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

Thứ Ba, 28 tháng 6, 2016

HOW PATENT ATTORNEY IN VIETNAM COULD HELP?

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


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

Thứ Sáu, 24 tháng 6, 2016

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.

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.

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.

Chủ Nhật, 19 tháng 6, 2016

LIST OF INVESTMENT SECTORS BANNED IN VIETNAM

Although investment is encouraged in Vietnam, there are sectors banned to invest in Vietnam which foreign investors need to be advised and considered when setting up business in Vietnam.


The list of investment sectors banned in Vietnam has been issued with Decree 108/2006/ND-CP dated September 22nd 2006 of the Government on guiding the implementation of some Articles in the Law on Investment.
I. The projects which are detrimental to national defense, national security and public interest
1. Production and processing of drugs
2. Investment in services that secretly investigating infringe upon the interests of the State, the legitimate rights and interests of organizations and individuals.
3. Investment in the fields of private detective and investigation.
II. The projects which are detrimental to the historical places, cultural, ethical, habits and customs of Vietnam
4. The projects built on the campus of the national historical and cultural places, projects that negatively affect the architecture and landscapes of national historical and cultural places.
5. Production of depraved and superstition cultural products.
6. Production of dangerous toys, educational harmful toys that affect to the character and health of children or to the security, social order and safety.
7. Prostitution business, trafficking in women and children.
8. Experimental reproductive cloning in humans.
III. The projects harmful to people’s health, destroying natural resources and destruction of the environment
9. Manufacturing of prohibited chemicals (contact ANT Lawyers for details) (according to the Convention).
10. Production of veterinary drugs, plant protection drugs that are banned or not permitted to use in Vietnam.
11. Production of medicines for human use, vaccines, biologicals, cosmetics, chemicals and pesticides, bacteria which are not permitted to use in Vietnam.
IV. The hazardous waste treatment projects brought from overseas into Vietnam, production of toxic chemicals or the use of toxic agents that are prohibited by the provisions of international treaties
12. The hazardous waste treatment projects brought from overseas into Vietnam, production of toxic chemicals or the use of toxic agents that are prohibited by the provisions of international treaties to which Vietnam is a member.
V. Other investment projects that are prohibited under the provisions of law.
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.

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.

Thứ Năm, 16 tháng 6, 2016

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.

Thứ Hai, 13 tháng 6, 2016

BIRTH REGISTRATION WITH FOREIGN ELEMENT

From January 1st 2016, the Law on Civil Status of 2014 went into effect, replacing other documents on the registration and management of civil status. Accordingly, the law has clearly defined the authority for registration and management of civil status of the Commune People’s Committee and the District People’s Committee. Commune People’s Committee in charge of the registration and management of civic status that do not have foreign element. The remaining case that have foreign element will be under the jurisdiction of registration and management of the District People’s Committee.

For the case of children born in the territory of Vietnam, whose father is foreigner and mother is Vietnamese, but the parent does not have legal marriage (in other words: illegitimate children), the competent for birth registration belongs to the District People’s Committee where the father or mother reside.
In terms of the birth registration procedure, the Law on Civil Status provides only the procedure in case that the parents of the birth registration children have legal marriage.
The remaining case that parents of the birth registration children do not have legal then according to the provisions of the Law on Civil Status, if the father wants his name to be included in the birth certificate of the children, he have to register through adoption procedure. Accordingly, the father requesting for children adoption have to submit the declaration, documents to prove paternity, copy of passport or valid documents that can replace passport to prove his identity to the District People’s Committee where the father of the children reside.
Within 15 days of receiving valid dossier, the civil status authority will carry out the verification, listed the recognition of father and children at the headquarters of the District People’s Committee within 07 consecutive days. At the same time, the Commune People’s Committee where the child resides will list within 07 consecutive days at the headquarters of the Commune People’s Committee.
After the listing has been expired, the Justice Department proposed Chairman of the District People’s Committee to decide on the recognition of the father and son. Once registering for the recognition of the father and children, Chairman of the District People’s Committee provide excerpts for the parties.


The registration procedure for recognition of father and children must be done simultaneously or be conducted prior to birth registration of the children.

ADDING FOREIGN SUBJECTS TO OWN RESIDENT HOUSES IN VIETNAM

The Draft Law on House (amended) has currently taken lots of attentions of not only investors but residents. One of the significant amendments is provision on house ownership of foreign organizations, individuals.

According to Articles 161, 162, 163 of Draft Law, there are 3 cases that the foreigners may own resident houses in Vietnam as following:

  1. Foreign organizations, individuals invest the construct resident houses according to projects for sale, lease, hire-purchase sale.
  2. Foreign owned enterprises, branches, representative offices of the enterprises without business in real estate, foreign investment funds and branches of foreign banks permitted to operate in Vietnam are entitled to buy, donate, inherit the commercial houses in projects of resident housesdevelopment, new urban areas, tourism real estate.
  3. Foreign individuals who are allowed to enter Vietnam, not belong to incentive rights, diplomatic or consular immunity.
However, subjects at section 2 and 3 are eligible to own houses in maximum term of 70 years, from the issuance date and can extend according to laws at that moment. They are not allowed to buy and own social houses, just buy and own commercial houses. They are also eligible to own unlimited number of commercial houses in commercial resident house development projects, new urban area or tourism real estate. These new provisions will become important points for real estate market in Vietnam. Especially, the foreign individuals are allowed to enter Vietnam, entitled to buy and own resident houses in Vietnam. It’s expected to make a big change in real estate in Vietnam when the new Law on House (amended) is adopted. ANT Lawyers, your lawyers in Vietnam.

