Our employment practice at ANT Lawyers helps clients with the following:
Regulatory issues: advising on regulatory issues in relation to recruitment, employment and termination of labour contracts.
Employment documents: drafting, negotiating and amending labour contracts, office rules and collective labour agreements.
Licensing requirements: advising on the obtaining of work permits for expatriates, registration of office rules and collective labour agreements.
Labour dispute: mediating and reconciling labour disputes, representing clients before Vietnamese courts for settlement of personal and collective labour disputes, representing employee in employment dispute matters in Vietnam for best interests protection.
Please contact us for inquiries through email ant@antlawyers.vn or call our partner directly at + 84 912 817 823.
At ANT Lawyers, we provide patent attorney in Vietnam with specialized qualifications necessary for representing clients in obtaining patents and acting in all matters and procedures relating to patent law and practice in Vietnam.
Patent attorney in Vietnam
The inventors may obtain a patent in Vietnam without the assistance of a patent lawyer if they wish. However, this is almost full of risks. Ignoring the complexity of filing the registration application, the primary concern is whether an inexperienced inventor can write an application which satisfies rules as the requirement of Vietnam Intellectual Property law.
It can be said that Vietnam intellectual property law and procedure on patent registration are complex. That’s why valuable legal rights can easily be lost if the patent application and prosecution of that application are not handled carefully and precisely by one skilled in such matters. Companies that file lots of patent applications use patent attorneys for a reason that you almost certainly will get a better patent if it is done by a patent attorney.
If the inventor does not work with a patent attorney, some of dangers may occur in registering patent in Vietnam as following:
-Failure in providing enough file for patent registration;
-Making inaccurate statement such as incorrect description;
-Wasting time because the documents is not valid;
-Loss of patent right because of other patents;
-Loss of capability on exploiting economic from patent right;
With the above – mentioned risks, patent registration in Vietnam with the assistance of the patent attorney seem to be an effective way to ensure the client’s right. The patent attorney in Vietnam may help clients obtain patent quickly. The inventor also save time to focus on their core specialization if they use patent filing service.
The patent attorney in Vietnam assist clients as following:
-Advise about the procedure for registration prior submitting application;
-Compile all forms related to patent registration procedure;
-Prepare for registration dossier and conduct the registration;
-Subscribe to the application already filed and report to clients on the status of the application;
-Inform, advise and handle mission or refusal of Patent Agency;
-Get Patent and hand over to clients after receiving patent from patent Agency;
-Consult clients about the use of the invention, rights and obligations related to invention after successful registration.
All things become easy, convenient and safe if you get the assistance from a patent attorney in Vietnam in patent registration.
According to Vietnam Law on Intellectual property, a PCT applicant who would like to go into Vietnamese phase after the end of PCT procedures need to submit the application within the following duration:
If an international application designates Vietnam, the National Office of Intellectual Property in Vietnam (NOIP) is the designated office. In this case, in order to enter the national phase, the applicant shall submit, within 31 months from the date of priority, to the NOIP the following:
-Written declaration requesting invention registration, made according to a set form;
-Copy of the international application (if the applicant requests the entry into the national phase before the date of publication of the international publication);
-Vietnamese translation of the international application: The description, consisting of a description section, protection request, annotations for drawings and abstract (the published copy or initially filed original application, if the application has not yet been published, and modified copy and explanation of modified contents, if the international application has been modified under Article 19 of Patent Cooperation Treaty;
-National charges and fees.
If an international application elects Vietnam, the NOIP is the elected office. In this case, if the election of Vietnam is made within 19 months from the date of priority, in order to enter the national phase, the applicant shall submit, within 31 months from the date of priority, to the NOIP the following documents:
-Written declaration request;
-Sting invention registration, made according to a set form;
-Vietnamese translation of the international application: The description, consisting of a description section, protection request, annotations for drawings and abstract (the published copy or initially filed original application, if the application has not yet been published, and modified copy and explanation of modified contents, if the international application has been modified under Article 19 and/or Article 34(2)(b) of the Treaty);
-Vietnamese translations of annexes to the international preliminary examination report (when substantive examination of the application is requested);
-National charges and fees.
After having submitted the application, the time when the processing of an international application designating or electing Vietnam in the national phase starts is the first day of the thirty second month from the date of priority if the applicant files no written request for entry into the national phase earlier than the above time limits. The international application shall be put to formality examination and substantive examination according to the procedures applicable to ordinary invention registration applications. If the applicant requests in writing earlier examination of his/her application and pay the prescribed charge, the international application shall be examined earlier than the time limit specified above in accordance with the provisions of Article 2 3(2) of the Treaty.
Please be noted that in addition to the cases where an international application is considered withdrawn specified in the Treaty and the Regulation on implementation of the Treaty, an international application designating or electing Vietnam shall be considered withdrawn if the national fees are not paid to the NOIP or there is no Vietnamese translation upon the expiration of the set time limit.
It is important to adhere to the deadline and patent attorney of ANT Lawyers always follow up with the Client to remind on the schedule to follow when submitting for PCT application in Vietnam.
If you're looking for an affordable IP attorneys in Vietnam, check out ANT Lawyers was established to meet these needs by providing fast, effective and economical solutions. Hope that clears things up a bit. Feel free to message me directly to chat further about any other IP questions that you face.
Patent ownership of an invention or a utility is only established by the registration procedure, and in accordance with the scope of protection defined in each patent in Vietnam.
Register patent in Vietnam
Once a dispute arisen, without other evidences, the patent is the only and the most important proof to prove the ownership. Therefore, it is advised that filing a patent for an invention or a utility model shall be a prior prevention of an infringement.
Under the laws on Intellectual Property of Vietnam:
“Invention” means a technical solution in the form of a product or process which is intended to solve a problem by application of natural laws.
Unless an invention is common knowledge, it shall be protected in the form of the grant of a utility solution patent (or a utility model) when it satisfies the following conditions:
-It is novel
-And it is susceptible of industrial application.
With highly professional staff and great experience in IP aspect in Vietnam, ANT Lawyers would like to support you to register patent in Vietnam on an invention or a utility.
1. Our services in Patent for invention and Utility model
Our services in Patent field include:
-Searching, provision of professional opinions and advice in relation to registering ability of Patent/Utility model;
-Preparation, drafting the description and necessary documents, filing and prosecution of applications Patent/Utility model;
-Maintenance;
-Amendment;
-License;
-Assignment;
-Opposition against proceedings;
-Appeal;
-Cancellation;
-Invalidation;
2. How to file a patent in Vietnam
Inventors or Organizations or individuals who have supplied funds and material facilities to inventors in the form of job assignment or hiring have the right to file patent application in Vietnam.
An invention shall be protected in Vietnam when it satisfies the following conditions:
-Full name, address and nationality of inventor(s).
-Original Power of Attorney (POA) from the Applicant(s)
-Copy of the description, drawings and abstract of the patent application in English (in Word format) and/or the amended description, claims (if any);
-Certified document for claiming priority right (if any).
Note: The POA must be signed by the applicant or a duly authorized representative on behalf of the Applicant and no further notarization or legalization is required.
4. Patent Examination Procedure
The patent application will be examined by National Office of Intellectual Property of Viet Nam (NOIP) with Patent Examination Procedure as below:
-Formality examination: Under Intellectual Property Law of Vietnam, the above application will be examined as to form within one [01] month as from the filing date or date entering the national phase. If the invention application meets the requirements as to form, the NOIP will issue a decision of formality acceptance and then the application will be further processed. Publication of the Patent Application is within 02 months from publication date of 19 months from priority date.
-Substantive Examination: Substantive Examination does not automatically proceed from filing, and the applicant must request for substantive examination by 42 months from the priority date, or by 36 months if the request is for a utility model, otherwise the application will be considered as withdrawn.
-Notification of the Substantive Examination Results.
-The Decision of Refusal or Request to pay fee.
-Issuing the Patent of Invention.
5. Patent Term and Maintenance
Invention patents shall each have a validity starting from the grant date and expiring at the end of 20 years after the filing date. The owner of a Patent for Invention or Patent for Utility Model is required to pay annuity fees in order to maintain its validity.
If you are looking for experienced IP services in Vietnam to help you with your IP application, you should visit ANTLawyers. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP.
Under Law on Intellectual Property of Vietnam, copyright means rights of an organization or individual to Work which such organization or individual created or owns. In addition, the subject matter of copyright shall comprise literary, artistic and scientific works; the subject matter of copyright related rights shall comprise performances, audio and visual fixation, broadcasts and satellite signals carrying coded programs.
Copyright Consultant in Vietnam
However, in fact, it is challenging to prove the owner’s copyright if there is no prior prepared evidence. A registration of copyright is the most important proof if violation or dispute happens. The copyright registration shall deter infringement, when owner can prove that the Work is protected under copyright law.
-Provision of professional opinions and advice in relation to registration of copyright and related copyright;
-Advising, preparation, drafting, filing and prosecution of registration of copyright and related copyright;
-Provision of professional opinions and advice in relation to license and assignment of copyright and related copyright;
-Appeal and cancellation;
-Proceedings before the judicial authorities.
How to register a copyright or related rights in Vietnam?
Condition of copyright registration
A Work shall be registered its owner’s copyright if it does meet the following conditions:
-The ideas of the Work shall be presented particularly in a visible material
-The Work shall be original (Be made directly by the author without copying from any other works or people).
Required information and document
-Original Power of Attorney (POA) from the Applicant;
-Information of the author such as: Full name, Identify Card Number, Current address, permanent address; …
-Information of the Works such as: Name, the date of publication (if any), the place of Publication (if any); …
-Business registration certificate or establishment certificate (if applicant is association or organization);
-Written promise of being ownership of the work of the applicant;
-Some other specialized document with each specified aspect.
Note: The POA must be signed by the applicant or a duly authorized representative on behalf of the Applicant and no further notarization or legalization is required.
Duration of copyright protection
-The following rights are protected forever:
-Right to give titles to their works.
-Right to attach their real names or pseudonyms to their works; to have their real names or pseudonyms acknowledged when their works are published or used.
-Right to protect the integrity of their works; and to forbid other persons to modify, edit or distort their works in whatever form, causing harm to the honor and reputation of the author.
The following rights are protected within the stipulated duration in law
-Right to make derivative works;
-Right to display their works to the public;
-Right to reproduce their works;
-Right to distribute or import the original or copies of their works;
-Right to communicate their works to the public by wireless or landline means, electronic information networks or other technical means;
-Right to lease the original or copies of cinematographic works and computer programs;
-Right to reproduce their works.
The protection duration of each type of Work with the above rights shall be different. In particularly, cinematographic works, photographic works, stage works, applied art works and anonymous works shall have a term of protection of fifty (50) years as from the date of first publication. Other work shall be protected for the whole life of the author and for fifty (50) years after his or her death.
We are a copyright consultant in Vietnam with lawyers with qualification and experience to assist client from application, protection, and dispute handling process.
Trademarks are an important part of client company’s competitive edge. ANT Lawyers IP practice helps you protect these valuable intellectual assets, through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
It has been obvious that the protections of trademark have created significant value in intangible assets. Hence, the manufacturers of various products and service providers could establish and protect their identities and the identities of their products or services in the marketplace through the creation and protection of names, designs, logos, and explore strategies for protecting potentially valuable trademarks. Further, it is important to be ready to design an ongoing maintenance strategy to protect, extend, and maximize the value of trademarks, and discuss strategies for responding to possible trademark infringement if any.
ANT Lawyers IP practice helps you protect these valuable intellectual assets through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
-Recordals of Amendments, Assignments, Merger Agreements, Licences
-Filing Opposition & Responses
Our trademark attorneys in Vietnam will process client’s trademark registration by carrying out the following steps:
-Providing our clients with cost estimates for searching and filing applications
-Conducting comprehensive clearance searches including analysis about registration of the required trademarks and providing advice on the most appropriate and cost-effective method to obtain a clearance
-Preparing and filing trademark applications, including obtaining appropriate legalization of documents and translations (if applicable)
-Responding to objections raised by Registrars and potential third party oppositions
-Negotiating settlement agreements when necessary to overcome prior marks
-Obtaining a Certificate of Trademark Registration once your trademark is approved
-Recording changes in name and address of proprietor, assignments, licenses and renewals of trademarks
If you are looking for experienced IP services in Vietnam to help you with your Trademark application, you should visit ANTLawyers.vn. Our attorneys have experience with the IP process and will work closely with you as you apply for your Trademark in Vietnam.
