How Foreign Investors Comply with Reports Submissions in Vietnam

Foreign investors setting up business in Vietnam have to comply with statistics report submissions according to Vietnam laws. To ensure compliance, corporate lawyers should be consulted to ensure compliance with reports applicable to foreign owned enterprises in Vietnam.

As the current regulation, foreign owned enterprises are obliged to submit monthly, quarterly, six month and annual reports to the Vietnam Department of Statistics or State agency for foreign direct investment of respective province or city.

Monthly reports are applicable to businesses and projects operating in the industry: mining, processing industry, electricity, gas, water supply, waste disposal, water treatment, information and communications, real estate, transport, warehousing, trade and services.

Quarterly reports are applicable to businesses and projects operating in agriculture, forestry and fisheries, construction;

All foreign owned enterprises have to report every 6 months on employment and income of the employee;

On annual basis, all foreign owned enterprises have to submit reports on the identification information of the business; financial indicators reflecting business results including revenue by business lines, taxes, fees, expenses, and profit; and capital investments made during the year by investment sources and investment category.

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Vietnam Loosen Laws on Casino and Gaming Allowing Vietnamese to Try Luck

On 16 Jan 2017, Vietnam Prime Minister issued Decree 03/2017/ND-CP on casino including investment conditions and procedures of foreign investment in service, tourism, and entertainment with casino, including investment registration of foreign investors, business operation license eligibility, and notable three-year pilot plan that allow the Vietnamese playing in the casino.

Vietnam has allowed investment in the field of casino business and that foreign investors have been in Vietnam since 1995. But it is expected only when Vietnam law makers loosens the regulations on casino and gaming business allowing Vietnamese to come and try luck, foreign investors would be encouraged to invest in constructing real estate, entertainment projects providing services, tourism and entertainment with gaming and casino to serve the entertainment needs of the increasing population of Vietnam, and attract international tourists.

1. Vietnamese will be accepted at casino during three-year pilot

Casino will accept Vietnamese to try luck whom must be at least 18 years of age, with regular income from 10 million / month or more, and no close family ties with the casino business enterprises. Entrance tickets will be at around VND 1 mil (around USD 50) for 24 continuous hours per person or VND 25 million (around USD 1,200) per month per person.

2. Casino Operation

The casino enterprises can only provide casino in one location and such location must be separated from other business areas of entertainment.

3. Investment Registration and Business Operation License investing and operating Casino

Eligible investors wishing to invest and operate service, tourism and entertainment with casino have to make investment a minimum capital of USD 2 billion, and submit plans to manage the negative impacts of casino operations.

Investors meet investment conditions when being granted the investment registration, business certificate and operation license in casino; has disbursed at least 50% of total capital as regulated in the investment registration; layout area for casino business; employ proper casino operation manager; and have plans approved by the authority.

Decree 03/2017/ND-CP will become effective from 15 Mar 2017 and do not affect the organizations which have been granted permission.

Currently casino in Vietnam allows foreigners such as Do Son Casino in Hai Phong, Ho Tram Casino in Vung Tau, Casino Aristo International in Lao Cai, Silver Shore Casino in Da Nang, Casino Royal Quang Ninh, and projects Casino Hoi An, Casino Van Don, and Casino Phu Quoc.

Easing regulations on casino business will help prevent flyout capital of Vietnamese to visit casinos in neighboring countries such as Cambodia, Macao; help better manage the social order in the sensitive entertainment area in Vietnam and attract foreign tourists.

Furthermore, Vietnam hopes to further integrate regionally, and internationally, attract billions of dollars of foreign investment to sustain growth, and make tourism a key sector to further develop. However, Vietnam will also meet challenges arisen in management of smuggling, illegal transportation of foreign currency, gold, silver, precious stones, precious metals, money laundering, high-tech crime and terrorist financing. Further laws will be issued to cope with the changes along the way but the loosen of laws on casino and gaming is needed.

The laws on casino and gaming will be only the beginning of an inevitable trend that attract investment in tourism and entertainment construction project. The laws has been evolving and there will be changes in the coming time which ANT Lawyers in Hanoi, Da Nang and Ho Chi Minh City will monitor and provide relevant updates.

