On August 28, 2019, in the Toronto city, Canada, Chairman of Danang People’s Committee chaired a roundtable talk about Canada-Danang investment cooperation.
Thứ Tư, 28 tháng 4, 2021
Danang organizes roundtable discussion investment cooperation with Canada
Posted on tháng 4 28, 2021 by duc anh
At the conference, the Chairman of Danang City People’s Committee introduced the investment and business environment, as well as exchanging cooperation and investment opportunities to investors in Canada. The city also expressed its desire to attract investment in high technology, information technology, education and tourism.
Until June, 2019, Canada has 10 foreign direct investment projects in Danang with a total registered capital of nearly USD 1 million, mainly in the field of management consulting service, equipment leasing. In terms of trade exchange, in 2018, exports from Danang to Canada reached 27 million USD, with the main export items including garments, children’s toys, components, auto parts, crafts. Meanwhile, the import value reached US $ 1.6 million with the main import items such as machinery, equipment and transport vehicles. At the roundtable seminar, Canadian investors expressed their interest in projects in the field of renewable energy, education, assembly, and production of auto parts in Danang.
For investors interested in the opportunity to cooperate in the production of automobile parts, Danang said the city has many mechanical businesses capable of cooperating to produce automobile parts with foreign partners. At the same time, the strategic location of Danang is also an advantage for investors in terms of product transportation and distribution system when opening the factory here.
In the field of education – training, city leaders encourage projects of building international schools and joint training programs according to international programs in Danang of Canadian investors.
In addition, Danang also wishes to cooperate with the city of Brampton, Ontario province – a city possessing strengths in logistics, information technology in Canada. At the meeting, representatives of city agencies answered the investors’ questions related to investment support and preferential policies; especially in the field of high technology, renewable energy, financial support for small and medium enterprises, protection of intellectual property rights …
Thứ Ba, 27 tháng 4, 2021
Can Foreign Invested Enterprises Distribute Pharmaceutical Products in Vietnam?
Posted on tháng 4 27, 2021 by duc anh
Currently, with the complicated developments of the Covid-19 epidemic in the world in general and in Vietnam in particular, the research, production and import of Covid-19 vaccines are the matter that everyone is concerned about. On February 24th, 2021, the first batch of vaccine approved for import was transported to Vietnam by the Vietnam Vaccine Joint Stock Company.
Facing this situation, a number of foreign enterprises have expressed their opinions on the limitations imposed on foreign-invested enterprises in the field of distribution of pharmaceutical products in Vietnam. Vietnam has reserved no commitment to open the distribution of pharmaceutical products service market and has not committed to opening the distribution of pharmaceutical products service market under any trade agreement or international treaty up to the moment, because the pharmaceutical sector is sensitive, directly related to access to drugs and people’s health.
According to the provisions of the law, “distribution of pharmaceutical products” means the division, movement and storage of pharmaceutical products from the warehouse of the manufacturer/importer of such products or from a distributor to the end user thereof or to a distribution point or between distribution points by means of various transport methods. For distribution services, in the WTO Commitments, it is clear that pharmaceutical distribution services are excluded from the scope of commitments for all modes of supply. In addition, Appendix 03 of Circular 24/2016/TT- publicizing roadmaps for goods trade and goods trading directly related activities of foreign-invested enterprises in Vietnam, it is also recognized that pharmaceutical products are on the list of goods not entitled to distribution.
Regarding this issue, the Drug Administration of Vietnam expressed the following viewpoint: “The suspension of allowing foreign-invested enterprises in Vietnam to provide drug storage and transportation services is to prevent the distribution of disguised drugs in Vietnam, contributing to health security and towards the professionalization of the medicine distribution system in Vietnam.”
Point c, Clause 10, Article 91 of Decree 54/2017/ND-CP, effective from May 8, 2017, provides for cases ineligible to distribute drugs as follows:
“10. The entities that are entitled to import but not entitled to distribute drugs and medicinal ingredients in Vietnam must do activities related to distribution of drugs and medicinal ingredients in Vietnam except for drugs and medicinal ingredients they manufacture in Vietnam, including:
c) Providing drug/medicinal ingredient transport or storage services.”
According to this content, foreign-invested enterprises in Vietnam are not allowed to transport and preserve drugs, except for drugs and medicinal ingredients manufactured by that enterprise in Vietnam. It can be seen that the restriction on the right to distribute drugs to foreign-invested enterprises is aimed at ensuring health security, being proactive in drug supply and distribution, towards to professionalize the domestic drug distribution system as a foundation to support the development of the domestic pharmaceutical industry and contributing to better control of drug prices in the market.
How a Foreign Company Apply for Certificate of Origin in Vietnam?
Posted on tháng 4 27, 2021 by duc anh
Vietnam has growing fast due to the opening policy of the government, and has been signing a number of free trade agreements with ASEAN, China, Korea, Japan, India, Australia, New Zealand, Chile, Russia, Belarus… with effectiveness. The expecting Europe Vietnam Free Trade Agreement has been signed but not yet effective at this moment. Having said that, Vietnam has become a destination for foreign investors to set up company and factory in Vietnam to undertake manufacturing for export and enjoy tax preference because of Vietnam origin.
The applicant wishing to be granted the Certificate of Origin (“C/O”) needs to register the trader profile under Vietnam regulations before submitting the dossier applying for C/O. There are steps to be followed at the State authorities to check the trader profile, its legal registration in Vietnam, manufacturing facilities that produce the goods which are subject of C/O. Further, additional information and proof will be required for verification at Vietnam State Authorities including the declaration of origin provided by manufacturer or supplier of originating materials or locally produced originating goods if such material is used in subsequent stage to produce another good, good manufacturing process. Not only checking the documents, the authority could undertake an inspection visit to the manufacturing facility of trader and request the applicant to submit evidence of customs declaration of materials imported and used in production of exported goods (if imported materials are used in the production process); a sale contract or VAT invoice of locally purchased materials (if locally purchased materials are used in the production process) and other documents as deemed necessary. If the documents, the process, and the conditions are met, the C/O will be issued.
