Eliminating building permits: Less hassle!

TPO - Eliminating the requirement for construction permits for individual houses will save people inconvenience and costs. For businesses, it will help optimize operations, bring products to market at the right time, and use resources more efficiently, contributing to improving the investment environment and boosting the supply of real estate.

Reduce costs

Mr. Le Hung Tri (Nha Be District, Ho Chi Minh City) said that to obtain a building permit for his 3-story house, he had to prepare a set of documents including an application for a building permit, construction design drawings, a copy of the land use right certificate, etc.

To get the design drawings, he had to hire a design firm, costing him 15 million VND. Due to his busy schedule, he also delegated the construction permit application to the contractor, which cost him an additional 10 million VND.

After nearly a month, his house received a building permit and construction began. Therefore, regarding the news about abolishing the building permit application procedure, Mr. Tri said it would save people a lot of trouble and expense.

Abolishing the requirement for building permits for residential properties would reduce inconvenience and costs for citizens.

As a construction contractor with over 20 years of experience in Ho Chi Minh City, Mr. Bui Duc Binh (District 7, HCMC) said that currently, obtaining a construction permit takes at least 21 days, not including cases requiring adjustments or additions, which can extend the time to several months or even a year. Therefore, abolishing construction permits would bring many benefits to people, helping to save costs and time.

Mr. Hoang Kim Hoai, General Director of Phuc Dien Land, also believes that the proposal to reduce procedures related to construction permits will help reform administration and shorten the time for citizens and businesses. Since this regulation was already in place before 2013, the exemption from construction permits should be reinstated.

Regarding apartment and office building projects, Mr. Hoai believes that if a detailed 1/500 scale plan is already available, the requirement for a construction permit should be waived. He argues that the 1/500 scale plan already contains all the necessary information, equivalent to a construction permit. The basic design and technical design phases are handled by specialized units hired by the investors. If the government wants to inspect, it only needs to hire a qualified verification unit, after which the investors can proceed with construction according to the approved plan.

"If administrative procedures such as construction permits and quality inspections are streamlined, the housing supply will improve, contributing to lower housing prices. Currently, lengthy procedures drive up investment costs, directly impacting selling prices," Mr. Hoai said.

However, Mr. Hoai also suggested that the new regulations do not mean a loosening of management. If people violate the content of their construction registration, they will still be dealt with according to the current regulations on construction order.

Increase housing supply

Ms. Giang Huynh - Director of Research & S22M Department, Savills Ho Chi Minh City - affirmed that reforming construction permit procedures is a positive step, especially for real estate development businesses in the current context.

In reality, the process of obtaining a construction permit often takes 3-6 months, or even longer if the project requires planning adjustments or consultations with multiple authorities. This lengthy procedure not only affects project progress but also increases financial costs, putting pressure on cash flow and the business's ability to recoup its investment.

Streamlining procedures will help businesses bring products to market on time and use resources more efficiently.

According to Ms. Giang Huynh, the proposal to exempt construction permits for projects that already have a detailed 1/500 scale plan or are located in areas with approved urban design is a reasonable step. For these projects, technical indicators such as building density, height, setbacks, and infrastructure have been specifically determined, so a construction registration mechanism can be applied instead of the traditional permit application process while still ensuring compliance and supervision.

“Shortening procedures will help businesses optimize operations, bring products to market on time, and use resources more efficiently. Overall, this is a reform that can contribute to improving the investment environment and boosting supply for the real estate market,” said Ms. Giang Huynh.

However, Ms. Giang emphasized that this policy needs to be implemented in conjunction with a rigorous post-inspection system. To ensure overall effectiveness, it is necessary to promote digitalization, build a centralized data system to track progress, monitor construction quality, and publicly disclose inspection results.

At the same time, reforms to construction procedures need to be implemented in parallel with addressing the more significant obstacles related to land, planning, and land use fee valuation – which are core bottlenecks to the development of real estate projects today.

Speaking at the conference to implement Resolution 201/2025 on piloting some specific mechanisms and policies for the development of social housing, Mr. Nguyen Van Duoc - Chairman of the People's Committee of Ho Chi Minh City - said that Ho Chi Minh City is considering allowing people to register for construction instead of applying for permits in areas with clear planning.

Accordingly, Ho Chi Minh City is studying ways to reduce administrative procedures in the construction sector to facilitate citizens. In the near future, residents in areas with clear planning, defined alleyway boundaries, and specific regulations on housing architecture in the city's architectural management regulations will no longer need to apply for construction permits. Instead, they will only need to register their construction with the local authorities. The Ho Chi Minh City People's Committee has assigned the Department of Construction to advise on and issue specific guidance documents by June 2025, to promptly implement the policy.

In a directive dated May 29th, the Prime Minister requested the Ministry of Construction to streamline construction permit procedures for projects that already have detailed 1/500 scale planning or are located in areas with urban design plans. At the same time, the Prime Minister requested a review and simplification of 361 administrative procedures and 447 business conditions in the construction sector. The goal is to reduce processing time, compliance costs, and business conditions by at least 30% in 2025.

The Prime Minister also directed the acceleration of decentralization, empowering local authorities in the appraisal and licensing of construction projects. He called for a comprehensive review of current procedures to shorten processing times and eliminate unnecessary intermediate steps, especially for projects with detailed planning or those located in areas with clear planning.

Duy Quang

Source: https://tienphong.vn/bo-giay-phep-xay-dung-do-phien-post1748646.tpo