Can Employer Terminate the Labor Contract with Employee Due To Covid 19 Outbreak

 Due to intricate occurrence of Covid 19, many enterprises are forced themselves to reduce the number of employees for maintaining the operation financially. Specifically, the employer has to make difficult decision to terminate the labor contract with the employee. The termination of the labour contract has to be considered carefully because of potential legal risks brought up which dispute lawyers in labour should be consulted before execution. Within this post, we are not trying to resolve all cases but only aiming to brief some matters of concern for preparation.

The employer could refer to the regulation in the Labor Code which allows “an employer may unilaterally terminate a labor contract if as a result of natural disaster, fire or another force majeure event as prescribed by law, the employer, though having applied every remedial measure, has to scale down production and cut jobs. Force majeure in this case is understood as (i) Enemy-inflicates destruction, epidemics (ii) Relocation or narrowing of the production and business sites, at the request of competent State agencies.

In particular, after applying corrective measures, over the time, considering enterprise’s financial potential is insufficient as well as the business production is reduced significantly due to epidemic, the employer may consider unilaterally terminate labor contract with employee. However, employer still have to abide by or ensure the rights to employee regarding the interests which employee is entitle to receive when being unilaterally terminated labor contract includes salary, severance allowance, social insurance, payment for untaken leave days, the tax payment which employer must paid for employee. Besides, employer also is subject to pay a compensation if consented by both sides are employer and employee.

Firstly, employer is obliged to pay salary to employee timely and fully as in the agreed labor contract by both parties;

Secondly, employer is responsible for paying the severance allowance to employee whom has worked regularly for full 12 months or longer at the rate of half of a month’s wage for each working year.

Thirdly, social insurance, employer is responsible for the fulfill payment of social insurance and perform the closing insurance book for employee after terminate the labor contract according to the law of social insurance.

Fourthly, if the income of employee subject to personal income tax, employer must extract from the income of employee to submit the tax to tax agency according to law on personal income tax.

If the client needs any other information or requires for further advice, our lawyers at ANT Lawyers in Vietnam will be available for service.

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What Activities Being Allowed Under Social Isolation in Vietnam in Directive No. 16?

 On Mar 31st, 2020, the Vietnam Prime Minister has issued a directive on social isolation to implement some urgent measures to prevent and control Covid-19 epidemic. There have not such incidents in the past therefore it is unclear on enforcement in legal implementation. In our opinions, this directive is more about suggested voluntary actions of each individual.

In summary, according to the directive, social isolation is applied throughout Vietnam from Apr 1st to Apr 15th, 2020. It is not prohibited to go out of the house but it is suggested only people with real needs should go out i.e. to buy food, gas, medicine and other emergencies. Government officer will be working from home. Private enterprises are also suggested to let people to work from home. There are business places allowed to be opened for providing essential products, and services. If the manufacturing sites and offices need to be opened to continue its production or business activities, they have to follow safety instructions i.e. not gathering more than two people, keep the distance of minimum 2m, always wear masks, clean hands frequently, disinfect the work place.

From legal aspects, there will be many unforeseen negative issues and subsequent legal consequences in disputes in labour relations, disputes in contract performance, disputes in business transactions, disputes between individuals and government authorities… arisen due to conflicts resulted from the social isolation. It is suggested that parties refer to the contracts, regulations and prepare for proper actions. In this case, disputed parties consider to negotiate to achieve common grounds with each others. If negotiation fails, disputes lawyers could be referred to for prior consultations and further steps.

To learn more about the directive of the Vietnam Prime Minister, please refer to our translated version below by associates of ANT Lawyers.

DIRECTIVE on the implementation of urgent measures to prevent and control Covid-19 epidemic

The Covid-19 epidemic broke out globally, affecting over 72,000 people, nearly 3.5 million people died in over 200 countries and territories and there was no sign of stopping. In Vietnam, the number of cases is increasing rapidly day by day and there is a high risk of infection in the community. It is predicted that the disease will spread rapidly on a large scale, seriously threatening human life, human health and socio-economic of the country.

