Subscription 54 (4/2003) 31 March 2004

NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness
No. 16-2003-QH11

LAW
ON
CONSTRUCTION

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as

amended and added to by Resolution 51-2001-QH10 dated 25 December 2001 of
Legislature X of the National Assembly at its 10th Session;

This Law governs construction activities.

CHAPTER I

General Provisions
Article 1 Governing scope

This Law governs construction activities and the rights and obligations of
organizations and individuals investing in construction of works and engaging in
construction activities.

Article 2 Applicable entities

This Law shall apply to domestic organizations and individuals and to foreign
organizations and individuals investing in construction of works and engaging in
construction activities in the territory of the Socialist Republic of Vietnam.
Where an international treaty which the Socialist Republic of Vietnam has signed
or acceded to contains provisions which are different from those in this Law, the
provisions of such international treaty shall apply.

Article 3 Interpretation of terms

In this Law, the following terms shall be construed as follows:

1. Construction activities shall comprise formulation of construction master

plans, formulation of investment projects for construction of works,
construction survey, design of construction works, execution of building
works, supervision of execution of building works, management of
investment projects for construction of works, selection of contractors in
construction activities and other activities related to construction works.

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2. Construction works means a product of human labour and of building

materials and equipment installed in the works, attached to a fixed area of
land which may include sections above and under ground or water
surfaces, and which is built in accordance with a design. Construction
works shall include public construction works, residential housing,
industrial works, traffic works, irrigation systems, energy works and other
works.

3. Equipment installed in works shall comprise building equipment and

technological equipment. Building equipment means equipment which is
installed in construction works in accordance with a construction design.
Technological equipment means equipment within a technological line
which is installed in construction works in accordance with a
technological design.

4. Execution of building works shall comprise construction of the following

works and installation of equipment at such works: new works; works
being repaired, renovated, relocated, up-graded or restored; dismantling of
works; and servicing and maintenance of works.

5. System of technical infrastructure works shall comprise traffic systems,

information and communications systems, energy supply systems, public
lighting systems, water supply and water discharge systems, waste
treatment systems and other works.

6. System of social infrastructure works shall comprise buildings for health

care, culture, education, sports, commercial services, public services, trees,
parks, water surfaces and other works.

7. Red-lined boundary means boundaries which are fixed on the basis of

drawings of master plans and actual sites in order to classify the boundary
line between land on which construction works are permitted to be
constructed and land reserved for roads, technical infrastructure works and
other public spaces.

8. Construction boundary means the boundary marking the limits of

permission to build on any one block of land.

9. Construction master planning means organization of urban space, rural

residential areas and systems of technical and social infrastructure works,
and creation of a living environment appropriate for the inhabitants in all
areas of the territory, ensuring harmonious co-ordination between the
national interest and community interests and satisfying the objectives of
socio-economic development, national defence and security, and
protection of the environment. Construction master planning shall be
expressed in construction zoning plans, comprising charts, drawings,
mock-ups and commentaries.

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10. Regional construction master planning means organization of systems of

rural residential areas and technical and social infrastructure works within
the administrative boundaries of any one province or inter-provincial area
consistent with the requirements for socio-economic development from
time to time.

11. General master planning for urban construction means organization of

urban space and technical and social infrastructure works in compliance
with overall master planning for socio-economic development and master
planning for development of branches, ensuring national defence and
security of each region and of the country from time to time.

12. Detailed master planning for urban construction means detailing the
contents of general master plans for urban construction which shall
provide the legal basis for management of construction works, for the
provision of information, for the issuance of construction permits, and for
allocation and lease of land in order to commence investment projects for
construction of works.

13. Master planning of construction in rural residential areas means

organization of space and systems of technical and social infrastructure
works for rural residential areas.

14. Rural residential area means a place of concentrated residence of many

households closely associated with each other for production and living
purposes and for other social activities within the scope of a fixed area and
shall include the centres of communes, hamlets, villages, communal
hamlets, small hamlets, mountain villages, mountain hamlets and ethnic
minority villages (hereinafter collectively referred to as hamlets) formed
by natural conditions, by socio-economic conditions, by culture, habits
and customs and by other factors.

15. Urban design means the formulation of specific plans from the contents of
general and detailed master plans for urban construction on the
architecture of works within urban areas, on the landscape of each
functional area, and on street routes and other public spaces within urban
areas.

16. Investment report for construction of works means an application file for
guidelines for investment in construction of works for the competent
authority to permit investment.

17. Investment project for construction of works means a collection of

proposals relating to expenditure of capital to construct new works or to
extend or renovate existing works in order to develop, maintain or
improve the quality of the works or the quality of a product or service
within a certain period of time. Investment project for construction of

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works shall include an explanatory section and a preliminary designs

section.

18. Eco-technical report on construction of works means an abridged

investment project for the construction of works which only sets out the
basic requirements stipulated in the regulations.

19. Construction regulations means mandatory regulations applicable to

construction activities issued by the State administrative body for
construction.

20. Construction standards means regulations on technical standards, eco-

technical norms, the order for implementation of technical works,
technical criteria and indicators and natural indicators issued by the
competent body or organization or recognized as applicable to
construction activities. Construction standards shall include mandatory
regulations and regulations the application of which is encouraged.

21. Investor in construction of works means a capital owner or a person

assigned to manage and utilize capital for investment in construction of
works.

22. Contractor in construction activities means an organization with full

capability for construction activities or individual with full capability for
construction practice, entering a contractual relationship with respect to
construction activities.

23. General construction contractor means a contractor entering a contract

directly with an investor in construction of works in order to receive an
entire contract for one type of work or the whole work of the investment
project for construction of works. General construction contractor shall
include the following principal forms: general design contractor; general
contractor for execution of building works; general contractor for design
and execution of building works; general contractor for design,
procurement of technological equipment and execution of building works;
and general contractor for formulation of an investment project for
construction works, design, procurement of industrial equipment and
execution of building works.

24. Head contractor in construction activities means a contractor entering a

contract directly with the investor in construction of works in order to
receive a contract to implement the main part of one type of work of the
investment project for construction of works.

25. Sub-contractor in construction activities means a contractor entering a

contract with a head contractor or with a general construction contractor in
order to implement a part of the work of the head contractor or general
construction contractor.

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26. Separate dwelling-house means works built within the parameters of land
for which the land use right is owned by a household of individual in
accordance with law.

27. Preliminary design1 means a collection of data comprising a commentary

and drawings which express a design solution which provides basic
sufficient conditions for preparing the level of total invested capital and
shall be the basis for commencing the subsequent design steps.

28. Supervision of the author means supervision by the designer during the
process of execution of building works aimed at ensuring that execution is
correct in terms of the design.

29. Building works incident means a breakdown beyond permissible safety

limits which creates a danger of collapse of the construction works, or an
actual breakdown of part or all of the construction works, or it means that
the construction works are unable to be used as designed.

Article 4 Fundamental principles in construction activities

Organizations and individuals engaged in construction must comply with the

following fundamental principles:

1. Ensure that works are built in accordance with master plans and in
accordance with the design of the works; ensure the beauty of construction
works, protection of the environment and general landscape; ensure that
works are built in conformity with natural conditions and the particular
cultural and social conditions of each locality; and ensure that construction
works combine socio-economic development with national defence and
security;

2. Ensure compliance with construction regulations and construction

standards;

3. Ensure quality, schedule and safety of construction works; ensure the lives
and property of people; ensure fire fighting and prevention, explosion
prevention; and ensure environmental hygiene;

4. Ensure synchronous construction of each building works, and synchronous

construction of technical infrastructure works;

5. Ensure economy and efficiency, ensure that there is no waste of

expenditure or loss and that there are no other negative elements in
construction.

1 Phillips Fox Note: The literal translation is "basic design".

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Article 5 Types and levels of construction works

1. Construction works shall be classified into types and levels of works.

2. The types of construction works shall be fixed in accordance with their use
function. Each type of construction works shall be divided into five
levels, comprising special level, level I, level II, level III and level IV.

3. The level of construction works shall be fixed in accordance with the type
of construction works based on scale, technical requirements, materials
used to build the works and life span of the works.

4. The Government shall provide regulations on classification and levels of

construction works.

Article 6 Construction regulations and construction standards

1. The system of construction regulations and construction standards must be

promulgated or recognized by the State administrative body for
construction for uniform application in construction activities.

2. Construction activities must comply with construction regulations and

construction standards. If foreign construction standards are applied, the
approval of the State administrative body for construction shall be
required.

3. Organizations and individuals may research and propose construction

regulations and construction standards to the State administrative body for
construction for promulgation or recognition.

Article 7 Capability for construction practice, capability for construction

activities

1. Capability for construction practice shall be regulated with respect to

individuals participating in construction activities. Capability for
construction activities shall be regulated with respect to organizations
participating in construction activities.

2. Capability for construction practice of individuals shall be determined in

accordance with grades on the basis of professional levels which a lawful
professional training organization certifies and on the basis of experience
and professional ethics. Any individual operating independently and
participating in the design of construction master planning, construction
survey, design of works or supervision of execution of works must have
the appropriate practising certificate and shall be personally liable for his
or her work.

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3. Capability for construction activities of organizations shall be determined

in accordance with grades on the basis of the capability for construction
practice of individuals within such organization and on the basis of
experience in construction activities, financial capacity, equipment, and
management capability of the organization.

4. Foreign organizations and individuals engaged in construction activities in

the territory of the Socialist Republic of Vietnam must satisfy the
conditions stipulated in clauses 1, 2 and 3 of this article and must be
granted an operating permit by the State administrative body for
construction.

5. The Government shall provide detailed regulations on capability of

organizations for construction activities, on capability of individuals for
construction practice, and on issuance to individuals of practising
certificates appropriate for types and levels of works.

Article 8 Supervision of implementation of laws on construction

1. The National Assembly, the Standing Committee of the National

Assembly, the Ethnic Council, other committees of the National
Assembly, the body of National Assembly delegates and individual
National Assembly delegates, people's councils, standing committees of
people's councils, committees of people's councils and delegates of
people's councils at all levels shall, within the scope of their respective
duties and powers, be responsible for supervision of implementation of the
laws on construction.

2. The Vietnam Fatherland Front and its member organizations shall, within
the scope of their respective duties and powers, be responsible for
disseminating the laws on construction amongst the citizens and for
encouraging the citizens to implement and to supervise implementation of
the laws on construction.

Article 9 Policy of encouragement in construction activities

The State shall have a policy of encouraging and facilitating organizations and
individuals to research and apply progressive scientific and technological
advances in construction, to use new building materials, to economize in the use
of natural resources and to protect the environment; and of facilitating
organizations and individuals to participate in construction activities in
accordance with master plans in remote and distant regions, in regions with
specially difficult conditions, and in flood prone regions.

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Article 10 Conduct which is strictly prohibited in construction activities

The following conduct is strictly prohibited in construction activities:

1. Constructing works in areas in which construction is prohibited;

constructing works which encroach on or illegally occupy safety corridors
for traffic routes, irrigation works, dyke embankments, energy works,
cultural or historical heritage sites and on areas which are protection
corridors for other works in accordance with law; and constructing works
in areas where there is a danger of landslide and flood, except for works
the purpose of which is to overcome these dangers;

2. Construction works contrary to master plans or in violation of construction

boundaries and standard ground floor level2 of construction works;
construction works without a construction permit where the law requires
such permit, or works constructed incorrectly in terms of the provisions of
an issued construction permit;

3. A contractor engaging in construction activities which exceed its

capability for construction practice or capability for construction activities;
selection of a contractor to implement work when that contractor fails to
satisfy the conditions on capability for construction practice or on
capability for construction activities;

4. Construction works which fail to comply with construction regulations and

construction standards;

5. Breaching regulations on safety of lives and property of persons and on

environmental hygiene in construction;

6. Building an extension encroaching on or illegally occupying public space,

public areas, pathways or other expanses which are already the subject of
approved and proclaimed construction master plans;

7. Giving or receiving bribes in construction activities; making arrangements

in tendering with an ulterior motive aimed at buying or selling a tender,
aimed at collusion in a tender, or aimed at reducing a tender price below
the cost of building the works the subject of the tender;

8. Abuse of position or power to breach the laws on construction; condoning

or concealment of conduct in breach of the laws on construction;

9. Obstruction of lawful construction activities;

10. Other conduct in breach of the laws on construction.

2 Phillips Fox Note: The literal translation is "height above sea level of the ground floor".

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CHAPTER II

Construction Master Planning

SECTION 1

General Provisions

Article 11 Construction master plans

1. Construction master plans must be formulated and approved to provide the

basis for construction activities subsequent to such planning. Construction
master plans shall be formulated for five year and ten (10) year periods
and in order to provide long-term developmental direction. Construction
master plans shall be periodically considered for amendment for
conformity with the status of socio-economic development from time to
time. Amendment of construction master plans must ensure the tradition
of inheriting previously formulated and approved construction master
plans.