In general, an originating good is a good which is originating in a country, group of countries, or territory where the last processing operation is performed and substantially transforms such good. To qualify for non-preferential goods, there will be required of:
1.“Change in tariff classification” (hereinafter referred to as CTC): means a change in two-digit, four-digit, or six-digit HS heading of a good as compared with the HS heading of non-originating materials (including imported materials and materials of undetermined origin) used for the production of such good.
2.“Local value content” (hereinafter referred to as LVC)
The applicant for C/O shall choose either direct formula or indirect formula at their own discretion to calculate LVC and apply the chosen formula throughout such financial year. The verification and identification of LVC criteria for exported goods of Vietnam shall be based on the aforesaid formula.
In order to calculate LVC according to the formula, value of materials and cost incurred in the production process of goods shall be determined as follows:
a) “Value of materials originating in a country, group of countries, or territory of production” is inclusive of CIF value of materials acquired or locally produced that are originating in a country, group of countries, or territory; direct labor cost, overhead cost, other costs and profits.
b) “Value of materials originating in a country, group of countries, or territory of production” is CIF value of materials imported that are originating in a country, group of countries, or territory; or the earliest ascertained price stated in the VAT invoices associated with materials of unidentifiable origin used for the production, processing of ultimate product.
c) “FOB” is the value stated in the export contract which is calculated as follows: “FOB = Ex-workshop price + other costs”.
– “Ex-workshop price” = Production cost + profit;
– “Production cost” = material cost + direct labor cost + overhead cost;
– “Material cost” covers expenses associated with purchase of materials, their cost of freight and insurance;
– “Direct labor cost” covers wages, bonuses and other welfare amounts related to the production process;
– “Overhead cost” covers: Overhead cost relates to production process (insurance for buildings, factory rents and hire-purchase cost, depreciation of buildings, repairs, taxes, collateral interests); hire-purchase cost and interests of factories and equipment; factory security; insurance (for factories and equipments used in the production process); expenses for essentials for production process (energy, electricity and other essentials to be used directly in the production process); research, development, design and workmanship; pressing molds, moulds, devices and amortization, maintenance and repairs of factories and equipment; patent royalties (in respect of patented machines or use of patented machines in production process or goods production licenses); testing of materials and goods; storage in factories; waste treatment; cost factors in calculating value of materials, such as port-related cost, good clearance and import duties on taxable components;
– “Other costs” are the costs incurred in placing the good in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees, service charges and relevant costs incurred when loading goods onboard ships for export.
If the goods that do not qualify to be issued C/O in Vietnam, it can not be granted C/O. Any violations of laws will be punished by the government.
It appears that many manufacturers are in the process to relocate significant manufacturing process to Vietnam to enjoy “Made-in-Vietnam”.
In the meantime, alarmingly, there are equal number of other manufactures whom wish to only transfer a small portion of manufacturing process to Vietnam i.e re-packaging, re-labeling which does not meed to qualifications above.
It is important that Vietnam authorities to alert and constantly monitor the C/O application process to ensure all responsible departments, officers to follow the rule as set by law to evaluate the C/O application documents, and proof given by trader, manufacturer carefully.
By doing that, Vietnam government will encourage the “real” transition of manufacturing from China to Vietnam, therefore increasing FDI, boosting the economy through encouraging manufacturing sectors.
By urging customs authority to investigate and punish violators, the Vietnam government is sending strong message to US that Vietnam is not standing to support unfair trade, and in the meantime take advantage of the situation to attract quality manufacturing projects into Vietnam. Therefore, more crackdowns are expected.
ANT Lawyers, as a law firm in international trade has been actively providing legal services through advisory to manufacturers on the C/O matters and assisting a number of investor to set up manufacturing company, review leasing contract at industrial zone as part of the process to transition manufacturing into Vietnam to seriously invest and do business taking advantage of origin, labour, opening policy of Vietnam government.
Chủ Nhật, 25 tháng 4, 2021
Top 10 Challenges of Doing Business in Vietnam
Posted on tháng 4 25, 2021 by duc anh
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.
Thứ Sáu, 23 tháng 4, 2021
Trading Conditions on Medical aDevice in Viet Nam
Posted on tháng 4 23, 2021 by duc anh
Medical device includes device related to human health, therefore, the business of medical device in the conditional business line in accordance with the law of Vietnam. Medical device is defined as kinds of device, tools, materials for implanting activities, reagents and in vitro calibration solutions, software which are used separately or in association with each other according to the instruction of their owners for human use for the purpose of diagnostic, prevention, supervision, treatment and elimination the illness or to making up for pains.
For medical device trading purpose in Vietnam, first of all, the enterprise should classify medical device. Medical device circulated in Vietnam will be classified based on the level of potential risks associated with the technical design and manufacture of such medical device.
Pursuant to Decree No.36/2016/ND-CP on medical device management, medical device shall be classified into the following 2 groups which are divided into 4 types as follows:
– Type 1 comprises Type A medical device which is medical device with low level of risks.
– Type 2 comprises Type B, C and D medical device, where
+ Type B medical device is medical device with lower average level of risks;
+ Type C medical device is medical device with upper average level of risks;
+ Type D medical device is medical device with high level of risks.
In case medical device can be classified into two or more levels of risk, the classification by the highest risk level of such medical device shall be applied. The classification of medical device must be conducted by qualified organizations as provided by law. In addition, the law of Vietnam recognizes the results of classification of medical device made by competent regulatory body in other countries such as Korea, Japan, … on the basis of international treaties or international arrangements to which Vietnam is a party or of a country which adopts a medical device classification system similar to that adopted by Vietnam.
After classifying medical device, the enterprise shall declare applicable standards for Type A medical device or issue certificate of free-sale registration for Type B, C, D medical device. This procedure makes sure that medical device which the enterprise has trading requirements, is allowed to be distributed in Vietnam.
