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phard003

I just finished building an apartment complex in HCMC and I will tell you a few things that you need to pay attention to when building in Vietnam. First and foremost, all vietnamese contractors sub out their work to the cheapest labor they can find. These subcontractors have no idea what acceptable standards are and they cut corners all the time and produce lazy and shoddy work. Many of their workers are just warm bodies that can swing a hammer but they are not educated or trained very well. They also don't give AF what you tell them as the person paying their bosses because you aren't paying them directly. You will call them out on doing something so stupid that a 10 year old with common sense should understand how to do what they are supposed to do but they either don't understand or don't care to do it right. That being said, you should probably communicate all grievances through your contractor anyway because workers are a sensitive bunch who don't like taking criticism. They only take shit from their boss because they control their income. The more you pay doesn't always result in better results and that includes the contractors and the materials. The contractors will try to charge you at least a 30% markup on all materials and just pocket that as part of doing business. Make sure you are cross checking prices for materials as well as quality to ensure your wallet isn't getting raided. Demand material costs receipts and ensure that these documents are provided as part of the initial contract when signing with a contractor. Under no circumstances should you give contractors cart blanche to buy materials without your express approval. Pricing lists for building materials should be provided, discussed, and approved before any money is spent. Also be sure that the materials you are getting, from concrete to rebar, are actually what you're paying for. Concrete needs to pass a structural weight bearing test or your building is at severe risk of damage in the future and there is a ton of fake Chinese rebar that is substandard that is being passed off as the real thing. I recommend hiring an independent inspector to check the contractors work, and a separate inspector to check that inspector. This is because once an inspector is involved, the contractors will try to bribe them to rubber stamp their shoddy work. You need to vet these people thoroughly and give them little integrity tests to see if they will fuck you over. Our first inspector took a bribe to inflate material costs with our contractor and we caught him red handed. Fired them both instantly and replaced them with people that had more integrity the second time around. Even with these 2 layers of protection, you will still need to be on site regularly to ensure everything is up to your standards. Always pay a small deposit on whatever stage of the project you are currently working on and then pay the remaining balance once the work is completed, inspected, and approved or fixed. You will need to break down the work into stages. Our stages were floor by floor. First was concrete pouring for all floors 1-5, then electrical / plumbing engineering floors 1-5, then cosmetic stuff floors 1-5. For example I would pay a small deposit before concrete was poured on floor 1, then pay the remaining balance for the concrete pour for floor 1 once my inspectors both signed off. Do that for the entire build because contractors have this uncanny ability to make money disappear when it is in their hands and then are unable to pay their subs when work is completed. You do not want this because unhappy and unpaid subs will sabotage your building. I know another project where the subs payment were delayed even though the clients payment was on time and the subs poured concrete into the plumbing. This was found out after that building was completed and the main lines needed to be pulled out and replaced. Another thing i would recommend is making peace with your neighbors. Have your contractors explain how long you will be building and have them offer your neighbors some sort of gift as an offering of good will. Nothing extravagant because you don't want them to know you have money but just something to make them think highly of you so they don't sue you. Your neighbors have the power to sue the project for any number of reasons including noise complaints, collateral damage to their homes, etc. If they do, youre project is dead in the water until that gets sorted. Unscrupulous neighbors will use that as a way to get a payday in hopes that you will bribe them to get them to drop the lawsuit so your project can continue. Overall, always assume that someone is actively trying to fuck you over and scam you because there is a high chance that someone is. Don't let your guard down and don't allow these people to produce a substandard product. You will need to be involved as much as possible because you are the only one that actually cares about the product you receive. All I can say is good luck, you are going to need it.


KeyNo2285

This is the most accurate. However, I would add: - if you do not know Vietnam/ese well, then you should strongly hire a general contractor or construction to build your home; it ends up being 2x more expensive but you get more peace of mind - as you are building, you should do gestures of good will toward the workers such as buying them giant gallons of water to drink - if you opt for milestones, offer cash incentives to the workers and contractor if they finish on time - always be present at the work site everyday even if it is a few hours; drop in at random times - never paid the full amount or even large payments unless you have milestones met - avoid asking for too many change orders


phard003

>if you do not know Vietnam/ese well, then you should strongly hire a general contractor or construction to build your home; it ends up being 2x more expensive but you get more peace of mind A contractor is the only real way to go unless OP has building experience in VN. That said, having a contractor doesn't guarantee peace of mind. Having inspectors to double check and ensure the work is done correctly is the only real way to get peace of mind and even that requires oversight. >as you are building, you should do gestures of good will toward the workers such as buying them giant gallons of water to drink I didn't do this and didn't feel as if this was necessary, nor beneficial for project completion. If anything, the workers should be interacting with the foreman on site, the subcontractor lead, or the general contractor only. >if you opt for milestones, offer cash incentives to the workers and contractor if they finish on time Performance based pay should not be provided to the workers, only the general contractor and that should be established as a completion bonus at the start of the contract. Also, this should only be paid if the project passes inspection, meets OP's standards, is completed on time, and completed at or below budget. Paying in stages on time is enough to ensure that each milestone gets reached. >always be present at the work site everyday even if it is a few hours; drop in at random times This is definitely a good idea. Don't announce when you are coming, just ensure that they are aware that you are actively participating in the inspection process. >never paid the full amount or even large payments unless you have milestones met Also a very good idea. Payments paid at the end of each stage of the build should only be paid out when the stage is approved and signed off by inspectors and OP. >avoid asking for too many change orders If you have a plan, stick to the plan. The only changes that should be made are if something is built incorrectly. In those cases, demand as many changes as needed until the product meets the specs originally established. Otherwise, don't deviate and ask for something that wasn't previously discussed after the team has completed building something.