2. The State shall guarantee State budget funding for the work of formulation
of construction master plans and shall have a policy of raising funds from
other sources for such work. State budget funds shall be balanced within
annual plans in order to formulate regional construction master plans,
general urban construction master plans, construction master plans for
rural residential areas and detailed master plans for functional areas which
are outside investment projects for construction of concentrated works for
business purposes.

3. People's committees at all levels shall be responsible to organize the

formulation of construction master plans within the administrative
boundaries for which such people's committee has been delegated
administrative authority, to act as the basis for administration of
construction activities, of the conduct of investment projects for
construction of works, and of the actual construction of works.

4. In a case where a people's committee at any level lacks capacity to fulfil

its tasks of formulating, amending and approving construction master
plans and approving amended construction master plans, it may invite
experts and hire consultants to do so.

5. All organizations and individuals must comply with construction master

plans which have been approved by the competent State authority.

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Article 12 Classification of construction master plans

1. Construction master plans shall be classified into the following three

categories:

(a) Regional construction master plans;

(b) Urban construction master plans, including general as well as

detailed master plans for urban construction;

(c) Master plans for construction of rural residential areas.

2. The Government shall provide regulations on the order for formulation of

construction master plans, on files and ratios of all types of maps, and on
unit costs of formulation applicable to each category of construction
master planning.

Article 13 General requirements applicable to construction master plans

Construction master plans must ensure the following general requirements:

1. They must conform with master plans for overall socio-economic

development, with master plans for development of other branches and
with land use zoning; detailed construction master plans must conform
with master plans for general construction; and construction master plans
must ensure national defence and security and create the impetus for
socio-economic development.

2. They must organize and arrange territorial space on the basis of an

appropriate exploitation and use of natural resources, land and other
resources in conformity with natural conditions, historical hallmarks,
socio-economic conditions and the scientific and technological progress of
the country at each stage of development.

3. They must create a comfortable, safe and stable living environment; they
must satisfy the ever-increasing material and spiritual needs of the
citizens; they must protect the environment and cultural heritage, conserve
places of historical and cultural interest and the natural landscape, and
retain and develop the national cultural identity.

4. They must fix the basis for the work of preparing master plans, for
managing investment and for attracting investment in construction; and for
the work of administering, operating and using construction works in
urban areas and in rural residential areas.

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Article 14 Conditions applicable to organizations and individuals designing

construction master plans

1. Organizations which design construction master plans must satisfy the

following conditions:

(a) Be registered for the activity of design of construction master

plans;

(b) Have full capability for the activity of design of construction

master plans;

(c) Any individual undertaking the job of person in charge of drawings

of a construction master plan or person in charge of design of a
specialized part of such drawings must have full capability for
construction practice and must have a practising certificate
appropriate for each type of construction master planning.

2. Any individual who independently practises design of construction master

plans must satisfy the following conditions:

(a) Have full capability for practice of and a practising certificate for
design of construction master plans;

(b) Be registered for the activity of design of construction master plans.

The Government shall provide regulations on the scope of activity of

design of construction master plans by individuals who independently
practise design of construction master plans.

SECTION 2

Regional Construction Master Planning

Article 15 Tasks of regional construction master planning

1. The responsibility for formulating tasks of regional construction master

planning shall be provided for as follows:

(a) The Ministry of Construction shall formulate tasks of regional

construction master planning of key areas and inter-provincial areas
and shall submit them to the Prime Minister of the Government for
approval after obtaining the opinion of relevant ministries, branches
and provincial people's committees.

(b) People's committees of provinces and cities under central authority

(hereinafter referred to as provincial people's committees) shall
formulate tasks of construction master planning of regions within

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the administrative boundaries that they manage and shall submit

them to the people's council of the province or city under central
authority (hereinafter referred to as provincial people's council) for
decision.

2. The contents of tasks of regional construction master planning shall

comprise:

(a) Forecast of the scale of urban and rural population consistent with
the master plan for socio-economic development of the region and
the national strategy for allocation of population for five year and
ten (10) year periods and longer terms;

(b) Organization of space for basic industrial establishments,

organization of a system of technical and social infrastructure
works within the region for each period consistent with the
potential of the region and the master plan for overall socio-
economic development of the region;

(c) Organization of space for urban systems and rural residential areas
consistent with the geographical and natural conditions of each
area, ensuring national defence and security and appropriate
exploitation of natural resources over the whole of the region.

Article 16 Contents of regional construction master plans

Regional construction master plans must contain the following main items:

1. They must fix systems of urban and residential areas aimed at servicing
industry, agriculture, forestry and tourism; and must fix areas of
environmental protection, of natural resources and other functional areas.

2. They must set in place a system of technical infrastructure works and

arrange space and measures for protection of the environment.

3. They must set the developmental direction for specialized branch works.

4. They must fix reserves of land to service developmental needs; and they
must use land efficiently.

Article 17 Authority to formulate, evaluate and approve regional construction

master plans

1. The Ministry of Construction shall organize the formulation and

evaluation of regional construction master plans for key areas and for
inter-provincial areas and shall submit them to the Prime Minister of the
Government for approval after obtaining the opinion of relevant
ministries, branches and provincial people's committees.

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2. Provincial people's committees shall be responsible to approve regional

construction master plans within the administrative boundaries that they
manage, after the same level people's council has made a decision.

Article 18 Amendment of regional construction master plans

1. Regional construction master plans shall be amended in one of the

following circumstances:

(a) There is a change in the master plan for overall socio-economic

development of the region, in the master plan for development of a
branch in the region, or in the strategy for national defence and
security;

(b) There is a change in geographical, natural or socio-economic

conditions or in population numbers.

2. The authority to approve tasks of amending regional construction master

plans and to approve amended regional construction master plans shall be
provided for as follows:

(a) The Prime Minister of the Government shall approve tasks of

amending regional construction master plans and shall approve
amended regional construction master plans for key areas and for
inter-provincial areas on the proposal of the Ministry of
Construction after obtaining the opinion of relevant ministries,
branches and people's committees.

(b) Provincial people's committees shall formulate tasks of amending

and (sic) amended regional construction master plans within the
administrative boundaries that they manage and shall submit them
to the same level people's council for decision.

SECTION 3

Urban Construction Master Planning

Article 19 Tasks of general master planning for urban construction

1. The responsibility for formulating tasks of general master planning for

urban construction shall be provided for as follows:

(a) The Ministry of Construction shall formulate tasks of general

master planning for construction of new inter-provincial urban
areas, high-tech zones and special economic zones and shall submit
them to the Prime Minister of the Government for approval after

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obtaining the opinion of relevant ministries, branches and people's

committees.

(b) Provincial people's committees shall formulate tasks of general

master planning for construction of urban areas of special category
and of categories 1 and 2 and shall submit them to the same level
people's council to pass. The Ministry of Construction shall
organize evaluation and make a submission to the Prime Minister
of the Government for approval. With respect to urban areas of
category 3, provincial people's committees shall formulate tasks of
general construction master planning and shall submit them to the
same level people's council to make a decision.

(c) People's committees of districts, towns and provincial cities

(hereinafter all referred to as district people's committees) shall
formulate tasks of general construction master planning for urban
areas of categories 4 and 5 within the administrative boundaries
managed by such people's committee and shall submit the master
plans to the people's council of the district, town or provincial city
(hereinafter referred to as district people's council) to pass and to
submit in turn to the provincial people's committee to approve.

2. The contents of tasks of general master planning for urban construction

shall comprise:

(a) Fixing the nature of the urban area and the scale of urban
population, the developmental direction for urban space and for
technical and social infrastructure works for each five year and ten
year period and forecasting the developmental direction of the
urban area for a twenty (20) year period;

(b) With respect to general construction master planning for urban

improvement, in addition to the items stipulated in paragraph (a) of
clause 2 of this article, fixing sites which must be cleared, fixing
areas which must be retained for renewal, fixing areas which must
be protected and fixing other specific requirements depending on
the particular features of each urban area.

Article 20 Contents of general master plans for urban construction

1. General master plans for urban construction must fix the total surface area
of land for use in the urban area in accordance with the population scale
during each planning period; allocate functional areas in the urban area;
population density, the land use co-efficient and other eco-technical norms
for each functional area and for the urban area; arrange overall urban
technical infrastructure works, fix construction boundaries and red-lined
boundaries for the main urban traffic routes, and fix the controlling

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standard ground floor levels for each area as well as for the whole of the
urban area.

2. General master plans for urban construction must be designed in

accordance with construction regulations and construction standards and
must take full advantage of the topography, trees, water surfaces and other
natural features of the place being planned, retaining the national cultural
identity.

3. General master plans for urban improvement must propose solutions

which retain the existing buildings and landscape consistent with the tasks
which were set.

Article 21 Authority to formulate and approve general master planning for

urban construction

1. The Ministry of Construction shall organize formulation of general master

planning for urban construction of new inter-provincial urban areas, high-
tech zones and special economic zones and shall submit the plans to the
Prime Minister of the Government for approval after obtaining the opinion
of relevant ministries, branches and people's committees.

2. Provincial people's committees shall organize formulation of general

master planning for construction of urban areas of special category and of
categories 1 and 2 within their respective provinces and shall submit the
plans to the same level people's council to pass. The Ministry of
Construction shall organize evaluation and make a submission to the
Prime Minister of the Government for approval. With respect to category
3, provincial people's committees shall organize formulation of general
master planning for urban construction and shall submit the plans to the
same level people's council to make a decision.

3. District people's committees shall organize formulation of general master

planning for construction of urban areas of categories 4 and 5 and shall
submit the plans to the same level people's council to pass and to the same
level provincial people's committee to approve.

Article 22 Amendment of general master plans for urban construction

1. General master plans for urban construction shall be amended in one of

the following circumstances:

(a) There is a change in direction of socio-economic development of

the region;

(b) In order to attract investment from capital sources for urban

construction and for other objectives which do not make a great
change to the direction of urban development;

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(c) There are fluctuations in geographical and natural conditions.

2. The person authorized to approve tasks of master planning and general

master planning for urban construction shall approve tasks of amending
master planning and general master planning for urban construction after
they have been amended.

Article 23 Tasks of preparing detailed master plans for urban construction

1. District people's committees shall be responsible for formulating tasks of

detailing master plans for urban construction based on the requirements
for socio-economic development, the requirements for administering
construction, the requirements of investors in construction of works and
the opinions of citizens within the planning zone, but detailed master plans
must be consistent with the approved general master plan for urban
construction.

2. Tasks of preparing detailed master plans for urban construction shall

comprise the following matters:

(a) The required area of land to be used, the scale and scope of the
detailed master plan, urban design, and synchronous design of
technical and social infrastructure works within the area being
designed;

(b) Preparation of a list of proposed measures for up-grading works

which are required to be retained within the area the subject of
master planning for improvement;

(c) Other requirements applicable to each area being designed.

Article 24 Contents of detailed master plans for urban construction

1. Detailed master plans for urban construction must contain the following
main items:

(a) The plans must fix the site and area of land for construction of
types of works in the area for which detailed master planning for
urban construction is being prepared.

(b) The plans must fix red-lined boundaries, construction boundaries,

and standard ground floor level for technical infrastructure works in
the area for which detailed master planning for urban construction
is being prepared.

(c) The plans must contain design solutions for a system of technical
infrastructure works in the urban area, measures to ensure the

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landscape and ecological environment, and the relevant eco-

technical norms.

(d) With respect to detailed master plans for urban improvement, plans
must be proposed for up-grading existing works which are
consistent with the tasks which have been set and consistent with
the general master plan for construction in the area.

2. Detailed master plans for urban construction shall be prepared on the basis
of topographic maps and cadastral maps to a scale of 1/500 - 1/2000
depending on the master planning tasks which have been set.

Article 25 Authority to approve detailed master plans for urban construction

1. Provincial people's committees shall approve detailed master plans for

construction of urban areas of special category and of categories 1, 2 and
3.

2. District people's committees shall approve detailed master plans for

construction of urban areas of categories 4 and 5.

Article 26 Amendment of detailed master plans for urban construction

1. Detailed master plans for urban construction shall be amended in one of

the following circumstances:

(a) When the general master plan for urban construction is amended;

(b) When there is a requirement to encourage and attract investment.

2. The person authorized to approve detailed master plans for urban

construction shall approve amended detailed master plans for urban
construction.

3. When amending detailed master plans for urban construction as prescribed

in clause 1(b) of this article, opinions must be obtained from citizens
within the planning zone, and large changes may not be made to the
structure of the general master plan for construction.

