Thứ Tư, 30 tháng 12, 2020

How to Set up Foreign Owned Company in IT and Computer Related Service?

 Information technology and computer related service have played an extremely important role in life as well as in business activities on global scale. The industrial revolution 4.0 has comprised of many technologies and IT and computer service take a big part of such. The laws of Vietnam and the international commitments to which Vietnam is a party have no restrictions on foreign investors in terms of both the form of investment and the proportion of capital contribution in business in this field. Further, Vietnam prioritizes and encourages development in the field of IT and computer services which is considered attracting high level of intelligence and green business. The investors have grown confidence in Vietnam’s increasingly improved legal systems to protect the Intellectual Property rights in trademark and copyright to protect the company and individuals to exploit economic benefits in IT and computer related service areas.



IT is the core foundation of smart city, intelligent transport system, intelligent education. Computer services and related services include: consulting services related to computer hardware installation, software implementation services, data processing services, database services, services maintenance and maintenance of office machinery and equipment, including computers and other computer services.

Under Vietnam’s WTO commitments, foreign investors are allowed to set up 100% foreign-invested enterprises to conduct business in IT and computer services and related services. At the same time, it is allowed for computer service business enterprises to set up branches when there is a need to generate additional business activities at locations outside the head office of the enterprise.

To establish an enterprise with 100% foreign invested capital, investors need to apply for an Investment Registration Certificate in accordance with the Law on Investment 2014 and an Enterprise Registration Certificate in accordance with the Law on Enterprise 2014.

A dossier of application for an Investment Registration Certificate comprises: a written request for implementation of an investment project; copy of identity card, citizen identity card or passport for individual investor and copy of establishment certificate or equivalent document certifying legal status for institutional investor; investment project proposal; copies of the latest 2-year financial statements or commitment of financial support of the parent company or financial institution or guarantee of investor’s financial capacity or documents explaining the financial capacity of the house invest; a copy of the location lease agreement or other documents certifying that the investor has the right to use the project location. If the project uses technologies on the list of technologies restricted from transfer, the explanation of the use of technologies must be submitted. Within 15 days from the date of receiving the complete and valid file, the Department of Planning and Investment will issue the Investment Registration Certificate to the foreign investor.

An Enterprise Registration Certificate dossier comprises: an application for enterprise registration; enterprise’s regulations; a list of members of a limited liability company with two or more members or a list of general partners; a notarized copy of identity card or valid passport of individual member; a notarized copy of the Enterprise Registration Certificate of the organization’s member; a notarized copy of valid identity card or passport of the organization’s legal representative; copy of Investment Registration Certificate. After 03 working days from the date of receiving a complete and valid dossier, the Department of Planning and Investment will issue an Enterprise Registration Certificate.

For the establishment of a branch, a dependent unit of the enterprise, tasked to perform all or a part of the functions of the enterprise, including an authorized representative function, business lines of a branch must be consistent with the business line of the enterprise. When registering a branch operation, the enterprise must send a notice of setting up the branch to the Business Registration Office where the branch is located. A dossier of establishment of a branch comprises of a notice of establishment of a branch; branch establishment decisions; decisions to appoint branch heads; minutes of meeting of establishment of branch; copy of the Business Registration Certificate; copy of identity card or Passport of the head of branch. Within 3 working days after receiving a valid dossier, the Enterprise Registration Office shall grant a branch operation registration certificate.

The investors should pay attention to legal compliance since incorporation and during the operation in accordance with the law. ANT Lawyers with offices in Hanoi, HCMC and Da Nang will be helping the clients to ensure the efficient operation from legal perspective.

Thứ Ba, 29 tháng 12, 2020

Child Adoption with Foreign Elements

 Presently, there are many foreign people want to adopt a Vietnamese. Besides, the law of Vietnam also has strict regulations for child adoption by foreigners.


First is the adoption of specific child by foreigners. The Adoption Act 2010 defined that the Vietnamese residing abroad and foreigners permanently residing overseas are allowed to adopt specific child in the following cases:

As stepfather or stepmother of the adopted person;

As uncle or aunt of the adopted person;

Has adopted children who are siblings of the children that are adopting;

Adopt children with disabilities, HIV / AIDS or other fatal diseases;

As foreigners who are working and studying in Vietnam for at least 01 years.

In which the 4th case is a special case that are encouraged by the State with simpler procedures than other cases.

The order and procedures for adoption of child will be conducted as follows:

The profile of child adopting people includes:

+ Application for adoption by name;

+ A copy of the passport or replacing document that have the same value;

+ The written permission for child adoption in Vietnam;

+ The psychological and family investigation;

+ Documents certifying health status;

+ Documents certifying income and assets;

+ Judicial record;

+ Documents certifying marital status;

+ Documents evidencing eligible for child adoption by name.

+ In case of specific child adoption for children over 5 years old and two or more siblings, the record must clearly state the psychological preparation plan for children, preparing conditions for children to integrate into the new family, culture and society environments.

The above documents are issued and certified by the competent authority where the child adopting people permanently reside. To be certified by the State of Vietnam, it should be certified through the procedure of consular legalization.

The profile of children to be adopted includes:

+ Birth certificate

+ Certification of health issued by the district or higher health authorities;

+ Two full body and looking straight images, which was taken within 06 months

+ Documents about the noteworthy characteristics, preferences and habits of children.

These papers are issued by nurturing organizations or natural parents / guardians of children.

Profiles of the child adopting person and the child being adopted are submitted directly at the Bureau for adoption. The case that cannot submit the profile directly at the Bureau for adoption, the child adopting person have to authorize by written document their relatives residing in Vietnam to submit the profile at the Bureau for adoption or send the profile through post office in the form of guarantees.

In the procedure of adoption of specific children with disabilities, HIV / AIDS or suffering from serious diseases, Vietnam law allows the free implementation of procedures to find alternative families and introduce children for adoption. The meaning of this is to shorten the procedure, creating condition for these children to be adopted and nurtured in an enabling environment.

After receipt of the application for adoption, Bureau of adoption will check and appraisal the profile to determine that the child adopting people was certified by the competent authorities of the country where he or she resides that he or she satisfy the eligibility for child adoption under the laws of that country and under the laws of Vietnam.

Towards the child to be adopted, after receiving profile from natural parents or guardians of the child, Bureau for adoption has the responsibility to inspect children’s record, conduct consultation with the natural father / mother or the guardians of child about the child adoption for foreigner during 07 working days.

