Ho Chi Minh City proposes allowing some unauthorized buildings to remain under conditions

Ho Chi Minh City has proposed a draft resolution for long-stalled projects that would allow some buildings, or parts of buildings, that violate construction regulations to remain if they meet certain conditions. The draft applies to long-standing buildings and projects that arose before October 1. Allowing them to remain would not legitimize earlier violations: the organizations and individuals involved would still face legal action, while project owners would have to fulfill their financial obligations, remedy the consequences and complete construction procedures.

Real estate in central Ho Chi Minh City near the Saigon River, August 2026.（VietVance）

To be considered for retention, a building must stand on land with lawful use rights and comply with approved construction plans. It must not encroach on building setback lines, technical infrastructure protection zones or traffic safety corridors. It must also meet structural safety, fire prevention and rescue requirements, pose no risk to neighboring buildings and be free of disputes. Eligible buildings include those completed and put into use, as well as those where construction has stopped because of a penalty decision, inspection findings, a court judgment or certain objective circumstances.

After paying administrative fines, surrendering unlawful gains and obtaining a building quality inspection result, owners may seek confirmation that their projects comply with planning and architectural requirements, obtain or amend construction permits and design documents, and apply for building ownership certificates under the regulations. Work on suspended projects may resume the relevant investment, construction and permit procedures. Portions that do not meet planning or safety requirements must still be handled under construction law.

The draft sets the amount to be surrendered at 50% of the value corresponding to the unauthorized floor area. For commercial buildings, the calculation uses the price per square meter in a signed sale or transfer contract; for noncommercial buildings, it uses the unit construction cost in an approved budget. If there is no contract or approved budget, the calculation uses the per-square-meter investment cost published by the competent authority for buildings of the same type and grade. The contract price or budgeted cost cannot be lower than that investment cost. Current rules mainly allow authorities to consider retaining buildings with violations committed from January 4, 2008, to before January 15, 2018. The draft would expand the scope.

Source: VietVance