10 QUESTIONS TO ASK BEFORE SETTING-UP COMPANY IN VIETNAM

Foreigners are encouraged to make investment in Vietnam through direct investment by Setting up company in Vietnam.

However there are restrictions in some cases in regard to investment capital, investment area, special licenses required. The investor is suggested to consult with a law firm in Vietnam for advice and service offering.
Before setting up business in Vietnam, ask yourself the following questions:
1. Which business should I invest in Vietnam?
There are non-conditional investment areas and conditional investment areas.  Establishing company in the non-conditional investement areas are more simple than in conditional investment areas.  Investment in IT services, manufacturing, management consulting, business promotion are a few samples of non-conditional investment areas.  Example of conditional investment areas are real estate, tradingtravel agencies, freight forwarding…which are more complicated with investment conditions.  Investment conditions might also be changed over the time depending on the WTO commitments which Vietnam enters.
2. What should I name the business in Vietnam?
The company in Vietnam has to have Vietnamese name, and English name. The company could also have abbreviated name.  The name of the company in Vietnam indicates the structure of the company, the business lines, and the name that differentiate against other businesses.  For instance, the company could be named Alpha consulting limited liability company.
3. Where should I register the address of the business in Vietnam?
Not every address could be used to register a company.  The address has to be an address of a house with leasing agreement or office building which owner has license to operate as office building.
4. What is the legal structure of the company?
Depending on the number of investor contributing capital, company could be set-up as one member limited liability company or two ore more member limited liability company or joint stocks company.
5. How much capital is required to set-up a company in Vietnam?
The investment amount depends on the business plan and is subject to the approval of the provincial Department of Planning and Investment evaluating application dossier. In some business areas like real estate, banking and finance, minimum capital is required. In general for non-conditional investment area, the law does not specify the minimum capital to establish a company in Vietnam however the State agencies that evaluate investment plan could reject the investment project which are not feasible. Bank statement in foreign banks could be used to prove sufficient fund of investment capital.
6. Whom will be legal representative and work permit in Vietnam?
The investor will need to appoint the legal representative in Vietnam to oversee the business performance and take legal responsibility in Vietnam. If the legal representative is an expatriate, whom is a capital contributing member or owner of a limited liability company or a member of the Board of Management of a shareholding company which is registered to operate in Vietnam, he or she will be exempted from work permit in Vietnam. Otherwise, he or she will need to have a work permit to work in Vietnam legally.  The work permit holder would then apply for temporary residence card to live in Vietnam as long as the work permit allows.
7. How long does it take to set-up a company in Vietnam?
It depends on what type, scale, and whether or not conditions are required. For a simple minimum capital without conditions to set-up, it would take 30 working days. For setting up company in conditional investment areas i.e.  trading company in Vietnam, time would be lengthen due to the involvement of a number of State agencies approving the investment project and it would take 60 working days. For setting up company in other investments in areas requiring conditions to meet, time might be taken depending on the type of conditions and the government agencies evaluating the conditions of investment.
8. Whom will be granting the investment license in Vietnam?
For most of the investment projects, the provincial state agencies with the approval of the Department of Planning and Investment (DPI) will be granting the Investment Certificate in Vietnam. However, depending on the type, scale, and whether or not conditions are required, other Vietnam State agencies might be involved. For the case of trading company, ministry of trade and commerce, ministry of finance, provincial people’s committee will be reviewing the investment application dossier as well.
9. What are the tax liability in Vietnam?
Major taxes in Vietnam are corporate income tax, import and export tax, value added tax, and personal income tax in Vietnam. In some special areas, there are other taxes. The corporate income tax is currently at 22% and will reduce to 20% beginning 2016. Export is mostly encouraged as such the export tax is 0 however there are special cases when export tax is larger than 0. Import tax varies according to tariff. Value added tax is mostly at 10% however in some cases, VAT could be 5% or 0%. Personal Income tax varies according to income level and is applicable from VND 9,000,000 above.
10. What are mandatory reports submissions requirement in Vietnam?
Companies are required to keep accounting books, prepare and submit tax reports on monthly, quarterly and annually. Foreign companies are also required to have financial audit taken before the financial year end. The financial year in Vietnam is from January to December and the deadline to submit financial report is March 30th for the previous year. Other reports are required to be submitted at other State agencies.
At ANT Lawyers, a law firm in Vietnam with offices in Hanoi, Da Nang and Ho Chi Minh City, we are always capable 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.

Thứ Tư, 1 tháng 6, 2016

HOW FOREIGN ENTITY COULD SET-UP A BRANCH OFFICE IN VIETNAM

A foreign business entity or a foreign trader is allowed to set-up a branch in Vietnam to conduct business activities.

Having the right to conduct business activities and make profit are how a branch differs from a representative office in Vietnam.  A branch depends on the foreign business entity that set-up the branch while a foreign owned company set-up in Vietnam exists by itself.  The Vietnam Department of Industry and Trade will be approving the establishment of a branch in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.

In particular, the branch of a foreign business entity in Vietnam (referred to 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 licence 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.
1. Rights of the Branch
  • To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.
  • To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.
  • To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.
  • To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.
  • To remit profits abroad in accordance with the law of Vietnam.
  • To have a seal bearing the name of the branch in accordance with the law of Vietnam.
  • 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.
2. Requested conditions for establishment the Branch in Vietnam
A foreign company which has effectiveness business activities will be allowed to open the Branch in Vietnam if this company has real demand to open the market in Vietnam and meet some conditions as below:
  • Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;
  • Having been operating for at least five years after its lawful establishment or business registration.
3. Issuance the Certificate of Branch:
The issuance of the Certificate of Branch will be implemented by the Department of Industry and Trade Department  after the foreign company meets all of conditions as Vietnam legal requirements.
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 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.