WHAT FOREIGN INVESTORS NEED TO KNOW ABOUT TAXES IN VIETNAM

Foreign investors whom set-up company in Vietnam always face challenges to understand the tax system in Vietnam. The below briefly explains type of taxes in Vietnam for regular enterprises. In special cases, foreign enterprises are suggested to consult with tax lawyers in Vietnam before establishment and during the operation to ensure compliance

Major taxes which enterprises including both local and foreigners are subject to are corporate income tax, import and export taxes, and value added tax, and their employees are subject to personal income tax. Other taxes might be applicable depending on nature of business, such as natural resource tax, special consumption tax, and foreign contractor tax.

Corporate income tax (CIT) is governed under Vietnam Law on Corporate Income Tax. CIT is calculated by multiplying assessable income with the CIT rate. Assessable income is the difference between sales revenue and deductable expenses. In general, CIT tax rate in Vietnam is currently 22% and will be reduced to 20% starting Jan 1st, 2016.

Export and Import tax are governed under Vietnam Law on Export tax and Import tax. Export of finished goods is encouraged and export tax is 0%. Import tax will be as import tax tariff published by the government unless exempted for reasons of import to process for export, import to create fixed assets other other cases as the laws regulated.

Value added tax (VAT) is governed under Vietnam Law on Value added tax, applicable to goods and services sold in Vietnam. VAT is calculated by multiplying taxable price and VAT rate. The most common VAT rate is 10%. The rate level of 5% and 0% are applicable in certain cases.

Personal income tax (PIT) is governed under Vietnam Law on Personal income tax. Tax payers are resident, which taxable income includes income generated both inside and outside of Vietnam; and non non-resident, which taxable income includes income generated from Vietnam, regardless of the place where it is paid or received.

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WHERE FOREIGN INVESTORS OBTAIN INVESTMENT LICENSE IN VIETNAM?

To set up a business in Vietnam through foreign direct investment, foreign investors need to register the investment license from Vietnam Ministry of Planning and Investment (MPI).

Depending on investment business lines, investment conditions, scale of the projects, where investment project is located, other Vietnam State authorities would be involved.  MPI in Vietnam takes charge of developing legislation, guiding, consulting and coordinating with other State authority in regard to all investment in Vietnam.  Foreign investors apply for investment license at MPI which is acting as the contact point.  People’s Committee will be the government body that administer investment activities within its city or province and issue the investment license to the foreign investor.

In case the foreign investor setting-up  a business within an industrial zone, the management board of an industrial zone will have authority over the investment licensing process. For investment project which is larger than VND 300 billion (around USD 14.2 million) or in conditional investment area, MPI and other ministries will be involved in the evaluation process to recommend to the Prime Minister for approval.  Other ministries involved in investment project licensing would be Ministry of Trade and Commerce and Minsitry of Finance for settting up a trading company in Vietnam; Ministry of Science and Technology for investment in high-tech projects in Vietnam; Ministry of Education and Training for setting up education institute; Ministry of Health for investment in hospital in Vietnam, etc to ensure they are complying with the specific industry’s regulations.

At ANT Lawyers, a law firm in Vietnam with law offices in Hanoi and Ho Chi Minh City, we are able to assist clients in licensing and post-licensing matters to help clients with all questions and services in setting up and maintaining the company in Vietnam. We could be reached at email: ant@antlawyers.vn or office tel: +848 35202779.

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HOW FOREIGN ENTITY COULD SET-UP REPRESENTATIVE OFFICE IN VIETNAM

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam according to the Commercial Law No 36/2005 and Decree No. 72/2006/NĐ-CP dated July 25th, 2006 detailing the commercial law regarding Vietnam-based representative offices and branches of foreign traders.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.  Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Setting up a Representative Office is less complicated from setting up a company in Vietnam.  The Vietnam Department of Trade will be approving the establishment of Representative Office in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.  The time duration to establish a Representative Office is shorter than to establish a company.  There are fewer conditions to meet than conditions in setting up a company in Vietnam.  The main difference between a Representative Office and a company in Vietnam is that the Representative Office could not directly conduct profit making activities.

