How Long Are Immigration Restrictions Applied?

  Suspension of exit means a decision of competent authority  in Vietnam to suspend a Vietnamese or a foreigner residing in Vietnam from leaving Vietnam for a certain period of time.  In most cases, the person whom is subject to suspension of exit should be informed in advanced by the competent authority.  Immigration lawyers in Vietnam could also assist the person subject to suspension of exit to work with authorities for clarification and understanding for better preparation or resolving the situation on immigration restriction based on specific case below explained.

For foreigner, according to Law on Entry, Exit, Transit and Residence of foreigners in Vietnam, a foreigner may be suspended from exit if he/she is currently the suspect, the accused, or the person with relevant obligations in a criminal case; a defendant or a person with relevant obligations in a civil case pertaining to business, employment, administration, marriage and familial affairs or has to implement a judgment or decision of the Court or a Competition Settlement Council. Foreigners may also be temporarily suspended from exit if his/her tax obligation is not fulfilled or he/she is obliged to implement a decision on penalties for administrative violations; or be temporarily suspended from exit for reasons of national defense and security.

The persons belonging to above cases may still be allowed to exit if the person serving a prison sentence is escorted abroad to provide evidence in accordance with the Law on Judicial assistance. The time limit for temporary suspension of exit for a foreigner residing in Vietnam is not more than 03 years and can be extended.

For Vietnamese citizens, cases of suspension of exit include:

• Suspects and defendants; persons who are accused or filed for charge, later proved that they may have committed crimes thus must be prevented from escaping or destroying evidence as specified in Code of Criminal Procedure.
• Persons subject to delayed imprisonment, persons suspended from imprisonment, persons on parole during probation period, persons subject to suspended sentence during probation period, persons executing community services during sentence enforcement period according to Law on Execution of Criminal Judgment.
• Persons having obligations according to regulations and law on civil procedure if their obligations to government, agencies, organizations and individuals are proved to be involved in proceeding and their exit are proved to influence the proceeding, interests of government, legal rights and interests of agencies, organizations and individuals; persons subject to judgment execution.
• Civil judgement debtors and legal representatives of agencies and organizations obliged to execute judgment and decisions according to regulations and law on enforvement of civil judgment in Vietnam if their exit is proved to influence interests of government, legal rights and interests of agencies, organizations and individuals; persons subject to judgment execution.
• Tax payers, legal representatives of enterprises subject to enforcement of implementation of administrative decision on tax administration, Vietnamese making exit to reside overseas and Vietnamese residing overseas that have not satisfied tax liabilities according to regulations and law on tax administration before making exit.
• Persons subject to enforcement and representatives of organizations subject to enforcement of implementation of decision on administrative sanctions and to be prevented from escaping.
• Persons subject to inspection and verification, proved to have committed particularly serious violations and to be prevented from escaping.
• Persons contracted from dangerous and infectious diseases and to be prevented from spreading the diseases throughout community unless allowed by foreign parties for entry.
• Persons whose exit is identified by competent authorities to infringe national defense and security.

How immigration lawyers in Vietnam could help?

The duration of suspension of exit for Vietnamese citizens depends on each specific case, according to the provisions of the Criminal Procedure Code, the decision of the Minister of National Defense and the Ministry of Public Security. When the suspension period expires and is not extended further, Vietnamese citizens and foreigners can continue to leave the country when they wish. Or when the matters get complicated, the subject person could seek help from lawyers in Vietnam for advisory or represetation at Immigration Department Authority in Vietnam.

Source: https://antlawyers.vn/library/how-long-are-immigration-restrictions-applied.html

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Bankruptcy Law in Vietnam and How Bankruptcy Lawyer Can Help With Your Business?

  Facing the possibility of bankruptcy is a challenging situation for any enterprise doing business in Vietnam. Engaging a bankruptcy lawyer in Vietnam and understanding bankruptcy laws early in the process is essential.  Doing so ensures that the enterprise is well-informed, protected, and equipped to make the best decisions for its financial well-being and future prospects. Early involvement of a bankruptcy lawyer can help steer the enterprise other stakeholders toward a more successful outcome, whether that involves restructuring, settlement negotiations, or pursuing alternative options.