Within 07 working days from the expiration date of changing opinion about the child adoption for foreigner of the natural parents or guardians of children, if children are eligible to be adopted by foreigner, who are entitled to adoption by name, Bureau for adoption will report the Department of Justice, Department of Justice will certify by document that the children eligible for adoption by foreigner. Finally, Department of Justice submits to the Provincial People’s Committee decided to allow the foreigner to adopt the children.

Second is the adoption of child not by name with foreign element. The adoption of child not by name with foreign element is the cases when Vietnamese residing abroad, foreigners reside in the country in which that country is a member of international treaties on child adoption with Vietnam and adopt Vietnamese children; Vietnam citizens residing in Vietnam adopt foreign children; foreigners permanently residing in Vietnam adopt Vietnamese children.

For the adoption case that not by name, the order and procedures will include:

+ The profile of people that want to adopt children should be submitting to the Bureau for adoption through the adoption agencies of that country that are licensed to operate in Vietnam. If that country does not have adoption agencies licensed to operate in Vietnam, the adoption profile should be submitting to the Bureau for adoption through diplomatic representative offices or consular office of that country in Vietnam.

+ The profile of children being adopted will be submitted by natural parents or guardians of the children at the Bureau for adoption.

+ The Bureau for adoption receives, inspect and evaluate profile of the child adopting people and children being adopted.

Compared to the case of adoption by name with children with disabilities, HIV / AIDS or other serious diseases, the case of adoption not by name, the Department of Justice has to implement the procedure to find alternative family and introduce children for adoption. The meaning of these two procedures is to encourage local Vietnamese permanent residing in Vietnam to adopt Vietnamese children, enabling Vietnamese children to live, learn and develop in their own homeland. Only when the above procedure to find alternative family and introduce children for adoption have finished without any local people want to adopt that children, the Department of Justice will consider deciding for the children to be adopted by foreigner.

The notice period to find alternative family is regulated as 60 days, during this period, if any Vietnamese wants to adopt children, they should contact the Commune People’s Committee where children resides to consider and settle the adoption. If time runs out 60 days, the Department of Justice has to prepare a list of children who need to find alternative families and submit to the Ministry of Justice.

On the other hand, within 30 days after receiving profile from foreigner that want to adopt Vietnamese children, the Department of Justice has to review and introduce children to be adopted on the basis of children with no domestic adoption. After introducing children to be adopted, the Department of Justice reported the Provincial People’s Committee for comments.

The case that the Provincial People’s Committee disagrees, they have to send a written document stating the reasons and submit to the Department of Justice. On the other hand, the case that the Provincial People’s Committee agrees, within 07 working days, the Provincial People’s Committee decided for children for abroad adoption.

Thứ Hai, 28 tháng 12, 2020

Preferential Policies When Investing in DaNang Hi-Tech Park

 Danang has been growing to become attractive destination for investment due to favourable conditions offered by the city administration to bring foreign investor investing into hi-tech park.



Danang is one of the five large cities of Vietnam and is the key economic hub of Central Vietnam. The location of Danang is one of the important gateway to the sea of the Central Highlands and Laos, Cambodia and Thailand to the Northeast Asia countries through the East-West Economic Corridor, and located in one of the international sea routes and air routes. Danang has a geographic location that is particularly conducive to rapid and sustainable development.

Danang Hi-tech Park was established in accordance with Decision No.1979/QD-TTg dated October 28th2010, after two Hi-tech Parks in Hanoi and Ho Chi Minh City, with the hope of developing the science and technology of Da Nang, the Central Region and Central Highlands of Vietnam. Covering an area of 1,129.76 hectares and the infrastructure is gradually being completed with production areas, research and development, training and nursery enterprises, administrative management, housing, logistics, logistics and high- tech services. Da Nang Hi-tech Park is expected to be the attractive place where domestic and foreign investors favourable infrastructure and incentives. Danang Hi-tech Park shall give priority to the setting up of company in high-tech areas i.e. bio-technology for agriculture, fisheries and health; microelectronics, mechatronics and optoelectronics, automation and precision engineering; information technology, communication, informatics software; petrochemical service technology. Danang is a priority city for the development of environmentally friendly industries and services, therefore investors will not be allowed to trade in industries that threaten to pollute the environment and affect national security or industries using obsolete technologies.

In addition to the infrastructure development, Danang also offers investment incentives to attract domestic and foreign investors to invest in Danang Hi-tech Park such as Decision No. 36/2013/QD-UBND and most recently Decree No. 04/2018/ND-CP will take effect from February. Decree No. 04/2018/ND-CP has given great investment incentives to investors when investing in Danang Hi-tech park. Having policies to attract domestic investment and FDI, whereby investors invest in Danang Hi-tech Park will be exempted from all or part of land rent and site clearance in some specific cases. In addition, when investing in Danang Hi-tech Park, the enterprises will be entitled to corporate income tax incentives for 15 to 30 years and exemption on corporate income tax for 4 years, and reduction of 50% for 9 years later to enterprise having new investment projects. Goods imported to be fixed assets in Hi-tech Park or machinery and equipment which cannot be produced at domestic will be exempted from import tax. In addition, experts and workers who are foreigners/overseas Vietnamese working in Hi-tech park and their family members may be considered for issuance of multiple entry and exit visas with appropriate time limits for entry purposes in accordance with the laws.

The economics of Danang is growing and the special incentives have been offered to attract investment from the city administration. This is the opportunities for investors both domestic and foreigners to invest in Danang.

Chủ Nhật, 27 tháng 12, 2020

How to Send Vietnamese Workers Working Abroad Under Contracts?

 Decree No. 38/2020/ND-CP detailing the implementation of a number of articles of the law on Vietnamese workers working abroad under contracts has been signed by the Government on April 3, 2020 taking effect from May 20, 2020.