In carrying out the call of the General Secretary, President Nguyen Phu Trong, with the spirit of putting great importance to the health and life of the people above all, to continue to proactively prevent and control epidemics, Prime Minister The Government requested ministries, ministerial-level agencies, government-attached agencies and People’s Committees of provinces and centrally-run cities to concentrate on implementing the proposed epidemic prevention measures, especially Directive No. 15/CT-TTg March 27, 2020, in compliance with the instructions of the National Steering Committee for Covid-19 prevention and control, effective implementation of the following urgent measures:

1.To perform social isolation within 15 days from 0:00 on April 1st, 2020 on a national scale according to the principle that the family is isolated from the family, the village is isolated from the village, the commune is isolated from the commune, the district is isolated from the district, the province is isolated from the province, workshops, manufacturing plants must ensure a safe distance, wear masks, disinfect according to regulations. Request people to stay at home, only to go out in case of necessity such as buying food, medicine, emergency, working at factories, production establishments, service-providing establishments and essential goods without being shut down and other emergency cases; strictly observe the minimum distance of 2m when communicating; do not concentrate more than 2 people outside the workplace, school, hospital and in public places.

The Prime Minister asked the entire population to voluntarily abide by the requirements, measures to prevent and control epidemics, actively participate in voluntary medical declaration, to fully implement measures to protect themselves and their families and participate responsibly with the prevention and control activities of functional agencies and the community; the heads of enterprises, production establishments, and goods and service business establishments are responsible for applying epidemic prevention and control measures at their establishments, ensuring the health and safety for employee.

2.The Ministry of Health, the Ministry of Public Security, the People’s Committee of Hanoi City and the People’s Committee of Ho Chi Minh City must be speedy, determined, mustering all resources and all measures to thoroughly handle “outbreak”at Bach Mai Hospital (Hanoi), Buddha Bar (Ho Chi Minh City); enlist every hour and every minute to trace and apply appropriate measures to all cases of risk, contact with patients and passers “outbreak”; continue to urge people to go back and forth through these “outbreaks” of medical reports and contact requests for testing. Request the Ministry of Public Security to coordinate with the health sector to make a list of people involved in the activities of Truong Sinh Company at risk of infection to monitor health, supervise, quarantine and promptly handle thoroughly source of the disease.

Relevant People’s Committees of provinces and cities closely coordinate with Ministries and 2 Cities to perform this task well. Carry out family isolation, medical declaration for classification, testing and concentrated isolation if necessary for those who have been to and from Bach Mai Hospital since March 12th, 2020; assign grassroots administrations to organize close supervision at each family.

The Ministry of Public Security and the provincial People’s Committee continue to urgently carry out medical review and examination, update the health status of people who have entered from March 8th, 2020 but have not applied isolation; make a list of people who have direct contact and close contact to classify screening, apply appropriate isolation measures (concentrated isolation, at home, accommodation establishments).

3.State agencies and units shall arrange for officials, public servants and public employee to use information technology working at home; only those cases that are really necessary such as combat duty, duty of the agency, supply of essential goods and services, processing confidential documents and other necessary tasks are required to work at the office; strengthen online meeting organization. The head of the organization is responsible for the infection of officials and employees because of not strictly observing the regulations on prevention and control of epidemics at the workplace.

4.The Ministry of Transport and People’s Committees of provinces and cities shall direct basically stop public passenger transport activities. Minimize the movement from one locality to another; stop moving from epidemic areas to other localities, except for special cases due to official duties and cases of provision of food, foodstuffs, necessities, shuttle buses for workers and experts of businesses, transporting production materials.

5.To assign the Ministry of Health:

a) Direct hospitals to implement strict procedures and management to avoid cross-contamination in hospitals; strictly control, require mandatory medical declaration for patients, family members, caregivers; only one carer per patient; stop visiting patients at health facilities. There are strict rules on admitting patients, not allowing an infected individual to affect the operation of the entire hospital.

b) Propose specific mechanisms and policies to support domestic enterprises in manufacturing medical equipment and instruments, especially ventilators, patient monitors, infusion machines, dialysis machines, reporting Deputy Prime Minister Trinh Dinh Dung directed.

c) Report to the Prime Minister the options, scenarios and emergency response in case of epidemic emergencies in the afternoon of March 31st, 2020.

d) Organize and arrange the continuation of medical examination and treatment at Bach Mai Hospital (Hanoi), ensuring safety for health workers, health workers and people at the request of the Steering Committee and the Ministry of Health.

d) Review and handle the recommendations of the Hanoi People’s Committee, support and create conditions for Hanoi to control epidemics in the locality.

