Foreign Contractor Construction License in Vietnam

Obtaining a foreign contractor construction license is a necessary procedure for foreign organizations and individuals to perform construction activities in Vietnam. Compliance with licensing regulations ensures the legality and effectiveness of construction projects. This article from Long Phan Consulting Company provides clients with detailed information on the conditions, dossier, and procedures for applying for a foreign contractor construction license.

Conditions for Issuing a Foreign Contractor Construction License

Vietnamese law stipulates strict conditions that foreign contractors must meet before being granted a construction license. Full compliance with these requirements is the basis for the competent state agency to review and approve the application.

Based on Subsection 15.10, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, a foreign contractor must meet the following conditions:

• Has won a bid or been selected as the contractor: This is a prerequisite, proving that the foreign contractor has a specific project or bidding package to execute in Vietnam. This decision must be legally issued by the project owner or the main contractor (if the foreign contractor is a subcontractor).
• Must form a joint venture with a Vietnamese contractor or use Vietnamese subcontractors: This regulation aims to protect and develop the capacity of domestic contractors. When participating in a project, the foreign contractor is obligated to cooperate with a Vietnamese partner. The content, volume, and value of the work performed by the Vietnamese contractor must be clearly defined in the joint venture agreement or subcontract.
• Exception: The condition for a joint venture or the use of Vietnamese subcontractors does not apply if domestic contractors lack the capacity to participate in any part of the bidding package. In this case, the foreign contractor must provide supporting documents for the competent authority’s consideration.

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Competent Authority for a Foreign Contractor Construction License

Pursuant to Subsection 15.6, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, the competent authority is determined as follows:

• Provincial Department of Construction: This is the authority empowered to issue a foreign contractor construction license for construction projects located within its provincial administrative area.
• Special case for inter-provincial projects: If a foreign contractor undertakes a construction project spanning the territory of two or more provinces, the competent authority to issue the license is the Department of Construction in the locality where the contractor plans to establish its main executive office for the project. This regulation centralizes management for more convenient supervision and coordination.

Required Dossier

The application dossier for a foreign contractor construction license requires a complete set of legal and technical documents. Based on Subsection 15.3, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, clients need to prepare one set of the following documents:

• An application for a construction license in Vietnamese, using Form No. 01 (for organizations) or Form No. 04 (for individuals) from Appendix III of Decree No. 175/2024/ND-CP.
• A certified copy or a certified electronic copy of the bidding result or the legal contractor selection decision (if in a foreign language, it must be translated into Vietnamese and notarized/certified as per Vietnamese law).
• A certified copy or a certified electronic copy of the establishment license or business registration certificate for the organization, which has been consular legalized, unless an international treaty to which Vietnam is a signatory provides for an exemption from consular legalization; and practicing certificates (if any) issued by the contractor’s home country, translated into Vietnamese and notarized/certified as per Vietnamese law.
• A report on operational experience related to the contracted work, using Form No. 02 from Appendix III of Decree No. 175/2024/ND-CP, and a certified copy or certified electronic copy of the audited financial statements for the last 03 years (for cases not subject to bidding laws); for contractors established for less than 03 years, the audited financial reports for the years of operation must be submitted.
• A certified copy or certified electronic copy of the joint venture contract with a Vietnamese contractor or the official/principal contract with a Vietnamese subcontractor for the contracted work (already included in the bid documents), which must be translated into Vietnamese and notarized/certified if in a foreign language.
• A legal power of attorney for any person who is not the legal representative of the contractor, which must be translated into Vietnamese and notarized/certified if in a foreign language.

Note: Documents in foreign languages must be translated into Vietnamese and notarized or certified in accordance with Vietnamese law.

>>> See more:

• Form No. 01, Appendix III, Decree No. 175/2024/NĐ-CP.
• Form No. 04, Appendix III, Decree No. 175/2024/NĐ-CP.

Implementation Procedure

The process for issuing a foreign contractor construction license is conducted in clear steps with a specific resolution time. Understanding this sequence helps the contractor to be proactive in submitting the dossier and monitoring its progress.

Dossier Submission Methods

Based on Subsection 15.2, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, the foreign contractor can choose one of the following submission methods:

• Direct submission: Submit the dossier at the provincial Public Administration Service Center.
• Postal service: Send the dossier by mail to the address of the competent authority.
• Online: Submit the dossier through the provincial online public service portal.

