Construction permit for an FDI factory in Vietnam: exemptions, conditions, processing time and authority under Construction Law 135/2025

Construction Law No. 135/2025/QH15 (passed 10 December 2025, effective 1 July 2026) has fully replaced Construction Law 50/2014/QH13 and Law 62/2020/QH14, bringing a new framework for construction permits. For foreign investors (FDI) building factories in Vietnam, the key question is: is our project exempt from the construction permit, and if not, what are the procedure and timeline? This guide answers under the current legal framework.

The new legal framework for construction permits

Construction Law No. 135/2025/QH15 (10 December 2025) — effective 1 July 2026 (Clauses 2–3 of Article 43; Article 71; Clauses 3–5 of Article 95 effective from 1 January 2026 — per Article 94); replacing Laws 50/2014/QH13 and 62/2020/QH14.
Decree No. 175/2024/ND-CP (30 December 2024) — replacing Decree 15/2021/ND-CP; partially in force, amended by Decree No. 14/2026/ND-CP (13 January 2026) and Decree 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) and eight Ministry of Construction circulars — effective 1 July 2026.
Decree No. 140/2025/ND-CP; Decree No. 144/2025/ND-CP (12 June 2025, effective 1 July 2025) — delegation and decentralisation in the construction sector.

Note: Laws 50/2014, 62/2020 and Decree 15/2021 are no longer valid grounds. Research using only Law 135/2025 and its new guiding documents; any reference to old rules must be marked “before 1 July 2026”.

New principle: a permit before breaking ground, unless exempt

Under Article 43 of the 2025 Construction Law (“General provisions on construction permitting”): construction permits come in three types — (a) new construction permits; (b) permits for repair, renovation or relocation; (c) fixed-term construction permits. Before breaking ground, the investor must hold a construction permit, except in exempt cases.

Exemptions — the key change for FDI projects

Under Article 43, Clause 2 of Law 135/2025 (Point e of Clause 2 effective from 1 January 2026), notable exemptions include:

Point e: construction works under investment projects whose feasibility study report has been appraised by the specialised construction authority (including adjusted reports) and approved as prescribed → exempt from the construction permit;
Point g: grade-IV works and individual houses under 07 storeys with total floor area under 500 m² outside areas subject to architectural management.

Applying this to an FDI factory: two branches to distinguish

For an FDI factory project, there are two legal branches:

FDI projects subject to feasibility-study appraisal that have been appraised by the specialised construction authority and approved → exempt from the construction permit under Point e, Clause 2, Article 43.
Private-capital FDI projects not subject to feasibility-study appraisal → must still obtain a construction permit before breaking ground.

⚠️ Hence there is no absolute rule that “FDI factories need no construction permit”. The investor must first determine whether the project falls under feasibility-study appraisal — the single most important step.

Conditions for granting a construction permit

Under the 2025 Construction Law’s provisions on permitting conditions, the basic conditions include: conformity with planning; conformity with land-use purpose; assurance of work safety, fire prevention and environmental protection; construction design appraised/approved as prescribed; and a valid application dossier. Technical note: the exact article numbers in Law 135/2025 are being verified against the original text — consult the latest statutory text directly when preparing a dossier.

Processing time: sharply shortened

According to the Ministry of Construction’s official dissemination at the conference rolling out the 2025 Construction Law, licensing time has been sharply shortened to a maximum of 07 days (replacing the old 20-day / 15-day framework). Note: this figure comes from official dissemination materials; the specific article numbers in Law 135/2025 are being verified against the original text and Consolidated Document 91/2026/VBHN-ND-BXD — investors should confirm the applicable timeline with the local licensing authority when scheduling the project.

Licensing authority: where does an in-park factory file?

Construction-permit authority rests with the provincial People’s Committee, delegated/authorised to the Department of Construction, the Management Boards of industrial parks/export-processing zones/high-tech parks/economic zones and commune-level People’s Committees (Official Letters 9516/BXD-KTQLXD and 9600/BXD-KTQLXD of 2025; Decrees 140/2025 and 144/2025).

Example — Ho Chi Minh City (Decision 29/2025/QD-UBND, effective 1 January 2026): the Management Boards of export-processing and industrial parks and of the High-Tech Park grant construction permits for works under their management. → Working rule: an FDI factory inside an industrial park files with the park’s Management Board (per each province’s specific delegation decision).

Dossier and procedure

The detailed dossier, sequence and procedure are set out in the guiding documents for the 2025 Construction Law (Decree 175/2024 and amending documents; Consolidated Document 91/2026/VBHN-ND-BXD). Note: the details (forms, dossier components) are being verified against the latest consolidated text — do not assume the old Decree 15/2021 article numbers or forms still apply. The new direction: the state authority controls only once per project/work from preparation to groundbreaking, while expanding online public services for dossier receipt and processing.

Risks of breaking ground without a permit

Building without a construction permit (where no exemption applies) is an administrative violation in construction activities, sanctioned under Decree 16/2022/ND-CP — including orders to demolish the violating portion. Note: the validity and article numbers of sanctions after the 2025 Construction Law took effect are under review; specific fine levels must be checked against the text in force at the time of enforcement.

Recommendations for FDI investors

Step 1 — determine feasibility-study appraisal scope: if in scope and appraised + approved → exempt; if not → prepare a permit application.
Identify the right receiving authority: in-park factories → the park Management Board per the province’s delegation; outside parks → the Department of Construction or commune level per delegation.
Build permitting time into the master schedule: the new framework shortens licensing to a maximum of 07 days (to be confirmed locally), but dossier preparation and design appraisal still need adequate time.
Stop using old documents for planning: all references to Laws 50/2014, 62/2020 and Decree 15/2021 expired on 1 July 2026.

Frequently asked questions

Does an FDI factory in an industrial park need a construction permit?

It depends: projects with an appraised and approved feasibility study report are exempt (Point e, Clause 2, Article 43 of Law 135/2025); projects outside appraisal scope must still apply.

Where do we file the application?

In-park factories: the park Management Board per the province’s delegation decision. Outside parks: the Department of Construction or commune level per delegation.

How long does permitting take?

Under the newly disseminated framework, licensing takes a maximum of 07 days (a sharp cut from the old framework). Confirm the specific timeline with the local licensing authority.

When did Construction Law 2025 take effect?

1 July 2026 (some provisions effective from 1 January 2026 per Article 94), replacing Construction Laws 50/2014 and 62/2020.

Legal references

Construction Law No. 135/2025/QH15 (10 December 2025) — effective 1 July 2026 (some provisions from 1 January 2026 — Article 94); 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).
Six decrees guiding the 2025 Construction Law — consolidated in 91/2026/VBHN-ND-BXD (25 September 2026); eight Ministry of Construction circulars — effective 1 July 2026.
Decrees No. 140/2025/ND-CP and No. 144/2025/ND-CP (12 June 2025, effective 1 July 2025) — delegation and decentralisation.
Decree No. 16/2022/ND-CP — administrative sanctions in construction (validity/article numbers after the 2025 Law under review).