This is article 12/13 in INDUSVINA’s series on the Vietnam Construction Law 2014 – amended 2020, focusing on inspection, supervision and handling of violations in construction activities.

0. Recommended reading first

To see the big picture before diving into inspection and penalties, we recommend that you read:

• The overview article summarising the main contents of the Construction Law 2014 – amended 2020.
• Other articles in this 13-part series, especially:
  • Planning and zoning.
  • Construction permits.
  • Project management, quality management, acceptance – handover – warranty – maintenance.

The key legal framework includes the Construction Law 2014, Law No. 62/2020/QH14 amending the Construction Law, Decree 16/2022/NĐ-CP on administrative sanctions in construction, the Law on Inspection and the Law on Handling Administrative Violations.

1. Where inspection & supervision sit in construction management

Inspection and supervision are not a “side function”; they are a core part of state management over construction investment. The Construction Law assigns the Government, the Ministry of Construction and People’s Committees at all levels the duty to guide, inspect, conduct specialised inspections, settle complaints and denunciations, and handle violations in construction activities.

2. The system of construction inspection bodies

2.1. Central level

• Government Inspectorate and its regional/sectoral inspectorates – including units specialising in construction – inspect compliance with construction-related laws nationwide.
• Ministry of Construction and its Inspectorate organise specialised inspections for major and complex projects: planning, permits, quality management, capacity of project participants and so on.

2.2. Local level

• Provincial Inspectorate: assists the Provincial People’s Committee in managing inspection, settling complaints and denunciations and combatting corruption, including in construction.
• Department of Construction & its Inspectorate: carries out specialised inspections on planning, permits, quality management, construction order, contractors’ competence, etc.
• District and commune People’s Committees, urban-order inspection teams: receive reports from citizens, check the actual situation on site and coordinate in handling violations.

Depending on the project scale and nature, a construction project may “meet” different bodies: from the Government Inspectorate and Ministry of Construction to the Department of Construction, Urban Management Division and ward/commune authorities.

3. What is inspected in construction?

3.1. Legal conditions of the project and works

• Is there a valid decision on investment policy and investment decision made by the right authority, following the proper process?
• Have design dossiers been appraised and approved in compliance with applicable standards and technical regulations?
• Does the work have the correct type of construction permit (or fall into the exempted group) but is still built without or contrary to the permit?

3.2. Competence of project participants

• Do the investor, contractors and consultants satisfy statutory conditions on capacity and practising certificates?
• Have capacity information and licences been publicly disclosed and updated on the portals of the Ministry/Department of Construction?

3.3. Construction process on site

• Is construction carried out in line with the permit and approved design?
• Are materials, components and equipment accompanied by certificates, test reports and complete quality dossiers?
• Are occupational safety and environmental protection measures implemented properly (safety nets, guardrails, anti-collapse measures, fall protection, etc.)?

3.4. Acceptance, handover, warranty and maintenance

• Are acceptance records for each stage and for completion adequate and in the proper format?
• For works subject to specialised agencies’ acceptance checks: is there a written approval of acceptance for putting the work into use?
• Are warranty and maintenance regimes established and implemented as required?

3.5. Compliance with sanctioning decisions

• Has the investor/contractor fully paid the fine?
• Have violating parts of the work been demolished, and has the previous condition been restored?
• If not, has a coercive demolition and enforcement plan been made and implemented?

4. Sanctions: from monetary fines to demolition

Sanctioning frameworks are mainly found in Decree 16/2022/NĐ-CP on administrative sanctions in construction, built on the Law on Handling Administrative Violations.

4.1. Main sanction forms

• Warning – for minor, low-impact violations.
• Monetary fine – the most common form.
• Remedial measures: restoring the original status; rectifying the work to match the permit (cutting off unlawful storeys, areas…); demolishing all or part of works without permit, with wrong permit or contrary to planning; surrendering illicit gains from violations.
• Supplementary measures: revocation of construction permits or practising certificates; suspension of construction; transferring the case to criminal investigation where serious consequences arise (deaths, major collapses, etc.).

4.2. Typical penalty ranges

• Building without a construction permit where a permit is required:
  • Detached houses: fines commonly range around 60–80 million VND.
  • Other works or those in special protection zones: fines can exceed 100 million VND.
• Building contrary to the permit: for detached houses, about 30–40 million VND; for larger works, significantly higher.
• Building contrary to approved planning, encroaching on public land or neighbouring land: fines can reach several hundred million VND, together with mandatory demolition of violating parts.
• For serious, large-scale violations by organisations, total fines can be hundreds of millions up to roughly 1 billion VND, depending on the act and consequence.

5. A typical process: from detecting a violation to demolition

1. Detection Violations are discovered during routine or ad-hoc inspections, or through complaints and reports from citizens or the media.
2. Drawing up an administrative-violation record Inspectors document the current situation and describe the violation (no permit, wrong permit, extra storeys, boundary encroachment, etc.), then deliver the record to involved parties.
3. Issuing a sanctioning decision The competent authority determines the fine and remedial measures: suspension of construction, permit adjustment, demolition of violating parts, etc.
4. Voluntary compliance period The investor is granted a time limit to pay the fine, complete legal procedures and carry out demolition where required. If they comply, the case is closed.
5. Enforcement in case of non-compliance For persistent non-compliance, authorities prepare an enforcement plan, organise forced demolition and collect both the fine and enforcement costs.
6. Liability of public officials If widespread, prolonged violations are tolerated without action, responsible officials and leaders may themselves be disciplined or even prosecuted for negligence or corruption.

6. Practical lessons for investors, contractors and consultants

• Place legality before schedule Complete planning approvals, investment decisions, design appraisal, permitting and other requirements before starting construction. “Better be a little late than be forced to tear everything down.”
• Build internal self-inspection as a habit Turn legal and quality reviews into regular “internal audits”, aligned with INDUSVINA’s discipline – responsibility – connection culture.
• Behave properly during inspections Cooperate, provide documents and explain honestly; avoid any attempt at bribery or “arrangements”, which often turn a small problem into a legal disaster.
• Have legal advisors on board For medium- to large-scale projects, engage construction-law professionals to review contracts, dossiers and support during disputes or inspections.

7. A clear trend: less “pre-control”, more “post-control”

Recent reforms in investment and construction law show a clear tendency to:

• Reduce procedures and “sub-permits” at the initial stage.
• Strengthen post-inspection and impose tougher sanctions on violations.

In practice, this means: businesses have more flexibility at the start, but if they deliberately cut corners, ignore planning or safety and quality, they will be punished more quickly and more severely.

INDUSVINA chooses to “live with post-control” through internal discipline, technical excellence and transparent documentation – not through relationships or legal loopholes.

8. Closing message – Living and working in accordance with the law

This 13-article series on the Vietnam Construction Law from INDUSVINA is not intended to replace specialised legal advice. Instead, it is a practical, easy-to-read reference for engineers, architects, contractors, investors and students in the construction sector.

Our final goal is simple: every project should be safer, more durable, more beautiful and legally compliant.