Rights of the Representative Office:

• To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;
• To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;
• To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;
• To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

Obligation of the Representative Office:

• Not to directly conduct profit making activities in Vietnam;
• Not to enter into commercial contracts of the foreign business entity or to amend or supplement such contracts already signed except where the head of the Representative Office has a valid power of attorney from the foreign business entity;
• To pay taxes, fees and charges and to discharge other financial obligations in accordance with the law of Vietnam;
• To report on the operation of the Representative Office in accordance with the law of Vietnam

A foreign company which has effectiveness business activities will be allowed to open the Representative Office in Vietnam if this company has real demand to open the market in Vietnam and meet conditions as below:

• Being a business entity or trader recognized by the law of the country or the territory (hereinafter referred to collectively as the country) where it has been lawfully established or made its business registration;
• Having been operating for at least one year after its lawful establishment or business registration in its country.

The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.

At ANT Lawyers, a law firm in Vietnam with offices i

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WORK PERMIT IN VIETNAM

Foreign employee working in Vietnam is required to have work permit issued by respective Department of Labour, War Invalids and Social Affairs (“DOLISA”) of province or city where the company that sponsor work permit registers the business.  Failing to comply would lead to foreign workers to be deported by Vietnam Public Security at the request of DOLISA.

Vietnam Labour Code and Decree 102/2013/ND-CP effective on Nov 1st, 2013 provide details of the regulations on foreign employment in Vietnam.  It is suggested that companies wishing to employ foreign workers and foreign workers to counsel with employment lawyers in order to ensure compliance.  Our employment lawyers in Vietnamkeep following up with the changes in labour regulations  in Vietnam to give our clients the best service.

As the current regulations, the foreign employee might be asked to present his/her work permit at entering or leaving Vietnam or when requested by government authority.  The companies seeking to employ foreign workers are only allowed to employ for managerial or technical positions which Vietnam employee could not meet the requirements of the jobs.  Before employment of foreign workers, the companies will have to report the demand to, and get the approval from the People’s Committee of the province or city where the employers register their business.

The dossiers submitted to DOLISA have to include: i) application form; ii) health certificate; iii) certificate of criminal record; iv) document to prove managerial or technical experience; v) approval of People’s Committee; vi) passport size pictures; vii) passport; viii) and documents related to the purpose of foreign workers in Vietnam i.e. labour contract, assignment letter. The work permit is valid for two years.

In order to seek further advice, please contact us at ant@antlawyers.vn or call + 84 35202779.  ANT Lawyers, your lawyers in Vietnam.

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HOW FOREIGNERS COULD MARRY VIETNAMESE WIFE

When a foreigner marrying a Vietnamese, this is cross cultural marriage with challenges and complexity in relationships which could be legally difficult.  The Vietnam laws on Marriage and Family on marriage and family relations involving foreign elements provide legal grounds to avoid false marriages to gain citizenship or conduct human trafficking.

The following should be taken into consideration when a foreigner marrying a Vietnamese. However due to the complexity, it is suggested family lawyers in Vietam to be consulted to ensure the correct processes and procedures are carried out in timely manner:

1.Marriage consultation:

If marriage registration between a foreigner and a Vietnamese belongs one of the following cases, Vietnamese citizen must be consulted by the provincial Marriage Consultancy Center: i) the age gap between two partners is 20 years or more; ii) this is the third marriage of the foreign partner, or the foreign partner has gone through a divorce with a Vietnamese citizen; iii) the partners do not completely understand about the families and backgrounds of each other; about the languages, traditions, customs, cultures, and laws on marriage and families of each other’s country.

After being advised on marriage consultation, Vietnamese citizen will be issued a certificate by Marriage Consultancy Center (hereafter referred to as Certificate) which is part of the application dossier.

