[Webinar recap] Vietnam's new Law on Construction: What construction project stakeholders must know?

Replacing the 2014 law, and effective from 1 July 2026, LOC 2025 introduces sweeping changes across project classification, contract structures, dispute resolution, and design processes, impacting developers, contractors, and investors alike.

At our recent New Law on Construction webinar, our legal experts Christophe Cougnaud, Bernadette Fahy, and Do Minh Tam explored what these changes mean in practice, and highlighted key risks and opportunities for businesses.

Key takeaways:

1. FEED confirmed as a design option in Feasibility Study

Front-End Engineering Design (FEED) is now permitted across all project structures, reshaping how scope, cost, and risk are defined from the earliest stage.

2. Liquidated damages formally recognized

Pre-agreed damages are now officially acknowledged, bringing Vietnam closer to international standards (e.g. FIDIC). Contracts should be carefully reviewed and updated accordingly.

3. Dispute Boards introduced into the framework

The use of Dispute Boards is now recognized under LOC 2025, aligning with international best practices. Clear contractual agreement between parties will be essential.

4. New termination grounds introduced

Force majeure and prolonged suspension are now included as grounds for termination, aligning with international contract standards.

5. Some outstanding issues remain

While LOC 2025 resolves several long-standing ambiguities, certain areas, such as variation mechanisms, contractor capacity, dispute implementation, and award enforcement still require further clarity.

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👉 For tailored advice on how LOC 2025 may impact your projects, please contact our legal experts.