On 8 May 2012 the Ministry of Construction ("MOC") issued Circular 01/2012/TT-BXD ("Circular 01") providing guidelines on issuing foreign contractor permits and managing foreign contractors in the construction sector in Vietnam.
Circular 01 guides the implementation of Decision 87/2004/QD-TTg (19 May 2004), amended by Decision 03/2012/QD-TTg (16 January 2012) ("Decision 87"). Decision 87 regulates the management of foreign contractors conducting construction activities in Vietnam.
Circular 01 will come into force on 26 June 2012 and will replace Circular 05/2004/TT-BXD (15 September 2004).
Circular 01 introduces a number of new provisions, including changes that simplify and shorten the process of issuing contractor permits and clarifications of the requirements for establishing an operating office.
These and other salient parts of the new legislation will be discussed in this Legal Update.