Article 27 Urban design

1. The contents of urban design shall comprise:

(a) Urban design in the context of the general master plan for urban
construction must stipulate and express the architectural space for
construction works and for landscape in each street as well as in the
entire urban area, and must fix height restrictions for construction
works in each area as well as for the entire urban area.

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(b) Urban design in the context of the detailed master plan for urban
construction must stipulate and express the standard ground floor
level of road surfaces, pavements, foundations and floors of
construction works, the height of construction works, the
architecture of vertical planes, forms for roof architecture and
colours of works in each street route.

(c) Urban design must be expressed consistently with the natural

conditions of the locality, in harmony with the natural and man-
made landscape in the area being designed; and it must take full
advantage of water surfaces and trees, protect cultural sites and
historical heritage works, and retain the national cultural identity.

2. Provincial people's committees shall promulgate regulations on

management of architecture in order to administer construction in
accordance with approved urban design.

3. The Government shall provide specific regulations on urban design.

SECTION 4

Master Planning for Construction in Rural Residential Areas

Article 28 Tasks of master planning for construction in rural residential areas

1. Provincial people's committees shall formulate tasks of master planning

for construction in rural residential areas and shall submit them to the
same level people's council to pass and to submit in turn to the district
people's committee to approve.

2. The contents of tasks of master planning for construction in rural

residential areas shall comprise:

(a) Forecast scale of population increase in rural residential areas

during each period;

(b) Organization of space for production establishments, small-scale

industries and traditional craft villages in rural residential areas;

(c) Developmental direction of residential areas.

Article 29 Contents of master plans for construction in rural residential areas

1. They shall fix functional areas, a system of technical and social

infrastructure works, and the developmental direction for each residential
area, and shall provide a design of model housing in conformity with

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natural conditions and the habits and customs of each area in order to
guide the citizens on construction.

2. Detailed master plans for the construction of areas being commune centres
must fix the position and land area for the construction of working
headquarters of agencies and organizations, buildings for education, health
care, cultural activities and sports, commercial and services centres, and
other construction works.

3. With respect to rural residential areas which have existed stably for a long
period, when construction master plans are implemented, there must be a
design for improvement and embellishment of functional areas and
technical and social infrastructure works.

Article 30 Authority to formulate and approve master plans for construction

in rural residential areas

People's committees of communes shall organize the formulation of master plans

for construction in rural residential areas within the administrative boundaries
managed by the people's committee and shall submit the plans to the same level
people's council to pass and to submit in turn to the district people's committee to
approve.

Article 31 Amendment of master plans for construction in rural residential

areas

1. Master plans for construction in rural residential areas shall be amended in

one of the following circumstances:

(a) There are amendments of the strategy for local socio-economic

development;

(b) There are amendments of the regional construction master plan;

(c) There are fluctuations in geographical and natural conditions.

2. District people's committees shall approve tasks of amendment of

construction master plans and shall approve the construction master plans
after they have been amended as applicable to rural residential areas within
the administrative boundaries managed by such people's committee.

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SECTION 5

Administration of Construction Master Plans

Article 32 Proclamation of construction master plans

1. During the process of formulation of detailed construction master plans,

opinions must be obtained from the organizations and individuals
concerned in accordance with tasks of each type of construction master
planning.

2. Within a time-limit of thirty (30) working days from the date of approval
by the competent State body of a construction master plan, all level
people's committees must widely proclaim the detailed construction
master plan within the respective administrative boundaries that they
manage for the information of, and for inspection and implementation by,
organizations and individuals within the planning zone. In the case of
proclamation of regional and general construction master plans, the person
authorized to approve the plan shall make a decision on the contents of the
proclamation.

3. Based on an approved construction master plan, provincial people's

committees shall be responsible to provide directions for implementation
of the following:

(a) The positioning of construction boundary markers and standard

ground floor levels on site;

(b) Determination on site of areas on which construction is prohibited.

4. Persons responsible to proclaim construction master plans shall be

responsible before the law for failure to proclaim master plans or for late
proclamation resulting in economic loss when site clearance must be
conducted in order to invest in construction of works.

5. If approved detailed master plans are not implemented or not satisfactorily

implemented within a time-limit of three years from the date of
proclamation, the person authorized to approve such plan shall be
responsible to take measures to remedy this situation and to notify
organizations and individuals within the planning zone for their
information. If a detailed master plan is not able to be implemented, it
must be amended or revoked and re-proclaimed in accordance with the
provisions in clause 2 of this article.

Article 33 Provision of information on construction master plans

1. All level administrative bodies for construction shall be responsible to

provide information on construction master plans and certificates of

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construction master planning for investors in construction of works

wishing to build in the area managed by such administrative body.

2. Information shall be provided in the following forms:

(a) Public display of construction master plans, comprising charts,

mock-ups and drawings of the construction master plan;

(b) Explanations of the construction master plan;

(c) Provision of certificates of construction master planning.

3. Certificates of construction master planning shall contain information

about land use and provisions on the system of technical infrastructure
works, on architecture, on safety regarding fire fighting and prevention and
explosion prevention, and on protection of the environment and other
provisions in accordance with detailed construction master plans.

Article 34 Contents of administration of master planning for construction

1. Administration of master planning for construction shall comprise the

following matters:

(a) Promulgation in accordance with authority of regulations on master

planning, on architecture, and on policies to attract investment in
construction;

(b) Administration of construction of works in accordance with

construction master plans;

(c) Management of boundary markers on site;

(d) Management of synchronous construction of urban technical

infrastructure works;

(dd) Suspension of construction, imposition of administrative penalties,

and arrangement of compulsory dismantling of works which have
been illegally built or built contrary to the terms of permits or built
contrary to construction master plans.

2. Persons delegated with authority to administer construction master

planning shall be responsible before the law for the administrative work
assigned to them and must compensate for loss and damage caused to the
State or citizens by decisions made out of time or contrary to authority.

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CHAPTER III

Investment Projects for Construction of Works

Article 35 Investment projects for construction of works

1. When an investor in construction of works makes an investment, it must

formulate a project in order to consider and assess the socio-economic
effectiveness of the project, except in the cases stipulated in clauses 3 and
5 of this article. Formulation of a project must comply with the provisions
of this Law and with other relevant laws.

2. Investment projects for construction of works shall be classified in

accordance with their scale and nature and the source of invested capital.
The contents of an investment project for construction of works as
formulated shall conform with the requirements of each type of project.

3. The following construction works shall be required only to formulate an

eco-technical report:

(a) Buildings used for religious purposes;

(b) Small-scale building works and other works as stipulated by the

Government.

4. The contents of an eco-technical report on construction works as

prescribed in clause 3 of this article shall comprise the necessity for the
investment, the purpose of the construction works and their location, scale
of works and output capacity; level of works, their funding, their effect,
and the period for construction; fire fighting and prevention and explosion
prevention; drawings of design of execution, and the estimated budget for
the construction works.

5. When an investor in construction of works makes an investment in a

separate dwelling-house, it shall not be required to formulate an
investment project for the construction of those works nor an eco-technical
report, but shall be required only to prepare an application file for issuance
of a construction permit, except in the cases stipulated in clause 1(d) of
article 62 of this Law.

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Article 36 Requirements applicable to investment projects for construction of

works

1. Investment projects for construction of works must ensure the following

basic requirements:

(a) They must comply with the master plan for socio-economic
development, with the master plan for development of branches
and with the construction master plan.

(b) They must have an appropriate design plan and technology plan.

(c) There must be safety during building, operation, exploitation and

use of the works; there must be a safe system for fire fighting and
prevention and explosion prevention; and the environment must be
protected.

(d) They must guarantee the socio-economic effectiveness of the

project.

2. When an investor in construction of works invests in large-scale

construction works, prior to formulating the project, it must prepare an
investment report for construction of works for submission to the
competent authority to request permission for the investment.

The basic contents of an investment report for construction of works shall

comprise the necessity for the investment, the proposed scale of the
investment, the form of the investment; an analysis and preliminary
selection of the technology, a preliminary figure for total invested capital,
a plan for raising capital, including ability to return capital and pay debts;
and preliminary calculations of the socio-economic investment
effectiveness of the project.

3. Investment projects for construction of works which use State capital must
ensure, in addition to the requirements stipulated in clause 1 of this article,
that calculations on costs of construction comply with the fixed levels and
eco-technical norms promulgated and guided by the State administrative
body for construction. Investment projects for construction of works
which use official development aid (ODA) must ensure prompt reciprocal
capital.

Article 37 Contents of investment projects for construction of works

Investment projects for construction of works shall contain the following items:

1. An explanatory statement which shall be prepared to contain the following

basic particulars, depending on the project type: objective, location, scale,
output capacity and technology; eco-technical solutions, funding and total

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amount of invested capital; the investor and the form of project

management; the form of the investment, its duration, effectiveness, fire
fighting and prevention and explosion prevention, and an assessment of
environmental impact.

2. Preliminary designs which shall be prepared for consistency with each

investment project for construction of works, containing an explanation
and drawings showing architectural solutions, the main measurements and
structure; horizontal surfaces, sectional planes and vertical planes;
technical solutions and construction solutions; technology, building fit-out,
and the basic type of building materials to be used in construction.

Article 38 Conditions applicable to organizations and individuals formulating

investment projects for construction of works

1. Organizations and individuals organizing formulation of investment

projects for construction of works must satisfy the following conditions:

(a) Be registered for the activity of formulation of investment projects

for construction of works;

(b) Have capability for construction activities consistent with the work
of formulating investment projects for construction of works;

(c) Have an individual who satisfies the conditions on capability to

practise project formulation and who satisfies the demand of the
investment project for construction of works to undertake the job of
chief formulator of the project. Any individual participating in
project formulation must have capability for practice appropriate
for each type of investment project for construction of works.

2. Any individual who independently practises formulation of investment

projects for construction of works must satisfy the following conditions:

(a) Be registered for the activity of formulation of investment projects

for construction of works;

(b) Have the capability to practise formulation of investment projects

for construction of works.

The Government shall provide regulations on the scope of activity of

formulation of investment projects for construction of works by
individuals who practise independently.

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Article 39 Evaluation of investment projects for construction of works and

investment decisions

1. Prior to the making of an investment decision, an investment project for

construction of works must be evaluated in accordance with regulations of
the Government.

2. The Prime Minister of the Government shall make investment decisions

for important national investment projects for construction of works after
the National Assembly has passed the investment policy. The
Government shall provide regulations on authority to make investment
decisions for the remaining investment projects for construction of works.

3. Organizations and individuals evaluating investment projects for

construction of works shall be responsible before the law for the results of
their evaluation. Any person who makes an investment decision for
construction of works shall be responsible before the law for his or her
decision.

Article 40 Changes to investment projects for construction of works

1. An approved investment project for construction of works may be changed

in one of the following circumstances:

(a) In the event of natural disaster, war, or act of force majeure;

(b) Upon appearance of factors which yield higher efficiency;

(c) When the construction master plan changes.

2. The person who made the investment decision must approve any change to
an investment project for construction of works, and the project shall
subsequently be re-evaluated. The person making the decision to change
the project for construction of works shall be responsible before the law
for his or her decision.

Article 41 Rights and obligations of investors in construction of works

throughout formulation of investment projects

1. Investors in construction of works shall have the following rights

throughout formulation of investment projects:

(a) To formulate themselves the investment project when they satisfy

the conditions on capability to formulate an investment project for
construction of works;

(b) To negotiate, sign and supervise implementation of the contract;

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(c) To request the relevant organizations to provide information and

data servicing formulation of the investment project for construction
of works;

(d) To suspend implementation of or terminate a contract when a

consultant which has contracted to formulate the project breaches
that contract;

(dd) Other rights in accordance with law.

2. Investors in construction of works shall have the following obligations

throughout formulation of investment projects:

(a) To hire a consultant to formulate the project when the investor

lacks the capability to formulate the investment project for
construction of works;

(b) To fix the contents of tasks of the investment project for

construction of works;

(c) To provide information and data relating to the project to the

consultant formulating the investment project;

(d) To organize check and acceptance, evaluation and approval of the

investment project for construction of works in accordance with
authority or by submission to the authorized level for evaluation and
approval;

(dd) To perform correctly the signed contract;

(e) To archive the file of the investment project for construction of

works;

(g) To compensate for loss caused by using a consultant lacking

capability to formulate the project, caused by provision of incorrect
information, arising from an evaluation or check and acceptance
which was incorrect in terms of the regulations, or arising from any
other breach which was the fault of the investor;

(h) Other obligations in accordance with law.

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Article 42 Rights and obligations of consultants contracted to formulate

investment projects for construction of works

1. Consultants which are contracted to formulate investment projects for

construction of works shall have the following rights:

(a) To request the investor to provide information and data relevant to

formulation of the investment project for construction of works;

(b) To refuse to implement any unlawful requests from the investor;

(c) Other rights in accordance with law.