This Decree prescribes the areas and jobs workers must not go to work abroad; licenses, conditions and procedures for the grant or replacement of licenses for provision of services to send workers abroad; deposits of service-providing enterprises sending laborers to work abroad; deposits, management and use of deposits of enterprises performing the intern labor contract. Specifically:

Up to seven jobs are not allowed to for Vietnamese workers to work abroad including: massaging in the restaurants, hotels or entertainment centers; the work must be in constant contact with explosives, toxic substances in the metallurgy of non-ferrous metals (copper, lead, mercury, silver and zinc), regular contact with manganese, mercury dioxide; the work must be in contact with open radioactive sources, exploiting radioactive ores of all kinds; the production and packaging must be in constant contact with the chemicals of nitric acid, sodium sulfate, carbon disulfide, pesticides, herbicides, rat poison, antiseptic, and anti-termite with strong toxicity; hunting for wild animals, crocodiles and sharks; regular work in places where there is lack of air, high pressure (underground, in the ocean); shrouding, burial corpses, cremating corpses, exhuming graves.

In addition, it is prohibited to send workers to war zones or areas at risk of war, areas where radiation is being contaminated, areas contaminated with poison or areas with particularly dangerous epidemics.

For service-providing enterprises sending laborers to work overseas, to set up company, and comply with the law, they must meet the following conditions among others: the legal capital is not lower than VND 5,000,000,000 (five billion Vietnam dong); having owners, all members and shareholders being domestic investors under the provisions of the Law on Investment 2014; having an operation plan to send workers to work abroad; having a specialized apparatus and material foundations to organize the training of necessary knowledge for workers before going to work abroad and activities of sending laborers to work abroad; deposit VND 1,000,000,000 (one billion Vietnam dong) at commercial banks licensed to operate in Vietnam.

The enterprise sending workers to work abroad upon the form of practice for skills improvement makes deposit to account at commercial bank. The level of deposit of an enterprise sending workers to work abroad upon the form of practice for skills improvement is equal to 10% of the ordinary flight ticket of one class at the time the enterprise deposits from the country where the employee works. The number of workers going to work abroad in Vietnam under the Contract of accepting internships has been registered.

In addition, this Decree also stipulates the conditions for activities of sending laborers to work in the territory of Taiwan, to practice skills in Japan and to work as domestic servants in the host country of Middle East region.

The interested individuals and organizations should pay attention to implement details of the regulation or seek lawyers in the labour management areas for consultation.

Thứ Năm, 24 tháng 12, 2020

Associate Lawyer Posisition in Ho Chi Minh City

 ANT Lawyers in Ho Chi Minh City Recruitment



We are currently hiring Associate Lawyers for our office in Ho Chi Minh City.

What You Will Do

The candidate of Associate Lawyer shall be:

– Advising foreign clients relating to foreign direct investment (FDI): establishing investment projects, joint ventures and mergers and acquisitions (M&A) and other works assigned;

– Drafting and reviewing contracts and other documents relevant to client matters;

– Managing clients’ transactions and on-going legal requirements;

– Representing client in disputes

– Liaising with government officials;

– Leading teams;

– Promoting business development activities (write articles and attend seminars);

– Additional duties as assigned by partner.

What You Are Good At

-Vietnamese Bachelor of Law Degree.

-Vietnamese Lawyer’s Certificate (necessary)

-Excellent command for both written and spoken in English.

-Good at MS Office (Word, Excel, Power Point).

-Analytical and problem solving skills

-Negotiation and influencing skills

-Years of Experience: 4 + years

About Our Company

Company size: 10-24

ANT Lawyers is a Vietnamese law firms in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context. The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

We are a Vietnam law firms with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. We help clients to overcome cultural barriers and achieve their strategic and financial results, and in the meantime ensure best interest protection, risk minimization, and regulatory compliance.

Our people are members of Vietnam Bar Federation, Hanoi Bar Association, Vietnam law firms member of Prae Legal, a global law firms network spanning 5 continents and 150 countries, World Mediation Organization, an international organization headquartered in Berlin that promote and foster mediation as an alternative dispute resolution.

Thứ Tư, 23 tháng 12, 2020

When Will Foreigner Need to Obtain Criminal Record?

 Circumstances in which Foreigners are required to obtain a Criminal Record



In the process to grant the work permit for foreigner working in Vietnam, it is required the foreigner to have the criminal record in their dossier.

Foreigner applying for criminal record to obtain work permit in Vietnam is divided into 2 cases.

In the first case, foreigner who is in foreign country or in Vietnam less than 06 months has to apply for criminal record in foreign country. The laws of each country are not the same therefore the regulation on criminal record application is also different.

Also please note that the criminal record which is issued by another country, when using in Vietnam to apply for work permit, it must be translated, legalized and notarized in accordance with the law of Vietnam.

In the second case, foreigner temporarily residing continuously in Vietnam for 06 months or above can apply for criminal record in Vietnam. In Vietnam, the competent authority that granting the criminal record for foreigner is the Department of Justice of the province or city where foreigner is residing.

Thứ Ba, 22 tháng 12, 2020

Tax Obligations of Representative Offices in Vietnam

 Foreign entities have found Vietnam as an increasing attractive destination for investment. They could consider entering Vietnam in various forms, including setting up representative offices.



“A representative office is a dependent unit of the enterprise, having the task of representing under authorization the interests of the enterprise and protecting such interests” (Clause 2 of article 45, Law on Enterprises 2014). “Representative office shall perform the functions of liaison offices, market surveys, promotion of business opportunities for traders they represent, excluding those in which the establishment of representative offices in that field, it is stipulated in specialized legal documents” (Article 30 – Decree No.07/2016/ND-CP decree detailed regulations on establishment of representative offices or branches of foreign traders in Vietnam under Laws on Commerce).

A representative office is a dependent unit of a foreign enterprise in Vietnam, and it acts under the authorization of foreign enterprises. Representative office shall not conduct business activities therefore, the tax obligations of the representative office are limited, such as:

Firstly, as representative office does not involve profit making activity, hence there are no Value Added Tax, Corporate Income Tax, Annual Due incurred.

Secondly, representative office has to register its tax code, to deduct and pay Personal Income Tax on behalf of its employees working in the representative office or deduct and pay contractor taxes for foreign sub-contractors (if any).

Thứ Hai, 21 tháng 12, 2020

What is Agreed Matrimonial Property Regime of Spouses Under Vietnam Laws?

 Husband and wife have the right to choose to apply the statutory or agreed property regime. Basic contents of an agreement on the matrimonial property regime (prenuptial agreement) includes: (i) Property determined as common property and separate property of the husband and wife;(ii) Rights and obligations of the husband and wife toward common property, separate property and related transactions; property to meet the family’s essential needs;(iii) Conditions, procedures and principles of property division upon termination of the property regime;(iv) Other related contents.