Finally, with the exception of medical device of type A, in order to directly sell medical device to consumers, the enterprise needs to ensure the staffing requirements as well as the material facility requirements in accordance with the law, for instance:
Trading premise must have technically qualified staffs to perform the installation and use instructions suitable to the medical device which the establishment buys and sells, including at least one qualified technical staff specialized in technical or medical or pharmaceutical medical or technical colleges of medical device or higher or college or higher degree, whose specialized training is appropriate to the type of medical device that the establishment purchase.
Trading premise needs to prepare the warehouse which has area in accordance with the type and the quantity of the medical device to be stored. The warehouse should be airy, dry, clean, separated from sources of pollution and satisfied with other storing requirement device according to its manual. In addition, trading premise shall have suitable transportation vehicles for delivering of medical devices from trading premise to received place. In case there are no storage facilities or transport means, a contract with an establishment satisfying requirements for storage facilities and transport of medical device shall be concluded
Thứ Tư, 21 tháng 4, 2021
Vietnam attracts clean energy investment
Posted on tháng 4 21, 2021 by duc anh
On the morning of July 22nd, 2020, the High-Level Forum on National Energy Development 2020 took place at the same time many investment signing activities among leading energy enterprises in Vietnam, the region and in the world, open up a strong and sustainable period of clean energy development in Vietnam.
At the forum, the signed projects include: gas power plant project in Ca Na – Ninh Thuan province, LNG Chan May gas power plant project in Chan May Economic Zone – Thua Thien Hue province, project wind power off La Gan – Binh Thuan province.
The most outstanding of which is the wind farm project off the coast of La Gan in Binh Thuan province with a total investment of up to 10 billion USD. Accordingly, Copenhagen Infrastructure Partners (CIP), on behalf of New Market Fund I, with Asiapetro and Novasia Energy signed a Memorandum of Understanding (MOU) with the People’s Committee of Binh Thuan Province on the development of the offshore wind power project La Gan, Binh Thuan province. With a capital up to USD 10 billion, the pharmaceutical project is expected to create significant sources of income and employment for Binh Thuan and Vietnam, promoting the potential of developing wind energy in Vietnam.
For the LNG Chan May gas power plant project (in Thua Thien-Hue province) with a total investment of about USD 6 billion, cooperation between the US and Vietnam. When operating, every year, the plant will provide an average power output of 24 to 25kWh. Accompanying with the project are the US Government’s support programs for private investment projects of US citizens abroad, along with the world’s leading partners in finance, technology, operation and gas supply (source guaranteed from the United States) and corporate governance: US Development Finance Corporation, USAsia EDGE, World Bank, US EXIM Bank, GE Gas Power … help contribute to the growth of trade relations between Vietnam and America.
Besides foreign investors, domestic investors are also interested in developing clean energy such as gas power project in Ca Na and Phu My solar power development project in Binh Dinh with investment capital more than 6,000 billion.
With the development of clean energy projects, Vietnam expects many domestic and international investors to invest in the field of clean energy, set up company, obtain investment licenses, or acquire other company through merger and acquisition, bring in fresh capital in order to fully realize Vietnam’s capabilities in this field and bring great economic benefits to investors and contribute to environmental protection, sustainable clean energy development in the future.
Thứ Ba, 20 tháng 4, 2021
Transport market in Vietnam – Investment opportunities for foreign investors
Posted on tháng 4 20, 2021 by duc anh
Currently, Vietnam is considered to have a stable economy and politics, and is gradually becoming an investment destination for many investors in the world. In addition, with the goal of becoming a part of the global supply chain, the transport market in Vietnam is in strong demand to meet the demand for freight transportation of businesses.
As a country with bordering the sea, Vietnam is considered a trading place of Southeast Asia, Asian countries and other countries in the world. The modes of transport include: road, rail, water, air, and pipeline. According to the Strategy of the Government, until 2030, transport enterprises in Vietnam will be developed with the orientation of applying an advanced management model, high business efficiency, competitiveness, and ownership of the domestic transport market, occupying the role of plays an important role in the transport of goods import and export, step by step reaching out to invest and business effectively in the international transport market, the details as follow:
1.To complete the restructuring of state-owned transport enterprises in the direction of accelerating the equitization, reducing the number and proportion of state ownership in transport enterprises, except for the case in transportation business units to ensure national security and social security.
2.To separate the business of railway infrastructure from the transport business into independent enterprises, urgently equitizing the transport enterprises and providing railway transport support services.
iii. To establish a number of large-scale multimodal transport enterprises, capable of carrying out complete transport chains by road – rail – sea or road – waterway – sea, road – airline; strengthen connection of transport services between modes through the connection of service distribution, especially giving priority to the development of the intermodal ticket sale model between modes of passenger transport.
Regarding the implementation of investment in the transport sector for foreign investors, according to the provisions of the WTO and EVFTA services, foreign shipping companies can establish 100% foreign- capital enterprises. Foreign-invested enterprises are allowed to carry out activities including: (i) Marketing and sales maritime transport services through direct contact with customers, from quotation to invoicing; (ii) Acting on behalf of the cargo owners; (iii) Provision of required business information; (iv) Preparation of documentation concerning transport documents including customs documents, or other documents related to the origin and character of the goods transported; and (v) Provision of maritime transport services including cabotage services by Vietnamese flagged vessels for the supply of integrated transport services; (vi) Acting on behalf of the company, organizing the call of the ship or taking over cargoes when required; (vii) Negotiate and sign contracts for road, rail, inland waterways transportation related to cargoes transported by the company.
With the strategy of developing and opening up to attract foreign investors, Vietnam hopes to have more international transport investors to invest, set up company, apply for investment registration certificate for conducting business, to not only develop the transport market in Vietnam, but also bring economic benefits to international investors.
Thứ Hai, 19 tháng 4, 2021
Challenges in Preparing Documents for Representative Office Application
Posted on tháng 4 19, 2021 by duc anh
The representative office (RO) is a popular foreign investment vehicle which investors utilize when wishing to enter the Vietnamese market without committing too much investment. The representative office could help the foreign entity to hire local employee to carry out market research, business promotion.
