HANOI: Vietnam is poised to reform its construction permitting regime in a bid to streamline processes, lower costs, and revitalise investor confidence, as part of wider efforts to boost economic competitiveness.
Industry experts have long pointed to burdensome administrative procedures—particularly the complexity and duration of securing construction permits—as a key deterrent for both domestic and international investors. Prolonged approval timelines, overlapping regulations and inconsistent enforcement across provinces have not only delayed project execution but also elevated operational costs and eroded trust in the system.
The Ministry of Construction is now advancing a proposal to eliminate the permit requirement for projects that have already obtained detailed planning approval. The reform is intended to remove redundant checks, thereby accelerating development timelines and improving capital efficiency across the construction and real estate sectors.
Mai Huu Tin, chairman of the Binh Duong Provincial Business Federation, noted that businesses are currently required to seek official permissions even for minor developments, describing the process as increasingly onerous. Le Huu Nghia, director of social housing developer Le Thanh Co, highlighted the inefficiency of repeated verifications of planning compliance across multiple stages—from feasibility studies to construction permitting.
The issue extends well beyond housing. Trinh Tien Dung, general director of industrial builder Dai Dung Co, revealed that obtaining a factory construction licence within an industrial park can take up to 18 months—often longer than the build itself—resulting in heightened financial and operational risks.
Beyond delays, enterprises often face opaque approval criteria, administrative inconsistency between provinces, and non-transparent costs. Trang Bui, general director of property consultancy Cushman & Wakefield Vietnam, remarked that these procedural disparities frequently compel companies to refile documentation, make repeated amendments, and absorb unnecessary delays.
Eliminating the permit requirement could be transformative for the sector. Bui noted that such reform would allow developers to better manage project execution, reduce borrowing costs, and enhance capital allocation—all while maintaining regulatory compliance.
Nguyen Thi Bich Ngoc, chief executive of property firm Sen Vang Co, estimated that removing the permitting stage could cut project preparation time by three to six months and lower investment costs by as much as 5 per cent, largely through the reduction of administrative overheads and the avoidance of procedural delays. However, she also stressed the importance of businesses enhancing internal governance and quality control frameworks in lieu of external approvals.
Experts agree that the state’s role remains critical in ensuring the success of this transformation. Public access to planning data, the digitalisation of administrative processes, and the establishment of a centralised post-audit mechanism will be essential to uphold standards and safeguard public confidence.
Giang Huynh, director of research at Savills Ho Chi Minh City, underlined that procedural reform, supported by digital transparency and audit infrastructure, could significantly improve operational efficiency, accelerate time-to-market, and optimise resource use.
However, permit reform alone is unlikely to deliver systemic change. Stakeholders argue that longstanding challenges in land-use planning, valuation, and zoning regulation must also be addressed. These entrenched issues continue to hinder project development and constrain sectoral growth.
As Vietnam advances this reform agenda, the integration of regulatory simplification, digital transformation and legal modernisation is expected to catalyse economic activity and enhance transparency across the construction and real estate markets.
-Vietnam News
