How to establish company in Vietnam?

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

 

How to establish company in Vietnam

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

A project dossier for establishing company in Vietnam shall comprise:

-Registration/Request for issuance of Investment Certificate;

-A report on financial capability of the investor;

-Draft of the company’s charter;

-List of members of company;

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

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

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

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

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

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

-Other documents required by Vietnam law.

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

With highly professional staff and great experience in foreign investment, ANT Lawyers would like to support you in establishing company in Vietnam.

ANT Lawyers, as a reliable law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law. 

Source ANTLawyers: https://antlawyers.vn/library/establish-company-in-vietnam.html

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Trademark protection in Vietnam

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 service in Vietnam helps you protect these valuable intellectual assets through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.  

 

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Many “American eagles” expressed their desire to invest and expand into Vietnam

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.

 

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Differences Between Limited Liability Company and Joint Stock Company

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

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

10 questions to ask before setting up company in Vietnam?

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.

ANT Lawyers is a law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City to provide convenient access to our clients. With highly professional staff and great experience in foreign investment, we would like to support you to set up joint stock company in Vietnam.

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Regulations on Pay to Employees Working During Lunar New Year Holiday

Regulations on Pay to Employees Working During Lunar New Year Holiday

Under the provisions of Article 106.1 of the Labor Code 2012, overtime is a period of work outside normal working hours prescribed by law or according to a labor agreement or regulation. Depending on the needs and agreement of the two parties, the enterprise may request employees to work overtime during lunar new year (Tet) holiday, but must not exceed 12 hours in a day and must pay overtime as prescribed by law.

According to Article 25 of Decree No. 05/2015 / ND-CP, the salary for overtime work on lunar new year holiday for employees is prescribed as follows:

An employee who works overtime in the daytime of the lunar new year holiday is entitled to at least 300% of the normal day salary, excluding the salary on that new year holiday if the employee receives wages.

Employees who work overtime at night during lunar new year holiday, apart from enjoying 300% of the normal daily salary, excluding the salary, if the employee receives a daily salary, the employee is also paid at least 30% extra of the average daily wage, and 20% extra of the of the lunar new year holiday pay rate.

In particular, night working hours are calculated from 10:00 pm to 6:00 am of the following day.

For employees who work overtime on the same day as lunar new year holiday, they shall receive overtime pay according to lunar new year holiday; if the lunar new year holiday is the same as a weekly holiday, pay overtime is same as pay for work in weekend.

In addition, when making overtime workers, the enterprise must pay attention to the maximum number of overtime hours a day and must organize compensatory leave for employees as prescribed in Article 106 of the Labor Code and Article 4. Decree 45/2013/ND-CP.

ANT Lawyers – A law firm in Vietnam, always follow up the labour matters to update clients on regular basis

 

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How to Set-up Travel Services Business in Vietnam?

How to Set-up Travel Services Business in Vietnam?

Foreign investor could only set-up joint venture with Vietnam travel agency to set-up travel services business in Vietnam because transport of passenger belongs to investment areas with conditions applied to foreign investor in Vietnam.

10 Questions to Ask Before Setting up Company in Vietnam?

No one could deny that information technology has tremendously changed the way travel services business operates. The use of booking reservation system application on smartphone and internet are widespread that make travel has never been easier.  Foreign investor would be interested to explore the travel services market. However, 100% foreign owned company is not allowed to set-up travel services business in Vietnam. As this investment area is conditional, it is advised that a law firm in Vietnam should be consulted to ensure compliance with local regulations.

The application process and documents requirements are briefly as following:

1. Required documents:

-Application for the International Travel Business License (form);

-Certificate of business registration (copy – certified)

-Business plan for the international travel agency;

-Tour schedule

-Proof of at least 4 years of experience in international travel business operations

-Certified copies of the tourist guides’ cards whereby at least 3 international tourist guides are required

-Confirmation of bank deposit (as per regulations);

-Proof of office premises or legally registered place of business

2. Business License Application Procedure

-Submission of the required documents to the correct authority (Department of Culture, Sports and Tourism of the province/city where the business is headquartered).

-The Department of Tourism of the province/city completes the records of appraisal and submits a written request with the agency’s records to the Ministry of Culture, Sports and Tourism in Vietnam within ten working days from the date of receipt of a valid application. When cases are not eligible for the proposed permit to the state agencies, the provincial tourism department shall cite the specific reasons for refusal. 

-The state management agency of tourism (VNAT – Ministry of Culture, Sports and Tourism) is responsible for reviewing and licensing the international travel business within ten working days from the date of both receipt of the file and written request of the state agency of tourism in the province. In case of refusal, the ministry shall state the specific reasons to the state and provincial tourism authorities

3. Number of records

-Submission to the Department of Culture, Sports and Tourism: 01

-Tourism Authority Filed in: 01

ANT Lawyers, a law firm in Vietnam could offer service to establish company in Vietnam. We assist clients needing legal service in obtaining investment certificate, business registration certificate, or other  licensing procedures.

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English Speaking Law Firm in Vietnam

ANT Lawyers, English speaking law firm in Vietnam City with English speaking lawyers is located in the business center that provides convenient access to our clients.

Law Firm in Vietnam

As a single, fully integrated, global partnership, we pride ourselves on our approachable, collegiate and team-based way of working

ANT Lawyers is a member of International Bar Association, Vietnam Bar Federation, Hanoi Bar Association.