What Is Bankruptcy under Vietnam Laws?

Bankruptcy is a state of insolvency of an enterprise or cooperative that is declared bankrupt by the People’s Court.

Compared to the previous bankruptcy laws, the current Bankruptcy Law is more open to the subjects who can file for bankruptcy declaration. First, the Bankruptcy Law stipulates that unsecured and partially secured creditors have the right to file a request to open bankruptcy proceedings upon the expiration of the three-month period from the date the debt is due. 

In addition, employees and trade unions also have the right to file a petition to open bankruptcy proceedings after the expiration of 03 months from the date of payment of salary obligations, but enterprises do not pay.

In terms of the court’s jurisdiction to settle bankruptcy, the current Bankruptcy Law absorbed the spirit of the previous Bankruptcy Law, but improved. 

It stipulates that the district-level People’s Courts have the authority to settle bankruptcy for enterprises and cooperatives whose head office is located in the district, town or city of that province while under the old law, the district court was only able to resolve bankruptcy for cooperatives.

Provincial-level People’s Courts are competent to settle bankruptcy for enterprises and cooperatives that have registered their business in that province and bankruptcy cases with overseas assets or participants in bankruptcy proceedings abroad; insolvent enterprises and cooperatives have branches and representative offices in many districts of different provinces; the bankruptcy case falls under the jurisdiction of the district court but the provincial court takes it up for settlement.

In addition, the current Bankruptcy Law has some new provisions. For example, transactions of insolvent enterprises and cooperatives made in the 06 months before the date of the court’s decision to open bankruptcy proceedings if it is a transaction related to the transfer of assets not at market price; convert unsecured debts into secured debts or partially secured by assets of enterprises or cooperatives; donation of property; transactions other than the purpose of business activities of enterprises and cooperatives; other transactions aimed at dispersing assets of enterprises, cooperatives, etc., shall be considered invalid.

The bankruptcy procedure of a credit institution is first regulated in the current Bankruptcy Law. In which the law requires the credit institution to be obliged to file a petition for opening bankruptcy proceedings; in case a credit institution fails to file a request for initiation of bankruptcy proceedings, the State Bank of Vietnam shall file a request for initiation of bankruptcy proceedings against such credit institution.

In addition, the current Bankruptcy Law also adds a negotiation option between the parties before the court accepts the creditor’s petition. Accordingly, within 03 working days from the date the People’s Court receives a valid application for initiation of bankruptcy proceedings, the insolvent enterprise or cooperative and the creditor filing the request for initiation of bankruptcy proceedings shall have the right to request in writing to the People’s Court for the parties to negotiate the withdrawal of the application.

The People’s Court shall set a time for negotiation but not exceeding 20 days from the date of receipt of a valid petition for initiation of bankruptcy proceedings. If the parties can reach agreement on the withdrawal of the petition for initiation of bankruptcy proceedings, the People’s Court shall return the petition for initiation of bankruptcy proceedings. In case the negotiation fails or the negotiation time limit expires, but the parties do not conduct the negotiation, the People’s Court shall notify the applicant to pay the bankruptcy fee, advance the bankruptcy cost and accept the application for opening the bankruptcy procedure. products according to regulations.

How A Bankruptcy Lawyer in Vietnam Can Help?

A bankruptcy lawyer in Vietnam plays a crucial role in assisting stakeholders involved in a bankruptcy case. Bankruptcy proceedings can be complex and challenging, and a skilled bankruptcy lawyer in Vietnam specializing in bankruptcy law can provide valuable legal guidance and representation to various stakeholders.

