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Introduction

Vietnam's construction, architecture, and real estate sectors are poised for transformation with the implementation of Decree 35/2023/ND-CP dated 20/6/2023 (Decree 35). This Decree introduces a series of comprehensive changes aimed at streamlining administrative procedures, embracing technology, and enhancing efficiency in these vital industries. In this article, we delve into the key provisions of Decree 35 and their implications for the development of the construction, architecture, and real estate sectors in Vietnam.

Streamlining Administrative Procedures and Embracing Technology

One of the central themes of Decree 35 is the facilitation of digital transformation in the construction sector. To achieve this, the decree emphasizes decentralization, simplification of administrative procedures, business regulations, and the adoption of information technology. This focus on technological advancement is especially critical in the face of challenges posed by the COVID-19 pandemic. By embracing technology and streamlining administrative processes, the construction sector is better equipped to adapt to changing circumstances and maintain its momentum.

Delegating Authority

Decree 35 delegates authority to different levels of government for various tasks within the construction and real estate sectors. This decentralization empowers local authorities to take charge of evaluation processes, design approval, post-design construction supervision, and project inspections. Furthermore, provincial People's Committees now have the autonomy to make decisions regarding land use rights transfers and specific urban development areas. This decentralization of authority is expected to expedite decision-making and enhance local governance.

Removal of Certain Procedures

The decree eliminates several unnecessary procedures, further expediting project implementation. Notably, it removes the need for approval when changing project investors or adjusting project timelines. Additionally, the decree eliminates the requirement for approval from the Ministry of Construction for specific types of projects in restricted development areas and historic city centers. This simplification is designed to encourage investment and reduce bureaucracy.

Certification and Training

In line with the push for digital transformation, Decree 35 introduces changes in the certification of professional competence in construction activities. It facilitates online exams for professional certificates and extends the validity of examination results. Furthermore, it expands the authority for conducting competency exams to issue certificates for various levels of proficiency, fostering a more qualified workforce within the industry.

Consistency in Legal Frameworks

To ensure consistency within the industry, Decree 35 aligns various legal frameworks. Changes have been made to harmonize land use rights transfers with existing laws, and certain terms and conditions have been adjusted to match the legal framework regarding public properties. This harmonization is essential for creating a stable and reliable legal environment for investors and stakeholders in these sectors.

Addressing Practical Issues

The decree also addresses practical issues that have hindered the growth of the construction, architecture, and real estate sectors. It adjusts requirements for land use rights transfers, providing more flexibility for developers. Moreover, it clarifies conditions for renting or leasing residential properties, ensuring that these arrangements align with the latest legal standards.

Categorizing Construction Projects

Decree 35 introduces a clearer classification system for construction projects, making it easier for stakeholders to understand their obligations under the law. This categorization aids in the management of construction activities and ensures their alignment with relevant regulations.

Conclusion

Decree 35 represents a significant milestone in the transformation of Vietnam's construction, architecture, and real estate sectors. With its emphasis on streamlining administrative procedures, embracing technology, and empowering local authorities, this decree aims to boost efficiency and transparency in these vital industries. By removing unnecessary procedures, improving certification and training, and ensuring consistency in legal frameworks, Decree 35 sets the stage for a more dynamic and responsive construction sector. These changes are not only intended to foster technological advancement but also to simplify procedures, ultimately driving development in the construction, architecture, and real estate sectors in Vietnam. As the Vietnamese economy continues to grow, these reforms are poised to have a positive and lasting impact on these essential sectors.

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Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For legal advice, please contact our Partners.