CONDITIONS FOR ESTABLISHING REPRESENTATIVE OFFICE IN VIETNAM

Decree No. 07/2016 / ND-CP regulating the Commercial Law regarding representative offices and branches of foreign traders in Vietnam that have recently been issued by the Government.

Accordingly, foreign traders can establish their representative offices and branches in Vietnam under Vietnam’s commitments in international treaties to which Vietnam is a member. A foreign trader cannot establish more than one representative office or branch with the same name within a province or city under central authority.

Foreign traders are licensed to establish representative offices when they meet five conditions:

– Foreign traders can establish and register for business in accordance with law of nation and territories participating in international treaties in which Vietnam is a member, or recognized by the law of those nations and territories.

– Foreign traders that have been in operation for at least one year from the date of establishment or registration.

– In case the certificate of business registration or papers with equivalent value of the foreign traders have prescribed the time limit for operation, then the duration must be at least 1 year from the date of submitting record.

– The operation of the representative office must match the commitment of Vietnam in the international treaties in which Vietnam is a member.

– The case where the operation of the representative office is inconsistent with Vietnam’s commitments or foreign traders do not belong to any nations and territories participating in the international treaties in which Vietnam is a member, the establishment of representative offices must be approved by the Minister of specialized management.

The Decree also stipulates the conditions for foreign traders to be granted licenses to establish their branches. Specifically, foreign traders will be licensed for the establishment of branches when they meet 5 conditions:

– Foreign traders can establish and register for business in accordance with law of nation and territories participating in international treaties in which Vietnam is a member, or recognized by the law of those nations and territories.

– Foreign traders that have been in operation for at least five year from the date of establishment or registration.

– In case the certificate of business registration or papers with equivalent value of the foreign traders have prescribed the time limit for operation, then the duration must be at least 1 year from the date of submitting record.

– The operation of the branch office must be consistent with the market-opening commitments of Vietnam in the international treaties in which Vietnam is a member, and in line with the business lines of the foreign trader.

– If the content of the branch operation is inconsistent with Vietnam’s commitments or foreign traders do not belong to any nations and territories participating in the international treaties in which Vietnam is a member, the establishment of branches must be approved by the Minister of specialized management.

The license for the establishment of representative office and branch of foreign traders have a term of 5 years but does not exceed the remaining term of the certificate of business registration or papers of equivalent value of the foreign trader in the case that those papers contain provisions on the term.

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CRIMINAL RECORD GRANTING FOR FOREIGNER

In order to be granted the work permit for foreigner, completing the immigration or reside procedures in a country, foreigners who are or have been residing in Vietnam must apply for a criminal record for the time that they residing in Vietnam.

Foreigners who are or have been temporarily residing in Vietnam have the right to request the Department of Justice of the province or city where they are residing or the National Centre for Criminal Record to issue the criminal record, in order to confirm that people have or do not have criminal records while residing in Vietnam. The person requesting for criminal record card can authorize another person on their behalf to complete procedures to obtain the criminal record.

ANT Lawyers can assist clients to apply for: Criminal record card no 1 and Criminal record card no 2

Individual when requesting for criminal record issuance have to provide the following documents:

• For Vietnamese:

– A written declaration requesting for the issuance of criminal record;

– Certified copy of identity card, passport, family record book, temporary residence book, temporary residence card, permanent resident card in Vietnam (should present the original for comparison);

– Confirmation of permanent residence in Vietnam before leaving the country (applies to Vietnamese who are living in foreign countries).

• For Foreigner:

– A written declaration requesting for the issuance of criminal record;

– Copy of the passport and visa that are still valid;

– Confirmation of temporary residence in Vietnam.

Implementation time: 3-7 working days.

Please contact ANT Lawyers for advice.

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PATENT REGISTRATION PROCEDURES IN VIETNAM

ANT Lawyers is a patent law firm in Vietnam that can assist client in the patent registration process and other patent relating issues.

Time and procedures for patent registration:

+ The time for form evaluation: 01 months from the date of receipt;

+ The time to publish the application: 18 months from the priority date or the 2nd month after receiving the request for content evaluation;

+ The time for content evaluation: 12 months after receiving the request for content evaluation or the date of publication

+ The time for patent protection is 20 years, for the patent for utility solution is 10 years.