Here’s how a bankruptcy lawyer in Vietnam can help different parties involved in a bankruptcy case:

For Debtors:
-Legal Counsel: A bankruptcy lawyer can provide debtors with legal advice on their rights, responsibilities, and available options. They can help debtors understand the implications of bankruptcy, including potential discharge of debts and the impact on their assets.
Debt Relief: Bankruptcy lawyer in Vietnam can assist debtors in filing for bankruptcy, depending on the applicable bankruptcy laws. They guide debtors through the process of submitting necessary documents and meeting requirements to seek debt relief.
Protection from Creditors: Bankruptcy lawyer in Vietnam can help debtors navigate automatic stay provisions, which temporarily halt collection actions by creditors. This gives debtors some breathing room to reorganize their finances and develop a repayment plan.

For Creditors:
-Claim Evaluation: Bankruptcy lawyer in Vietnam assists creditors in evaluating their claims against the debtor. They can determine whether the debt is dischargeable or non-dischargeable and whether any collateral secures the debt.
– Representation in Proceedings: Bankruptcy lawyer in Vietnam can represent creditors’ interests in bankruptcy proceedings, including attending creditor meetings, negotiating with debtors, and objecting to discharge if appropriate.
– Protection of Rights: Bankruptcy lawyer in Vietnam helps creditors understand their rights under bankruptcy law and ensure they are treated fairly during the bankruptcy process. They can also assist in asserting preferences or fraudulent transfers claims if applicable.

For Employees:
– Wage Claims: Bankruptcy lawyer in Vietnam can assist employees in pursuing wage claims if the employer has filed for bankruptcy. This ensures that employees receive the wages and benefits they are entitled to.
– Job Security: Employees can consult bankruptcy lawyer in Vietnam to understand their job security during bankruptcy proceedings. Lawyers can provide insights into how the bankruptcy may affect employment contracts and agreements.

For Shareholders and Equity Holders:
– Rights Evaluation: Bankruptcy lawyers can assess the rights of shareholders and equity holders in the context of bankruptcy proceedings. They can explain how bankruptcy might impact ownership interests and potential recovery.
– Representation: If there’s an opportunity for shareholders to recover any value from the bankruptcy estate, bankruptcy lawyer in Vietnam can represent their interests in negotiations and court proceedings.

For Investors and Lenders:
– Asset Recovery: Bankruptcy lawyer in Vietnam can assist investors and lenders in recovering their investments or loans if they are secured by assets of the debtor. They can navigate the priority of claims and help optimize recovery strategies.
– Negotiations: Bankruptcy lawyer in Vietnam can negotiate on behalf of investors and lenders with the debtor or other stakeholders to secure the best possible outcome for their financial interests.

Overall, a bankruptcy lawyer in Vietnam can provide tailored legal solutions and guidance to stakeholders involved in a bankruptcy case. Their expertise in bankruptcy law, negotiation skills, and advocacy can significantly impact the outcomes of bankruptcy proceedings for all parties involved while doing business in Vietnam.

Source: https://antlawyers.vn/update/how-a-bankruptcy-lawyer-in-vietnam-can-help-with-your-business.html

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How to Invest Through Acquisition – Advice from M&A Lawyers in Vietnam

 With the international integration, more and more policies to attract foreign investment have been introduced by Vietnam government including the facilitation of M&A transaction. It has been proven efficient if the transaction get help from M&A lawyers in Vietnam but it is important the investors understand the ideas and process.

M&A or Direct Investment in Vietnam?

Besides the fact that the investor could invest through setting up a company in Vietnam, the investor could also enter Vietnam through making investment by buying shares in a company or acquire contributed capital in company operating in Vietnam which is also considered as merger and acquisition transaction. 

Specifically, according to the provisions of the Law on Investment, foreign investor can invest in the form of capital contribution, share purchase, or acquisition of capital contributions from an economic organization. However, the investor must: satisfy market access conditions applied to foreign investors; ensure following national defense and security in accordance with the law; comply with regulations of the law on land and conditions for the receipt of land use rights and conditions for use of land on islands or border or coastal communes.

Unlike the case of investment in the establishment of an economic organization, the investment in the form of capital contribution, share purchase or purchase of contributed capital of an economic organization does not need to carry out investment registration procedures in Vietnam.

