Speaker Introduction

Li Xuhui is the General Manager of Sheng Yu Engineering . He has been involved in public works in Taiwan for fifteen years, and since 2007, he has been in Vietnam for seventeen years, participating in industrial park development and over a hundred new industrial plant construction projects. He specializes in using a "legal pathway + construction milestones + document management" approach to streamline procedures such as investment licenses, environmental impact assessments, fire safety, building permits, supervision, and occupancy permits, assisting foreign companies in achieving both efficiency and compliance when establishing factories in Vietnam, and successfully establishing an ASEAN operational base.

Only official seals and stamps count: the first principle of Vietnamese law.

When investing and building a factory in Vietnam, the most important thing is that " it only counts if it's signed and stamped ."

Vietnam is a "council system" country, where all government documents must be signed and sealed to have legal effect. Verbal promises are not binding , whether for tax, customs, or factory construction.

Li Xuhui began by reminding everyone: "Don't believe verbal promises; without documents, there is no consensus."

He suggested that companies should list all required documents, signing units, and timelines for each step as standard operating procedures (SOPs) from the early stages of factory construction, so that the entire project can proceed on schedule and avoid wasting time on supplementary documents and communication.

The order of priority for obtaining an investment license is: land acquisition first, then company incorporation.

Most foreign investors are accustomed to "establishing a company first, then signing a contract to buy land," but in Vietnam, it's the opposite. Land or factory space must be secured before an investment license can be applied for. This means that companies need to sign a memorandum of understanding (MOU) or draft agreement with an industrial park and pay a deposit before they can use this document to apply for an investment license from the government.

The investment license includes:

Li Xuhui pointed out that these details directly affect the environmental impact assessment level, the fire safety review unit, and the subsequent acceptance process, and are key factors in the length of time it takes to build a factory.

He cautioned, " Any adjustments must be processed in advance. Don't wait until problems occur to make changes . The Vietnamese government looks at the documents, not explanations afterward."

Environmental impact assessments are a time black hole; the differences between different levels are significant.

In Vietnam, the environmental impact assessment (EIA) review agencies vary depending on the investment scale and industry, and are divided into four levels: central, provincial, district, or commune.

The higher the level of the review process, the more complicated it becomes, requiring the formation of an expert committee, on-site sampling , and multiple rounds of meetings, which also increases the time and cost. Li Xuhui reminds investors that the "industry classification" and "capacity setting" in the investment plan will directly determine which level of review you fall into, so "what you write in the plan determines the timeline ."

He joked, "Choosing the wrong level is like running the wrong track, turning a 10-kilometer race into a marathon."

Master planning and fire protection design: One change to the drawings, and the whole thing has to be resubmitted.

The Vietnamese government requires a "master plan review" to be completed before construction begins, ensuring that the building layout, electricity, drainage, sewage and communication systems comply with regulations; at the same time, a "fire protection design review" is also required, which can be carried out in parallel with the feasibility study report (FS report).

However, the two are interconnected— if the architectural plans are altered, the fire protection design must be resubmitted for review .

Li Xuhui emphasized: "There are no small matters when it comes to revising images."

For example, if the factory structure, external wall openings, or refuge routes are slightly adjusted, the fire protection system capacity, duct configuration, and smoke control zones all need to be recalculated, and a single revision could delay the review period by two months.

He suggested, " Finalizing the drawings before submission is the only time-saving approach. "

A building permit is a license to proceed with construction; don't gamble in the gray areas.

In theory, construction can only officially begin after obtaining a "building permit." However, in practice, many manufacturers secretly begin foundation work, perimeter fencing, or underground construction while waiting for the permit. Li Xuhui admitted that such "gray area operations" do exist, but the risks are extremely high. Once reported, the fines and losses from work stoppages often far exceed expectations.

He advised companies to take the date of building permit issuance as the starting point for formal construction to avoid long-term delays caused by taking chances.

Fire safety and inspection: Compliance is not just a document, it's action.

During the construction period, the fire department will conduct random inspections to check the configuration of fire extinguishers, escape signs, temporary fire-fighting equipment, and personnel training on site.

Meanwhile, the Industrial Park Authority will also check whether construction is carried out according to the building plans. Li Xuhui pointed out that fire drills are not just paperwork, but an important basis for acceptance. "Even night shift workers must participate in the drills, and the sign-in sheets, photos, and videos must be archived to pass the inspection smoothly." Vietnam values "traceable records," which is one of the details that foreign companies often overlook.

