How to establish company in Vietnam?

  Foreign investors may invest in the form of 100% capital to establish company in Vietnam, being limited liability company, joint stock company, partnership company.

Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates. Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

A project dossier for establishing company in Vietnam shall comprise:

Registration/Request for issuance of Investment Certificate;

A report on financial capability of the investor;

Draft of the company’s charter;

List of members of company;

Copy of the people’s identity card, passport or other lawful personal certification, for individual members;

Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;

Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.

Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;

Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;

The joint-venture contract or Business Cooperation Contract (BCC);

Other documents required by Vietnam law.

The establishment of a company in Vietnam would take from 30 days. The extra time might be needed in case the investment area is conditional or the State government needs to examine the investment project. Minimum capital, special licenses or other conditions might be required in certain investment projects.

The law on investment constantly changes which ANT Lawyers will monitor and provide relevant update.

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How to Set Up Company in Hanoi?

 The Law on investment 2021 has a lot of investment incentive policies in economic sectors in Vietnam for foreign investors.

Foreign investors that invest in Vietnam in general and Hanoi in particular for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted Investment Registration Certificates (“IRC”) and Enterprise Registration Certificate (“ERC”). Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

The investor who wishes to apply for IRC in Hanoi, s/he need to have a possible project which is accepted by the Government (The Department of Planning and Investment of Hanoi City). The dossier on applying for IRC

For Investment Registration Certificate, the investor must prepare the dossier included:

i) An application form for execution of the investment project, including a commitment to incur all costs and risks if the project is not approved;

ii) A document about the investor’s legal status;

iii) Document(s) proving the financial capacity of the investor including at least one of the following documents: the investor’s financial statements for the last two years; commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;

iv) Proposal for the investment project including the following main contents: investor or method of investor selection, investment objectives, investment scale, investment capital and plan for raising capital, location, duration and schedule of the investment project, information about the current use of land in the location of the project and proposed demand for land use (if any), demand for labor, proposal for investment incentives, impact and socio – economic efficiency of the project and preliminary assessment of environmental impact (if any) in accordance with regulations of law on environmental protection.

If the law on construction requires formulation of a pre-feasibility study report, the investor is entitled to submit the pre-feasibility study report instead of a proposal for the investment project.

v) If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;

vi) Contents of the explanation for the technology to be used in the investment project if the project requires appraisal and collection of opinions on the technology in accordance with the Law on Technology Transfer;

vii) The business cooperation contract if the investment project is executed under a business cooperation contract;

viii) Other documents relating to the investment project, and requirements on the eligibility and capacity of the investor in accordance with regulations of law (if any).

After having the project, the investor needs to apply for Enterprise Registration Certificate, the dossier included:

i) An application for enterprise registration;

ii) The enterprise’s charter;

iii) A list of members of a limited liability company with two or more members or a list of general partners;

iv) A notarized copy of identity card or valid passport of individual member;

v) A notarized copy of the Enterprise Registration Certificate of the organization’s member;

vi) A notarized copy of valid identity card or passport of the organization’s legal representative;

vii) The copy of Investment Registration Certificate.

The time for applying the investment project is 15 working days and the time for applying the company is 03 working days after the date of submitting the valid dossier.

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Benefits of Investors to Set-up Business in Ho Chi Minh City

 Ho Chi Minh City offers many benefits for foreign companies to do business and invest.

The population of Ho Chi Minh City is of more than 10 mil, earning a higher average income than other part of the country. Consumer retail has found Ho Chi Minh City as an attractive market for investment in retail shops, malls, introducing quality consumer goods to the local.

Ho Chi Minh City offers adequate infrastructure such as the Sai Gon port systems, deep seaport access from Vung Tau port systems, Tan Son Nhat international airport, and possible Long Thanh international airport project, Saigon railway station, the expressways, etc, connecting the city to neighbouring countries in the region and other part of the world. Through setting up factories in industrial zones, processing zones, local and international manufacturing companies could take advantage of high quality labor resources at reasonable cost and move the finished goods to final destinations in US, EU with reasonable lead-time and expenses. Consequently, the city has become leading industrial city of Vietnam, contributing more than 30% industrial production, 30% GPD and 30% national income to the country’s total.