When choosing to apply the agreed matrimonial property regime, husband and wife may reach agreement on determination of property as follows:(i) Matrimonial property includes common property and separate property of husband and wife;(ii) Husband and wife have no separate property and all property a spouse has before marriage or during the marriage period is common property;(iii) Husband and wife have no common property and all property a spouse has before marriage and during the marriage period is separate property of that spouse;(iv) Property is determined as otherwise agreed by husband and wife.

Although property regime is based on the wills of the parties, it still must comply with regulation of law. Agreed property regime shall be made in writing before their marriage and be notarized or certified. The agreed matrimonial property regime shall be established on the date of marriage registration. It should be noted that in case of applying the agreed matrimonial property regime, when establishing and making a transaction, a spouse shall provide a third party with relevant information. If a spouse fails to perform this obligation, the third party shall be regarded as acting in good faith and have his/her/its interests protected.

An agreement on the matrimonial property regime shall be declared to be invalid by a court when: (i) It fails to meet the conditions on effect of transactions;(ii) It violates one of the provisions in Article 29, 30, 31 or 32 of Law on marriage and family 2014;(iii) Its contents seriously infringe upon the rights of being supported and inherit and other lawful rights and interests of parents, children and other family members.

Specifically, both parties must still comply with the regulations on:

General principles of the matrimonial property regime: (i) Husband and wife have equal rights and obligations in the creation, possession, use and disposition of their common property without discrimination between housework labor and income-generating labor; (ii) Husband and wife have the obligation to ensure conditions for meeting their family’s essential needs.; (iii) When the performance of property rights and obligations of husband and wife infringes upon lawful rights and interests of the wife, husband, their family or other persons, compensation shall be paid.

Rights and obligations of husband and wife to meet their family’s essential needs: (i) Husband and wife have the right and obligation to conduct transactions to meet their family’s essential needs; (ii) In case husband and wife have no common property or their common property is not enough to meet their family’s essential needs, they shall contribute their separate property according to their financial capacity.

Transactions related to the home being the sole domicile of husband and wife and transactions with third parties in good faith related to bank accounts, securities accounts and other movable assets which registration for ownership and use is not required according to regulation of law.

In summary, although property regime is based on agreement of both parties, this written agreement still must comply with regulation of law and is not allowed to violate rights of other party or any other individual, organization. If such agreement violates above provisions, persons with related rights and interests may request a court to declare it invalid. According to regulation of law, following agencies, organizations and individuals are entitled to require the Court to declare matrimonial property regime of spouse invalid: (i) Spouses have agreed on property regimes; (ii) Person whose right and legal interest violated due to matrimonial property regime of spouse and his/her guardian.

Once property regime agreement is mad, are both parties entitled to edit?

In case of applying the agreed matrimonial property regime during the marriage period, husband and wife may reach agreement to modify and supplement some or all contents of that property regime or apply the statutory matrimonial property regime. The agreement modifying and supplementing the matrimonial property regime shall be notarized or certified in accordance with law. The agreement modifying and supplementing contents of the matrimonial property regime shall take effect on the date it is notarized or certified. A spouse shall provide a third party with relevant information. Property rights and obligations arising before the time of modifying and supplementing the matrimonial property regime must remain legally valid, unless otherwise agreed by involved parties.

Upon divorce, the following case will apply statutory matrimonial property regime, it means that parties will reach agreement, if they fail to reach agreement, at the request of a spouse or both, a court shall settle it according to Law on marriage and family: (i) There is no written agreement of matrimonial property regime of spouse;(ii) Written agreement of matrimonial property regime of spouse is declared completely invalid by the court.

Case will apply agreed matrimonial property regime: There is a written agreement of matrimonial property regime and this written agreement is not declared completely invalid by the Court. The following cases will apply provisions of Law on marriage and family:(i) The agreement is insufficient or unclear;(ii) The matters are not agreed by both husband and wife.

It is important that spouses consult with family lawyers if potential disputes would lead to divorce for proper preparation before filing a lawsuit.

Chủ Nhật, 20 tháng 12, 2020

Conditions set-up import company in Vietnam

 Before Vietnam joined World Trading Organization (WTO), distribution and import, export activities conducted by foreign owned entities are strictly regulated by Vietnam government. As such, foreigners could only conduct the import of goods through the Vietnam agents.



Since 2007, Vietnam has become an official member of WTO and it had to commit a route to open local market to foreign companies and traders, including foreign distributors. Within 02 years from the date of accession to WTO, regulations with services and trading activities have been eased up gradually to be more open. Since 2009, foreigner investors have been entitled to set up 100% foreign-owned companies to conduct activities related to the sale and purchase of goods including import and export, and distribution including acting as agents for purchase and sale, wholesale, retail and franchising. This opens up opportunities for foreign investors to expand their trading activities in Vietnam.

1. Conditions for foreign-owned company in import and export or distribution field:

According to Article 4, Decree No. 23/2007/ND-CP on 12 February 2007 by the Government providing regulation for implementation of Commercial Law regarding purchase and sale of goods and activities directly related to the purchase and sale of goods by enterprises with foreign owned capital in Vietnam (“Decree No. 23”), the conditions for an enterprise with foreign owned capital to be granted a business license for activities of purchase and sale of goods and activities related to purchase and sale of goods in Vietnam shall comprise:

a. It is an investor belonging to a country or territory participating in an international treaty of which the Socialist Republic of Vietnam is a member and in such treaty Vietnam has undertaken to open the market on activities of purchase and sale of goods and activities directly related to purchase and sale of goods;

b. The form of investment is consistent with the schedules undertaken in international treaties of which the Socialist Republic of Vietnam is a member and is consistent with the law of Vietnam;

c. The goods and services in which business is conducted are consistent with Vietnam’s undertaking to open the market and are consistent with the law of Vietnam;

d. The scope of operation is consistent with Vietnam’s undertaking to open the market and is consistent with the law of Vietnam;

e. It has approval from the competent State body.

With respect to foreign investors not in the category stipulated in clause (a) above, the Minister of Industry and Trade shall consider each application on a case by case basis and must approve activities of purchase and sale of goods and activities directly related to purchase and sale of goods before the authorized State body grants a business license.

