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dealing with construction

In many economies, especially developing ones, complying with building regulations is 90 costly in time and money that many builders opt out. Builders may pay bribes to pass inspections of simply build illegally, leading to hazardous construction. Where the regulatory burden is large, entrepreneurs may tend to move their activity into the informal economy. There they operate with leas concern for safety, leaving everyone worse off. 




In other economies compliance is simple, straightforward and inexpensive, yielding better results.

Some reform outcomes

In Burkina Faso, a one-stop shop for construction permits, "Centre de Facilitation des Actes de Construire”, was opened in May 2008. The new regulation merged 32 procedures into 15, reduced the time required from 226 days to 122 and cut the cost by 40%. From May 2009 to May 2010 611 building permits were granted in Ouagadougou, up from an average of about 150 a year in 2002-06.

Toronto, Canada revamped its construction permitting process in 2005 by introducing time limits for different stages of the process and presenting a unique basic list of requirements for each project. Later it provided for electronic information and risk-based approvals with fast-track procedures. Between 2005 and 2008 the number of commercial building permits increased by 17%, the construction value of new commercial buildings by 84%.


Case Study Assumptions

The business

       Is a small to medium-size limited liability company in the construction industry, located in the economy's largest business city

       Is 100% domestically and privately owned and operated

       Has 60 builders, and other employees

       Has at least one employee who is a licensed architect and registered with the local ass0ciation of architects

The warehouse

       Is a new construction (there was no previous construction oil the land)

       Have 2 stories, both above ground, with a total surface of approximately 1300.6 sq. meters (14,000 sq. feet)

       Has complete architectural and technical plans prepared by a licensed architect

       Win be connected to electricity, water, sewerage {sewage system, septic tank or theừ equivalent) and a land telephone line

       Will be used for general storage of non-hazardous goods, such as books

       Will take 30 weeks to construct (excluding all delay all due to administrative and regulatory requirements.)  


1. Benchmarking Dealing with Construction Permits Regulations


Vietnam is ranked 62 overall for Dealing with Construction Permits.

Ranking of Vietnam in Dealing with Construction Permits - Compared to good practice and selected economies


The following table shows Dealing with Construction Permits data for Vietnam compared to good practice and comparator economies


2. Historical data: Dealing with Construction Permits in Vietnam

3. Dealing with Construction Permits sub indicators in Vietnam over the past 4 years

4. Overview of the steps to Building a Warehouse in Vietnam





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