Profile includes:

+ Declaration (02 sheets according to form);

+ Description (02 sheets, including drawings, if any);

+ Request for protection (02 sheets);

+ Relevant documents (if any);

+ Receipt of fees and charges.

Patent registration requirements:

1.Organizations and individuals that meet the following conditions may register for patent:

+ The author created the patent by his efforts and expenses;

+ Organizations and individuals investing in fund and material for the author in the form of contract work, unless the parties have other agreements and that agreements are not contrary to the provisions of law;

+ The case that many organizations and individuals working together to create or invest to create the invention, that organizations and individuals all have the right to register for patent and the registration will be implemented only if all organizations and individuals agree;

+ The case that the invention was created by using the technical facilities and expenses from state budget:

+ The case that the invention was created on the basis of entire state investment funds and technical facilities, the patent registration right belongs to the State. Organizations and state agencies are empowered as investor, representing State to exercise the right to register for patent;

+ The case that the invention was created on the basis of State contributes capitals which are funds and technical facilities, part of the patent registration right corresponding to the proportion of capital contribution will belong to the State. Organizations and Government agencies that are representatives of the State capital will be responsible for implementing the State’s patent registration right;

+ The case that the invention was created on the basis of research and development collaboration between state organizations, agencies and other organizations, individuals, if the cooperation agreement has no other provisions, part of the patent registration right corresponding to the proportion of capital contribution will belong to the State. State organizations and agencies participating in the research and development process will be responsible for implementing the State’s patent registration right.

2. To be granted the patent registration, the applicant must meet the following requirements: new; creative and capable of industrial application.

3. To be granted the patent protection/utility solution, the applicant must meet the following requirements: new and capable of industrial application.

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TOP 10 CHALLENGES OF DOING BUSINESS IN VIETNAM

Expanding gross domestic product (GDP), modern infrastructure and a dramatic increase in foreign direct investment (FDI) are signs that Vietnam has transformed into an attractive investment destination, but there are still barriers to doing business which are best navigated with local help on board.

Since 1988, there have been 13,544 foreign investment projects with a total registered capital of US$213 billion in Vietnam, building a large overseas investment sector which occupies about 17% of GDP and 43.4% of industrial product value. Overseas firms are attracted by Vietnam’s 87 million-strong population which supports a large and young workforce and that has also seen an increase in disposable income in recent years.

Strong economic growth rates have been a common feature of the Vietnamese economy since the 1990s, and even though the high levels slumped slightly during the global financial crisis, the country has rapidly returned to pre-crisis growth trends and is expected to continue on this path. Infrastructure, tourism development, and related real estate and retail sector development in urban areas are all attracting large amounts of FDI, and overseas firms are increasingly attracted by the country’s move from a centralized to a market-orientated economy.

However, The World Bank and International Finance Corporation (IFC) rank Vietnam in 99th place in the world for ease of doing business, which means it is essential to seek local help of law firms and lawyers in Vietnam when expanding into the country.

Starting a Business

There are 10 procedures to undertake when starting a business in Vietnam, making it among the most complex start-up environments in the world. What’s more, many tasks facing new corporate entities may be unfamiliar to overseas companies, making the task far more rigorous. Registration of the seal-sample at the State Agency, for example, or publicly announcing the formation in a local newspaper are procedures most companies generally don’t have to complete.

Dealing with Construction Permits

It takes 110 days and 11 procedures to get permits for construction in Vietnam, once again requiring interaction with several official departments. Inspections must be carried out by the Department of Construction and the municipality, and certificates should be obtained from the Firefighters Prevention Department, the Department of Construction and the Department of Natural Resources and Environment.

Getting Electricity

Getting electrical connection is among the most rigorous tasks facing startups in Vietnam, taking 115 days to complete and costing a significant percentage of income per capita. Inspections by the local power corporation are required before completing processes with the Traffic and Transport Department and the Firefighters Prevention Department.

Registering Property

Registering property in Vietnam takes 57 days to complete, which is far higher than the OECD norm but around average for East Asia and Pacific. Contracts between the transferor and the transferee are signed before taxation is paid and registration for the right to use land is complete.

