DECREE

BUILDING MATERIAL MANAGEMENT

The Government’s Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from May 26, 2016, is amended by:

1. The Government’s Decree No. 100/2018/ND-CP dated July 16, 2018 amending and annulling some regulations on necessary business conditions in fields under the management of the Ministry of Construction, which comes into force from September 15, 2018;

2. The Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020;

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Minerals dated November 17, 2010;

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Pursuant to the Law on Environmental Protection dated June 23, 2014;

Pursuant to the Law on Planning dated November 24, 2017;

Pursuant to the Law amendments to some Articles concerning planning of 37 laws dated November 20, 2018;

Pursuant to the Law on Technology Transfer dated June 19, 2017;

At the request of the Minister of Construction,1

The Government hereby promulgates a Decree on building material construction.

Chapter I

GENERAL

Article 1. Scope2

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Article 2. Regulated entities

This Decree applies to regulatory authorities, organizations and individuals operating in the building material sector within the territory of Vietnam.

Article 3. Definition

For the purposes of this Decree, the terms below shall be construed as follows:

1. “building material” refers to an organic or inorganic product used to construct a building, except for electrical and technological equipment.

23. “main building materials” include building materials, including cement and tiling materials (ceramic, granite, cotto, artificial stone facing slabs, natural stone facing slabs), sanitary ceramics, construction glass, lime and fire-resistant materials.

3. “tiling material” refers to a material used to tile construction works.

4. “sanitary ceramic” refers to a ceramic product installed in sanitary works, laboratories and other specialized facilities.

5. “mineral- and energy-saving and environment-friendly building materials” (hereinafter referred to as “environment-friendly building materials”) include unbaked building materials, building materials produced by using waste as raw materials or fuels, and building materials that are far more energy-saving than other materials of the same type.

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7. “minerals used as common building materials” include those specified in Clause 1 Article 64 of the Law on Minerals.

Article 4. State management of building materials

1. Contents of state management of building materials:

a) Promulgating and providing guidance on the implementation of legislative documents on building materials; regulations on encouraging or restricting investment, production, trading in, use, import and export of building materials and minerals used as building materials;

b5) Organizing formulation, appraisal, approval and management of the implementation of the planning for exploration, mining, processing and use of minerals used as building materials;

c) Promulgating national technical regulations on products and goods that are building materials;

d) Managing quality of products and goods of building materials;

dd) Appraising and assessing building material production technology and quality; technology for processing and quality of minerals used as building materials;

e) Carrying out inspections and imposing penalties for violations against regulations on building materials.

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a) The Government shall unify management of building material-related activities;

a) The Government shall be responsible to the Government for unifying management of activities in the building material sector;

c) Other ministries shall, within their jurisdiction, cooperate with the Ministry of Construction in performing state management of activities in the building material sector;

d) People’s Committees of provinces and central-affiliated cities (hereinafter referred to as “provincial People’s Committees”) shall perform state management of activities in the building material sector within their provinces.

Chapter II6 (abolished)

Chapter III

PRODUCTION OF BUILDING MATERIALS

Article 29. Requirements applied to building material production projects

17. Building material production projects must conform to planning in accordance with regulations of law on planning and comply with regulations of law on construction.

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3. Regarding main building material production projects, opinions of the Ministry of Construction must be obtained before the investment guidelines are submitted to a competent authority for decision.

Article 30. Processing and export of minerals used as building materials

1. The processing of minerals used as building materials shall comply with regulations of law on minerals, environment, labor and other relevant regulations of law.

2. Every mineral processing facility should have personnel who have been trained and sufficiently competent to operate technological equipment and control product quality; employ with advanced technologies and equipment relevant to characteristics of each type of mineral to increase the processed mineral product recovery coefficient at the maximum and ensure emission standards specified in standards and regulations on environment are met.

3. The Ministry of Construction shall provide guidance on level of deep processing and export of minerals used as building materials.

Article 31. Rights and obligations of building material producers

1. Every building material producer has the right to:

a) select technologies for mineral processing and production of building materials in accordance with regulations of law;

b) select and issue standards for quality of building materials they produce;

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2. Every building material producer has the obligation to:

a) announce standards applied and submit declarations of conformity of building material products subject to declaration of conformity and take responsibility for quality of products they produce;

b) correctly and sufficiently comply with contents of the investment approval decision;

c) correctly and sufficiently comply with contents specified in the environmental impact assessment report, requirements specified in the decision on approval of the environmental impact assessment report or contents specified in the commitment to environment protection and other regulations of law on minerals and environment protection;

d) sufficiently provide information and instructions on use, transportation and storage of building materials;

dd) suspend production and take remedial measures if it is found that building material products fail to meet quality standards and are likely to cause damage to traders and users; pay compensation for damage caused by use of such products;

e) comply with regulations on inspection and periodic or ad hoc reporting promulgated by competent agencies;

g) sufficiently provide information on production, product quality and environment quality to competent agencies in accordance with regulations of law.