Trademarks are an important part of client company’s competitive edge. ANT Lawyers IP practice helps you protect these valuable intellectual assets, through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
It has been obvious that the protections of trademark have created significant value in intangible assets. Hence, the manufacturers of various products and service providers could establish and protect their identities and the identities of their products or services in the marketplace through the creation and protection of names, designs, logos, and explore strategies for protecting potentially valuable trademarks. Further, it is important to be ready to design an ongoing maintenance strategy to protect, extend, and maximize the value of trademarks, and discuss strategies for responding to possible trademark infringement if any.
ANT Lawyers IP practice helps you protect these valuable intellectual assets through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
Trademark is the priceless asset of a company because of being used to distinguish goods or services of different organizations or individuals. Many international companies have found that others have registered trademark protection in Vietnam at National Offices of Intellectual Property (NOIP).
Because trademark is protected independently in each nation, it is easy for violators to abuse trademarks of other well-known companies for their interests in Vietnam. This could potentially put the real trademark owner’s under challenges when the clients or customers realize the product bearing the trademark they trust do not meet the standard they expected.
Opposition Procedures of Trademark in Vietnam
In Vietnam, after detecting their infringement registration process, you should submit an opposition notice to NOIP in Vietnam to prevent the violating trademark registration. To ensure your opposition shall be effective, you should enclose evidences and related documents.
With highly professional staff and great experience in IP aspect in Vietnam, ANT Lawyers, a qualified attorney and registered IP agent, could support you in opposition procedure of trademark in Vietnam.
Deadline for filing an opposition to a trademark application in Vietnam
The deadline for filing an opposition to a trademark application in Vietnam is stipulated particularly in the IP Law.
According to IP Law of Vietnam, during examination of trademark applications as from the date when a trademark application is published on the Industrial Property Official Gazette until prior to the date of decision on granting Certificate of trademark registration, an opposition request should be filed to the NOIP. Such request will not be accepted by the NOIP for handling if it is filed after the date of decision on granting trademark registration. However, under our current practice, the applicant could request for an acceleration examination, shorter than provided period of 09 months. Therefore please be noted that possible opposition should be filed as soon as possible.
Requirements
Pursuant to the IP Law, foreign opponents are not allowed to file opposition request directly at the NOIP but must authorize a lawful IP representative in Vietnam to proceed with trademark opposition in Vietnam based on an original Power of Attorney (POA). Under current practice in Vietnam, a copy of POA may be acceptable for filing opposition and the original one could be filed later. However, the NOIP will not consider the opposition until the original POA is filed and all formality requirements are satisfied.
Trademark opposition Procedure in Vietnam
The opposition request must be in written form and the source of its accompanied supporting materials (if any) must be specified.
A possible opposition will be considered at the time of the trademark application’s examination as to substance.
As a general procedures, within 01 month (in fact, the time can extend to 02-04 months) as from the receiving date of our opposition, the NOIP will consider and then may convey its contents to the Applicant and fix about 01 month for them to present opinions. After receiving response of the Applicant (if they submit), the NOIP will inform and give the Opponent 01 month for filing response, submission of opinions.
In some cases, the NOIP may give conclusion upon consideration of opposition without conveying its contents to the Applicant if they think that it is clear enough to conclude. It is possible for the NOIP to organize conversation between the Opponent and the Applicant, upon request of the two parties, to clarify the matter (if necessary).
Upon considering the evidences submitted by the two parties, the NOIP will make a decision to accept opposition or not.
If you are looking for experienced IP services in Vietnam to help you with your IP application, you should visit ANTLawyers. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP.
In Vietnam, many businesses today have not paid sufficient attention to trademark protection. Only when their trademarks would be infringed by other companies or competitors, they really concern to protect their trademarks and business through trademark registration, trademark opposition or take further actions. Such situation will negatively impact the business financially.
Trademark rights will be protected within the national territory, therefore when a trademark has been registered in Vietnam, it will be protected in Vietnam. If one company wishes their trademarks to be protected in other countries, it could:
-Directly register in each country or
-Register via the Madrid International registration by filing a single application which indicates the registrations at respective countries.
If registered under the Madrid International, firstly, trademarks must have been submitted trademark applications or have registered in Vietnam, depending on whether the country for protection is under the Madrid Protocol or the Madrid Agreement.
Law on Intellectual Property and its related documents could also be referred to for further information.
ANT Lawyers’ services in the field of trademark registration advice covers:
-Look-up, assess and consult possibilities to register trademark in Vietnam and abroad;
-Represent clients in applying for certificates of trademark registration, record modification, extend degree of trademark protection in Vietnam and abroad;
-Evaluate the effectiveness of the certificate of trademark registration in Vietnam and the possibility of trademark rights violation;
-Implement of the protected trademark rights: investigate, monitor, negotiate, seek arbitration or initiate a lawsuit or request other competent agencies for handling of infringement in Vietnam and abroad;
-Negotiate, draft, evaluate and register the of changing trademark ownership in Vietnam and abroad;
-Advise on building strategies, brand development;
Trademark protections plays important roles in start-up business or matured business models because the financial benefits it brings or even it could make a business to close down in worst scenario. Hence, at ANT Lawyers, an IP registered agent in Vietnam, we continuously strive to assist clients to protect its intangible assets of trademark through registration of trademark in Vietnam at early stage.
If you are looking for an experienced Trademark lawyers in Vietnam to help you with your Trademark application, you should visit ANTLawyers. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP.
According to Vietnam law on intellectual property, when detecting the trademark infringement act, the trademark owner has the self-protection right includes (i) apply technological measures to prevent acts of trademark infringement in Vietnam (ii) request organization or individual who commits an act of trademark infringement of the holder to terminate such act, make a public apology or rectification, and compensate damages; (iii) request the competent authority to handle with acts of trademark infringement in accordance with the provisions of laws.
Firstly, to apply the technological measures to prevent acts of trademark infringement measure, infringed party may give our the information related to original of emergence, trademark certificate, protection and duration scope and other information related to the right of trademark owner in order to inform that the infringed trademark are under protection warn the infringing party not to infringe. Besides, the owner of infringed trademark may use the technical means or measures to mark, identify, distinguish and protect the infringed trademark.
Secondly, the owner could also request organization or individual who commits an act of trademark infringement of the holder to terminate such act, make a public apology or rectification, and compensate damages. In particular, the trademark owners may themselves or authorize to individual or organization, IP attorney in Vietnam to send to the infringed party to stop the the infringement by indicating the information regarding origin of infringement, trademark certificate, protection scope, protection duration and set a reasonable period of time for the infringer to terminate the act of infringement. In addition, depending on the case and level of infringement, the written request will bear different content. It can be said that this is a prior-should-use measure before taking other measures including application of technological measures. If the violating party cooperates and stops the infringement, it will save time and money of both parties when not taking other stronger measures.
Thirdly, owner of trademark could request the competent authority to deal with acts of trademark infringement in accordance with the provisions of laws. When the trademark owner sends the request as mentioned above to infringing party, and, the violated party does not cooperate and continue the infringement, infringed party may sent a request to competent authority with the information such as: date of making the request; name and address of infringed party or their legal representative; name of receiving request authority; name and address of infringing party; name and address of the suspected violator in the case of request for temporary cessation of customs clearance for exports or imports suspected of infringement; brief information of infringed trademark and infringement; proposed measures to handle infringement; documents and evidence accompanying the request. Depending on the seriousness of the infringement, the petitioner may submit a request to the relevant authorities to apply administrative, civil, criminal or customs measures. Be noted that if the request is sent to custom authority for temporary cessation of customs clearance for imports or exports suspected of infringement, it is required to provide the additional information on the mode of import or export, country of exportation, mode of packaging, the lawful importer or exporter, features of lawfully imported or exported goods for distinction from infringing goods.
Overall, it is important to protect the intellectual property rights in Vietnam. Further, engaging with IP attorney in Vietnam will help the process efficiently from registration, managing the intellectual properties, protecting the intellectual property from infringement, and handling the disputes against the IP violators in Vietnam through administrative measures, civil litigation or even criminal prosecution.
Trademark protection in Vietnam is initially obtained through trademark registration. Trademark opposition could be filed to prevent a pending application for a mark from being granted application. Litigation is the final measure to handle dispute during trademark protection in Vietnam.
Trademark is a sign that help distinguish the goods or services of one enterprise from those of others. Together with industrial design and patent, trademark of goods and services plays an extremely important role for the growth of the enterprise. Trademark establishes a link between enterprise and customer. A strong trademark will attract customers to use goods or services. When trademark is popular and economic benefits achieved through sale of goods or provision of services coupled with trademark is large, the violation of trademark is inevitable.
Trademark protection in Vietnam
The annual reports of the Vietnam National Office of Intellectual Property (NOIP) prove that trademark violation in Vietnam is the most popular, among other industrial property rights. According to the preliminary annual report in 2011, and 2012, there has been more than 1,000 cases of trademark violations each year. Report of 2013 and after shows more than 2,000 trademark infringements were handled with the total fines of trademark violators of around USD 1 million per year. Having said that, it is important for trademark owner to register trademarks in Vietnam for better protection. This is also suggested for even well-known trademarks.
For registration, trademark owner has two options: either directly register trademark in Vietnam by filling an application for registration with the Vietnam NOIP, or seek the protection in Vietnam through Madrid’s system. For the first option, the trademark owner needs to prepare, file for registration, and pay fee as the requirement of Vietnam Intellectual Property law. In case trademark needs to be protected in a number of nations, including Vietnam, trademark owner may register trademark through Madrid’s system.
Where the violation of trademark occurs, trademark owner needs to judge the level of infringement, level of damage to choose suitable resolutions. Initially, the trademark owner may protect by requiring to the trademark violator to terminate the infringing acts, apologize, and rectify. In case of being damaged, trademark owners have rights to claim compensation. If failing to reach result, trademark owner may use settlement mechanism through negotiation or mediation or could request the competent state agencies to handle acts of infringement through i.e. filling a denunciation application and submitting to the Vietnam NOIP. Litigation might be required to handle acts of infringement. Generally, the proceeding of civil litigation is more complex than the arbitration proceeding. In cases the trademark owner needs a decision from court in order to end trademark infringement, civil litigation is top priority. In the remaining cases, arbitration is a better choice with advantages of cheaper cost, shorter settling time, and more flexible.
Trademarks are an important part of client company’s competitive edge. ANT Lawyers IP practice helps you protect these valuable intellectual assets through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
How to Handle Rejection of International Trademark Registration in Vietnam By The NOIP?
The procedure to register a trademark in Vietnam is carried out at the National Office of Intellectual Property of Vietnam (NOIP). The duration calculated from the full receipt of the dossier to the announcement is at least 12 months, or it can be expended from 16 months to 18 months.
However, in many cases, NOIP could send a notice on its intended refusal of the trademark application because of the following reasons:
-There are grounds to affirm that the subject matter stated in the application does not fully satisfy the conditions for protection;
-If there are more than one registration applied in the same time with full conditions to issue the protection title, but your application is not the first.
After receiving the refusal intention notice, applicants and all organizations and individuals have rights to reject the notice within 02 months, this duration can be extended one time, the extended time is 02 months.
If reasons in the notice are not correct and the applicant does not agree with the notice, within the given duration, the applicant could send written comment to NOIP, in which display the applicant’s comment, submit supplemental documents and proof to support.
After receiving the written comment, NOIP shall re-examine before issue the final decision.
The time limit for re-examination of applications is equal to two thirds of the time limit for examination; for complicated cases involving many circumstances which need to be verified or requiring expert opinions, that time limit may be prolonged but must not exceed the time limit for examination. Re – examination is only carried out one time.
However, in many cases, the applicant cannot display convincing arguments or reliable proofs, that makes NOIP does not agree and keep their own intention to refuse issuing the protection title. Therefore, when receiving intention notice to refuse issuing protection titles, applicants should find legal advice from consultants who have experience in intellectual property.
If you're looking for affordable Trademark attorneys in Vietnam, check out ANT Lawyers was established to meet these needs by providing fast, effective and economical solutions. Hope that clears things up a bit. Feel free to message me directly to chat further about any other IP questions that you face.
Counterfeit destroys businesses, business environments, markets as well as the image of the country. Handling trademark infringement in Vietnam has been practically challenging.