2. Conditions of foreign-invested enterprises on implementation export rights

According to Circular No. 08/2013/TT-BTC dated on April 22, 2013 issued by the Ministry of Industry and Trade detailing the goods trading and directly related activities of foreign-invested enterprises in Vietnam (“Circular No.08”), foreign-owned enterprises which have been licensed to conduct export activities are permitted to export, purchase goods in Vietnam for export, including goods imported in Vietnam by them or other enterprises already finished tax liability and other financial obligations, under the following conditions:

a. Export goods which are not in the list of those banned from export, list of those temporarily suspended from export, list of those of which the right to export is not granted according to international commitments;

b. For export goods in the list of conditional export goods, enterprises must meet conditions as prescribed by law;

c. For export goods in the list of goods to be exported under roadmaps specified in international commitments, enterprises must comply with the committed roadmap;

d. The export commodities must be suitable with content of the right to export which enterprises have been licensed for implementation.

The foreign-invested enterprises already licensed for right to export are entitled to directly do procedures for export of goods at customs agencies as prescribed by law.

The foreign-invested enterprises already licensed for right to export are entitled to directly purchase only goods of Vietnamese traders who have business registration or right to import, right to distribute such goods for export; not entitled to organize the network of goods purchase in Vietnam for export, unless otherwise provided by law of Vietnam or International treaties to which the Socialist Republic of Vietnam is a contracting party.

3. Conditions of foreign-invested enterprises on implementation import rights:

Under Circular No. 08, foreign-owned enterprises which are licensed to import goods are permitted:

a. Import goods which are not in the list of those banned from import, list of those temporarily suspended from import, list of those of which the right to import is not granted according to international commitments;

b. Import goods belong in the list of conditional import goods, enterprises must meet conditions as prescribed by law;

c. Import goods belong in the list of goods to be imported under roadmaps specified in international commitments, enterprises must comply with the committed roadmap;

d. The import commodities must be suitable with content of the right to import which enterprises have been licensed for implementation.

The foreign-invested enterprises already licensed for right to import are entitle to directly do procedures for import of goods at customs agencies as prescribed by law.

The foreign-invested enterprises already licensed for right to import but not yet licensed for right to distribute are entitled to directly sell import goods for Vietnamese traders who have business registration or right to export, right to distribute such goods; not entitled to organize or participate in the network of goods distribution in Vietnam, unless otherwise provided by law of Vietnam or International treaties to which the Socialist Republic of Vietnam is a contracting party.

4. Conditions of foreign-owned enterprises on implementation distribution rights:

Distribution is defined as Decree 23 as “activities of wholesaling, retailing, agency for purchase and sale of goods and franchising in accordance with the law of Vietnam”. The right to distribution is defined as “the right to undertake directly activities of distribution”.

Under Circular No. 08, foreign-owned enterprises which have been licensed to conduct distribution activities shall be permitted:

a) To conduct wholesaling, retailing, franchising and agency for trading goods manufactured in Vietnam and goods imported into Vietnam, except:

i) For goods on the list of those banned from business and list of those of which the right to distribution is not granted under international commitments;

ii) For goods restrained for business or goods of conditional business, enterprises must meet conditions as prescribed by law;

iii) For distribution goods in the list of goods to be distributed under roadmaps specified in international commitments, enterprises must comply with the committed roadmap.

b) The distribution commodities must be suitable with content of the right to distribution which enterprises have been licensed for implementation.

Depending on the method of business, investor could choose one of activities belonging to distributions rights. With each method, the investor needs to apply a suitable business registration issued by competent authorities.

Further, foreign invested enterprises whose investment registered retail business line in their investment certificate could open a single retail outlet in order to sell their goods to the end of user or customers. The setting up of retail establishments including the first retail establishments must abide by law regulations on state management for retail activities and be conformable with the related master plans of central-affiliated cities and provinces, where are expected for setting up of retail establishments. The setting up of retail establishments in addition to the first retail establishments are considered for each specific case based on the examination on economic demand of each locality where place retail establishment under the criteria: Quantity of retail establishments, stability of market, residential density and scale of district-level localities where are expected for the setting up of retail establishments.

Our lawyers of foreign investment practice at ANT Lawyers, a law firm in Vietnam are available to advise and provide client with service and representation for setting up a trading company in Vietnam.

Thứ Sáu, 18 tháng 12, 2020

Restructure the Debt Payment due to Covid-19

 On March 13, 2020, the State Bank issued Circular No. 01/2020/TT-NHNN providing guidance for the credit institutions, foreign bank branches to restructure the debt repayment, exemption and reduction periods, charge, keep the debt group in support of customers affected by Covid-19 epidemic, which is an important legal grounds to support the economy.



Accordingly, the debt group restructuring is carried out as follows:

Debts which are restructured repayment term are the principal amount and/or interest (including the debt balance of debts within the scope of regulation of Decree No. 55/2015/ ND-CP of June 9, 2015 of the Government on the credit policy for agricultural and rural development (amended and supplemented)), which fully meets the following conditions: arising from lending activities, financial leasing; Arising the obligation to repay the principal and/or interest within the period from January 23, 2020 to the next day after 03 months from the date the Prime Minister announces the end of the Covid -19 epidemic; Customers are unable to pay the debt principals and/or interests on time according to the signed contracts, loan agreements, financial leases due to the decrease in revenue and income due to Covid -19 epidemic.

The debt repayment restructuring shall be carried out in cases where the outstanding debt is still due or overdue for up to 10 days from the due date of payment or due under the contract, financial leasing agreements; or The overdue debt balance in the period from January 23, 2020 to the next day after 15 days from the effective date of this Circular.

Credit institutions, foreign bank branches may decide on rescheduling of repayment of outstanding debts in the above-mentioned cases, based on customers’ requests and assessments of credit institutions, foreign bank branch on the ability to repay the principal and/or interest of the customer in full after rescheduling, in accordance with the influence of Covid – 19 service and ensuring the credit institution, the foreign bank branch fails to restructure the debt repayment term for debts in violation of legal regulations and the restructuring time in case of extending an extended repayment period shall not exceed 12 months from the last day of the debt term, finance lease (the time the customer must pay all principal and interest under the signed contract, loan agreement, financial lease).

In addition, credit institutions and foreign bank branches shall decide on the exemption and reduction of interests and fees according to internal regulations for the outstanding debts arising from credit extension activities, except for bond purchase and investment activities for which the principal and/or interest payment is due within the period from January 23, 2020 to the next day after 03 months from the date of Prime Minister announced the end of the Covid -19 epidemic and the customer was unable to pay the debt on time, both principal and/or interest, according to the signed contract or agreement due to the decrease in revenue and income due to the impact of the Covid- 19 epidemic.