6.The Ministry of Health shall synthesize and periodically publish 2 times/day positive test results in localities, ensuring accuracy.

7.Temporarily close the main and secondary border gates for passersby from 00:00 April 1, 2020 on the border lines with Laos and Cambodia. Strictly control the entry through international border gates on road border routes; All immigrants from Laos and Cambodia must be concentrated in isolation for 14 days.

8.The Ministry of Defense shall direct, organize and expand concentrated isolation facilities, separate new and isolated cases which are not isolated; strengthening the management of trails and openings on border routes.

9.The Ministry of Public Security shall intensify directing the assurance of order and security, preventing crimes, especially in rural areas.

10.The Ministry of Finance shall direct the General Department of Customs to handle problems related to the export of cloth masks; Require insurance businesses not to introduce and deploy insurance packages related to Covid-19 epidemics.

11.The ministries, branches, localities and the press agencies continue to promote information and propaganda in support of the people’s health protection policy, rectify a number of headlines that cause confusion and misunderstandings. The person in charge of prevention and control of non-verbal epidemic causes panic among the people.

12.The Ministry of Industry and Trade and the People’s Committees of localities pay attention to ensuring essential commodities, food and foodstuffs for the people.

Signed by Vietnam Prime Minister.

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Temporarily Stop Granting Work Permits to Foreigners Originating from Infected Area Because of Covid-19

 An outbreak of acute respiratory infections caused by a new strain of Corona virus (nCoV) was first detected in Wuhan City, Hubei Province, China in December 2019. Up to now, the disease has spread to many cities in China and more than 20 countries in the world including Vietnam. Facing new complicated movements of the acute respiratory disease epidemic caused by a new strain of Corona virus (Covid-19), on February 2nd, 2020, the Vietnam Minister of Labor, War Invalids and Social Affairs issued Official Dispatch No. 01/CD-LDTBXH on strengthening measures to prevent and control Covid-19 epidemics through the tighter control of immigration process, including the grant of visa, work permit, temporary residence card for foreigners originating from infected area.

Accordingly, the Ministry of Labor, War Invalids and Social Affairs shall propose the Employment Department and the Department of Labor, War Invalids and Social Affairs, the Management Boards of industrial parks, export processing zones and economic zones of localities to temporarily stop granting work permit for foreign workers from epidemic areas during the time when Vietnam declared the disease. This affects the entry into Vietnam of foreign workers who have not yet been granted a work permit under the law. According to Article 10 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014; Point c Clause 4 Article 1 of the Law on Entry, exit, transit and residence of foreigners in Vietnam amended in 2019; Clause 16, Article 1 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam amended in 2019 foreign workers to be granted LD1, LD2 visas and temporary residence cards of the same type, should be issued with a work permit in Vietnam. In addition, foreign investors in Vietnam are also affected, because the temporarily stoppage of granting of work permits will also affect the application for certification of foreign workers’ eligibility for exemption from work permit for investors, it also affects the foreign investor’s temporary residence card application.

In addition, it is required that enterprises and organizations employing foreign workers to temporarily stop accepting workers from China returning Vietnam after Tet holiday to work and foreign workers moving to endemic areas during the Covid-19 epidemic announcement. In case of having received such, the enterprise must report the list of employees who have just returned to Vietnam from China with the necessary information as required, carry out isolation measures at places of residence and workplaces under the guidance of the health authorities, and at the same time monitor and examine health within 14 days from the date of entry into Vietnam.

Labour lawyers at ANT Lawyers shall closely monitor the changes of labour law to provide client with update.

