Thứ Năm, 4 tháng 5, 2017

How to Apply for Birth Certificate for Newborn in Vietnam?

How to overcome challenges to apply for birth certificate 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 an 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.

Thứ Tư, 3 tháng 5, 2017

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.

Thứ Sáu, 28 tháng 4, 2017

How To Conduct Legal Due Diligence for M&A in Vietnam?

Legal Due Diligence help management make better investment decision in Vietnam
Mergers and Acquisitions (M&A) has become popular in Vietnam as the country develops and more investors are eager to invest and gain control of the business enough to engage in, decide important business matters through partial or full ownership of an enterprise.  A successful M&A mean the parties achieve their financial and commercial goals (increasing capital, raising management capacity, branding, etc) and ensuring safety and restraint the risk at the lowest level, though legal due diligence undertaken by law firm in Vietnam.
The Importance of Legal Due Diligence of Enterprise in M&A activities
Legal due diligence of enterprises focuses on full and detailed assessment of legal issues relating to the legal entity, capital contribution status, shareholder status, legal rights and obligations. From the investigation information, the parties can anticipate legal risks, assess opportunities to come up with alternatives. In addition, legal assessments help parties evaluate the reliability of their counterparts as well as understand their advantages and constraints for the negotiation process.

What Legal Due Diligence in M&A Activities Entail?
  • Evaluate the factors related to the legal status and capacity of the target enterprise: Review the legitimacy of the establishment, operation, possession of enterprise; ensure that the enterprise is not subject to procedures for dissolution or bankruptcy and compliance with the law of the enterprise in the course of operation. The information to be checked includes: dossiers, certificate of enterprise establishment, operation licenses, practice certificates, professional liability insurance, company charter, agreement between the company owner on rights of shareholders, capital contributors, minutes of meetings, member/shareholder register, certificate of capital contribution.
  • Evaluate the factors related to the business and financial activities of the target enterprise: Review the system of customers and partners of the enterprise; the documents on economic contracts (with customers, suppliers, etc); dossier of investment, construction, land, project; information on guarantee, mortgage (if any), debt and credit agreement, M&A, financial leasing contract, exclusive contract, franchise, etc, in terms of value, legality, validity, progress to evaluate legal risks in the future. Review the financial statements on the accuracy of the financial status of the business.
  • Verify the factors related to labor: Review labor contracts, labor agreements, internal labor regulations to determine the enterprise’s financial obligations to employees, compliance Labor law and reception of labor after the purchase or sale.
  • Verify the factors related to intellectual property: Review intellectual property rights of enterprises including: trademarks, trade names, industrial designs, layout designs, business secrets, etc; the property has granted the patent/license. Review matters of infringement of intellectual property rights of other organizations, individuals or legal persons in order to anticipate the risks of being sued or claiming damages.
In addition, in an M&A deal, the acquirer should ensure that participation in capital contribution or acquisition of the target enterprise is permitted, the form of M&A implementation is in accordance with the law and the M&A deal was approved by the competent authority of each party. After that, the factors related to M&A transaction procedures and constraints and restrictions of law (if any) must be evaluated.

Thứ Tư, 26 tháng 4, 2017

Brazilian Applied Anti- Dumping Tax 18% on Seamless Stainless Steel Tubes from Vietnam

Brazil started to apply anti-dumping tax on goods from Vietnam
On April 24th, 2017, the Brazilian investigation authority decided to initiate an investigation to verify the existence of dumping, injury and a causal link between them in the imports of seamless stainless steel tubes imported from Malaysia, Thailand and Vietnam
Investigated products are seamless stainless steel tubes with diameter equal or higher than 6mm and not higher than 2.032 mm and thickness equal or higher than 0.40 mm and not higher than 12.70 mm, classified as HS code: 7306.40.00 and 7306.90.20 on the Common Nomenclature of MERCOSUR – NCM, from Malaysia, Thailand and Vietnam.
Plaintiffs are Aperam Inox Tubos Brasil Ltda. and Marcegaglia do Brasil Ltda.
The alleged dumping margin with Vietnam is 18.0%, Malaysia is 26.4% and Thailand is 19.1%
The Period of Investigation is from October 2015 to September 2016 and the injury period is from October 2011 to September 2016.