This Circular takes effect from the date of signing. From the effective date of this Circular, customers of credit institutions, foreign bank branches, other relevant organizations and individuals will have their debt repayment restructured, exemption and reduction periods, charge, keep the debt group unchanged. The Government has always issued policies, legal documents to support businesses, organizations and individuals to borrow credit during the period of the Covid -19 epidemic, so that they can help businesses as well as the country’s economy to maintain and develop in the future.

Thứ Tư, 16 tháng 12, 2020

Challenges in Preparing Documents for Representative Office Application

 The representative office (RO) is a popular foreign investment vehicle which investors utilize when wishing to enter the Vietnamese market without committing too much investment. The representative office could help the foreign entity to hire local employee to carry out market research, business promotion.



A foreign company wishes to establish a representative office in Vietnam must submit an application dossier for a license to the Provincial Department of Industry and Trade (DIT).

However, there are cases which the government agencies receiving the application would be different from department of industry and trade depending on the business lines carried out by the foreign entity.

Firstly, the trade service is bound in Vietnam’s Commitment in trade service in WTO but there are no existing specialized legislative documents:

When the trade service which the foreign entity provides does not fall under areas prescribed by specialized legislative documents in Vietnam, the licensing agency shall submit a written request for directions to the relevant ministries for opinions. The foreign entity shall wait for at least 15 working days for receiving a written notice of whether the license for establishment of the representative office is granted or rejected. This process not only extends duration of establishment of representative office but also rises risk of rejection.

Secondly, the trade service is not yet bound in Vietnam’s Commitment:

Where the scope of operation of the representative office is inconsistent with Vietnam’s commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, there is an extra process in registration of representative office. The representative office shall be approved by relevant ministers, heads of ministerial agencies for establishment of the representative office.

Thirdly, trade services are supplied in foreign countries, but such does not exist in Vietnam

The foreign entity has to apply codes as following to Vietnam standard industrial classification system or CPC. If the foreign entity can not define a code, it is merely impossible to register the representative office.

In most of the cases, the foreign entity should consult with law firm in Vietnam whom lawyers have expertise in WTO laws, law on investment and experience in working with Vietnam state authorities, to prepare application right at the start and be ready to challenge the authorities when required to protect best interests of the clients.

Thứ Ba, 15 tháng 12, 2020

What Are Rights and Benefits of the Employee Suffering the Occupational Accident?

 Accidents can happen at any time at work. Whether a workplace accident is the result of employee carelessness or employer negligence, employers must take responsibility for accidents to employee.



Vietnam Labor Code defines occupational accident is an accident that causes injury to any part and function of the body or death to employee occurring during the working process associated with the implementation of work and labor tasks (according to Article 142 of Labour Code).

The employee has following rights when they suffer accidents:

1. The employee is paid all the payment of the co-payment costs and the costs not included under the list paid by the health insurance for the employee participating in health insurance and making full payment of all medical expenses from the first aid, emergency to the stable treatment for the employees not participating in health insurance.

2. The employee is entitled to full payment of salary under the labor contract to the employee suffering the occupational accident and having to take leave during treatment.

3. The employee participating in compulsory social insurance is entitled to enjoy the regime of occupational accident in accordance with the Law on Social Insurance.

The conditional to enjoy the regime of occupational accident: were injured in workplace or during working hours; outside the place of work or during working hours when performing work at the duty of the employer; on the road from home to work place and vice versa.

4. The employee is entitled to the enjoy labor accident allowance as:

. The employee with occupational accidents reduces working capacity from 5% to 30% are paid once.

The employee with occupational accidents reduces working capacity 5% receive an allowance of an amount equal to 5 month’ salary under labor contract and then every 1% increase has an addition of 0.5 month’ salary.

.The employee with occupational accidents reduces working capacity 31% or more receive an allowance at rate: reduce working capacity 30% shall receive 30% month’ salary under labor contract and then every 1% increase has an addition of 2% month’ salary

This allowance is paid every month.

. The death of the employee’s relative from the occupational accidents receive at least 36 months’ salary under labor contract.

5. The employee with occupational accidents not due to the fault of employee and reduce working capacity from 5% or more shall be compensated by the employer at the following rate:

. At least equal to 1.5 month’ salary under the labor contract if the employee is reduced from 5.0% to 10% of his working capacity and then every 1.0% increase, an addition of 0.4 months of salary under the labor contract if reduced working capacity from 11% to 80%;

. At least 30 months’ salary under labor contract for the employee reduced his working capacity from 81% or more or for the death of the employee’s relative from the occupational accidents.

6.Where due to the fault of the employee, he/she also receives an allowance of an amount at least equal to 40% of the rate prescribed when fault not belong to the employee.

7. In case the employee reduces his/her working capacity in temporary, the employee receives100%-month salary under labor contract the first aid, emergency to the stable treatment or until a permanent injury certificate is issued.

8. In case the employee reduces his working capacity in permanent, beside allowance of accidents, the employee reduces his/her working capacity from 81% or more receive 100% month’ salary under labor contract every month.

9. In the case of death of a worker who has paid social insurance for 15 years, relatives will receive a funeral allowance and dependents will be entitled to a minimum of 50% of the basic salary for each person.

10. In case of the employee’s death and had participated in compulsory social insurance for less than 15 years, the burial attendants receive allowance at least 10 months’ salary under labor contract at once.

Thứ Hai, 14 tháng 12, 2020

Legal Regulations in Purchasing Real Estate in for Foreigners in Vietnam

 Vietnam has become a better place for foreigners to visiting and staying. Many chose Vietnam as home and they come to Ho Chi Minh City, Ha Noi, Da Nang, Phu Quoc, Nha Trang… to buy real estates for living. Many foreigners consider seeking understanding and with the advisory of their real estate lawyers in Vietnam to purchase the property under their name for best interest protection. There are a number of foreigners seek to cooperate with local Vietnamese under investment agreement to invest in properties. It has always been suggested the buyer or investor to receive legal advice from real estate lawyers and law firms in Vietnam before committing the investment to a certain extent.