A foreign investor only shall follow procedures for registration of capital contribution or purchase of shares or stakes of a business organization prior to change of members or shareholders in one of the following cases:

(i) The purchase of capital contribution or shares increases the ownership ratio of the foreign investors in a company operating in the restricted investment business lines;

(ii) The capital contribution or purchase of shares or stakes results in a foreign investor or business organization specified in some points of the that cover the investors with investment over 50% of the charter capital of the business organization in the following cases: The holding of charter capital by the foreign investor is increased from less than or equal to 50% to over 50%; the holding of charter capital by the foreign investor is increased while such foreign investor is holding over 50% of the charter capital of the business organization.

(iii) The foreign investor that contributes capital, purchases shares or stakes of a business organization has a certificate of rights to use land on an island or in a border or coastal commune; in a coastal commune; in another area that affects national defense and security.

In addition to the above cases, the investor will carry out the procedures for changing shareholders or members in accordance with relevant laws when contributing capital, buying shares or buying contributed capital of economic organizations.

How risks could be minimized with the help of M&A Lawyers in Vietnam

Investing in a company in the form of capital contribution, share purchase, or capital contribution from economic organizations will help investors gain a number of benefits such as quick access to market, gaining customers’ trust, taking advantage of physical facilities, human resources, existing operating procedures, reducing the time to create a brand as well as reduce licensing procedures. However, investing in a company according to these methods also encounter some risks which the investors need to carry out strict legal due diligence by experience M&A lawyers in Vietnam, to check on the company’s compliance and validity of their licenses to mitigate risks.  Further, the investor also needs to undertake financial due diligence and operational due diligence to safe guard the potential economic benefits.

Source: https://antlawyers.vn/library/how-to-invest-in-vietnam-through-ma.html

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Binh Dinh: German Investors Want to Build A Wind Farm, Korean Businesses Interested in Assembling Cars

  In the last days of August and early September 2020, many potential investors from Korea and Germany have come to study opportunities to set up company and invest in Vietnam and specifically Binh Dinh province to explore investment opportunities, with billion USD projects.

At the meeting of the departments of Binh Dinh province with leaders of Hyundai Aluminum Vina Company and Cammsys Company of Korea coming to explore investment opportunities in this province, according to representatives of Cammsys Company, the company wants to find a suitable partner to develop and assemble electric cars and ready to transfer production technology to develop electric car in Vietnam market.

Through a field survey in Binh Dinh, the Company highly appreciates the infrastructure, traffic connection of the province with the region and the world, and wishes to cooperate with the development of projects to supply electric cars for the regions, tourist resort and production association of this vehicle in the province.

Meanwhile, the representative of Hyundai Aluminum Vina Company with the cooperation in Vietnam has been 14 years now; Total investment capital of the Company’s projects in Vietnam is up to 5 billion USD in many different fields. On this occasion, when coming to Binh Dinh province, Hyundai Aluminum Vina Company hopes to find a clean space with an area of about 200 hectares to invest in the infrastructure of the high-tech industrial park. If found a suitable position and approved for investment, the company will call and attract about 60 Korean investors to come and do business.

Binh Dinh has Quy Nhon Port which is the most convenient international trade gateway of the Central Highlands region and the province of southern Laos, northeastern Cambodia to countries around the world. In addition, the province also has a complete transportation system and infrastructure connecting air, road and railway, with direct flights to Korea. In addition, Binh Dinh is always and ready to support and create favorable conditions for mechanisms and policies, reform of administrative procedures, and support for investors.

In terms of German investor, Director of the High-Level Offshore Wind Power Project – PNE Group proposed to develop an offshore wind power park in Binh Dinh province with a total investment of 1.5 billion USD. This is one of the investors with more than 20 years of experience developing onshore and offshore wind power projects in Germany. At the same time, learning about mechanisms and policies to encourage wind energy development in Binh Dinh and the process of developing and approving wind power projects in Vietnam.

The group’s leaders believe that the implementation of the wind power park project in Binh Dinh province will make Vietnam become a competitive wind power supplier in the region and globally, contributing to the completion of sustainable development goals and the goals set out in the Vietnam Renewable Energy Development Strategy to 2030, with a vision to 2050, approved by the Prime Minister.