When the Vietnamese citizens is fluent in a foreign language or foreigner is fluent in Vietnamese, and  the interviews at the Justice Department show that both sides have an good understanding of family circumstances, personal situation, and the understanding of language, customs, traditions, culture, laws on marriage and family in each country, the Certificate will not be needed.

2.Submission for marriage registration

One of two parties would submit directly to provincial Department of Justice of province where the Vietnamese citizen applicant resides.  A dossier of marriage registration is prepared including the following papers of each party:

a) The marriage registration declaration (standard form);

b) The papers of marriage status of each party:

Vietnamese shall provide the written certification of marital status issued by the People’s Committee where he/she resides.

Foreigner shall provide the documentary evidence on marital status of foreigners  issued by a competent agency of the country of which the applicant is a citizen.  In cases where foreign laws do not prescribe the certification of marriage status, it can be replaced by the certification of oath taken by the applicant that he or she concurrently has no wife or husband, in accordance with the laws of those countries; the written certificate of marriage eligibility issued by a competent agency of the country of which the applicant is a citizen (unless laws of this country do not regulate about this document); for foreigners who have already been divorced with Vietnamese citizens at foreign competent agencies, they must submit the written confirmation that the divorce which carried out abroad have been recorded in civil status book as prescribed by law of Vietnam.

c) The medical examination from a Vietnamese or foreign competent health organization, certifying that such person does not suffer from mental diseases or other diseases which make a person incapable to aware or control his/her acts;

d) Copies of personal papers, such as identity card or passport, passport or papers of substitute value such as travel document or residence card;

e) Copies of the household registration book, the temporary residence book (for Vietnamese citizens living in the country); permanent residence card, temporary residence card or temporary residence certificate (for foreigners residing temporarily or permanently in Vietnam).

f) Certificate of Marriage Consultancy Center on marriage to a foreigner that Vietnamese citizens have been given advice for marriage in compulsory cases mentioned above.

All documents provide by parties have to have valuation within 6 months to the date when the dossier is received.

3. Interviews for marriage registration to a foreigner in Vietnam

Within 15 days as from the date of receiving the complete and valid dossiers as well as fees, the provincial Department of Justice shall have the responsibilities to implement the direct interview at head office for both marriage partners in order to check, clarify personal matter, voluntary marriage and extent of understanding each other of both marriage partners.

If the interview result shows that two parties fail to understand status of each other, the provincial Department of Justice shall make an appointment for re-interview; the next interview shall be performed 30 days after the preceding interview.

In cases there are issues which need to be verified, the provincial Department of Justice dshall carry out necessary procedures to verify.

4. Certificate of marriage registration in Vietnam

After interviewing both marriage partners, studying and verifying the marriage registration dossiers, opinions of police agencies (if any), the provincial Department of Justice shall report result and propose settlement of marriage registration to submit to provincial People’s Committees for decision, enclosed with 01 set of marriage registration dossier.

Within 05 working days, after receiving the written submission of the provincial justice department together with the marriage registration dossier, the chairman of the provincial People’s Committee shall sign in the certificate of marriage and return dossier to the provincial Department of Justice for holding the ceremony for marriage registration.

In case refusal for marriage registration, provincial People’s Committees shall have a document clearly stating reasons thereof and send it to the provincial Department of Justice in order to notify both marriage partners.

5. Ceremonies for marriage registration in Vietnam

Within 05 working days, after the Chairman of the provincial People’s Committee signs the marriage certificate, the provincial Department of Justice shall hold ceremony for marriage registration.

The marriage registration ceremony shall be solemnly organized at the office of the provincial Department of Justice. When the marriage registration ceremony is held, both marriage partners must be present. The representative of the provincial Department of Justice shall preside over the ceremony, requesting both parties to state their final intention on voluntary marriage. If they agree to marry each other, the representative of the Department of Justice shall record the marriage in the marriage registers, requesting each party to sign on the marriage certificate, the marriage register and hand over the original marriage certificate to the husbands and wives, each with one certificate.

