How Products could Enjoy Exemption in Trade Remedies? | ANT Lawyers

The scope of the exemption applies primarily to both provisional and formal trade remedies. For goods subject to investigation for application of trade remedies, if falling into one of the following cases, organizations or individuals that import/use such goods will be allowed to submit an application for exemption. The importer or manufacturer could consult with international trade lawyers to present the case to the authority to submit application for exemption if meeting the conditions as regulated by laws.

After the 2017 Law on Foreign Trade Management was promulgated with a more comprehensive and comprehensive system of legal provisions on trade remedies, the Ministry of Industry and Trade issued Circular No. 06/2018/TT-BCT in order to provide specific and detailed regulations in this field, including content of the scope of exemption from application of trade remedies. However, based on Clause 1, Article 9 of this Circular, the Ministry of Industry and Trade has only given four (04) exemptions.

After considering the actual situation, on November 29, 2019, the Ministry of Industry and Trade replaced Circular 06/2018/TT-BCT with Circular No. 37/2019/TT-BCT, which stipulates all six (06) types of goods which are exempted from trade remedies. Specifically, Article 10 of Circular No. 37/2019/TT-BCT allows the Minister of Industry and Trade to consider exemption from application of temporary trade remedies and official trade remedies for a number of goods. Imported goods are subject to trade remedy measures in one of six (06) cases.

First, goods cannot be produced domestically.

With this addition, it is understandable that Vietnamese law, in addition to protecting the domestic manufacturing industry, also considers allowing Vietnam to import important goods that cannot yet be produced on its own, in order to ensure to fully and promptly meet the development needs of all aspects, especially the economy and society of the country. The granting of a trade remedy waiver for goods that cannot be produced in the country may initially be seen as preventing the formation of a domestic industry producing the goods. However, the introduction of a new product into the Vietnamese market is a test for the tastes and needs of customers, through which the importation can assess the development potential and profit of that industry in Vietnam, thereby stimulating the investment and production of domestic manufacturers.

Second, goods have distinctive characteristics from domestically produced goods that cannot be substituted for domestically produced goods.

The exemption from trade remedies for different goods that cannot be substituted by domestically produced goods also ensures the supply of special goods, prevents the scarcity of goods, the supply of goods and the supply of goods that cannot be replaced enough demand in the market.

Third, goods are special products of like products or directly competitive goods produced in the country.

Special products are products with the same physical and chemical characteristics as like products or directly competitive goods are domestically produced but have some characteristics, appearance or product quality that are different from those like products, directly competitive goods produced in the country. Basically, this explanation also causes some confusion with the above-mentioned case of goods with differences that cannot be substituted by domestically produced goods, making it difficult to determine the exemption case. However, only goods that fall into one of the six cases can apply for an exemption, so the applicant only needs to prepare sufficient evidence to prove that the goods they import/use in a case that satisfies the condition for an exemption.

Fourth, like products, directly competitive goods produced in the country are not sold on the domestic market under the same usual conditions.

Normal conditions directly affect the quality, efficiency of use, etc. of the goods. Therefore, the difference in normal conditions has brought special features to goods from abroad that are imported/used into Vietnam, which is the basis for exemption from trade remedies, in order to meet the needs of the domestic market.

Fifth, like products, directly competitive goods produced in the country do not meet the amount of domestic use.

With the priority criteria for the development of the domestic manufacturing industry, acts of importing/using foreign goods that cause damage or threaten to cause damage to the domestic industry will be investigated and applied for defensive measures commerce. However, in cases where the domestic industry cannot meet the demand for like products, the relaxation of trade remedies is essential to ensure supply and market balance.

Sixth, imported goods are included in the total amount requested for exemption from regulations for research and development purposes and other non-commercial purposes.

With this regulation, it can be seen that in the future, the goals of science and technology development, technical level development, research and non-commercial purposes will be increasingly focused and encouraged instead of just economic goals as before. Therefore, it can be understood why state agencies allow the import/use of goods for research, development and other non-commercial purposes, even though they are likely to negatively affect the economy domestic production.