Vice Chairman of Binh Dinh Provincial People’s Committee welcomed the PNE Group for their interest in researching and proposing project investment in the province; At the same time, commiting to create the most favorable conditions for investors during the project implementation.

Source: https://www.antconsult.vn/news/binh-dinh-german-investors-want-to-build-a-wind-farm-korean-businesses-interested-in-assembling-cars.html

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Set up business in Vietnam or invest in contractual forms?

 

Foreign investors could make direct investment in Vietnam through different ways.  They could set up business in Vietnam or invest in the contractual forms of: BCC, BO, BTO, and BT.

Types of enterprise for foreign investors to invest and set up business in Vietnam are as following:

Set up Limited Liability Company in Vietnam

Limited Liability Company is a form of enterprise which is established by contributing of members.  A member shall be liable for the debts and other property obligations of the enterprise within the amount of capital that it has undertaken to contribute to the enterprise.

Limited liability companies are regulated by two types:

–    One member Limited Liability Company is an enterprise owned by one organization or individual;

–   Limited Liability Company with two or more members is an enterprise owned by organizations or individuals, in which the number of members shall not less than two members and not exceed fifty.

Organizational and management structure of Limited Liability Company normally comprise of a Member’s Council, General Director or Director.

Set up Joint Stock Company in Vietnam

Joint Stock Company is an enterprise which has charter capital divided into equal portions called shares.   The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.

Shareholders shall be liable for the debts and other property obligations of the enterprise only within the amount of capital contributed to the enterprise.

Joint Stock Companies may issue all types of securities to raise funds.  Founding shareholders must together register to subscribe at least twenty per cent (20%) of the number of ordinary shares which may be offered for sale.

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company. Management system of Joint Stock Company is more complicated than Liability Company.

Set up Partnership in Vietnam

A partnership is an enterprise which must be at least two members being co-owners of the company jointly conducting business under one common name.  In addition to unlimited liability partners, there may be limited liability partners.

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Set up Representative Office of Foreign Trader in Vietnam

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.

Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services), but the representative Office is permitted to

• To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;
• To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;
• To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;
• To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

Set up Branch of Foreign Trader in Vietnam

The Branch of a foreign business entity in Vietnam (referred as “The Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Investment by Signing Contracts in Vietnam

Beside having the options to set up business in Vietnam, investors could also choose to invest by not setting up a new entity.  Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:

(i)  Construction, operation and management of brand-new infrastructure facilities; and

(ii) Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:

•     Roads, bridges, tunnels, and ferry landings;

•     Railway bridges and railway tunnels;

•     Airports, seaports and river ports;

•     Clean water supply systems; sewage systems;

•     Wastewater, waste collecting and handling systems;

•     Power plants and power transmission lines;

•     Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and

•     Other projects as may be determined by the Prime Minister

Source: https://www.antconsult.vn/news/set-up-business-in-vietnam.html

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Set up company in Vietnam and comply

  Vietnam’s economy is increasingly diversified in terms of business activities and business regulations are also constantly being improved and enhanced. Accordingly, foreign investors can freely choose the right type of business to set up company in Vietnam.  After the investors set up company in Vietnam, the continuous procedures to comply is always a matter of great interest to foreign investors.

Why it is important to comply with the laws after the investors set up company in Vietnam?

Complying with the law after the investors set up company in Vietnam is of utmost importance for several key reasons.

Firstly, legal compliance ensures that your company operates within the boundaries of the law, avoiding any potential legal repercussions or penalties. Vietnam has specific regulations and requirements that businesses must adhere to, such as tax obligations, labour laws, environmental regulations, licensing requirements, and corporate governance standards. By following these regulations, you demonstrate your commitment to ethical business practices, maintain a positive reputation, and reduce the risk of legal disputes or regulatory actions.

Secondly, legal compliance fosters a stable and sustainable business environment. Adhering to the law helps create a level playing field for all market participants, promoting fair competition and ensuring that businesses operate on a fair and equitable basis. Compliance also enhances transparency and accountability, which can attract potential investors, partners, and customers who value companies with strong ethical practices. By establishing a reputation for legal compliance, your company is more likely to build long-term trust and maintain fruitful relationships with stakeholders.