Vietnam government has been trying to curb the counterfeits however the results are limited. The counterfeit business generates huge profits due to the gap price anywhere in the world. Almost goods which is either popular or luxury, high or low-value of either domestic or foreign brands are being counterfeited, imitated in Vietnam. Falsification of household goods, food, cosmetics, shoes and items of higher value such as bags, watches, glasses, etc… may be found all over Vietnam. For effective anti-counterfeit, we need a close cooperation among the authority agencies in inspection, control of production, import and circulation in the market. The Southern Department of Goods Quality Control in Vietnam in one of its regular inspections when cooperating with competent agencies in Ho Chi Minh City found after checking 79 stores with 416 items including: oil, helmets, toys, electronic devices that 33.89% of goods of unsatisfactorily labeled, 14.5% unsatisfactory quality. Where the consumers buy counterfeit goods, they could and should report to State authorities, Anti-Counterfeit and Brand Protection Association as an effort to contribute to curbing counterfeit in Vietnam. The international brands being infringed could request assistance from local law firm in Vietnam.
After filing of the application for a trademark registration, applicants might wish to transfer theirs application to others. There are lots of reasons for this but most of them derives from practical business activities and development needs of market, and society. For instance, two subjects transfer the application to each other for profit purpose; individuals want to set up an enterprise in the future and register a trademark as individuals and then transfer the application to the legal person to get early the priority date; at the moment, individuals are unqualified to be applying in applicants’ s name then individuals have others to do in application, in the appropriate time, and when the individuals are qualified according to statutory, they would implement the procedure of transfer the application.
Transfer of application for a mark registration is implemented on voluntary basis between the parties or decision of the competent authority and shall be presented in the form of a written contract. However, owner of application is only allowed to transfer application at the following times: before National Office of Intellectual Property of Vietnam makes a decision on refusing to accept the application, decision on issuing or refusing to issue protection titles. If one of the parties in contract transfers application for transfer registration after the time mentioned above, that application shall not be accepted.
Necessary documents when implementing the procedure of transfer of application for a trademark registration include:
-Transfer contract: Contract must show name and address of transferor and transferee; the number of transferred applications or sufficient information to determine that application;
Declaration for registration of transfer;
Power of attorney (if authorized to industrial property agent i.e. ANT Lawyers).
According to regulations, duration of examining application for transfer registration is 2 months from the date of submission the application. However, this duration can be faster or slower, depending on the workload of National Office of Intellectual Property at the time the application is examined.
If the Client would like to know more about information and to be consulted about matters relating to transfer of application for a mark registration, please contact Intellectual Property department of ANT Lawyers, the trademark attorney in Vietnam.
If you are looking for an experienced IP services in Vietnam to help you with your IP application, you should visit ANTLawyers.vn. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP
What is the Requirements of Franchising in Vietnam?
Commercial franchising is an activity adjusted by Commercial law, whereby franchisors permit and require franchisees to undertake by themselves to purchase or sell goods or provide services on the following conditions: i) the purchase or sale of goods or provision of services shall be conducted in accordance with methods of business organization prescribed by franchisors and associated with the franchisors’ trademarks, trade names, business knows-how, business slogans, business logos and advertisements; ii) franchisors shall be entitled to supervise and assist franchisees in conducting their business activities.
Commercial Franchise Lawyer in Vietnam
Commercial franchise contracts must be made in writing or in other forms of equivalent legal validity and registered with Ministry of Industry and Trade excepting some regulated cases which are not required to register but report to Department of Industry and Trade which are domestic franchises and the franchises from Vietnam to overseas.
Firstly, the franchisors, except having otherwise agreed, have the rights i) to receive franchise sums; ii) to organize advertising for the commercial franchise system and the commercial franchise network; iii) to conduct periodical or extraordinary inspections of activities of franchisees in order to ensure the uniformity of the commercial franchise system and the stability of quality of goods and services.
In the meantime, the franchisors have the obligations i) to supply documents guiding the commercial franchise system to franchisees; ii) to provide initial training and regular technical assistance to franchisees for managing the latter’s activities in accordance with the commercial franchise system; iii) to design and arrange places of sale of goods or provision of services at the expenses of franchisees; iv) to guarantee the intellectual property rights over objects stated in franchise contracts; v) to equally treat all franchisees in the commercial franchise system.
For the franchisees, except having otherwise agreed, the franchisees could i) request franchisors to provide with full technical assistance related to the commercial franchise system; ii) request franchisors to equally treat all franchisees in the commercial franchise system.
The franchisees have the obligations to i) pay franchise sums and other amounts under commercial franchise contracts; ii) to invest adequate material facilities, financial sources and human resources to take over business rights and know-how transferred by franchisors; iii) to submit to the control, supervision and instruction by franchisors; to comply with all requirements set forth by franchisors on designing and arrangement of places of sale of goods or provision of services; iv) to keep secret the franchised business know-how even after the expiration or termination of commercial franchise contracts; v) to stop using trademarks, trade names, business slogans, logos and other Intellectual property rights (if any) or systems of franchisors upon the expiration or termination of commercial franchise contracts; vi) to manage their activities in accordance with the commercial franchise system; vii) not to sub-franchise without permissions of franchisors.
Besides the above rights and obligations, the parties may supplement others provisions demed necessary but not contrary to the provisions of law.
If Client needs more information or request for legal advice regarding commercial franchise in Vietnam, please contact with Commercial Franchise Lawyer in Vietnam at ANT Lawyers to be assisted.
The development of international supply chains has become a critical success factor for big companies, and should be seen as important key for products of developing countries to gain entry into high standard market such as USA, European Countries, and Japan. However, many Vietnam companies have experienced problems in shifting their supply chain abroad as well as managed their intellectual property such as geographical indication, trademarks.
Protecting Intellectual Property Rights Abroad for Vietnam Enterprises
On October 24th, 2017, Vietnam Intellectual Property Association (VIPA) in cooperation with the World Intellectual Property Organization (WIPO), Vietnam Chamber of Commerce and Industry (VCCI), International Association for the Protection of Intellectual Property Rights (AIPPI) organized the seminar “Protecting intellectual property rights abroad for Vietnamese enterprises” to provide Vietnam companies value information for protecting their Intellectual Property right in the Fourth Industrial Revolution and global supply chain development.
All the experts have strongly recognized the important role of intellectual property protection abroad for Vietnamese enterprises and introduced:
-Introduction to the International World of Intellectual property
-Protecting a valuable asset- How to protect your Brand with Madrid
-Options to protect an invention: Patent Cooperation Treaty (PCT) and trade Secrets
-Introduction to the international design System- Hague
-Other WIPO services, Tools and Products
-About International Association for the Protection of Intellectual Property- AIPPI (Association Internationale pour la Protection de la Propriété Intellectuelle) Vietnam is a member of the WIPO and is a signatory to the Paris Convention for the Protection of Industrial Property. It has acceded to the Patent Cooperation Treaty and the Madrid Agreement Concerning the International Registration of Marks, and in 2004 joined the Berne Convention. Therefore, the Vietnamese enterprises should file trademarks, patents or industrial designs by international systems for saving cost and managing the registration procedures effectively. However, it is suggested that the international Bureau of WIPO does not decide whether trademarks, patents or industrial designs are eligible for protection or not, and the final decisions must depend on Intellectual Property law of each country i.e. Vietnam. For differences of laws in every country and difficult techniques when preparing Intellectual Property application, applicants should find valuable assistant from Intellectual Property agent.
If you are looking for experienced IP attorneys to help you with your IP application, you should visit ANT Lawyers - An IP services in Vietnam. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP. We routinely match inventors with experienced IP attorneys for a free consultation on our platform and offer a money back guarantee.
Since joining WTO, Vietnam has been coping to comply with the international commitments in general and intellectual property area in particular. In order to ensure fair legal environment and the benefits of intellectual property right holders, the Vietnam laws provide a number of ways in which holders can apply the following methods to protect their intellectual property rights in Vietnam:
Negotiation: requesting organizations, individuals committing infringement acts of intellectual property rights to terminate the infringing acts, apologize, publicly rectify and compensate damages;
Using administrative remedies: requesting the competent agencies to handle infringement acts of intellectual property rights;
Filing claim at court or arbitration center: initiating a lawsuit at a competent court or an arbitrator to protect their legitimate rights and interests;
Negotiation is often used in the first step to request the violator to stop the infringement of intellectual property rights. However, this measure is not potentially effective because it dependents on goodwill and cooperation of the violator as well as the legal basis, evidences that you can provide to demonstrate and warn of violating acts.
Relating to the dispute settlements, due to high costs, complicated procedures and extended time, this measure is not commonly selected as the best treatment.
In Vietnam, intellectual property infringement is mainly dealt with through administrative measures. Depending on their functions and responsibility, competent state management agencies deal with infringements of intellectual property rights as per request of the IP holders Currently, through the following agencies:
Inspectorate of the Ministry of Science and Technology;
Economic Police of the Ministry of Public Security and;
Market management of the Ministry of Industry and Trade.
1.Submission of a written request to terminate an infringement of intellectual property rights:
This step is optional to save costs for the infringed party as well as deal with the infringement on the basis of goodwill and cooperation. The infringed party should send documents, including a persuasive Cease and Desist letter and evidences, to the violator for the purpose of requesting them to terminate the violation and commit not to repeat the infringement in the future. In fact, many intellectual property right holders have reached their goals at this step providing that they can collect enough proof.
2.Requesting the competent state agencies to handle acts of infringement of intellectual property rights:
In this step, the infringed party must prove both its ownership to the intellectual property and information, evidence of the infringement by the infringing party.
The application of administrative remedies is effective handled, so it should be preferable to filling a lawsuit. After requesting the administrative agency to penalize the infringing party, the right holder still remain their right to initiate a lawsuit in court to claim of damages. Actually, the combination of administrative measures and lawsuits at court would be more effective for intellectual property right holders.
ANT Lawyers - a Law firm in Vietnam with a team of experienced lawyers, IP consultants and IP agent in Vietnam in the field of Intellectual Property will help customers implement procedures for registering intellectual property rights in Vietnam in the most effective way.
Trademark is a type of asset of individual and organization. To be officially recognized as an owner of that trademark, the applicant needs to submit the trademark registration dossiers to National Office of Intellectual Property in Vietnam (NOIP), pay the examination fee and certificate issuance fee to receive the trademark certificate.
The trademark owner needs to have the consciousness of protecting the trademark certificate. However, if unfortunately, the trademark certificate is misplaced, lost or damaged, torn, stained or faded out that it can no longer be used, the trademark owner may submit the dossier to NOIP to request for re-granting the trademark certificate.
The specific required documents for re-granting the trademark certificate are:
-The declaration for re-granting the trademark certificate;
-01 mark specimen;
-Power of attorney (if submit the dossiers via IP agent).
NOIP will consider the dossier within 01 month from the date of submitting. In case the dossier satisfies the provisions of law, NOIP will issue the decision to regrant the trademark certificate and record into the National Register of Industrial Property. The information in the duplicate version of the trademark certificate will present sufficiently the information in the first-granted trademark certificate and attached with the phrase “re-granting version”.
In case of request for re-granting the trademark certificate does not meet the provisions of law, NOIP will issue the denied decision and clearly sates the reasons.
If you are looking for an experienced IP services in Vietnam to help you with your Trademark application, you should visit ANTLawyers. Our attorneys have experience with the IP process and will work closely with you as you apply for your Trademark in Vietnam.
Assignment of International Trademark Registration
In the progress of world integration, goods trading activities between countries and regions are becoming more and more developed, then the matters related to intellectual property is gradually being focused.
The individuals and organizations are aware of the benefit of registration the intellectual property subjects. In particular, they registered internationally for their trademark when widen their business abroad. After that, when trademark owner might wish to assign that granted certificate trademark to others for economic or other reasons.
Assignment of International Trademark Registration
In this case, international trademark was registered under Madrid agreement and Madrid Protocol, established under decision on acceptance for protection or international registration protected in Vietnam issued by National office of Intellectual property Vietnam (NOIP). Accordingly, the trademark application originated from Vietnam submitted to International office via NOIP. Thus, trademark owner whom wish to assign or register their trademark internationally pursuant to Madrid system would submit application via NOIP. However, for the application which appointed in the country which is the member of Madrid agreement, parties may request the international office to conduct the assignment procedure.