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The Note of New Provisions of Law on Planning Decree No.37/2019/ND-CP

 The Law on Planning 2017 has been effective from January 01st, 2019. On May 07th, 2019, the Decree no. 37/2019/ND-CP details some articles of Law on planning is effective. This Decree details some articles of Law on Planning including the Article 15,17,19,24,25,26,27,30,40,41 and 49 of Law on Planning.

This Decree applies to organizations and individuals involved in the formulation, appraisal, decision or approval, announcement, implementation, assessment and adjustment of the planning under the national planning system and other relevant organizations and individuals.

Therefore, the time duration for formulation of the national comprehensive planning, national marine spatial planning and national land use planning is not over 30 months, since the day approving the planning task. In the case the national planning system and province planning system, the time duration is 24 months.

This Decree details the contents of planning need to be published on the mass media: A summary of the planning contents must be published at least 01 time on the first page of a printed newspaper or on the homepage of the online newspaper for at least 30 days; The planning contents must be announced on news programs and television channels of national radio and television stations or provincial television stations.

The announcement of planning contents is also carried out through the following forms: model display, planning maps; conferences and workshops to disseminate planning contents and plan implementation plans; publications such as books, atlas, introductory videos…

The Decree specifies the professional capacity of this planning consultancy organization not belonging to state agencies. Pursuant to the Law on Planning 2017, the power to organize planning formulation includes: The Government shall organize formulation of the national comprehensive planning, national marine spatial planning and national land use planning; The Prime Minister shall organize formulation of regional planning; Ministry and ministerial authorities shall organize formulation of national sector planning; The People’s Committees of provinces shall organize formulation of provincial planning. However, the planning organization, the Ministries and Ministerial authorities and local governments shall select a planning consultancy in accordance with regulations of the Law on Bidding. The planning consultancy shall have a legal status and satisfy qualification requirements applied to its assigned tasks in accordance with regulations of the Government is regulated at Article 4 Decree 37/2019/ND-CP includes the conditions as follow:

Planning consultancy organizations must have at least 01 consultant, who is the planning project manager and must have a university degree or higher in the discipline related to the planning to be established to meet the prescribed conditions and at least 05 consultants presided over the planning component or planning contents for the national sector planning and provincial planning to meet the prescribed conditions. Consultancy organizations that formulate planning components or planning contents for national and provincial planning must have at least one consultant meeting the prescribed conditions.

The Consultants who are managers of planning projects must have a university degree or higher in the discipline related to the planning, and have established at least 01 planning of the same planning level that needs to be elaborated or directly participated in set up at least 02 plans of the same planning level.

In case the national master plan is first established in Vietnam, the consultant who is the planning project manager must have a university degree or higher in the discipline related to the planning needed to be established and the owner has established at least 02 regional plans or planning for the inter-provincial river basin.

Consultants who lead the formulation of planning components or planning contents for national and provincial planning sectors must have a university degree or higher in a discipline related to the planning component or planning contents. It is necessary to set up and directly participate in setting up at least 01 planning of the same planning level.

If the national master plan is first established in Vietnam, the consultant who presides over the planning component or the planning content for the national sector planning must have a university degree or higher in the specialized field. relating to the planning component or the planning content to be prepared and presided over at least 01 planning or directly involved in setting up at least 02 regional or planning for the scope of the inter-river basin the provincial.

Organizations that meet the above requirements may conduct planning consultancy for competent state agencies for planning. In Chapter II of Decree 37/2019/ND-CP stipulating the issue of planning, in this chapter, the responsibilities of planning agencies, for each planning, will specify the responsibilities Specific agencies such as: Responsibilities of agencies that formulate national master plans, national maritime space planning, regional planning; Responsibilities of agencies organizing the formulation of planning components and agencies making planning components… prescribe the time limits, tasks and contents of planning, but the planning contents must comply with orientations and points and development objectives of socio-economic space, regional space, social and technical infrastructure… according to regulations, create uniform consistency and ensure sustainable development objectives.