Ho Chi Minh City is also a financial center, which the biggest stock exchange is located. Many corporations, and investment companies has chosen Ho Chi Minh City to set-up management and investment offices to search for opportunities, conduct Merger and Acquisitions and other business transactions, to leverage the annual growth of the country at more than 6%.

At the same time, the city government has been improving policies to support the removal of difficulties for foreign-invested enterprises investing in Vietnam through fixing administrative procedures to shorten the administrative process, saving time for investors, offering “one-stop” mechanism at the main state agencies.

Our professional consultants and lawyers have assisted a number of foreign companies and individuals to conduct transactions, set-up companies, make investment through M&A, and actively involve in the development of Ho Chi Minh City in particular and the whole country

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Why Investors Should Set up Business in Phu Quoc

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

Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia. Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.

Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.

Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51 km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.

The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.

Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.

Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.

The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.

ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Phu Quoc through its affiliate office. We assist clients needing legal service in obtaining investment certificate, business registration, or other licensing procedures in Phu Quoc, Kien Giang Province, Vietnam.

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Benefits of Investors in Setting up a Business in Da Nang

  Da Nang is one of the five major cities in Vietnam, having a geographical location that is particularly conducive to rapid and sustainable economic development. Da Nang has important transportation routes such as the China-ASEAN international railway crossings, seaports and international airports.

Da Nang is one of the tourist centers of the country, has rich tourism potential including natural tourism resources and humanities. Da Nang has many famous scenic spots such as Hai Van pass, Son Tra mountain, Ba Na hills, Ngu Hanh Son, Cham Museum or My Khe beach have been voted by Forbes magazine as one of the six most beautiful beaches in the world. These conditions are favorable for the development of diversified forms of tourism such as travel, research, cultural.

Da Nang have infrastructure development, four types of roads are popular: high way, rail way, International airport and International sea way. Da Nang have the sea lanes to most major ports in Vietnam and around the world. It helps investor more convenient to travel everywhere in Vietnam and other countries. Moreover, Da Nang’s water supply, electricity supply and communication system has developed rapidly and is increasingly modernized, ranking third in the whole country after Hanoi and Ho Chi Minh City. Da Nang have Da Nang Port, which help investor in import/export activities easily.

The first advantage of the policy mechanism is that Da Nang has also had great support the mechanism and policies for socio-economic development of Da Nang. Since Da Nang was recognized as a national grade I city in 2003, Da Nang has implemented guidelines, regulatory directions and the issuance of specific regulatory mechanisms. With the support from the Central Government, Da Nang authorities have also developed appropriate policies and mechanisms to facilitate the development of the economy, such as the one-stop-shopping mechanism, so Da Nang which is considered as a locality with attracting investment policies in Vietnam. Examples: Procedures related to investment, investment locations, clearance and handover plan, the granting of business registration certificates and investment preference certificates shall be carried out under the one-stop-shopping mechanism at the provincial municipal all of them are resolved at Da Nang Administration Center. Investors shall be exempt from all expenses related to the settlement of investment procedures apart from the payment of business registration fees according to the provisions of law. When investing in Da Nang, investors not only enjoy many preferential policy from city government but also have chance to find clients from many countries or compete with other companies in Vietnam and foreign countries.

Tradition of unity, consensus of people and the dynamism and creativity of the leadership, these advantages has aroused, mobilized the strength, the most important and decisive resource for the development of Da Nang. The determination of leaders, city authorities in building programs, projects with the support of the people, investors, enterprises, ect that help investors who will invest in Da Nang have highest benefits.