When conducting the assignment procedure via NOIP, applicant needs to prepare following documents:
Declaration for international trademark assignment;
Declaration of international office;
The copy of international trademark certificate in Vietnam;
The copy record of assignment to the local trademark;
Besides, other documents will be required based on specific cases.
ANT Lawyers - IP services in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for Trademark registration services in Vietnam via email ant@antlawyers.vn or call our office at +84 28 730 86 529.
Assignment of a trademark right means the transfer of ownership right by owner of such trademark right to another organization or individual.
Trademark Assignment in Vietnam be established in the form of written agreement. Oral agreements, letters or telegrams shall not be accepted and have no legal effect.
You are required to provide us the following documents:
-One executed original of Deed of Assignment, which must be signed and sealed by both Assignor and Assignee. Since the Deed of Assignment has two pages, both Assignor and Assignee should sign on each page or use company stamp to inter-cross seal over all pages (NO further notarization or legalization is required);
-A Power of Attorney (POA) that should only be signed by the Representative of Assignee;
-The relevant original Certificate of Trademark Registration (if recording the assignment for a registered one).
Procedures and time
After the recordal of assignment is completed, the NOIP will issue the following documents:
-The Notice of Assignment Recordal in case of a pending Trademark Application.
In addition, the name and address of new owner will be endorsed on the last page of this Certificate of Trademark Registration.
The whole duration for recordal of assignment in Vietnam will in straightforward case is 2 months counted from the filing date. However, in practice, this duration can be extended from 3-6 months.
Other matters
Under Vietnam Intellectual Property Law, the trademark assignment will not be approved in the following cases:
-The subject mark for assignment identical/confusingly similar to the trade name of assignor as it shall cause the confusion as to the origin of goods or services with those of assignor.
-The subject mark for assignment similar or identical to other trademarks but not for assignment of Assignor in respect of similar goods or services as it shall cause the confusion as to the origin of goods or services with the rest of assignor.
ANT Lawyers - IP services in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for Trademark registration services in Vietnam via email ant@antlawyers.vn or call our office at +84 28 730 86 529.
-Organizations and individuals that conduct lawful commercial activities may register marks for products they are marketing but produced by others, provided that the producers neither use such marks for their products nor object to such registration.
-Lawfully established collective organizations may register collective marks to be used by their members under regulations on use of collective marks. For signs indicating geographical origins of goods or services, organizations that may register them are collective organizations of organizations or individuals engaged in production or trading in relevant localities. For other geographical names or marks indicating geographical origins of local specialties of Vietnam, the registration must be permitted by competent state agencies.
-Organizations with the function of controlling and certifying the quality, properties, origin or other relevant criteria of goods or services may register certification marks, provided that they are not engaged in the production or trading of these goods or services. For other geographical names or marks indicating geographical origins of local specialties of Vietnam, the registration thereof must be permitted by a competent state agency.
-Two or more organizations or individuals may jointly register a mark in order to become its co-owners on the following conditions: i) This mark is used in the names of all co-owners or used for goods or services which are produced or traded with the participation of all co-owners; ii) The use of this mark causes no confusion to consumers as to the origin of goods or services.
If the subject falls into one of the cases mentioned above, they will have the right to register the mark at the National Office of Intellectual Property. After the subject condition has been met, consideration should be given to the condition that a mark can be protected as a trademark. In particular (i) It is a visible mark in the form of letters, words, drawings or images including holograms, or a combination thereof, represented in one or more colors; (ii) It is capable of distinctive goods or services of the mark owner from those of other subjects.
However, there are some exceptions even when the mark satisfies those two conditions. For example, marks identical with or confusingly similar to national flags or national emblems; or marks identical with or confusingly similar to emblems, flags, armorial bearings, abbreviated names or full names of Vietnamese State bodies, political organizations, socio-political organizations, socio- politico-professional organizations, social organizations or socio-professional organizations or with international organizations, unless permitted by such bodies or organizations shall not be protected as a trademark.
In order to register for protection of a trademark, the registrant should pay attention to the subject matter and the conditions for the trademark to be protected in order to avoid being refused at the registration authority because of the failure to meet the conditions for the subject or the conditions for protection.
IP Attorney in Vietnam at ANT Lawyers, a Law firm in Vietnam shall be providing the advice to client to help the clients evaluate and file registration for trademark, patent, copyright and other IP related services.
As regulation of law on intellectual property, the mark, trademark or service mark, is one of protected subjects of industrial property right. However, to be protected by law, the owner of mark shall apply protection registration dossier to competent authority prior. When the owner registers and is granted a certificate of registered mark, the owner shall have the exclusive right to label the product, service or both, right to allow others to use the mark throughout mark license contracts, right to assign the mark ownership and right to prevent breaching action from any third party.
However, a certificate of registered mark shall be valid from the grant date until the end of ten (10) years after the filing date. When the validity terminates, in order to continue being the owner of mark, the owner of Certificate shall implement the procedure of extending the protection validity of the certificate. It is important that the owner has to be aware of the time to apply dossier for a certificate extension in accordance with the law.
As regulation of law, time limit of extending mark certificate is prior or after six (06) months from the expiration date of mark certificate. If the extension is applied prior 06 months since the expiration date, the owner shall pay extension fee. If the extension is applied after 06 months since the expiration date, the owner shall pay extension fee and fine for late payment as month.
With highly professional staff and great experience in IP aspect in Vietnam, ANT Lawyers would like to support you in extending your trademark or service mark or both in Vietnam.
ANT Lawyers - IP services in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for Trademark registration services in Vietnam via email ant@antlawyers.vn or call our office at +84 28 730 86 529.
The Cases of Transferring Money from Vietnam Abroad
In the context of international economic integration, more and more foreign investors are coming and investing in Vietnam. Besides, many Vietnamese individuals and organizations have also implemented many investment activities, living, traveling… abroad. Therefore, there are needs to transfer money from Vietnam abroad. According to the provisions of Vietnamese laws on foreign exchange management, domestic individuals and organizations are allowed to transfer money abroad in the following cases:
How to transfer money from Vietnam abroad?
For individuals being Vietnamese citizens, they are entitled to buy, transfer or bring foreign currencies overseas according to the State Bank’s regulations for the following purposes: to study and receive medical treatment abroad; traveling; business trip; visiting abroad; to pay charges and fees to foreign countries; allowances for relatives members living abroad; transfer of inheritance money to overseas heirs; transfer money in case of permanent residence abroad; One-way money transfer for other legitimate needs.
For enterprises, they are allowed to transfer money from Vietnam abroad when performing the following cases: Carrying out payment and transferring money related to the import or export of goods and/or services; payment of payments and remittances related to commercial credits and short-term bank loans; make payments and transfers related to direct and indirect investment income; transfer money when being allowed to reduce direct investment capital; payment of debts and interest of foreign loans; make one-way money transfers; payment and other remittance according to regulations of the State Bank of Vietnam.
ANT Lawyers is a Law firm in Vietnam with international standards, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 juridictions. The firm provides a range of legal services as following to multinational and domestic clients.
How a Foreign Company Apply for Certificate of Origin in Vietnam?
Vietnam has growing fast due to the opening policy of the government, and has been signing a number of free trade agreements with ASEAN, China, Korea, Japan, India, Australia, New Zealand, Chile, Russia, Belarus… with effectiveness. The expecting Europe Vietnam Free Trade Agreement has been signed but not yet effective at this moment. Having said that, Vietnam has become a destination for foreign investors to set up factory and set up company in Vietnam to undertake manufacturing for export and enjoy tax preference because of Vietnam origin.
The applicant wishing to be granted the Certificate of Origin (“C/O”) needs to register the trader profile under Vietnam regulations before submitting the dossier applying for C/O. There are steps to be followed at the State authorities to check the trader profile, its legal registration in Vietnam, manufacturing facilities that produce the goods which are subject of C/O. Further, additional information and proof will be required for verification at Vietnam State Authorities including the declaration of origin provided by manufacturer or supplier of originating materials or locally produced originating goods if such material is used in subsequent stage to produce another good, good manufacturing process. Not only checking the documents, the authority could undertake an inspection visit to the manufacturing facility of trader and request the applicant to submit evidence of customs declaration of materials imported and used in production of exported goods (if imported materials are used in the production process); a sale contract or VAT invoice of locally purchased materials (if locally purchased materials are used in the production process) and other documents as deemed necessary. If the documents, the process, and the conditions are met, the C/O will be issued.
In general, an originating good is a good which is originating in a country, group of countries, or territory where the last processing operation is performed and substantially transforms such good. To qualify for non-preferential goods, there will be required of:
1.“Change in tariff classification” (hereinafter referred to as CTC): means a change in two-digit, four-digit, or six-digit HS heading of a good as compared with the HS heading of non-originating materials (including imported materials and materials of undetermined origin) used for the production of such good.
2.“Local value content” (hereinafter referred to as LVC)
The applicant for C/O shall choose either direct formula or indirect formula at their own discretion to calculate LVC and apply the chosen formula throughout such financial year. The verification and identification of LVC criteria for exported goods of Vietnam shall be based on the aforesaid formula.
In order to calculate LVC according to the formula, value of materials and cost incurred in the production process of goods shall be determined as follows:
a) “Value of materials originating in a country, group of countries, or territory of production” is inclusive of CIF value of materials acquired or locally produced that are originating in a country, group of countries, or territory; direct labor cost, overhead cost, other costs and profits.
b) “Value of materials originating in a country, group of countries, or territory of production” is CIF value of materials imported that are originating in a country, group of countries, or territory; or the earliest ascertained price stated in the VAT invoices associated with materials of unidentifiable origin used for the production, processing of ultimate product.
c) “FOB” is the value stated in the export contract which is calculated as follows: “FOB = Ex-workshop price + other costs”.
-“Ex-workshop price” = Production cost + profit;
-“Production cost” = material cost + direct labor cost + overhead cost;
-“Material cost” covers expenses associated with purchase of materials, their cost of freight and insurance;
-“Direct labor cost” covers wages, bonuses and other welfare amounts related to the production process;
-“Overhead cost” covers: Overhead cost relates to production process (insurance for buildings, factory rents and hire-purchase cost, depreciation of buildings, repairs, taxes, collateral interests); hire-purchase cost and interests of factories and equipment; factory security; insurance (for factories and equipments used in the production process); expenses for essentials for production process (energy, electricity and other essentials to be used directly in the production process); research, development, design and workmanship; pressing molds, moulds, devices and amortization, maintenance and repairs of factories and equipment; patent royalties (in respect of patented machines or use of patented machines in production process or goods production licenses); testing of materials and goods; storage in factories; waste treatment; cost factors in calculating value of materials, such as port-related cost, good clearance and import duties on taxable components;
-“Other costs” are the costs incurred in placing the good in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees, service charges and relevant costs incurred when loading goods onboard ships for export.
If the goods that do not qualify to be issued C/O in Vietnam, it can not be granted C/O. Any violations of laws will be punished by the government.
It appears that many manufacturers are in the process to relocate significant manufacturing process to Vietnam to enjoy “Made-in-Vietnam”.
In the meantime, alarmingly, there are equal number of other manufactures whom wish to only transfer a small portion of manufacturing process to Vietnam i.e re-packaging, re-labeling which does not meed to qualifications above.
It is important that Vietnam authorities to alert and constantly monitor the C/O application process to ensure all responsible departments, officers to follow the rule as set by law to evaluate the C/O application documents, and proof given by trader, manufacturer carefully.
By doing that, Vietnam government will encourage the “real” transition of manufacturing from China to Vietnam, therefore increasing FDI, boosting the economy through encouraging manufacturing sectors.
By urging customs authority to investigate and punish violators, the Vietnam government is sending strong message to US that Vietnam is not standing to support unfair trade, and in the meantime take advantage of the situation to attract quality manufacturing projects into Vietnam. Therefore, more crackdowns are expected.
ANT Lawyers, as a law firm in Vietnam in international trade has been actively providing legal services through advisory to manufacturers on the C/O matters and assisting a number of investor to set up manufacturing company, review leasing contract at industrial zone as part of the process to transition manufacturing into Vietnam to seriously invest and do business taking advantage of origin, labour, opening policy of Vietnam government.
Decree No. 60/2015/ND-CP (Decree 60) amending and supplementing a number of articles of Decree No. 58/2012/ND-CP issued by the Government on May 26th, 2015 has lifted foreign ownership limit of the public enterprises (with conditions) and permitted enterprises operating in all sectors and areas without restriction on foreign ownership to self-set out limits of foreign ownership.
