Banking market entry into Vietnam

Vietnam’s banking sector has shown significant improvement which results from stable inflation and interested rate

FMCG business consultant in Vietnam

With increasing disposable income, rising living standard, stable GDP and economic growth, young population and low inflation

Real Estate business consultant in Vietnam

Hundreds of millions of dollars are waiting to pour into Vietnam real estate market in most segments.

Oil Gas business consultant in Vietnam

Vietnam oil and gas industry has a great potential as it plays a vital role in Vietnam’s industrial development.

Thứ Năm, 27 tháng 1, 2022

What Has Changed in Vietnam Investment Law 2014? | ANT Lawyers






The new Investment Law 2014 announced by Vietnam Government on December 26th, 2014 has come into effect on July 1st, 2015. The new law introduces changes which include more opening policies for foreign investors to establish and set-up businesses in Vietnam.

What makes foreign investors hesitate to invest and set-up business in Vietnam? The administrative problems and lack of transparency; the inconsistencies in implementing the principle of freedom to do business.

Theoretically, the new Investment Law 2014 will resolve the above mentioned issues by offering a faster amendment mechanism on registering changes or issuing the new Business Registration Certificate or Investment Certificate. Generally, the process and procedures are expected to become more straightforward and convenient for foreign owned companies compared with 2005 Investment Law and the 2005 Enterprise Law by reducing the volume of paper and the administrative works.

In conclusion, the 2014 Investment Law will help clear up some of the confusions that accompanied the 2005 Investment Law and the 2005 Enterprise Law and their application, as well as ease and simplify the foreign investment process which, it is hoped, will promote business activities and investment into Vietnam. The investment of foreign investor into a Vietnamese company in certain situations would be treated in the same manner as a domestic investor that provides an opportunity to offer clients creative structuring solutions to facilitate investment in Vietnam.

Thứ Tư, 26 tháng 1, 2022

Simplifying the Procedure for Foreigner to Reside in Vietnam | ANT Lawyers

 For foreigners wishing to come to Vietnam to work and reside temporarily, they need to either set-up a company in Vietnam or work for others. The owner of the company does not need a work permit but still need to apply for temporary residence card.



However, the foreign employee will need the employer to sponsor the work permit in Vietnam before applying for temporary residence card. A recent draft law on entry, exit and residence of foreigner in Vietnam has been proposed with some changes. The draft regulates many open provisions on entry-exit procedure, temporary and permanent residence conditions for foreigner to reside in Vietnam. ANT Lawyers always follows the new updates about administrative procedures in Vietnam to provide our client with the best service.

The new draft law details conditions for granting the temporary residence card for foreigners working in Vietnam, rising term of this card from 3 year to 5 year. The foreigners’ category expands to scientists and specialists residing in Vietnam for the purpose of attracting international talents, the foreigners who don’t have any type of document proving nationality, and have resided in Vietnam before the year 2000. The foreigners holding temporary residence card must change card per periodically 10 years at the issuing offices. The draft law does not allow the foreigners to change the entry purpose, but allows them to supplement the purpose of belonging persons in some specific cases such as in term of diplomatic representative offices, consulate, international representative office of United Nations and students at universities, colleges, schools.

For more information or requirement of legal services to obtain temporary residence card in Vietnam, we could assist.

Thứ Ba, 25 tháng 1, 2022

Q&A on Cosmetics Regulations in Vietnam | ANT Lawyers

 There have been a number of questions arisen after the Webinar on Cosmetic Regulations in Vietnam on May 27th, 2015 and we would like to address those questions as following:

1. Has Vietnam fully implemented the ASEAN Harmonized Cosmetic Directive (ACD)? Yes. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries
2. Does Vietnam vary from the Regulation in any way(s)? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries
3. Does Vietnam require notification numbers on cosmetic packages?
No. The following contents must be presented on the label:
– The product’s name and function,
– The usage instruction,
– The full formula ingredients:
– The country where the product was made;
– The name and the address of organizations or individuals who are responsible for placing products on market (written fully in Vietnamese according to the business registration certificate or the investment license);
– Weight or volume,
– The manufacture lot number;
– The manufacture day or the expiry must be clearly presented (i.e.: day/month/year). The “expiry” or “the best using before date” can be exerted, if necessary, can add the instructed condition needs obey to make sure of the product’s stability.
– Warning about safety for usage;

4. Prior to exporting cosmetics to Vietnam, do we need to get a license or certificate for importing? If necessary, what are the requirements to obtain it? The party placing the products on the market need to do the product proclamation procedures.
5. As Vietnam is part of the ASEAN, electronic notification is therefore part of the cosmetics’ registration process. Nevertheless, a Free Sale Certificate can be still requested by the Vietnamese authorities. What is the reason of being for such a document? Mutual recognition has no more meaning in this kind of registration process.In the other hand, a Free Sale Certificate is a document provided to a responsible person (the person who place the product on the market), however some Vietnamese officials are expecting a Free Sale Certificate to be issued by the “made in” country’s authorities… what can be impossible in some cases, when the responsible person has no address in that typical country!
For the first problem, the competent agencies have not yet implemented the procedure of electronic notification.
For second problem, as per Chapter 1, Article 2, Clause 19: Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export domestics trader stated in CFS to confirms that the cosmetic is freely produced and sold in the export country. The export domestic trader may be manufacturers or other traders not manufacturer.
This CFS is mandatory.
For the procedure of proclamation, the organization, individual that is responsible for placing imported cosmetic product into Vietnam shall be organization, individual who registered for business in competent agency of Vietnam. They must present CFS to competent agency.

6. Can you tell us if this document is really mandatory and if so what should be its format for products manufactured abroad? Same as above
7. What activities will be taken during the post-market surveillance in Vietnam? By whom? Would they inspect some documents of the product? If yes, what documents?
Authority will be checking and inspecting the compliance of laws on the cosmetic production and the trading:
– The compliance of principles and standards of “cosmetic good manufacturing practice” of the Asian Southeast Association Nations (CGMP-ASEAN) or equivalence which are admitted by the ASEAN Cosmetic Association;
– The label writing;
– The Product Information File (PIF) regulated by the ASEAN;
– The cosmetic advertising.
Authority
– The Cosmetic Quality Checking Central agency is the Drug Administration department – the Ministry of Health;
– The local cosmetic quality-checking agency is the Health department of cities and provinces.
For documents of the product inspected:
As above mentioned, one of inspecting and checking contents is about Product Information File. The Product Information File involves of the following 04 parts:
– Part 1: Administrative documents and a summary of product;
– Part 2: Material quality;
– Part 3: Product quality;
– Part 4: Safety and efficiency.
Part 1 of the Product Information File must immediately be presented when required; others, if inefficiently, must be presented within 15-60 days since the consideration day in regard to the Functional agency’s request.



8. Will there be changes to the regulations in the coming months and what will these regulations be? As Vietnam is developing regulations to implement the ASEAN’s treaty, there could be changes that further align the Vietnam regulations with ASEAN’s regulations.
9. If so, are these strict regulations to discourage importation? There are no law that discourage of importation. The importer just has to follow the regulations at importation.
10. Free Sale Certificates have to be obtained from the country of manufacturer in Vietnamese regulations. The EU defines the ‘manufacturer’ as the Responsible Person who puts the product on to the open market, this means if the Responsible Person company is from the United Kingdom, the Free Sale Certificate should be issued by the United Kingdom’s health body. Why is there such a difference between the two regulations?
Obtaining country of origin FSC can be costly and time consuming; where as a UK Free Sale Certificate is free and quick. According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

11. What are the health bodies Vietnam’s authorities will accept for country of origin Free Sale Certificates in China and Thailand? (we don’t understand the question, please clarify)
Some countries Free Sale Certificates will not allow artwork names to be used, only a production name, can we use a Product Technical File to prove that the product is the same? Vietnam regulations do not have regulations or instructions on artwork names on CFS.
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

12. If a product has an artwork name change, however, the product itself remains the same from when it was first registered (ingredients), can the previous Free Sale Certificate be used to register the product’s name change again? Vietnam regulations do not have regulations or instructions on artwork names on CFS.
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.