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Why Da Nang is a Place for Setting up Business

 

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

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

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

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

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

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

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

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

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Differences Between Limited Liability Company and Joint Stock Company

 How to distinguish a Limited Liability Company and a Joint Stock Company?”

Vietnam Law allows the establishment of a company in Vietnam in various forms. It is an important step in investment process.

Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.

Currently, Limited Liability Company (“LTD”) and Joint Stock Company (“JSC”) are two popular enterprise forms operating in Vietnam.

What is the difference between these two forms of companies?

I. Organizational Structure

Number of members/shareholders:

LTD

Single member LTD: Having only one member (member can be an organization or an individual);

Multi members LTD: Having at least 2 members and not exceed 50 members (member can be an organization or an individual).

JSC

Joint Stock Company has at least 3 shareholders and not limit the maximum number.

Management structure

LTD

Single member LTD

Single member LTD owner by an organization shall be organized under two models: Company president, Director/General director and Supervisor; (OR) Members Council, Director/General director and Supervisor.

Single member LTD owner by an individual shall be organized as follows: Company president, Director/General director.

Multi members LTD

Multi members shall be organized by: LTD Council members, Chairman of the Members Council and Director/General director;

Multi members LTD having 11 members or more shall establish the Board of Supervisors.

JSC

JSC can be organized under two models: General Meeting of Shareholders, Board of Directors, Board of Supervisors and Director/General director; (OR) General Meeting of Shareholders, Board of Directors (Board of Internal Supervisors under Board of Directors) and Director/General director.

II. Capital Contribution

Raising capital

LTD

Single member LTD: Owner increases charter capital

Multi members LTD: Members increase their charter capital, or increasing the number of capital contributors

JSC

Different from LTD, JSC can raise its capital by various methods as follows: Selling shares to existing shareholders; Selling shares individually to non-shareholders; Issuing shres on the stock market.

Transfer of contributed capital

LTD

Single member LTD: Owner transfers a part of contributed capital to other persons and this could lead to changes of the type of business or other procedures if all capital is transferred (for instance in a M&A deal).

Multi members LTD: Offer the stakes to other members in proportion to their stakes in the company under the same conditions; The stakes could only be transferred to other persons if the members do not buy or do not buy completely within 30 days from the offering date.

JSC

The shareholders of JSC are free for transfer their contributed capital after 03 years from the establishment.

Having said that, LTD is a type of enterprise that the capital contribution is not the only link between the members of the company but they are also linked together by relationship. They may be acquaintances and trust each other to jointly contribute capital to establish an enterprise. Therefore, the management of the LTD is as complicated as JSC. With the larger the number of shareholders, the level of capital mobilization, voting power to decide on issues of the company based on the ratio of capital contribution of each shareholder, the management and operation of the JSC is more complex.

The ability to raise capital of a JSC is higher than a LTD. Because, JSC can issue shares to the public in the form of securities. When the stocks are listed on stock exchange, the information of company’s business operations must be public and more transparent.

The procedure to set up a company in form of an LTD or a JSC has not much differences.

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What is Statue of Limitation for Initiating Legal Action According to Arbitral Procedures?

  Arbitration law always set the the limitation period for request of dispute resolution. This means that the law applies a specific period for parties to bring the dispute to the arbitration. According to law on arbitration 2010 (“LOA”), unless otherwise provided by specialized law, limitation period for initiating legal action according to arbitral procedures is two years from the time of infringement of lawful rights and interests.

There is no regulation in arbitration law regarding consequence of expiration of limitation period, but Civil Code 2015 (“CC”) stipulates that: “if such time limits expire, the right to initiate such legal action shall be lost”. Arbitration council shall not resolve expired requests, which means council shall not judge which parties is right or wrong. Therefore, enterprise needs to request within the statutory time limits in order to be resolved. If not, the request
shall not be considered although there was request and related fees. In addition, it should be noted that the Court only applies time limits regulation at the request of a party or the parties provided that such request is filed before the first trial court of first instance makes a judgment, a decision on settlement.

