vietnam

TIPS FOR DOING BUSINESS IN VIETNAM

TIPS FOR DOING BUSINESS IN VIETNAM

Tips for doing business in Vietnam 2020, When Expat want doing business in Viet Nam  Contact Us

Tips for doing business in Vietnam 2020, When Expat want doing business in Viet Nam, They need Advise of Lawyer in Viet Nam,  But for those planning to do business in Vietnam for the first time, it is important to learn about the country’s vibrant culture and traditions. Those that do will find it easier to work in the country...

Things to know when foreigners wish to business and labor in Vietnam

Consulting and answering questions about the alien to establish the enterprise, business, and labor in Vietnam:

Foreign traders are granted a license for establishment of branches in Vietnam when all the following conditions:

- a trader domestic law where it has established business registration or legal recognition;

- Having been operating for less than 05 years, since the establishment or registration of legitimate business.

License branch establishment in Vietnam of foreign traders have a term of 05 years but does not exceed the remaining term of the certificate of business registration or papers of equivalent value of foreign traders in case of legal foreign law prescribed deadline business registration certificate of foreign traders.

Competent agencies licensed

Ministry of Industry and Trade shall grant, re-grant, amend, supplement, extend, withdraw permits for the establishment of branches of foreign traders.

General conditions for record-level establishment license of the branch:

The papers issued by foreign agencies competent or confirmed to be legalization under the provisions of the law of Vietnam and translated into Vietnamese; translations, copies must be notarized by the law of Vietnam.

Copies of the documents by the competent agencies of Vietnam or certification must be notarized following the law of Vietnam.

The case does not permit the establishment of branches:

- Do not meet the provisions of Section 1 above.

- Traders trading foreign goods and services on the list of goods and services banned from the business following the law of Vietnam.

- Foreign traders applying for a license to establish their branches within 02 years from the date of withdrawal establishment license in Vietnam.

- There is evidence that the establishment of the branch prejudicial to the defense, security, social order and social safety, historical traditions, culture, ethics and fine customs of Vietnam and the health of people, deplete natural resources and environmental destruction.

- Filing invalid and no additional dossiers required by the competent authorities granting the permit.

Term license

- Within 15 days from the date of receipt of a valid application, the Ministry of Commerce completed the assessment and issued to foreign traders license for establishment of branches and send copies thereof to the provincial people's committee, the Department of Commerce, the tax authorities, statistical offices, provincial police office where the branches are located;

- If no valid documents, within 03 working days from the date of receiving the application, the agency must notify the license in writing to foreign traders supplement and complete the dossier.

- Immediately after the expiry of the above without the license for establishment of branches, the Ministry of Trade must notify in writing the foreign traders about why no license;

Notification activities

Within 45 days from the date of issuance of the license branch must publish written or electronic media is authorized to issue in Vietnam in 03 consecutive issues the following details:

- Name, the head office of the branch;

- Name and address of the headquarters of the foreign traders;

- The head of the branch;

- The number, date, and duration of the license for establishment of branches, agencies, and levels;

- The contents of the branch operation.

Within the provisions above, branch operations and must formally notify the Department of Commerce and Department of Commerce where the branch is located in the opening activities at the registered office.

The content of the branch activities

- Branch conducted the activities stated in the license for establishment and compliance with the law;

- In the case of branches operating in the fields of law which must have condition branch is only active when there are qualified under the regulations;

- Conditions for business operations are required which branch must have or must take when conducting business activities, in particular, is represented by business license, certificate of qualified business practice certificates vocational, professional insurance certificate, the legal capital requirements or other requirements specified by law on enterprises.

Open Bank Account

-Branches are open accounts payable in foreign currencies, in Vietnam Dong in the bank authorized to operate in Vietnam to serve the operation of the branch;

-In special cases, the branch is opened by an account at a foreign bank after being approved by the State Bank of Vietnam. The branch is responsible for reporting the State Bank of Vietnam on the use of open accounts overseas.