2. Consultants which are contracted to formulate investment projects for

construction of works shall have the following obligations:

(a) Only to accept work to formulate an investment project for

construction of works which is appropriate in terms of the capability
for construction activities of the consultant;

(b) To perform correctly the signed contract;

(c) To be liable for the quality of the investment project for

construction of works which the consultant formulates;

(d) Not to disclose information and data which was relevant to the
formulation of the investment project for construction of works
implemented by the consultant without the consent of the other
contracting party or of an authorized person;

(dd) To compensate for loss caused by inappropriate use of information,

data, construction regulations and standards or technical solutions,
or arising from any other breach which was the fault of the
consultant;

(e) Other obligations in accordance with law.

Article 43 Control of costs of investment projects for construction of works

1. The costs of investment projects for construction of works must be

calculated and managed in order to ensure the effectiveness of projects.

2. Control of costs of an investment project for construction of works funded

by the State must be based on eco-technical norms and other relevant
regulations promulgated by the competent State body.

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3. With respect to investment projects for construction of works funded by

other sources, investors and contractors may refer to the regulations
prescribed in clause 2 of this article in order to sign contracts.

Article 44 Rights and obligations of persons making investment decision for

construction of works

1. A person making an investment decision for construction of works shall

have the following rights:

(a) Not to approve an investment project for construction of works

which fails to satisfy its objectives and effectiveness;

(b) To suspend implementation of an approved investment project for

construction of works or of a project which is preparing for
implementation when he or she considers it necessary;

(c) To change or amend the objectives and contents of an investment

project for construction of works;

(d) Other rights in accordance with law.

2. A person making an investment decision for construction of works shall

have the following obligations:

(a) To organize evaluation and approval of the investment project for

construction of works;

(b) To inspect implementation of the investment project for

construction of works;

(c) To be responsible before the law for the contents of his or her
decision approving an investment project for construction of works,
of his or her decision suspending implementation of a project, and
of other decisions within his or her authority;

(d) Other obligations in accordance with law.

Article 45 Contents and forms of management of investment projects for

construction of works

1. Management of investment projects for construction of works shall

include management of quality and quantity, of schedule, of occupational
safety, and of construction environment.

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2. Depending on the capacity of an organization or individual, the person

making the investment decision and the investor in construction of works
shall select one of the following forms of management:

(a) The investor in construction of works shall hire a consultancy

organization to manage the project;

(b) The investor in construction of works shall directly manage the

project.

3. When an investor which applies the form of direct management of the

project prescribed in clause 2(b) of this article establishes a project
management board, such board shall be responsible before the law and
before the investor within the scope of the duties and powers assigned to
it.

4. The Government shall provide specific regulations on forms of

management of investment projects for construction of works and on
conditions applicable to capability of organizations and individuals to
manage such projects.

CHAPTER IV

Construction Survey and Design

SECTION 1

Construction Survey

Article 46 Construction survey

1. Construction survey shall comprise survey of topography, survey of

geology of works and hydro-geological survey, survey of current status of
works, and other surveying work which services construction activities.

2. Construction survey may only be carried out pursuant to approved

surveying tasks.

Article 47 Requirements applicable to construction survey

Construction survey must ensure the following requirements:

1. Surveying tasks must be appropriate for the requirements of each type of

work and of each design step.

2. It must be truthful, objective, and correctly reflect the realities.

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3. Quantities, contents and technical requirements applicable to construction

survey must be appropriate for surveying tasks and comply with
construction regulations and standards.

4. Surveys of the geology of works shall, in addition to the items stipulated

in clauses 1, 2 and 3 of this article, fix erosion levels and levels of
oscillation in ground water during different seasons in order to propose
appropriate control measures. Survey of large-scale and important works
shall include survey and observation of environmental impact of the works
during the process of construction and use.

5. Survey results must be assessed and be subject to check and acceptance in

accordance with law.

Article 48 Contents of reports on results of construction survey

1. A report on the results of a construction survey shall include the following

basic items:

(a) The bases and procedures for and the methods of the survey;

(b) An analysis of data and an assessment of the survey and results of

the survey;

(c) Conclusion on the results of the survey and recommendations.

2. The Ministry of Construction shall provide specific regulations on

contents of reports on survey results.

Article 49 Conditions applicable to organizations undertaking construction

survey

1. Organizations undertaking construction survey must satisfy the following

conditions:

(a) Be registered for the activity of construction survey;

(b) Have full capability for construction survey;

(c) Any surveying task must have a person in charge of construction

survey who has full capability to practise construction survey and
who has the appropriate practising certificate. The construction
survey contractor shall appoint the person in charge of construction
survey. Individuals participating in each construction surveying
work must have expertise appropriate for the work assigned to
them;

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(d) Machinery and equipment servicing construction survey must

satisfy the requirements on quality, must ensure the safety of
surveying work and must ensure protection of the environment.

2. Laboratories servicing construction survey must satisfy the stipulated

standards and must be recognized by the State administrative body for
construction.

Article 50 Rights and obligations of investors in construction of works during

construction survey

1. Investors in construction of works shall have the following rights during

construction survey:

(a) To carry out themselves the construction survey when they satisfy
the conditions on capability for construction survey;

(b) To negotiate, sign and supervise implementation of a contract;

(c) To change surveying tasks upon reasonable request from the

designer;

(d) To suspend implementation of or terminate a contract in

accordance with law;

(dd) Other rights in accordance with law.

2. Investors in construction of works shall have the following obligations

during construction survey:

(a) To approve the surveying tasks set by the designer or survey

contractor and to assign such tasks to the construction survey
contractor;

(b) To select a construction survey contractor where the investor lacks

capability to carry out itself the construction survey;

(c) To provide information and data relating to surveying work to the

construction survey contractor;

(d) To fix the scope of the survey and to guarantee the conditions
necessary for the construction survey contractor to perform the
contract;

(dd) To perform correctly the signed contract;

(e) To organize check and acceptance and to archive the survey results;

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(g) To compensate for loss caused by provision of incorrect information

or data, arising from incorrectly setting the surveying tasks, or
arising from any other breach which was the fault of the investor;

(h) Other obligations in accordance with law.

Article 51 Rights and obligations of construction survey contractors

1. Construction survey contractors shall have the following rights:

(a) To request the investor to provide information and data relevant to

surveying tasks;

(b) To refuse to implement any requests outside the surveying tasks;

(c) Other rights in accordance with law.

2. Construction survey contractors shall have the following obligations:

(a) Only to sign a contract to perform surveying work appropriate in

terms of their capability for activities and to perform correctly the
signed contract;

(b) To perform correctly the surveying tasks which are assigned to

them, ensuring quality and with liability for the survey results;

(c) To propose further surveying tasks when they detect factors directly
affecting design solutions;

(d) To protect the environment within the area being surveyed;

(dd) To purchase professional indemnity insurance;

(e) To compensate for loss arising from failure to perform correctly the
surveying tasks, from discovery of an [additional]3 volume of work
due to the survey being incorrect in terms of actualities or caused by
use of inappropriate information, data, construction regulations and
standards, or arising from any other breach which was the fault of
the contractor;

(g) Other obligations in accordance with law.

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SECTION 2

Design for Construction of Works

Article 52 Requirements applicable to design for construction of works

1. A design for construction of works must satisfy the following general

requirements:

(a) It must conform with the construction master plan, the landscape,
natural conditions and the regulations on architecture; and it must
conform with the approved investment project for construction of
works.

(b) It must conform with the technological design where an investment

project has a technological design.

(c) The foundations of the works must be strong and must not sink,
crack or be deformed outside the permissible limits, thereby
affecting the life span of the works and of adjacent works.

(d) The contents of the design for construction of works must comply
with the requirements for each design step, must satisfy the
requirements on use function, must ensure a beautiful design and a
reasonable prime cost.

(dd) It must be safe and economical; it must comply with the applicable
construction regulations and construction standards, the standards
on fire fighting and prevention and explosion prevention, and the
standards on protection of the environment and other relevant
standards. The design of public works must comply with standards
on design to assist disabled persons.

(e) It must ensure synchronous construction of each building works

and satisfy the requirements for operation and use of the works; it
must integrate with related works.

2. Civil works and industrial works must, in addition to ensuring the items
stipulated in clause 1 of this article, also satisfy the following
requirements:

(a) Architecture must be in conformity with the habits and customs and
cultural and social conditions of each area and each locality;

(b) Safety of persons if there is an incident; safe, favourable and

effective conditions for fire prevention and rescue operations;
distance between buildings; use of fire-proof materials and

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facilities in order to minimize loss to adjacent buildings and the

surrounding environment in the event that a fire occurs;

(c) Favourable, hygienic and healthy conditions for users of the works;

(d) Maximum use of favourable natural conditions and minimization of

unfavourable natural conditions in order to save energy.

Article 53 Contents of design for construction of works

The contents of a design for construction of works shall comprise the following
basic items:

1. Technology plan;

2. Use function;

3. Architectural plan;

4. Life span of works;

5. Structural and technical plan;

6. Plan for fire fighting and prevention and for explosion prevention;

7. Plan for use of energy to achieve high productivity;

8. Solutions on protection of the environment;

9. Total estimated budget and estimated costs of construction in conformity

with each step of design of construction.

Article 54 Steps in design for construction of works

1. Design for construction of works shall comprise these steps: preliminary

designs; technical designs; and design drawings for execution of building
works.

2. Depending on the nature and scale of the particular construction works, the
design may be formulated in one, two or three steps as follows:

(a) One step design, namely formulation of the design drawings for
execution of building works, applicable to those works for which
only an eco-technical report is required to be prepared;

(b) Two step design, namely formulation of preliminary designs and

formulation of design drawings for execution of building works,

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applicable to those works for which an investment project for

construction of works must be prepared;

(c) Three step design, namely formulation of preliminary designs,

formulation of technical designs, and formulation of design
drawings for execution of building works, applicable to those works
for which an investment project for construction of works must be
prepared and the works are large-scale and complex.

3. Where two or three step design must be implemented, the earlier design
step must be approved prior to the subsequent step being undertaken.

The Government shall provide detailed regulations on design steps

applicable to each type of construction works and on the contents of each
design step.

Article 55 Competitions to select architectural designs for construction works

1. It is encouraged to hold a competition to select an architectural design for

construction works.

2. A competition must be held to select an architectural design for the

following works prior to the investment project for construction of works
being formulated:

(a) Headquarters of State bodies from district level upwards;

(b) Large-scale buildings for cultural activities and sports and other
large-scale public works;

(c) Other works of special architecture.

3. The costs of a competition shall be included in the total invested capital of

the construction works.

4. The copyright of an author the architectural design plan of which is

selected shall be guaranteed, and such author shall be given priority to
conduct the subsequent design steps if the author satisfies the conditions
on capability for design for construction of works.

5. The Government shall provide detailed regulations on competitions to

select architectural designs for construction works.

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Article 56 Conditions applicable to organizations and individuals undertaking

design of construction works

1. Organizations which undertake design for construction of works must

satisfy the following conditions:

(a) Be registered for the activity of design for construction of works;

(b) Have full capability for the activity of design for construction of
works;

(c) Any individual undertaking the job of person in charge of design or

head designer must have full capability for construction design
practice and must have a practising certificate appropriate for each
type and level of works.

2. Any individual who independently practises design for construction of

works must satisfy the following conditions:

(a) Have full capability for construction design practice and a practising
certificate for design for construction of works;

(b) Be registered for the activity of design for construction of works.

The Government shall provide regulations on the scope of activity of

design for construction of works by individuals who independently
practise design for construction of works.

3. With respect to construction design of separate dwelling-houses:

(a) Where a separate dwelling-house has a total floor construction area

of more than two hundred and fifty (250) square metres, the house
has three or more storeys, or the house is situated on a cultural or
historical heritage site, the design must be undertaken by a design
organization which satisfies the conditions on capability for
construction design activities or by an individual designer who
satisfies the conditions on capability for construction design
practice.

(b) Where a separate dwelling-house is on a smaller scale than that

stipulated in paragraph (a) above, an individual or household may
itself do the design but the design must conform with the approved
construction master plan and such individual or household shall be
responsible before the law for the quality of the design and the
effect of the works on the environment and for the safety of adjacent
works.

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Article 57 Rights and obligations of investors in construction of works during

design for construction of works

1. Investors in construction of works shall have the following rights during

design for construction of works:

(a) To carry out themselves the design for construction of works when
they satisfy the conditions on capability for construction design
activities and on practising capability appropriate for each type and
level of works;

(b) To negotiate, sign and supervise implementation of a contract for

design;

(c) To require the design contractor to perform correctly the signed

contract;

(d) To request changes and additions to design;

(dd) To suspend implementation of or terminate a contract for design for

construction of works in accordance with law;

(e) Other rights in accordance with law.

