ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Friday, June 24, 2016

JUDICIAL RECORD CARD IN VIETNAM

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


Judicial record card means a card issued by an agency managing the judicial record database and valid to prove whether or not an individual has a previous criminal conviction, is banned from holding certain posts, establishing or managing enterprises or cooperatives in case enterprises or cooperatives have been declared bankrupt by court.
Judicial record cards include: judicial record card No. 1, which shall be issued to Vietnamese citizens and foreigners who resided or are currently residing in Vietnam; and judicial record card No. 2, which shall be issued at the request of individuals who want to know their judicial records.
To obtain judicial record card No.1, the requesters who is Vietnamese citizens must apply at provincial-level Justice Departments in localities where they permanently reside or at the provincial-level Justice Department in the locality where the requester temporarily resides (in case they have no place of permanent residence) or at the provincial-level Justice Department in the locality where he/she resided before his/her departure (in case the requesters are residing overseas). The foreigners residing in Vietnam shall apply at provincial-level Justice Departments in localities where they reside or at the National Center for Judicial Records (in case they have left Vietnam).
Documents required include:
i) declaration requesting the issuance of judicial record cards;
ii) a copy of the identity card or passport of the person requested to be issued a judicial record card;
iii) a copy of the household registration book or certificate of permanent or temporary residence of the person requested to be issued a judicial record card.
In case of requesting the issuance of card No.1, individuals may authorize other persons to carry out procedures for requesting the issuance of judicial record cards.
Procedures for issuance of judicial record cards No. 2 to individuals comply with the provisions for card No.1. However, individuals who request the issuance of a judicial record card No. 2, may not authorize others to carry out procedures for such request.
During the process of applying for the Criminal Record, the applicant might have to work with the police agencies; the Court: in case there are not sufficient evidence at the police agencies to conclude that the applicant has no criminal records or the content of the applicant’s criminal records is not clear; People’s Committee of communes, wards and townships; agencies, organizations and agencies related proceedings: in case of coordination to verify the conditions of having his/her conviction automatically written off.
For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, please visit www.antlawyers.vn.  ANT Lawyers has law offices in Hanoi, Ho Chi Minh, and Da Nang City.
ANT Lawyers is a Vietnam law firm with international standards, recognized by Legal500, IFLR1000.  We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions.  The firm provides a range of legal services as following to multinational and domestic clients.

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.

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.
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.
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.

Tuesday, June 21, 2016

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.

Monday, June 20, 2016

HOW COULD A VIETNAMESE CHANGE THE NAME?

According to the civil laws in Vietnam, a citizen’s full name including first name, middle name and last name has been registered at birth in the birth certificate when propertly issued. If a Vietnamese wishes to change the name, there must be a legitimate reasons and the process and procedure have to follow Vietnam Civil Code.

Individuals may request competent state agencies to recognize the change of name in the following cases:
a) At the request of person with name which the use such names causes confusion, emotional impact on family, honor, rights and lawful interests of that person;
b) At the request of the adoptive parents about changing names for adoption or adopted child ceases adoption with the adoptive parents or when the birth parents request to regain the name that originally used;
c) At the request of the father, the mother or the child when determining parents of children;
d) Changing the family name of a child from their father’s family name to their mother’s family name or vice versa;
e) Changing the names of persons found their origins;
f) Change the name of the persons which gender is redefined;
g) The other case law on civil registration regulations.
Due to the complexity of the process in some cases, a law firm in Vietnam could help with a service which clients could same time and cost rather than trying to carry out the process themselves.

CONDITIONAL INVESTMENT SECTORS AND INVESTMENT CONDITIONS IN VIETNAM

When setting up a trading company in Vietnam, beside other conditions, the foreign investors have to prove experience in trading area.  Areas such as banking, financial services, real estate, security services will require minimum investment.   Foreign investment lawyers should be consulted for advice on investment licensing matters.

In general, foreign investors making investment in Vietnam are encouraged.  However, there are areas although not prohibited, but are “conditional” areas including the project could affect national defense, security, social order and safety; finance and banking; field that affect public health; culture, information, press, publishing; entertainment services; the real estate business; prospecting, exploring and exploiting of natural resources, ecological projects and the environment; education and training, and professional services i.e. legal, accounting, tax…
The conditions required by Vietnam laws on investment toward the foreign investors are business requirements that the investor must meet after the incorporation of the company, not as a condition for receiving the investment license. However, in the case of a foreign investor applies for an investment license for a new project, the law requires that all business conditions must be satisfied before the grant of the investment license.
Conditions that the foreign investors have to meet when investing in conditional business could be related to the forms of the investment, the nationality of foreign investors, the professional expertise of the investor, the scale of investment projects, type of goods and services, time implementation of investment projects.

