The cooperation between Da Nang and EU strengthen | ANT Consulting

On November 26th, 2020, representatives of Da Nang city meet and work with the delegation of EU countries to work in the city. The year 2020 marks the 30th anniversary of the establishment of Vietnam-EU diplomatic relations, which is also an opportunity for Da Nang to promote cooperation with EU partners in the coming time.

In recent years, Da Nang has established relationships with many countries in the EU. Many cooperation programs and projects on socio-economic development of the city are coordinated with localities of many countries in the fields of environment, education, information technology, and tourism. Besides, the implementation of the EVFTA has helped the countries have more opportunities to cooperate, especially in the fields of investment and trade.     

In addition, Da Nang city also commits to create the most favorable conditions for European investors to invest in Da Nang to set up company in the fields of environment, tourism, high technology, and building smart city.

The head of the delegation of the European Union said that economic activities towards green approaches and areas that focus on attracting investment in Da Nang such as high technology, digital transformation, responding to climate change etc. are also the areas that the European investors are interested in and prioritize towards. This is a great potential and opportunity for cooperation between the countries. With the advantage of European investors is the use of modern technology, digital transformation into production and business, this is completely suitable for Da Nang’s goal of attracting investment in this time.

At the meeting, the representatives of European countries highly appreciated Da Nang’s development efforts in recent years. The implementation of the Memorandum of Understanding with European countries, as well as many policies to attract European investment as well as administrative reform, helps create an open investment environment and create the best conditions for investors to do business, establish company, obtain investment certificate in Da Nang.

In the coming time, with many policies on investment and economic development cooperation between Europe and Da Nang, Da Nang city hopes that have many European investors will choose the city as their investment destination when expanding their investments in Vietnam.

Read More

How Foreign Entity Could Set-up Representative Office in Vietnam

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam according to the Commercial Law.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam. Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Setting up a Representative Office is less complicated than setting up a company in Vietnam. The Vietnam Department of Trade will be approving the establishment of Representative Office in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam. The time duration to establish a Representative Office is shorter than to establish a company. There are fewer conditions to meet than conditions in setting up a company in Vietnam. The main difference between a Representative Office and a company in Vietnam is that the Representative Office could not directly conduct profit making activities.

Rights of the Representative Office:

-To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;

-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;

-To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;

-To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

Obligation of the Representative Office:

-Not to directly conduct profit making activities in Vietnam;

-Not to enter into commercial contracts of the foreign business entity or to amend or supplement such contracts already signed except where the head of the Representative Office has a valid power of attorney from the foreign business entity;

-To pay taxes, fees and charges and to discharge other financial obligations in accordance with the law of Vietnam;

-To report on the operation of the Representative Office in accordance with the law of Vietnam

A foreign company which has effectiveness business activities will be allowed to open the Representative Office in Vietnam if this company has real demand to open the market in Vietnam and meet conditions as below:

-Being a business entity or trader recognized by the law of the country or the territory (hereinafter referred to collectively as the country) where it has been lawfully established or made its business registration;

-Having been operating for at least one year after its lawful establishment or business registration in its country.

The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.

Read More

How Foreign Investors Comply with Reports Submissions in Vietnam

Foreign investors setting up business in Vietnam have to comply with statistics report submissions according to Vietnam laws. To ensure compliance, corporate lawyers should be consulted to ensure compliance with reports applicable to foreign owned enterprises in Vietnam.

As the current regulation, foreign owned enterprises are obliged to submit monthly, quarterly, six month and annual reports to the Vietnam Department of Statistics or State agency for foreign direct investment of respective province or city.

Monthly reports are applicable to businesses and projects operating in the industry: mining, processing industry, electricity, gas, water supply, waste disposal, water treatment, information and communications, real estate, transport, warehousing, trade and services.

Quarterly reports are applicable to businesses and projects operating in agriculture, forestry and fisheries, construction;

All foreign owned enterprises have to report every 6 months on employment and income of the employee;

On annual basis, all foreign owned enterprises have to submit reports on the identification information of the business; financial indicators reflecting business results including revenue by business lines, taxes, fees, expenses, and profit; and capital investments made during the year by investment sources and investment category.

Read More

How Foreigners Could Obtain Residence in Vietnam Through Investment Scheme?

Foreigners could reside in Viet Nam under permanent residence or temporary residence status. In particular, foreign investors establishing or contributing capital to companies operating in Vietnam are subject to have temporary residence cards.

A Temporary Residence Card is the required document for the foreigners to legally stay temporarily in Viet Nam and the maximum term of a card is 05 years. The following will explain how Temporary Residence Cards can be obtained in Vietnam through investment.

What are the conditions for foreign investors to be granted temporary residence cards?

Foreigners who are granted a visa with a DT sign will be considered for a temporary residence card. The foreigners will need to apply for work permit exemption from authorities in Vietnam. The passport of foreigners has a minimum term of 13 months. Documents proving that foreigners contribute capital to, or invest in, enterprises in Vietnam for instance business registration certificates, investment registration certificates will be required. The foreigners will also need to provide a clean criminal record card.

What required documents to be prepared for application for temporary residence card?