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What Lawyers Should Not Promise in Vietnam?

Lawyers in Vietnam have to follow the law in order to provide good legal services to clients.

In Vietnam, the law has continuously played an important role in the life and contribute to protect and maintain the stability and development of society. In the trend of integration of the world economy, the role of the law has once again been confirmed with a new level in order to contribute to promoting the integration of Vietnam into world economy and opens a new opportunity for those who are practicing law in general and lawyers in particular in Vietnam.

In general, lawyer profession in Vietnam has been a noble profession for the purpose of contributing to the protection of justice, while contributing to the socio-economic development. In reflection, lawyers themselves take professionalism as the basic foundation of the profession, and should always have the responsibility to self-improve skills and widen knowledge in various areas to meet the growing demands as Vietnam develops i.e. corporate, commercial, investment, construction, labour, dispute resolution, debt recovery…etc.

Sometimes, when providing legal services to clients in handling disputes claim against damages for breach of contractual obligations, or obtaining licenses in setting up company, work permits, temporary residence cards, the customer has requested a lawyer to promise and guarantee the results of the works.

The lawyer, whom represents the client to protect the legitimate rights and interests of the client, has to follow the law, and the ethics. Responding to the request of the client to promise and guarantee the result, the lawyer shall refuse because the outcome of such will depend on the facts and legal grounds of the matters.

The lawyer shall collect comprehensive information from the client then analyze possibilities of outcome. Lawyers should not promise the results or the percentage of success which could potentially lead to the wrong decision made by the client. If the results are not as customer’s expectation, it will be a great loss to the prestige, and the image of lawyers. A good lawyer will have the skills to analyze problems, look at the details, and propose solutions but cannot guarantee the outcome of a case. Each case is different and there are too many unknown factors, and the unanswered questions.

In a litigation case, the lawyers will tell the customers what they are facing, what the lawyers could do, the best situation and what is worst. Good lawyers will know how to analyze and clarify the issue. Both the client and the lawyer should have a positive attitude to solve the problems in regard to the disputing matters.

The only thing ANT Lawyers could promise in any case is that we will follow the laws of Vietnam.

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Joint Circular 02/2016/TTLT BNG-BTP on Civil Status Registration in Vietnam Consular Office Abroad

Joint Circular 02/2016/TTLT BNG-BTP of the Ministry of Foreign Affairs and the Ministry of Justice regulates the registration and management of civil status at the diplomatic mission agency, consular representative offices of Vietnam in foreign country. The Joint Circular is issued on June 30th 2016.

Under the provisions of this Circular, representative offices in the consular area where the parent of the child resides or where the child was born have to perform birth registration for the children that were born abroad, not yet performed birth registration in foreign competent authority and fall into one of the following cases, such as: Having parents who are nationals of Vietnam; Having mother who is Vietnam citizen, the father is a stateless or unidentified person; Having father or mother who is citizen of Vietnam, the remaining person is foreigner, the parents have written agreement on choosing Vietnam nationality for the child when implementing birth registration.

Birth registration dossier includes: Birth registration declaration; Birth certification or other documents issued by the competent authority certifying that the child is born abroad and the relations between mother and child; The written agreement of the parents on choosing Vietnam nationality for the child if the child has father or mother who is foreigner.

This Joint Circular takes effect from August 15th 2016.

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Conditional Business Lines Under Law on Investment in Vietnam

Law on amendment and supplement to Article 6 and Annex 4 on the list of conditional business lines stipulated in the Law on Investment has been ratified by the 14th national assembly of the Socialist Republic of Vietnam at the second meeting session dated November 22nd, 2016.

Accordingly, pursuant to the constitution of the Socialist Republic of Vietnam, the National Assembly issues the list of conditional business lines stipulated in the Law on Investment no. 67/2014/QH13.

The enterprises which are established to operate in the area of conditional business have to comply with conditions regulated by law before conducting business operation in Vietnam.

Foreign investor if wishing to set up company in the conditional areas has to meet additional investment conditions depending on international treaties, WTO commitment by Vietnam, and other specialized laws in Vietnam. It is advised that the foreign investor to contact Vietnam law firms to be advised on the establishment of company in Vietnam to receive the proper legal advice.