Tuesday, June 14, 2016

WHY INVESTORS SHOULD SET-UP BUSINESS IN PHU QUOC

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


Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia.  Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.
Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.
Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.
The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.
Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.
Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.
The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.
ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Phu Quoc through its affiliate office.  We assist clients needing legal service in obtaining investment certificate, business registration, or other  licensing procedures 

COSMETIC REGULATIONS IN VIETNAM 2015 WEBINAR

ANT Lawyers has teamed up with Chemlinked, a cosmetics portal to organize a Webminar on the topic of “Overview of Cosmetics Regulations in Vietnam 2015” on May 27th, 2015.

You could register to attend the Webminar free of charge here.
Mr Tuan Nguyen, an attorney at law of ANT Lawyers, a law firm in Vietnam will walk you through the regulations of cosmetics in Vietnam in general in the endeavor to comply with the ASEAN harmonized cosmetics regulatory scheme signed off since 2003, the regulations on cosmetics labeling, cosmetics proclamation, cosmetics advertising, and the considerations for setting up a trading company in Vietnam to import and place the cosmetic products on the market for sales.
For further information or advice, please contact ANT Lawyers, your lawyers in Vietnam via emailant@antlawyers.vn or tel (848) 3520 2779.
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.

FORMS OF INVESTMENT IN VIETNAM

Foreign investors when setting up business in Vietnam need to be advised by a law firm in Vietnam on forms of investment.


According to the Vietnam Law on Investment (2005), foreign investors can invest in Vietnam through direct investment and indirect investment.
The direct investment is when the investor invests its invested capital and participates in the management of the investment activities, includes:
–          To establish economic organizations in the form of one hundred per cent (100%) capital of domestic investors or one hundred per cent (100%) capital of foreign investors.
–          To establish joint venture economic organizations between domestic and foreign investors.
–          To invest in the contractual forms of: BCC, BO, BTO, and BT.
–          To invest in business development.
–          To purchase shares or to contribute capital in order to participate in management of investment activities.
–          To invest in the carrying out of a merger and acquisition of an enterprise.
–          To carry out other forms of direct investment.
Foreign investor will be considered for acceptance by the competent authorities and be granted Investment Certificate.
Indirect investment means a form of investment whereby the investor contribute the capital but do not participate directly in the management of the investment activity, includes:
–           Purchase of shareholding, shares, bonds and other valuable papers;
–           Through securities investment funds;
–           Through other intermediary financial institutions.
Types of enterprise for foreign investors to invest in Vietnam
a)     Limited Liability Company
Limited Liability Company is a form of enterprise which is established by contributing of members.  A member shall be liable for the debts and other property obligations of the enterprise within the amount of capital that it has undertaken to contribute to the enterprise.
Limited liability companies are regulated by two types:
–          One member Limited Liability Company is an enterprise owned by one organization or individual;
–          Limited Liability Company with two or more members is an enterprise owned by organizations or individuals, in which the number of members shall not less than two members and not exceed fifty.
Organizational and management structure of Limited Liability Company normally comprise of a Member’s Council, General Director or Director.
b)     Joint Stock Company
Joint Stock Company is an enterprise which has charter capital divided into equal portions called shares.   The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.
Shareholders shall be liable for the debts and other property obligations of the enterprise only within the amount of capital contributed to the enterprise.
Joint Stock Companies may issue all types of securities to raise funds.  Founding shareholders must together register to subscribe at least twenty per cent (20%) of the number of ordinary shares which may be offered for sale.
The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company.  Management system of Joint Stock Company is more complicated than Liability Company.
c)     Partnership
A partnership is an enterprise which must be at least two members being co-owners of the company jointly conducting business under one common name.  In addition to unlimited liability partners, there may be limited liability partners.
Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.
A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam.
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.
Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services), but the representative Office is permitted to
  • 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.
The Branch of a foreign business entity in Vietnam (referred as “The Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.
The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
f)      The investing measures by signing Contracts
Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.
Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.
Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.
Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.
Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.
The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:
(i)              Construction, operation and management of brand-new infrastructure facilities; and
(ii)             Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:
•     Roads, bridges, tunnels, and ferry landings;
•     Railway bridges and railway tunnels;
•     Airports, seaports and river ports;
•     Clean water supply systems; sewage systems;
•     Wastewater, waste collecting and handling systems;
•     Power plants and power transmission lines;
•     Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and
•     Other projects as may be determined by the Prime Minister
At ANT Lawyers, a law firm in Vietnam with offices in law office Hanoi and Ho Chi Minh City, we are available to assist clients in licensing and post-licensing matters to help clients with all questions and services in setting up and maintaining the company or other form of business entities in Vietnam. We could be reached at email:ant@antlawyers.vn or office tel: +848 35202779.