The Decree details about the information system and the national database about planning at Chapter V of this Decree, includes the contents about information and database as follow:

The information, database of the information system and national database about planning and information, the database is digitized, linked, integrated with each other, linked to the national geographic database and appraised in accordance with the law.

The scale of implementing the construction of national geographic database is determined by district administrative units; use VN-2000 reference frame and coordinate system for all types of information, map database.

Information and database collected to build a national planning information and database system include:

Database of national planning documents, regional planning, provincial planning, specialized technical planning, special administrative – economic unit planning, urban planning and planning rural areas have been approved and stored according to Article 44 of the Law on Planning;

Specialized database managed by Ministries, Ministerial authorities, People’s Committees of provinces and cities under the central government, including national statistical database and national statistical indicators system, provincial, district and commune levels; database on water resources; database on geology and minerals; environmental database; database on meteorology and hydrology; database of marine and island environmental resources; database on climate change; land statistics and inventory database; database of land use planning and plans; information and databases related to basic land surveys; database on technical infrastructure systems; database on social infrastructure systems; database on construction; database on urban systems and rural population points; database on housing and real estate market; database on national defense and security; relevant measurement and mapping databases;

National geographic database is standardized and updated regularly;

Information and databases on other planning.

The Decree stipulating the planning contents must be announced on the mass media: notices on national radio and television news programs for national planning and regional planning or provincial radio and television stations for provincial plans on summarizing the contents of decisions or approving planning and lists of projects prioritized for investment in the planning period.

Planning law and construction law have a close relationship. An important principle of planning activities is to ensure stability, avoid disturbance to business and production activities of enterprises and people’s lives. Decree 37 is expected to help clarifying issues, reducing overlapping in relevant legal provisions.

ANT Lawyers attorneys, a law firm with offices in Hanoi, Ho Chi Minh City and Da Nang regularly monitor legal changes to update customers regularly.

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Condominium Management Training Service

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

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

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

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

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

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

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

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

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

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

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

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

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

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Preferential import and export tariff according to EVFTA for the period 2020-2022

 On September 18, 2020, the Government issued Decree No. 111/2020/ND-CP on Vietnam’s Preferential Export Tariffs and Special Preferential Import Tariffs to implement the Free Trade Agreement between The Socialist Republic of Vietnam and the European Union (EVFTA Agreement) for the period 2020-2022.

Accordingly, the Decree stipulates the Preferential Export Tariff, the Special Preferential Import Tariff of Vietnam to implement the EVFTA Agreement and the conditions for enjoying preferential export tax rates and special preferential import tax rates according to this Agreement.

The preferential export tariff specified in Appendix I to this Decree includes product code, description of goods, and preferential export tax rates for different stages when exporting to a territory under the EVFTA Agreement, including: European Union member territories; United Kingdom of Great Britain and Northern Ireland for each code.

Goods exported from Vietnam to which the preferential export tax rates are applied must satisfy the following conditions: to be imported into any territory specified in the EVFTA Agreement, including member territories of the European Union, United Kingdom of Great Britain and Northern Ireland; have transport documents (copy) showing the destination is the above territories; have the import customs declaration of the export consignment of Vietnamese origin imported into the aforesaid territories (the copy and translation in English or Vietnamese in case the language used on the declaration is not English).

Vietnam’s special preferential import tariff for the implementation of the EVFTA Agreement is specified in Appendix II to this Decree, including product code, description, and special preferential import tax rates according to stages are imported from the European Union member territory; United Kingdom of Great Britain and Northern Ireland; The Principality of Ando; The Republic of San Morocco and the Socialist Republic of Vietnam (Goods imported from non-tariff zones to the domestic market) for each product code.

Imported goods eligible for special preferential import tax rates under the EVFTA Agreement must satisfy the following conditions: in the Special Preferential Import Tariff specified in Appendix II to this Decree; be imported into Vietnam from the member territory of the European Union; United Kingdom of Great Britain and Northern Ireland; The Principality of Ando; Republic of San Mary; and the Socialist Republic of Vietnam (Goods imported from non-tariff zones to the domestic market); meeting the rules of origin of goods and having proof of origin in accordance with the provisions of the EVFTA Agreement.

