ADMINISTRATIVE SANCTIONS FOR CONSTRUCTION ACTIVITIES IN VIETNAM WITHOUT A CONSTRUCTION PERMIT

January 17, 2026 | Guidelines, Setting up a company in Vietnam

According to the provisions of the current Vietnamese construction law, any construction work that is subject to a construction permit but is carried out without being granted such a permit constitutes a violation of the law. Clause 1, Article 89 of the Law on Construction 2014 (as amended and supplemented in 2020) clearly stipulates: “Construction works must have a construction permit issued by a competent state authority to the investor in accordance with this Law, except for cases specified in Clause 2 of this Article.” Accordingly, except for works exempted from permits under the list in Clause 2, Article 89 (for example: works classified as state secrets, minor repairs that do not alter the load-bearing structure, individual rural houses under 7 stories not located in urban planning areas, etc.), most construction activities require a construction permit. In case of violation, the violating individual or organization is not only subject to administrative sanctions but may also be forced to remedy the consequences (such as demolition of the violating works) as prescribed. The legal basis for these sanctions is primarily the Law on Construction (amended in 2020) and guiding decrees on administrative penalties in the construction sector, especially Decree No. 16/2022/NĐ-CP of the Government.

Pursuant to Decree No. 16/2022/NĐ-CP dated January 28, 2022 (effective as of the signing date), the act of “organizing the construction of works without a construction permit where such a permit is required by law” is specifically sanctioned under Clause 7, Article 16. Accordingly, the fine depends on the scale and type of the violating works. Clause 7, Article 16 of this Decree stipulates: a fine ranging from VND 60,000,000 to VND 80,000,000 for the construction of individual houses without a permit; from VND 80,000,000 to VND 100,000,000 for the construction of individual houses in conservation areas, historical–cultural relics, or other works without a permit; and from VND 120,000,000 to VND 140,000,000 for works that must have a feasibility study report or economic–technical construction investment report but are built without a permit. These sanctioning brackets apply to violators that are organizations (investors or construction contractors). Where the violator is an individual, the fine will be half of the above levels in accordance with the general provisions of Decree No. 16/2022/NĐ-CP. Specifically, Article 3 of the Decree stipulates: “The fines prescribed in this Decree are the levels applicable to organizations […] For the same violation, the fine imposed on individuals shall be one half of the fine imposed on organizations.” Accordingly, if an individual builds an unpermitted single-family house where the applicable fine for an organization is VND 60–80 million, then the individual violator will be fined VND 30–40 million.

It is noteworthy that Decree No. 16/2022/NĐ-CP categorizes fines according to the type of works and the nature of the project, rather than directly distinguishing between specific types of construction permits (new construction permits, repair permits, relocation permits, temporary permits, etc.). The Law on Construction enumerates types of permits including new construction permits, repair–renovation permits, relocation permits, and temporary construction permits. However, when sanctioning violations for unpermitted construction, the law does not prescribe separate fines for each of these permit categories. Instead, Decree No. 16/2022/NĐ-CP only sets sanctioning brackets based on the type of works. For example, whether a work is supposed to obtain a new construction permit or a repair/relocation permit, if it is subject to permit requirements but construction commences without approval, the same fine bracket applies. This means that the construction of an individual house (whether new or renovated) without a permit is still fined VND 60–80 million (for organizations); while large works requiring feasibility reports (such as high-rise buildings, industrial projects, major infrastructure) built without a permit are fined VND 120–140 million (for organizations). This shows that Decree No. 16/2022/NĐ-CP emphasizes the scale and impact of works rather than the differences between specific permit types in determining sanctions.

In addition to the monetary fines above, Decree No. 16/2022/NĐ-CP also provides for supplementary penalties and remedial measures for unpermitted construction. Specifically, besides being fined, the violating individual/organization may also be subject to the measure “Forced demolition of the violating construction works or parts thereof” if the violation has been completed. This is a compulsory measure to restore the original state of the land in accordance with regulations. Furthermore, if the works are built with a granted permit but constructed in deviation from the approved content, the permit may be revoked for 3 to 12 months depending on the nature of the violation (as stipulated in Clauses 12 and 13, Article 16 of Decree No. 16/2022/NĐ-CP). In contrast, in cases of construction without any permit at all, the violator is mainly subject to fines and demolition orders. It should be noted that the law also prescribes that if unpermitted construction continues after the competent authority has issued a written order to suspend construction, the fines will increase: up to VND 100–140 million for individual houses and up to VND 500 million for large-scale works for subsequent violations. However, since the scope of this discussion focuses on basic fines upon unpermitted commencement, these additional circumstances are only noted as supplementary references.

In conclusion, under the construction law in force in 2025, any organization or individual commencing construction works requiring a permit without having been granted such a permit will be subject to administrative sanctions. The fine is prescribed in Decree No. 16/2022/NĐ-CP, ranging from VND 60 million to VND 140 million (for organizations), depending on the type and scale of works. Individuals are fined at half of these levels. In addition, violators face remedial measures such as forced demolition of the unlawful works. These provisions are designed to ensure construction activities comply with planning and technical standards, while also serving as a deterrent to promptly prevent and address illegal construction activities.

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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