2. Investors in construction of works shall have the following obligations

during design for construction of works:

(a) To select a design contractor where the investor does not satisfy the
conditions on capability for construction design activities or on
practising capability to carry out itself the design of the works;

(b) To fix the tasks of design of the construction works;

(c) To provide complete information and data to the design contractor;

(d) To perform correctly the signed contract;

(dd) To evaluate and approve the designs or submit them to the

authorized body for evaluation and approval in accordance with the
provisions of this Law;

(e) To organize check and acceptance of the design file;

(g) To archive the design file;

(h) To compensate for loss caused by setting design tasks, or providing

information or data, or accepting a design file contrary to the

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regulations; or for loss arising from any other breach which was the
fault of the investor;

(i) Other obligations in accordance with law.

Article 58 Rights and obligations of contractors for design for construction of

works

1. Contractors for the design for construction of works shall have the
following rights:

(a) To refuse to implement any requests outside design tasks;

(b) To request provision of information and data relevant to design

work;

(c) To have copyright in their design of works;

(d) Other rights in accordance with law.

2. Contractors for the design for construction of works shall have the
following obligations:

(a) Only to accept a contract to perform the design for construction of

works appropriate in terms of their capability for construction
design activities or their practising capability for design for
construction of works;

(b) To perform correctly design tasks, to meet the schedule and to

ensure quality of the design;

(c) To be liable for the quality of the design work that they undertake
to do;

(d) To supervise the author during the process of execution of building

works;

(dd) To formulate surveying tasks to service the design work

appropriate for the requirements of each design step;

(e) Not to appoint a manufacturer of building materials and supplies or

of construction equipment for the works;

(g) To purchase professional indemnity insurance;

(h) To compensate for loss when setting inappropriate surveying tasks;

or when using inappropriate information, data, construction
regulations and standards, technical solutions or technology which

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affect the quality of the works; or for loss arising from any other
breach which was the fault of the contractor;

(i) Other obligations in accordance with law.

Article 59 Evaluation and approval of designs for construction of works

1. The State administrative body for construction shall organize evaluation of

the preliminary designs when it approves an investment project for
construction of works.

2. An investor shall organize evaluation and approval of the subsequent

design steps which must not be inconsistent with the approved preliminary
designs.

3. The person evaluating or approving a design shall be responsible before

the law for the results of evaluation or approval.

4. The Government shall provide regulations on evaluation, contents of

evaluation, and approval of designs of construction works.

Article 60 Changes to designs for construction of works

1. An approved design for construction of works may only be changed when

the investment project for construction of works is amended and such
amendment requires a change in design, or in other necessary
circumstances.

2. Any person authorized to make a decision on change to a design shall be

responsible before the law for such decision.

3. The Government shall provide detailed regulations on changes to designs

of construction works.

Article 61 Archiving files on design for construction of works

1. Files on design for construction of works must be archived for the duration
of the life span of the construction works.

2. With respect to construction works which are significant in terms of

history, politics, economics, culture, scientific and technical matters and
national defence and security, the file on design of the works must be
retained in the national archives in perpetuity.

3. The Government shall provide detailed regulations on archiving files on

design for construction of works.

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CHAPTER V

Construction of Works
SECTION 1

Construction Permits

Article 62 Construction permits

1. Prior to commencing construction work, an investor must have a

construction permit, except in the case of the following works:

(a) Works in the category of State secrets, works to be constructed

pursuant to an emergency order, and temporary works to service
construction of main works;

(b) Construction works built along a route which does not pass through
an urban area and which comply with the construction master plan,
where the competent State body has already approved the
investment project for construction of the works;

(c) Small-scale technical infrastructure works in remote and distant

communes;

(d) Separate dwelling-houses in remote and distant regions which are

not in urban areas or concentrated residential areas, or which are in
rural residential areas for which there is no approved construction
master plan;

(dd) Works, being repairs or improvements; interior installation of

equipment which does not change the architecture, weight-bearing
structure or safety of the works.

2. With respect to separate dwelling-houses in rural areas, regulations on

construction permits must be consistent with the actual situation in the
locality. District people's committees shall provide detailed regulations on
concentrated residential areas within their respective localities for which
construction permits must be issued.

3. With respect to the construction of works and separate dwelling-houses in

areas for which construction master plans have been approved and
proclaimed but as yet not implemented, only provisional construction
permits shall be issued with a term equal to the duration for
implementation of the master plan.

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Article 63 Application file for construction permit

1. Depending on the nature and scale of works, an application file for a

construction permit shall include the following basic documents:

(a) Application for issuance of a construction permit;

(b) Design drawings for construction of the works;

(c) Documents on land use right in accordance with the laws on land.

2. With respect to the construction of works and separate dwelling-houses

stipulated in article 62.3 of this Law, in addition to the items stipulated in
clause 1 of this article, the owner of the works must include in the
application file a written undertaking to dismantle the works when the
State implements the master plan.

Article 64 Contents of construction permits

1. A construction permit shall include the following basic items:

(a) Location and position of the construction works, route of the

construction works;

(b) Type and level of works;

(c) Standard ground floor level of the works;

(d) Red-lined boundaries and construction boundaries;

(dd) Protection of the environment and safety of the works;

(e) With respect to civil works and industrial works in urban areas, in
addition to the items stipulated in clauses 1(a) to (dd) inclusive of
this article, the construction permit shall include the area of the
construction works, the height of each floor, the maximum height
of the whole works, and the colour of the works;

(g) Other items stipulated as applicable to each type of works;

(h) Effectiveness of the construction permit.

2. The Government shall provide detailed regulations on issuance of

construction permits.

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Article 65 Conditions for issuance of construction permits in urban areas

The issuance of construction permits in urban areas must satisfy the following
conditions:

1. Consistency with the approved detailed construction master plan;

2. Compliance with regulations on red-lined boundaries and construction

boundaries; on urban design; on safety requirements for surrounding
works; on protection of safety corridors for traffic works, irrigation works,
dyke embankments, energy works, cultural or historical heritage sites and
on areas which are protection corridors for other works in accordance with
law;

3. Construction works and separate dwelling-houses in areas for preservation

of cultural or historical heritage sites must ensure construction density and
that there is land for planting trees and places for parking vehicles, and
must not adversely affect the landscape and environment;

4. Works being repairs or improvements must not have an adverse effect on

the structure of neighbouring works and must preserve a distance from
surrounding works; they must not adversely affect water supply and water
discharge systems, ventilation and lighting systems, environmental
hygiene, and fire fighting and prevention and explosion prevention;

5. There must be the stipulated distance from hygiene works, from containers
of toxic chemicals, and from other works which are able to cause
environmental pollution; and there must be no adverse effect on users of
immediately adjoining works;

6. When roads are built or up-graded, an underground tunnel system must be

built for synchronous installation of technical infrastructure works; and
standard ground floor levels on the road surface must comply with
standard ground floor levels in the construction master plan and urban
design;

7. Construction works of high-rise residential housing of special category

and category 1 must have design of an underground level, except in cases
where there are particular requirements on design of underground levels;

8. With respect to provisional construction works, the issuance of

construction permits must comply with articles 62.3 and 63.2 of this Law.

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Article 66 Authority to issue construction permits

1. Provincial people's committees shall issue construction permits for large-

scale works, for works of special architecture, for religious works and for
other construction works within the respective administrative boundaries
that they manage in accordance with regulations of the Government.

2. District people's committees shall issue construction permits for works in

urban areas and for commune centres within the respective administrative
boundaries that they manage, except for the works stipulated in clause 1 of
this article.

3. People's committees of communes shall issue construction permits for

separate dwelling-houses in rural residential areas which have approved
construction master plans and in residential areas which require the
issuance of construction permits pursuant to regulations of the district
people's committee, within the respective administrative boundaries that
they manage.

Article 67 Responsibilities of construction permit-issuing bodies

1. To display publicly the regulations on issuance of construction permits

and to provide guidance on them.

2. To issue construction permits within a time-limit not to exceed twenty (20)

working days, or fifteen (15) days in the case of separate dwelling-houses,
from the date of receipt of a complete and valid application file.

3. To inspect that construction is carried out in accordance with the terms of

the construction permit and to suspend construction and withdraw the
construction permit when the investor carries out construction in breach.

4. Persons authorized to issue construction permits shall be responsible

before the law for issuance of incorrect permits or for issuance of permits
out of time, and must compensate for loss and damage caused in
accordance with law.

5. Construction permit-issuing bodies shall notify the competent authorities

not to supply power, water, business and other services to works
constructed inconsistently with the master plan, constructed without a
construction permit or constructed contrary to the terms of the issued
construction permit.

6. Construction permit-issuing bodies shall resolve complaints and

denunciations regarding issuance of construction permits.

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Article 68 Rights and obligations of applicants for issuance of construction

permits

1. Applicants for construction permits shall have the following rights:

(a) To require the construction permit-issuing body to explain, guide

and implement correctly the regulations on issuance of construction
permits;

(b) To lodge complaints and denunciations regarding a breach of law

during issuance of construction permits;

(c) To commence construction of works if, upon expiry of the time-

limit stipulated in article 67.2 of this Law, the construction permit-
issuing body fails to provide its written opinion when the
conditions stipulated in clauses 1, 3, 4, 5, 6 and 7 of article 72 of
this Law have been satisfied.

2. Applicants for construction permits shall have the following obligations:

(a) To submit complete application files and the fee for issuance of the
construction permit;

(b) To be liable for the truthfulness of their application file for issuance
of a construction permit;

(c) To provide written notification of the date of commencement of

construction of works to the people's committee of the commune
where the works are located, within a time-limit of seven working
days prior to such commencement date;

(d) To implement correctly the terms of the construction permit; any

amendment of or change to design must be approved by the
construction permit-issuing body.

SECTION 2

Site Clearance for Construction of Works

Article 69 Requirements applicable to site clearance for construction of works

Site clearance for construction of works must satisfy the following requirements:

1. A plan for site clearance for construction of works must be prepared, such
plan must be included in the investment project for construction of works,
and the plan shall be approved at the same time as approval of the
investment project.

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2. In the case of projects which require residential resettlement, a plan or

project for resettlement must be prepared and it must be implemented prior
to site clearance for construction.

3. The scope of site clearance for construction of works must be consistent

with the approved detailed construction master plan and the approved
investment project for construction of works.

4. The time-limit for site clearance for construction of works must satisfy the
requirements on the schedule for implementing the project as approved or
must satisfy the provisions in a decision of the authorized person.

Article 70 Principles of compensation4 in order to conduct site clearance for

construction of works

1. The payment of compensation in order to conduct site clearance for

construction of works must ensure the interests of the State as well as the
lawful rights and interests of organizations and individuals concerned. The
issue of residential housing for organizations and individuals must be
resolved by new stable housing, with residential conditions which are
equal to or better than the former housing, and there must be assistance to
create jobs and a stable life for persons who have to resettle, unless there is
some other agreement between the parties concerned.

2. The payment of compensation in order to conduct site clearance for

construction of works shall be implemented by one or a combination of
the forms of payment of money, land use right or residential housing
ownership, and must ensure equality and be conducted publicly,
transparently and correctly in accordance with law.

3. In the case of payment of compensation in order to conduct site clearance

for construction of technical infrastructure works in urban areas, the plan
for site clearance must ensure the construction of new works as well as
renewal of street-frontage works in accordance with the approved detailed
construction master plan; and must ensure that the State is able to
accommodate the land price difference after site clearance and investment
in construction of works.

4. Compensation shall not be paid in the following cases:

(a) Land which was encroached on or illegally occupied;

(b) Works which were built illegally; architectural objects, trees,

vegetation, crops and other assets which appeared or were
generated on the surface of an area being the subject of a

4 Phillips Fox Note: The literal translation is "property compensation".

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construction master plan after the date of proclamation of the

construction master plan;

(c) In other cases as stipulated by the laws on land.

Article 71 Organization of site clearance for construction of works

1. When organizing site clearance for construction of works, a council for

compensation for clearance of a construction site must be established.

2. In the case of site clearance pursuant to an approved construction master

plan but where there is as yet no investment project for construction of
works, payment of compensation shall be conducted as follows:

(a) The people's committee at the authorized level shall establish a

council for compensation for clearance of a construction site and
preside over site clearance via such council, or shall assign the task
to an enterprise which specializes in site clearance.

(b) Funding for site clearance shall be taken from the budget or shall be
raised, and shall be recovered upon assignment or lease of land to
the investor in construction of the works on the cleared site.

(c) The time-limit for site clearance for construction of works shall be
implemented in accordance with the requirements for socio-
economic development in the locality and the decision of the
authorized person.