ANT Lawyers is an exclusive Vietnam law firm member of Prae Legal, a global law firm network spanning 5 continents and 150 countries.

ANT Lawyers is a boutique firm specialising in corporate M&A and representing foreign clients and investors across a wide range of domestic and cross-border transactions, including restructuring and joint ventures” IFLR1000 reviews under Financial and Corporate.

We pride ourselves on international recognition by IFLR1000 on Financial and Corporate practice, Legal500, international standard by Prae Legal peer members, local expertise and strong network with Vietnamese authorities and local experts.

Our business strategy is driven by customers’ needs and our focus to provide clients with a high quality legal advice within business context.

Send us request via email at ant@antlawyers.vn or call us at +84 28 730 86 529

Let ANT Lawyers help your business in Vietnam

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The Development of Renewable Energy in Vietnam

The Development of Renewable Energy in Vietnam

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.

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Regulations of Radio and Television Services in Vietnam

What Changes in Decree 71/2022/ND-CP  on Regulations of Radio and Television Services in Vietnam?

Along with the strong development of the Internet is an increase in people’s demand for using television services on the Internet instead of the traditional methods. Television services on the Internet providing domestic and foreign programs, movies, etc. have brought a significant source of revenue for domestic and foreign enterprises providing radio and television services. However, to ensure legal fairness for domestic enterprises as well as foreign enterprises doing business in providing this service to users, on October 1^st, 2022, the Government issued Decree 71/2022/ND-CP amending and supplementing some articles of Decree No. 06/2016/ND-CP dated January 18^th, 2016 on management, provision and use of radio and television services. The promulgated Decree has added new regulations on the management of domestic and foreign enterprises providing radio and television services, or in other words, changes in broadcast law in Vietnam. Specific details should be advised by media and entertainment lawyers in Vietnam however this write-up expects to provide some update on the development of regulations in this area.

As for management policies, the Decree stipulates the management of the provision and use of radio and television services in Vietnam, including radio and television services on the Internet, or across borders to users in the territory of Vietnam. Accordingly, foreign enterprises providing across borders radio and television services in Vietnam must be managed and comply with the provisions of Vietnam law.

For internet radio and television services (OTT TV), enterprises can choose from two service delivery models: (i) OTT TV provides both online channels and on-demand content (VOD) and (ii) OTT TV only provides VOD (OTT TV VOD). For OTT TV VOD service, enterprises are not required to provide program channels like traditional services and only needed to make a declaration according to the form of the Ministry of Information and Communications, instead of having to make a scheme as previously required to apply for a license to provide paid radio and television services. This regulation creates favorable conditions for domestic enterprises with the same technical conditions as foreign enterprises to participate in providing radio and television services on demand on the internet. Foreign enterprises wishing to participate in the market must also carry out the procedures for applying for a license like domestic enterprises.

The next highlight of Decree No. 71/2022/ND-CP is the addition of regulations on editing, classifying and translating radio and television content on demand (VOD). Enterprises are allowed to actively edit and classify VOD content as movies, sports and entertainment programs when meeting the conditions and criteria as prescribed by competent agencies which previously, according to the provisions of Decree No. 06/2016/ND-CP, all VOD content must be edited by a press agency with a radio and television license before being provided on the service. Accordingly, this content is divided into 03 groups to perform as follows:

(i) For news and current affairs programs; programs on politics, national defense, security, economy, and society must be produced and edited by a press agency that has licensed to operate radio and television before being provided on the service;

(ii) For films: Before providing services, enterprises must ensure conditions for the classification of films according to the Government’s regulations and take responsibility to the law for the content and results of film classification according to the classification criteria prescribed by the Vietnam Ministry of Culture, Sports and Tourism; In case enterprises have not yet met conditions for classification of films, it is requesting the Ministry of Culture, Sports and Tourism or an agency authorized by the Ministry of Culture, Sports and Tourism to classify films that have not been granted a Film Classification License or a Broadcast Decision;

(iii) For sports and entertainment programs: Enterprises must edit and classify before providing them on the service and display warnings while providing services, ensuring that they do not commit violations against regulations of Vietnam law. Enterprises shall work on the principles of editing, classifying, and warning content in accordance with regulations of the Ministry of Information and Communications and relevant laws to carry out editing and classification activities.

Regarding regulations on translation management, enterprises are allowed to take the initiative in translation activities. The translation of foreign programs and channels, enterprises must respect and preserve the purity of the Vietnam language, and ensure that they do not violate the prohibitions according to the provisions of Vietnam law.

In addition to supplementing regulations on management policies, Decree 71/2022/ND-CP has added regulations to reduce administrative procedures, and orient online application components to reduce costs for enterprises providing radio and television services. Accordingly, enterprises that wish to apply for a license i.e. a license to provide paid radio and television services, amend or supplement the content of the license, or re-issue the license, only need to prepare set of 01 (a) dossier (previously two sets, 01 sets of originals, 01 sets of copies) and can submit online on the online public service portal of the Ministry of Information and Communications for cases which electronic authentication certification is available. In addition, the processing time for the above procedures and documents are also significantly shortened, creating favorable conditions for enterprises when carrying out administrative procedures quickly, ensuring that the business operations are not affected.

Decree No. 71/2022/ND-CP officially took effect on January 1^st, 2023.

ANT Lawyers, as a reliable law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law.

Tell us how we can be of service and one of our team members will contact you. Email: ant@antlawyers.vn, Tel: +84 28 730 86 529

 

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