Hong Hac City Construction Permit: Issued Yet and the Legal Meaning Investors Need to Understand

The construction permit for Hồng Hạc City has been issued under reference number 214/GPXD by the Bắc Ninh Provincial Department of Construction on 28/11/2024, confirming that the development meets the technical, structural safety, fire safety and environmental requirements for lawful construction. In particular, this permit information has been officially published by Phú Mỹ Hưng on the development’s information portal, thereby ensuring transparency in accordance with its legal obligations to purchasers.

In legal terms, the construction permit is the 4th link in Hồng Hạc City’s 6-step legal process, following the 1:500 master plan and preceding the completion certification and issuance of pink books. More importantly, this is a legal document that must be publicly disclosed under Clause 3, Article 6 of the 2023 Law on Real Estate Business before off-plan property can be offered for sale, and therefore the existence of Construction Permit 214/GPXD provides a legal basis for directly protecting purchasers’ rights.

In addition, investors need to clearly understand the difference in risk between a development that has obtained a construction permit and one whose documentation is incomplete, particularly in the context of Bắc Ninh’s administrative boundary adjustments during 2024–2025. Furthermore, a valid construction permit is a prerequisite for major commercial banks to approve financing support for purchasers, thereby directly affecting investors’ financial capacity.

To understand more clearly the full content of the construction permit, its scope of application for each subdivision and the role of this document in investment decisions, the article below analyses each of the most important aspects in detail.

Has Hồng Hạc City Been Issued a Construction Permit?

Yes, Hồng Hạc City has been issued Construction Permit No. 214/GPXD by the Bắc Ninh Provincial Department of Construction on 28/11/2024, confirming that the development fully meets the technical standards, safety requirements and national construction regulations required for lawful construction.

Specifically, the issuance of Construction Permit No. 214 marks an important legal milestone in Hồng Hạc City’s development for 3 fundamental reasons. First, it demonstrates that the development has passed the entire stringent technical appraisal process conducted by the competent state authorities. Second, the construction permit is a mandatory condition for Phú Mỹ Hưng Development Corporation to commence construction of the structural shell and internal technical infrastructure. Third, the existence of a valid construction permit allows the development to proceed with the subsequent legal steps, including completion certification and the issuance of pink books for each property handed over.

Of particular note, this construction permit was issued after the Bắc Ninh Provincial People’s Committee approved total investment capital of VND 27,000 billion in September 2024, thereby creating a continuous and coordinated chain of legal confirmations from provincial to departmental level and ensuring consistency throughout the development’s documentation. According to information officially published by Phú Mỹ Hưng on the development information portal at phumyhung.vn, Document No. 1219/SXD-QLXD and Construction Permit No. 214 were both fully included in the information disclosure dossier before the property was offered for sale.

To understand more clearly the specific content of the permit and its scope of application for each subdivision, let us examine the details below.

What Does Hồng Hạc City Construction Permit No. 214/GPXD Cover?

Construction Permit No. 214/GPXD is a legal document in the technical documentation category, issued by the Bắc Ninh Provincial Department of Construction on 28/11/2024, confirming that Hồng Hạc City meets the requirements for technical design, structural safety, fire safety and environmental protection under Vietnamese construction regulations.

Specifically, a valid construction permit under the 2014 Construction Law (as amended in 2020) and its implementing decrees must contain all of the following:

• Information on permitted construction items: Type of structure, construction grade, maximum building area on each plot, and maximum height for each type of property (detached villa, semi-detached villa, shophouse and terraced house).
• Mandatory technical standards: Requirements for load-bearing structures, construction materials and technical systems (electricity, water, drainage and wastewater treatment).
• Fire safety conditions: The fire prevention and firefighting system design must have been appraised by the Fire Prevention and Fighting Police Authority before the permit is issued.
• Environmental impact assessment: Based on the approved environmental appraisal results dated 29/10/2019.
• Permit validity period: Clearly stating the deadline by which the developer must commence and complete construction in accordance with the committed schedule.

Furthermore, Construction Permit No. 214/GPXD has particular legal significance because it is the final document in the pre-construction phase, confirming that the development’s entire design dossier has undergone appraisal and received state approval. More importantly, only once this construction permit has been obtained may the developer lawfully issue sale and purchase agreements to customers for off-plan residential properties under Article 6 of the 2023 Law on Real Estate Business.

Which Subdivisions of Hồng Hạc City Does the Construction Permit Apply To?

There are currently 2 groups of subdivisions at Hồng Hạc City classified according to their construction permit status: those that have been issued full construction permits and those following the application process in line with the development schedule.

Specifically, Construction Permit No. 214/GPXD applies directly to the Hồng Phát subdivision, including Zone F1-1 (323 units launched in the initial phase) and Zone F1-2 (under development). Below is a summary table of the construction permit status for each subdivision of Hồng Hạc City (the table describes the construction permit status for each Zone, helping investors quickly identify which subdivisions have met the legal conditions for transactions):

Important note for investors: construction permits for large-scale urban development projects such as Hồng Hạc City (197.8 ha) are not issued for the entire area all at once. Instead, construction permits are issued according to each development phase and specific Zone. Therefore, when considering investment in a subdivision without a construction permit, investors should clearly confirm the developer’s licensing application roadmap in order to accurately assess the level of legal risk.

What Is the Legal Significance of a Construction Permit for Hồng Hạc City Investors?

The construction permit is the fourth link in Hồng Hạc City’s six-step legal process, serving as a bridge between the planning and construction stages, while also being a prerequisite for all subsequent legal steps, including completion certification and the issuance of ownership certificates, to proceed lawfully.