According to the Law on housing 2005, foreign organizations and individuals investing in construction of houses for sale and lease in Vietnam have the right to own the houses in Vietnam. However, according to the provisions of the Law on housing 2014, the house owners expand and include foreigners being investors building the houses under investor projects, foreign organizations operating in Vietnam and foreign individuals being allowed to enter Vietnam under the provisions of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; and are not entitled to diplomatic privileges and immunities.

Under the provisions of the Law on housing 2014, foreign organizations and individuals are allowed to own apartments, individual houses (villas and townhouses) in commercial housing projects. The total number of foreign individuals/organizations owned does not exceed 30% of an apartment building or does not exceed 10% or 250 houses of a housing project. Foreign individuals may own houses for up to 50 years and are allowed to extend for no more than 50 years. Foreign organizations own the houses according to the time limit on the Investment Registration Certificate and the extension period. During the time of owning the houses, foreign individuals are allowed to sublease, but foreign organizations are not allowed to sublease the houses.

For foreign individuals/organizations, when buying the houses in Vietnam, it is necessary to have a well drafted sales contract for purchase and sale of the houses because all rights and obligations related to the purchase, sales and ownership of houses are regulated in the contract. Therefore, the buyer should consider the contract carefully, usually with the help of real estate lawyers whom understand Vietnam laws before signing, in order to protect their legitimate rights and interests.

The foreigner when buying and selling the houses, especially off-plan house, need to also pay attention to the regulations on payment schedule in the contract. According to Article 57 of the Law on housing 2015, the payment in the purchase, sales, lease sales of the off-plan real estate in Vietnam is carried out in installments, and the first time must not exceed 30% of the contract value, the next times must be in accordance with the construction schedule, however, not exceeding 50% of the contract value when not handed over when the buyer is an enterprise with foreign investment, not exceeding 70% the value of contract, if the buyer is the foreigner individual the payment is not exceed 50% the value of the contract before handing over the house to the buyer. Until the buyer is issued with a certificate of land use right, ownership of houses and other assets attached to the land, the buyer shall pay no more than 95% the value of contract.

Foreigners in Vietnam need to be assisted to be familiar with the laws relating to the purchase and sale of real estate in order to protect their legitimate rights and interests when participating in transactions in Vietnam. It is important that the foreigners consider using the services of law firm in Vietnam specializing in real estate to advise and help manage the transaction.

Chủ Nhật, 13 tháng 12, 2020

Labour Matters and Labour Legal Compliance

 The labor management is one of the most important matters in the operation of enterprises. For the employee, he or she has to fulfill the job requirements as per labour contract, follow internal labour regulations, and work under the supervision of the employer. For employer, complying with regulations include paying salary, ensuring benefits, and other mandatory labour compliance as per labour laws and collective labour agreements signed.



The following recaps the labour matters and labour legal compliance according to Vietnam labour laws:

To make reports on labor use according to the provisions of Article 6, Circular No. 23/2014/TT-BLDTBXH dated August 29th 2014 (Circular 23).

To make periodical reports on the use and change of labor according to the provisions of Point d, Clause 2, Article 6 of the Labor Code 2012 and Clause 2, Article 8 of Decree No. 03/2014/ND-CP and Clause 2, Article 6 of the Circular 23.

To make and use labor management books as guided in Article 7 of Circular 23.

Build and send wage scales, payroll, technical standards, titles, professional standards and labor norms in accordance with Article 93 of Labor Code 2012 and Chapter III of Decree No. 49/2013/ND-CP dated May 14th 2013

To participate and pay social insurance, health insurance, unemployment insurance for employees in accordance with current law.

To construct and register the labor regulations of the unit in accordance with Article 119, Clause 1, Clause 2, Article 120 of the Labor Code 2012, Chapter V of Decree No. 05/2015/ND-CP dated January 12th (Decree 05) and Chapter III of Circular 47/2015/TT-BLDTBXH dated November 15th 2015.

To develop and promulgate the Grassroots Democracy Regulation; Statute of periodical dialogue in the workplace as stipulated in Decree 60/2013/ND-CP dated June 19th 2013

To negotiate, sign and send the Collective Labor Agreement to the provincial labor authority in accordance with Chapter V of the Labor Code 2012, Chapter III of Decree 05 and Article 3 of Circular 29/2015/TT-BLDTBXH dated July 31st 2015 (this is optional).

To make explanatory reports on the demand for use, the procedures for the grant and re-grant of work permits and the implementation of reporting regimes according to the provisions of Decree No. 11/2016/ND-CP dated March 2nd 2016 and Circular 40/2016/TT-BLDTBXH dated October 25th 2016 (if employing foreign workers).

To formulate and promulgate the Regulation on evaluation of the performance of tasks as provided in Clause 1, Article 12 of Decree 05 (This content is part of the company’s working regulations and we must have this content to be able to unilaterally terminate the labor contract with the employee under Clause 1, Article 38 of the Labor Code 2012).

To carry out the procedures for the establishment of a grassroots trade union organization in accordance with the provisions of Paragraphs 1 and 3 of Article 189 of the Labor Code 2012 and Article 5 of the Trade Union Law 2012 (This is not mandatory but depends on the quantity of workers want to join the union of the company).

To report on occupational accidents, technical incidents causing serious unsafety and occupational hygiene at the unit as provided in Clause 1, Article 36 of the Law on Occupational Safety and Hygiene 2015 (if any); Periodically report on occupational accidents according to the provisions of Clause 1, Article 24 of Decree No. 39/2016/ND-CP dated May 15th 2016 (Decree 39).

To report annually on occupational safety and health as provided in Article 10 of Circular 07/2016/TT-BLDTBXH dated May 15th 2016

To declare the fatal occupational accident or serious injury of 2 or more laborers as stipulated in Clause 1, Article 34 of the Law on Occupational Safety and Hygiene 2015; Article 10 of Decree 39 (if any).

To monitor, manage and declare the use of machines, equipments and materials with strict requirements on labor safety in accordance with Articles 30 and 31 of the Law on Occupational Safety and Hygiene, Article 16 of Decree 44/2016/ND-CP dated May 15th 2016 (Decree 44) (if any); Circular 53/2016/TT-BLDTBXH dated December 28th 2016

To arrange full-time officials working in occupational safety and health in accordance with Article 36 of Decree 39.

To arrange staff to work in the health sector in accordance with Article 37 of Decree 39.