1. 01 Document requesting temporary residence card of guarantor ( form NA6 for agencies, organizations; form NA7 for individuals)

2. 01 Information form for a temporary resident card (form NA8)

3. 02 photos (image size 2×3 cm);

4. 01 Copy of passport and a valid visa (bring an original for comparison);

5. 01 Notice of use of the seal of the enterprise.

6. 01 Document introducing seal, signature of the authorized person of the organization (form NA16)

7. 01 Copy of legal ducuments of organizations to prove purpose to be granted temporary residence card, such as: investment registration certificate, business registration certificate.

How long does it take to apply for a temporary residence card?

After 5 working days since receiving sufficient documents, state agencies will consider and issue temporary residence cards.

What are the procedures to apply for a temporary residence card?

Step 1: Prepare documents as prescribed by law.

Step 2: Submit application file

The officer receiving the application will check the legality and the content of the file. If the application is complete and valid, the officer receives the application and prints a receipt for the submitter.

Step 3: Return results

What state authorities can apply for a temporary residence card?

Immigration Management Department of provinces or cities where the investment is registered.

Some difficulties when carrying out the procedure

Everyone can apply for a temporary residence card by themselves, but not all cases are eligible for a temporary residence card. When applying for a temporary residence card, have some difficulties like: the visa is not for right purposes; foreigners don’t understand the required documents, procedures for applying for temporary residence card so that you don’t know how to write the declaration of temporary residence card; have confusion about the declaration form used for individuals and agencies, organizations…. As a result, the application file is invalid and will be returned. You will have to go to implementing agencies many times to complete an application file, which is costly, laborious, time-consuming but not yet available. Therefore, foreigners need the assistance of a reputable law firm to carry out the procedure effectively to be granted a temporary residence card.

Read More

How Foreigners Could Work in Vietnam Legally

Foreigners working in business set-up in Vietnam are expatriates which normally require a work permit in Vietnam.

As the Vietnam law’s restrictions encourage employment of local employees over foreign employees, normally, the employment of an expatriate is limited to a managerial position or to a position which Vietnamese employees are not yet qualified.

There are exemption of work permit in Vietnam as following cases:

A capital contributing member or owner of a limited liability company which is registered to operate in Vietnam;

A member of the Board of Management of a shareholding company which is registered to operate in Vietnam;

A chief of a representative office or of a project of an international organization or a non-governmental organization in Vietnam;

The foreigner enters Vietnam for less than three months to offer services;

The foreigner enters Vietnam to work for less than three months or to handle an emergency case and that cannot adequately be addressed within Vietnam;

A lawyer who has received a Certificate for the practice of law firms in Vietnam granted by the Ministry of Justice;

The foreigner is a student studying and working in Vietnam;

An intra-corporate transferee working in Vietnam;

The foreigner provides expert and technical consultancy services or undertakes other tasks with respect to research, formulation, evaluation, monitoring and assessment, management and implementation of a program or project using official development aid (“ODA”);

The foreigner has a media license issued by the MOFA;

The foreigner is appointed by a competent authority of a foreign country to teach at an international school which is managed by a foreign diplomatic office or an international organization in Vietnam;

The foreigner a volunteer;

The foreigner has a master’s degree or higher or similar qualifications and provides consultancy, teaching, or conducts scientific research at a university or vocational college for a period not exceeding thirty (30) days; or

The foreigner implements an international agreement signed by a Vietnamese government authority, a provincial body or a central socio-political organization.

In order for an expatriate to be exempted from a work permit, the employer must file an application with the provincial labor authority. Chairman of the provincial People’s Committee will be consulted and if approved, he/she will issue a written consent to each employer regarding the employment of expatriates.

Read More

KMH Group - Korea Proposed to Invest in Developing High-Tech Industrial Cluster in Thua Thien Hue | ANT Consulting

Chairman of Thua Thien Hue Provincial People’s Committee has just had a meeting with Chairman of the Board of Directors of KMH Group – Korea, seeking opportunities to invest in Vietnam and exchanging information to expand investment projects in tourism, relaxation and high-tech industry in Thua Thien Hue.

At the meeting, according to Chairman of the Board of Directors of KMH, the implementation of investment projects of resorts and golf courses associated with entertainment services in Chan May – Lang Co Economic Zone with the total investment capital of 100 million USD of the Group is on schedule. KMH Group is looking forward to expanding investment cooperation in this area in some coastal areas of the province, at the same time linking with major Korean corporations to invest in developing high-tech industrial clusters in Thua Thien Hue province.

Also at the meeting, representative of KMH proposed: “The KMH wants the provincial leaders to pay attention and create conditions for the Group to study and implement some investment projects in the province in the shortest time”.

In response to the investor’s proposal, Chairman of the Provincial People’s Committee welcomed KMH Group to invest in Thua Thien Hue, especially in the potential areas of the provinces with policies to attract investment such as tourism, trade, high-tech industry.

Chairman of the Provincial People’s Committee also affirmed: “Thua Thien Hue province is ready to support KMH Group to research and expand investment, especially to create conditions for KMH Group to cooperate with its partners in establishing Korean high technology parks in Hue”.

Read More