We are listing the conditional business lines for the reference below.

No. LINES OF BUSINESS

1. Manufacture of seals

2. Sale (and repair) of combat gear

3. Sale of fireworks other than firecrackers

4. Sale of camouflaged software and equipment used for audio and video recording and positioning;

5. Paintball gun business

6. Sale of military equipment and military goods for the use of the armed forces, military weapons, specialized military equipment and vehicles for the use of the army and police; special military components, accessories, materials and equipment and military engineering

7. Pawning services

8. Massage services

9. Sale emergency signaling devices

10. Debt collection services

11. Security services

12. Fire safety services

13. Lawyer’s practice

14. Notary’s practice

15. Judicial assessment in the fields of finance, banking, construction, antiques, relics, copyrights

16. Auctioneering services

17. Commercial arbitration services

18. Bailiff’s practice

19. Liquidation and safeguarding of assets of enterprises and cooperatives in the pending time of bankruptcy

20. Accounting services

21. Auditing services

22. Tax agent services

23. Customs brokerage services

24. Sale of duty-free goods

25. Bonded warehouse and container freight station business

26. Premises for conducting customs procedures, customs gathering, inspection and supervision for rent.

27. Securities trading

28. Securities registration, depository, offsetting, and liquidation services by Vietnam Securities Depository/organizations trading in listed securities and other securities.

29. Insurance business

30. Reinsurance business

31. Insurance brokerage

32. Insurance agents

33. Property assessment service

34. Lottery business

35. Casino video games for foreigners

36. Debt trade services

37. Ratings services

38. Casino business

39. Betting business

40. Voluntary pension fund management services

41. Oil and gas business

42. Gas trading

43. Manufacture and repair of liquefied petroleum gas (LPG) bottles

44. Commercial assessment services

45. Sale and destruction of industrial explosives

46. Sale of explosive precursors

47. Industrial explosives and explosive precursors –based business

48. Blasting services

49. Sale of chemicals other than prohibited chemicals stipulated in the International Convention on prohibition of development, production, stockpiling and use of chemical weapons on their destruction

50. Alcohol business

51. Sale of tobacco, cigarette, machinery and equipment for tobacco industries

52. Sale of foods under the administration of the Ministry of Industry and Trade

53. Commodity exchange operation

54. Electricity generation, transmission, distribution, wholesale, retail, import, export and consultancy

55. Rice export

56. Temporary import and re-export of goods subjected to special excise duty

57. Temporary import and export frozen foods

58. Temporary import and re-export of goods on the List of used goods

59. Franchising

60. Logistics services

61. Sale of minerals

62. Sale of industrial precursors

63. Commodity trading and business activities directly related to commodity trading by foreign investors and foreign-invested business entities

64. Multi-level marketing business

65. E-commerce business

66. Petroleum business

67. Energy audit

68. Vocational training

69. Assessment of the quality of vocational education

70. Occupational skill assessment services

71. Occupational safety inspection services

72. Occupational safety and health training

73. Employment agencies

74. Overseas employment services

75. Voluntary drug detoxification services

76. Outsourcing

77. Road transport services

78. Automobile maintenance

79. Manufacture, assembly and import of automobiles

80. Motor vehicles inspection services

81. Driver training services

82. Traffic safety inspector training services

83. Driving test services

84. Traffic safety inspection services

85. Waterway transport services

86. Building, repair and renovation of watercraft

87. Inland watercraft crewmen and operator training services

88. Training, recruitment and supply of marine crews

89. Maritime safety services

90. Shipping services and shipping agencies

91. Towage services

92. Import and demolition of used ships

93. Building, renovation and repair of ships

94. Seaport operation business

95. Air transport business

96. Design, manufacture, maintenance and testing of aircrafts, their engines, propellers, avionics and equipment thereof in Vietnam

97. Airport operation business

98. Aviation service at airports

99. Air navigation services

100. Flight crew training services

101. Rail transport business

102. Rail infrastructure business

103. Urban railway business

104. Multimodal transport

105. Transport of dangerous goods

106. Pipeline transport business

107. Real estate business

108. Provision of training in real estate brokerage and property exchange operation

109. Provision of training in apartment building operation.

110. Construction management consulting services

111. Construction surveying services

112. (Construction) design and assessment services

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Business Conditions for Condominium Management Training Service

On July 1st 2016, the Government issued Decree No. 79/2016/ND-CP guiding the business of training service, improving the professional knowledge, management profession and operation of condominium.

