In investment projects with a construction component — from factories in industrial parks to office buildings — the construction permit is often the procedure that confuses foreign investors the most, because the seemingly simple question "does my project need a permit?" has no common answer for every case. The law both prescribes the cases requiring a permit and lists the cases that are exempt — and for projects in industrial parks, exemption comes with conditions which, if not fully met, turn "exempt" into "must apply". This article systematises the entire construction permit issue for projects in Vietnam from the perspective of the project investor.
Note on the current legal framework: the Law on Construction No. 135/2025/QH15 takes effect from 01/7/2026, replacing the Law on Construction 2014 — the provisions on construction permits now lie mainly in Articles 43 to 46 of the Law, guided in detail in Decree No. 217/2026/ND-CP. This article is presented under the current legal framework.
Where does the construction permit sit in the project procedure chain?
An investment project with construction of works usually passes through a chain of procedures: approval of the investment policy or issuance of the investment registration certificate; land allocation and land lease; preparation, appraisal and approval of the construction design; applying for a construction permit (if in the category requiring one); notice of commencement; construction; acceptance of completion and putting into use. The construction permit sits in the middle stage — after lawful land use rights exist and the design has been appraised, before commencement.
This position has practical significance: a permit cannot be applied for without documents proving lawful land use rights, and construction should not commence before the permit stage is completed or the exemption conditions are fully met. Many projects stall not because they cannot obtain a permit, but because the earlier stages — land, design — are incomplete.
Who must apply for a construction permit?
The general principle of the Law on Construction is that a construction work must have a construction permit issued by the competent state authority, except in exempt cases. Permits include: a new construction permit, a repair–renovation permit, a work relocation permit, and a time-limited construction permit for special cases.
For foreign investors’ projects, typical works that must apply include: newly built factories and warehouses outside exempt areas; office buildings. Conversely, internal repair and renovation works that do not change the load-bearing structure or the use function and do not affect the environment or the safety of the work are exempt. The boundary between "must apply" and "exempt" depends on the specific nature of each work and cannot be concluded generally for the whole project.
When is a project exempt from a construction permit?
This is the part of greatest interest, especially for projects in industrial parks. Under Article 43 of the Law on Construction 2025 (No. 135/2025/QH15, effective from 01/7/2026, replacing the Law on Construction 2014), the cases exempt from a construction permit include: state-secret works; urgent construction works; works under construction investment projects with an investment decision; temporary construction works serving construction; and — most important for industrial investors — works under a construction investment project whose construction investment feasibility study report has been appraised by the specialised construction authority and approved in accordance with regulations (point e, clause 2, Article 43). For works exempt under point e, clause 3, Article 43 requires the investor to send a notice of construction commencement together with the construction design dossier to the local state management authority for construction for monitoring and management. Not a few investors mistakenly think "exemption is automatic, nothing more needs to be done" — while without the commencement notice, the management authority can still handle the violation. The price of complacency is a sanctioning decision together with a requirement to suspend construction. A transitional note: projects under way before 01/7/2026 need to compare the exemption conditions under the new Law, and at the same time check the transitional provisions in the Law and Decree No. 217/2026/ND-CP to avoid applying the old Law’s criteria by mistake.
Exemption from a permit does not mean no procedures
Another common misunderstanding is treating "exemption from a permit" as synonymous with "build however one likes". The law clearly provides: an investor constructing a work exempt from a construction permit is responsible for sending a notice of construction commencement together with the construction design dossier to the local state management authority for construction for monitoring and management under clause 3, Article 43 of the Law on Construction 2025.
In other words, exemption only waives the "applying for a permit" stage: the design must still be prepared and appraised in accordance with regulations; construction must still comply with the design and ensure quality and safety; the work must still be accepted as complete before being put into use. For works in the category requiring fire-prevention appraisal, the FPF obligations remain in full — the construction permit and the FPF appraisal are two independent procedures; exemption from one does not exempt the other.
What does the dossier for a construction permit include?
For cases requiring an application, the dossier requesting a construction permit for a non-linear work usually includes: the application for a construction permit; documents proving land use rights under land law; the project approval decision or investment decision; the construction design drawings; and a declaration of the capacity and experience of the designing organisation or individual in some cases.
The crux of the dossier lies in consistency: information about the investor, the location and the scale of the work must match across the land documents, the investment decision and the design drawings. Dossiers are often returned not for missing documents but for inconsistent information between the documents. Reviewing the consistency of the dossier before filing saves more time than any "connection" in the permit process.
Who issues construction permits?
The authority to issue construction permits is decentralised by work grade and work type: special-grade works are handled by the central authority; grade I and grade II works and works under projects with foreign investment capital are handled by the provincial-level authority or a decentralised, authorised authority — including the management boards of economic zones, industrial parks, export processing zones and high-tech parks for works within these boards’ management scope.
A note on currency: after the 2025 arrangement of administrative units and the organisation of two-tier local government, the specific authority in each locality may have changed from the previous decentralisation. Investors should confirm directly with the competent authority in the locality at the time of filing. In practice, in implementing projects in industrial parks, the management board of the industrial park or economic zone is usually the receiving and resolving focal point — and also the channel to work with early for specific guidance.
