On 20 June 2023, the Government issued Decree No. 35/2023/ND-CP amending and supplementing a number of articles of decrees in the field of state management of the Ministry of Construction. This Decree takes effect from the date of issuance with some notable contents as follows:

1. Amending the procedures for selecting investors in commercial housing construction projects as follows:

1. Investors are eligible to be an investor in commercial housing construction projects under the Law on Housing 2014 and the law on real estate trading, winning of bids, or auction of rights to use land used for housing construction projects or being granted investor approval according to regulations on the selection of an investor to implement an investment project. Such investors may become owners of commercial housing construction projects.
2. Investors who hold land-use rights according to regulations on the types of land use to conduct projects for commercial housing projects under the Law on Housing 2014 are eligible to become an investor in a commercial housing construction project under the law on real estate trading and relevant laws and are granted investment guideline approval and investor approval. Such investors may become owners of commercial housing construction projects.

2. Adding authority to issue construction permits:

2.1. The authority to issue, adjust, renew, reissue, and revoke construction permits under the Law on Construction 2014 is as follows:

1. Provincial People’s Committees: Issues construction permits for construction to the requirement for issuance of construction permits in the province;
2. District People’s Committees: Issues construction permits for grade III, grade IV construction and separate houses.
3. The competent agency that issues construction permits is the competent agency that adjusts, extends, re-issues, and revokes construction permits granted by the competent agency;
4. If the competent agency fails to revoke the improperly issued construction permit, the provincial People’s Committee shall directly decide to revoke the construction permit.

2.2. Authority to issue construction permits in some cases:

1. For projects with many construction parts with different types and grades of construction: The competence to issue construction permits is determined according to the construction with the highest grade in the project;
2. If the construction design is adjusted, or the repair or renovation of construction results in a change in the grade of the construction, the authority to issue a construction permit shall be determined according to the grade of the construction after the adjustment in design or repair or renovation of the construction.

3. Reduce construction contract advance as follows:

1. The advance payment must not exceed 30% of the contract value at the time of signing (including provisions, if any); if a higher advance is required, permission shall be obtained from investment decision-makers.
2. Regarding projects in which decisions on investment are made by the Prime Minister, the decision on the higher amount of advance payment may be made by Ministers, Heads of ministerial agencies, or Chairpersons of provincial People’s Committees.