Getting Credit

Vietnam is home to quite a stable credit environment, and obtaining capital is a relatively smooth process for businesses. However, the lack of a private credit bureau can make the process a little trickier for overseas firms.

Protecting Investors

Investor protection is an area in which Vietnam needs to improve. It is ranked in 169th place by the World Bank and IFC, with a weak director liability index and shareholder suits index.

Paying Taxes

There are massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.

Trading Across Borders

Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavour. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross-border trade can be difficult at the best of times.

Enforcing Contracts and Resolving Insolvency

Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.

Culture

The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasize the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs.

ANT Lawyers

We have the local knowledge to help you navigate these minefields. Whether you want to set up in Vietnam or just want to streamline your Vietnamese operations, we could assist.

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EMPLOYER’S OBLIGATIONS ON RECRUITMENT, LABOR MANAGEMENT AND LABOR DECLARATION UNDER CIRCULAR 23

Labour and employment compliance are continuous process which has no ending and there is no reason to stop.  In order for the companies in Vietnam to improve the effectiveness of its compliance in labour and employment in Vietnam, it is always important to pay attention to the details and fix the pending matters one by one.  Labour and employment lawyers in Vietnam would help the clients with a thorough reviewing process if required.

The employer is required to comply with current labor regulations on recruitment procedure, labor management and declaration as mentioned under Circular No. 23/2014/TT-BLDTBXH dated August 29, 2014 of the Ministry of Labor – Invalids and Social Affairs providing a number of articles of the Government’s Decree No. 03/2014/ND-CP dated January 16, 2014 detailing a number of articles of the Labor Code on employment (“Circular 23”), as following:

– Recruitment procedure:

The employer may recruit employee by either way of announcement at its head office or mass media.  Employment application form must comply with the standard form provided in Circular 23 which is attached in application dossier submitted by candidate.  The application dossier must be returned to the candidate (if required) within 03 months from the date of announcement of recruitment results.

– Labor management:

The employer is required to create employment log book where is recorded information on the employees and their employment. The employment log book must be reserved at head office and make it available if required by Department of Labour, Invalid and Social Affairs (DOLISA).

– Labor declaration

Employers must semi-annually report any changes in their labor utilization as prescribed form under Circular 23 to the DOLISA before May 25 or November 25 of each year.

Visa, Work Permit and PIT – What should enterprise know?

Law that impact work permit of foreigners in Vietnam

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice.  We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions.  The firm provides a range of legal services as following to multinational and domestic clients.

Commercial

Dispute Resolution

Debt Recovery

Employment

Foreign Investment

Intellectual Property

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HOW TO APPLY FOR BIRTH CERTIFICATE FOR NEWBORN IN VIETNAM?

For children of foreigner and Vietnamese born in Vietnam, the procedure to apply for birth certificate in Vietnam is carried out at the Vietnam’s provincial Department of Justice.

In today’s globalized world, it has become more common that people from different cultural backgrounds travel, and meet their spouse.  Their children were born with happiness however they would face difficulties when applying for birth certificate for the newborn in Vietnam.  For the parents, the difficulties of registering birth certificate in Vietnam could range from the choice of name, nationality, or whether or not the child is born out of wedlock.

When a child between a foreigner and a Vietnamese is born in Vietnam, according to the regulation on the registration and management of civil status, the Department of Justice will be the Vietnam government agency issuing the birth certificate.

In cases where parents choose foreign nationality for the child, they must obtain the agreement of the parents about the choice of nationality. The valid agreement of the parents about the choice of nationality shall be certified by the local authority.

After receiving a application dossier for birth certificate for newborn in Vietnam, civil status officials of the Department of Justice records in the birth registration and original birth certificate. The director of the Department of Justice shall sign and issue an original birth certificate for the newborn.  Copies of birth certificates are issued at the request of the applicant.

For children born out of wedlock, if the father is not identified, the information about the father in the birth registration book and birth certificate are left blank. When the father officially agrees to recognize father for a child, he has to carry out the procedure at the Vietnam’s provincial Department of Justice.  The birth certificate could also be revised to reflect the father’s details into the new birth certificate.  This birth certificate will be very important when the father applies foreign citizenship for the child.