13. If a product is manufactured in Vietnam, the business wishing to sell the product in Vietnam buys the product, however due to logistics it has to be exported out to the UK, then sent back to Vietnam to sell, do we need to provide documents such as a Vietnam country of origin Free Sale Certificate? In our opinion, in this case CFS will be issued by country of export: UK. According to Vietnam regulations, CFS is a certified document issued in the export country (not country of manufacturer) to the export trader to confirm the product is allowed to be sold in such country.

14. Could you please precise if the banned/restricted/admitted ingredients in the Official Letter 6577/QLD are the same as the one published in the ASEAN Cosmetic directive? The content of ingredients provided in Official Letter 6577/QLD is based on recently updated regulations of ASEAN Cosmetic Committee.
15. How are hair dyes classified in Vietnam? Hair dyes are classified into hair care products according to Annex No. 01 of Circular 06/2011/TT-BYT
16. How long does it take to receive the registration certificate for cosmetics in Vietnam? Within 03 working days since receiving the regular dossier and fee as provided.
17. What are the specificities for cosmetic product regulation in Vietnam in comparison to ASEAN Cosmetic Directive? No specificities for cosmetic product regulation in Vietnam in comparison to ACD. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.

18. Are there claims allowed in other ASEAN countries that are not allowed in Vietnam? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.
19. Is Free Sale Certificate required? Yes, CFS is required for application of product proclamation in Vietnam.
20. If our company wants to send some samples to customers in Vietnam, do we have to apply for a proclamation or is there an exemption? There are cases which cosmetics sample imported into Vietnam are exempted from proclamation which are categorized under following purposes: research, gift, and display at fair/exhibition. However other procedures might be applicable depending on the specific cases.
21. What about safety data based on alternatives to animal testing? Are they recognised by the Vietnam authorities or do we need to do it the regular way?

22. I wanted to clarify a question and answer that was raised during the Vietnam Cosmetics Regulation webinar. It is in regards to Free Sale Certificates (FSC) and where they should come from.
Currently we are obtaining country of origin FSC for our products where they were manufactured. As an example, if a product was made in Poland, we would obtain a Polish FSC, for our franchise business to register in Vietnam to sell.
During the webinar there was discussion of the FSC coming from the ‘export trader’ or the responsible person. As Marks and Spencer is the responsible person in the United Kingdom, and the products are shipped from the United Kingdom to our franchise business under a different name ‘Central Retail Group’ in Vietnam, would a United Kingdom FSC be accepted by the Vietnamese authorities?

Country of origin FSC from Poland, China and Thailand can be quite expensive and take a long time to obtain, however, a United Kingdom FSC is free of charge and easier to obtain.
According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of authority.

Chủ Nhật, 23 tháng 1, 2022

Foreigner Can Buy House in Vietnam | ANT Lawyers



As investment in properties oversea is a big decision, it is suggested the investor consult with real estate lawyer in Vietnam to help checking the eligibility of the developer, the construction permits and other legal documents granted for the project. It is important to review the transaction documents in regard to deposit agreement, sales agreements and other agreements the developer might propose to ensure the protection of rights, to minimize risks and ensure compliance.

On November 25th, 2014, the National Assembly of the Socialist Republic of Vietnam has approved the Housing Act 2014. One of the most prominent new changes is that a foreigner is entitled to purchase a house in Vietnam.

Foreign objects (organization and foreign individual) can own houses in Vietnam are:
Overseas organizations and individuals investing in housing construction under projects in Vietnam according to the provisions of the Housing Law and related legal documents;
Enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches are operating in Vietnam (hereinafter referred to as foreign organizations);
Foreign citizens are allowed to enter Vietnam.