A foreign company wishes to establish a representative office in Vietnam must submit an application dossier for a license to the Provincial Department of Industry and Trade (DIT).
However, there are cases which the government agencies receiving the application would be different from department of industry and trade depending on the business lines carried out by the foreign entity.
Firstly, the trade service is bound in Vietnam’s Commitment in trade service in WTO but there are no existing specialized legislative documents:
When the trade service which the foreign entity provides does not fall under areas prescribed by specialized legislative documents in Vietnam, the licensing agency shall submit a written request for directions to the relevant ministries for opinions. The foreign entity shall wait for at least 15 working days for receiving a written notice of whether the license for establishment of the representative office is granted or rejected. This process not only extends duration of establishment of representative office but also rises risk of rejection.
Secondly, the trade service is not yet bound in Vietnam’s Commitment:
Where the scope of operation of the representative office is inconsistent with Vietnam’s commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, there is an extra process in registration of representative office. The representative office shall be approved by relevant ministers, heads of ministerial agencies for establishment of the representative office.
Thirdly, trade services are supplied in foreign countries, but such does not exist in Vietnam
The foreign entity has to apply codes as following to Vietnam standard industrial classification system or CPC. If the foreign entity can not define a code, it is merely impossible to register the representative office.
In most of the cases, the foreign entity should consult with law firms in Vietnam whom lawyers have expertise in WTO laws, law on investment and experience in working with Vietnam state authorities, to prepare application right at the start and be ready to challenge the authorities when required to protect best interests of the clients.
Multimodal Transport Business Regulations in Vietnam
Posted on tháng 4 19, 2021 by duc anh
On October 16th, 2018, Vietnam Government issued Decree No. 144/2018/ND-CP amending, supplementing the decrees on multimodal transport. Under the law of Vietnam, multimodal transport (“MT”) is the transportation of goods performed with at least two different modes of transport under the multimodal transport contract from an original place to a place designated for delivery, the carrier is liable for the entire carriage. MT business includes: International multimodal transport (“IMT”) and Domestic multimodal transport (“DMT”).
The new decree eliminates and simplifies regulations on IMT business conditions and abolishes DMT business as a conditional business line. In fact, DMT including many transportations such as transport by sea, air,… is governed by specialized laws on each transport, hence it is not necessary to stipulate additional business conditions when conducting the combined transport.
Regarding the conditions of IMT business, the new Decree no longer differentiates between domestic and foreign enterprises as in the past, all enterprises therefore must meet the followings:
(1) Maintaining a minimum amount of assets equivalent to SDR 80,000 or provide an equivalent guarantee or an alternative of financial character as regulated by laws;
(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.
In addition, in order to facilitate member state of the ASEAN Framework Agreement on Multimodal Transport or another international treaty on multimodal transport to which Vietnam is a signatory, new regulations are stipulated as follows:
(1) Having a registration certificate of international multimodal transport or another document of equivalent validity issued by the competent national body of its country;
(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.
The licenses to provide international multimodal transport service issued by competent authorities of Vietnam before the date of entry into force of this Decree are still valid until their expiration dates.
With the role of supporting trading activities, modern transports need to meet the increasingly complex requirements of the domestic and international transport market, which not only deliver goods but also connect the transport process into an uninterrupted transport chain to ensure a faster and safer transport process.
Transport lawyers at ANT Lawyers, the law firms in Vietnam have always following up the legal development on transportation to provide our clients with regular update on the matters.
Chủ Nhật, 18 tháng 4, 2021
What is Bank Guarantee Letter?
Posted on tháng 4 18, 2021 by duc anh
According to Vietnam Law on Credit Institution, and Circular 07/2015/TT-NHNN on bank guarantee, bank guarantee refers to a type of credit whereby the guarantor undertakes to act on behalf of the obligor to fulfill their financial obligations to the obligee in the event the obligor fails to fulfill or insufficiently fulfill their agreed-upon obligations to the obligee; the obligor must take on their debt obligations and repay the guarantor.
Guarantee commitment is the written document issued by the guarantor or the counter-guarantee issuing party or the guarantee-confirmation issuing party.
Letter of guarantee refers to the written commitment between the guarantor and the obligee to the guarantor’s fulfilling the financial obligation on behalf of the obligor in the event the obligor fails to fulfill or insufficiently fulfill agreed-upon obligations to the obligee.
To avoid confusion of bank, it is common to issue non conditional and irrevocable bank guarantee. Having said that, the bank will release payment upon the first request from the obligee without the obligations to verify any contract non-performance.
Thứ Sáu, 16 tháng 4, 2021
The Need for Commercial Mediation in the Performance of International Contracts
Posted on tháng 4 16, 2021 by duc anh
In contract dispute resolution, the average time to resolve a commercial contract dispute at the Court in Vietnam, even with the help of dispute lawyers in Vietnam whom know well the process would take long time through multiple proceedings. This period will last longer if there is a foreign party in the dispute, including service of notarization, legalization, authentication (or apostille) the documents. According to World Bank statistics, the cost of resolving a commercial dispute at the Court accounts for about 29% of the contract value (including attorneys’ fees, court fees, judgment execution fees).
The practice of resolving the dispute case at the Court appears to face many challenges of time lengthening and possible effective enforcement leading to cost of time and money. Therefore, the selection of dispute resolution in the mediation center is a possible option to resolve this issue.
Vietnam authorities and international agencies have taken active measures needed to promote the application of commercial mediation in international contracts, in order to resolve issues more quickly and effectively in international trade disputes. The application of commercial dispute resolution at mediation centers in Vietnam will save time and costs for dispute resolution. In addition, the dispute resolution at the mediation center will also help the parties maintain the relationship for future business transactions.
Until Aug 2019, in Vietnam, there are 7 commercial mediation centers licensed by the Ministry of Justice with a team of domestic and international certified mediators and lawyers who can contribute to resolving disputes in international trade contracts. The use of mediation centers in the settlement of disputes in Vietnam with the help of lawyers in Vietnam will help the parties to find common grounds and together save cost, time, keep confidentiality of the dispute and could continue to do business with each other.