Accurate identification of cases where imported/used goods are exempted from trade remedy measures is extremely important and has great significance for foreign importers and manufacturers. Therefore, before submitting an application for an exemption, it is necessary to base on the above provisions and consult with international trade lawyers in trade remedies to accurately determine the scope of the exemption, in order to avoid wasting time and money.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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Vietnam Can Issue Permanent Residence Card to Foreign Investors in Phu Quoc

 The Ministry of Planning and Investment proposed a series of preferential mechanisms for Phu Quoc special economic zone.

The Ministry of Planning and Investment has just submitted to the Government a draft Law on Special Administrative Units. In this draft, the Ministry proposes a series of mechanisms to attract investment capital and foreign experts to live and work in Phu Quoc special economic zone.

Specifically, according to the draft law, Phu Quoc is prioritized investment to become a center for trade, high-end services and international procurement. This will be the only special zone to be prioritized for the development of fisheries, aquaculture and processing and fishery logistics.

According to the Ministry of Planning and Investment, the potential advantages of Phu Quoc can completely develop into a commercial center, eventhough Phu Quoc is located far from the land and there are only two main lines of transportation that are airway and sea. Phu Quoc also has favorable conditions for hydro-meteorology, natural environment, mountains, forests, marine and ecosystems; moderate weather, favorable for year-round tourism development. Especially, Phu Quoc has a large fishing ground and potential for aquaculture.

In addition, Phu Quoc has fertile farmland, large forest land, occupies 63.2% of the total natural land area, facilitates the development of agricultural economy and sustainable eco-tourism development.

Like other two special economic zones, which are Van Don (Quang Ninh), Van Phong (Khanh Hoa), the Ministry of Planning and Investment proposed a series of incentives for Phu Quoc such as income tax exemption for 5 years, but not exceed 2030 for individuals who have taxable income arising in the special economic zone. In subsequent years, the personal income tax payable will be reduced by 50%.

For managers, scientists and highly qualified experts with income subject to personal income tax in the 3 special economic zones mentioned above, they are also entitled to tax exemption until the end of 2030 and 50% reduction of tax amount in the remaining years.

In addition to the application of general incentives for special economic zones, Phu Quoc has also been proposed to enjoy a separate mechanism, such as raising the level of allowances from 30% to 50% of the basic salary for officials and employees working here.

In particular, in order to encourage investment, the Government of special economic zone will issue permanent residence cards to individual foreign investors with investment projects of 5 million USD or above, with the residence time of 5 years or more in Phu Quoc and not breaking the law.

Regarding infrastructure, according to the Ministry of Planning and Investment, infrastructure of Phu Quoc has been invested quite synchronously to meet the needs of large-scale tourism development. Many high-class and large-scale resorts have come into operation. The Politburo has agreed to open casino project in Phu Quoc for the Vietnamese.

For Van Don special economic zone, according to the Ministry of Planning and Investment, priority will be given to develop island eco-tourism, innovative industries and high-tech agriculture.

Van Phong, in particular with its location, will be promoted to develop deep-water ports, logistics services, medical services, high-quality resort…

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Why Investors Should Set up Business in Phu Quoc? | ANT Lawyers

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 Phu Quoc through its affiliate office. We assist clients needing legal service in obtaining investment certificate, business registration, or other licensing procedures in Phu Quoc, Kien Giang Province, Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Law firm in Hanoi, Law firm in Ho Chi Minh City and Law firm in Danang.

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What Foreign Investors Should Know When Setting up company in Vietnam in 2022?

 In the period of global economic integration, especially Post-Covid-19 era, Vietnam – a developing country is considered one of the countries with potential markets that foreign investors choose to establish the business here taking advantage of the government policy to promote the economy i.e. “new normal” adaption living with Covid-19, quick opening of border allowing tourists to visit Vietnam since Apr 2022, tax reduction, public investment increase…

Whom can set up business in Vietnam?