Article 32. Regulations on use of white asbestos from serpentine family for production of building materials

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a) Only use asbestos of clear origins for production of building materials;

b) Ensure that the concentration of asbestos in the production area does not exceed 0.1 fibers/ml and 0.5 fibers/ml of air as an eight-hour time-weighted average and one-hour time-weighted average respectively;

c) Avoid braking of asbestos packages during their transport;

d) Do not use asbestos as stuffing, choking and insulation materials in construction works when they are not mixed with binders to avoid dispersion of asbestos fibers into the air;

dd) Formulate plans for treatment of scrap, materials, dust and wastewater generated from production for reuse purpose or safely treat them in accordance with regulations;

e) Comply with the approved investment guidelines, environmental impact assessment reports and regulations on occupational safety and environment protection;

g) Conduct monitoring of water and air in production facilities every three months;

h) Provide personal protective equipment to employees directly involved in production;

i) Make sure every employee has periodic health checkups in accordance with regulations of the Ministry of Health; retain records of employees’ health check-ups at health facilities and production facilities.

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a) Use building materials using asbestos as raw materials only when their conformity has been declared.

b) Take necessary measures to control generation of asbestos dust while sawing, cutting, sharpening, and chiseling building materials containing asbestos;

c) Formulate an environment protection plan before demolition, repair and renovation of construction works or industrial equipment with respect to building materials containing asbestos;

d) Collect scrap from building materials containing asbestos and transport them into a designated place; do not use such scrap as raw materials for road pavement.

Chapter IV

BUILDING MATERIAL QUALITY MANAGEMENT AND TRADING

Article 33. Requirements for quality of products and goods of building materials

Quality of products and goods of building materials must be compliant with regulations of law on quality of products and goods and meet following requirements:

1. Domestically produced products and goods of building materials must meet following requirements before their marketing:

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b) Products and goods of building materials that are required to comply with technical regulations must ensure quality under such technical regulations, have their conformity certified and declared;

c) If national standards applied to products and goods of building materials have not been available, the producer thereof shall issue basic standards. The use of international and regional standards as basic standards is encouraged.

d) Products and goods of building materials of which labeling is required, such labels should contain sufficient information in accordance with regulations of law on goods labels;

dd) Products and goods of building materials whose conformity has been certified and declared shall comply with regulations of law on technical standards and regulations on conformity marks and use of conformity marks.

2. Regarding imported products and goods of building materials, standards applied shall be published; products and goods of building materials managed under national technical regulations should conform to respective national technical regulations.

3. Goods and products of building materials used for construction works must meet quality requirements, technical standards, regulations and designs.

Article 349. (abolished)

Article 35. Rights and obligations of building material traders

1. Every building material trader:

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b) has the right to decide measures for internal control of quality of building materials.

2. Every building material trader has the obligation to:

a) comply with requirements for trading in building materials in accordance with regulations of law on commerce;

b) pay compensation for damage caused by supply of products and goods of building materials that fail to meet quality standards, thereby affecting quality of construction works;

c) organize and control the transport and storage of building materials to maintain their quality;

d) provide purchasers with sufficient information and documents on quality and requirements for transport and storage of products and goods of building materials;

dd) promptly provide purchasers with sufficient information and handling measures when products and goods of building materials fail to meet quality standards set by producers, importers and distributers;

e) comply with regulations on inspection and periodic or ad hoc reporting promulgated by competent authorities;

g) declare prices as prescribed.

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1. Every building material exporter is required to:

a) ensure quality of building materials as specified in the commercial agreement;

b) comply with requirements for quality of exported building materials as stipulated in the international treaties to which Vietnam is a signatory;

c) discharge obligations as prescribed upon re-importing building materials for domestic use;

d) be under the management of the regulatory agencies, submit annual or ad hoc reports on export of products and goods of building materials to the Department of Construction of the province where the exporter registers its business. The provincial Department of Construction shall then submit a consolidated report to the Ministry of Construction.

