The Ministry of Construction has issued a draft decree on the levels of fines for unlicensed construction work.

Works which are not unlicensed or violate construction laws would be fined 40-50% of the total value of illegal development. Illustration photo
According to the draft decree on fines on construction violations and real estate businesses, works which are not unlicensed or violate construction laws, would be allowed if their owners paid a fine worth 40-50% of the total value of illegal development.
However, the works must not affect the surrounding area, as long as the land ownership is undisputed.
However the draft decree has raised public concerns, as it would exacerbate the boom in unlicensed works, particularly from May 15 as the government would stop the pilot establishment of construction inspectors in communes, wards and towns in Hanoi and HCM City.
Le Dinh Tu, Director of Binh Dan Housing Company was cited by Phap Luat TP. HCM as saying that, “I can’t understand why the ministry is proposing fines as justification for the existence of construction violations”. He added that management agencies instead should consider the demolition of works based on planning factors.
Meanwhile, Le Huu Nghia, Director of Le Thanh Company said that the ministry’s proposal could be acceptable. “During the construction process, in many cases, some details of the work design have to be changed, leading to violations. However, investors need to be given a certain period of time for revisions to their license revision so that they don’t have to pay any fines. But, after that, if they still fail to do this, they will be fined.”
Hanoi has seen a sharp rise in the number of construction works violating regulations, particularly construction on agricultural land. According to the Ministry of Construction, up to 3,028 violations have been discovered following 16,233 inspections.




