First, the objects allowed to establish and manage enterprises in Vietnam are all organizations and individuals who are not in the following cases: (i) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons; (ii) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has limited legal capacity or is incapacitated, is not able to control his/her own behaviors, is banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law. At the same time, individuals with foreign nationality implementing business investment activities in Vietnam are considered foreign investors. The implementation of investment forms; the scope of operation as well as related procedures must meet the conditions under the Investment Law; related legal documents; other conditions of international treaties that Vietnam is a member.

How to invest and set up business in Vietnam?

Second, foreigners, foreign investors must explore legal forms of investment in Vietnam including: (i) Investing in establishing economic organizations; (ii) Invest in capital contribution, share purchase and purchase capital; (iii) Implementing investment project; (iv) Investment in the form of BCC contract; (v) Forms of investment and new economic organizations according to the Government’s regulations. They need to consider projects planning to invest in Vietnam in case of requesting approval of investment policy of 2020 Investment Law. The investment project of foreign investors is required to carry out procedures for granting investment registration certificates. If the case must be proposed to approve the investment policy, they must prepare dossiers and carry out procedures to request approval of investment policies. When completing the procedure, they will be granted a written decision on investment policy and investment registration certificates. If not falling in the case of approval of investment policy, foreign investors conduct procedures for applying for investment registration certificates.

What documents required to set up company in Vietnam?

Third, after being granted a certificate of foreign investment registration, foreign investors shall continue the procedures for enterprise registration. Vietnam laws do not have to limit the type of enterprise to foreign investors, hence investors can choose: One member limited liability Company; Two-member limited liability companies or more; Joint stock company; Partnerships. Each type of business has different advantages and disadvantages, and foreign investors should base on the purpose and investment scale to choose the type of suitable form of investment. In addition, the investment under the conditional business lines need to fully meet the conditions according to the provisions of law. Depending on the type of business, there will be the document requirements that need to register accordingly. And most importantly, foreign investors must prepare necessary conditions and sufficient conditions (validated documents for use in Vietnam, business name, head office address, business line, charter capital, legal representative,…) attached to the understanding and implementation of the order and procedures when they want to establish a certain type of enterprise in accordance with the Enterprise Law 2020.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

Set up business in Vietnam, Setting up business in Vietnam, Establish business in Vietnam

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How to Register a Birth for a Child between Vietnamese and Foreigner in 2022?

 Birth registration for children with foreign elements shall be carried out at the competent district-level People’s Committees. Cases of birth with foreign elements based on the Law on Civil Status 2014 include children born abroad who have not yet been registered for birth and reside in Vietnam; if the child is born in Vietnam, one parent is a Vietnamese citizen and the other is a foreigner or stateless person; one parent is a Vietnamese citizen residing in the country and the other is a Vietnamese citizen residing abroad; father and mother are Vietnamese citizens residing abroad; whose parents are foreigners or stateless.

The application for birth registration with foreign elements is prescribed by the Law on Civil Status 2014; Decree 123/2015/ND-CP; Circular 04/2020/TT-BTP. Person who requests birth registration with foreign elements will have to submit documents to the People’s Committee; whom will receive the applications and check the validity of the documents in the applications.

In case the child’s parent chooses a foreign citizenship for the child upon birth registration, besides the written consent to such choosing, a confirmation that such choosing conforms to the foreign country’s law from the competent authority of the foreign country is required. If there is no confirmation from the competent foreign authority, the civil registration authority shall register the child’s birth but leave the nationality section in the birth certificate and birth register blank.

The officer in Civil Status will record the birth registration information in the birth registration book and sign in the book with the person that has the request. The Justice Division shall report to the Chairman of the district-level People’s Committee to issue the birth certificate to the person who requests birth registration. In case one of the parents chooses Vietnamese nationality for their child, the officer doing the Civil Status work will update the birth registration information to obtain the personal identification number.

The birth registration for children with foreign elements should be carried out according to the provisions of the Law on Civil Status and related documents. Vietnamese law always creates favorable conditions for couples to make birth certificates for children with foreign elements.

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