Thứ Năm, 15 tháng 4, 2021
Australia Initiated the Anti-dumping Investigation Against Rod in Coil Originating from Vietnam
Posted on tháng 4 15, 2021 by duc anh
The Australian Anti-Dumping Commission has opened an anti-dumping investigation on wire rod in coil imports from Vietnam and other exporters
On June 7th, 2017, the Anti-Dumping Commission of Australia (ADC) initiated the anti-dumping investigation against rod in coil originating from Indonesia, Korea and Vietnam.
At present, rod in coil is not applied tax when being exported from Vietnam into Australia.
Investigated product includes HS code: 7213.91.00.44, 7227.90.90.02 and 7227.90.90.42
The company that filed claim for investigation: OneSteels Company.
Period of investigation: 1/4/2016 to 31/3/2017.
Period of damage investigation:1/1/2013 up to present.
Dumping margin of product as allegation of plaintiff is 30,6% for Vietnam, 30,6% for Indonesia and 43,3 % for Korea
However, as preliminary calculation of ADC, expected dumping margin should be: 20,9% for Vietnam, 29,8% for Indonesia and 20,9 % for Korea
The filing party alleges that Vietnam belongs to particular market situation because of the level tax of two primary input material types, accordingly, the normal price shall be calculated by using the selling price in Vietnam but using the cost of a similar producer. The ADC may apply temporary anti-dumping measures but not earlier than 60 days since the date of initiation.
As expected, ADC shall issue Essential Facts on Sep 25th, 2017 and concerned parties shall have 20 days to comment.
The concerned parties could send the comment through their anti-dumping lawyers or law firms in Vietnam and Australia whom is familiar with the process and procedures in Australia.
In the past, Australia implemented anti-dumping investigation against this product originating from Indonesia, Taiwan and Turkey. Accordingly, Indonesia and Turkey were applied tax in 2015 but after the on review in 2016, tax has been lifted for product from Indonesia (due to causing no damage for Australian manufacturing industry).
Thứ Tư, 14 tháng 4, 2021
Contract Dispute in Vietnam
Posted on tháng 4 14, 2021 by duc anh
Disputes occur during contract performance are beyond the control of the entity entering contractual relations. In developed countries, lawyers always invited to advise customers to identify potential disputes, and provide solutions, support and provide legal advice and to accompany the enterprises solve disputes in accordance with the provisions of the law, which help businesses to focus on its business activities. The contract should be carefully reviewed by lawyers. Foreign companies when entering Vietnam mostly follow suit to engage dispute or litigation lawyers in Vietnam at early stage of the transactions.
Contract Dispute
Contractual disputes in Vietnam shall be construed as conflicts, disagreements, conflicts between the parties regarding the implementation or non-implementation of rights and obligations in the contract. Disputes could arise in failure to collect the payment from debtor in sales agreement, construction contract disputes between investor and contractor, labour dispute between employer and employee, insurance disputes between ship owner and insurance company.
Contract disputes must satisfy the following factors:
First, there is a contract between the parties. The contract would be in different for ms therefore, there is a need to clearly define if the contractual relationship has been formed or not.
Second, there is a breach of obligations or duties that are in violation of a party in the contractual relationship.
Third, there is disagreement between the parties about the handling of infringement or the consequences of such violations.
It should be noted, the contract disputes arise from the breach. However, not all breaches of contract also lead to disputes.
How to settle the contract disputes in Vietnam?
Contractual disputes can be resolved by the following methods:
-Negotiation is the process or behavior in which the two sides conduct exchanges, agreement on common interests and characteristics of disagreement and come to a unified agreement. The negotiation is without the presence of third parties. However, if the lawyers in Vietnam would be involved during the negotiation process, at the role of representing or advising, counseling, then the negotiations tend to be more effective and parties would reach agreement.
-Mediation is one of the options for disputing parties to end the conflict. Mediation is different from negotiating with the intervention of a third party. Mediator will help parties to achieve agreement and resolve conflict.
-Court or arbitration: The settlement of the dispute in court would take time. The court’s ruling can be appealed. It should be noted that, per Vietnam laws, only Vietnam litigation or dispute law firms could represent the client at court. Commercial arbitration is available only in commercial-business sector. The advantage of this method is fast and efficient. However, compare with disputing at court, this method of handling dispute would take higher costs.
Disputes and dispute resolution matters are natural and inevitable in any countries including Vietnam. It is important that parties involved need to identify, anticipate disputes can occur. Contract or agreement should be reviewed by lawyers. When there is a dispute, the dispute lawyers will be able to help parties to with advice to reasonable solution to address the disputes effectively.
P2P Lending – The new Form of Credit Extension in Financial Technology Era
Posted on tháng 4 14, 2021 by duc anh
Peer to Peer Lending (P2P) has becoming more popular in many countries. This form first appeared in the UK since 2005, then succeeded in the US and China markets. By 2017, P2P lending businesses start to appear in Vietnam in different forms.
Three subject matters in P2P lending relation include: investor (or lender), intermediary company (P2P Lending Company) and borrower. P2P Lending utilizes digital technology platform connecting lenders and borrowers directly, cutting out the credit institution as the middleman. Accordingly, P2P Lending Company provides online services (website, app) that match lenders with borrowers. The idea is that, all borrowing, debt payment (principal and interest) between the borrowers and lenders are recorded and stored by the online transaction platform. This method is completely different from the traditional loan form by increasing the ability to successfully connect lenders and borrower through online platforms along with advanced financial technology systems.
The relationship between lenders and borrowers is civil relation, therefore, the lending or payment is based on the regulations of Vietnam Civil Code. According to P2P Lending Company, the nature of P2P Lending Company is a broker between lenders and borrowers through technology. However, under Article 8.2 of Law on Credit Institutions 2010: “Individuals and organizations which is not credit institutions are prohibited from conducting banking operations, excepting escrow, purchase and sale of securities by securities companies”. Therefore, it is challenging for stakeholders to clearly define the boundary services could extend under P2P mode without violation of the laws.
