Global Vantage: Vietnam’s Construction Law 2025

Vietnam has introduced a significant reform of its construction regulatory framework through the introduction of Construction Law No. 135/2025/QH15 (Construction Law 2025), which came into force on 1 July 2026. The legislation replaces the existing construction law regime and forms part of a broader governmental initiative to modernise the administrative process, reduce bureaucracy and facilitate more efficient project delivery.

The reforms demonstrate a shift in regulatory approach. Rather than relying on extensive upfront state approval processes, the new framework places greater emphasis on the responsibility of developers, contractors and consultants to ensure compliance, quality and risk management through a project’s lifecycle. This is likely to be an important consideration for international investors and parties involved in projects under FIDIC and NEC frameworks, particularly those operating in Vietnam’s construction market.

One of the key changes concerns the classification of construction investment projects. Under the previous regime, projects were categorised largely by reference to their funding source, which could create uncertainty where projects involved multiple sources of funding. Construction Law 2025 instead classifies projects according to their investment structure, including public investment projects, public-private partnerships and projects governed by Vietnam’s wider investment legislation. This approach is intended to reduce procedural overlap and provide greater clarity regarding applicable approval processes.

Construction Law 2025 further aims to streamline project approvals by reducing the scope of state appraisal. While certain large-scale projects and projects with significant public safety implications will continue to require regulatory review, construction authorities will focus on a narrower range of matters, including construction safety, fire prevention measures, compliance with technical standards and conformity with approved planning requirements. Issues already considered through other approval processes, such as investment policy and environmental matters, will no longer be subject to duplicate review by construction authorities.

Another notable reform is the removal of the requirement for authorities to appraise construction designs developed after the basic design stage. Responsibility for reviewing, controlling and approving detailed or technical designs now rests with the project investor. This change is expected to reduce delays associated with obtaining multiple regulatory approvals, while increasing the importance of effective design management and quality assurance procedures throughout project delivery.

The legislation also expands the circumstances in which construction permits are not required. Projects whose feasibility study reports have already undergone appraisal by the relevant authorities may now proceed without obtaining a separate construction permit. This reflects the government’s stated objective of minimising administrative duplication and reducing unnecessary barriers to construction activity.

In addition, Construction Law 2025 introduces a more transparent and commercially focused approach to assessing construction capability. The previous requirement for organisations to obtain competency certificates for certain construction activities has been removed. Instead, organisations will self-declare their capabilities through an online system administered by the Ministry of Construction, with compliance monitored through post-inspection oversight. While this reduces administrative burdens, it also increases accountability for contractors, consultants and other project participants.

These reforms are particularly relevant for users of FIDIC and NEC contracts. As governmental scrutiny is reduced, the contractual allocation of responsibility assumes greater importance. Parties can no longer assume that potential issues will be identified through multiple layers of regulatory review. Greater emphasis will therefore be placed on contractual mechanisms governing design responsibility, programme management, quality assurance, compliance obligations, risk allocation and change control.

Overall, Construction Law 2025 appears to move Vietnam towards a more streamlined and commercially driven construction framework. Although the reforms reduce regulatory intervention, they simultaneously place greater responsibility on project participants to manage compliance and project risk effectively. For international contractors, developers and investors, the changes offer the prospect of faster project delivery but also reinforce the importance of robust project governance and carefully drafted contractual arrangements. As Vietnam continues to attract substantial infrastructure and development investment, these reforms may prove to be a significant step towards aligning its construction regime with international project delivery practices.

Antony Smith and Bethany Turner

At Beale & Co, we advise on some of the most significant international construction, engineering and infrastructure projects, providing support across the full project lifecycle – from contract and project advisory services through to complex international arbitration proceedings and professional indemnity disputes. To discuss any of the issues raised in this article or to learn more about our international construction expertise and global capabilities, please contact your usual Beale & Co contact or visit our website here.