Although the Government has been facilitating foreign investor investing in the Vietnam stock market as well as Vietnam enterprises whom raise capital, the foreign investors still faced a number of challenges. The Decree 60 has taken effect since September 1st, 2015, but most public companies did not lift their foreign ownership limit over 51%. One of the reasons is that, the enterprises with 51% foreign ownership shall meet the statutory conditions and therefore have to follow the investment procedures applicable to foreign investors in accordance with the Law on Investment, Law on Securities and other guiding legislations. Having said that, Vietnam enterprises with over 51% foreign ownership shall be treated as foreign investor. These requirements shall significantly impact on business plans and procedures that an enterprise must comply and restrict them from doing business in some sectors. Accordingly, the daily purchase and sale of shares by foreign investors around the threshold of 51% of the charter capital makes it difficult to determine the legal status of an enterprise.
In order to facilitate the attraction of foreign capital inflows, the Government has been reviewing acceptance of non-voting depositary receipt (NVDR). The promulgation of the Enterprise Law 2020 effective from January 1st, 2021, initially recognized NVDR. Ordinary shares used as underlying assets to issue NVDR are called as underlying ordinary shares. Non-voting depository receipts have interest and obligations proportional to the underlying ordinary shares, excepting for voting rights. NVDR is a negotiable financial instrument issued by a third party which is a subsidiary of the Stock Exchange (Issuing Organization). The Issuing Organization will then hand over to investors all financial benefits attached stocks such as dividends, rights offering. This is a solution from other country that helps foreign investors to invest in public enterprises, even they such enterprises reached limit boundary of foreign ownership. NVDR can be converted into ordinary shares in case the public company has not yet reached foreign ownership limit.
ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
Ho Chi Minh City is considered as Vietnam’s economic hub. During the long history of foundation and development, the city’s economy is growing constantly and motivating the development of the country.
Setting up company in Vietnam
The city is therefore considered as a potential investment environment for domestic investors as well as foreign investors. The investment through establishing companies and conducting business activities in Ho Chi Minh city certainly promises to achieve multiple benefits. These benefits come from the following reasons.
First, Ho Chi Minh City has strategic location advantage in Vietnam. Southeast Asia Region, Ho Chi Minh City is 1,700 km south of Hanoi, 297 km east of Phnom Penh, Cambodia, 881 km east of Bangkok, Thailand.
Food, glass, textiles, paper products, plastics, chemicals, building materials and machinery are produced here. Ho Chi Minh City accounts for 20% of total gross domestic product (GDP), 30% of industrial production and 40% of export products of Vietnam. The city also accounts for 33% of the national budget and 60% of foreign investment flows into the region. In the past few years, the economy have been grown at a rate greater than 10% (6% to 8% nationally).
Second, Ho Chi Minh City is home of well – qualified, abundant and young human resources.
With a population of more than 8 million, accounting for more than 10% of the total Vietnamese population, Ho Chi Minh City itself has potential employment market to make any business investment. The work force in Ho Chi Minh City was estimated to reach 4.7 million people in 2012, making up more than 50% of the total population of the city. The percentage of trained labor increased from 40% in 2005 to 55% in 2010 and was forecast to reach 70% in 2015. The percentage of labor source holding postgraduate degree is also increasing year by year and most of them tend to stay in the city after holding degrees. Ho Chi Minh City is also home to more than 80 universities and colleges, vocational schools with over 400,000 students providing an abundant trained work force.
With the above – mentioned abundant labor force, any companies set up in Ho Chi Minh City can easily recruit suitable employees in a short time..
Third, the city has modern and high infrastructure system. Namely, when setting up company in Vietnam, the owners will benefit from the modern and comprehensive infrastructure system.
Tan Son Nhat Airport is the largest airport in the country with the capacity to accommodate 20 million people a year. From Tan Son Nhat Airport, there are 50 routes to other countries all over the world such as China, Japan, Korea, Singapore, European countries, etc.
Saigon Port serves as a gateway to the Mekong River Delta, the South China Sea (83 km away from the sea) and the Asia continent. The port has a total area of 500,000 m2 with 5 terminals meeting the international standards, and it handles about 8.3 million tons of cargo annually. Throughout the history of foundation and development of Saigon, Saigon Port plays an important role in making Ho Chi Minh City a flourishing trading center. It accounts for a fifth of the nation’s Gross Domestic Product and almost a third of its industrial production.
Ho Chi Minh City is also home to industrial zones. According to the statistics of Cushman & Wakefield, the city has 18 industrial parks that are operating with a total area of 3635 ha. When investing in such industrial zones in Vietnam, enterprises can benefit from various incentive policies such as low rate tax or other incentive policies.
Telecommunication and information technology in the city is modern. The system of post and telecommunication in Ho Chi Minh meets international standard, providing fast, reliable and high quality services such as ADSL, rapid data transfer, wide broadband MAN. The Internet service in Ho Chi Minh city is also among the cheapest in the world.
Besides, the city is also considered the best working conditions. Enterprise will not be fear that it is not enough place for working. The city with the system of offices provide ideal working environment for all investors.
With highly professional staff and great experience in business in Vietnam, ANT Lawyers would like to support you in establish company in Vietnam.
Potential to attract investment when iPhone can be assembled in Vietnam
iPhone is the name of the smartphone line from Apple – a large American technology corporation. The iPhone is a high-end technology product and is used by many people around the world. Currently, Apple assembles the majority of iPhones in factories located in China, and components are manufactured in India, Thailand, the US and many other places. The setting up of iPhone manufacturing facilities in Vietnam will attract other investors to set up company in Vietnam.
Pegatron is one of three iPhone production partners for Apple that is under pressure to expand production outside of China. In addition, China’s application of Covid control measures has pushed the plan to expand production even more strongly. Accordingly, one of the expected locations to be selected is Vietnam.
Although in China the social distancing orders to control Covid-19 have been gradually removed, the labor shortage is still a serious problem. On the other hand, in the peak season, the demand for labor to increase production increases. Therefore, expanding production activities to other regions like Vietnam is a necessary solution to solve the labor shortage.
Besides, there are many different reasons for Pegatron to set up a factory in Vietnam. One of the reasons mentioned is that the stakeholders want to reduce the concentration of production in the current areas and limit the difficulty in recruiting personnel. Meanwhile, Vietnam has young and abundant human resources and production areas are planned and created more favorable conditions for foreign investors.
Moreover, Pegatron previously intended to expand the production line to Vietnam and Pegatron is building a factory in Hai Phong. In addition, many of Apple’s assembly partners also have factories in Vietnam, but no factories have yet assembled iPhones. Therefore, if iPhone is assembled in Vietnam, it will create a strong effect to attract foreign investors to invest in Vietnam and establish company in Vietnam. Accordingly, this will also be a great opportunity for the labor market in Vietnam and promote investment and development.
Currently, the Vietnamese market is gradually becoming an investment target of many large foreign investors. Therefore, besides the government’s open door policies, Vietnamese businesses and workers need to make more efforts to promote their capacity when participating in cooperation and working for large enterprises like Apple.
With highly professional staff and great experience in business, ANT Lawyers – Law firm in Vietnam would like to support you to establish company in Vietnam.
What Decree 53/2022/ND-CP Detailing a Number of Articles of the Law on Cybersecurity 2018 Cover?
Cybersecurity is one of the important issues for every country in the increasingly strong development of the internet. Although this development brings great benefits in many areas of life, it is accompanied by challenges to national security such as cybercriminals that appropriate and steal data of the user; taking advantage of the internet to spread false information against the state. Therefore, the promulgation of policies and laws on cybersecurity as a basis for management and optimal measures in order to protect national cybersecurity, eliminating illegal acts in cyberspace is extremely necessary. On August 15th, 2022, the Government issued Decree 53/2022/ND-CP detailing a number of articles of the Law on Cybersecurity 2018. The Decree will take effect from October 1st, 2022 with the following:
Cybersecurity Lawyers in Vietnam
Measures to protect network security: Request the removal of illegal or false information in cyberspace that infringes upon national security, social order and safety, and legitimate rights and benefits of agencies, organizations, and individuals
Requesting the removal of illegal or false information in cyberspace is one of the cybersecurity protection measures specified in the 2018 Law on Cybersecurity. Accordingly, Decree 53/2022/ND-CP has detailed regulations, listing specific cases where this measure can be applied as follows:
-When information in cyberspace is identified by competent agencies to have contents that infringe upon national security, disseminate information that sabotages the Socialist Republic of Vietnam, incite riots, and disrupt public security and order according to regulations of the law;
-When there are legal bases to determine that information in cyberspace has humiliating and slanderous contents; infringes upon the order of the economic management; fabricates and falsifies information, causing confusion among the people and severe damage to socio-economic activities to the extent that such information must be removed;
-When other information in cyberspace has contents including: Distortion of history, denial of revolutionary achievements, undermining national solidarity, blasphemy, discrimination by gender or race; Prostitution, vice, human trafficking; posting pornographic or criminal information; damaging Vietnam’s good traditions, social ethics or public health; Enticing, persuading or tempting others to commits crimes.
The information listed in the above cases are all illegal and false information, and the person who uses cyberspace to spread the above negative information is an act of violation strictly prohibited under the 2018 Cybersecurity Law. Once the above information is widely spread and publicized online, it will adversely affect the security, social order and safety of the country. Therefore, the regulation to apply the measure to request the deletion of the above information is practical for the above cases. The Director of the Department of CyberSecurity and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam and Directors of competent agencies of the Ministry of Information and Communications are the ones who have the authority to decide on the application of measures to remove these information.
Measures to collect data related to acts of infringing upon national security, social order and safety, and legitimate rights and benefits of agencies, organizations, and individuals in cyberspace
The collection of data (data is information in the form of symbols, letters, numbers, images, sounds or equivalences) related to activities infringing upon national security, social order and safety, legitimate rights and interests of agencies, organizations and individuals in cyberspace shall comply with the provisions of law, and at the same time ensure the following requirements:
-Maintenance of the status of digital devices and data;
-The copying and recording of data shall be done according to correct procedures via recognized devices and software that are verifiable and can protect the integrity of data stored in such devices;
-The process of restoring data or search data shall be recorded via minutes, images, and videos. The process may be repeated if it is necessary for presentation at a court;
-Data collectors shall be specialized officials assigned to collect data.
The principles of copying and restoring data related to acts of infringing upon national security, social order and safety, and legitimate rights and benefits of organizations, organizations, and individuals in cyberspace shall follow: If the data is considered necessary to be copied or restored or there is a request to copy and restore the data for the purpose of proving the commission of a crime, the assigned person shall be authorized to copy and restore such data and acquire a decision on approval of competent authority according to regulations of the law. In addition, to make a record for the copying and recovery activities of the electronic evidence, the case may be invited to an independent third party, witness and certification of this process.
The Director of the Department of Cyber Security and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam shall decide to take this measure.
Internal computer networks have the storage and transmission of state secrets must be completely separated from the network of computers and devices and electronic devices connected to the internet
The decree clearly specifies that state agencies and the political organization at central and local levels must develop regulations on the use, management and security of internal computer networks and computer networks connected to the Internet. agencies or organizations they manage. This is an activity to protect network security in state agencies, central and local political organizations.
Regulations on the use and assurance of computer network security by state agencies and political organizations at central and local levels must include the following basic contents: Identify major information and information network systems to be prioritized for cybersecurity assurance. Elaborate on prohibitions and principles of management and use and ensure cybersecurity and internal computer networks that store or transmit state confidentiality shall have a complete physical separation from computer networks, devices, and electronic means with Internet connection, other cases shall ensure compliance with regulations of laws on state confidentiality protection. Have procedures for professional and technical management in operating, using, and ensuring cybersecurity of data and technical infrastructure. Such procedures shall satisfy basic requirements for information system safety assurance. Ensure the personnel conditions for network management and operation and security of cyber information security, information safety and handling of violations of regulations on assurance of network security.
Thus, to ensure confidentiality of the internal data of the state agency, the internal computer network shall have the state secrets which are required to separate completely from the computer network or the equipment and electronic devices connected to the internet. This is the regulation for managing agencies to control, minimize the risk of internal data that is spread out into the electronic environment, causing serious impact on national security issues.