In a good term, P2P lending creates a new way for approaching the loans when borrowers are not satisfied for the conditions of conventional bank loans. The advantages of P2P lending in Vietnam are the simplification of procedures, fast approval for loans, easy online transaction, in comparison to borrowing from banks which requires a complex and strict examination process.. Since P2P Lending Company offers these services online, it is expected it can operate with lower overhead and provide the service at a cheaper price than traditional financial institutions. If applying appropriately, P2P lending could be a solution to minimize other illegal lending services in Vietnam.
The Vietnam government has assigned The State Bank to build a legal framework for credit extension activities under the form of P2P Lending to promote the positive aspects of this service. At ANT Lawyers, a law firms in Vietnam, with offices in Hanoi, Ho Chi Minh City and Da Nang, we have technology, IP and business lawyers whom are familiar with development of digital transformation in Vietnam that could bring new ways of doing business leveraging on high rate of Vietnam smartphone users to prove a better services to high tech start-up clients entering Vietnam market.
Thứ Ba, 13 tháng 4, 2021
Expiry Date of the Criminal Record Card
Posted on tháng 4 13, 2021 by duc anh
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.
Thứ Hai, 12 tháng 4, 2021
Questionnaire on Anti-Dumping Investigation on Some Monosodium Gluamate Products Case AD09
Posted on tháng 4 12, 2021 by duc anh
Pursuant to Decision No. 3267/QD-BCT dated on November 15th, 2019 of the Minister of Industry and Trade on investigating to impost anti-dumping measures on some monosodium glutamate (MSG) products originating from the People’s Republic of China and the Republic of Indonesia (code no.AD09), the Department of Trade Remedies issued an anti-dumping investigation questionnaire to foreign manufacturers/exporters.
The Investigating Authority requires all relevant foreign manufacturers/exporters to cooperate and participate sufficiently during the investigation. The content of the response will be the basis for the Investigating Authority to review and draw a conclusion of the investigation of this case. In the event that the Investigating Authority does not receive timely responses from foreign manufacturers/exporters or the information provided is incorrect or incomplete, the Investigating Authority will use information and documents provided by related parties; information and documents collected by the Investigating Authority or available information and documents for drawing a conclusion.
The relevant parties must respond to the Investigating Authority before 17:00 December 23rd, 2019 (Hanoi time).
To ensure its rights and interests, the relevant parties who want to extend the time limitation of response are suggested registration of extension before November 30th, 2019 (Hanoi time). If the manufacturers/exporters registers after the deadline, it is possible that the Investigating Authority shall not approve their registration. For registration of relevant parties, organizations and individuals register according to the form of relevant party registration form issued in Appendix 1 attached to Circular 06/2018/TT-BCT and send it to the Investigating Authority via post office or email.
International Trade legal department of ANT Lawyers, a law firms in Vietnam would help client in anti-dumping cases response and following up in Vietnam with the Ministry of Trade and Commerce
Infringement of Intellectual Property Rights Under Vietnam's Criminal Code
Posted on tháng 4 12, 2021 by duc anh
For the purpose of ensuring legitimate interest of manufacturers as well as consumers, reduction and elimination unfair commercial competition, the Vietnam government has been increasingly focusing on protection of intellectual property (IP) rights. This is expected to contribute to technical enhancement in domestic production industry, foreign investment attraction, reduction of IP infringements in Vietnam.
Intellectual property rights always plays an important role in international trade agreements which Vietnam has been a contracting party, especially ASEAN and WTO. The WTO requires its members to impose penalties or fines, or both, to prevent acts of intellectual property infringement for commercial purposes, in accordance with the penalty applicable to the crime of corresponding severity.
In order to consolidate and protect the social order; punish crimes; raise people’s awareness of compliance with the law; prevent and fight crimes, Vietnam has legalized sanctions for infringements of intellectual property rights under administrative, civil and criminal measures.
The Criminal Code 1999 (amended and supplemented in 2009) regulated provisions on “Infringement of industrial property rights” (Article 171). The criminal sanctions for infringement of intellectual property right are regulated in Article 225 and Article 226 of the Criminal Code 2015.
Regarding the subject of infringement of intellectual property rights, the offenders shall be (i) person who is at the sufficient age to bear criminal responsibilities; or (ii) corporate legal entity as defined in the Civil Code.
The effective protection of intellectual property rights will be an important factor that protect the interests of consumers, manufacturers, eliminating “distortion” of competition and commerce. In common playgrounds, Vietnam as well as other member countries must strictly comply with the regulations on IP issues to integrate into global economy.
Chủ Nhật, 11 tháng 4, 2021
Withdrawal of request for investigating of anti-dumping on welding material products originating from China, Thailand and Malaysia
Posted on tháng 4 11, 2021 by duc anh
Welding material is one of the most important industrial auxiliary sector, which is indispensable to fields such as: shipbuilding, cars and motorbikes production, other electronic industries. In the first 7 months 2019, Ministry of Industry and Trade carried out examination dossiers of 3 cases, one of them is dossier requesting to investigate to apply anti-dumping measure on welding material.
On Jun 28th, 2019, Trade Remedies Authority of Vietnam (Investigating Body) received the Dossier requesting for investigating to apply anti-dumping measure on welding material products originating from People’s Republic of China, Kingdom of Thailand and Malaysia. This dossier is applied by companies representing the domestic industry (Requesting Party).
Requesting Party includes 01 company: Kim Tin Group Joint Stock Company. Kim Tin Group Joint Stock Company is a large enterprise in manufacturing and trading of welding materials: welding rods, welding wire, welding flux, color metal, steel nails, ligature, machines, devices, board of MDF, mineral exploitation and logistics service in Vietnam.
On Oct 28th, 2019, Requesting Party fully submitted additional information at request.
On Nov 07th, 2019, Investigating Body confirmed that Dossier was complete, valid according to regulations of law on trade remedies.
On Jan 25th, 2020, Trade Remedies Authority received official dispatch of Requesting Party on withdrawing dossier requesting for investigating to apply anti-dumping measure on welding material products.