The marriage certificate shall be valid from the date the marriage registration ceremony is organized as provided. The grant of copies of the marriage certificate from the original registers shall be implemented by the provincial Department of Justice at the requests of the wives or husbands.

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JUDICIAL RECORD CARD IN VIETNAM

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

Judicial record card means a card issued by an agency managing the judicial record database and valid to prove whether or not an individual has a previous criminal conviction, is banned from holding certain posts, establishing or managing enterprises or cooperatives in case enterprises or cooperatives have been declared bankrupt by court.

Judicial record cards include: judicial record card No. 1, which shall be issued to Vietnamese citizens and foreigners who resided or are currently residing in Vietnam; and judicial record card No. 2, which shall be issued at the request of individuals who want to know their judicial records.

To obtain judicial record card No.1, the requesters who is Vietnamese citizens must apply at provincial-level Justice Departments in localities where they permanently reside or at the provincial-level Justice Department in the locality where the requester temporarily resides (in case they have no place of permanent residence) or at the provincial-level Justice Department in the locality where he/she resided before his/her departure (in case the requesters are residing overseas). The foreigners residing in Vietnam shall apply at provincial-level Justice Departments in localities where they reside or at the National Center for Judicial Records (in case they have left Vietnam).

Documents required include:

i) declaration requesting the issuance of judicial record cards;

ii) a copy of the identity card or passport of the person requested to be issued a judicial record card;

iii) a copy of the household registration book or certificate of permanent or temporary residence of the person requested to be issued a judicial record card.

In case of requesting the issuance of card No.1, individuals may authorize other persons to carry out procedures for requesting the issuance of judicial record cards.

Procedures for issuance of judicial record cards No. 2 to individuals comply with the provisions for card No.1. However, individuals who request the issuance of a judicial record card No. 2, may not authorize others to carry out procedures for such request.

During the process of applying for the Criminal Record, the applicant might have to work with the police agencies; the Court: in case there are not sufficient evidence at the police agencies to conclude that the applicant has no criminal records or the content of the applicant’s criminal records is not clear; People’s Committee of communes, wards and townships; agencies, organizations and agencies related proceedings: in case of coordination to verify the conditions of having his/her conviction automatically written off.

Let ANT Lawyers help your business in Vietnam.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  ANT Lawyers has law offices in Hanoi, Ho Chi Minh, and Da Nang City.

ANT Lawyers is a Vietnam law firm with international standards, recognized by Legal500, IFLR1000.  We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions.  The firm provides a range of legal services as following to multinational and domestic clients.

Commercial

Dispute Resolution

Debt Recovery

Employment

Foreign Investment

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NOTABLE IMPROVEMENTS IN VIETNAM INVESTMENT LAW 2014

Vietnam Investment Law 2014 taking effect from July 1st, 2015, replaces the Investment Law 2005 with notable improvements, especially the provisions on business registration in investment projects which foreign investors making investment in Vietnam or setting up business in Vietnam are welcome.

The new Vietnam Investment Law in 2014 has brought up the concept of “business investments” to replace the previous two concepts as “direct investment” and “indirect investment”.

Under the Investment Law 2005, prohibited investment sectors are generally and broadly defined i.e. detrimental to defense and security, national interests which are vague concepts subject to arbitrary explanation of the Vietnam State authorities. The prohibited business activities in the new regulations are listed down specifically.  This change has been considered as a huge development which confirm that the foreign investors have the right to conduct investment in Vietnam in the segments not prohibited by law.  The new law specifies 267 conditional investment areas which clearly define the restrictions in one document instead of referring to various laws.  This shall also avoid different interpretations of the legal enforcement and application of the laws in Vietnam.

