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Ministry to cut red tape for construction projects
Fees paid by developers constructing new residential buildings will be scrapped and developers will have more time before they must begin construction work after project approval, under a proposal from the Ministry of Construction.
The proposal, sent to the Prime Minister for consideration, aims to streamline administrative procedures for construction projects.
Including 14 key changes, the proposal calls for an extension of the period after project approval during which developers must begin work, from the current period of 12 months to 18 months.
After 18 months, if developers fail to begin work on the project, they will have to reapply for a construction permit instead of applying for an extension, as is the case under current regulations.
Tran Trong Huong, from the ministry's administrative reform project, said the current extension rule had led to project delays.
"Many people rely on this extension rule and don't adequately prepare before applying for a construction permit," said Huong.
"This has led to many projects being delayed and when they do begin work, actual conditions are different from the time when the permit was initially issued."
The scrapping of the construction fee is also a key change. Under current regulations, developers have to pay a construction fee that allows project owners to use public infrastructure and facilities for construction work. This fee ranges from 0.5 to 1 per cent of the total construction cost.
Hoang Tho Vinh, Deputy Head of the Ministry's Construction Management Department, said the fee was not applied equally across all localities.
"In some provinces, people don't have to pay it," said Vinh. "It is the right of people to use public facilities in the neighbourhood if they already pay taxes, so we don't think this fee is necessary anymore."
The proposal also calls for reducing the time it takes to issue a construction licence for rural housing, from 15 days to 10 days. Developers applying for approval will also have to submit two copies of their design plan.
"We want to clear up the requirements in this regard as some places require that three to four copies and unnecessary documents are submitted," said Vinh.
For residential housing projects or buildings that are erected between two existing buildings, developers are required to add a detailed construction design of their project that shows construction work will not affect the safety of neighbouring buildings. This follows several incidents where construction work has resulted in the collapse of neighbouring buildings.
The ministry also proposed that developers submit applications directly to an authorised office instead of mailing applications.
For construction projects at the district and ward levels, developers should make submissions to local urban management offices or local industry and trade offices.
Projects at the provincial level will need to be submitted to the construction department in the relevant provinces or cities.
vietnamnews
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