ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Hiển thị các bài đăng có nhãn VIETNAM. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn VIETNAM. Hiển thị tất cả bài đăng

Thứ Hai, 28 tháng 3, 2016

REAL ESTATE LEGAL MATTERS IN VIETNAM

In general, it is not permitted to own land in Vietnam as a private entity because the land belongs to the people and the State of Vietnam thereby operates as the administrator.

However an ownership of a right to use land is permitted according to Vietnamese Law.  This so-called Land Use Right (“LUR”) Certificate provides the means to lease land from the State for Vietnamese and foreign people.  This LUR Certificate entitles the land users to protect their legitimate rights and interests.  The sale of a house or real estate is in fact the transfer of the rights for house ownership combined with the transfer of the land from the seller.  The right to use land can be directly acquired by different ways that are: lease from the state; sub-lease from a developer of a zone; transfer from another land user; allocation from the state.  The legal grounds for Land andHouse Law of Vietnam are stipulated in the Law on Housing 2005 of Vietnam as well as in the Law on Land 2003.  The rights and entitlements of holders of house ownership and the holders of the LUR Certificate are settled in this law.
According to Article 12 of the Law on Housing 2005, the name of the individual who holds the house ownership shall be written in the house ownership right certificate and his/her rights are stipulated in Article 21 that include for example the rights to posses; use; sell; lease; donate; exchange; lend or to let other people stay temporarily in the house.  As stipulated in Article 106 of the Law on Land 2003, the one who holds the LUR and house ownership certificate is entitled to exercise the full range of rights over the land/house. As such, land use rights and ownership of assets on the land are combined in the Certificate of Land Use Right and House Ownership Right (LURC).
But the possibilities to acquire land or houses depend on the individual/organization that wishes to do so, because Vietnamese, overseas Vietnamese and Foreigners do not have the same rights.  Especially for foreigners, it was often quite challenging to acquire land or houses in Vietnam. Before the year of 2009, foreigners could not legally acquire property but only could make a joint venture with a Vietnamese company. But the Resolution No. 19/2008(ND-QH12, effective January 2009, started to entitle foreigners to own houses in Vietnam under the conditions that the foreigner 1) is hired by an enterprise that currently operates in Vietnam and 2) must have at least a temporary residence card to purchase and own an apartment unit in Vietnam. This five-year piloting program that would end in 2014 is now discussed by the Vietnamese Prime Minister to continue this program after the first five years to support the real estate market and to make it more attractive for foreigners.
Even though about 80,000 expats live and work in Vietnam, only more than 400 cases of foreigners buying houses in Vietnam could be registered. Of course, this might be due to the difficulties for foreigners to buy houses before this pilot program . But this Resolution No. 19, which was guided by Decree No. 51/2009/ND-CP, still does not make it easy to operate in the real estate market in Vietnam for foreigners because of the complicated procedures to register ownership. After the first 5 years, the government stated to have the plan to review the pilot policy and the Ministry of Construction also opened up for the idea to allow foreigners to buy houses no matter if they work and do business here or if they want to buy real estates in Vietnam.
As the Vietnam’s real estate situation seems to stand before a turning point, it is necessary to keep up to date with all legal changes and developments. Due to the fact that Vietnamese law has special provisions for every organization or individual who wishes to operate with land and real estates related to House Law, it is inevitable to know about this legal circumstances in Vietnam.
ANT Lawyers could assist in different land and house related projects and matters such as land ownership, house purchase or sale and is aware of the differences between provisions on house law for foreigners and Vietnamese. Our professionals could advise clients about possibilities and potential risks concerning real estate laws, housing laws in Vietnam and furthermore could support clients with required procedures with the Vietnamese authorities.
ANT Lawyers constantly researches for the latest legal updates to ensure that we provide best and up-to-date services to clients whom are interested in real estate and and housing matters in Vietnam.
For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  
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.

JUDICIAL RECORD CARD IN VIETNAM

Judicial record card in Vietnam Procedures to obtain judicial record card (criminal record/ police check) in Vietnam is regulated in the Law no. 28/2009/QH12  of National Assembly of Vietnam on Judicial Record.