The provisions of this Decree only apply to goods exported from Vietnam to the the United Kingdom of Great Britain and Northern Ireland and goods imported into Vietnam from the United Kingdom and Northern Ireland for the period from August 1, 2020, to the end of December 31, 2020.

This Decree takes effect from the date of signing.

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What Are Responsibilities of the Seller for Inadequate Delivery of Goods?

  Delivering and receiving goods are basic obligations of the parties when performing the Contract for purchase and sale of goods. Specifically, in accordance with the law, when buying and selling goods, the seller must deliver goods and relevant documents, as agreed in contracts on quantity, quality, packing and preservation modes and other contractual terms.

In cases where there is no specific agreement, the seller is obliged to deliver goods and relevant documents according to the provisions of the Law on Commerce. At the same time, the Buyer is obliged to receive the goods as agreed and perform reasonable actions to help the seller deliver the goods.

If the Seller fails to deliver insufficient goods, they must deliver the goods in accordance with the contract. In case the Seller fails to deliver the goods as agreed, the Buyer has the right to purchase the goods from another person for replacement according to the goods specified in the contract and the Seller must pay the difference and relevant expenses, if any; reserves the right to repair the defect of the goods by itself and the Seller shall pay actual and reasonable expenses for the rectification.

The Buyer has the right to request to apply for penalty if agreed in the contract. The penalty for a breach of a contractual obligation or the aggregate fine level for more than one breach shall be agreed upon in the contract by the parties but must not exceed 8% of the value of the breached contractual obligation portion.

In the contract, where a contract-breaching party delays making payment for goods or payment of service charges and other reasonable fees, the aggrieved party may claim an interest on such delayed payment at the average interest rate applicable to overdue debts in the market at the time of payment for the delayed period, unless otherwise agreed or provided for by law.

Thus, when the Seller fails to comply with the commitments as in the contract, the Buyer has the right to initiate a lawsuit requesting a court to force the Seller to return the received amount of goods equivalent for the goods not yet delivered, interest due to late payment, contract fines, compensation for damage as required. In case the parties do not agree to penalty for violation, the Buyer only has the right to claim damages. In case the parties agree to fine for violation, the Buyer has the right to apply both the sanction of the violation and the forced compensation for damage, unless otherwise provided by law.

For the determination of civil liability when violating the sale and purchase contract, according to law, each juridical person must bear civil liability for the civil rights and obligations established and performed in the name of the juridical person by its representative. Each juridical person must bear civil liability by recourse to its property; shall not bear civil liability for its members with respect to civil obligations established and performed by such members not in the name of the juridical person, unless otherwise prescribed by law. A member of a juridical person shall not bear civil liability of the juridical person for the civil obligations established and performed by such juridical person, unless otherwise prescribed by law. Therefore, if the Seller breaches the contract, the legal entity being the Seller is responsible to pay the Buyer and the legal person is not responsible for that legal entity.

It is important to engage lawyers at an early stage of the dispute for consultation on effective dispute resolution. It is also advised, when entering into the Contract for purchase and sale of goods, the Seller needs to understand the basic legal provisions on its rights and obligations. The Buyer also needs to know clearly about the obligations of the Seller in order to be able to prevent the risk that arises when one of the parties breaches a fundamental contractual obligation.

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Process Setting-up Foreign Onwed Import Export Business in Vietnam

 If a foreign-invested company wishes to apply for export/import or distribution rights, it has to submit the below listed documentation to the competent authorities:

1. Export/Import rights:

The foreign investors who invest to exercise right to export, right to import must follow procedures for grant of investment certificates; the foreign-invested enterprises in Vietnam which supplement the operational business activities for exercise of right to export, right to import must follow procedures for adjustment of investment certificates:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities;

c. Documents proving the financial capability and experiences of investor in exercise of right to export and right to import;

d. Vouchers of tax agencies on performing the enterprise income tax liability within two consecutive years in the case the foreign-invested enterprises wish to supplement the exercise of right to export, right to import.