Implementation Steps

The implementation sequence is regulated in Subsection 15.1, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, and includes:

• Step 1: Dossier Submission: The foreign contractor prepares one set of the required dossier and submits it to the provincial Public Administration Service Center using one of the methods above.
• Step 2: Appraisal and Licensing: Within 10 days of receiving a complete and valid dossier, the Department of Construction is responsible for reviewing it. If the dossier meets all conditions, the Department of Construction will issue the foreign contractor construction license. In case of refusal, the Department must provide a written response stating the reasons.

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Required Costs

When carrying out the procedure for a foreign contractor construction license, clients should budget for related costs. These include state fees and other service charges incurred during dossier preparation.

• State Fee: According to Subsection 15.8, Section B, Part II of the Administrative Procedures issued with Decision No. 864/QD-BXD in 2025, the contractor must pay a licensing fee. The fee amount, collection, and payment are implemented according to the regulations in Circular 38/2022/TT-BTC dated June 24, 2022, from the Minister of Finance.
• Other Costs:
  • Costs for translation, notarization, and certification of documents in foreign languages.
  • Consular legalization costs for documents issued by foreign authorities.
  • Professional consulting service fees if the client uses a professional support unit to carry out the procedure.

Consulting Services

The application for a foreign contractor construction license involves complex regulations and meticulous dossier preparation. To ensure a fast and accurate process, using a professional consulting service is an effective solution. Long Phan Consulting Company offers comprehensive support services, partnering with contractors throughout this process.

Our professional services include:

• Advising on the conditions for being granted a construction license in Vietnam.
• Guiding the preparation and verifying the validity of each document in the dossier.
• Drafting the application form and other necessary documents according to regulations.
• Assisting with translation, notarization, certification, and consular legalization procedures.
• Acting as the client’s authorized representative to submit the dossier at the competent state agency.
• Monitoring the dossier processing progress, and working with and explaining to officials when requested.
• Receiving the Construction License and delivering it to the client.

Frequently Asked Questions

Below are common questions about the procedure for a foreign contractor construction license.

Which agency is competent to issue a construction license to a foreign contractor?

The provincial Department of Construction is the competent authority to issue a construction license to a foreign contractor for projects within its jurisdiction. For projects spanning two or more provinces, the authority belongs to the Department of Construction where the contractor intends to locate its executive office. Legal basis: Subsection 15.6, Section B, Part II, Administrative Procedures issued with Decision No. 864/QD-BXD in 2025.

How long does it take to process the procedure for a foreign contractor construction license?

The resolution period is 10 days from the date the competent authority receives a complete and valid dossier. Legal basis: Subsection 15.1, Section B, Part II, Administrative Procedures issued with Decision No. 864/QD-BXD in 2025.

What is the prerequisite condition for a foreign contractor to be granted a construction license?

The prerequisite is that the foreign contractor must have a legal decision of winning a bid or being selected as a contractor from the project owner or main contractor in Vietnam. Legal basis: Subsection 15.10, Section B, Part II, Administrative Procedures issued with Decision No. 864/QD-BXD in 2025.

Is there a fee for the procedure to obtain a construction license for a foreign contractor?

Yes. Foreign contractors must pay a licensing fee according to the current regulations of the Ministry of Finance. Legal basis: Subsection 15.8, Section B, Part II, Administrative Procedures issued with Decision No. 864/QD-BXD in 2025.

Is it mandatory for a foreign contractor to form a joint venture with a Vietnamese contractor?

Yes, a foreign contractor must form a joint venture with a Vietnamese contractor or use Vietnamese subcontractors, except in cases where domestic contractors lack the capacity to participate in any part of the bidding package. Legal basis: Subsection 15.10, Section B, Part II, Administrative Procedures issued with Decision No. 864/QD-BXD in 2025.

Conclusion

The procedure for a foreign contractor construction license is a mandatory legal requirement that demands careful preparation of the dossier and strict adherence to the sequence. To ensure a smooth process, save time, and minimize risks, the support of a professional consulting unit is the optimal solution. Clients in need are welcome to contact Long Phan Consulting Company via hotline: 1900636389 for comprehensive assistance.