Due to Requesting Party’ s request for withdrawing dossier, Trade Remedies Authority informed that no investigation to apply anti-dumping measure on welding material products originating from People’s Republic of China, Kingdom of Thailand and Malaysia is initiated.
Our international trade and tax lawyers, and antitrust lawyers at ANT Lawyers, a law firms in Vietnam have always followed the development of situation and update the clients on relevant matters.
Thứ Năm, 8 tháng 4, 2021
Can Foreigner Authorize Other Person to Perform Transfer of Properties in Vietnam?
Posted on tháng 4 08, 2021 by duc anh
In the complicated situation of the Covid-19 epidemic, the Government continued to implement policies to restrict entry to Vietnam, thus many transactions were canceled or delayed. That has caused many obstacles for foreign individuals and organizations wishing to perform transactions in Vietnam. We refer to the transfer of home ownership for foreign individuals who cannot enter Vietnam to participate in signing transfer contracts and other related transactions i.e. sell or buy an apartment or a house located in Vietnam.
Pursuant to the law on housing, foreign organizations and individuals have the right to own house in Vietnam, before the time limit of the homeownership, the homeowner is entitled to gift or sell their house(s) to entities eligible for the homeownership in Vietnam; if not, their house(s) shall be under ownership of the State. Regarding the house ownership term, if a foreign organization or individual sells or gifted to a domestic organization, household, individual, or a Vietnamese citizen residing overseas, the buyer or recipient will acquire a long-term ownership of the house. If the house is sold to a foreign organization or individual eligible to own housing in Vietnam, the buyer or recipient may own the house for the remaining period. When this period expires, if the owner wishes to have this period extended, the State shall consider granting an extension. The seller or giver must pay tax and other amounts to state budget as prescribed by Vietnam’s law.
In accordance with the law on housing transactions, the seller or transferor of the commercial house sale and purchase contract must meet the following conditions:
-He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in this Law and law on civil; if the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale;
- If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in law on civil; if the entity is an organization, it must have legal personality.
Article 195 of the 2015 Civil Code stipulates: “A person who is not an owner of property has the right to dispose of property only under the authorization of the owner or according to the provisions of law.”
Clause 2 Article 55 of the Law on Notarization 2014 stipulates: “In case both the authorizing party and authorized party cannot appear together at the same notarial practice organization, the authorizing party shall request the notarial practice organization of the place of residence of the authorizing party to notarize the authorization contract; the authorized party shall request the notarial practice organization of the place of residence of the authorized party to further notarize the original of this authorization contract and complete procedures for notarization of the authorization contract.”
In order to perform the house purchase and sale transaction or in other words to buy an apartment or sell a house in Vietnam, the parties to the house transaction need to agree to make a sale contract or a document on the transfer of a commercial house sale and purchase contract. In case a foreign house owner cannot enter directly to sign a contract, he/she may authorize another individual or organization in Vietnam to perform instead. However, the authorization document needs to be notarized at the competent authority. In case a power of attorney is notarized at a competent agency in a foreign country, it is required to be notarized, legalized, and authenticated in accordance with regulations of the foreigner country (apostille) before that document can be used in Vietnam.
Thứ Tư, 7 tháng 4, 2021
Forms of Company to be Set-up in Vietnam
Posted on tháng 4 07, 2021 by duc anh
According the Vietnam Law on Enterprises, there are four common types of companies:
Private enterprise is an enterprise owned by an individual who is liable for all of its operations with his/her entire property;
Partnership is an enterprise in which (i) there are at least two partners who are co-owners of the company, jointly conduct business under one common name; in addition to general partners, there may also be limited partners; (ii) general partners to a partnership must be individuals who are liable for all obligations of the partnership with his/her own entire property; (iii) Limited partners shall be liable for debts of the partnership only to the extent of their capital contribution to the partnership;
Joint stock company is an enterprise where (i) Its charter capital is divided into equal portions known as shares; (ii) Shareholders may be organizations and/or individuals; the minimum number of shareholders shall be three and shall not be restricted to any particular maximum number; (iii) Its shareholders shall be liable for debts and other property liabilities of such enterprise within the limit of the value of their capital contribution to the enterprise; (iv) Shareholders shall be entitled to freely transfer their shares according to the provisions of law;
Limited liability company (multi-member limited liability company and single-member limited liability company). A one-member limited liability company is an enterprise which is owned by one organization or individual (hereinafter referred to as the company owner); the company owner is liable for debts and other property liabilities of the company within the charter capital of the company. A limited liability company is an enterprise of which: (i) Members may be organizations and/or individuals; the total number of members shall not exceed fifty; (ii) Members are responsible for debts and other property liabilities of the enterprise within the amount of capital that they have committed to contribute to the enterprise; (iii) Capital shares of the members may only be transferred in accordance with the provisions of law.
Can Foreign Invested Enterprises Distribute Pharmaceutical Products in Vietnam?
Posted on tháng 4 07, 2021 by duc anh
Currently, with the complicated developments of the Covid-19 epidemic in the world in general and in Vietnam in particular, the research, production and import of Covid-19 vaccines are the matter that everyone is concerned about. On February 24th, 2021, the first batch of vaccine approved for import was transported to Vietnam by the Vietnam Vaccine Joint Stock Company.
Facing this situation, a number of foreign enterprises have expressed their opinions on the limitations imposed on foreign-invested enterprises in the field of distribution of pharmaceutical products in Vietnam. Vietnam has reserved no commitment to open the distribution of pharmaceutical products service market and has not committed to opening the distribution of pharmaceutical products service market under any trade agreement or international treaty up to the moment, because the pharmaceutical sector is sensitive, directly related to access to drugs and people’s health.