2. Every building material importer is required to:

a) take responsibility for quality of imported products and goods of building materials;

b) organize and control the transport and storage of building materials to maintain their quality and satisfaction of requirements for environmental protection;

c) take responsibility for re-export of imported building materials that fail to conform to technical regulations or standards applied;

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dd) provide traders and users with sufficient information and documents on quality and requirements for transport and storage of products and goods of building materials;

e) comply with regulations on inspection and periodic or ad hoc reporting promulgated by competent authorities;

Chapter V

POLICIES FOR DEVELOPMENT OF ENVIRONMENT-FRIENDLY BUILDING MATERIALS

Article 37. General policies for development of environment-friendly building materials

1. The state shall encourage and enable organizations and individuals to research, develop, apply science and technology and produce environment-friendly building materials.

2. The abovementioned organizations and individuals shall receive investment incentives and subsidies from the state.

3. The state shall limit and gradually remove all production facilities that employ obsolete technologies that consume too much fuel and energy and cause environmental pollution.

4. The Ministry of Construction shall provide guidance on use of environment-friendly building materials in construction works.

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1. Projects on scientific and technological research and development of environment-friendly building materials.

2. Projects on production and expansion of production of unbaked building materials, which must satisfy the following capacity requirements:

a) Regarding projects on production of light-weight unbaked building materials (with a mass per unit volume of no more than 1,000 kg/m³), the capacity for a production line must be 50.000 m³ per year;

b) Regarding projects on production of concrete bricks (cement-aggregate bricks), the capacity for a production line must be 10 million standard bricks per year.

3. Projects on treatment and use of waste from thermal power plants, chemical fertilizer plants and metallurgical plants as building materials, which must satisfy the following capacity requirements:

a) Regarding projects on treatment and use of ash and slag, the capacity must be at least 100,000 tonnes per year;

b) Regarding projects on treatment and use of plaster, the capacity must be at least 50,000 tonnes per year.

4. Projects on utilization of exhaust heat from cement plant for power generation;

5. Projects on treatment and use of domestic waste as fuels for production of building materials with a capacity of at least 200 tonnes per day;

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The Ministry of Construction shall take charge and cooperate with the Ministry of Science and Technology in appraising and submitting projects eligible for investment incentives and subsidies from the state to the Prime Minister for approval.

Article 39. Incentives and subsidies

1. Projects on scientific and technological research prescribed in Clause 1 Article 38 hereof shall be eligible for:

a) tax and credit incentives prescribed in Articles 64 and 65 of the Law on Science and Technology 2013;

b) other relevant incentives and subsidies.

2. Projects prescribed in Clauses 2, 3 and 6 Article 38 hereof shall be eligible for:

a) investment incentives prescribed in Clause 1 Article 15 and investment subsidies prescribed in Clause 1 Article 19 of the Law on Investment 2014;

b10) subsidies on technology transfer for investment projects requiring transfer costs as prescribed in Articles 9 and 38 of the Law on Technology Transfers 2017;

c) other relevant incentives and subsidies.

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4. Projects prescribed in Clauses 5 Article 38 hereof shall be eligible for:

a) incentives prescribed in Clause 2 of this Article;

b) a subsidy of at least the price for treatment of local domestic waste applied to waste treatment or disposal facilities from the local government budget;

Article 40. General requirements for use of waste for production of building materials

1. For building material production facilities that treat and use waste as raw materials and fuels for production:

a) Investment and activities by such facilities shall comply with regulations of law on construction and environment;

b) There must be adequate appropriate vehicles for transport and storage facilities that meet technical requirements for waste storage;

c) Building materials produced by using waste as raw materials must meet standards for health and environment protection;

d) Building material products produced by using waste as raw materials or fuels must comply with standards and technical regulations.

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a) comply with law on environment and other regulations on measures for treatment of ash, slag and gypsum promulgated by competent agencies;

b) classify and preliminarily treat ash, slag and gypsum to ensure they meet technical regulations and standards on raw materials used for production of building materials;

c) hire other licensed units in case of failure to classify and preliminarily treat ash, slag and gypsum.

Chapter VI

IMPLEMENTARY ORGANIZATION

Article 41. Responsibilities of the Ministry of Construction

The Ministry of Construction has the responsibility to:

11. Formulate, promulgate or propose the promulgation of legislative documents on building materials; formulate and submit the planning for exploration, mining, processing and use of minerals used as building materials and environment-friendly building material development programs, plans and schemes for appraisal and approval; Provide guidance and organize the implementation of legislative document, strategies, planning, programs, plans and schemes that have been approved by the competent authority.

2. Promulgate a list of category II products and goods of building materials and corresponding national technical regulations as assigned by the Government.