The child can be named according to parental choice to be recorded on the birth certificate.

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PROCESS SERVICE IN VIETNAM

Process service is the notification and delivery of court and the civil judgment agency’s documents to litigants in accordance with the law.

The process service is conducted using the following methods:

1. Grant, served and notify directly by post or by authorized third party;
2. Publicly listing;
3. Announcement on the mass media.

With the 1st and 2nd methods, previously, the court clerk, expert at the civil enforcement agency or even judges and executors served on their own. Or, these agencies can also send a letter by post; send the documents that need to be served to ask police precinct, ward people’s committee or neighborhood steering committee to serve instead.

With the 3rd method, the serve is done through such media as radio, television, newspaper, radio

Finally, because of the significance and importance of the serve, law regulates that the person who obliged to serve the procedural documents, if do not done correctly their responsibilities then depending on the nature and seriousness of the violation, he/she must be disciplined, administratively sanctioned or prosecuted for criminal liability; if causing damage, he/she have to pay compensation in accordance with law.

For process service in Vietnam, let ANT Lawyers support you.

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COSMETICS WORKSHOP, EVENT ORGANIZING REGISTRATION SERVICES

In addition to the cosmetics advertising on mass media such as television, radio, electronic portals (Internet, Website), books, newspapers, magazines, flyers, posters, underwater objects or other means of advertising, the cosmetics business can make or sponsor, authorize other entities to carry out workshop activities to introduce cosmetic products.

The cosmetic businesses are only allowed to advertise, organize seminars and events to introduce the cosmetic products when having the Receipt of advertising, seminar, cosmetic introduction events registration dossiers as prescribed by law.

Cosmetic advertising content must be consistent with the documents proving the safety and efficacy of the cosmetics and must comply with published guidelines of ASEAN cosmetic product features.

1. Services that ANT Lawyers provide for customers:

+ Consultation on the announcement of cosmetics, import cosmetics, cosmetics advertising.

+ Consulting on the registration and documentation of organizing conferences, workshops to introduce and advertise cosmetics as requested by customers.

+ On behalf of customer to fill in the cosmetics advertising registration where business operates or where enterprise organizes conference, workshop to advertise cosmetics.

+ On behalf of customer to contact, work and receive information from the competent State agencies related to the implementation process.

+ Amend and supplement the dossier as prescribed by the competent State agencies upon requested.

+ Inform customers about the validity result from the competent State agencies.

2. Registration dossier includes:

+ Trader registrated to advertise cosmetics, orgasnize seminar, event to introduce cosmetic products.

+ A copy of the business registration.

+ A copy of the cosmetic product announcement card that has been granted.

+ POA of organizations and individuals that announce the cosmetic products for the one who organizing cosmetic seminar, introduction event (in case of the event organization or individual register for advertising, organizing the seminar, cosmetic introduction event which  are the one who held, published cosmetic products).

+ Document disclosures for the features, the use of the product in the case of the advertising contents, the contents presented at the seminar, cosmetic introduction event mentioned features, the use of the product beyond the content stated in the cosmetic product announcement card.

+ 02 advertising scripts (script must clearly describe the pictures, lyrics, music intends to advertise) or 02 advertising forms intend to release (applicable to the advertising registration dosssier) or documents intend to display, release at the seminar, cosmetic introduction event (applicable to workshop registration dossier).

3. Ways to file registration of cosmetic advertising, organizing seminar, event introduced cosmetic products:

a) Cosmetic registration dossier may be compiled for one or more products, can advertised on one or more means of mass media.

Cosmetics advertisement, advertising script can be made ​​for one or more different products.

b) The event, workshop organizing registration dossier may be compiled for one or more products to be held in one or more locations in the province, city

The procedure time: 10 working days from the time when the customer provides valid records and documents as required.

Please contact us at ant@antlawyers.vn or call us at + 84 835202779.

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HOW TO ESTABLISH A COMPANY IN VIETNAM

Foreign investors may invest in the form of 100% capital to establish a limited liability company, joint stock company, partnership company or other forms in investment in Vietnam.

Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates.  Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

A project dossier for establishing a company in Vietnam shall comprise:

• Registration/Request for issuance of Investment Certificate;
• A report on financial capability of the investor;
• Draft of the company’s charter;
• List of members of company: a) copy of the people’s identity card, passport or other lawful personal certification, for individual members; b) copy of the establishment decision, business registration certificate or other equivalent document, for member organizations; copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives. Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;
• Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;
• The joint-venture contract or Business Cooperation Contract (BCC);
• Other documents required by Vietnam law.

The establishment of a company in Vietnam would take from 30 days.  The extra time might be needed in case the investment area is conditional or the State government needs to examine the investment project.  Minimum capital, special licenses or other conditions might be required in certain investment projects.

At ANT Lawyers, a law firm in Vietnam with law offices in Hanoi and Ho Chi Minh City, we are available to assist clients in establishing foreign owned company in Vietnam.  We could be reached at email: ant@antlawyers.vn or office tel: +84 912 817 823.

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NEW VIETNAM REAL ESTATE DRAFT LAW GIVING MORE RIGHTS TO FOREIGNERS IN VIETNAM

ANT Lawyers’ real estate legal practice gives client legal advice on real estate legal matters in Vietnam.  We are keeping track with changes in the Vietnam legal environment to ensure giving our client the best advice.  

Real estate market in Vietnam is experiencing a difficult time.  The government has realized that there is a huge demand from the foreigners and oversea Vietnamese investing in Vietnam in owning real estate in Vietnam however the legal regulations on such matter have not yet encouraged them to make the investment.  

The Vietnam Ministry of Construction has enacted the fifth Draft of Law on Real Estate Business (amending), which regulates two new noteworthy provisions relating to the scope of real estate business of foreigners and Vietnamese overseas.

While the current regulations in Law on Real Estate 2006 only allow the foreign and oversea Vietnamese organizations, individuals to establish houses, construction works for sale, lease, lease-buy; to invest, reclaim land and set up facilities on the leased land for leasing.  The new Draft of Law on Real Estate expands the scope to i) rent houses, construction works in order to sub-lease; ii) foreign and oversea Vietnamese organizations or individuals operating in real estate area, foreign invested capital enterprises, branches, representatives of foreign enterprises, investment funds, branches of foreign banks currently operating in Vietnam are also permitted to rent, buy and own the office areas for their own work or for lease; to buy, rent, lease-buy houses according to Vietnam law on houses.

Our real estate lawyers in Vietnam have experience in the field of real estate and we have solutions for our client based on client’s unique situation.

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice. We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services as following to multinational and domestic clients.

Commercial

Dispute Resolution

Debt Recovery

Employment

Foreign Investment

Intellectual Property

International Trade and Taxes

Infrastructure and Project

Civil Matter

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LIST OF INVESTMENT SECTORS WITH CONDITIONS APPLIED TO FOREIGN INVESTORS

In general, investment is encouraged in Vietnam.  However, when setting up a company in Vietnam, foreign investors need to be aware of investment sectors with conditions applied to foreign investors in Vietnam.

The following sectors with investment conditions are issued with Decree 108/2006/ND-CP dated September 22nd 2006 of the Government on guiding the implementation of some Articles in the Law on Investment:

1. Radio and television.

2. Production, publication and distribution of cultural products.

3. Mining and mineral processing.

4. Set up telecommunication network infrastructures, broadcasting, provide telecommunications and internet services.

5. Construction of the public postal network, provide postal services, delivery services.

6. Construction and operation of river ports, sea ports, airports.

7. Transportation of goods and passengers by railway, airway, road, sea, inland waterway.

8. Fishing.

9. Tobacco production.

10. Real estate business.

11. Businesses in the field of export, import and distribution.

12. Education and training.

13. Hospital and clinic.

14. Other areas of investment in the international treaties to which Vietnam is a member that restricting the market access for foreign investors.

The investment conditions applicable to foreign investors with investment projects in the fields of investment provided with this list shall be in accordance with the provisions of the international treaties to which Vietnam is a member.

At ANT Lawyers, a law firm in Vietnam with offices in law office Hanoi and Ho Chi Minh City, we are available to assist clients in licensing and post-licensing matters to help clients with all questions and services in setting up and maintaining the company or other form of business entities in Vietnam. We could be reached at email:ant@antlawyers.vn or office tel: +848 35202779.

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