legal liability, especially in quality and safety management.
Frequently asked questions
Q: Must ongoing projects redo procedures under the 2025 Law?
A: No. Decisions approved before 01/7/2026 remain valid; only subsequent not-yet-performed activities apply the 2025 Law (Article 95).
Q: Does a construction company need to re-apply for a “capacity certificate”?
A: No — organizational capacity certificates were abolished from 01/7/2026. Instead, companies self-declare capacity information on the Ministry of Construction’s system.
Q: When do the new permit-exemption rules take effect?
A: Clauses 2 and 3 of Article 43 (permit exemptions) take effect from 01/01/2026 — six months earlier than the rest of the Law.
Need to review project classification, contracts and capacity dossiers under the 2025 Construction Law? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. Content is pending QA Council review before submission for approval; information is for reference only and does not replace legal advice for your specific case.
