What costs are included in preparing a commercial housing investment project in Vietnam? Under Clause 1, Article 5 of Decree 206/2026/ND-CP, total construction investment comprises 7 cost groups; project preparation costs (preparing the feasibility study report) fall within the construction investment consultancy cost group.
Important: new legal framework effective 1 July 2026
Decree 206/2026/ND-CP (effective 1 July 2026) replaced Decree 10/2021/ND-CP on construction investment cost management — Decree 10/2021 is no longer a current legal basis. In parallel, Circular 36/2026/TT-BXD (26 June 2026) replaced Circular 11/2021/TT-BXD, and was corrected by Decision 1538/QD-BXD (28 August 2026).
The 7 cost groups under Clause 1, Article 5 of Decree 206/2026
- Compensation, support and resettlement costs — compensation for land and assets, support and resettlement for organizations and individuals whose land is recovered;
- Construction costs — construction and installation of project items;
- Equipment costs — procurement and installation of construction and technological equipment;
- Project management costs — organizing project implementation management;
- Construction investment consultancy costs — including project preparation / feasibility study report costs, surveying, design, verification, supervision and other consultancy services;
- Other costs — other necessary project-related costs;
- Contingency costs — reserved for arising work volume and price escalation factors.
Where do project preparation costs sit?
Project preparation costs (preparing the feasibility study report) belong to Group 5 — construction investment consultancy costs. Consultancy cost rates are determined according to the cost norms issued by the Ministry of Construction (Circular 36/2026/TT-BXD).
Notes specific to commercial housing projects
For commercial housing projects, compensation, support and resettlement costs (Group 1) and land use levy typically account for a large share. Investors should establish the total investment at the project preparation stage to assess financial feasibility and avoid having to revise the total investment during implementation.
Frequently asked questions
Can Decree 10/2021 still be cited as a current basis?
No. Decree 206/2026/ND-CP (effective 1 July 2026) replaced Decree 10/2021; citing Decree 10/2021 as a current basis is incorrect.
Are there specific percentage norms for project preparation costs?
Construction investment consultancy cost norms are issued by the Ministry of Construction — consult Circular 36/2026/TT-BXD (as corrected by Decision 1538/QD-BXD) for the applicable items.
Which group does the land use levy fall into?
Group 1 (compensation, support, resettlement) or Group 6 (other costs), depending on the structure determined under the regulations — verify when preparing the specific total investment.
Legal sources cited
- Decree 206/2026/ND-CP (effective 1 July 2026) — Clause 1, Article 5 on the 7 cost groups in total construction investment; replacing Decree 10/2021/ND-CP;
- Circular 36/2026/TT-BXD (26 June 2026) — construction investment cost norms, replacing Circular 11/2021/TT-BXD;
- Decision 1538/QD-BXD (28 August 2026) — correcting Circular 36/2026/TT-BXD.
FLAT Law Firm advises investors on commercial housing projects: total investment structuring, investment approval procedures and project legal matters — contact our legal team.
Transparency note: This article was drafted by AI and reviewed by the AI QA Council — it is not advice from a human lawyer.
Disclaimer: The information in this article is for reference only and does not constitute legal advice. Cost norms issued by the Ministry of Construction may be updated; you should verify the current legal texts or consult a lawyer before applying them.
Legal content reviewed by the FLAW AI Legal Council and submitted to the owner for approval; not a practicing lawyer’s opinion, not a substitute for legal advice on a specific matter.