Accordingly, organizations and individuals providing the above services must fully satisfy the 05 following conditions:

– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.

– Second, has facility and classroom to ensure sufficient seat for students and location for student to practice on professional knowledge and practice.

– Third, has syllabus or teaching materials consistent with training framework program that promulgated by the Ministry of Construction.

– Fourth, has a minimum of 40% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.

– Fifth, being recognized by the Ministry of Construction or the agency authorized by the Ministry of Construction as qualifying for business of condominium management training service.

In addition, this Decree also provides for conditions for business of real estate brokerage practice training service as follows:

– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.

– Second, has facility and classroom to ensure sufficient seat for students and location for student to practice on knowledge of real estate brokerage and administration of real estate trading floor.

– Third, has syllabus or teaching materials consistent with training framework program that promulgated by the Ministry of Construction.

– Fourth, has a minimum of 30% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.

Decree No. 79/2016/ND-CP officially takes effect upon signing.

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Licensing for Foreign Contractor

Under the provisions of the Vietnam law for operations of foreign contractors in Vietnam in the fields: investment and construction consulting, supply of materials and technology equipment together with technical services related to the construction works, construction of work, foreign contractors must apply for a contractor license.

Conditions for obtaining permits for foreign contractor in Vietnam:

Case for bidding packages that are subject to compulsory application in accordance with the bidding law of Vietnam: Won the bid or select the bid.

– Had won the bid or can select the bid.

– Had forwarding bid contract.

Case for bidding packages that are not subject to compulsory application in accordance with the bidding law of Vietnam:

– Had won the bid or can select the bid.

– Had forwarding bid contract.

Meeting all the conditions and capability that are consistent with contracted works prescribed by the law of Vietnam.

In all cases that foreign contractors are assigned the bid (due to win the bid through bidding or select the bid), foreign contractors have to codeshare with Vietnam contractors or have to use Vietnam sub-contractors (except the cases that are allowed by Prime Minister or prescribed by the law of Vietnam).

Foreign contractors have to commit to fully implement the provisions of the law of Vietnam relating to contracting activities in Vietnam.

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Tax Obligations for Foreign Entity Doing Business in Vietnam

The applicable taxes including value added tax (VAT), corporate income tax (CIT) and personal income tax (PIT).

On August 6th 2014, the Ministry of Finance issued Circular No. 103/2014/TT-BTC guiding the implementation of tax obligations that are applicable to foreign organizations and individuals doing business in Vietnam or having incomes generated in Vietnam.

Taxpayers: foreign contractors, foreign subcontractors; organizations established and operated under the law of Vietnam, organizations register to operate under the law of Vietnam, other organizations, individuals producing and trading.

The applicable taxes including value added tax (VAT), corporate income tax (CIT) and personal income tax (PIT).

Taxable income of foreign contractors and foreign subcontractors is income derived from the provision and distribution of goods; provision of service, service in association with goods in Vietnam on the basis of the contractor contract and subcontractor contract. 

CIT Payable = Revenue subject to CIT x CIT rate calculated on taxable turnover

Subjects liable for VAT: services or services associated with goods provided by foreign contractors, foreign subcontractors on the basis of the contractor contract, subcontractor contract to use for manufacturing, trading and consumption in Vietnam.

Incomes arising in Vietnam of foreign contractors and foreign subcontractors are earnings received in any forms on the basis of the contractor contract, subcontractor contract (except for cases specified in Article 2, Chapter I of this Circular), regardless of the place conducting business operations of foreign contractors and foreign subcontractors.

