Construction work is a profession that many companies choose to do business. However, in order to do business in this industry, companies must meet the legal conditions for certificates and practice licenses because this is a conditional business line. Foreign investors do business in construction services in Viet Nam must meet the following conditions.
Legal grounds
WTO, FTAs, AFAs, VKFTA
Construction Law 2014;
Investment Law 2014;
Decree No. 59/2015/ND-CP on construction investment project management.
Circular 17/2016/TT-BXD guiding the capacity of organizations and individuals participating in construction activities promulgated by the Minister of Construction.
Investment conditions
According to WTO, AFAS, FTAs, VKFTA
Foreign investor: must be a legal entity of a WTO Member or an ASEAN member state (VKFTA: does not require the investor to be a legal entity of Korea)
The scope of operation of a foreign-invested economic organization includes:
- Construction of high-rise buildings (CPC 512);
- Construction of civil engineering works (CPC 513);
- Installation work (CPC 514, 516);
- Completion of high-rise buildings (CPC 517);
- Other construction works (CPC 511, 515, 518).
According to Vietnamese Law
Vietnamese law does not stipulate separate investment conditions applicable to foreign investors. However, foreign investors when investing in Vietnam must comply with the investment laws of Vietnam like domestic investors.
Accordingly the investment law, the business of construction services is a conditional business. Therefore, foreign investors who want to invest in construction service business must meet the following conditions:
- Firstly, having full capacity for construction activities corresponding to types and grades of construction works.
- Secondly, site commanders have capacity to practice construction work and appropriate practice certificates.
- Thirdly, having construction equipment that meets the requirements on safety and quality of construction works.
- Lastly, carry out procedures for announcing construction capacity according to the scale of operation.
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Finally, hope this article Foreign investors do business in construction services is useful for you.
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Related questions
According to current regulations; investors can choose the following types of businesses:
Firstly; One-member limited liability company;
Secondly; Limited liability companies with two or more members;
Thirdly; Joint stock company; Partnerships, etc.
Finally; each type of business has its own advantages and disadvantages. Investors need to choose the appropriate type; based on the purpose and scale of investment.
Conclusion: So the above is Foreign investors do business in construction services in Viet Nam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