According to the Vietnam Investment Law 2005, regardless of the proportion of foreign invested capital, all projects involving foreign ownership are subject to investment certificate. Under the new law, only the projects of foreign investors or enterprises with foreign investment capital contributed 51% of charter capital or more must apply for new registration certificate for the project investment of foreign investment. This is a big step to attract and encourage investment for foreign investors investing in Vietnam through reducing the amount of administrative formalities which foreign investors had to go through.

ANT Lawyers will be available to assist the clients when required dealing with the incorporation and post-licensing in Vietnam.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice.  We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions.  The firm provides a range of legal services as following to multinational and domestic clients.

Commercial

Dispute Resolution

Debt Recovery

Employment

Foreign Investment

Intellectual Property

International Trade and Taxes

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WHY DA NANG IS A PLACE FOR SETTING UP BUSINESS

Da Nang has been creating flexible policies, good environments attracting foreign investors setting up company, building factory, and developing service business.

Da Nang is a social and economic center of central area of Vietnam with the role as the center of industry, trade and tourism and service.  It is a seaport city, an important transport hub for the transit of domestic and international transportation. Presently, Da Nang has been rising as a comprehensive and sustainability developing city.

With the advantages of geographical location, people and nature, the leader of Da Nang is planning to build the city becoming a major tourist center of the country, developing tourism industry with entertainment centers and luxury resorts in Vietnam.

In practice, Da Nang has been reducing administrative procedures, creating favorable conditions for investors in obtaining certificate for investment.  In the meantime, the city also supports investors understanding the information and maintaining direct dialogue mode with businesses leaders and managers in order to promptly assist any difficulties encountered by investors in the process of project implementation. Da Nang’s leaders are famous in being proactive in providing the latest information about the law in investment, especially information on the process of changing investment certificate… to facilitate the investment plan of the investors whom are investing in Da Nang.  For investment projects in infrastructure construction using ODA capital, the city has been quickly implemented the clearance and compensation in time to hand over the project site to the investors as planned.

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What you Need to Know Before Setting up Company in Vietnam?

How to Set-up Company in Vietnam?

What are Forms of Investment in Vietnam?

To ensure the tourism environment and sustainable development, the city focuses on attracting projects in high technology industry, supporting industry and services with high added value i.e. information technology, education, healthcare and logistics…, especially favouring clean and quality projects rather than large projects but are likely to cause environmental issues.

Along with economic development, Da Nang also has activities and measures for environmental protection by investing in building projects to protect and improve the environment such as: modernization the sewer and wastewater treatment system (JICA), building east-west economic corridor (ADB)… to ensure sustainable and long term development of the economy.

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What are Taxes in Vietnam?

Compliance Reports in Vietnam

How to Protect Trademark in Vietnam?

How to Handle Disputes in Vietnam?

An important element for economic development is the local security. Da Nang has done a great job in maintaining public security in order to guarantee investors a stable and safe political, social environment for investors.

It can be seen that Da Nang converges suitable elements and really is a promising land for investors both domestic and international, to invest in entertainment, real estate, tourism, IT, healthcare, education services.

ANT Lawyers, a law firm in Vietnam offers clients legal service in Da Nang through our affiliate office located in Hoi An (covering Da Nang, Hoi An, Hue City), managed by an experienced corporate lawyers whom bring along extensive experience from leading law firms in Vietnam including Mayer Brown, handling a wide range of corporate and commercial matters with a particular emphasis on foreign investment, mergers and acquisitions and real estate; from planning, consultation to execution.

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Q&A ON COSMETICS REGULATIONS IN VIETNAM

There have been a number of questions arisen after the Webinar on Cosmetic Regulations in Vietnam on May 27th, 2015 and we would like to address those questions as following:

1. Has Vietnam fully implemented the ASEAN Harmonized Cosmetic Directive (ACD)? Yes. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries

2. Does Vietnam vary from the Regulation in any way(s)? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries

3. Does Vietnam require notification numbers on cosmetic packages?

No. The following contents must be presented on the label:

– The product’s name and function,

– The usage instruction,

– The full formula ingredients:

– The country where the product was made;

– The name and the address of organizations or individuals who are responsible for placing products on market (written fully in Vietnamese according to the business registration certificate or the investment license);

– Weight or volume,

– The manufacture lot number;

– The manufacture day or the expiry must be clearly presented (i.e.: day/month/year). The “expiry” or “the best using before date” can be exerted, if necessary, can add the instructed condition needs obey to make sure of the product’s stability.