Judicial record card means a card issued by an agency managing the judicial record database and valid to prove whether or not an individual has a previous criminal conviction, is banned from holding certain posts, establishing or managing enterprises or cooperatives in case enterprises or cooperatives have been declared bankrupt by court.
Judicial record cards include: judicial record card No. 1, which shall be issued to Vietnamese citizens and foreigners who resided or are currently residing in Vietnam; and judicial record card No. 2, which shall be issued at the request of individuals who want to know their judicial records.
To obtain judicial record card No.1, the requesters who is Vietnamese citizens must apply at provincial-level Justice Departments in localities where they permanently reside or at the provincial-level Justice Department in the locality where the requester temporarily resides (in case they have no place of permanent residence) or at the provincial-level Justice Department in the locality where he/she resided before his/her departure (in case the requesters are residing overseas). The foreigners residing in Vietnam shall apply at provincial-level Justice Departments in localities where they reside or at the National Center for Judicial Records (in case they have left Vietnam).
Documents required include:
i) declaration requesting the issuance of judicial record cards;
ii) a copy of the identity card or passport of the person requested to be issued a judicial record card;
iii) a copy of the household registration book or certificate of permanent or temporary residence of the person requested to be issued a judicial record card.
In case of requesting the issuance of card No.1, individuals may authorize other persons to carry out procedures for requesting the issuance of judicial record cards.
Procedures for issuance of judicial record cards No. 2 to individuals comply with the provisions for card No.1. However, individuals who request the issuance of a judicial record card No. 2, may not authorize others to carry out procedures for such request.
During the process of applying for the Criminal Record, the applicant might have to work with the police agencies; the Court: in case there are not sufficient evidence at the police agencies to conclude that the applicant has no criminal records or the content of the applicant’s criminal records is not clear; People’s Committee of communes, wards and townships; agencies, organizations and agencies related proceedings: in case of coordination to verify the conditions of having his/her conviction automatically written off.
For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  ANT Lawyers has law offices in Hanoi, Ho Chi Minh, and Da Nang City.
ANT Lawyers is a Vietnam law firm with international standards, recognized by Legal500, IFLR1000.  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.

Chủ Nhật, 27 tháng 3, 2016

REPORT THE DEMAND TO USE FOREIGN WORKERS IN VIETNAM

In order to manage the usage of foreign workers in Vietnam, the Vietnam state authority has requested employers to provide explanation for such need to use foreign workers.


This will be the preliminary procedure before applying for work permit in Vietnam then temporary residence card in Vietnam for foreigners.  The report of demand to use of foreign workers has to meet the following requirements:
Demand to use foreign workers: The employer (except contractors) is responsible for determining the demand to use foreign employees for each position that the Vietnamese employee has not met the requirement and submit written explanation. In case the employer is a contractor, in the bidding documents, it is required to declare the number, qualifications, professional competence and experience of foreign workers mobilized to implement bidding packages.
Recipient: Chairman of People’s Committees of provinces and cities under central authority (hereinafter referred to as the provincial People’s Committee) where the employer is headquartered.
Periodic notification period: Every year, the employer (except contractor) is responsible for determining the demand to use foreign employees for explanation.
The period of notice for the first time: Before at least 30 days from the date the employer (except contractor) plans to recruit foreign employees, the employer must report explanations as provided in Paragraph 1 Article 4 of Decree No. 102/2013 / ND-CP on the demand to use foreign workers, including work position, number, qualifications, experience, salary, working hours and submit directly to the Department of Labour – Invalids and Social Affairs of provinces and cities under central authority (hereinafter referred to as the Department of Labor – Invalids and Social Affairs) where the employer is headquartered.
The period of notice the adjustment: The employer whom is approved to use foreign employees, that have changes in the demand for foreign workers, has to directly submit the report explaining the adjustment and supplementation at least 30 days before the expected day for new recruitment, additional recruitment or recruitment to replace foreign workers with the Department of Labour – Invalids and Social Affairs where the employer is headquartered.
ANT Lawyers will be available to assist the clients when required dealing with the employment matters for foreign workers in Vietnam.
For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  
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.

Thứ Năm, 24 tháng 3, 2016

BLOOMBERG: M&A IN 2016 IN VIETNAM WILL HIT RECORD

According to Bloomberg, the mergers and acquisitions activity (M&A) in Vietnam will hit record since the foreign investors are very interested in the consumer sector – which is developing very fast.