Circular specifically instruct the following cases:

1. Pay VAT by deduction method; pay CIT on the basis of cost and revenue declaration to determine taxable income.

2. Pay VAT and CIT by percentage on turnover.

3. Pay VAT by deduction method; pay VAT by percentage on turnover.

Issued together with Circular 103 is the tax declaration form for foreign contractor.

This Circular takes effect from October 1st 2014, replaces Circular No. 60/2012/TT-BTC dated April 12th 2012 of Ministry of Finance guiding the implementation of tax obligation applicable to the foreign organizations and individuals doing business in Vietnam or having income in Vietnam.

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Decree 118/2015/ND-CP Guiding the Investment Law 2014

Decree 118/2015/ND-CP was issued on November 12th 2015 by the Government. It takes effect from December 27th2015 clearly regulates some regulations of the Law on Investment on the application, control, publish investment business condition; measures to ensuring investment, investment incentives, investment procedures, operational implementation of investment projects and state management of investment projects.

Regarding investment conditions in Vietnam:

– In terms of the business investment sectors, investors may invest in conditional business lines when they meet the conditions of license, practicing certificate, certified professional liability insurance or other forms of required documents under the provisions of the covered agreements that Vietnam has signed or specific regulations of the law of Vietnam.

– In addition, investors also have to meet other conditions such as charter capital (for a certain number of business lines); forms of investment; scope of investment activities; Vietnam partners to join the investment execution.

– The form of investment for foreign investor:

+ Establish economic organization.

+ Capital contribution or share purchase.

+ Business cooperation contract.

+ Receive transfer of investment project.

– Foreign investors when investing in Vietnam in addition to meeting conditions like investor Vietnam, they will have to meet other specific conditions. Particularly for investors that have both Vietnam and foreign citizenships, they will be able to choose to apply the conditions for foreign investor or Vietnam investor.

On the issue of investment incentives, investors will receive incentives from the State in the following cases:

– Projects under the business lines of investment incentives.

– Investing in areas with difficult economic conditions.

– Project with capital from 6000 billion VND and will be disbursed within a period of 3 years.

– Investing in projects in rural areas and use more than 500 employees.

– Investment project in the fields of science and technology.

– For investment projects in Section 3 and 4 above will be entitled to preferential investment projects in areas with difficult economic conditions. The cases that projects simultaneously under both Section 1 and 2 above shall also enjoy incentives according to investment project in areas with difficult economic conditions.

Distinguishes 3 types of projects:

– The investment project that is not subject to the investment policy decision.

– The investment project under the jurisdiction on investment policy decision of the provincial People’s Committee.

– The project that is not subject to the granting of investment certificate.

In particular, for the project’s land that is granted, lease or allow the transfer of land use purposes by the State, it is necessary to deposit to ensure the investment. The deposit rate will be 3%, 2% or 1% depending on the scale of capital is 300 billion VND or above. Depends on the enjoyed incentives that the amount of deposit will be reduced according to different rate (the typical reduction rate is 25% or 50%).

Regarding the transfer of investment project:

Investor is allowed to transfer part or the whole of their investment project to other investor under the provisions of the law on investment (paragraph 1, article 45). In case when the transfer of projects generates income, investors must comply with the relevant tax obligations.

In addition, the Decree 118/2015 also provides details about:

– The procedures for the adjustment of investment projects in the case of division, separation, merger and transformation of economic organization (Article 38);

– The procedures for the termination of investment projects (Articles 41, 42);

– The investment procedures in the form of capital contribution, share purchase and capital contribution of foreign investors.

Decree 118/2015/ND-CP takes effect from December 27th 2015.

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Decree No. 59/2015/ND-CP on Management of Construction Investment Project

On June 18th 2015, the Government issued Decree No. 59/2015/ND-CP on the management of construction investment project. Notably, there is provision on the issuance of construction practicing certificate for individuals who are Vietnam citizen, foreigners that are legally conduct construction activities in Vietnam to take over the position, engaging in works for that position or independent practicing as prescribed.