2. Trading activities/Distribution

The foreign investors with investment projects on exercise of goods trading and directly related activities in association with the setting up of enterprises must follow procedures for grant of investment certificates.

a. A dossier comprises:

i) Dossier of verification for grant of investment certificate as prescribed by law on investment;

ii) A written explanation about the satisfaction of conditions in exemrcise of goods trading and directly related activities according to the form MD-6 promulgated together with this Circular;

iii) Documents proving the financial capability and experiences of investor in exercise of busienss operation of goods trading and directly related activities.

b. After having acceptance opinion of the Ministry of Industry and Trade, the competent state agencies shall grant investment certificate. The investment certificate shall concurrently be business license. Although not stipulated in the law, before granting an investment certificate with these business lines, the authorities usually consider application on case by case basis, taking into account market stability, population density in the area where the company is located and the consistency of the investment project with the master plan of the said area.

For these business lines the competent authorities must obtain the approval of the Ministry of Industry and Trade before issuing the investment certificate.

3. License for setting up retail establishments

If a foreign-invested enterprise wishes to set up a retail establishment in addition to the first retail establishment, it must follow procedures for license for setting up retail establishment, a dossier comprises:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. Dossier of license for setting up retail establishments, comprising:

i) Application for license to set up retail establishment;

ii) A written explanation about the satisfaction of conditions of setting retail establishments as per the law;

iii) Document of provincial People’s Committee that approves the working result of the Council of checking the

economic demand to consider the conformity of setting up of a retail establishment in addition to the first retail establishment.

iv) Report on exercise of goods trading and directly related activities of licensed projects;

v)Vouchers, which are issued by tax agencies, about exercise of enterprise income tax liability in two adjacent years.

After having acceptance of the Ministry of Industry and Trade, the competent state agency shall grant the license for the setting up of retail establishments.

Our lawyers of foreign investment practice at ANT Lawyers, a law firms in Vietnam are available to advise and provide client with service and representation in Vietnam.

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Vietnam Set to Develop E-commerce and Target 55% of the Population to Shop Online

 On May 15, 2020, the Prime Minister issued Decision No. 645/QD-TTg approving the National Master Plan on e-commerce development in the 2021-2025 period aiming to develop e-commerce business area through changing in policy, creating favourable environment, increasing government spending, and attracting investors participating and setting up business in developing e-commerce in Vietnam to transform the economy toward industry 4.0.

Specifically, the Vietnam Prime Ministers set the following goals to be achieved by 2025: 55% of the population participate in online shopping, the average purchase value is 600 USD/person/year; e-commerce revenue increases by 25%/year, reaching 35 billion USD, accounting for 10% of the total retail sales of goods and revenue of consumer services nationwide; non-cash payment in e-commerce reached 50%, of which payments made through intermediary payment service providers accounted for 80%; the average cost for delivery and final order completion accounts for 10% of the product cost in e-commerce; 70% of purchases on e-commerce applications have e-invoices.

Regarding e-commerce applications in enterprises: 80% of e-commerce websites have integrated online ordering function; 50% of small and medium enterprises conduct business activities on e-commerce trading floor, including social network with function of e-commerce trading floor; 40% of businesses participate in e-commerce activities on mobile applications; 70% of electricity, water, telecommunications and communication service providers deploy electronic contracts with consumers.

To accomplish the above objectives, the Prime Minister proposed specific groups of solutions, including: perfecting mechanisms and policies to meet the needs of e-commerce development in the context of technology revolution 4.0; improving the management and organization of e-commerce activities, online dispute resolution (ODR), fighting against commercial frauds, intellectual property violations.

The Prime Minister’s policy shows the role of e-commerce in the present era. E-commerce is one of the pioneering areas of the digital economy, where the advanced technologies of the Industrial Revolution 4.0 are widely applied to increase the efficiency of the business cycle, contribute to modernizing the distribution system, improve the competitiveness of enterprises, promote the development of the domestic market and export. Besides, identifying the overall goal when developing e-commerce in Vietnam is support and promote the widespread use of e-commerce in businesses and the community; to bridge the gap between major cities and localities on the level of e-commerce development; to build a healthy, competitive and sustainable e-commerce market; to expand consumption markets for Vietnamese goods at home and abroad through e-commerce applications; to promote cross-border e-commerce and transactions; to become a country with a developed e-commerce market among the top 3 countries in Southeast Asia.