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4. Provide guidance on the implementation of regulations of law on encouraging or restricting investment in, production, trading in and use of building materials.

5. Provide guidelines for appraising and assessing building material production technology and quality; technology for processing and quality of minerals used as building materials.

6. Take charge and cooperate with ministries and relevant local authorities (where necessary) in carrying out inspections and imposing penalties for violations arising in the building material sector nationwide.

7. Perform other tasks in the building material sector specified in this Decree and relevant legislative documents.

Article 42. Responsibilities of ministries and ministerial agencies

Ministries and ministerial agencies have the responsibility to:

1. Formulate, propose the promulgation or promulgate specific policies on building material development in the sectors as assigned.

2. Cooperate with the Ministry of Construction in state management, inspection and imposition of penalties for violations arising in the building material sector.

Article 43. Responsibilities of provincial People’s Committees

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1. Organize the implementation of legislative documents and perform state management of building materials in provinces within their power.

2. Manage quality of products and goods of building materials in provinces in accordance with regulations of law.

3. Monitor, produce statistics of and review activities in the building material sector in provinces.

4. Disseminate and provide guidance on implementation of laws and provide information about activities in the building material sector.

5. Carry out inspection of activities in the building material sector in provinces. The Inspectorate of the Department of Construction shall carry out specialized inspection of activities in the building material sector in provinces.

6. Submit annual or ad hoc reports on activities in the building material sector in provinces to the Ministry of Construction.

7. Perform other tasks related to management of building materials in accordance with regulations of law.

Article 44. Transitional clauses

Article 112. (abolished)

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2. Investment projects in the building materials sector approved before the effective date of this Decree are not required to be re-approved. Any activity that remains undone shall be carried out under this Decree.

3. If incentives provided for under this Decree are more beneficial than those currently enjoyed by an investor, such investor shall be eligible for the incentives provided for under this Decree for the remaining period of enjoyment of the incentives for the project.

If incentives provided for under this Decree are less beneficial than those currently enjoyed by an investor, such investor shall be eligible for the previously prescribed incentives for the remaining period of enjoyment of the incentives for the project.

Article 45. Effect13

1. This Decree comes into force from May 26, 2016 and replaces the Government’s Decree No. 124/2007/ND-CP dated July 31, 2007.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Presidents of provincial People’s Committees and relevant organizations and individuals are responsible for the implementation of this Decree./.

CERTIFIED BY

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1 The Government’s Decree No. 100/2018/ND-CP dated July 16, 2018 amending and annulling some regulations on necessary business conditions in fields under the management of the Ministry of Construction, which comes into force from September 15, 2018, is promulgated pursuant to:

“The Law on Government Organization dated June 19, 2015;

The Law on amendments to Article 6 and Appendix 4 on the list of conditional business lines stipulated in the Law on Investment dated November 22, 2016;

The Law on Construction dated June 18, 2014;

The Law on Housing dated November 25, 2014;

The Law on Real Estate Trading dated November 25, 2014;”

- The Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020, is promulgated pursuant to:

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The Law on Planning dated November 24, 2017;

The Law amendments to some Articles concerning planning of 37 laws dated November 20, 2018;

The Law on Technology Transfer dated June 19, 2017;”

2 This Article is amended by Clause 1 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

3 This Clause is amended by Clause 2 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

4 This Clause is amended by Clause 3 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 01, 2016 on building material management, which comes into force from February 10, 2020.

5 This Point is amended by Clause 4 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

6 This Chapter is abolished by Clause 8 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

7 This Clause is amended by Clause 5 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

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9 This Article is abolished by Clause 3 Article 3 of the Government’s Decree No. 100/2018/ND-CP dated July 16, 2018 amending and annulling some regulations on necessary business conditions in fields under the management of the Ministry of Construction, which comes into force from September 15, 2018.

10 This Point is amended by Clause 6 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

11 This Clause is amended by Clause 7 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

12 This Clause is abolished by Clause 8 Article 1 of the Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020.

13 -The Government’s Decree No. 100/2018/ND-CP dated July 16, 2018 amending and annulling some regulations on necessary business conditions in fields under the management of the Ministry of Construction, which comes into force from September 15, 2018, stipulates that:

Article 5. Effect

This Decree comes into force from September 15, 2018.

- The Government’s Decree No. 95/2019/ND-CP dated December 16, 2019 on amendments to some Articles of the Decree No. 24a/2016/ND-CP dated April 05, 2016 on building material management, which comes into force from February 10, 2020, stipulates that:

Article 2. Effect

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