Thứ Năm, 6 tháng 6, 2019

Overview on Cosmetics Regulations in Vietnam



Cosmetics are areas of highly regulated in Vietnam as they apply on human and could create health concern. Hence, cosmetics imported into Vietnam have to be applied special procedures to ensure safety. Cosmetics regulations in Vietnam would lay out provisions that importers and manufacturers to follow.

To carry out the Combination Convention in the cosmetic management which has been signed by countries are member of the Association of Southeast Asian Nations on September 2nd, 2003 (commonly called ASEAN Cosmetic Convention), the Ministry of Health of Vietnam issued Circular 06/2011/TT-BYT on Cosmetic Management.

The Circular dated January 25th, 2011 regulating the management of cosmetic products manufactured in the country, as well as cosmetics imported for circular in Vietnam. Besides, the cosmetic regulations is also provided in related provisions.

According to the Vietnam cosmetic regulations, cosmetic product must be construed as a substance or a preparation which is used for touch with outside parts of human body (skin, hair system, finger nails, toenails, lip, and outside reproduction organ) or teeth and mouth mucous membrane with main purpose in order to cleanse, aromatize, change the outward characteristics, form, adjust body’s smell, safeguard body, or maintain the human body in good condition. In addition to the products being grouped as cosmetic products such as: creams, emulsion, lotions, gels and oils for skin (group 1); tinted bases (group 2); toilet soaps, deodorant soaps (group 3); … some products are not classified as cosmetic.

Under Vietnam law, a cosmetic product made in Vietnam or imported into Vietnam must go through procedure of proclamation before being is sold on the market. In particular, organizations or individuals circulating the cosmetic products on the market have to be responsible for obtaining permissions through cosmetic product proclamation from authority agencies as well as responsible for safety, effectiveness, and quality of product.

For exporting cosmetic, the exporter needs to obtain the Certificate of Free Sale (CFS) as regulated. CFS is issued when such domestic cosmetic is issued the cosmetic product proclamation receipt number by competent state management agency. For importing cosmetic, enterprises are only allowed to import the cosmetic into Vietnam when presenting to the Customs agency the valid receipt number of cosmetic product proclamation report which has been issued by the Medicine Management Department – the Health Ministry. However, Vietnam law also provide import of cosmetic in some special situations which are not obligated to implement the cosmetic product proclamation as the following:

– Organization or individual who imports cosmetic in order to study and experiment;

– The organizations, individuals who receive cosmetic as gifts;

– The organizations, individuals who import cosmetic for displaying at fair, gallery and other temporary import for re-export situations.

For manufacturing cosmetic, the cosmetic regulations require the organizations which manufacture the cosmetic must deploy to apply and satisfy principles, the “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN).

Besides, compliance with the other requirements such as labeling, safety of ingredients, cosmetic advertising is also required.

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Thứ Ba, 4 tháng 6, 2019

Cases that Foreigners Do Not Have to Apply for Work Permits



Pursuant to Decree No. 11/2016/ND-CP and 140/2018/NĐ-CP , the below cases of foreigner will not have to apply for work permit in Vietnam:

-As capital contributing members or the owner of limited liability company.

-As member of the Managing Board of the joint stock company.

-As Head of the representative office, project of international organizations, non-governmental organizations in Vietnam.

-Entry into Vietnam for less than 03 months to carry out the service offering.

-Entry into Vietnam for less than 03 months to handle the incidents, technical situations and complicated technology arising that influence or threaten to production and business that Vietnam expert and foreign experts that currently in Vietnam cannot handle.

-As foreign lawyers that are licensed to practice law in Vietnam under the provisions of the Law on Lawyers.

-Under the provisions of the international treaties in which the Socialist Republic of Vietnam is a member.

-As pupils and students studying in Vietnam and working in Vietnam but the employer must notify 07 days with state authorities on the provincial labor.

-Moving within the enterprises in the range of 11 service sectors in the service commitments of Vietnam to the World Trade Organization, including: business, communication, construction, distribution, education, environment, finance, health, tourism, culture and transport;

-Entry into Vietnam to provide advisory services and technical expertise or perform other tasks to serve the research, construction, appraisal, monitoring, evaluation, management and implementation of programs and projects funded with official development assistance (ODA) as prescribed or agreed in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;

-Granted the work permit on information and press in Vietnam by the Vietnam Ministry of Foreign Affairs in accordance with law;

-Sent to Vietnam by agencies and foreign organizations to teach and research in the international school under the jurisdiction of the foreign diplomatic representative agencies or international organizations in Vietnam or the Ministry of Education and Training certificated for teaching and researching in the educational and training institutions in Vietnam;

-Volunteers certified by the foreign diplomatic representative agencies or international organizations in Vietnam

-Entry into Vietnam working in the positions of professional, manager, executive or technical employees with working duration of less than 30 days and no more than 90 cumulative days in 01 years;

-Entry into Vietnam to implement international agreements that agencies and organizations at the central and province have signed as in accordance with law;

-Pupils and students studying in abroad schools and training institutions that have internship agreements in the agencies, organizations and enterprises in Vietnam;

-Relatives of members of foreign representatives in Vietnam working after licensed by the Ministry of Foreign Affairs, except the case where international treaties that the Socialist Republic of Vietnam is a member that have other regulations;

-Have official passport to work for state agencies, political organizations and political – social organizations;

-Other cases decided by the Prime Minister on the proposal of the Ministry of Labour – Invalids and Social Affairs.