In order to be certified, individuals must have the capacity for civil acts; have residence permit in Vietnam (for foreigners and Vietnamese residing abroad); meets the requirements of professional, experience examination and legal knowledge relating to the professional practicing field; have university degree in suitable majors, have experiences joining the work with the content requesting for practicing certificate issuance from 7 years or more for the grade I certificate, 5 years for the grade II certificate and 3 years if individuals have university degree or from 5 years if they have degree of college, professional secondary school for the grade III certificate.

Construction practicing certificate is valid for the maximum period of 5 years. The construction practicing certificates that were granted by competent State agencies are allowed to continue to use until expiry; after March 1st 2016, individuals wishing to use practicing certificate must implement procedures requesting for certificate issuance under the new rules.

Particularly for individuals, foreigners or Vietnamese residing abroad that had practicing certificates which are granted by the foreign agencies and organization, when practice construction activities in Vietnam from 6 months upwards shall be recognized to practice. The case of practicing in Vietnam from 6 months upwards, it is necessary to convert the certificate at the Ministry of Construction.

Other notable content of the Decree is the regulation on the publication of information about capacity of the organizations involved in construction activities. Accordingly, organizations involving in the construction works have to submit information about their capabilities to the professional agencies to to be posted publicly on the website managed by that agency.

This information is the basis for the selection of organizations and individuals involved in the planning, establishment and verification of the construction project; management of construction investment project; surveying, construction supervision…

Decree No. 59/2015/ND-CP takes effect from August 5th 2015.

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Legal Procedures Post Licensing in Vietnam

After establishing a company in Vietnam, the compay has to perform a number of legal procedures for compliance purpose.

Establish company inVietnam       

First, they have to declare the license tax. The tax declaration should be submitted to tax authorities. If the taxpayer has branch in the same province, the tax declarations of the branch should be submitted to the taxpayer’s tax authority. On the other hand, if the taxpayer has branch in another province, the tax declarations of the branch should be submitted to the tax authority of the branch. In case when the taxpayer does not have a permanent business location, the tax declaration should be submitted to the sub-department of taxation where the business is located or where the taxpayer resides. License tax is submitted annually and if the taxpayer has declared and paid license tax, he is not required to submit license tax declaration in the next year if the amount of license tax payable is not changed. In case the taxpayer amount of license tax payable in the next year is changed, tax declaration shall be submitted by December 31st of that year.

Second, the enterprise has to conduct the VAT (value added tax) declaration. The taxpayer that has just begun his business shall declare VAT quarterly. In the next calendar year after 12 months of business, VAT declarations shall be declared whether monthly or quarterly depending on the revenue from the sale of goods and/or services in the preceding calendar year (12 months). VAT shall be declared monthly or quarterly throughout the calendar year and the 3-year period. For example, the first stable period begins on October 1st, 2014 and ends on December 31st 2016.

Third is the CIT declaration (corporate income tax). The CIT declaration should be submitted to the supervisory tax authorities. According to business result, the taxpayer shall make the quarterly tax payment within 30 days of quarter succeeding the quarter in which tax is incurred; they shall not submit the provisional CIT declaration quarterly.

The fourth is the invoice printing. Before the placing first order for invoices, the company must send a written request for permission to use ordered invoices to the supervisory tax authority. Before the business uses invoices for its sale of goods and services, except for invoices purchased from or provided by the tax authority, the business have to send a notice of invoice publication together with a sample invoice to the tax authority.

Every quarter, seller of goods and services shall submit the invoice using report to the tax authority, even when there are no invoices have been used during the period. The report of the first quarter shall be submitted by April 30th, second quarter by July 30th, third quarter by October 30th, and forth quarter by January 30th of the next year. If no invoices are used during the period, the quantity of used invoices in the report shall be zero (0).

The fifth is the bank account. The opening of bank account to conduct transaction with customer is necessary because according to the ministry of Finance, the invoice valued of 20 million VND or above should be transferred through bank. Within 10 days from the day that enterprise opens bank account, the company have to notify the bank account number to the competent tax agency.

The sixth also the last one is labour and social insurance. If the contract between enterprise and employee has duration of over 3 months, it is subjected to compulsory social insurance.

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US Investors Set up Business in Ho Chi Minh City

United States (US) businesses are expecting to pour investment capital and set-up business in Ho Chi Minh City(HCMC) in the near future, when Vietnam and the US are members of the Trans-Pacific Partnership agreement (TPP).