Will data must be stored in Vietnam ?
The decree has stipulated a separate chapter to clarify the storage of data and set the branch or representative office of foreign enterprises in Vietnam.
The following data must be stored in Vietnam:
-Data on personal information of service users in Vietnam;
-Data created by service users in Vietnam: account names, service use time, information on credit cards, emails, IP addresses of the last login or logout session, and registered phone numbers in association with accounts or data;
-Data on relationships of service users in Vietnam: friends and groups such users have connected or interacted with.
Domestic enterprises and foreign enterprises are the subjects that must store the above data. In particular, it only applies to foreign enterprises doing business in Vietnam in one of the following fields:
-Provision of national or international domain names for service users in Vietnam;
-E-commerce; Online payment in Vietnam;
-Payment intermediaries; Services of connection and transportation in cyberspace in Vietnam;
-Social media and social communication in Vietnam;
-Online video games in Vietnam;
Services of provision, management, or operation other information in cyberspace in forms of messages, calls, video calls, emails, online chatting in Vietnam.
However, not at all foreign enterprises is required to store data according to regulations. Decree 53/2022/ND-CP also sets conditions for the storage of data in Vietnam, specifically as follows: services provided by such foreign enterprises are used for violations of laws on cybersecurity, notified and requested for cooperation, prevention, investigation, and handling in writing by the Department of Cyber Security and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam but they fail to comply or incompletely comply with such documents or prevent, obstruct, disable, or nullify the effect of cybersecurity protection measures performed by cybersecurity protection forces;
In case of an exception to the conditions for force majeure circumstances, the foreign enterprise cannot comply with the requirements of the law on cyber security, the foreign enterprise shall notify the Cybersecurity Department and high-tech crime prevention and control under the Ministry of Public Security within 03 working days for inspection of the verification of such force majeure. In this case, the enterprise will have 30 days to adopt remedial methods.
For the form of data storage, Decree 53/2022/ND-CP does not provide any specific requirements, but allows businesses to decide for themselves how to store their data in Vietnam, whether domestic or foreign enterprises.
For the time duration for data storage: for domestic enterprises, it automatically stores data; for foreign enterprises starting when the enterprise receives the request to store data from the Minister of Public Security until the end of the request; Minimum storage period is 24 months.
The Decree stipulates more specifically and strictly on the order and procedures for applying measures to ensure network security as well as the rights and obligations of state agencies in data security, building a network security system management system to ensure internal network security at the agency. Companies operating in the internet business should take into consideration of the new regulations and ensure compliance. It is important to engage cybersecurity lawyers in Vietnam for legal advice and update.
Many “American eagles” expressed their desire to invest and expand into Vietnam
After the Covid-19 pandemic with unremitting efforts, Vietnam has affirmed its capacity in all aspects with other countries, especially the capability to fight against Covid and quick return focus to business. Therefore, Vietnam is becoming an attractive investment destination for global investors including American companies. With the stable political situation, young and abundant human resources and commitment to investment facilitation from the Vietnam Government, it has become a great motivation for American investors to choose Vietnam as a safe and effective investment destination to expand business and set up company in Vietnam.
On the occasion of Vietnam Prime Minister Pham Minh Chinh’s business trip to attend the Special Summit to celebrate the 45th anniversary of ASEAN- America relations, many big American enterprises such as Intel, Apple and Google have shared their desire to expand the supply chain, cooperate in technology and move production to Vietnam by coordinating with Vietnamese enterprises that have suitable capability to participate. This is also considered a great opportunity for Vietnam to interact with the world’s leading advanced economy to improve its labor capacity and is a potential market for workers to learn and demonstrate their abilities.
Specifically, Apple wants the Vietnamese Government to continue to have preferential policies to encourage high-tech American enterprises to develop business and invest in Vietnam. On the other hand, Apple also affirmed that it will actively consider the Prime Minister’s proposal on increasing the number of domestic suppliers and raising the rate of using domestic services and goods higher in Apple products in the near future.
In addition, Intel also showed its interest in the Vietnamese market by emphasizing the very important role of Vietnam and Vietnamese factories in Intel’s production chain. Moreover, Intel also highly appreciates Vietnam’s infrastructure and human resources as potential conditions for technology enterprises to continue to expand their operations. Especially in today’s volatile world, Intel’s expansion of investment in Vietnam is a strategic solution.
Currently, Microsoft is working with Vietnam’s Ministry of Information and Communications to deploy digital skills programs both private and public sector, and data science development in Vietnam. Accordingly, technology will help enhance transparency and trust, prevent and fight corruption. Vietnam has a young population, a dynamic country, ready to receive new technologies Microsoft wishes to strengthen cooperation with Vietnam in the fields of digital transformation, ensuring network security, helping Vietnam achieve the goal of reducing emissions to zero by 2050 and contribute to helping Vietnam build a green economy, digital economy, and sustainable development.
In addition, in order to attract foreign investment, the Prime Minister emphasized that the “sincerity, trust and responsibility” stance, “harmonious benefits, shared risks” between big American and Vietnamese enterprises will help the relationship between the parties is stable and good. In addition, to implement the commitments it has joined, Vietnam is continuing to build and perfect institutions suitable to Vietnam’s conditions and circumstances. Moreover, the development of strategic infrastructure such as digital transformation infrastructure, transport infrastructure, energy infrastructure, healthcare infrastructure… will also be the focus of completion to attract foreign investors to establish company inVietnam.
Besides, Vietnam continues to improve the open and stable business environment, and effectively handle administrative procedures. In particular, digital transformation will help reduce direct transactions, fight negativity, trouble, corruption, save time and costs for people and businesses. Therefore, Vietnamese businesses need to innovate in both capacity and organization to capture this opportunity well.
With highly professional staff and great experience in business in Vietnam, ANT Lawyers – Law firm in Vietnam would like to support you to establish company in Vietnam.
Conditions of Setting up Import and Export Company 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 exercise 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 business 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.
Where is least expensive cities for working and living in Vietnam?
The price indexes has always been on top of information list which investors look for when making investment into a new country. Beside various information i.e. GDP, Stock market, unemployment, producer price, interest rate, balance of trade, the investors also check the consumer price index and income to determine the attractiveness of market entry. There are many attractiveness factors including the low cost of living and low level of income in comparable with other neighboring countries, for making investment in setting up company in Vietnam for manufacturing purpose.
Where in Vietnam is cheapest city to live and work?
According to statistics of 2021, taking Hanoi as the base indicator, the top 10 localities with the most expensive cost of living include: Hanoi (100%), Quang Ninh (99.5%), Ho Chi Minh City (98.98%), Da Nang (96.4%), Hai Phong (95.58%), Lao Cai (94.75%), Son La (94.58%), Lang Son (94.55%) %), Khanh Hoa (94.55%) and Dien Bien (94.41%).
How it has changed since 2015?
The top 10 provinces and cities with the most expensive cost of living in the country in 2015 include: Lai Chau (100.3%), Hanoi (100%), Son La (99.27%), Lao Cai (99.02%), Dien Bien (98.85%), Ho Chi Minh City City (97.39%), Ha Tinh (97.14%), Ha Giang (96.5%), Da Nang (96.44%) and Binh Phuoc (96.12%).
In 2021, Hanoi’s per capita income reaches more than 6 million VND/month. Since 2016, Hanoi has always been in the top 3 localities with the highest income in the country.
In 2015, Da Nang ranked 9/63 with a price equal to 96.44% compared to Hanoi. By 2017, the city “jumped” to third place, up 6 places compared to 2015. In 2021, Da Nang’s cost of living is 96.4% of that of Hanoi and ranked 4th in the country in terms of expensiveness. In 2021, Da Nang has per capita income of more than 5.2 million VND/month, ranking 5th out of 63 provinces and cities. Previously, 2019 was the year the city had the highest income in the past 10 years with more than 6 million VND/person/month.
In 2021, Ho Chi Minh City reached 98.98% and ranked 3rd out of 63 provinces and cities in cost of living. From 2002 to 2016, the city has always been the place with the highest income in the country. From 2018 to present, Ho Chi Minh City maintains the “runner-up” position (behind Binh Duong), in which, 2019 is the year with the highest income with 6.7 million VND/person/month.
Besides the three central cities that are constantly in the top of the most expensive localities in the country, Lao Cai is the only mountainous province.
In 2020, Lao Cai ranked 5th in terms of the expensive level in consumption, equal to 96.52% compared to Hanoi. Lao Cai is the most expensive province among 14 Northern Midlands and Mountainous Provinces (the cheapest is Phu Tho, equal to 91.07% compared to Hanoi, ranked 56th nationwide). By 2021, Lao Cai’s index drop to 94.75%, the lowest level of the place since 2015 until now. With this index, Lao Cai ranks 6th in the country in terms of the expensiveness of the cost of living.
In particular, although the cost of living is quite high, the income of people in Lao Cai is not high. The average income of people in this locality was only 1.8 million VND/person/month in 2016 and ranked 53rd in the country. In 2021, people in Lao Cai earn an average of 2.51 million VND, ranking 55th in the country.
The low level of income and least living cost make Vietnam a favourable destination for investment. Many labour intensive manufacturers in garment, shoes, furniture… have long chosen Vietnam as a place for establishing company in manufacturing. There are growing number of companies in electronics also manufacture in Vietnam to take advantage of the comparable low wage workforce.
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Da Nang City to carry out investment promotion in 2022 in the direction of innovation, initiative, focus, and prioritize on strategic markets
In 2022, Da Nang selected the theme as “Year of safe and flexible adaptation, effective disease control and socio-economic recovery and development”. Accordingly, the city has built the Investment Promotion Program in 2022 in the direction of innovation, initiative, focus, prioritizing strategic markets for key fields (high technology, information technology, high-quality service, etc.) to attract foreign investors to invest and set up company in Vietnam in genenal and Da Nang in particular.
To achieve this goal, Da Nang city has promoted research, assessed potential markets and investment partners, built images, promoted, introduced the investment environment, potential policies, and opportunities for investment association and connection. Along with that, the city has supported and guided to create favorable conditions for investment activities of international investors, built a list of investment attraction projects, publications and documents for investment promotion, etc. in order to attract foreign investors to establish company in Vietnam for doing business.
Accordingly, in 2022, Da Nang will study and implement the project “Building Da Nang into a regional financial center”; Project “Development of industry and services related to yachts”; Project “Promoting investment attraction to Da Nang city in the period of 2021 – 2025, vision to 2030”; The overall project of economic diplomacy in Da Nang city in the period of 2021 – 2025; Project on implementation of research – development, incubation – start-up, innovation and training of high-quality human resources… At the same time, Da Nang City implement investment procedures and call for businesses to invest in key projects. Access and connect with venture capital funds, start-up experts, large-scale technology enterprises, innovative start-up infrastructure investors, innovative start-ups. The City is focusing on promoting key investment projects, promoting projects in high-tech zones, concentrated IT zones, etc.
Besides, Da Nang City is organizing investment promotion conferences in the form of face-to-face and online to key markets such as the US, Korea, Japan, Europe, Taiwan, Singapore…; organize connection activities, promote private investment, event Route Asia Development Forum 2022 is held in Da Nang city.
The city will also increase proactive contact with high-level contacts with large corporations (belonging to Forbes 500), businesses in developed countries (G7, G8, OECD…), business associations, and big banks of other countries. The country is having the policy to shift investment capital to focus on calling for investment in Da Nang. Da Nang city is implementing the promotion of ODA projects, projects in the form of public-private partnership (PPP) …
In Da Nang Hi-Tech Park and Industrial Parks, in order to effectively implement the 2022 Investment Promotion Program of the City People’s Committee, the Management Board of Da Nang High-Tech Park and Industrial Parks has built and issued implementing investment promotion programs in the direction of innovation, prioritizing strategic markets for key fields such as high technology, information technology, high-quality services….
Through these activities, Da Nang City hopes that in 2022, many international investors will make investments in Da Nang to set up business, in order to create a vibrant and effective investment environment, taking advantage of the strengths, investment incentives from the city, thereby bringing high profits for their investment activities.
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The improvement in infrastructure system along with the preferential policies have stimulated investors to come to set up business in Phu Quoc and do company.
Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia. Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.
Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.
Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.
The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.
Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.
Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.
The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.
ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Vietnam. We assist clients needing legal service in obtaining investment certificate, business registration certificate, or other licensing procedures.
Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.