Furthermore, compliance with the law safeguards the rights and interests of your employees. Labour laws in Vietnam provide essential protections for workers, such as fair wages, working hours, occupational safety, and social insurance. By complying with these regulations, you create a safe and equitable working environment, fostering employee satisfaction, loyalty, and productivity. Prioritizing legal compliance in Vietnam also minimizes the risk of labour disputes, ensuring harmonious and productive relationships with your workforce.

Lastly, legal compliance contributes to the overall economic development and stability of Vietnam. When businesses operate in accordance with the law, they contribute to a robust and sustainable economy. Compliance supports government initiatives, such as tax revenue generation, social welfare programs, and infrastructure development, which benefit the country as a whole. By fulfilling your legal obligations, you actively participate in the growth and progress of Vietnam’s business ecosystem.

What are steps to follow to set up company in Vietnam and comply with the laws?

With the promulgation of the enterprise law, the business setting up process has been adjusted with many favorable regulations for investors.  However, in order for a business to start up and comply in operation, the following basic steps should be noted:

The first step is to set up company in Vietnam. To take this step, the investor first needs to determine the type of business to choose to establish and provide the business name and expected information. Accordingly, the composition of the enterprise establishment dossier will be prepared according to regulations and submitted at the Business Registration Office, the Department of Planning and Investment of the place where it is expected to be headquartered. After submitting a valid application, the enterprise will be granted an enterprise registration certificate and announced the registration contents on the National Business Registration Portal.

The second step is to publish the contents of business registration. After being granted an enterprise registration certificate, an enterprise must make a public announcement on the National Business Registration Portal.

In the third step, the enterprise conducts stamp engraving. Enterprises can request to make a seal from the seal making agent. Accordingly, the enterprise actively decides on the type, quantity, form and content of the seal and is solely responsible for the use of its legal entity seal.

Fourth step is that to open a bank account in Vietnam. Currently, businesses can choose a bank to open an account for their business, to open an account, the bank requires an application form issued by the bank, a seal sample, the company’s charter, and a certificate. Business registration and related documents are required by different bank.

The fifth step is to register the tax declaration form in Vietnam. Accordingly, enterprises register for the use of e-invoices and notify the use of e-invoices to their tax authorities. Enterprises need to contact the invoice supplier to order the printing of value-added invoice books and must register self-printed invoices with tax authorities.

In the sixth step, the enterprise needs to conduct labor registration in Vietnam. Enterprises register with the Department of Labor, War Invalids and Social Affairs to declare the use of labor. Within 30 days from the date of commencement of operation, the employer must register the employer to the Labor Department (according to the prescribed form). In addition, enterprises should note that the relationship between the employer and the employee is regulated by the Labor Code and specified in the labor contract.

Seventh step is to register for social insurance in Vietnam. Enterprises register with the Social Insurance Agency to pay health insurance and social insurance for employees. Employers must fill in all information according to the form provided by social insurance, including: full name, date of birth, salary (recorded in labor contract), number of social insurance book (for employees who have been issued with a book), a certified copy of the company’s business registration certificate and a copy of each labor contract.

How a consulting firm in Vietnam could help set up company in Vietnam and stay complied?

It can be seen that in order for the investors to set up company in Vietnam, it requires investors to carry out a number of procedures and comply with many different regulations of tax, banking, labour, insurance… Therefore, besides learning about legal regulations and businesses can seek the support of professional consulting firm to set up company in Vietnam with expertise and experience in the field of business establishment to implement the process quickly and effectively.

Compliance with the law after the investors set up company in Vietnam is essential for maintaining a strong legal standing, fostering a fair and transparent business environment, protecting the rights of employees, and contributing to the sustainable development of the country’s economy. By upholding legal compliance, your company can thrive and build a solid foundation for long-term success in Vietnam while doing business in Vietnam.