Statistics from the Department of Planning and Investment of HCMC showed that in 2015, the city has attracted 26 investment projects from the US with a total capital of approximately 135.4 million USD. In the first 2 months of 2016, the US has invested an additional of 4 new projects with total capitals of 1.56 million USD. It is forecasted that after TPP takes effect, the number will increase exponentially.

The industrial zones in HCMC are attracting the most investment within three years. Currently there are more than 300 projects worth more than 600 million USD. With the launching of TPP, the city hopes to receive a new wave of investment from US businesses. The efforts to reform the city’s administration procedures are creating favorable environment for US businesses to increases investment in HCMC.

According to the representative of the US Consulate in HCMC, diplomatic relation between Vietnam and the US is getting better, creating conditions and opportunities for US investors to come and set up business in HCMC. As recognized by the American Chamber of Commerce in Vietnam (Amcharm), businesses from the 2 countries feel very excited after exploring the investment environments of each other.

According to the Amcham’s representative, the promotion of the free trade agreements and especially TPP is bringing Vietnam and the US to the center of trade cooperation. It is reflected positively in 2015 with growth rate reached 45 billion USD in terms of sales, increased by 20% compared with 36 billion USD in 2013. Currently, Vietnam is also the leading countries in ASEAN on trade balance with the US when Vietnam accounting for 25% of export turnover of the area and this figure will continue to increase in 2020.

According to representatives of the Department of Planning – Investment in Ho Chi Minh City, Vietnam American investors to increase mainly in the field of real estate, banking, services, processing technology. This is a positive signal for bringing high-income jobs for local workers. The goal of the 2020 Vietnam brought exports to the US increased by 300 billion dollars.

According to representatives of the Department of Planning and Investment of Ho Chi Minh City, investment from the US to Vietnam increased mainly in the field of real estate, banking, services, processing technology. This is a positive signal because it brings high-income jobs for local workers. The goal of Vietnam is that till 2020, export turnover to the US will increase by 300 billion USD.

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Maritime Insurance: Complexity and Disputes

In the insurance sector, the insurance of goods transported by sea is much more complex and causes most disputes in the process of claim settlement.

Marine insurance is the insurance operations related to the operation of the ship, the human or the goods are transported on the sea or the insurance operation risks at sea, on land, in river relating to sea voyage

The import and export activities of Vietnam are growing strong in recent years. Therefore, the revenue from cargo insurance is growing well. Insured clients are companies export and import of goods, logistics companies, shipping companies, the investors and contractors of projects…

Risks for cargo insurance is not high, mainly are risks occurred during transportation.The loss ratio of the market is quite low, which was 27% in 2012, 21.6% in 2013 were 21.6% (excluding the losses that are being resolved), with the causes mainly are deficiencies and damages in transportation process.

Understanding the principles of the compensation in maritime insurance will help us to limit the disputes. When incident happen, insurance lawyers in shipping, transportation sector are always called in for advice and dispute resolution.

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License to Organize International Conference for Business

The organizing of international conference or conference without international element must be approved by the competent state authority in accordance with law. The reason is that the conferences have to be managed by the authorities competent in terms of the contents of the conference, ensuring that no policies and laws are violated.

Establish business inVietnam

In this article the author would like to introduce the order and procedures for organizing international conference in Vietnam under the provisions of the current law of Vietnam.

International conference is a meeting activity with foreign element that is held in the form of a direct meeting on the territory of Vietnam, or held in the online form with at least one bridgehead is within the territorial of Vietnam. It includes:

– Conferences organized by Vietnam agencies and organizations with the foreign participation or sponsorship;

– Conferences organized by foreign agencies and organizations.

Under the provisions of the law of Vietnam, the competent authority that permit the organization of international conference is Prime Minister for the high-level international conference with participants are heads, officials, ministers or equivalent positions of countries, territories and international organizations; international conference with contents related to politics, security, defense, ethnic, religion, human right, border or within the range of state secrets. The heads of the central and local authorities have right to decide on the organization of international conferences that are not under the above cases and in accordance with the powers and responsibilities of their management.