– Warning about safety for usage;

4. Prior to exporting cosmetics to Vietnam, do we need to get a license or certificate for importing? If necessary, what are the requirements to obtain it? The party placing the products on the market need to do the product proclamation procedures.

5. As Vietnam is part of the ASEAN, electronic notification is therefore part of the cosmetics’ registration process. Nevertheless, a Free Sale Certificate can be still requested by the Vietnamese authorities. What is the reason of being for such a document? Mutual recognition has no more meaning in this kind of registration process.In the other hand, a Free Sale Certificate is a document provided to a responsible person (the person who place the product on the market), however some Vietnamese officials are expecting a Free Sale Certificate to be issued by the “made in” country’s authorities… what can be impossible in some cases, when the responsible person has no address in that typical country!

For the first problem, the competent agencies have not yet implemented the procedure of electronic notification.

For second problem, as per Chapter 1, Article 2, Clause 19: Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export domestics trader stated in CFS to confirms that the cosmetic is freely produced and sold in the export country. The export domestic trader may be manufacturers or other traders not manufacturer.

This CFS is mandatory.

For the procedure of proclamation, the organization, individual that is responsible for placing imported cosmetic product into Vietnam shall be organization, individual who registered for business in competent agency of Vietnam. They must present CFS to competent agency.

6. Can you tell us if this document is really mandatory and if so what should be its format for products manufactured abroad? Same as above

7. What activities will be taken during the post-market surveillance in Vietnam? By whom? Would they inspect some documents of the product? If yes, what documents?

Authority will be checking and inspecting the compliance of laws on the cosmetic production and the trading:

– The compliance of principles and standards of “cosmetic good manufacturing practice” of the Asian Southeast Association Nations (CGMP-ASEAN) or equivalence which are admitted by the ASEAN Cosmetic Association;

– The label writing;

– The Product Information File (PIF) regulated by the ASEAN;

– The cosmetic advertising.

Authority

– The Cosmetic Quality Checking Central agency is the Drug Administration department – the Ministry of Health;

– The local cosmetic quality-checking agency is the Health department of cities and provinces.

For documents of the product inspected:

As above mentioned, one of inspecting and checking contents is about Product Information File. The Product Information File involves of the following 04 parts:

– Part 1: Administrative documents and a summary of product;

– Part 2: Material quality;

– Part 3: Product quality;

– Part 4: Safety and efficiency.

Part 1 of the Product Information File must immediately be presented when required; others, if inefficiently, must be presented within 15-60 days since the consideration day in regard to the Functional agency’s request.

8. Will there be changes to the regulations in the coming months and what will these regulations be? As Vietnam is developing regulations to implement the ASEAN’s treaty, there could be changes that further align the Vietnam regulations with ASEAN’s regulations.

9. If so, are these strict regulations to discourage importation? There are no law that discourage of importation. The importer just has to follow the regulations at importation.

10. Free Sale Certificates have to be obtained from the country of manufacturer in Vietnamese regulations. The EU defines the ‘manufacturer’ as the Responsible Person who puts the product on to the open market, this means if the Responsible Person company is from the United Kingdom, the Free Sale Certificate should be issued by the United Kingdom’s health body. Why is there such a difference between the two regulations?

Obtaining country of origin FSC can be costly and time consuming; where as a UK Free Sale Certificate is free and quick. According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”

Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:

a) Name of issuing authority;

b) Reference number of CFS;

c) Date of issuance;

d) Name of issued product, good;

đ) Type or group of issued product, good;

e) Name and address of manufacturer;

g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;

h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

11. What are the health bodies Vietnam’s authorities will accept for country of origin Free Sale Certificates in China and Thailand? (we don’t understand the question, please clarify)

Some countries Free Sale Certificates will not allow artwork names to be used, only a production name, can we use a Product Technical File to prove that the product is the same? Vietnam regulations do not have regulations or instructions on artwork names on CFS.

Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:

a) Name of issuing authority;

b) Reference number of CFS;

c) Date of issuance;

d) Name of issued product, good;

đ) Type or group of issued product, good;

e) Name and address of manufacturer;

g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;

h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

12. If a product has an artwork name change, however, the product itself remains the same from when it was first registered (ingredients), can the previous Free Sale Certificate be used to register the product’s name change again? Vietnam regulations do not have regulations or instructions on artwork names on CFS.

Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:

a) Name of issuing authority;

b) Reference number of CFS;

c) Date of issuance;

d) Name of issued product, good;

đ) Type or group of issued product, good;

e) Name and address of manufacturer;

g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;

h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

13. If a product is manufactured in Vietnam, the business wishing to sell the product in Vietnam buys the product, however due to logistics it has to be exported out to the UK, then sent back to Vietnam to sell, do we need to provide documents such as a Vietnam country of origin Free Sale Certificate? In our opinion, in this case CFS will be issued by country of export: UK. According to Vietnam regulations, CFS is a certified document issued in the export country (not country of manufacturer) to the export trader to confirm the product is allowed to be sold in such country.

14. Could you please precise if the banned/restricted/admitted ingredients in the Official Letter 6577/QLD are the same as the one published in the ASEAN Cosmetic directive? The content of ingredients provided in Official Letter 6577/QLD is based on recently updated regulations of ASEAN Cosmetic Committee.

15. How are hair dyes classified in Vietnam? Hair dyes are classified into hair care products according to Annex No. 01 of Circular 06/2011/TT-BYT

16. How long does it take to receive the registration certificate for cosmetics in Vietnam? Within 03 working days since receiving the regular dossier and fee as provided.

17. What are the specificities for cosmetic product regulation in Vietnam in comparison to ASEAN Cosmetic Directive? No specificities for cosmetic product regulation in Vietnam in comparison to ACD. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.

18. Are there claims allowed in other ASEAN countries that are not allowed in Vietnam? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.

19. Is Free Sale Certificate required? Yes, CFS is required for application of product proclamation in Vietnam.

20. If our company wants to send some samples to customers in Vietnam, do we have to apply for a proclamation or is there an exemption? There are cases which cosmetics sample imported into Vietnam are exempted from proclamation which are categorized under following purposes: research, gift, and display at fair/exhibition. However other procedures might be applicable depending on the specific cases.

21. What about safety data based on alternatives to animal testing? Are they recognised by the Vietnam authorities or do we need to do it the regular way?

22. I wanted to clarify a question and answer that was raised during the Vietnam Cosmetics Regulation webinar. It is in regards to Free Sale Certificates (FSC) and where they should come from.

Currently we are obtaining country of origin FSC for our products where they were manufactured. As an example, if a product was made in Poland, we would obtain a Polish FSC, for our franchise business to register in Vietnam to sell.

During the webinar there was discussion of the FSC coming from the ‘export trader’ or the responsible person. As Marks and Spencer is the responsible person in the United Kingdom, and the products are shipped from the United Kingdom to our franchise business under a different name ‘Central Retail Group’ in Vietnam, would a United Kingdom FSC be accepted by the Vietnamese authorities?

Country of origin FSC from Poland, China and Thailand can be quite expensive and take a long time to obtain, however, a United Kingdom FSC is free of charge and easier to obtain.

According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”

Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:

a) Name of issuing authority;

b) Reference number of CFS;

c) Date of issuance;

d) Name of issued product, good;

đ) Type or group of issued product, good;

e) Name and address of manufacturer;

g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;

h) Full name, signature, position of person who issue the CFS and stamp of authority.

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