The Institute of Mergers, Acquisitions and Alliances in Vietnam announced that the M&A activities related to Vietnam companies increased by 40% in 2015, reaching 4.3 billion USD and surpass the record of 4.2 billion USD in 2012.
Meanwhile, according to Baker & McKenzie and Duane Morris LLP,  M&A activities in Vietnam will grow strongly in 2016 after the implementation of free trade agreements (FTA) and the Investment Law is passed by the Government.
Foreign investors feel very exciting with the forecasted economic growth of 6.7% in 2016, the fastest growth in 9 years and the consumer market with 60% of customers are under 35 years old.
According to Bloomberg, Vietnam is having a lot of changes in the Law on Investment therefore the acquisition of companies in the country is took place faster and more transparent. Meanwhile, consumer spending also rose sharply. According to the forecast of Euromonitor, consumer spending will increase by 47% from now till 2019. Particularly the beer market will grow by 33% in the next period, reaching 4.8 billion liters, while the consumption of this product will decrease in Thailand. Moreover, the middle class in Vietnam will continue to expand their investment portfolio in the domestic market.
With these advantages, M&A activities in Vietnam in 2016 will be quite exciting. ANA Holdings Inc – owner of the Japan largest airlines has agreed to buy 8.8% stake in Vietnam Airlines with price of about 109 million USD. In March 2015, France’s Aeroports De Paris has expressed its intention to acquire stake in Airports Corporation of Vietnam.
In October 2015, the information about the divestment of the State at Vinamilk with 45% stake worth nearly 3 billion USD has led many foreign investors revealed their ambitions to buy the company with the largest listing in Vietnam market.
In late 2015, Boon Rawd Brewery Co., – the oldest brewing in Thailand has agreed to invest 1.1 billion VND in Masan Group – the biggest deal in the last 3 years in Vietnam.
Obviously, the investors who are interested in M&A in Vietnam are having a clearer path. With this trend, M&A will be more exciting in 2016.
If the Government continues to improve the investment environment then the foreign investment flows will continue to increase, especially in 2016 and 2017. Along with the advantages, Vietnam still has much to do to attract the flow of investment capital such as customs procedures, taxation and access to loans. The deeper and wider integration into the economy will offering Vietnam with more opportunities in M&A activity.

Thứ Tư, 23 tháng 3, 2016

WHICH AUTHORITY APPROVES BUSINESS SETTING UP IN VIETNAM?

Investment projects in Vietnam could be evaluated and approved for business setting-up at top level of the government, at ministerial levels or at the provincial levels.

