What are common investment methods in Vietnam?

In Vietnam laws, there are a number of investment methods such as establishing economic organizations; investment in the form of capital contribution, purchase of shares or capital contributions in business organizations; Business Cooperation Contract or Public Private Partnership. Investment in establishing economic organizations, capital contribution, purchase of share or capital contributions are most common in our opinion.

Investment in establishing economic organizations

For investment in the establishment of economic organization, an investor invests capital to carry out the establishment of an enterprise, cooperative, cooperative union or other organization to carry out business investment activities. This is a way of direct investment in which investors directly invest capital and directly participate in management activities.

Forms of establishment of economic organizations include two types: Establishing company with 100% foreign capital; or establishing joint ventures between domestic investors or the Government of Vietnam with foreign investors.

Before establishing an economic organization, the foreign investor must have an investment project and carry out the procedures for the grant of an investment registration certificate. Besides, the conditions for the charter capital ownership and the conditions prescribed by international treaties to which Vietnam is a member need to be met. Regarding charter capital, foreign investors are allowed to hold unlimited ownership in economic organizations, except for cases where the investors operate in fields related to listed companies, public companies, securities trading organizations and securities investment funds in accordance with the law on securities; State owned enterprises equitized or transformed under other forms. In addition, investors must check international treaties to which Vietnam is a signatory.

Set-up branch office in Vietnam

Set-up representative office in Vietnam

It should be noted that depending on the amount of investment capital of a foreign investor, the legal status of an economic organization after its establishment will be determined differently. If the foreign investor holds 51% or more of charter capital, the economic organization after its establishment will have to carry out the procedures applicable to foreign investors. Conversely, if foreign investors hold less than 51% of the charter capital, the regulations applicable to economic organizations after their establishment are applied as domestic investors.

Investment in the form of capital contribution, purchase of shares or capital contributions in business organizations

Foreign investors who wish to access the Vietnamese market but do not want to establish an economic organization can contribute capital, buy shares or buy capital contributions to business organizations operating in Vietnam.

With this form, the investor will become a member or shareholder of that economic organization. It requires investors to meet a conditions similar to the form of establishment of economic organizations. Having said that, it must meet the conditions for the charter capital ownership and the conditions prescribed by international treaties to which Vietnam is a member. Depending on each specific case, the investor must follow the procedures for registration of capital contribution, purchase of shares or capital contribution in an economic organization and send to the competent agency for recognition of legal investment.

Understanding the regulations are important for investors to enter the Vietnam market and consulting with Vietnam lawyers would help investors make informed decision for their business plan in Vietnam.

Read More

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.

ANT Lawyers is Vietnam exclusive member of Prae Legal, an international law firm network, providing full ranges of legal services in Vietnam

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779

Read More

BUSINESS LINES THAT NEED SUBLICENSE

In the process of establishing, businesses need to conduct the declaration of registered business lines as prescribed by law. For ordinary professions, businesses only need to encode the professions according to the encoding system in accordance with the law.

However, for some conditional business lines, in addition to the declaration in accordance with regulations, enterprises have to fully satisfy the prescribed conditions such as legal capital or business licenses (sublicense).

Moreover, enterprises need to pay attention to some lines of business that require sublicense during the business registration process, which includes:

No	Business line	Name of sublicense	Licensing authority
01	Travel service business	International travel business license	Vietnam National Administration of Tourism
		Domestic travel business license	Department of Culture, Sport and Tourism
02	Hotel business	Decision recognizing the star rating for tourism accommodation facilities	Department of Culture, Sport and Tourism
03	Printing service	Printing operation license	Department of Information and Communication – Department of Publication, Printing and Publishing
04	Real estate business: lease for foreigner	Certificate of fire safety	Chamber/Department of Fire Protection, Province/City Police
		Certificate of social security	District Police
05	Security service business	Certificate of social security	City Police (PC 13)
06	Real estate trading floor	Real estate trading floor operating announcement	Department of Construction
07	Bottled drinking water production	Certificate of food safety	Department of Health or District Department of Health
		Certificate of product standard announcement
08	Food production	Certificate of food safety	Department of Health
		Certificate of product standard
09	Restaurant, eateries and coffee shop business	Certificate of food safety	Department of Health
	Restaurant business	Fire safety inspection record	District Police
10	Informatics/Language Center	Informatics/Language Center Operating License	Department of Education
11	Veterinary medicament business	Certificates of satisfaction of business condition	City Veterinary Department
12	Veterinary medicament production	Veterinary medicament production license	Department of Veterinary
13	Preschool	Preschool Establishment License	Department of Education

Read More

BUSINESS CONDITIONS FOR CONDOMINIUM MANAGEMENT TRAINING SERVICE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read More

DEBT RECOVERY SERVICE IN VIETNAM

Debt recovery is always a big problem for businesses and individuals. In order to promote the production process, the process of debt recovery is always one of the concerns with the business leaders.

One of the the appropriate method is the intervention of law. ANT Lawyers Co., Ltd is a leading legal consultancy in Vietnam, with a team of experienced lawyers and legal experts that have participated and solved many debt recovery cases for businesses and individuals.

We will:

– Study the case to find the legal basis and debt data that should be handled;

– Assess the payment capability of the debtor to creditor;

– Represent the client to exposure debtor to negotiate, persuade and require debt repayment;

– Advice and instruct customer the most beneficial solutions in accordance with the law;

– Implement civil proceedings, economic proceedings or criminal proceedings against law enforcement agencies, depending on the type of entity and the nature of the transactions arising overdue debts;

In case of debt recovery through litigation, we will help customer:

– Draft petition and other papers relating to the recovery of debt;

– Represent client (individuals and organizations) to submit the petition to the Court and the competent authorities to recover the debt as stipulated by law;

– Appoint attorney to participate in protecting the legitimate rights and interests of clients (individuals and organizations) at the Court at all levels;

– Represent client (individuals and organizations) to participate in judgment enforcement

If you need help in addressing debt recovery and litigation issues, please either email us at ant@antlawyers.vn or call to our office at: +84 8 35202779.

Let ANT Lawyers help your business in Vietnam.

Read More