3. In the case of site clearance pursuant to an investment project for

construction of works, payment of compensation shall be conducted as
follows:

(a) In the case of an investment project for business purposes, a council

for compensation for clearance of a construction site headed by the
investor in construction of the works shall co-ordinate with the
people's committee at the authorized level to organize site clearance;
in the case of an investment project not for business purposes but in
order to service the community, a council for compensation for
clearance of a construction site headed by the people's committee at
the authorized level shall co-ordinate with the investor in
construction of the works to organize site clearance.

(b) Funding for site clearance shall be taken directly from the
investment project for construction of works.

(c) The time-limit for clearance of a construction site for construction

of works must satisfy the requirements of the schedule for
implementing the project as approved.

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4. The Government shall provide regulations on principles, methods and a

price frame for compensation when conducting clearance of construction
sites, which regulations shall provide the basis for provincial people's
committees to fix compensation prices within their respective localities.

5. With respect to any organization or individual with property on a

construction site for which compensation has been resolved correctly in
accordance with the regulations but such organization or individual has
failed to implement such resolution, coercive measures shall be taken to
enforce implementation and such organization or individual shall be liable
to pay all costs of enforcement.

6. Any person who deliberately breaches the regulations on compensation in

order to conduct site clearance for construction of works with an ulterior
motive or who causes loss and damage to assets of the State or of an
organization or an individual shall, depending on the seriousness of the
breach, be disciplined or subject to criminal prosecution and must pay
compensation for damage in accordance with law.

SECTION 3

Execution of Building Works

Article 72 Conditions for commencement of construction

Construction of works may only commence after the following conditions have
been satisfied:

1. There is a surface area for construction ready to be handed over, either the
total surface area or a partial area depending on the construction schedule
as agreed between the investor in construction of works and the contractor
for execution of the works.

2. There is a construction permit, if the project falls within the category

which must have one, except where clause 1(c) of article 68 of this Law
applies.

3. There are approved design drawings for execution of building works

applicable to items of works or to the construction works.

4. There is a construction contract.

5. There are sufficient capital funds to ensure the building schedule in

accordance with the approved building schedule in the investment project
for construction of works.

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6. There are measures to ensure safety and environmental hygiene during the
construction process.

7. With respect to new urban areas, depending on the nature and scale, the
whole or each part of technical infrastructure works must be completed
prior to commencement of construction of works.

Article 73 Conditions for execution of building works

1. Contractors engaged in the activity of execution of building works must

satisfy the following conditions:

(a) Be registered for the activity of execution of building works;

(b) Have full capability for the activity of execution of the relevant
type and level of building works;

(c) The head of the construction site must have full capability for
construction practice in execution of the relevant building works;

(d) Have equipment for execution of building works which guarantees

safety and quality of the works.

2. Any individual who undertakes self-organization of construction of a

separate dwelling-house with a total floor construction area of less than
two hundred and fifty (250) square metres or where the house has less than
three storeys must have capability for construction practice in execution of
building works, and shall be liable for quality, safety and environmental
hygiene.

Article 74 Requirements applicable to construction sites

All construction sites must display a notice board on site containing the following
items:

1. Name of investor in construction of works, total invested capital, date of

commencement of works and date for completion of works;

2. Unit for execution of building works, name of head of construction site;

3. Unit for design, name of person in charge of design;

4. Name of organization or individual supervising execution of building

works;

5. In addition to names and positions, there must also be contact addresses

and telephone numbers of the investor in construction of works, the head

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of the construction site, the person in charge of design, and the

organization or individual supervising execution of building works.

Article 75 Rights and obligations of investors in construction of works

throughout execution of building works

1. Investors in construction of works shall have the following rights

throughout execution of building works:

(a) To carry out themselves the execution of building works when they
satisfy the conditions on capability to execute the relevant building
works;

(b) To negotiate, sign and supervise implementation of the contract;

(c) To suspend implementation of or terminate in accordance with law

a contract with the contractor for execution of the works;

(d) To stop building works and to require that consequences be

remedied when the contractor for execution of the works breaches
the regulations on quality of the works or on safety and
environmental hygiene;

(dd) To request the relevant organizations and individuals to co-ordinate

to carry out work throughout the process of execution of building
works;

(e) Not to make payment of the price of a volume of works which fails
to meet quality or for an unreasonable volume of works arising;

(g) Other rights in accordance with law.

2. Investors in construction of works shall have the following obligations

throughout execution of building works:

(a) To select a contractor for execution of works with full capability for
the activity of execution of the relevant building works;

(b) To preside over co-ordination of, or to participate with the people's

committee at the authorized level in, clearance of the construction
site in order to hand it over to the contractor for execution of
works;

(c) To organize supervision of execution of building works;

(d) To inspect measures for safety and environmental hygiene;

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(dd) To organize check and acceptance, payments, and finalization of

construction of the works;

(e) To hire a consultancy organization with full capability for

construction activities to evaluate quality of works, when
necessary;

(g) To consider and make a decision on design-related proposals raised

by the contractor throughout execution of the building works;

(h) To respect the copyright of the author in the design of the works;

(i) To purchase insurance for the works;

(k) To archive the file on the works;

(l) To compensate for breach of contract which causes loss to the

contractor for execution of the works, for check and acceptance
which fails to ensure quality, thereby resulting in incorrect results
of check and acceptance, or for loss arising from any other breach
which was the fault of the investor;

(m) To be liable for their decisions; to be responsible for ensuring the

works are constructed on schedule, and for the quality and
effectiveness of the works;

(n) Other obligations in accordance with law.

Article 76 Rights and obligations of contractors for execution of building

works

1. Contractors for execution of building works shall have the following

rights:

(a) To refuse to implement any unlawful requests;

(b) To make proposals on changes to design for consistency with the

realities in order to ensure the quality and effectiveness of the
works;

(c) To request payment for the value of volumes of works completed in

accordance with the contract;

(d) To stop the execution of building works if the party which awarded
the contract fails to implement undertakings in the signed contract,
thereby causing obstruction and loss to the contractor;

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(dd) To demand compensation for loss caused by the party contracting

out the building works;

(e) Other rights in accordance with law.

2. Contractors for execution of building works shall have the following

obligations:

(a) To perform correctly signed contracts;

(b) To carry out building works correctly in accordance with the design
and construction standards and in accordance with the building
schedule; to ensure quality, safety and environmental hygiene;

(c) To keep a diary of execution of building works;

(d) To verify building materials and products;

(dd) To manage builders on site, ensuring security and order and that
there is no adverse effect on surrounding residential areas;

(e) To formulate drawings of the completed works and to participate in

check and acceptance of the works;

(g) To provide a warranty for the works;

(h) To purchase all types of insurance in accordance with the laws on

insurance;

(i) To compensate for loss caused by breach of contract, use of

incorrect materials, carrying out building work which fails to
ensure quality or which causes pollution to the environment, or for
loss arising from any other breach which was the fault of the
contractor;

(k) To be liable for the quality of the building works that the contractor
undertakes to do;

(l) Other obligations in accordance with law.

Article 77 Rights and obligations of design contractors during execution of

building works

1. Design contractors shall have the following rights during execution of

building works:

(a) The rights prescribed in article 58.1 of this Law;

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(b) To require the investor in construction of works and the contractor

for execution of building works to implement correctly the design;

(c) To refuse any unreasonable requests from the investor to change

the design;

(d) To refuse check and acceptance of any items of works constructed

incorrectly in terms of the design.

2. Design contractors shall have the following obligations during execution

of building works:

(a) The obligations prescribed in article 58.2 of this Law;

(b) To have an individual with full capability to supervise the author in

accordance with regulations; where the person appointed by the
design contractor to supervise the author must be responsible
before the law for any breaches committed during such supervision
and must be responsible to pay compensation for loss and damage
due to his or her fault;

(c) To participate in check and acceptance of the works upon request

by the investor in construction of works;

(d) To consider and deal with any proposals from the investor
regarding unreasonable items in the design;

(dd) To detect and notify in a timely manner the investor in construction

of works of any building work performed by the contractor for
execution of building works which is incorrect in terms of the
approved design, and to make recommendations for dealing with
same.

Article 78 Safety during execution of building works

During the process of execution of building works, contractors for execution of

building works shall have the following responsibilities:

1. To take measures to ensure the safety of people and the safety of

machinery, equipment, property, the works being constructed, and
underground and adjacent works; machinery and equipment servicing
construction must be checked for its safety prior to use;

2. To take separate technical measures to ensure safety of items of works and

of construction works which have strict safety requirements;

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3. To take necessary measures to limit loss and damage to persons and

property when there is any loss of safety during the process of execution
of building works.

Article 79 Ensuring environmental hygiene during execution of building works

During the process of execution of building works, contractors for execution of

building works shall have the following responsibilities:

1. To take measures to ensure environmental hygiene during the process of

execution of building works, including the air environment, the water
environment, solid waste, noise and other requirements of environmental
hygiene;

2. To compensate for loss caused by any breach of environmental hygiene by

a contractor during the process of execution of building works or
transportation of materials;

3. To comply with other provisions of the laws on protection of the

environment.

Article 80 Check and acceptance of and hand-over of constructed works

1. Check and acceptance of constructed works shall comply with the

following provisions:

(a) It shall comply with the regulations on quality control of

construction works.

(b) There must be check and acceptance of each job, each section, each
stage and each item of works, and a check and acceptance to
commission the works. In particular, there must be check and
acceptance of each section of concealed works, and there must be
drawings of completed works prior to subsequent jobs being carried
out.

(c) Check and acceptance shall only be conducted when the object of
the check and acceptance has been completed and there is a
complete file as required by regulations.

(d) Check and acceptance for commissioning of constructed works shall

only be conducted when all design and quality requirements have
been satisfied and when the works achieve the standards stipulated
by regulations.

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2. Hand-over of constructed works shall comply with the following

provisions:

(a) It shall satisfy the requirements on principles, contents and order

for hand-over of completed building works and their
commissioning in accordance with the laws on construction.

(b) It must ensure safety during operation and exploitation when works
are commissioned.

3 Contractors for execution of building works shall be responsible to

complete all building works, to clean up the site, to formulate drawings of
the completed works, and to prepare all documentation servicing check
and acceptance and hand-over of constructed works.

4. Investors in construction of works shall be responsible to conduct check

and acceptance and to receive constructed works. Any individual
participating in check and acceptance and hand-over of work shall be
personally liable for the product certified by him or her during the
processes of execution of building works and of hand-over of constructed
works.

Article 81 Payments and finalization in construction activities

1. Contractors shall be responsible to prepare a file on payments and to

conduct finalization of the volume of works completed. Investors in
construction of works must make payment to contractors for the volume of
works which has been checked and accepted.

2. Investors in construction of works shall conduct finalization of invested

capital within a time-limit not to exceed twelve (12) months from the date
of hand-over and commissioning of the building works, except in cases
where the law provides otherwise.

3. Persons responsible to make payments or to conduct finalization shall be

responsible before the law for their work and must compensate for loss
and damage caused by the consequences of late payment or late
finalization or by payment or finalization contrary to the regulations.

4. The Government shall provide detailed regulations on payment and

finalization in construction activities.

Article 82 Warranty of constructed works

1. Contractors for execution of building works shall be responsible to

provide a warranty for the constructed works, and contractors for
procurement of equipment for works shall be responsible to provide a
warranty for such equipment.

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2. The contents of a warranty of constructed works shall comprise

remedying, repair and/or replacement of equipment which is damaged or
defective or when works become abnormal in operation or use due to the
fault of the contractor.

3. The warranty period shall be fixed depending on the type and level of
works.

4. The Government shall provide detailed regulations on the warranty period

of constructed works.

Article 83 Maintenance of construction works

1. The owner or the person managing use of works shall be responsible to

maintain the works and the fit-out of the works.

2. Maintenance of works and their fit-out shall be implemented in accordance

with the directions and rules of the designer and the manufacturer.

3. The maintenance of works shall be fixed depending on the type and level
of works.

4. The Government shall provide detailed regulations on maintenance of

works.

Article 84 Building works incidents

1. If a building works incident occurs during the process of execution of

building works or during the operation, exploitation and use of works, the
contractor for execution of building works, the owner or the person
managing use of the works shall be responsible:

(a) To stop building work, or to stop operation, exploitation or use of

works, and to take prompt measures to ensure the safety of persons
and property;

(b) To take the necessary measures to prevent and limit any danger that
may continue to happen, and to notify the competent organizations
and individuals and also the organizations and individuals
concerned;

(c) To protect the site, except where emergency remedial measures

must be taken to prevent loss and damage.

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2. Upon receipt of notification of a building works incident, the competent

organizations and individuals shall, within the scope of their respective
duties and powers, be responsible:

(a) To take immediate emergency remedial measures;

(b) The State administrative body for construction shall be responsible

to appoint an organization which satisfies the conditions on
capability to conduct an examination in order to determine the
reasons for the incident and to clarify the liability of the entities
which caused it.