The licensing authorities for business setting up in Vietnam has been divided to distribute workloads at different state agencies with aim to speed up the process and attract more quality investment projects in Vietnam.
In practice, the process for establishing companies or executing investment projects in Vietnam would take from one month for simple project, three to six month for areas categorized under conditional investment areas, requiring sub-licenses, or additional time for more complicated projects.  At the provincial levels, there might be inconsistency between cities and provinces due to different interpretation of laws.  For investment project with difficulty to manage, the provincial levels would need to consult with technical department of central government agencies, as such the time taken to process the investment certificate would be lengthen.
Understanding the mechanism and the work division of Vietnam authorities that evaluate and approve business licensing at different government agencies would help foreign investors to smoothen the process and improve their experience in Vietnam.
It is notable that, the government level will be focusing on significant projects, in special area at large investment capital with impact on social economic situations.  Most of the investment licensing procedures will be carried out at the provincial levels where the investment projects exist.
The following will point out directions for foreigners to approach respective agencies based on the particular area of interests, scale, and nature of the investment.  However, to avoid delay and increase effectiveness, it is advisable that the foreign clients would consult with Vietnam law firms to help advise and represent them in preparing and executing the investment in Vietnam.
I. Projects evaluated and granted investment licensing at government level
Depending on the business nature, industry sector, investment scale, and investment policy, the Vietnam Prime Minister, on behalf of the government will evaluate and approve investment licensing for setting up business.
1. The investment project in Vietnam the government will evaluate and approve regardless of funding, the scale of investment are in the following areas:
a) Development and commercialization of airports and air transport;
b) Development and commercialization of national port;
c) Exploration, mining and processing of oil and gas; exploration and exploitation of minerals;
d) Radio, television;
e) Casino;
f) Production of cigarettes;
g) Establishment of university level educational institute;
h) Establishment of industrial zones, export processing zones, high-tech zones and economic zones.
2. Although investment projects which do not fall under the cases listed above, but the government of Vietnam also evaluates and approves investment project with investment capital of VND 1,500 billion (around USD 75 mil) upwards regardless of funding and in the following areas:
a) Sales of electricity, mineral processing, metallurgical;
b) Construction of railway infrastructure, roads, inland waterways;
c) Production, sales of wine and beer.
3. Further, the government of Vietnam also evaluates and approve investment projects with foreign investment in the following areas:
a) Maritime transport;
b) Establishment of networks and provision of postal services, courier, telecommunication and internet; network setup and signal transmission;
c) Printing and distribution of newspapers; publication;
d) Establishment of independent scientific research.
4. Where the investment projects specified in the above cases are in the plan which the Prime Minister has approved or authorized other agencies to approve, and that the investment projects meet the conditions prescribed by law and treaties to which Vietnam Nam is a member, the agency granted investment certificates perform the procedure for issuance of investment certificates is not required to submit to the Prime Minister to decide on the investment policy.
5. Where the investment projects specified in the above case is not in the plan which has been approved by the Vietnam Prime Minister or authorized other agency to approve, and that the projects do not meet the conditions for market access provisions in international treaties which Vietnam is a member, the agency granted investment certificates shall consult with other of relevant industries and submit to the Prime Minister for investment policy decision.
II. Projects evaluated and granted investment licensing at ministerial level
1. The Vietnam Ministry of Planning and Investment shall evaluate and approve licensing for investment projects in the form of BOT, BTO, BT.
2. Other ministries will be evaluating and granting license for investment in some sectors.
a.Vietnam Ministry of Commerce and Industry shall evaluate and approve licensing for investment project in oil and gas sector;
b. Vietnam State Bank shall grant licensing for financial institutions;
c. Vietnam Ministry of Finance shall be responsible for issuing license for investment project of insurance business.
III. Projects evaluated and granted investment licensing at provincial levels
1. Department of Planning and Investment shall be the single point of contact that receive the application and evaluate the investment plan of the foreign investors wishing to establish business in Vietnam for projects
a. Outside of Industrial Zone, Industrial Processing Zone;
b. Infrastructure development project for Industrial Zone, Industrial Processing Zone which management board of industrial zone and industrial processing zone are not yet established.
2. The management board of Industrial Zone, and Industrial Processing Zone:
a. For investment projects within the Industrial Zone, and Industrial Processing Zone which are not under the authority of the Prime Minister;
b. Infrastructure development project to for industrial zone and industrial processing zone.

Thứ Ba, 22 tháng 3, 2016

HOW TO SET-UP TRADING COMPANY IN VIETNAM

Investment in setting up trading company in Vietnam is considered as investment in conditional investment areas



Once an underdeveloped country, in the last two decades Vietnam has shown an incredible growth in the world economic scene, especially in the criteria of investment attraction. For a foreign company that is interested in expanding the business in a new country or region, Vietnam is a promising destination. In order to start a company or specifically a trading company in Vietnam, foreign investor should comprehensively understand the formality and function of the legal entity to be formed according to Vietnam Law. The consultancy and guidance of skilled and qualified lawyers in Vietnam law firm throughout the process shall mostly be needed.
Set-up Trading Company in Vietnam
The legal basis for a foreign company to set up a company in Vietnam is stated in the Enterprise Law of Vietnam: foreign organizations and individuals will be entitled to establish and manage enterprises in Vietnam in accordance with this law, with some exceptions.  Foreign investors may invest in the form of 100% foreign- owned capital to establish limited liability companies, joint-stock companies, partnerships or private enterprises under the provisions of the Enterprise Law and relevant laws.
The foreign investor shall mostly needs to fulfill the investment registration procedures at provincial-level state agencies in charge of investment in order to be granted the investment certificates, in accordance with Vietnam law in investment. The dossier required for the investment registration shall comprise of an examination dossier, papers showing the capability to satisfy the conditions which the project is required by law to satisfy, for investment projects in conditional investment domains i.e. specific goods to be traded at HS code level, experience in trading area, how the trading procedures would be carried out, potential business in Vietnam.
In particular, for investment capital, it should be noted that, trading company needs to commit larger investment in terms of capital, since its function is to identify competitive suppliers, negotiate and purchase their products and sell them through a distribution network in Vietnam. In the meantime, the investor needs to have experience in trading to run the business smoothly and efficiently. The investor should explain why the company would contribute to the development in Vietnam when applying for investment license at Department of Planning and Investment, and Ministry of Trade and Commerce.
Our lawyers of foreign investment practice at ANT Lawyers are available to advise and provide client with service and representation in Vietnam.

