The Prime Minister directive was outlined in a dispatch on May 29 on promoting substantive administrative reforms to reduce costs and time for individuals and enterprises.

Requiring a construction permit while detailed urban planning already exists wastes time and erodes people’s ownership rights over their land, experts have said.

The Ministry of Construction (MOC) has been tasked with simplifying 361 administrative procedures and 447 business conditions under its management. The goal is to cut at least 30 percent of processing time, compliance costs, and business conditions in 2025.

The ministry must also simplify construction permit procedures for projects with a detailed 1/500 plan or within areas with established urban designs. The current system of technical standards and regulations will be comprehensively reviewed to eliminate outdated rules that hinder investment. Key standards, especially in construction planning, must be updated promptly to ease pressure on investors.

The Prime Minister emphasized that despite previous government resolutions promoting administrative reforms, feedback indicates that construction procedures remain cumbersome, lengthy, and costly.

Therefore, he requested to continue to promote decentralization and delegate authority to local governments in appraisal and licensing work. 

At the same time, it is necessary to review current procedures, focusing on shortening processing time and eliminating unnecessary intermediate steps, especially for projects that have detailed planning or are located in clearly planned areas.

A notable change is the proposal to shift business condition management to a post-inspection model. Instead of requiring businesses to obtain certificates on capability, authorities would monitor compliance after businesses declare they have met conditions. This model is expected to reduce procedural burdens while encouraging businesses to operate more proactively and transparently.

Chairs of provincial and municipal People’s Committees must ensure effective implementation of delegated administrative procedures without disruptions during administrative unit reorganization. Localities are urged to streamline interconnected investment and construction procedures to save time and costs for citizens and businesses.

This directive is seen as a bold step to address procedural bottlenecks in construction, a major barrier to the recovery and development of the real estate market and infrastructure projects nationwide.

Under the 2014 Construction Law, the time for issuing construction permits varies by project type. For individual houses, permits are issued within 15 days from receiving a complete application; for other projects, the timeframe is 20 working days. The permit process involves four steps, with a maximum resolution time of 15 days.

Notify, not ask for permission

Architect Tran Ngoc Chinh, Chair of the Vietnam Urban Planning and Development Association and former Deputy Minister of Construction, said that PM’s directive to cut unnecessary procedures, particularly construction permits, is highly appropriate. It aligns with reform needs, streamlining administration and restructuring the system.

He said that abolishing construction permits eliminates the “ask-and-grant” mechanism. Requiring permits despite detailed urban planning wastes time and undermines people’s ownership of their land.

“Removing the need for construction permits simplifies processes like meetings and site inspections, shortens waiting times, and avoids difficulties caused by officials who lack understanding and repeatedly put difficulties for applicants,” Chinh said.

Urban planning includes general plans, zoning plans, and detailed plans. Detailed plans come in two types: 1/2000 and 1/500. According to Chinh, the 1/500 detailed plan is critical, specifying building height ratios, construction density, setbacks from sidewalks, and even whether basements are allowed (partial or full).

So, in areas with a 1/500 detailed plan, people should not need construction permits but must notify local authorities. Authorities are responsible for ensuring compliance with regulations.

Two tasks

Le Hoang Chau, Chair of the HCM City Real Estate Association (HoREA), noted that in 2018, HCM City piloted permit exemptions for individual houses in Tan Quy Ward, District 7, but it failed due to the lack of a 1/500 plan.

Therefore, to eliminate construction permits, Chau said, detailed 1/500 plans and corresponding urban designs must first be established.

The idea of abolishing construction permits is correct and welcomed by citizens, but the Ministry of Construction must develop criteria and standards to make it feasible. The state should fund the creation of 1/500 detailed plans by local construction departments. 

“To start, exempt permits for projects with approved 1/500 plans and vetted designs,” Chau told VietNamNet.

According to Chau, in developed countries, construction permits are not required. People can access land-specific planning information to know building parameters like height, density, setbacks, urban design, and even facade colors. As Vietnam moves toward smart governance, it should adopt this approach.

Hong Khanh