3. Any person at fault in causing a building works incident shall be liable to

compensate for loss and damage and for related costs, or may be subject to
criminal prosecution.

Article 85 Relocation of construction works

1. Any relocation of construction works from one location to another must

comply with approved construction master plans and must ensure that the
architecture and the quality of the works is maintained.

2. Prior to relocating construction works, the investor in construction of

works must apply for a permit to relocate which shall be issued by the
provincial people's committee.

3. Any contractor which undertakes the work of relocating construction

works must take measures to ensure safety of employees, safety of the
works being relocated and adjoining works, and environmental hygiene.

Article 86 Dismantling construction works

1. Construction works shall be dismantled in the following circumstances:

(a) In order to conduct site clearance for construction of new works or

for construction of the temporary works prescribed in article 94.2
of this Law;

(b) When construction works which are in danger of collapse adversely

affect the community and adjoining works;

(c) When the construction works are built in an area in which

construction is prohibited as stipulated in article 10.1 of this Law;

(d) When the construction works are contrary to construction master

plans, were built without a construction permit where the law
requires such permit, or are incorrect in terms of the provisions of
an issued construction permit;

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(dd) Other circumstances as stipulated by law.

2. The work of dismantling construction works must satisfy the following

conditions:

(a) It shall only be undertaken pursuant to a decision of a competent

State body.

(b) It must be undertaken pursuant to an approved solution on

dismantling, ensuring safety and environmental hygiene.

3. The responsibilities of parties participating in the dismantling of

construction works shall be provided for as follows:

(a) The person assigned to organize dismantling of construction works

shall be responsible to implement the provisions in clause 2 of this
article; and shall be responsible before the law and must
compensate for loss and damage caused by his or her fault.

(b) The current owner or user of works which must be dismantled as

stipulated in clause 1 of this article shall comply with any decision
of a competent State body to dismantle the works, and if the owner
or user fails to comply voluntarily with such decision, the works
shall be compulsorily dismantled and the owner or user shall bear
all costs of such work.

(c) Any person authorized to make a decision on dismantling

construction works shall be responsible before the law for the
consequences of failure to issue a decision, of a decision out of
time, or of a decision contrary to law.

SECTION 4

Supervision of Execution of Building Works

Article 87 Supervision of execution of building works

1. During the process of execution of building works, all construction works

shall be subject to the supervisory regime.

2. Supervision of execution of building works shall be carried out in order to

monitor and inspect quality, volumes, schedule, labour safety and
environmental hygiene during execution of building works.

3. Investors in construction of works shall hire a consultant supervisor or

may themselves carry out supervisory work when they satisfy the
conditions on capability for supervision of execution of building works.

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Any individual undertaking supervision of execution of building works

must have a practising certificate for supervision of execution of building
works appropriate for the type and level of works.

4. It is encouraged to implement the supervisory regime in the case of

separate dwelling-houses.

Article 88 Requirements applicable to supervision of execution of building

works

Supervision of execution of building works must satisfy the following

requirements:

1. It must be conducted immediately as from the date of commencement of

construction of works.

2. [It must be conducted] regularly and continuously during the process of

execution of building works.

3. Supervision must be based on the approved design and on the applicable

construction regulations and construction standards.

4. It must be honest, objective and not conducted with an ulterior motive.

Article 89 Rights and obligations of investors in construction of works

throughout supervision of execution of building works

1. Investors in construction of works shall have the following rights

throughout supervision of execution of building works:

(a) To conduct supervision themselves when they satisfy the conditions

on capability to supervise execution of building works;

(b) To negotiate and sign a contract and to monitor and supervise

implementation of the contract;

(c) To change the supervisor, or to request the consultancy organization

to change the supervisor, when the latter fails to conduct his or her
work correctly in accordance with regulations;

(d) To suspend implementation of or terminate in accordance with law a

contract for supervision of execution of building works;

(dd) Other rights in accordance with law.

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2. Investors in construction of works shall have the following obligations

throughout supervision of execution of building works:

(a) To hire a consultant supervisor when the investor does not have full
capability for the activity of supervision of execution of building
works;

(b) To notify the relevant parties of the rights and obligations of the
consultant supervisor;

(c) To deal with proposals from the supervisor in a timely manner;

(d) To discharge fully the obligations agreed in the contract for

supervision of execution of building works;

(dd) Not to collude or use influence to impose false results of

supervision;

(e) To archive the results of supervision of execution of building works;

(g) To compensate for loss and damage when selecting a consultant

supervisor who fails to satisfy the conditions on capability for
supervision of execution of building works; checks and accepts an
incorrect volume of works or works constructed incorrectly in
terms of design; or for loss arising from any other breach which
was the fault of the investor;

(h) Other obligations in accordance with law.

Article 90 Rights and obligations of contractors for supervision of execution

of building works

1. Contractors for supervision of execution of building works shall have the

following rights:

(a) To certify check and acceptance when the works have been
constructed correctly in terms of the design, correctly in accordance
with construction regulations and construction standards, and
quality;

(b) To require the contractor for execution of building works to

perform correctly its contract;

(c) To maintain their own opinions with respect to the supervisory

work that they have undertaken;

(d) To refuse any unlawful requests from related parties;

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(dd) Other rights in accordance with law.

2. Contractors for supervision of execution of building works shall have the

following obligations:

(a) To perform supervisory work correctly in accordance with the

signed contract;

(b) Not to certify check and acceptance for a volume of works not
constructed to the required quality and technical criteria set by the
designer of the works;

(c) To refuse to certify check and acceptance for works which fail to
satisfy requirements on quality;

(d) To make proposals to the investor regarding unreasonable items in

the design in order that they may be promptly amended;

(dd) To purchase professional indemnity insurance;

(e) Not to collude with the contractor for execution of building works
or with the investor in construction of works or to conduct any
other breach in order to impose false results of supervision;

(g) To compensate for loss and damage for imposing false results of
supervision of a volume of works constructed incorrectly in terms
of design or not in compliance with construction regulations and
construction standards and the supervisor fails to notify the investor
or authorized person to deal with the issue; or for loss arising from
any other breach which was the fault of the supervisory contractor;

(h) Other obligations in accordance with law.

SECTION 5

Construction of Special Building Works

Article 91 Special building works

Special building works shall comprise:

1. State secret works;

2. Works constructed pursuant to an emergency order;

3. Temporary works.

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Article 92 Construction of State secret works

1. State secret works constructed as required must ensure secrecy during all
construction activities and shall belong to the sectors of national defence,
security, economics, science and technology and other sectors.

2. Any person assigned management and implementation of construction of

State secret works shall have the right to make decisions thereon and shall
be responsible for carrying out construction through the stages of project
formulation, survey, design, execution and supervision of execution of
building works up to the stage of check and acceptance and commissioning
of the works.

3. The Government shall make a decision on construction of each State secret

works when there is a requirement to construct same.

Article 93 Construction of works pursuant to emergency order

1. Works pursuant to an emergency order shall be constructed with the aim

of promptly satisfying the urgent requirement to prevent or combat a
natural disaster, war or any other emergency in accordance with
regulations of the Government.

2. Any person assigned management and implementation of construction of

works pursuant to an emergency order shall have the right to make his or
her own decision on the order of survey, design and execution as
appropriate to the requirements and emergency situation and shall be
responsible for organizing construction of the works, ensuring prompt
satisfaction for the purpose of minimization of loss and damage to persons
and property.

Article 94 Construction of temporary works

1. Temporary works may be constructed and shall only be permitted to exist

for a fixed period.

2. Temporary works shall comprise:

(a) Temporary works to service construction of main works;

(b) Works and separate dwelling-houses permitted to be built within a

period stated in the master plan but for which site clearance has not
yet been conducted.

3. Within a time-limit not to exceed thirty (30) days from the date of
commissioning of main works, the investor in construction of the
temporary works which serviced construction of the main works shall
itself dismantle the temporary works, unless they are large-scale temporary

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works or a residential area consistent with the approved construction

master plan. With respect to works and separate dwelling-houses for
which the construction permit provides permission for construction for a
fixed duration only, the investor in construction of such temporary works
shall itself organize dismantling and, if it fails to do so voluntarily, the
works shall be compulsorily dismantled and the investor shall bear all
costs of such work and shall not be entitled to compensation.

CHAPTER VI

Selection of Contractors and Construction Contracts

SECTION 1

Selection of Construction Contractors

Article 95 Selection of contractors in construction activities

1. The selection of contractors in construction activities shall be carried out

for jobs, groups of jobs or for the entire work of formulation of detailed
construction master plans, formulation of investment projects for
construction of works, survey, design, execution of building works,
supervision and other construction activities.

2. The objective of selection of contractors shall be to identify a head

contractor, a general contractor and sub-contractors with full capability for
construction activities and with full capability for construction practice
appropriate for the type and level of works.

3. A main contractor or a head contractor shall be permitted to assign a part

of their contractual work to sub-contractors, which must have full
capability for construction activities and full capability for the relevant
construction practice and which must be approved by the investor in
construction of works. Sub-contractors shall not be permitted to assign all
or part of the main contractual work to other contractors.

4. The selection of contractors in construction activities shall comply with

the provisions of this Law and of the laws on tendering.

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Article 96 Requirements applicable to selection of contractors in construction

activities

1. The selection of contractors must ensure the following requirements:

(a) Satisfy effectiveness of the investment project for construction of

works;

(b) The selected contractor must have full capability for construction
activities and full capability for the relevant construction practice,
and the tender price of the contractor must be reasonable;

(c) Selection of contractors must be conducted objectively, publicly,

impartially and transparently.

2. The person making the investment decision [or] the investor in

construction of works shall have the right to decide the form of selection
of contractors.

Article 97 Forms of selection of contractors in construction activities

Depending on the scale, nature and funding source of the particular construction
works, the person making the investment decision or the investor in construction
of works may select a contractor by the following forms:

(a) Open tendering, limited tendering;

(b) Appointment of a contractor;

(c) Selection of a contractor for architectural design for construction of works.

Article 98 Requirements applicable to tendering in construction activities

1. The objective of tendering in construction activities for selection of an

appropriate contractor shall be to ensure competitiveness.

2. Tendering shall only take place after the funding source to perform the
work has been fixed.

3. The time-limit for conducting tendering shall not be extended in order to

ensure the schedule and effectiveness of an investment project for
construction of works.

4. A successful tenderer must have a technical plan, optimal technology and

a reasonable tender price.

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5. Domestic tenderers participating in international tenders in Vietnam shall

be entitled to the regime on preferential treatment in accordance with
regulations of the Government.

6. An entity participating in a tender may not use the legal entity status of
another organization; may not make an arrangement to or in fact buy or
sell a tender; may not use its influence to falsify the results of tendering,
and may not reduce a tender price below the cost of building the works
being the subject of the tender.

Article 99 Open tendering in construction activities

1. Open tendering shall be conducted in order to select a contractor for

execution of building works, and the number of participating tenderers
shall be unlimited.

2. The party calling for tenders must widely announce on the mass media the
conditions and time-limits for participation in the tendering.

3. A tenderer may only participate in a tender if it has full capability for

construction activities and full capability for construction practice
appropriate for the type and level of works in accordance with the
conditions announced by the party calling for tenders.

4. The party calling for tenders shall be responsible to announce on the mass
media the results of the tender consideration and the contract award price.

Article 100 Limited tendering in construction activities

1. Limited tendering shall be conducted in order to select a construction

consultancy contractor and a contractor for execution of building works
applicable to works with high technical requirements and when there is
only a limited number of contractors which satisfy the conditions on
capability for construction activities and capability for construction
practice so as to be invited to participate in the tendering.

2. With respect to investment projects for construction of works and works

funded by State capital, the following shall not be permitted to participate
in tendering for the same tender package: two or more enterprises which
are subsidiaries of the same corporation; a corporation and its own
member company; a parent company and its subsidiary; or a joint venture
enterprise and one of the capital contributors to that joint venture.

Article 101 Appointment of contractors in construction activities

1. The person making the investment decision or the investor in construction

of works shall have the right to appoint directly an organization with full
capability for construction activities or individual with full capability for

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construction practice to undertake work or construction of works at a

reasonable price in the following circumstances:

(a) Works in the category of State secrets, works constructed pursuant

to an emergency order, and temporary works;

(b) Works of a research or experimental nature;

(c) Work, works or items of construction works which are on a simple

or small scale in accordance with regulations of the Government;

(d) Repair, embellishment or restoration of works on cultural or

historical-cultural heritage sites;

(dd) Other special cases permitted by the person authorized to make the
investment decision.

2. Any person authorized to appoint a contractor shall be responsible before

the law for selection of a contractor with full capability for construction
activities and with full capability for construction practice.