Thứ Hai, 21 tháng 3, 2016

WHAT ADMIRALTY AND MARITIME LEGAL MATTERS IN VIETNAM INVOLVE?

Admiralty and maritime lawyers in Vietnam may represent and defend the interests of commercial ship owners and charters involving the total spectrum of maritime casualties, accidents and disputes which may arise in reference to commercial ocean shipping.


Additionally admiralty and maritime lawyers in Vietnam are frequently appointed by a broad vary of domestic and international marine insurance corporations directly or through our international partner law firms in UK, US and Australia to represent and defend the interests of their insureds in reference to casualties involving each commercial and recreational vessels.
When legal proceeding arises from a maritime casualty or dispute admiralty and maraitime lawyers in Vietnam commit the total range of the firm’s resources and therefore the intensive litigation expertise of our attorneys to attain the most effective potential outcome for the client. The attorneys additionally counsel ship owners, charters, marine insurers and clients on risk avoidance, regulative necessities and strategic legal solutions.
An overview of the a number of the kinds of maritime claims, casualties and transactions that admiralty and maritime lawyers regularly handle is as folllowing:
  • Casualty Defense, Investigation and Litigation
    • Collisions
    • Cargo damage
    • Personal injury and death (seamen, longshoremen and passengers)
    • Property damage
    • Product liability
    • Shipowner’s limitation of liability
  • Marine Liability Insurance
  • Commercial Disputes
    • Bills of Lading
    • Charter party disputes
    • Vessel mortgage foreclosure
  • General Average and Salvage Claims
  • Vessel Regulatory Matters
    • Regulatory compliance
    • Civil fines and penalties
    • Security issues
  • Maritime Contracts
    • Contracts of affreightment, bills of lading and charter parties
    • Drafting and advice
  • Recreational Boating
    • Injuries and Property Damage
    • Product Liability
    • Sales and documentation
    • Subrogation


ANT Lawyers has law been partnering with a number of UK, US, and Australian law firms in advising clients in admiralty and maritime in Vietnam.

HOW TO PREPARE AND FILE A LAWSUIT IN VIETNAM?

If two parties have a dispute over a commercial matter in Vietnam, they should try to resolve disputes through negotiation, or mediation before considering to file a lawsuit against the other at a court in Vietnam.



To implement their right to sue, the plaintiff must prepare and submit the claim at the competent court in Vietnam.  The dispute lawyers in Vietnam with experience and understanding the litigation process should be invited at the early stage to advise, represent and prepare to defend the client.  The claim filing should include the petition and the supporting documents.  The petition is the most important legal document for the court to review and resolve the claim of the plaintiff, as such it should be carefully prepared to meet the requirements of the form, authority, and further contain information about the plaintiff, defendant, summary of the case and the request of the plaintiff.
The contents of the petition must be presented in full, brief, clear, and in logic.  The plaintiff should provide all documents, and evidence to prove the merit of the claim including contract, purchase order, separate terms and conditions, appendixes (if any), minutes of meetings of negotiations, invoices, delivery proof, legal status of plaintiff and defendant, documents to determine the legal status of the representative of the plaintiff such as appointment decision, power of attorney.  In order for the document issued in foreign country to be valid in Vietnam, the documents presented have to be original or notarized, legalized and authenticated copy and translated into Vietnamese in accordance with Vietnam laws.
When the claim has been filed at the competent court in Vietnam provided all conditions of acceptance are met, the court will notify the plaintiff or its representative know the court fees. When the applicant advance the court fee, the case will be recorded and brought into the process for settlement.
At the trial preparation process, the case will be assigned to a judge whom after studying would request parties to present additional necessary papers and documents relating to the case.  Parties or their representative would then be requested to meet the judge to provide further information or testimony or attend reconciliation.  If the disputing parties resolve disputes with each other, the court will make a record to acknowledge the successful reconciliation and issue the decision to recognize the agreement of the parties. Where reconciliation fails, the court records that and shall issue the decision to bring the case to trial.
Disagreements or disputes arise when parties can not agree on issues related to contract provisions, expected outcome or performance starndards…There are cases when the dispute is over a debt obligations matters which a debt recovery law firm could assist at an early stage to manage the collection process pre litigations including negotitions and managing expectations of both sides.    
ANT Lawyers, a law firm in Vietnam will be available to assist the clients when required to handle dispute matters out of court, at court or through arbitration in Vietnam.  