Specifically, the legal significance of the construction permit for Hồng Hạc City investors is reflected in 4 key aspects. First, the construction permit confirms that developer Phú Mỹ Hưng has completed all technical obligations before commencing construction. Second, it provides the legal basis for banks to approve mortgage support for buyers. Third, the construction permit provides grounds for claiming compensation if the developer builds contrary to the approved design. Fourth, including the construction permit in the information disclosure dossier is a mandatory legal obligation under the 2023 Law on Real Estate Business; failure to comply may result in the sale and purchase contract being deemed invalid.

In particular, construction permit No. 214/GPXD also carries additional distinctive value at Hồng Hạc City thanks to the independent oversight of its partner, Nomura Real Estate Vietnam. This is the first urban development project in Bắc Ninh to have a Japanese partner involved in jointly confirming its legal standards, therefore the reliability of the construction permit comes not only from Vietnamese state authorities but is also assessed according to international real estate practices.

To understand more clearly how the construction permit is disclosed in accordance with the law and its position within the overall legal process, let us examine each aspect in detail below.

Under the 2023 Law on Real Estate Business, How Must the Developer Disclose the Construction Permit?

Under Clause 3, Article 6 of the 2023 Law on Real Estate Business, the construction permit is one of the items of information that must be fully disclosed before off-plan property is offered for sale, together with the basic design, the commencement notice and documents certifying the acceptance of technical infrastructure.

Specifically, the obligations to disclose the construction permit under the 2023 Law on Real Estate Business include the following requirements:

• Disclose the permit number, issue date and issuing authority: The developer must clearly state construction permit No. 214/GPXD, issued by the Bắc Ninh Department of Construction on 28/11/2024.
• Disclose the applicable scope of the works: Clearly state which Zone/subdivision this construction permit applies to and which construction works are authorised.
• Publish it on the official information portal: Phú Mỹ Hưng has fulfilled this obligation at phumyhung.vn under the section “Disclosure of real estate information and data before offering it for sale”.
• Provide it to buyers upon request: Buyers have the right to request that the developer present a copy of the construction permit at any time during the transaction.

More importantly, the practical significance of the obligation to disclose the construction permit for investors is that it provides a legal basis for bringing a claim if the developer breaches the contract. If the project is sold without a construction permit in its disclosure dossier, the court may declare the sale and purchase contract invalid under Articles 117 and 123 of the 2015 Civil Code. Therefore, investors should check the project’s information disclosure dossier before signing the contract to ensure that the construction permit has been validly disclosed.

Which Link in Hồng Hạc City’s Legal Process Is the Construction Permit?

The construction permit is the fourth link in Hồng Hạc City’s six-step legal process, following the investment registration certificate, the transfer of shares and the 1/500 detailed plan, while preceding completion certification and the issuance of ownership certificates.

Specifically, below is Hồng Hạc City’s complete six-link legal process in chronological order (a table describing the project’s entire legal roadmap in chronological order, helping investors identify the current position of the construction permit within the overall legal framework):

Furthermore, investors’ correct understanding of the construction permit’s position as the fourth link has important practical significance: once the fourth link has been completed, this means that links 1, 2 and 3 have already been completed and that no legal obstacles are hindering the process. Conversely, if a project offers properties for sale before its construction permit has been issued, this means that the developer is breaching the conditions for trading in off-plan real estate under current law, thereby creating serious legal risks for buyers.

Additional note for investors conducting legal due diligence: a project missing any link in the six-step process above carries legal risks that cannot be remedied by commitments from the developer. Therefore, when comparing real estate projects in Bắc Ninh and the outskirts of Hà Nội, investors should cross-check the entire legal process rather than checking an individual ownership certificate only.

How Should Investors Distinguish the Risks Between Projects With and Without Construction Permits?

A project with a valid construction permit, such as Hồng Hạc City, offers significantly better access to bank finance and transaction legality, whereas a project without a construction permit restricts the buyer’s financial and legal rights as a whole, creating a considerable risk of capital loss over the long term.

However, many investors still do not fully recognise the seriousness of this difference when making a purchase decision. Below is a detailed analysis of 2 specific scenarios to help Hồng Hạc City investors better understand the true value of construction permit No. 214.

How Does a Valid Construction Permit Affect Mortgage Eligibility at Hồng Hạc City?

A valid construction permit is a prerequisite for a bank to approve the disbursement of a loan to purchase off-plan property, which is why Vietcombank, Vietinbank and BIDV have agreed to provide loans of up to 70% of the property value at Hồng Hạc City. Conversely, a project without a construction permit, or with a permit that does not cover the relevant works, will be refused by the bank during its assessment, meaning that buyers lose their most important financial leverage tool entirely. In particular, the 3 major state-owned banks confirmed financing for Hồng Hạc City only after conducting due diligence on the complete legal dossier, including construction permit 214/GPXD; this is the strongest practical evidence of the financial value of a valid construction permit.

Does the Administrative Boundary Merger in Bắc Ninh Affect the Validity of Hồng Hạc City’s Construction Permit?

No, the administrative boundary merger in Bắc Ninh does not affect the legal validity of construction permit No. 214/GPXD under the principle of administrative succession in Vietnamese law. Specifically, when an administrative unit changes its name or is merged, all legal documents issued by the predecessor authority remain valid and are inherited by the new administrative authority in accordance with the Law on Organisation of Local Government. More importantly, developer Phú Mỹ Hưng has officially confirmed that the construction permit, the ownership certificate roadmap and the project’s entire legal process have not been affected by any administrative boundary adjustments in Bắc Ninh during 2024-2025, therefore investors can be fully confident in the continuity and validity of Hồng Hạc City’s entire legal dossier.