3. Any organization or individual appointed as a contractor must have full

capability for construction activities and full capability for construction
practice appropriate for the work and the type and level of works, and the
financial status of the appointee must be healthy and transparent.

Article 102 Selection of architectural design contractors for construction works

1. The selection of architectural design contractors for construction works

shall be carried out for the construction works prescribed in article 55 of
this Law.

2. The author of a selected architectural design plan shall be given priority in

selection to conduct the subsequent design steps if the author satisfies the
conditions on capability for construction design activities and on
capability to practise design for construction of works.

Article 103 Selection of general contractors in construction activities

1. Depending on the scale, nature, type and level of works and the specific
conditions of the particular investment project for construction of works,
the person making the investment decision or the investor in construction
of works shall make a decision on the following forms of selection of a
general contractor in construction activities:

(a) General design contractor to carry out the whole of the work of
design of the building works;

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(b) General contractor for execution of building works to carry out the
whole of the building works;

(c) General contractor to carry out the whole of the work of design and
execution of building works;

(d) General contractor to carry out the whole of the work of design,
procurement of materials and equipment, and execution of building
works;

(dd) General turn-key contractor to carry out all of the work of a

package from formulation of the project up to design, procurement
of materials and equipment, and execution of building works.

2. An independent contractor or a partnership of contractors participating in

tendering for construction activities must satisfy the conditions on
capability for construction activities appropriate for types and levels of
works as prescribed in this Law.

3. Where a form of general contractor prescribed in clause 1 of this article is

applied, the general contractor must appoint a person satisfying the
conditions on capability for construction practice to co-ordinate all of the
work of such general contractor.

Article 104 Rights and obligations of parties calling for tenders

1. A party calling for tenders shall have the following rights:

(a) To require tenderers to provide necessary information servicing

selection of a contractor;

(b) To select a successful tenderer or to rescind the results of selection

of a tenderer in accordance with the laws on tendering;

(c) Other rights in accordance with law.

2. A party calling for tenders shall have the following obligations:

(a) To prepare tender invitation documents and a tender plan consistent

with the contents of the approved investment project for
construction of works;

(b) To check the declaration of the selected tenderer regarding the

capability for construction activities, capability for construction
practice, and financial status of such tenderer;

(c) To provide in a timely manner and fully the capital funds in order
that the work is able to be done on schedule;

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(d) To notify tenderers of any necessary requests and to implement

correctly notified items;

(dd) With respect to construction works funded by the State, to

announce publicly the successful entity and the contract award
price after the results of selection of a tenderer are available;

(e) To purchase insurance for the works;

(g) To compensate for loss caused to tenderers when such loss was the
fault of the party calling for tenders;

(h) To be responsible before the law for any act of making illegal
arrangements in tendering, of buying or selling a tender, of
disclosing information during tender consideration, or of collusion
with contractors or any other breach of the laws on tendering;

(i) Other obligations in accordance with law.

Article 105 Rights and obligations of tenderers

1. Tenderers shall have the following rights:

(a) To participate in tendering as an independent contractor or in

partnership with other contractors;

(b) To request that information be provided and to conduct a site survey

in order to prepare a tender;

(c) To lodge a complaint or denunciation upon discovery of a breach of

the regulations on selection of contractors;

(d) Other rights in accordance with law.

2. Tenderers shall have the following obligations:

(a) To prepare tenders which are truthful and accurate and which satisfy
the requirements set out in the tender invitation documents;

(b) To be responsible before the law for any conduct in breach as

prescribed in article 98.6 of this Law;

(c) To compensate for loss caused by any conduct in breach which

results in extension of the tendering or in re-tendering;

(d) To perform tender guarantees;

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(dd) Other obligations in accordance with law.

Article 106 Responsibilities of person making investment decision on

construction of works during selection of contractors

1. To inspect and deal with any breaches and to resolve any complaints or
denunciations during selection of contractors;

2. To suspend selection of contractors [or] to rescind the results of selection

of a tenderer upon discovery of any breaches during selection of
contractors;

3. To be responsible before the law and to pay compensation for loss and
damage due to his or her decisions.

SECTION 2

Contracts in Construction Activities

Article 107 Contracts in construction activities

1. Contracts in construction activities shall be prepared for the work of

formulation of construction master plans, formulation of investment
projects for construction of works, construction survey, design of
construction of works, supervision, execution of building works,
management of investment projects for the construction of works and
other work in construction activities.

2. Contracts in construction activities shall be prepared in writing and shall

comply with the provisions of this Law and of other relevant laws.

3. Depending on the scale and nature of works, the type of work and the
relationship between the parties, contracts in construction activities may
be of various types and have different contents.

Article 108 Basic contents of contracts in construction activities

A contract in construction activities shall contain the following basic items:

1. Contents of the work to be performed;

2. Quality and other technical requirements of the work;

3. Duration and schedule for implementation;

4. Conditions on check and acceptance and hand-over;

5. Price and method of payment;

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6. Warranty period;

7. Liability for contractual breach;

8. Other agreements depending on each particular type of contract;

9. Language to be used in the contract.

Article 109 Changes to contracts in construction activities

1. A contract in construction activities may only be changed with permission

from the person having made the investment decision in the following
circumstances:

(a) When there is a change to the investment project for construction of

works;

(b) When the State changes the relevant policies;

(c) In a case of force majeure.

2. The person permitting a change to a contract shall be responsible before

the law for his or her decision and shall compensate for loss and damage
caused by the consequences of his or her decision.

Article 110 Contractual bonuses, penalties for contractual breaches, and

resolution of contractual disputes in construction activities

1. If contractual bonuses and penalties for contractual breaches are to apply,

the contract must so record expressly.

2. With respect to construction works funded by State capital, the cap on

bonuses shall not exceed twelve (12) per cent of the value of the profitable
part of the contract, and the cap on penalties shall not exceed twelve (12)
per cent of the value of the contract which is breached. Funds to pay
bonuses shall be taken from that part of the contract which is profitable as
a result of early commissioning or operation of the works which meets
quality requirements, or from reasonable savings made on costs of contract
performance.

3. If a contractual dispute arises in construction activities, the parties shall be

responsible to resolve it by negotiation. If the parties are not able to
negotiate a settlement, the dispute shall be resolved by conciliation or
arbitration, or a court shall resolve the dispute in accordance with law.

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CHAPTER VII

State Administration of Construction

Article 111 Contents of State administration of construction

1. Formulation of strategies and plans for development of construction

activities, and directing implementation of such strategies and plans;

2. Promulgation of legal instruments on construction and organizing their

implementation;

3. Promulgation of construction regulations and construction standards;

4. Quality control of and archiving files on construction works;

5. Issuance and withdrawal of all types of permits in construction activities;

6. Guiding, checking, inspecting, resolving complaints and denunciations

and dealing with breaches in construction activities;

7. Organization of scientific and technological research in construction

activities;

8. Training the workforce for construction activities;

9. International co-operation in the area of construction activities.

Article 112 State administrative bodies for construction

1. The Government shall exercise uniform State administration of

construction throughout the whole country.

2. The Ministry of Construction shall be responsible before the Government

to carry out uniform State administration of construction.

3. Ministries and ministerial equivalent bodies shall, within the scope of their
respective duties and powers, co-ordinate with the Ministry of
Construction to carry out State administration of construction.

4. People's committees at all levels shall be responsible to carry out State

administration of construction within their respective localities in
accordance with authority delegated to them by the Government.

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Article 113 Construction Inspectorate

1. The Construction Inspectorate shall be the specialized inspectorate for

construction.

2. The Government shall provide regulations on organization and operation

of the Construction Inspectorate.

Article 114 Duties of Construction Inspectorate

The Construction Inspectorate shall have the following duties:

1. To inspect implementation of the laws on construction;

2. To detect, prevent and deal with breaches of the laws on construction in

accordance with its own authority or to recommend that the competent
State body deal with such breaches;

3. To verify and recommend that the competent State body deal with
complaints and denunciations regarding construction.

Article 115 Rights and obligations of Construction Inspectorate

1. The Construction Inspectorate shall have the following rights:

(a) To require the relevant organizations and individuals to provide data

and to explain essential issues;

(b) To request evaluation of items relevant to the quality of works in

necessary cases;

(c) To apply preventive measures in accordance with law;

(d) To prepare minutes of inspections and to deal with [breaches] in

accordance with its own authority or to recommend that the
competent State body take measures to deal with;

(dd) Other rights in accordance with law.

2. The Construction Inspectorate shall have the following obligations:

(a) To exercise the functions and duties of, and to implement the order
and procedures for, an inspectorate in accordance with regulations;

(b) To present the decision on inspection and inspector cards to any

entity being subject to inspection. An inspection must be minuted;

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(c) To be responsible before the law for the conclusion of an inspection

and to compensate for loss arising from an incorrect conclusion;

(d) To discharge other obligations in accordance with law.

Article 116 Rights and obligations of organizations and individuals being

subject to inspection

1. Organizations and individuals being subject to inspection shall have the

following rights:

(a) To request an inspector or an inspection group to explain the

requirements of the inspection;

(b) To lodge complaints and denunciations regarding a breach of law

during operations of inspectors.

2. Organizations and individuals being subject to inspection shall have the

following obligations:

(a) To facilitate an inspector or an inspection group to perform its

duties;

(b) To provide data, to explain essential issues, and to comply with a

conclusion of the Construction Inspectorate.

Article 117 Right to lodge complaints and denunciations, responsibility to

resolve complaints and denunciations

1. Individuals shall have the right to lodge complaints and denunciations, and
organizations shall have the right to lodge complaints, about conduct in
breach of the provisions of this Law with the State administrative body for
construction, or to institute court proceedings in accordance with the laws
on complaints and denunciations.

2. State administrative bodies for construction at all levels shall be

responsible to resolve complaints and denunciations from organizations
and individuals within their authority and, if they receive a complaint or
denunciation outside their jurisdiction, they shall forward it to the
competent authority for resolution and provide written notification thereof
to the entity which made the complaint or denunciation.

Article 118 Complaints and denunciations, resolution of complaints and

denunciations

1. Complaints and denunciations shall be made, and their resolution shall be

conducted, in accordance with the laws on complaints and denunciations.

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2. Pending resolution of a complaint, denunciation or court proceedings, any

organization or individual subject to an administrative decision imposed
by a State administrative body for construction must implement such
decision. Upon a decision resolving the complaint or denunciation by a
State administrative body for construction or upon a court judgment or
decision which is legally effective, the matter shall be resolved in
accordance with such decision or court judgment or decision.

CHAPTER VIII

Commendations and Rewards and Dealing with Breaches

Article 119 Commendations and rewards

Organizations and individuals having achievements in construction activities and

administration of construction activities shall be commended and rewarded in
accordance with law.

Article 120 Dealing with breaches

1. Any person in breach of the laws on construction and other relevant laws
shall, depending on the nature and seriousness of the breach, be
disciplined, be subject to administrative penalty or be subject to criminal
prosecution; and if such person causes loss and damage to the interests of
the State or to the lawful rights and interests of organizations and
individuals, compensation shall be payable.

2. Any construction works which are contrary to construction master plans,

were built without a construction permit where the law requires such
permit, or are incorrect in terms of the provisions of an issued construction
permit must be completely dismantled or the section in breach must be
dismantled in accordance with regulations.

CHAPTER IX

Implementing Provisions
Article 121 Dealing with works constructed prior to date of effectiveness of this
Law which are inconsistent with provisions of this Law

Works constructed prior to the date of effectiveness of the Law on Construction

which are inconsistent with the provisions of this Law shall be dealt with as
follows:

1. Existing construction works which comply with the master plan but have
non-compliant architecture shall be permitted to retain their status quo; if

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the works are improved, up-graded or repaired, they must comply with the
provisions of this Law.

2. Existing construction works which do not comply with the master plan
shall be dealt with as follows:

(a) The competent State body shall consider and issue the owner of the
works with a temporary construction permit with the same duration
as the duration for implementation of the master plan when there is
a requirement to improve, up-grade or repair the works.

(b) When works are transferred to a planned zone, the owner of the
works shall be compensated or assisted in accordance with law.

3. With respect to works the subject of permission for temporary

construction, if there is a request for compulsory relocation of such works
prior to expiry of the duration for implementation of the master plan or
prior to expiry of the duration stated in the temporary construction permit,
compensation shall be paid in accordance with law.

Article 122 Effectiveness

This Law shall be of full force and effect as of 1 July 2004.

Article 123 Implementing guidelines

The Government shall provide detailed regulations and guidelines for

implementation of this Law.

This Law was passed by Legislature XI of the National Assembly of the Socialist
Republic of Vietnam at its 4th Session on 26 November 2003.

The Chairman of the National Assembly

NGUYEN VAN AN

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