Thứ Năm, 17 tháng 3, 2016

HOW PATENT ATTORNEY IN VIETNAM COULD HELP?

At ANT Lawyers, we provide patent attorneys in Vietnam with specialized qualifications necessary for representing clients in obtaining patents and acting in all matters and procedures relating to patent law and practice in Vietnam.




The inventors may obtain a patent in Vietnam without the assistance of a patent lawyer if they wish. However, this is almost full of risks. Ignoring the complexity of filing the registration application, the primary concern is whether an inexperienced inventor can write an application which satisfies rules as the requirement of Vietnam Intellectual Property law.
It can be said that Vietnam intellectual property law and procedure on patent registration are complex. That’s why valuable legal rights can easily be lost if the patent application and prosecution of that application are not handled carefully and precisely by one skilled in such matters. Companies that file lots of patent applications use patent attorneys for a reason that you almost certainly will get a better patent if it is done by a patent attorney.
If the inventor does not work with a patent attorney, some of dangers may occur in registering patent in Vietnam as following:
  • Failure in providing enough file for patent registration;
  • Making inaccurate statement such as incorrect description;
  • Wasting time because the documents is not valid;
  • Loss of patent right because of other patents;
  • Loss of capability on exploiting economic from patent right;
With the above – mentioned risks, patent registration in Vietnam with the assistance of the patent attorney seem to be an effective way to ensure the client’s right.  The patent attorney in Vietnam may help clients obtain patent quickly. The inventor also save time to focus on their core specialization if they use patent filing service.
The patent attorney assist clients as following:
  • Advise about the procedure for registration prior submitting application;
  • Compile all forms related to patent registration procedure;
  • Prepare for registration dossier and conduct the registration;
  • Subscribe to the application already filed and report to clients on the status of the application;
  • Inform, advise and handle mission or refusal of Patent Agency;
  • Get Patent and hand over to clients after receiving patent from patent Agency;
  • Consult clients about the use of the invention, rights and obligations related to invention after successful registration.
All things become easy, convenient and safe if you get the assistance from a patent attorney in patent registration.

NOTE ON SETTING UP A REPRESENTATIVE OFFICE IN VIETNAM

Setting up a representative office is considered one of the simplest forms of investment in Vietnam.


The representative office will help the foreign trader to lease office, hire people, open bank account, and promote the business activities in Vietnam market.  The chief representative if being foreigner will then could apply for work permit and temporary residence card to stay in Vietnam.  There is no income tax as the representative office therefore the liability to maintain a representative office is less hassle.  When the purpose of setting up representative office in Vietnam has been achieved, the closing down of the business shall be not as challenging as closing down a company.
According to Vietnam laws, representative office is a dependent unit, representing the foreign entity’s interests in Vietnam. Representative office is established by foreign entities to help them liaise, implement research activities, provide information and support them in seeking new partners as well as having understanding of the new market.
The foreign entity has to meet certain conditions before setting up representative office in Vietnam. It has rights and duties in accordance with Vietnam laws.
When preparing the application for license of representative office in Vietnam, the foreign entities have to note the following.

Prepare the application forms

The application forms as issued by Ministry of Industry and Trade. The application must be signed by legal representative of the foreign entity;

Notarize, legalize and authenticate documents

The foreign entity has to prepare and provide business registration certificate, audited financial report, charter, and office lease memorandum of understanding, passport of the legal representatives of the Representative Office in Vietnam. The documents issued in foreign countries have to be notarized, legalized and authenticated (apostille procedures) in accordance with Vietnam laws to be used in Vietnam. If the business registration certificate or alternative documents have expiry date for business entity’s operation, the remaining time must be at least one year;

Thứ Tư, 16 tháng 3, 2016

CASES THAT FOREIGNERS DO NOT HAVE TO APPLY FOR WORK PERMITS


Pursuant to Decree No. 11/2016/ND-CP of the Government that will take effect April 1st 2016, 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.

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.