However, there has been cases of non-applicability of limitation periods. Specifically, a limitation period for initiating legal action for a civil case shall not apply in any of the following cases: (i) Request for the protection of personal rights not associated with property; (ii) Request for the protection of ownership rights, unless otherwise provided by Civil Code or relevant laws; (iii) Dispute over land use right as prescribed in the Law on land; (iv) Other cases as provided by law. For instance, dispute over reclaiming deposited property is under case of non-applicability of limitation periods. Specifically, deposited property still belongs to ownership of depositor although the property had been transferred to depositary and reclaiming property is a measure protecting the right of property ownership, while dispute over the protection of ownership rights is under case of non-applicability of limitation periods.

In practice, the time between the time period of filing a lawsuit and the time period of infringement of lawful rights and interests can be longer than two years if there is time periods excluded from limitation periods for initiating legal action or there is re-commencement of limitation period for initiating legal action.

The time period during which one of the following events occurs shall be excluded from limitation periods for initiating legal action: (i) An event of force majeure or other objective hindrance which renders the person with the right to initiate legal action for a civil case or make the request not able to do so within the limitation period; (ii) The person with the right to initiate legal action for a civil case or to make the request is a minor or a legally incapacitated person, a person with limited cognition and behavior control or a person with limited legal capacity, and does not yet have a representative; (iii) The representative of a minor or a legally incapacitated person, a person with limited cognition and behavior control or a person with limited legal capacity has not yet been replaced in case that the representative being natural person dies or the representative being juridical person ceases to exist or in case that the representative, for good reasons, cannot continue his/her representation.

The limitation period for initiating legal action shall re-commence in any of the following cases: (i) The obligor has acknowledged part or all of its obligations to the plaintiff; (ii) The obligor has acknowledged or fulfilled part of its obligations to the plaintiff; (iii) The parties have become reconciled. The limitation period for initiating legal action for a civil case shall re-commence from the date following the date on which the above event occurs. Having said that, it is important to consult with dispute lawyers for the effective dispute resolutions should dispute arise.

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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

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Vietnam Tax laws updated

 

At ANT Lawyers, our tax consultants keep track of changes of Vietnam tax regulations to provide latest updates and best services to our Client. There have been significant supplements and adjustments on Vietnam Tax Law that has been promulgated and to be effective from Jan 1st, 2014. The aim of changes is to overcome the drawbacks of the current VAT act and the effect of the Law amending and supplementing a number of articles of the Law on Corporate Income Tax. On Jun 19th, 2013, the National Assembly passed Law No. 31/2013/QH13, amending and supplementing a number of articles of the Law on VAT.

1. Supplement additional provisions of Article 5 of the Law on VAT about objects are not subject to VAT: a) personal insurance, agricultural insurance; b) insurance on vessels, equipment and other necessary tools for direct fishing; c) loan services of taxpayer whom are not credit institutions, debt traders, foreign currency traders; d) collateral of debt sold by state organization that has 100% of the state-owned authorized capital established by the Government to deal with bad debt of Vietnam credit institutions.

2. Tax rate: a) supplement list of goods and services for export qualified for 0 % tax rate; b) leasing, renting, selling social houses shall be subject to tax rate of 5%. This supplement takes effect on 01/07/2013; c) tax rate of 10% of VAT shall be cut by 50% for leasing, renting and selling commercial houses with area floor of less than 70 m2 and their selling price is lower than 15 million VND per sqm. This changes of Tax laws will play an important role in reducing storage of supply in the real estate field as well as supporting low-income people who are in need of accommodation.