According to the provisions of the law, “distribution of pharmaceutical products” means the division, movement and storage of pharmaceutical products from the warehouse of the manufacturer/importer of such products or from a distributor to the end user thereof or to a distribution point or between distribution points by means of various transport methods. For distribution services, in the WTO Commitments, it is clear that pharmaceutical distribution services are excluded from the scope of commitments for all modes of supply. In addition, Appendix 03 of Circular 24/2016/TT- publicizing roadmaps for goods trade and goods trading directly related activities of foreign-invested enterprises in Vietnam, it is also recognized that pharmaceutical products are on the list of goods not entitled to distribution.
Regarding this issue, the Drug Administration of Vietnam expressed the following viewpoint: “The suspension of allowing foreign-invested enterprises in Vietnam to provide drug storage and transportation services is to prevent the distribution of disguised drugs in Vietnam, contributing to health security and towards the professionalization of the medicine distribution system in Vietnam.”
Point c, Clause 10, Article 91 of Decree 54/2017/ND-CP, effective from May 8, 2017, provides for cases ineligible to distribute drugs as follows:
“10. The entities that are entitled to import but not entitled to distribute drugs and medicinal ingredients in Vietnam must do activities related to distribution of drugs and medicinal ingredients in Vietnam except for drugs and medicinal ingredients they manufacture in Vietnam, including:
c) Providing drug/medicinal ingredient transport or storage services.”
According to this content, foreign-invested enterprises in Vietnam are not allowed to transport and preserve drugs, except for drugs and medicinal ingredients manufactured by that enterprise in Vietnam. It can be seen that the restriction on the right to distribute drugs to foreign-invested enterprises is aimed at ensuring health security, being proactive in drug supply and distribution, towards to professionalize the domestic drug distribution system as a foundation to support the development of the domestic pharmaceutical industry and contributing to better control of drug prices in the market.
Thứ Ba, 6 tháng 4, 2021
Which Areas Are Incentivized For Investment in Vietnam Under Decree No. 37/2020
Posted on tháng 4 06, 2021 by duc anh
Investors are always interested in areas which government incentivize for investment in Vietnam, to enjoy benefits i.e. tax reduction, tax exemption, land usage…which give them some help to grow the business in areas which are not economically potential without the help from the government when setting up company in Vietnam.
According to the regulations on business investment in Vietnam in Decree No.118/2015/ND-CP, investment projects eligible for investment incentives are entitled to tax and land policies in their performance. Accordingly, for businesses that invest in industries or areas enjoying investment incentives, there will be many advantages related to tax and using land when performance business.
According to the provisions of Appendix I, Decree No.118/2015/ND-CP, the fields are preferentially invested in many fields such as science and technology, electronics, mechanics, material production, and information technology, agriculture, environmental protection, infrastructure construction, education, culture, sports, health activities of People’s Credit Funds and microfinance institutions are specified in Appendix I Decree no. 118/2015/ND-CP.
However, with the continuous development of the economy, along with the development projects of many small and medium-sized enterprises, besides start-up projects, it is more suitable to the market economy and start-up situation of many investors, on March 30th 2020, the Government has issued Decree No.37/2020/ND-CP supplementing the list of preferential investment industries which will take effect from May 15th, 2020.
According to the provisions of Decree No. 37/2020/ND-CP, for business investment activities in accordance with the Law on Support for Small and Medium Enterprises with the following business lines which will be added to the list of industries to enjoy incentives for investment in Vietnam, including business investment in the product distribution chain of small and medium-sized enterprises, business investment in incubation facilities for small and medium-sized enterprises, business investment in technical facilities supporting small and medium-sized businesses, investing in a common working area for small and medium-sized start-ups.
The investors who invest in Vietnam in the business lines above in supporting industries for small and medium-sized enterprises from May 15, 2020, will be entitled to specific tax and land incentives specifically as required by law. Domestic and foreign investors could utilize the opportunity to make investment to enjoy the incentives in Vietnam when conducting businesses.
ANT Lawyers offer corporate establishment service to help clients with offices in Hanoi, Ho Chi Minh City, and Da Nang.
Temporary residence card in Vietnam
Posted on tháng 4 06, 2021 by duc anh
If a foreigner have been sponsored work permit in Vietnam to work or he/she decides to set up a company in Vietnam, he/she could be granted temporary residence card to live in Vietnam instead of applying and re-newing business or travel visas every three months.
We detail here some procedures which help foreigners to prepare for before applying for temporary residence card.
I. Subjects to be granted temporary residence card:
• Members of foreign representative agencies and their accompanying relatives (father, mother, wife, husband, children under 18 years old).
• Foreigners who work with the Institute of the Supreme People’s Procuracy, the Supreme People’s Court, the ministries, ministerial-level agencies, agencies attached to the Government and People’s Committees of provinces and cities directly under the Central Government and the Central offices of mass organizations, mass organizations.
•Foreigners who work in projects already approved by competent state agencies licensed in Vietnam.
• Foreigners who work with businesses in Vietnam has the work permit valued more than 01 year.
• Persons on the payroll of foreign representative offices and branches of economic organization, culture and other professional organizations of foreign non-governmental organizations based in Vietnam.
• Foreigners staying in Vietnam for other purposes.
II. Conditions for implementation
+ Time to stay in Vietnam more than 01 year;
+ Valid passport more than 01 year;
III. The composition, the number of records:
1) The composition profile, including:
• A written request of agencies, organizations and individuals offering, guarantee and propose for temporary residence card;
• 01 declaration of information of foreigners who apply for temporary residence, with photos and sealed by the agency or organization: A written request for temporary residence card (Form N7A); a declaration about Foreigners applying for temporary resident card (Form N7B)
• 02 3 x4 cm size photographs;
• 01 copies of passport, valid visa, immigration cards (bring original for comparison);
• 01 copies or photo (bring the original for comparison) proof of purpose to stay in Vietnam.
As the case may file appropriate documents: investment licenses, permits the establishment of enterprises, work permit in Vietnam, certificate of board members and permits the establishment of representative offices, marriage/birth registration.
2) The number of records: 01 (one).
IV. Implementing agencies administrative procedures:
Immigration management Department, Police provinces and cities directly under the Central Government.
V. Implementation time: 05 to 07 days;
VI. Subjects performed: by organizations and individuals;
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