In order to get the license to organize international conference, organizations have to follow the following procedures:

– Get written opinion of the management authority. The management authority has the responsibility to respond in writing within a period not exceeding 15 days from the date of receipt of the request.

– Have the report together with organizational scheme and submit to the heads of the competent authority for approval. The time limit for submission is at least 20 days before the expected organizing day. The scheme must specify:

+ The reason, name of organization, purpose of the conference;

+ Time and venue for conference organization; attractions, surveys (if any);

+ Form and technology of the conference organization (in the case of organizing online conference);

+ Contents, work programs and activities on the sidelines of conference;

+ Participants in the organization of conference: the Vietnam authorities, the foreign agencies, funding agencies (if any);

+ Participants: number and structure of participants, including Vietnam and foreign delegates;

+ Funds;

+ Written opinion of the concerned agencies and localities (if any).

– Conducting conference in accordance with programs and schemes that have been approved by the competent authorities; complying with the current regulations on spending and the financial settlement.

– Send a report summarizing the results of conference for heads of the competent authority that has approved the conference organization within 15 days after the end of the conference.

Finally, it is clear that Vietnam law has fairly tight regulations on the procedure to organize international conference, aimed at eliminating the spreading of unhealthy information, opposing the policy of the state, creating healthy media and culture environment.

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How To Enter Vietnam Legally with Visas and Temporary Residence Card

Foreign visitors have been to Vietnam for purposes to visit friends, family members, travel, or work.

As Vietnam has become more attractive for economic investment and tourism destinations, more and more have been seeking to enter Vietnam for work purpose, and leisure purpose. It is important that travelers have suitable visas and entrance cards, and follow the laws. Failing to follow the law on immigration would result in blacklist, deportation creating unnecessary hassles, especially for business men seeking investment in Vietnam.

ANT Lawyers has assisted a number of clients with immigration matters due to overstaying time as prescribed on visas, being black-listed due to failing to adhere to regulations of work permits and have learnt that in many cases the client do not have full understanding of consequence of obeying the immigration laws in Vietnam.

On Jun 30th, 2016, the Ministry of Foreign Affairs has issued the Cicular No: 04/2016/TT-BNG details Vietnam regulation on entry, exit, transit and residence of foreigners in Vietnam that layouts process and procedures in regard to applying for Visas, Temporary Residence Card to enter and stay in Vietnam legally for the right purpose.

Pursuant to the Law on Entry, Exit, Transit and Residence by foreigners in Vietnam dated June 16, 2014;

Pursuant to the Law on issue of legislative documents dated June 03, 2008;

Pursuant to the Government’s Decree No.58/2013/ND-CP defining the functions, responsibilities, entitlements and organizational structure of the Ministry of Foreign Affairs

Pursuant to the Government’s Decree No. 64/2015/ND-CP dated August 06, 2015 on cooperation among Ministries, Ministerial-level agencies, People’s Committees of provinces and centrally-affiliated provinces (hereinafter refer to as “province”) in management of entry, exit, transit and residence by foreigners in Vietnam;

The Minister of Foreign Affairs hereby issues this Circular providing guideline for procedures for issue of visa and temporary residence cards, and extension of temporary residence permit to foreigners in Vietnam within the jurisdiction of the Ministry of Foreign Affairs.

Chapter I

GENERAL PROVISIONS

Chapter II

POWER AND PROCEDURES FOR ISSUE OF VISAS AND TEMPORARY RESIDENCE CARDS AND EXTENSION OF TEMPORARY RESIDENCE PERMITS

Chapter III

IMPLEMENTATION

Read More: https://www.antlawyers.vn/library/visa-temporary-residence-card.html

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Top 10 Challenges of Doing Business in Vietnam

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

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

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

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

Starting a Business

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

Dealing with Construction Permits

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

Getting Electricity

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

Registering Property

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

Getting Credit

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

Protecting Investors

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

Paying Taxes

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

Trading Across Borders

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

Enforcing Contracts and Resolving Insolvency

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

Culture

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

ANT Lawyers

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

How ANT Lawyers Could Help Your Business?

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

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