Source: https://www.antconsult.vn/news/7-basic-steps-to-set-up-a-business-and-comply-with-vietnam-laws.html

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Tips to reduce risks when purchasing medical supplies from Vietnam

  As the Covid 19 pandemic is still occurring in many countries around the world, a large number of medical equipment or accessories being Personal Protective Equipment (PPE) such as N95 respirator masks, surgical masks and other items essential to protecting doctors, nurses, others on the front lines of the pandemic are required to be purchased and sold from many different countries to meet the demand for treatment disease globally.

Vietnam is a country that has many enterprises producing medical supplies such as medical gloves, medical masks, which are the focal points supplying goods to many businesses around the world. However, buying and selling quickly, and without researching their partners has caused many businesses to face many risks when purchasing of medical supplies in Vietnam. Here are some tips for buying and selling medical equipment in Vietnam safely and effectively.

Searching for a partner is the necessary work. Currently, to meet the increasing demand for buying and selling medical supplies, many companies switch to the medical supplies business as the broker to take opportunities in this field. It will help the buyer finding a selling partner more convenient because more brokers reach out to buyers.  However, there are many sellers who do not have a valid business registration or are not able to supply the goods, however, they still approach the buyer and guarantee to deliver the goods on request. Many buyers have been deceived by businesses that are not capable of doing business with the deposits, failure to deliver goods, deliver the wrong quality, quantity, … Therefore, searching for the seller carefully, and undertaking due diligence on the seller with the help of local risk management company will help buyers to avoid the risks of buying the wrong goods.

In terms of product prices, when buying medical supplies from a third party (not directly from the manufacturer), the price of the equipment could increase many times compared to the price offered by the manufacturer.  Sometimes, the brokers could not fix the price because their offering price depend on the buying price they receive from manufacturers or traders while the supply of goods are not guaranteed.  This could create problems for the buyer if the delivery and price have been committed to final clients oversea with hefty fine clauses if breaching the contract.

There are potential medical supplies without origin, or quality assurance, being purchased and sold to the market, therefore the buyer needs to ensure the seller provides qualified goods as their request.

When trading with an unqualified seller, there is a risk that the seller cannot meet the required quantity of the goods, especially in the case of the sellers are not the manufacturer. Because the number of goods produced could not meet the demand, in fact, many manufacturing companies in Vietnam have stopped accepting orders for some time from many customers.  However, many the third-party continue to receive orders from buyers, resulting in an inability to deliver on time or inability to meet the required quantity. When having a request for delivery from the buyer, these sellers will not answer the buyer’s questions, refuse to receive phone calls, emails, … leading to the buyer being inaccessible to the seller at this time which affects the business of the buyer.

Especially in the difficult situation when limited traveling between countries are allowed due to the pandemic, the discussion via electronic means such as Email or social network platforms, … will help the parties can discuss in an easy way. However, discussion or exchange of information via electronic means, will meet potentially risk when the buyer exchange with another third party (who may not be representative of the seller). In many cases, the parties exchange messages via regular messaging apps, which cannot determine if the subject exchanging is exactly the seller or not. In the event of a dispute when buying or selling goods, this proof is that the message which cannot determine the sender shall not be enough to prove the wrongdoings. Therefore, when exchanging communication, the parties should take precaution steps to verify the other parties ensuring the exchange is carried out properly with the authorized person.

In addition, to ensure the rights in the purchase and sale of medical supplies, signing the sale and purchase contracts is extremely important.  The contracts should be in written and duly signed and stamped by parties.  Trusting in business should be accompanied with legal documents for sustainable business.   When performing the contract in accordance with the regulations of the law will help the parties to limit risks and this is considered as specific legal evidence that forces the parties to comply with regulations and ensure their rights when buying and selling goods, especially international sale goods.

Finally, with significant transaction, the buyer could minimize risks through the helps of local risk management company in Vietnam to undertake due diligence on the seller’s business registration certificate, business location, real operation at site, adverse media check for past wrongdoings and general personal or corporate reputation.

Source: https://www.antconsult.vn/news/tips-to-reduce-risks-when-purchasing-medical-supplies-from-vietnam.html

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