3. On the VAT registration threshold and the tax calculation method: a) supplement regulations that businesses have revenues below 1 billion / year to pay VAT by direct methods, unless there is a voluntary registration to apply this method (paragraph 5 of Article 1 of the Law); b) supplement provisions on VAT based on revenue percentage for i) distribution, delivery the goods: 1%; ii) production, transportation, services associated with goods, building materials including the supply of materials: 3%; iii) services, construction not including the supply of materials: 5%; iv) other business activity: 2%.

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New procedure in marriage with foreign element

 

From February 17th 2014, the marriage between Vietnamese and foreigner belonging to one of following cases must be consulted, supported by the Center of Consulting, supporting marriage and family with foreign element:

– A spouse is 20 years older than the other.

– The foreigners get married the third time or have married and divorced with the Vietnamese ex-spouses in the past.

– Either spouses have not yet understood the family situation, personal situation of each other; don’t understand the language, customs, habits, culture, laws on marriage and family of the other country.

In above cases, the Department of Justice at provincial level must organize interview(s) before issuing the Clarification of marriage status for Vietnamese party.

Besides, after 90 days from the date issuing marriage certificate, if the parties do not conduct marriage registration ceremony, the Marriage Certificate will become invalid.

ANT Lawyers, your lawyers in Vietnam.

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Why Foreign Workers Should Declare Personal Income Tax (PIT) in Vietnam

 

According to the Vietnam General Department of Taxation, when the Vietnam tax authorities identify those foreign workers in Vietnam, who are subject to Personal Income Tax (PIT) in Vietnam and foreign countries, but fail to declare tax, such foreign workers or foreign employee will be liable to the administrative sanctions on tax in Vietnam.

Even though for foreign workers in Vietnam who have returned to their home countries or relocate to other countries prior to the tax declaration period in order to avoid tax obligations, the tax authorities would cooperate with their employers in Vietnam to collect the tax liabilities of such. Pursuant to the current laws and regulations, tax authorities, based on the scale of the tax violation in Vietnam, shall be able to apply sanctions.

In particular, the warning sanction shall be applied to the not so serious violations having mitigation details and is applicable to warning sanction. The warning sanction shall be decided in writing. The monetary fines applied to the tax violations are specified as follow: i) maximum fine of VND 200 million (USD 9,000) for the tax payer having the violations on procedures; ii) maximum fine of VND 100 million (USD 4,900) for individual tax payers that violate the tax procedures specified by Law on administrative sanction; iii) for incorrect declarations leading to a decrease in the amount of tax or increase in the amount of tax reimbursement, the fines is 20% of the undeclared tax or the over-reimbursed; iv) for fraudulent activities in tax declaration, the fines shall vary from 1 to 3 times of the tax evaded.

If you are seeking service in tax declaration, we are available to assist.

Contact us at ANT Lawyers, your lawyers in Vietnam at email ant@antlawyers.vn or call +84 28 730 86 529.

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How Divorce Procedures Involving Foreign Elements in Vietnam Are Regulated?

 

The procedure for divorce in Vietnam involving foreign elements is one of the complicated procedures. Therefore, when implementing this procedures, the parties need to pay attention to the related legal provisions to avoid problems when conducting the divorce procedure in Vietnam or involve family lawyers for assistance in preparing documents and filing petition, especially if there are potential dispute in custody or common assets, properties division.

 Divorce dispute lawyers in Vietnam

Divorce involving foreign elements means termination of the husband and wife relation under a court’s legally effective judgment or decision, in which at least one partner is a foreigner or an overseas Vietnamese or in which partners are Vietnamese citizens but the bases for terminating that relation are governed by a foreign law, or that relation arises abroad or the property related to that relation is located abroad, according to the interpretation on “divorce” and “Marriage and family relation involving foreign elements” of Law on Marriage and family 2014.

The parties when implementing this procedure need to ensure that s/he has the right to request a divorce as prescribed in Article 51 of the Law on Marriage and family 2014. Specifically, the subject of the divorce procedure must be the wife or the husband, or the legal guardian of s/he in the case s/he lost the civil act capacity. The husband has no right to request a divorce when his wife is pregnant, gives birth or is nursing an under-12-month child.