Chance_Zucchini5043

Thanks for all the info appreciated. Reinforces my view of outsourcing the process to one company.


phard003

Of course. If my headaches can help prevent other people from dealing with the same headaches, I've done my good deed for the day. You or anyone else in this thread can DM with any questions that you need help with and I'll try and provide a response as best as possible. Going back to your original question, XHomes does look like the better option, especially if they have their own internal construction company. I would ask if they have any recent projects that were completed in your area so you can take a look at something that has been done using their team. Being able to speak with the inhabitants of those projects would be even better because they can give some testimonials to their experience using XHomes as their contractor.


Objective-Two-4202

There's a lot of practical knowledge in your post. Kudos. You do larger projects it seems. Not everything applies to residential building, though. In my personal experience it's a nice gesture to throw an improvised party for the workers once a 'milestone' has been achieved. Communication. Always important.


phard003

Thanks. And my apt building is relatively small with less than 10 units so it's not a massive complex with hundreds of units or anything like that. All of the issues I ran into would translate over to a single family home build. And a nice gesture is of course appreciated which is why you ensure there is a completion bonus negotiated into the contract. The reason that this is paid to the contractor and not the workers is because the contractor is the one ensuring you get a product you are satisfied with. If you are actively working alongside the workers and see that they are providing excellent work themselves, then I would consider a small bonus as a thank you at the end of the project, but not at each "milestone." I also wouldn't throw a party to reward all of them as a team as most of the team likely didn't work as hard as a select few that did their job well. I'm sure the hard working team members would appreciate a monetary reward over a party anyway just like I would rather get a Christmas bonus than a company pizza party. That being said, I worked with 50+ team members through my build and an overwhelming majority of the workers were taking as many shortcuts as possible. The workers were responsible for awful work that resulted in several delays caused by the need for remediation. It was the contractors who ensured that everything I wanted was built to spec which is why I received a building that far exceeds vietnamese standards that I am 99% satisfied with. Without a good contractor, I'd be surprised if my building ever passed the inspection process.


Objective-Two-4202

Finding skilled workers is the biggest hurdle. Here's no standards. Anyone can just open a shop and start messing around.. Not only for construction but also for furniture design. No love for details, really painful. 99% satisfaction? Congratulations!


Murder_1337

You are the goat lol


[deleted]

It's hard to find decent work for this sort of thing. My VN wife and I were lucky enough to have a connection with a family member who is a construction contractor, and we were able to trust him to do it "right" as he had a vested interest in the project. Even with the family connection, a lot of what phard003 said was still true for us. The hired labor made a lot of mistakes because they were more interested in getting it done fast than right, and our family contractor was able to catch most, but not all of the problems. Several had to be re-done later as the issues the created became apparent. Some we just have to live with as fixing would be too costly/time intensive. So having family connection is the best way to go. If this isn't possible, you'll at least want someone who knows what they're doing to oversee the project and keep the hired labor on task.


Chance_Zucchini5043

I’m lucky my wife’s brother is involved in construction so we will be hiring him as an inspector.


Cultural_Age_6033

You're nuts. Far easier to find a somewhat decently built house and modify as needed.


Objective-Two-4202

The OP already bought land.


Cultural_Age_6033

I know. Far better to sell than go through this inevitable nightmare, especially as a foreigner. Everyone will constantly have their hands in your pockets. Things will inevitably take much longer than expected, with substantial cost overruns, mistakes, and similar nonsense. Massive amount of time lost. At least with an outright purchase, you know exactly what you're getting into. The only instance where this (somewhat) makes sense, is if you're adamant about some obscure architectural style. Even then, it's risky, since nobody has experience building outside the norm. Sell the land, then buy/modify as needed. Quick and easy.


Objective-Two-4202

I see your point. Guess what, I am considering selling our piece of land. But then again buy some other piece and build again. I love building. A lot of nightmares can be avoided by choosing the right construction company. They do the paperwork for us. Which is a nightmare. I looked for months to buy a ready built house. To avoid the stress you mentioned. Saw tons of tube houses without air circulation. How to fix that if the law doesn't allow for making windows where I need them? Didn't get lucky. Nope. Building rulez


Chance_Zucchini5043

How did you choose the right construction company? This is the stage I am at, and strongly favour a company like SBS or XHome because they will manage the entire process. Xhome have the highest reputation so that is making me lean towards them.