Change management: One drawing changed, the whole plan has to be redone.

During construction, any additions or reductions to room layouts, changes to walls, or adjustments to the building's exterior are considered major alterations and require simultaneous processing of the building permit amendment procedure. If these documents are submitted only after completion, the "Occupancy Permit" will not be issued.

"A common situation is that the factory building is completed, but it gets stuck on the occupancy permit because the site doesn't match the drawings." He reminded, " Any changes must be submitted for approval at the same time, and the earlier you submit them, the less trouble you'll have. " In addition, if it is a renovation of an old factory, it needs to be reviewed again according to current regulations . Even if it is just adding a few cubicles, you may be required to supplement the latest smoke prevention, smoke exhaust and fire protection system specifications. This is one of the key reasons why many owners exceed their budgets.

Key aspects of acceptance: joint inspection by third-party supervisor and both Party A and Party B.

Vietnamese regulations require that factory construction projects be supervised throughout the entire process by a qualified third-party supervision unit . The government will only accept the final acceptance application after the client (investor) and contractor have completed the acceptance and obtained the supervision unit's seal.

The acceptance process is usually as follows:

1. Both parties have completed the acceptance inspection.
2. Fire department on-site inspection
3. Fire safety compliance document
4. The Administration Bureau reviews the as-built drawings and documents.
5. Issuance of operating license

If all goes smoothly, fire safety inspection and occupancy permit issuance can be completed within approximately two months; however, if the case requires central government review, the process may take four to six months. Li Xuhui cautions, " The government will not accept documents without the supervisor's signature. " Therefore, the supervisor's fees and document deadlines should be clearly stipulated during the contract signing stage to avoid delays caused by minor disputes.

Document management is project management.

The process of setting up a factory in Vietnam is lengthy and involves many departments, but it is not without rules. Li Xuhui describes this entire process as a " stamping metronome ":

Investment license → Business license → Environmental impact assessment → Site plan review → Fire protection design → Feasibility report → Building permit → Construction → Acceptance → Occupation license. As long as each stage has complete documentation and clear milestones, the overall construction schedule will naturally proceed smoothly.

He suggested that companies should include a list of documents, responsible persons, estimated number of days, and risk filing for each review stage in the project plan, so that the official seal becomes a rhythm for progress control, rather than a burden.

Regional differences and networking: processes are the common language, details are the local dialect.

About 90% of Vietnam's provinces follow the same rules, but about 10% still have local regulations. For example, some provinces require additional fire simulation reports or additional tax certificates, details that are often not included in the central regulations. "The same phrase 'come back with complete documents' might mean five documents in province A, but eight in province B," Li Xuhui advised. He suggested that foreign businesses establish "local liaison scripts" to ensure information alignment between local governments and consultants, reducing the need for repeated supplementary documents.

Three red lines that must not be crossed

1. Construction without a building permit : fines will be imposed if reported, and the losses from halting construction will be enormous.
2. If the drawings do not match, supplementary documents are often required : acceptance testing usually requires resubmission, doubling the time required.
3. Changes not submitted simultaneously : Even minor alterations can affect fire protection and mechanical and electrical systems.

He laughed and said, "In Vietnam, there are no minor changes, only the risk of not filing for record." This statement perfectly encapsulates the real challenges of foreign investment in factory construction.

From documents to production: A true turnkey solution

"Turnkey move-in" doesn't mean omitting procedures, but rather optimizing the process to its shortest path . From prior document preparation, simultaneous design, construction planning, training, to acceptance checks, if everything is done according to regulations, timelines can be predicted and costs can be controlled. Li Xuhui concluded, " Consistency between legal documents and the actual site is the key to success. When your stamping and approval processes are on point, the new factory will naturally be all set."

The challenges of building a factory in Vietnam lie not in steel and cement, but in documentation and workflow. When companies can treat "investment license—environmental impact assessment—fire safety—building permit—supervision—acceptance—occupational permit" as a traceable production line, "turnkey" becomes more than just a slogan; it becomes a tangible result of following the established procedures. Prioritizing documentation and ensuring compliance translates to speed—this is the core wisdom of Li Xuhui, General Manager of Sheng Yu Engineering, accumulated over seventeen years of experience .

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