The divorce between a Vietnamese citizen and a foreigner or between two foreigners permanently residing in Vietnam shall be settled at a competent Vietnamese agency. In case a partner being a Vietnamese citizen does not permanently reside in Vietnam at the time of request for divorce, the divorce shall be settled in accordance with the law of the country where the husband and wife permanently co-reside; if they do not have a place of permanent co-residence, the Vietnamese law shall apply.

The Court in Vietnam has the jurisdiction to settle the divorce request. More specifically, the People’s Court of province have the jurisdiction to settle the case in which involve parties or properties in foreign countries or which must be judicially entrusted to representative agencies of the Socialist Republic of Vietnam overseas or to foreign courts.

The Court will settle the case according to the procedure on code of civil in Vietnam. The time to settle the case will be based on the details of the case. The time limit for trial preparation is from 04 to 06 months from the date the Court accepts the case. The time to set up the court is from 01 to 02 months from the date on which the decision to bring the case to trial is issued. The marriage relationship will terminate from the date the Court has the valid divorce decision.

Besides, the dossier on divorce involving foreign elements including the documents related to marriage relationship, the identification and the documents related to the property, children according to the regulations on Law on Marriage and family 2014 and Code of Civil procedure 2015. In detail, the dossier includes the petition for divorce, the copy of Identification or other personal documents (Passport, Identification card); the copy of Household book, the original of Marriage certificate, in case the parties lost the original of Marriage certificate, the parties could provide the copy of Marriage certificate with the confirmation of competent authority and need to show this information in the petition for divorce, the copy of the birth certificate of the child/children (if having the common child/children); the copies of the documents on the ownership of the property (if increasing the dispute).

In addition, when submitting the dossier on requiring to settle the divorce case: (i) if the parties got married in Vietnam, then the spouse exits abroad (and s/he could not find the address of the spouse), s/he needs to have the confirmation of the competent authority that the spouse existed; (ii) if the parties got married under foreign law wish to divorce in Vietnam, they need to implement the procedure on legalization the Marriage certificate, other related documents, and note in the register book of Department of Justice, then submit the divorce petition. In the case the parties did not implement the procedure on note in the register book but they still wish to divorce in Vietnam, they need to show the reason why they did not make the marriage note.

The person whom submit the divorce petition will submit the dossier to the People’s Court of Province where one of the parties are residing in Vietnam. The Court will check the dossier, if valid, the Court will issue the notification on paying the court fee. After the court fee is paid, the Court will accept the divorce case and issue the notification on acceptance the case to Procuracy, and defendant (the involved parties). Many Courts in Vietnam require the parties to implement the reconciliation step.

It is suggested to involve dispute lawyers if the case of divorce would turns out to be complicated when there are disputes on custody and assets or property division.

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Ho Chi Minh City: foreigners’ work permit in Vietnam is no longer renewable

 Ho Chi Minh City is not going to renew expired work permit in Vietnam for foreigners, noticed by Ho Chi Minh City Department of Labor, War Invalids and Social Affairs.

Ho Chi Minh City Department of Labor, War Invalids and Social Affairs (DOLISA) issued Notice No.6107/SLDTBXH-VL on May 16th, 2014 guiding the implementation of Decree No.102/2013/ND-CP detailing a number of articles of the Vietnam Labor Code regarding foreign workers in Vietnam. Pursuant to the notice hereof, in the case that expired work permits which has been issued under the provisions of Decree No.34/2008/ND-CP and Decree No.46/2011/ND-CP before the effective date of Decree No.102, enterprises shall apply to HCMC DOLISA for granting work permits under the issued procedures instead of renewal procedure provisions. In particular, for foreign workers having expired work permits and having desire to continue working in Vietnam, the sponsoring enterprise shall submit certificates of qualification, experience, criminal record in Vietnam and in foreign countries (judicial records), medical certificates and the sponsoring enterprise has to be approved by local People’s Committee to employ foreign workers.