The time duration for concerned parties to answer and submit the questionnaire is 30 days since the date of receiving (this duration shall be extended but not exceeding 30 days).  Concerned parties shall have 20 days to register to join the investigation i.e. May 15th, 2017.
All concerned parties shall have 70 days to submit comments about using alternative country for normal value calculation, by Jul 3rd, 2017.
If concerned parties have legal representative, the representative shall be allowed within 91 days since the initiation of the investigation, by Jul 24th, 2017.
To ensure the rights and benefits, the concerned parties are suggested to join and submit the questionnaire fully and find the support from experienced anti-dumping law firm and lawyers in Vietnam and Brazil.
Our lawyers in Vietnam constantly follow up with changes of law to provide the client with update for better decision making process.
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Which Form of Investment – Branch or Company?

Foreign entities can set-up company or branch offices in Vietnam to carry out business activities.
There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam.
Conditions
  • Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.
  • Foreign enterprise must choose between establishing a 100% foreign capital enterprise or forming a joint-venture with domestic investor or company.
Certificate
  • The Branch office needs to apply and obtain the operation license of a Branch;
  • A foreign owned company will need to apply and obtain the investment certificate (“IC”) to operate in Vietnam.


Capital
  • Optional, foreign entity will decide how much money to invest in branch. The allocation capital for branch is capital for the subordinate units.
  • Mandatory, foreign entity will need to provide minimum capital as required by Vietnam Law in conditional investment area.
Obligation of owner
  • For branch office in Vietnam, owner takes full responsibility;
  • For company, owner takes responsibility within the capital contributed into the company in Vietnam;
Other matters
  • For branch office setting up in Vietnam, the procedure is less complicated compared to those for the establishment of a 100% foreign owned company;  the branch office is able to carry out trading and some other activities as stipulated by Vietnam laws and the WTO commitments which Vietnam enters.  The business lines of a branch have to be aligned with the business lines of the headquarter of the foreign entity.
  • Setting up foreign owned company would be more complicated than the setting up of the branch office, however this form of investment has more flexibility and freedom as it is a stand alone Vietnam entity recognized under Vietnam laws.

Thứ Ba, 25 tháng 4, 2017

Renewal of License for the Establishment of Branches Office in Vietnam

How to extend branch license in Vietnam?
The extension of the license for the establishment of a foreign trader’s branch in Vietnam shall be following the regulation of the commercial law and the relevant guiding decrees and circulars under Vietnam laws.
Preparation of dossiers for extension of license for the establishment of branches includes:
  • Application for extension of license for the establishment of branches, made according to the form set by the Ministry of Industry and Trade, signed by a competent representative of the foreign trader;
  • A copy of the business registration certificate or equivalent paper of the foreign trader that is translated into Vietnamese and certified by a Vietnamese diplomatic mission or consulate abroad consular legalization in accordance with the law of Vietnam;
  • Copies of audited financial statements or documents certifying the fulfillment of tax or financial obligations in the latest fiscal year or papers of equivalent value issued by competent agencies or organizations (where the foreign trader established) to prove the existence and operation of the foreign trader in the latest financial year, it must be translated into Vietnamese and authenticated in accordance with the provisions of Vietnamese law;
  • A copy of the license for the establishment of the branch.
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The order and procedures for extension of the license for the establishment of the branch at a competent agency shall be as follows:
  • A dossier for extension of the license for the establishment of the branch must be submitted within 30 days at the latest before the license expires;
  • Foreign traders submit applications directly or via post or online (if applicable) to the Ministry of Industry and Trade;
  • Within 03 working days from the date of receipt of the dossier, the Ministry of Industry and Trade shall check and request the supplement if the dossier is incomplete and invalid. Requests for supplementary records are made at most once during the process of processing applications;
  • Within 05 working days from the date of receipt of the complete and valid dossier, the Ministry of Industry and Trade shall renew the branch establishment permit. In case of non-renewal, the reasons therefor must be clearly stated in writing;
  • In case the extension of the license for the establishment of the branch is not governed in specialized legal documents, the Ministry of Industry and Trade shall send a written request for comment to the specialized management ministry within 03 working days from the date of receipt of a complete and valid file. Within 5 working days from the date of receiving the Ministry of Industry and Trade’s written request, the specialized managing ministries shall clearly state whether they agree or disagree with the license extension. Within 5 working days after receiving the opinions of the specialized management ministry, the Ministry of Industry and Trade shall extend or not extend the branch establishment permit to the foreign trader. In case of non-renewal, the reasons therefor must be clearly stated in writing;
  • Within 15 days from the date of extension of the license for the establishment of the branch, the Ministry of Industry and Trade shall publish on the website of the Ministry.
Our lawyers in Vietnam constantly follow up with changes of law to provide the client with update for better decision making process.