Our lawyers have consistently made valuable and important contributions to our profession.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.
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Thứ Hai, 3 tháng 6, 2019

Expiry Date of the Criminal Record Card



According to Clause 4 of Article 2 of the Law on criminal record, criminal record card is the document issued by the competent state agencies for organizations and individuals, proving that individuals have or do not have criminal record. The problem is that, for how long since the date that state agencies issue the criminal record card, it will be expired?

The law on criminal record of 2009 and the current law documents do not have regulations on the duration of use of the criminal record card. However, depending on the areas and purpose of using that the expiry dates of the criminal record card will be regulated differently.

For example, Articles 20, 24 and 28 of the Nationality Act of 2008, amending and supplementing in 2014 specified that in the dossier of application, stop and return to Vietnam nationality, there must have the criminal record card that is issued not more than 90 days before the date of submission.

Besides, a number of diplomatic representative missions of foreign countries in Vietnam also provides for the shelf life of the criminal record card when resolving visa application requirements, such as the United States Consulate provides that applicants for entry visas from 16 years or older need to submit the criminal record that was issued within a year.

Thus, the shelf life of the criminal record card in Vietnam currently is not clearly specified. It depends on the provisions in the documents of each different fields and the will of agencies and organizations wishing to learn about previous criminal conviction status of the litigants.
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Chủ Nhật, 2 tháng 6, 2019

Why Foreigners Find it Difficult to Purchase Properties in Vietnam?



The policy to open up the real estate market allowing foreigners to enter Vietnam and make investment in Vietnam through purchasing property is expected to warm up the real estate market and boost up the economy.

Our real estate lawyers in Vietnam have always followed the changes in regulations to update client. Officially, from July 1st, 2015 the amendment of Housing Law will come into effect. The new provisions about foreign ownership of houses in Vietnam are the highlights of the Housing Law 2014. In the Housing Law 2014, there is a separate chapter which state clearly about application subjects, requirements, rights and duties of foreigners who are allowed to buy houses in Vietnam. The application subjects have been extended compared to those in the old rules. The new regulations of Housing Law make the real estate market in Vietnam warm up.

When the Housing Law 2014 officially comes into effect, the decree which is expected to give guidance on implementation will be enacted. The regulation regarding buying houses by foreigners will be included in a specific documents having details instructions. According to the lawmakers, the Housing Law 2014 will have tighter guidelines in matters of real estate purchased by foreigners.

However to date, there is not any legal documents enacted to give instructions about the new provisions and about the Housing Law 2014 in general. According to Law on Promulgation of legal documents in 2008, the validity of legal documents is stated in the documents, but not fewer than 45 days from the day of enactment. This is a gap in Vietnam Law when the new Housing Law could not implement due to the lack of instructions and that the Resolution No. 19/2008 / QH12 about a pilot regulations on buying houses by foreign organizations and individuals has expired. Therefore, under the new rules, on July 1st, 2015 foreigners would not be able to buy house in Vietnam yet. This delay creates a legal gap and brings about difficulties and confusion.
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Thứ Năm, 30 tháng 5, 2019

How to Close a Business in Vietnam?



All corporations, companies, partnerships, branch offices, representative offices and other business entities are legal entities in Vietnam which can only be dissolved through formal procedures.

I. What are the major challenges with closing a business in Vietnam?

The main thing to remember throughout the process is that the dissolving company, a branch office or a representative office, one should pay close attention to the involvement of all key stakeholders, i.e. the employees, customers, creditors, business partners and relevant authorities.

The following are key information to gather for thorough analysis

-Company size in terms of capital and number of employees?

-Enterprise’s business sector?

-Tax invoice usage declaration?

-Annual profit?

-Compliance with tax procedures?

-Administrative violations in the field of taxation?

-Any outstanding tax?

-Tax document filing records?

-Other tax matters?

II. What does the dissolution process involve?

Once an analysis has been through, the next procedures mostly deal with reporting and submitting the relevant documents to the various regulatories and tax authorities at each step of the process, terminating contracts, liquidating assets and settling liabilities, and general administrative work such as returning the corporate seal, registration certificates, and having the company’s name removed from the system of the license authorities.

III) How to prepare document to close a business in Vietnam?

1. Documents submitted to the licensing authority in Vietnam:

-Liquidation notice of enterprise;

-Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

-The company’s decision on liquidation;

-Report on enterprise asset liquidation;

-The list of creditors and the paid debt;

-Documents evidencing that enterprise has fulfilled all of its tax;

-Confirmation on social insurance for employees after the dissolution decision;

-The seal and certificate of seal sample registration.

2. Documents submitted to the tax authority in Vietnam:

-Liquidation notice of enterprise;

-Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

-The company’s decision on dissolution;

-Audit reports and tax settlements;

-The financial statements for the year to date the decision on dissolution;

-The company’s tax liabilities audited by tax authority;

-Verification of tax obligations of the enterprise.

Closing a business in Vietnam might be a lengthy process and more complicated than setting up a company in Vietnam. Sometimes, it is important to make a decision to exit and start a new venture. As a law firm in Vietnam, we do assist clients to close the business, exit the investment and deal with pending issues with licensing authorities including department of planning and investment, department of labour, tax bureau and others.




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Why Investors Should Set-up Business in Phu Quoc?



The improvement in infrastructure system along with the preferential policies have stimulated investors to come to Phu Quoc to set-up company and do business.

Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia. Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.

Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.

Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.

The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.

Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.

Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.

The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.

ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Phu Quoc through its affiliate office. We assist clients needing legal service in obtaining investment certificate, business registration, or other licensing procedures in Phu Quoc, Kien Giang Province, Vietnam.

How ANT Lawyers Could Help Your Business?

Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our Law firms in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529