To provide material allowances to laborers working under dangerous and harmful conditions (if any) according to the provisions of Article 24 of the Law on Occupational Safety and Hygiene 2015; Circular 25/2013/TT-BLDTBXH dated October 18th 2013

To review, classify and organize occupational safety and health training for laborers as stipulated in Article 14 of the Law on Occupational Safety and Health 2015; Article 17 of Decree 44.

To organize health examination and treatment of occupational diseases for laborers according to the provisions of Article 21 of the Law on Occupational Safety and Hygiene 2015.

To compile the workers’ health records and labor sanitation dossiers according to the provisions of Circular No. 19/2016/TT-BYT dated June 30th 2016

To allocate and monitor personal protective devices for laborers according to the provisions of Article 23 of the Law on Occupational Safety and Hygiene 2015; Circular 04/2014/TT-BLDTBXH dated Feruary 12th 2014

To develop and implement an annual plan for occupational safety and health; Occupational safety and health regulations of the enterprise for each working area; Safe working methods for each type of work; Control of risk and harmful factors; Risk assessment on occupational safety and health; The plan for handling technical incidents causing serious unsafety and emergency rescue as provided in Articles 15, 18, 76, 77 and 78 of the Law on Occupational Safety and Hygiene 2015.

To develop a plan for implementation of the month of action on occupational safety and health in accordance with Circular 02/2017/TT-BLDTBXH dated February 20th, 2017

It is important the company to retain law firm in Vietnam with labour expertise to avoid non compliance and disputes to be arisen.

Thứ Năm, 10 tháng 12, 2020

Vietnam real estate draft law | Real Estate lawyers in Vietnam

 Real estate market in Vietnam is experiencing a difficult time. The government has realized that there is a huge demand from the foreigners and oversea Vietnamese investing in Vietnam in owning real estate in Vietnam however the legal regulations on such matter have not yet encouraged them to make the investment. 



The Vietnam Ministry of Construction has enacted the fifth Draft of Law on Real Estate Business (amending), which regulates two new noteworthy provisions relating to the scope of real estate business of foreigners and Vietnamese overseas.

While the current regulations in Law on Real Estate 2006 only allow the foreign and oversea Vietnamese organizations, individuals to establish houses, construction works for sale, lease, lease-buy; to invest, reclaim land and set up facilities on the leased land for leasing. The new Draft of Law on Real Estate expands the scope to i) rent houses, construction works in order to sub-lease; ii) foreign and oversea Vietnamese organizations or individuals operating in real estate area, foreign invested capital enterprises, branches, representatives of foreign enterprises, investment funds, branches of foreign banks currently operating in Vietnam are also permitted to rent, buy and own the office areas for their own work or for lease; to buy, rent, lease-buy houses according to Vietnam law on houses.

Our real estate lawyers in Vietnam have experience in the field of real estate and we have solutions for our client based on client’s unique situation.

Thứ Tư, 9 tháng 12, 2020

Which Areas Are Incentivized For Investment in Vietnam Under Decree No. 37/2020

 Investors are always interested in areas which government incentivize for investment in Vietnam, to enjoy benefits i.e. tax reduction, tax exemption, land usage…which give them some help to grow the business in areas which are not economically potential without the help from the government when setting up company in Vietnam.



According to the regulations on business investment in Vietnam in Decree No.118/2015/ND-CP, investment projects eligible for investment incentives are entitled to tax and land policies in their performance. Accordingly, for businesses that invest in industries or areas enjoying investment incentives, there will be many advantages related to tax and using land when performance business.

According to the provisions of Appendix I, Decree No.118/2015/ND-CP, the fields are preferentially invested in many fields such as science and technology, electronics, mechanics, material production, and information technology, agriculture, environmental protection, infrastructure construction, education, culture, sports, health activities of People’s Credit Funds and microfinance institutions are specified in Appendix I Decree no. 118/2015/ND-CP.

However, with the continuous development of the economy, along with the development projects of many small and medium-sized enterprises, besides start-up projects, it is more suitable to the market economy and start-up situation of many investors, on March 30th 2020, the Government has issued Decree No.37/2020/ND-CP supplementing the list of preferential investment industries which will take effect from May 15th, 2020.

According to the provisions of Decree No. 37/2020/ND-CP, for business investment activities in accordance with the Law on Support for Small and Medium Enterprises with the following business lines which will be added to the list of industries to enjoy incentives for investment in Vietnam, including business investment in the product distribution chain of small and medium-sized enterprises, business investment in incubation facilities for small and medium-sized enterprises, business investment in technical facilities supporting small and medium-sized businesses, investing in a common working area for small and medium-sized start-ups.

The investors who invest in Vietnam in the business lines above in supporting industries for small and medium-sized enterprises from May 15, 2020, will be entitled to specific tax and land incentives specifically as required by law. Domestic and foreign investors could utilize the opportunity to make investment to enjoy the incentives in Vietnam when conducting businesses.

ANT Lawyers offer corporate establishment service to help clients with offices in Hanoi, Ho Chi Minh City, and Da Nang.

Thứ Ba, 8 tháng 12, 2020

Which Form of Investment - Branch or Company?

 Foreign entities can set-up company or branch offices in Vietnam to carry out business activities.



There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam.

Conditions

Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.

Foreign enterprise must choose between establishing a 100% foreign capital enterprise or forming a joint-venture with domestic investor or company.

Certificate

The Branch office needs to apply and obtain the operation license of a Branch;

A foreign owned company will need to apply and obtain the investment certificate (“IC”) to operate in Vietnam.

Capital

Optional, foreign entity will decide how much money to invest in branch. The allocation capital for branch is capital for the subordinate units.

Mandatory, foreign entity will need to provide minimum capital as required by Vietnam Law in conditional investment area.

Obligation of owner

For branch office in Vietnam, owner takes full responsibility;

For company, owner takes responsibility within the capital contributed into the company in Vietnam;

Other matters

For branch office setting up in Vietnam, the procedure is less complicated compared to those for the establishment of a 100% foreign owned company; the branch office is able to carry out trading and some other activities as stipulated by Vietnam laws and the WTO commitments which Vietnam enters. The business lines of a branch have to be aligned with the business lines of the headquarter of the foreign entity.

Setting up foreign owned company would be more complicated than the setting up of the branch office, however this form of investment has more flexibility and freedom as it is a stand alone Vietnam entity recognized under Vietnam laws.