Form of ownership housing foreigner in Vietnam:
Investment in housing construction under the project in Vietnam according to the provisions of the Housing Law and related legislation;
Purchasing, leasing, donation or inheritance of commercial housing includes apartments and individual houses in the investment projects of housing construction (Except for housing projects in the area of ensuring national defense and security as stipulated by the Government of Vietnam).



Condition, right and obligation of foreigner when buy house in Vietnam:

For individuals or organizations investing in housing construction under a project in Vietnam when seeking to own houses in Vietnam they must satisfy the following conditions:
Have an investment certificate
Have housing projects that are built in the project in accordance with the law on housing

For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam, when seeking to buy a house in Vietnam they must satisfy the following conditions:
Have investment certificates or documents relating to the permit to operate in Vietnam (hereinafter referred to as investment certificate) issued by the competent State agencies of Vietnam.

For foreign individuals buying a house in Vietnam:
Allowed to enter Vietnam and are not entitled to the privileges and immunities of diplomatic and consular as stipulated by law.

For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam and individual foreigners seeking to buy a house in Vietnam, they can own a house in Vietnam when:
Buy, lease, donate, inherit and own, to not exceed 30% of the apartments in an apartment building; if the houses are individual houses including villas, semi-detached houses and located in an area with a population equivalent to ward-level administrative, the allowed units that foreigners are permitted to buy, lease, donate, inherit and own must not exceed two hundred and fifty houses;
For foreign individuals, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit housing but not exceeding a term of 50 years from the date of issuance of the certificate of ownership and it can be extended according to the provisions of the Government if required; the housing ownership period must also be specified in the certificate;
In the case of foreign individuals married to a citizen of Vietnam or married to a Vietnam citizen settled in a foreign country, they can own the houses for a long and stable term. They also have owner’s rights like a Vietnam citizen;
For foreign organizations, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit the house but not exceed the term specified in the certificate of ownership, including the extended time. The housing ownership period is calculated from the date of receipt of the certificate of ownership and specified in the certificate.

Thứ Sáu, 21 tháng 1, 2022

Report the Demand to Use Foreign Workers in Vietnam | ANT Lawyers

 In order to manage the usage of foreign workers in Vietnam, the Vietnam state authority has requested employers to provide explanation for such need to use foreign workers.

This will be the preliminary procedure before applying for work permit in Vietnam then temporary residence card in Vietnam for foreigners.  The report of demand to use of foreign workers has to meet the following requirements:



Demand to use foreign workers: The employer (except contractors) is responsible for determining the demand to use foreign employees for each position that the Vietnamese employee has not met the requirement and submit written explanation. In case the employer is a contractor, in the bidding documents, it is required to declare the number, qualifications, professional competence and experience of foreign workers mobilized to implement bidding packages.

Recipient: Chairman of People’s Committees of provinces and cities under central authority (hereinafter referred to as the provincial People’s Committee) where the employer is headquartered.

Periodic notification period: Every year, the employer (except contractor) is responsible for determining the demand to use foreign employees for explanation.

The period of notice for the first time: Before at least 30 days from the date the employer (except contractor) plans to recruit foreign employees, the employer must report explanations as provided in Paragraph 1 Article 4 of Decree No. 102/2013 / ND-CP on the demand to use foreign workers, including work position, number, qualifications, experience, salary, working hours and submit directly to the Department of Labour – Invalids and Social Affairs of provinces and cities under central authority (hereinafter referred to as the Department of Labor – Invalids and Social Affairs) where the employer is headquartered.

The period of notice the adjustment: The employer whom is approved to use foreign employees, that have changes in the demand for foreign workers, has to directly submit the report explaining the adjustment and supplementation at least 30 days before the expected day for new recruitment, additional recruitment or recruitment to replace foreign workers with the Department of Labour – Invalids and Social Affairs where the employer is headquartered.