-The opening, use and closing of the account of the branch carried out by the State Bank of Vietnam.

Rights and obligations of branches and head of branches

The branch, the head of the branch performs the rights and obligations under the provisions of the commercial law and the following provisions:

-Branches are not implemented functions representing other traders, not to be leased back branch offices.

-The head of the branch of the foreign trader is not supported by the following office:

-The head of the representative office of Foreign traders in Vietnam

-Head of Representative office and branch of another foreign merchant in Vietnam.

Obligations of foreign traders against branches:

-Foreign traders must take responsibility before Vietnamese law for the entire operation of their branch in Vietnam;

-The head of the branch shall be responsible for its activities and the branches under the law of Vietnam in case of performing activities outside the authorized scope;

-At least 15 days before the branch terminates operations, foreign merchants, branches are obliged to complete payment of debts and other obligations with the State, organizations or individuals concerned following the law;

-Within 60 days from the date of termination of the branch of foreign merchants have the obligation to complete payment of debts and other obligations with the State, organizations or individuals concerned following the law.

NEED LAWYER  → LHD LAW FIRM

LHD Law Firm with 10 years’ experience advising foreign investors in Vietnam We will give you advice and clarify all your concerns and take care of your company license. Moreover, the LHD can help you with financial statements showing the Government of Vietnam and track your business activities and is always around to advise your business.
Price: upon request
Any support you may need, please contact us today via
 
Email/ Google hangouts: all@lhdfirm.com 
iMessage | SMS | Whatsapp | Viber | Zalo | Call: +84907996249
1 comment at post
  1. Visitor
    Doing
    26/08/2020

    An Introduction to Doing Business in Vietnam 2020, the latest publication from Dezan Shira & Associates, is out now and available for complimentary download through the Asia Briefing Publication Store. Doing Business in Vietnam 2020 In this issue: An Introduction to Vietnam How to Set Up in Vietnam Tax and Accounting HR and Payroll Vietnam follows an export-led growth model, as can be found in several emerging economies, combining trade liberalization and foreign direct investment promotion to spur exports. Vietnam’s growth has accelerated in recent years in part due to the US-China trade war, which kicked off in July 2018. As part of the fallout, Vietnam’s exports to the US rose by 28.8 percent year on year in the first quarter of 2019, making the US the largest importer of Vietnamese goods. A number of manufacturing businesses have also moved operations to Vietnam, including Foxconn, Samsung, and LG. In addition to building the country’s export capacity through the private sector, the government has pursued strategies to join several free trade agreements. With the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in effect and the EU-Vietnam (EVFTA) expected to be ratified soon, Vietnam’s Ministry of Planning and Investment forecasts Vietnam’s GDP could increase by 1.35 percentage points by 2035 with the EVFTA boosting GDP by 15 percent. These trade deals along with already signed FTAs are likely to ensure that Vietnam remains competitive in the short-to-medium term. Vietnam has been enjoying strong growth since the 1990s despite crisis and uncertainties in the global market. Its government has also worked to improve business policies. Vietnam continues to prioritize infrastructure investment and does not shy away from looking at countries outside ASEAN to fuel its growth. The government has also invested in industrial zones and this investment is expected to further increase as foreign investment pours in. These reasons have made Vietnam one of the fastest growing economies in Asia maintaining a 7 percent Gross Domestic Product (GDP) in 2019. In addition, Vietnam’s labor force is a competitive advantage and is an important part of Vietnam’s future economic growth. Vietnam is known for its young, hardworking, literate and easy to train workforce. All these factors make Vietnam an attractive destination for business, however challenges remain such as bureaucracy, language barriers, supply chain constraints, grey areas in regulations and infrastructure. We hope this business guide will provide investors with an insight into key aspects of undertaking and doing business in Vietnam and help you make an informed decision when beginning your operations in Vietnam.

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