As the current regulations, the foreign employee might be asked to present his or her work permit in Vietnam at entering or leaving Vietnam or when requested by government authority. It is suggested that enterprise wishing to employ foreign workers and foreign workers to counsel with employment lawyers in Vietnam in order to ensure compliance.

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Vietnam Bar Association Officially Petition to Amend Circular 28

 On August 7th, 2014 the Chairman of the Vietnam Bar Association has signed the petition submitting to the Minister of the Vietnam Ministry of Public Security, to officially request for consideration annulling or amending the scope of the Article 38 of the Circular No. 28/2014 (“Circular 28”).

Pursuant to the Vietnam Bar Association, the Article 38 of Circular 28 has various terms expanding the scope of rights and obligations of the investigators in comparison to the Criminal Procedures Code, Ordinance on organization of criminal investigations, Law on Lawyers and other relevant legal documents. This has led to the risk of subjective interpreting and implementing by the investigators, directly affecting the legal status, rights and obligations of the lawyers in Vietnam. Further, Article 38 of Circular 28 displays the unfairness in the legal proceeding relationship between the investigators and the lawyers in Vietnam. If the lawyers in Vietnam are found violating a specific obligation or profession’s operation detailed in the Article 58 of the Criminal Procedures Code, Article 6 of the Circular No.110/2013, the investigators could only report to the Head of the Investigating Agency, whom shall issue the decision to revoke the Power of the Attorney or propose other types of sanctions provided by laws. At the same time, the lawyers in Vietnam also have the rights to detect, report and request sanctioning toward investigators who hinder the right of the Vietnam criminal or penal lawyers and violate the tasks, jurisdictions specified by law. In accordance with the Article 3 and 10 of the Vietnam Criminal Procedures Code, all the legal criminal proceedings of the authorities, procedure-conducting agencies and procedure participants must be conducted in compliance with the terms and regulation of this Code. But the Article 38 of Circular 28 permits the investigators to “record the sound and video or conduct other measures to gather documents, evidences proofing for the obstructing, hindering acts for the investigating agencies” which are not considered appropriate.

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New law that impact Work permit in Vietnam for foreigners

 Vietnam has recently issued a new law that put a stricter control on foreigners working in Vietnam. With the changes being implemented from early November of 2013, the process to apply for work permit in Vietnam will take longer and would cost extra fees.

The work permit for foreigners in Vietnam will now require the approval from head of People’s Committee and that once it is issued, it will only be good for two years as max in compared with three years as regulated earlier. ANT Lawyers’ employment and labour lawyers in Vietnam keep track of the changes in the employment and labour law in Vietnam and assist our client to cope with changes. The Government has issued Decree 102/2013/ND-CP elaborating some articles of the new Vienam Labour Code 2012 on foreign workers in Vietnam. Accordingly, the employer applying for work permits of foreign employees must comply with the following procedure: step 1) make a report stating clearly the demand of employee in their companies, then send to the President of People’s Committee in order to apply for the permission of foreign worker employment; step 2) prepare documents and submit for work permits at Department of Labor and Social Welfare before 15 days at least of the date employees start work. The work permits shall be valid with maximum term of 2 years.

The new Decree also allows four group of others to work in Vietnam, including: i) Volunteers who work voluntarily without salary or wage; ii) The persons who are responsible to establish the commerce presences in Vietnam; iii) Managers, CEOs, specialists, technical workers who are trained in technology major at least 1 year and used to work at least 3 years in trained major; iv) The persons who are engaging in bidding projects and other projects in Vietnam.

Decree 102/20113/ND-CP takes effect on November 1st 2013 and replaces Decree 34/2008/ND-CP. If you need to apply for the work permits or relevant issues, we could assist. ANT Lawyers, your lawyers in Vietnam

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