Ho Chi Minh City Implements “Permit-Free Construction” Policy – Residents See Immediate Benefits

Following the Prime Minister’s directive to accelerate administrative reform in the construction sector, particularly the exemption of construction permits for projects with approved 1/500 detailed planning, Ho Chi Minh City has announced that 112 out of 365 housing projects are now eligible for permit exemption.

At present, Binh Phu Ward and Tam Thang Ward are the first two localities to pilot this initiative, helping residents reduce bureaucratic procedures, save time, and quickly settle into their homes.

Clear Benefits for Residents

In Binh Phu Ward, Mr. Ngo The Minh, one of the first homeowners to build without applying for a construction permit, expressed surprise not only at being exempted from the permit but also at how fast and simple the registration process was.

“Previously, it took more than 15 days to obtain approval. Now, within just three days, I received instructions, completed my documents, and got the result as promised,” he said.

Currently, Binh Phu Ward has 15 areas with approved 1/500 detailed planning, among which three areas qualify for permit exemption, covering 384 residential lots. This means homeowners only need to file a simple construction registration with valid documents instead of applying for a formal permit.

Mr. Doan Quang Luan – Vice Chairman of Binh Phu Ward People’s Committee – emphasized: “The process that used to take 18 days is now completed within three days. This reflects the government’s service responsibility, while also reminding residents that they have both rights and obligations to comply with construction laws.”

Plans for Expansion

Local authorities plan to expand the scope of this policy by the end of the year, aiming for 100% of eligible projects to be covered. Within the next 2–3 years, the ward expects that around 70% of housing construction and renovation works will not require permits.

To achieve this, Binh Phu is working with city departments to review 1/2000 master planning and further implement 1/500 detailed planning across more areas.

Dr. Su Ngoc Khuong – Senior Director of Investment at Savills Vietnam – commented: “This is a major reform that eliminates long-standing difficulties for citizens and businesses. It not only saves costs and time but also improves urban management efficiency.”

Will Permit Exemption Apply to Apartments and Villas?

A key question raised by the public is whether this policy applies only to individual houses or also extends to apartment buildings and villa communities.

According to the Law on Construction (2014, amended 2020), if a project is located within a 1/500 detailed planning area and its design has been reviewed and approved by competent authorities, it is eligible for permit exemption.

This means:

• Individual houses: Within approved 1/500 planning areas, only registration is required.

• Apartment complexes and villa developments: If the overall project has undergone design appraisal and approval, it may also qualify for permit exemption.

• Large-scale apartment projects: Typically subject to stricter requirements such as fire safety, environmental impact assessment, and infrastructure review. Exemption is possible only when all legal conditions are fully satisfied.

At present, the policy is prioritized for individual housing projects, but in the near future, apartment and villa projects may also benefit as planning and regulations become more comprehensive.

Initial Positive Outcomes

According to the HCMC Department of Construction, in the first seven months of this year, the city issued more than 2,600 construction permits, up 13% year-on-year. Administrative streamlining has shortened processing time, reduced unnecessary procedures, and saved significant costs for residents.

Looking ahead, if permit exemption is extended to apartments, villas, and new urban developments, it will not only benefit homeowners but also accelerate urban renewal, drive real estate growth, and push the city toward greater transparency and sustainability.

In summary, the “permit-free construction” policy currently focuses on individual housing projects, but in the near future, apartments and villas may also be included once regulatory and planning conditions are fully in place.