Currently, Limited Liability Company (“LTD”) and Joint Stock Company (“JSC”) are two popular enterprise forms operating in Vietnam.
What is the difference between these two forms of companies?
I. Organizational Structure
Number of members/shareholders:
LTD
-Single member LTD: Having only one member (member can be an organization or an individual);
-Multi members LTD: Having at least 2 members and not exceed 50 members (member can be an organization or an individual).
JSC
Joint Stock Company has at least 3 shareholders and not limit the maximum number.
Management structure
LTD
-Single member LTD
Single member LTD owner by an organization shall be organized under two models: Company president, Director/General director and Supervisor; (OR) Members Council, Director/General director and Supervisor.
Single member LTD owner by an individual shall be organized as follows: Company president, Director/General director.
-Multi members LTD
Multi members shall be organized by: LTD Council members, Chairman of the Members Council and Director/General director;
Multi members LTD having 11 members or more shall establish the Board of Supervisors.
JSC
JSC can be organized under two models: General Meeting of Shareholders, Board of Directors, Board of Supervisors and Director/General director; (OR) General Meeting of Shareholders, Board of Directors (Board of Internal Supervisors under Board of Directors) and Director/General director.
II. Capital Contribution
Raising capital
LTD
-Single member LTD: Owner increases charter capital
-Multi members LTD: Members increase their charter capital, or increasing the number of capital contributors
JSC
Different from LTD, JSC can raise its capital by various methods as follows: Selling shares to existing shareholders; Selling shares individually to non-shareholders; Issuing shares on the stock market.
Transfer of contributed capital
LTD
-Single member LTD: Owner transfers a part of contributed capital to other persons and this could lead to changes of the type of business or other procedures if all capital is transferred (for instance in a M&A deal).
-Multi members LTD: Offer the stakes to other members in proportion to their stakes in the company under the same conditions; The stakes could only be transferred to other persons if the members do not buy or do not buy completely within 30 days from the offering date.
JSC
The shareholders of JSC are free for transfer their contributed capital after 03 years from the establishment.
Having said that, LTD is a type of enterprise that the capital contribution is not the only link between the members of the company but they are also linked together by relationship. They may be acquaintances and trust each other to jointly contribute capital to establish an enterprise. Therefore, the management of the LTD is as complicated as JSC. With the larger the number of shareholders, the level of capital mobilization, voting power to decide on issues of the company based on the ratio of capital contribution of each shareholder, the management and operation of the JSC is more complex.
The ability to raise capital of a JSC is higher than a LTD. Because, JSC can issue shares to the public in the form of securities. When the stocks are listed on stock exchange, the information of company’s business operations must be public and more transparent.
The procedure to set up a company in form of an LTD or a JSC has not much differences.
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On June 15th, 2020, at the National Assembly’s socio-economic discussion session, the Ministry of Industry and Trade clarified a number of issues related to the implementation of power projects and energy security in Vietnam amid the the situation of energy supply, especially electricity supply is facing many difficulties when hydroelectric and thermal power reserves are almost fully exploited and the risk of energy import is increasing.
Vietnam has the advantage of being an equatorial country, with high annual sunshine hours (average from 1800-2600 hours/year) which is an advantage to develop solar energy. Vietnam has a long coastline (3260 km) and favorable terrain, the construction of wind power stations is a solution that can help improve Vietnam’s electricity output in the next years.
As reported by the Ministry of Industry and Trade, for solar power, the total planned capacity of about 10,300 MW has been operated on 90 solar power projects with a total capacity of about 5,000 MW. For wind power, as proposed by the Ministry of Industry and Trade, the Prime Minister has agreed to supplement the planning of an additional 7,000 MW of wind power, raising the total scale of wind power capacity planned to 11,630 MW.
In addition, according to Vietnam’s commitment at COP21, Vietnam will reduce the greenhouse gas emissions by 8% by 2030. And with effective support from the international community, Vietnam can cut its emissions by 25% greenhouse gas emissions by 2030. And the Clean energy technology is one of the best solutions to fulfill this commitment.
In addition, the installation, operation and maintenance of wind and solar power systems are relatively simple, at low cost therefore will save time and cost for investors. Besides, clean energy does not cause impacts on large-scale migration environment, such as deforestation, emissions of dust, water and ash, etc. In contrast, it also creates beautiful and majestic landscapes, and attractive to visitors, this is in line with Vietnam’s sustainable development goals in the future.
With economic and environmental advantages, the scientists forecast that, in the world to 2040 and 2050, the percentage of solar power capacity in total generating capacity will be 45% and 50 %; The structure of electricity production by 2050 is as follows: Number 1 is solar power: 35.8%; followed by onshore wind power: 24.3%; Offshore wind power: 12.1%; Hydroelectricity: 12.4% and the rest are other sources of renewable energy and fossils and nuclear: 15.4%.
In order to ensure the implementation of the overall plan for the coming time, the Ministry of Industry and Trade is focusing on speeding up the construction of the electricity Planning No. VIII to submit to the Government in the fourth quarter of 2020. In particular, following the contents of the Resolution No. 55-NQ/TW of the Politburo on “Vietnam’s national energy development strategy orientation to 2030, vision to 2045” on February 11th, 2020, according to which ratio of sources of renewable energy in the total primary energy supply will reach about 15-20% by 2030; 25-30% by 2045.
According to Resolution No. 55-NQ/TW, Vietnam will develop breakthrough mechanisms and policies to encourage and promote the renewable energy sources in order to replace fossil energy sources at maximum. Prioritizing the use of wind and solar energy for electricity generation; encourage investment in building power plants using urban waste, biomass and solid waste in parallel with environmental protection and economic development of the circulation. To establish and develop a number of renewable energy centers in advantageous regions and localities. Then researching and assessing the overall potential and developing development orientations for geothermal energy, ocean waves, tides and ocean currents; deploy a number of application models, conduct pilot tests to evaluate the effectiveness. To undertake technological research, formulate a number of production pilot projects and encourage the use of hydrogen energy in line with the general trend of the world. In addition, the Resolution prioritizes the development of renewable energy in line with the ability to ensure system safety with reasonable electricity costs and encourage the development of rooftop and surface solar power. To develop groundbreaking support policies and mechanisms for offshore wind power development in association with the implementation of the Vietnam’s Sea Strategy.
With advantages and priority policies for renewable energy development as above, Vietnam hopes that more international investors will invest and set up company in Viet Nam in renewable energy.
In 2021, due to the spread of the Covid-19 epidemic in the world, the economic situation has been seriously affected. This greatly affects the investment performance of investors making investment in Vietnam. However, Vietnam government still implements many policies to attract forein investors to set up company, make investment, in order to realize the “dual goal” of fighting the epidemic and developing socio-economic and achieving economic growth to get the high results.
According to statistics of the Ministry of Planning and Investment, as of October 20th, 2021, the total newly registered capital, adjusted and contributed capital to buy shares, and buy capital contributions from foreign investors reached USD 23.74 billion, which is accounted for 1.1% more than the same period in 2020. Realized capital of foreign investment projects is estimated at USD 15.15 billion, accounted for 4.1% over the same period in 2020.
Accumulated to October 20th, 2021, the Vietnam has attracted 34,266 projects with a total registered capital of over USD 404 billion. The accumulated realized capital of foreign investment projects is estimated at over USD 247 billion, equal to 61.1% of the total valid registered investment capital.
Foreign investors have invested in 18 industries out of a total of 21 national economic sectors. In which, the processing and manufacturing industry leads the way with total investment capital of USD 12.74 billion, accounting for 53.7% of total registered investment capital. Next is the electricity production and distribution industry ranked second with a total investment of USD 5.54 billion, accounting for 23.3% of the total registered investment capital. Followed by real estate, wholesale and retail businesses with a total registered capital of USD 2.12 billion and over USD 803 million respectively.
In terms of the number of new projects, the processing and manufacturing industry, the wholesale and retail trade, and professional and scientific and technological activities are the industries that attract the most projects, accounting for 33.1% and 27.8% respectively, and 16% of total projects.
There are 97 countries and territories have the investors invested in Vietnam in the 10 months of 2021. In which, Singapore leads with a total investment of USD 6.77 billion, accounting for 28.5% of total investment capital in Vietnam. Korea ranks second with USD 4.15 billion, accounting for 17.5% of total investment capital. Japan comes third with a total registered investment capital of nearly USD 3.4 billion, accounting for 14.3% of total investment capital. Investment amount is followed by China, Hong Kong, Taiwan,…
Foreign investors have invested in 58 provinces and cities in Vietnam in 10 months of 2021. Long An province leads the way with a total registered investment capital of USD 3.68 billion, accounting for 15.5% of total registered investment capital, including a large power project of up to USD 3.1 billion (accounting for 84.2% of total registered investment capital of Long An province). Ho Chi Minh City comes to second place with over USD 2.73 billion, accounting for 11.5% of total investment capital. Hai Phong city ranks third with a total registered capital of USD 2.72 billion, accounting for nearly 11.5% of total investment capital. Next are Binh Duong, Can Tho, Quang Ninh,…
In terms of the number of projects, foreign investors still focus a lot on investing in big cities with convenient infrastructure such as Ho Chi Minh City, Hanoi, Bac Ninh. In which, Ho Chi Minh City leads in number of new projects (34.1%), number of adjusted projects (17.7%) and capital contribution and purchase of contributed capital (59.4%).
In addition, Vietnam has implemented the selective investment attraction policies (reducing quantity, increasing quality) to eliminate small-scale projects with little added value. This also partly affects the number of projects of small investors planning to invest in Vietnam.
To ensure safety in the prevention and control of the Covid-19 epidemic, Vietnam has applied a policy of restricting entry and implementing long-term isolation, which affects the progress of surveys and implement the procedures of experts and project development groups.
Due to the impact of the epidemic, Vietnam has implemented a factory blockade and restricted the movement of workers in industrial zones, slowing production, reducing capacity and output, and disrupting the supply chain. This affects the psychology of new investors who are planning to invest in Vietnam.
In 2021, many factors affect the investment performance of international investors to Vietnam. However, with many policies to support and attract investment, Vietnam still becomes an investment destination for many big investors in the world. In late 2021 and early 2022, with many policies to attract FDI to revive the economy after the epidemic, Vietnam hopes that international investors can seize the opportunity to make investment, establish company in Vietnam, in order to bring the best economic benefits for their business.
Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.
What Are the Procedures for Applying the Enterprise Registration Certificate for Foreign Investor in Vietnam?
According to Viet Nam’s commitments under the framework of the WTO and EVFTA agreement, foreign investors are allowed to establish foreign-invested enterprises to conduct business activities in Vietnam. However, the order and procedures for establishing enterprises for foreign investors must comply with the provisions of Vietnamese law.
For investment registration, foreign investors must have an investment project, except in the case of establishing a creative start-up small and medium-sized enterprise and an innovative start-up investment fund under the law on business support small and medium. The industries and trades in the investment project must not be in the industries and trades that prevent the access the market for foreign investors or the industries and trades being banned from doing business under the Law on Investment 2020. After that, investors need to prepare a dossier for issuance of the Investment Registration Certificate to be submitted to the Department of Planning and Investment where the investor implements the investment project.
Dossier for applying for the investment registration certificate includes: an application for issuance of the investment certificate; the Investor’s financial capacity report is prepared and responsible by the Investor; an explanation of the ability to meet the conditions that the investment project must satisfy according to the provisions of law for the project in the field of conditional investment; the economic – technical explanation includes the following main contents: objectives, scale, investment location, investment capital, project implementation progress, land use demand, technological solutions and solutions environmental legislation; draft of the company’s charter with full signatures of the legal representative, members or authorized representatives; members list; documents for verifying the investor’s legal status; documents for verifying financial ability. The investment registration authority repond to the application for the Investment Registration Certificate to the investor within 15 days from the date of receipt of a valid dossier.
After being granted the Investment Registration Certificate, the foreign investor shall carry out the procedures to be granted the Enterprise Registration Certificate. In this step, the legal conditions are not as strict and complicated as the first step, but it also requires investors to prepare a number of papers and documents. Depending on the type of enterprise and the content of registration, the business registration subject needs to submit different types of documents under the requirements of the law. Investors can submit the dossier in person at the Business Registration Office or submit it online via the electronic network. The Business Registration Office shall issue the Enterprise Registration Certificate within 03 working days from the date of receipt of a valid dossier. In case the dossier is invalid or the name of the enterprise requested for registration is not in accordance with regulations, the Business Registration Office must notify in writing the contents that need to be amended, supplemented to the enterprise founder or the enterprise within 03 working days from the date of receipt of the dossier.
