Question: The Ministry of Construction issued a construction operation permit to a foreign contractor for Metro Line 1. Now that the project has been completed, they wish to close the project office in Vietnam. Could you please advise on the procedure to carry out this process?
Answer:
A foreign contractor operating in Vietnam under a construction permit issued by the Ministry of Construction must comply with legal procedures when finalizing the contract and closing the project office. Below is a detailed guide on the required obligations and procedures.
1. Obligations of the Foreign Contractor Upon Project Completion
According to Point l, Clause 2, Article 119 of Decree No. 175/2024/NĐ-CP, a foreign contractor has the following obligations:
- Prepare the project completion dossier and be responsible for the project warranty as per the contract.
- Settle accounts for imported materials and equipment and handle surplus materials and equipment in accordance with import-export regulations.
- Re-export construction materials and equipment that were registered under the temporary import – re-export regime.
- Finalize the contract with the project owner.
- Notify the relevant state management authorities of the contract completion and the closure of the project management office using Form No. 09, Appendix III of Decree No. 175/2024/NĐ-CP.
2. Notification to Relevant Authorities
A foreign contractor must submit a termination notice to the following authorities:
2.1. Ministry of Construction or Department of Construction
- Content:Completion of the construction contract and project acceptance.
- Method:Submission via official letter or online system.
(Point l, Clause 2, Article 119 of Decree No. 175/2024/NĐ-CP)
2.2. Local Tax Department
- Content:Completion of tax finalization and submission of financial reports.
- Method:Submission in paper form or online.
(Point e, Clause 2, Article 39 of the 2019 Law on Tax Administration)
2.3. Department of Labor, Invalids & Social Affairs
- Content:Report on the employment of foreign workers (if applicable).
- Method:Submission via official letter or online.
(Article 156 of the 2019 Labor Code)
2.4. Customs Department (if imported equipment is involved)
- Content:Confirmation of completion of import tax obligations.
- Method:Submission via official letter or electronically.
See more: Foreign Investment