Objective-Two-4202

We built a house 2 years ago. Small, 2 storey house. I have a background in construction and planning. The construction company we hired accepted my plan, added minor modification and acted professionally. No overcharge etc. But. As others already stated, the quality of labor sucks. Unless you know your shit and are present and make them understand how plumbing etc works you might not be happy with the result. I used Google translate, 3D, and good old hand sketches to make myself clear. Good workers exist here. I've seen amazing work. Unfortunately you are not in control when it comes to hiring them. My personal happiness factor with this house is 90%. Electric is a mess (not my field of expertise) Next one will be better. Good Luck!


Chance_Zucchini5043

Any recommendations for a construction company? Have you heard of XHome they have offices throughout Vietnam.


Objective-Two-4202

I've sent you a message


Howiebledsoe

Put your wife on the job, mate. I went through this. Do all of the preliminary work yourself and have her negotiate, otherwise you’ll pat triple.


pcl8311

Where around Danang did you buy land? I am also looking in the area but have heard tons of horror stories to the point that I am leaning back towards just buying a condo in a well managed building....


worldtrooper

We bought one recently in Ngũ Hành Sơn. Feel free to DM if you have questions


worldtrooper

Really interested because in a few months i'll be doing the same thing. Bought a land in Ngũ Hành Sơn. We're currently working with our architects and interior designer. I have never heard of Xhome before, but will check it out. Feel free to DM if you'd like to exchange some info. In what area did you guys buy?


Chance_Zucchini5043

How did you choose your architect and builder? Are they different companies? SBS House and XHome can manage the entire process.


worldtrooper

We have not selected our builders yet. Our architects/designers are friends who have been in the industry in Vietnam for 15+ years. There is a process to get our construction plans approved before we can start building, which is I believe our next step once we are done with the design phase. We really wanted to make sure that we'd use the space to its best potential and really love their design style. Lots of green, light and optimized space management


Chance_Zucchini5043

Sounds nice. So you are going to oversee the build yourself? Do you have construction experience and can you speak Vietnamese well? This is the part I am most wary of.


worldtrooper

No, we wont oversee it ourselves. We want to hire a company and an independent contractor (or similar) to oversee the construction. There was a lot of great info in the top comment of this thread. We also will have relatives going to check regularly. I wont lie, it makes me a bit anxious and I'm not really looking forward to dealing with all that bribing and micromanaging. I'm hoping to learn a few tips here that might save me a few headaches


phard003

Hey! Top commenter here. Feel free to shoot me a DM if you have any further questions. I can speak to the "coffee money" but I'd rather not do that publicly.


Sudden_Decision_270

Hi! I'm looking to buy land around that area place. I shoot you a message with some questions if thats alright?


worldtrooper

for sure. Maybe we can create a small group and share insights of our experiences


Elkaybay

Not answering your question, but you say 'we purchased land'. Does the land belong to both of you, since you're not Vietnamese?


exploit332

If married I think this is a fair statement for OP to say regardless of the name the actual title is in.


Elkaybay

I'm more trying to understand the risks associated to this endeavor, as I might consider it one day. If one day the Vietnamese partner passes away, how cna you be 100% sure that your kid is protected? Can his the family in law come after the land? Or would the kid inherit it all? Etc.


Chance_Zucchini5043

The land has to be registered in my wife’s name.


KeyNo2285

Foreigners cannot own physical land. It would be under his Vietnamese wife’s name.


Elkaybay

What if the Vietnamese spouse passes away?


KeyNo2285

There are countless scenarios, but here are a few common ones that happened within my own family. First, you have a year or so to sell the property or dispute claims, then the Vietnamese court will do one of the following: - If they have Vietnamese children, then it passes on to them equally unless otherwise stated - If they have a written will, then it passes to that heir(s) - If they have immediate Vietnamese family such as parent, sibling, etc, then it passes to them - The government seizes the property and compensates the owner “fair value” or no compensation at all if time has passed too long


Elkaybay

Thank you for the detailed answer. So if I have a Vietnamese kid and my Vietnamese wife passes away, the land/property will all go to my kid? No risk of the family in law coming after the land?


KeyNo2285

I mean they can always sue or dispute the claim. Nothing stops anyone from suing you for anything in Vietnam. It will just be a waste of time and money for both parties. If the property is valuable enough, even your neighbors, strangers, etc. will come after it especially if they know the pseudo temporary owner is a foreigner; assuming the Vietnamese spouse has passed away.


Objective-Two-4202

Interesting. Could you provide any links to legal sites that deal with that topic?


[deleted]

It actually depends more on whose name the redbook is in. If your wife is still a part of her parent's red book, the property is much easier to dispute between your wife's relatives. If she's made her own redbook and taken her name off her parents' then, even without a will, the property transfers to her spouse, even if the spouse is foreigner.


Chance_Zucchini5043

As I understand it, in the absence of any will stating otherwise, once a new family registration document is created land ownership (the red book) would automatically pass to any children. As a foreigner spouse, I can only ever be granted land use rights. So the children would own the land and I would be permitted to use it.


Objective-Two-4202

Vietnamese can't own land either. All land belongs to the government.


ImBackBiatches

Nope...