It can be remarked that the two-step process creates obstacles for many foreign investors when establishing an enterprise in Vietnam. It has been suggested the legislator to consider shortening the order and reducing the number of documents that need to be submitted, and at the same time, promote the online procedures to save time and human resources. For efficiency in preparing documents, the client could engage a law firm in Vietnam to assist carrying out procedures of setting up company and applying for investment and business registration certificate in Vietnam.
Vietnam is an attractive destination for startups
According to Bloomberg, Vietnam is an attractive destination for startups in 2023
The international press reported that Vietnam's economy has been struggling domestically and internationally in 2023. However, there are still encouraging signs regarding the economy's potential for growth. In the meantime, Vietnam is also focusing on long-term economic growth to encourage startups to start businesses, invest, and do business in Vietnam.
As the boom period of reopening following COVID-19 comes to an end in 2023, the economy is returning to a long-term growth trajectory. Vietnam wants to spend 7% of GDP on infrastructure this year to support economic growth and ensure that FDI will continue to flow into the country for years to come.
In the future, Vietnam's economy is being strengthened by foreign direct investment. Vietnam is an ideal location for tourists and foreign investors to set up company in Vietnam due to its favorable business climate, stable political environment, sustainable macroeconomic development, abundant labor force, and low cost.
According to experts, the situation is very bad all over the world, but Vietnam has been recovering and getting back on track with its development. There will still be obstacles, such as the possibility of a recession and global protectionism, which reduces export demand. However, there will still be many advantages, and foreign investment, investment in human resources, and infrastructure, will drive growth in a variety of ways. In addition, the recovery of consumer and business confidence is expanding rapidly. Domestic demand has returned to normal.
According to Bloomberg, Vietnam is a desirable location for startups due to its abundance of skilled engineers, low labor costs, and rapidly expanding economy. By 2030, Vietnam wants to make Ho Chi Minh City a "magnet" for technology investments and a digital economy.
Vietnam is now a major hub for manufacturing and a crucial link in the global supply chain. As a result, increasing automation is crucial for economies and businesses. One of the primary drivers is the rapid improvement in labor productivity and digitization of the value chain. Vietnam's economy has great potential for rapid growth and digital transformation across all sectors.
Concerning the factors that ensure Vietnam's growth, there is a consensus. These elements incorporate speeding up primary and institutional changes, profoundly taking part in new-age economic alliances, improving unfamiliar speculation fascination, speeding up computerized financial change, and profound mixing into the worldwide store network.
Signing Deposit Contract in Sales and Purchase of Property
Because of the significant potential profits it could bring from the real estate transaction business, investing in real estate in Vietnam attracts a lot of attention from individuals and organizations. How real estate dispute lawyers in Vietnam could help and make the transaction more secured?
High profits often come with high risks
However, there is a saying that never goes wrong: Many investors would need to be aware that high profits frequently come with high risks. When it comes to real estate transactions, investors and buyers have lost a lot of money and lost valuable time as a result of long-term disputes and a lack of comprehension of the law's provisions and legal issues. Negligently signing contracts and agreements can increase disputes between buyers and sellers, but this risk can be mitigated with the assistance of dispute lawyers in Vietnam.
Advice from real estate dispute lawyers in Vietnam: sign deposit when buying or selling property
A deposit is a guarantee for the sellers and buyers that the property sales and purchase transaction will be carried out according to the terms of the agreement before buying and selling a house.
In order to guarantee that the official real estate purchase and sale contract will be carried out in a reliable manner in the future, the seller and the buyer will sign a deposit contract at that time. In order to guarantee that the seller will not sell the property to another third party, the buyer (the deposit party) must use this form to make a cash deposit to the seller (the deposit recipient). At the end of the deposit period, the parties will sign a real estate purchase and sale contract.
Matters to concern when signing the contract that need the help from conveyance lawyers in Vietnam
When making a deposit transaction with the seller, it is necessary to take into consideration the following issues in order to minimize risks and maximize buyer interest protection:
Firstly
It is necessary to identify the individual or co-owner of the real estate. In order to avoid the possibility of the deposit contract being void, the owner of the real estate must be a person who has full civil act capacity when conducting transactions.
Secondly
The buyer must check the land's legal papers to make sure it can be transferred legally. These conditions are as follows: i) Possessing the certificate of right to use the land; ( ii) There are no disputes on the land; iii) the land use rights are not restricted in order to enforce a judgment; ( iv) falling under the category of land use.
To check and ensure that the land is fully eligible for the transfer of land use rights, the buyer should specifically request that the seller provide the original or a certified true copy of the certificate of land use rights, ownership of houses, and other assets attached to the land, as well as some pertinent information confirmed by a competent state agency.
In fact, even though the buyer has been given the aforementioned documents to check, there is still a chance that the seller will commit fraud in order to take the buyer's property if they knowingly provide fake documents. These are cases that have criminal characteristics and are frequently the result of organized, fraudulent organizations attempting to acquire substantial property values from a large number of people.
The buyer can determine the amount of the deposit based on the level of risk they are willing to take in the event that information about the land has not been verified by the appropriate authority by reviewing the land's legal documents. Naturally, this amount is subject to negotiation with the seller and must be agreed upon by both parties.
Thirdly
The deposit contract contains a number of specifics that the parties must keep in mind. Terms of the deposit penalty, the parties' rights and responsibilities, and the amount to be paid for notarizing the sales and purchase contract are all agreed upon by the parties.
At the point when the gatherings sign this agreement (in the severe legitimate term, it is an agreement for the exchange of land use privileges, responsibility for, and different resources connected to the land), they should bear expenses recommended by regulation, including legally approbation charge, enrollment expense, individual personal duty, other state charges caused during the time spent moving the name of the declaration of land utilize right, possession own homes and different resources joined to the land.
Consequently, the parties should specify, in accordance with the agreement, which party will bear these fees in the deposit contract. A fee for notarizing this contract will be incurred if the parties agree that the deposit contract must be notarized. Based on the deposit contract's value, this fee is listed in each notary office's notarization fee schedule. The deposit contract also specifies that the term of the deposit must be within a time frame that is appropriate to the actual circumstance. This guarantees that when the deposit period ends, the parties will sign a contract for the sale and purchase of the house.
Fourthly
The deposit contract is written according to the parties' agreement in terms of form. When buying or selling a house in Vietnam, the current law does not require the deposit contract to be notarized and authenticated. However, if the house has a high value, the parties may want to consider notarizing the deposit contract at the notary office where the land is located in accordance with legal requirements to ensure its legality and to avoid future conflicts and dangers.
To ensure efficiency when signing documents related to property transactions, buyers and sellers can seek legal advice from experts and real estate dispute lawyers in Vietnam for specific details.
How to get an apartment in Vietnam?
Vietnam's real estate market, including apartment, has stabilized following the most difficult period. However, it needs to make a lot of changes to the laws in order to meet the 90 million people's demand for housing. Real estate dispute lawyers in Vietnam will update the proposal of an expert in issue of definite ownership apartment.
As in many other nations, such as England, the right to own a home lasts 999 years, but in Vietnam, the government has only given out two types of land: permanent assignment and definite assignment.
When the first method was used, permanent land assignments were made to residential land, and almost all apartments that came with the term "permanent" were bought on the market.
In the second, lands were allotted, and investors continued developing the projects within 50 years. This kind of project existed in some apartment buildings in Ha Noi and Ho Chi Minh City. After that, the investors went through the steps to change the apartment's definite ownership to permanent ownership. Thusly, really, the cost of apartment will decrease if the form of definite ownership is applied.
Regulating the apartment's definite ownership for 50 to 70 years will benefit reconstruction and improvement in the event of depreciation or usage expiration.
It is important to engage reliable law firm in Vietnam specializing in real estate transaction for buying an apartment in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer.
How to get an apartment in Vietnam?
Vietnam's real estate market, including apartment, has stabilized following the most difficult period. However, it needs to make a lot of changes to the laws in order to meet the 90 million people's demand for housing. Real estate dispute lawyers in Vietnam will update the proposal of an expert in issue of definite ownership apartment.
As in many other nations, such as England, the right to own a home lasts 999 years, but in Vietnam, the government has only given out two types of land: permanent assignment and definite assignment.
When the first method was used, permanent land assignments were made to residential land, and almost all apartments that came with the term "permanent" were bought on the market.
In the second, lands were allotted, and investors continued developing the projects within 50 years. This kind of project existed in some apartment buildings in Ha Noi and Ho Chi Minh City. After that, the investors went through the steps to change the apartment's definite ownership to permanent ownership. Thusly, really, the cost of apartment will decrease if the form of definite ownership is applied.
Regulating the apartment's definite ownership for 50 to 70 years will benefit reconstruction and improvement in the event of depreciation or usage expiration.
It is important to engage reliable law firm in Vietnam specializing in real estate transaction for buying an apartment in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer.
How Foreigners Can Easily Own a House in Vietnam?
Because making an overseas property investment is a significant decision, it is recommended that the investors consult with real estate dispute lawyers in Vietnam for assistance in determining the developer's eligibility, construction permits, and other project-related legal documents. To ensure the protection of rights, reduce risks, and ensure compliance, it is essential to review the transaction documents in relation to the deposit agreement, sales agreement, and any other agreements the developer might propose.
On November 25th, 2014, the National Assembly of the Socialist Republic of Vietnam has approved the Housing Act 2014. The fact that a foreigner can buy a house in Vietnam is one of the most notable new changes.
Houses can be owned by foreign organizations and individuals in Vietnam:
-Overseas organizations and individuals putting resources into lodging development under projects in Vietnam as per the arrangements of the Housing Law and related authoritative archives;
-In Vietnam, businesses with foreign investment capital are operating, as are foreign investment funds, foreign bank branches, branch or representative offices of foreign businesses, and foreign investment funds.
-Foreign citizens are allowed to enter Vietnam.
What are forms of ownership housing foreigner in Vietnam?
-investment in the construction of housing in Vietnam as part of the project, in accordance with the Housing Law and related legislation;
-Apartments and single-family homes are included in the investment projects of housing construction. Commercial housing can be purchased, leased, donated, or passed down. (With the exception of housing projects aimed at safeguarding Vietnam's national defense and security, as mandated by the Government of Vietnam).
What are conditions, rights and obligations of foreigner when buy house in Vietnam?
For people or associations putting resources into lodging development under a project in Vietnam while seeking to possess houses in Vietnam they should fulfill the accompanying circumstances:
-Have an investment certificate
- Have housing developments constructed within the project in accordance with housing law.
When looking to buy a house in Vietnam, foreign businesses with foreign investment capital, branch or representative offices of foreign businesses, foreign investment funds, and foreign bank branches must meet the following conditions:
-Have investment certificates or documents relating with the license to operate in Vietnam gave by the skillful State offices of Vietnam.
Foreign individuals buying a house in Vietnam
-Allowed entry into Vietnam, but do not entitled to diplomatic and consular privileges and immunity.
Foreign businesses with foreign investment capital, branch or representative offices of foreign businesses, foreign investment funds, and foreign bank branches in Vietnam, as well as individual foreign buyers of homes in Vietnam, are eligible to own homes in Vietnam when:
-Rent, buy, donate, inherit, or own no more than 30% of an apartment building's units; Foreigners are not permitted to buy, lease, donate, inherit, or own more than two hundred fifty individual houses, including villas and semi-detached houses, in areas with a population equivalent to that of ward-level administrative;
-In accordance with the terms of the contract of sale, lease, donation, or inheritance, foreign individuals are entitled to own a home for a maximum of 50 years from the date of issuance of the certificate of ownership, which may be extended as required by the government. The certificate must also specify the period of ownership of the property;
-In the case of foreign individuals married to a citizen of Vietnam or hitched to a Vietnam resident got an outside country, they can possess the houses for a long and stable term. Additionally, like Vietnamese citizens, they enjoy owner rights;
Foreign organizations shall have the right to own a house in accordance with the contract of sale, lease, donation, or inheritance, but not longer than the period outlined in the certificate of ownership, which may include an extended period. The time it takes to own a house starts on the date the certificate of ownership is received and is listed on the certificate.
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