Sequence and resolution time
The sequence for issuing a construction permit includes the steps: filing the dossier with the competent authority; the receiving authority checking the completeness and validity of the dossier; appraising the dossier and obtaining the opinions of related authorities where needed; and issuing the permit or giving a written reply stating the reasons clearly in the case of non-issuance. The resolution time limit is prescribed by law by type of work and type of permit.
Practical experience: the actual time often extends if the dossier must be supplemented many times. The most effective way to shorten it is to prepare a complete, consistent dossier from the start. For projects with a tight schedule, the investor should build the permit application time (with provision for dossier supplementation) into the overall project schedule, instead of treating it as something to "do in parallel to keep up".
Time-limited permits, adjustments and extensions
A construction permit clearly states the time limit for commencing the work. If that time limit passes without commencement, the investor must request an extension; if the number of extensions is exceeded or no extension is granted, the permit ceases to be effective and the permit procedure must be carried out again. During construction, if there is a design change that alters the licensed content — scale, function, external architecture — the investor must request an adjustment of the permit.
Particular attention is needed to construction deviating from the permit content: building beyond the permitted floors or area, or changing the function compared with the permit, may all be administratively sanctioned with remedial measures, including forced dismantling of the violating construction part.
Unpermitted or deviating construction: sanctions
Constructing without a permit in a case requiring one, or constructing in deviation from the permit content, is an administrative violation in construction activity and is sanctioned under Decree No. 339/2026/ND-CP. The fine levels are prescribed by type of work and nature of the violation, and remedial measures may also be applied, such as forcing a stop to construction or forcing the dismantling of the violating work or part of the work.
For FDI businesses, the consequences do not stop at the fine: a violating work is not accepted as complete, does not qualify to be put into use, and may affect the project’s other legal procedures. The cost of "fixing mistakes" is usually many times the cost of doing it right from the start. Compliance on construction permits should therefore be treated as a risk management item, not a mere administrative procedure.
The connection with FPF appraisal and related procedures
The construction permit is only one of the "passes" for a work. For factories, warehouses and many types of production works, the procedure for appraising the fire-prevention design and the FPF acceptance inspection is mandatory and independent of the construction permit. Under the new legal framework — the Law on Fire Prevention, Fighting and Rescue 2024 (effective 01/7/2025), Decree No. 105/2025/ND-CP — a work in the category requiring FPF design appraisal must be appraised before construction and approved for FPF acceptance before being put into use.
The reasonable sequence is to implement in parallel, with coordination: the FPF design is prepared together with the construction design; the FPF appraisal and the construction permit procedure are carried out simultaneously so as not to prolong the schedule. Depending on the nature of the project, an environmental impact assessment and other sectoral procedures may also be needed — omitting one procedure can stall the entire schedule. For details, see the article on fire-prevention compliance for factories.
Checklist for investors and FLAT LAW FIRM’s accompaniment
Before implementing, the investor should answer: does the work fall in the category requiring an application or fully meet the exemption conditions; if exempt, has the project’s feasibility study report been appraised and approved in accordance with point e, clause 2, Article 43; if an application is required, is the dossier complete and consistent and with which authority is it filed; has the FPF design been appraised.
FLAT LAW FIRM supports investors and contractors in industrial real estate and construction projects: from determining whether a work requires an application or is exempt, preparing the dossier and working with the competent authority, to reviewing construction contracts for projects. If your business is preparing to implement construction or needs to assess the legal status of a current work, contact us for advice suited to your specific project.
Frequently asked questions
Is a project in an industrial park automatically exempt from a construction permit?
No. The 2025 Construction Law does not set exemption conditions based on a work’s location in an industrial park: a work is exempt from a construction permit only where it falls within one of the cases in clause 2, Article 43 (this provision takes early effect from 01/01/2026). For industrial projects, the common case is point e, clause 2, Article 43 — a construction work under a construction investment project whose Feasibility Study Report or adjusted Feasibility Study Report has been appraised by the specialised construction authority and approved in accordance with regulations. Where a work falls within none of the cases in clause 2, Article 43, a permit must still be applied for. Even where exempt, the investor must still send a notice of construction commencement together with the construction design dossier to the local state management authority for construction under clause 3, Article 43, and comply with requirements on quality, safety and FPF.
If exempt from a construction permit, is the FPF procedure still needed?
Yes. The construction permit and FPF appraisal and acceptance are two independent procedures. A work in the category requiring FPF design appraisal must still carry out this procedure in full even if exempt from a construction permit. Exemption from one does not exempt the other.
How is construction without a permit handled?
It is administratively sanctioned under Decree No. 339/2026/ND-CP, with fine levels by type of work and nature of the violation, together with remedial measures such as forcing a stop to construction or forcing the dismantling of the violating part. A violating work is also not accepted as complete for putting into use.
What must be done when a construction permit’s commencement time limit expires?
The investor must request an extension of the permit before the commencement time limit stated on the permit expires. If the number of extensions is exceeded or no extension is granted, the permit ceases to be effective and the permit procedure must be carried out again. This time limit should be tracked in the project’s schedule management.
Where should the permit dossier be filed after the 2025 administrative unit merger?
Authority is decentralised by work grade and work type; after the 2025 two-tier local government arrangement, the specific focal point in each locality may have changed. Confirm directly with the local construction management authority or the management board of the industrial park where the project is implemented before filing the dossier.