This is an opportunity for domestic and foreign investors in the field of e-commerce as well as an auxiliary service for e-commerce to promote business and investment activities in Vietnam through establishment of companies providing services.

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Cases Are Rejected When Get Married with Foreign Element

 The law of Vietnam prescribed quite detail about the marriage with foreign elements.

The registration of marriage with foreign elements will be rejected in the following cases:

-One or both parties are not old enough to get married under the laws of Vietnam

-The foreign applicant is not old enough to get married under the laws of the country of which he/she is a citizen or permanent resident (for stateless persons)

-The marriage between men and women is not due to a voluntary decision

-There is deception, coercion in the marriage

-One or both parties had husband or wife

-One or both parties had lost their capacity for civil acts

-The parties have the same direct blood line or relative within three generations

-The parties are or have been the adoptive parents and adopted children, father in law and daughter in law, mother in law and son in law, stepfather and his wife’s stepchild, stepmother and her husband’s stepchild

-The parties of the same sex (men marrying men, women marrying women)

-The marriage registration will also be rejected if the results of the interview, and verification showed that the marriage through illegal brokerage; sham marriage that is not intended to build prosperous, equal, progressive, happy and sustainable family; marriage is inconsistent with the fine traditions of the nation; taking advantage of marriage to trafficking of women, sexual abuse against women or for other self-seeking purposes.

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Construction Operation License vs Contractor's License

 The foreign contractors are only permitted to carry out construction activities in Vietnam so long as being granted construction operation license by Ministry of Construction as per the Construction Law.

EPC Contractors have increasingly been interested to learn the requirements of licenses and permits to operate in Vietnam. It is advised that the construction law firm in Vietnam with lawyers specializing in construction area to assist the foreign contractors to understand the legal frameworks, and requirements of foreign contractors before and after taking on construction projects in Vietnam after bidding result.

The regulations and procedures are promulgated in Decree No. 59/2015/NĐ-CP on management of construction investment projects and Circular No.14/2016/TT-BXD guiding on licensing construction activities and management of foreign construction contractors in Vietnam.

Investment in construction activities has been growingly rapidly. In order to meet the tender conditions and take part in construction activities in Vietnam, foreign contractors shall follow the regulations in Vietnam and obtain proper license during the preparation and the execution of the construction of the project.

Prior to construction operation license, foreign constructors have experienced another form of permit named contractor’s permits for foreign contractors in Vietnam. These are two concepts however the process of registration and document requirements are not so different.

There has been an effort to harmonize and reduce differences and conflicts arisen in many fields of laws regulating the mentioned subject and the new provisions of the Law on Bidding, Construction Law and the Investment Law to be issued in 2014 which establish a stable legal framework for the implementation of foreign contractor’s bidding and construction activities in Vietnam. This changes does not differentiate which position the foreign contractors are appointed from the lead contractor, the main contractor, contractor to subcontractor consortium. Unlike domestic contractors, foreign contractors must be granted construction operation license for each awarded contract. The amendment from the contractor’s permits for foreign contractor contribute to the unity of the same concept in different legal instruments regulating the license procedure of foreign contractors operating within the territory of Vietnam, and limit the unnecessary overlaps, difficulties to law interpretation and application of legal entities.

We shouldn’t forget to mention that the amendment of the foreign contractor’s construction operation license is to increase the relevance between the name and nature of the licensed activities of foreign contractors in construction operation. One of the initial conditions to a foreign contractor to be licensed is when the contractor has won a bid or been selected to be sub-contractor of an investment project. Therefore, the terms construction operation license shall demonstrate the role of the contractor in the construction projects they have been participated in.

The new construction operation license for foreign contractor is expected to be easier to relate to when foreign contractor take part in construction project in Vietnam. This would attract more foreign contractors to undertake construction projects in Vietnam to bring in the technology equipment, as well as the management skills to Vietnam.

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