Reduce costs
Mr. Le Hung Tri (Nha Be district, Ho Chi Minh City) said that to be granted a construction permit for a 3-storey house, he had to prepare a set of documents including a construction permit application, construction design drawings, a copy of the red book proving land use rights...
To create the design drawings, he had to hire a design unit for 15 million VND. Due to his busy work, he assigned the construction permit application to the contractor, which cost him an additional 10 million VND.
After nearly a month, his house got a building permit and construction began. Therefore, when faced with the news that the building permit procedure would be abolished, Mr. Tri said it would save trouble and expense for the people.
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Abolishing housing construction permits will reduce hassle and costs for people. |
As a construction contractor with more than 20 years of experience in Ho Chi Minh City, Mr. Bui Duc Binh (District 7, Ho Chi Minh City) said that currently, applying for a construction permit takes at least 21 days, not to mention cases that require adjustments and supplements, which can extend the time to several months, even a year. Therefore, abolishing construction permits will bring many benefits to people, helping to save costs and time.
Mr. Hoang Kim Hoai - General Director of Phuc Dien Land - also said that the proposal to cut down on procedures related to construction permits will help reform administration and shorten time for people and businesses. Before 2013, this regulation was applied, so the exemption from construction permits should be implemented again.
For apartment projects, office buildings... Mr. Hoai said that if there is a detailed 1/500 plan, the requirement for a construction permit should be removed. Because the 1/500 plan already shows full information equivalent to a construction permit. The basic design and technical design steps have been undertaken by investors hired by specialized units. If the State wants to inspect, it only needs to hire a competent appraisal unit to do so, then let the investor construct in accordance with the approved plan.
“If administrative procedures such as construction permits and construction quality inspections are reduced, housing supply will improve, contributing to reducing housing prices. Currently, lengthy procedures increase investment costs, directly affecting selling prices,” said Mr. Hoai.
However, Mr. Hoai also suggested that the new regulation does not mean lax management. If people violate the construction registration content, they will still be handled according to current regulations on construction order.
Increase housing supply
Ms. Giang Huynh - Director of Research & S22M, Savills HCMC - affirmed that reforming construction licensing procedures is a positive move, especially for real estate development enterprises in the current context.
In reality, the process of obtaining a construction permit usually takes 3-6 months, or even longer if the project requires planning adjustments or approval from multiple authorities. Prolonged procedures not only affect the implementation progress but also increase financial costs, putting pressure on the capital flow and the ability to turn around the business.
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Shortening procedures will help businesses bring products to market at the right time and use resources more effectively. |
According to Ms. Giang Huynh, the proposal to exempt construction permits for projects that have detailed planning at 1/500 scale or are located in areas with approved urban design is a reasonable step. For these projects, technical indicators such as construction density, height, setbacks or infrastructure have been specifically determined, so it is possible to apply a construction registration mechanism instead of the traditional licensing process while still ensuring compliance and supervision.
“Shortening procedures will help businesses optimize operations, bring products to market at the right time and use resources more efficiently. Overall, this is a reform that can contribute to improving the investment environment and boosting supply for the real estate market,” said Ms. Giang Huynh.
However, Ms. Giang emphasized that this policy needs to be implemented simultaneously with a strict post-audit system. To ensure comprehensive effectiveness, it is necessary to promote digitalization, build a centralized data system to track progress, supervise construction quality and publicize inspection results.
At the same time, reforming construction procedures needs to be carried out in parallel with removing larger obstacles regarding land, planning and land use fee valuation - which are core bottlenecks for the development of current real estate projects.
Speaking at the conference to implement Resolution 201/2025 on piloting a number of specific policies and mechanisms for social housing development, Mr. Nguyen Van Duoc - Chairman of the Ho Chi Minh City People's Committee - said that Ho Chi Minh City is considering allowing people to register for construction instead of applying for permits in areas with clear planning.
Accordingly, Ho Chi Minh City is studying to reduce administrative procedures in the construction sector to facilitate people. In the near future, people in areas with clear planning, alley boundaries and specific regulations on housing architecture in the city's architectural management regulations will not need to apply for a construction permit as before. Instead, people only need to carry out construction registration procedures with local authorities. Ho Chi Minh City People's Committee has assigned the Department of Construction to advise and issue specific guidance documents in June 2025, to soon implement the policy.
The Prime Minister also directed to promote decentralization, giving local authorities the power to appraise and grant construction permits. Review the entire current process to shorten processing time and eliminate unnecessary intermediaries, especially for projects that have detailed plans or are located in areas with clear planning.
Source: https://tienphong.vn/bo-giay-phep-xay-dung-do-phien-post1748646.tpo
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