ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Thứ Tư, 18 tháng 10, 2017

The Benefits of Mediation Services in Vietnam

The process of integrating with market economy is developing strongly, which creates many opportunities for businesses to extend their operation and cooperate with international companies. As a result, dispute arising is inevitable. To coincide with benefits, especially information confidentiality under parties’ agreement, commercial mediation is one of the commercial alternative dispute resolution which is more and more popular.

Commercial mediation is a dispute resolution negotiated by parties and the mediator is the third party as an intermediary to support parties to resolve dispute under the regulations of Decree 22/2017/ND-CP on February 24th, 2017. Following the regulations, commercial mediation can be negotiated by parties before, after or at any time of dispute resolution process. By Decree 22, commercial mediation is applied in cases of a dispute between parties with at least one party practicing commercial activities or another dispute under the laws can be resolved by the commercial mediation. Moreover, participating in commercial mediation is voluntary and all the information of mediation shall be kept secret under parties’ agreement, provided that agreement’s content is legal.
Commercial mediation is becoming a popular dispute resolution because of its simple and flexible procedure, economical cost for parties. Parties have chance to choose a suitable procedure and avoid complicated legal procedure. Under the law on parties’ self-determination to choose any mediator and a place to proceed procedures, which helps parties select a mediator with professional skills on dispute resolution. Furthermore, parties could reach an agreement with good will and cooperating spirit. Both still continue to develop and protect business relationship because of parties’ benefits. Under the Decree, all the information involving dispute must be kept secret, unless parties have written agreement or current law has other regulations.
Under the law, parties are entitled to choose a mediator to resolve dispute. According to Decree 22/2017/ND-CP, commercial mediators include commercial case mediators and mediators from commercial mediation institutions selected by the parties or appointed by a commercial mediation institution at the request of disputing parties to support them to resolve dispute pursuant to regulations of this Decree. A person who wants to become a mediator must qualify conditions of Article 7 of Decree 22. Apart from general moral standards following Law on Civil, mediators must have a university or higher qualification and at least two years of working experience in their educated discipline, also mediation skills as well as legal understanding, knowledge of business and commercial practice. Instead of bringing the case to court, which parties cannot predict the result, even inextricable, choosing a mediator who is knowledgeable and experienced could help parties resolve dispute smoothly.
Pursuant to Civil Procedure Code 2015, time for resolving commercial disputes belonging to the jurisdiction of the Court could take years. Meanwhile, choosing mediation, parties take less time to resolve dispute. Moreover, dispute is absolutely resolved by parties’ agreement because in the mediating procedure, with mediator’s support, parties can show their decision on dispute resolution. Then, they can save significant cost.
Another benefit of dispute resolution is that parties decide themselves how to resolve dispute and can know the result. This is a prominent advantage of dispute resolution compared with other resolutions, which have unpredictable result. Importantly, mediation is a private procedure so that parties’ name is not revealed publicly during mediating procedure, decrease hazards to parties’ business reputation.
According to Investment Climate Advisory Services of the World Bank Group, Alternative Dispute Resolution Center Manual: A Guide for Practitioners on Establishing and Managing ADR Centers, mediating resolution has brought many benefits. For individual benefits, mediation reduces the need for enforcement proceedings to ensure one party complies with an agreement, since the parties enter into their settlement agreements consensually. For private sector benefits, mediation enhances private sector development by creating a better environment for business. It lowers the direct and indirect costs that businesses incur in enforcing contracts and resolving disputes.

Thứ Hai, 16 tháng 10, 2017

HCMC calls for investment in infrastructure

The government of HCMC has rolled out hundreds of projects, including six in Thu Thiem New Urban Area, which will need local and foreign investors to get involved in.

City vice chairman Tran Vinh Tuyen told an investment promotion conference on October 11 that the city would develop a comprehensive traffic system to fuel socio-economic development and ease the pressure of high population growth on infrastructure.

The conference was attended by 500 investors, and representatives of municipal agencies and departments.
There are 64 traffic infrastructure development projects, five urban rehabilitation projects and seven flood control projects requiring private sector capital. Eleven national-level projects will be implemented in the city, including nine for traffic improvement.

The city looks to become one of the biggest economic, financial, commercial and science-technology centers in Southeast Asia. Therefore, in its development plan by 2020 with a vision towards 2025, the city will need private investment in services including finance, banking-insurance, tourism, transport-warehousing, post-telecom, information technology, real estate, consulting, science and technology, healthcare, and education.

The four priority groups of industries are mechanical engineering, electronics-information technology, chemical-rubber-plastic and food-foodstuff processing, and urban infrastructure, environment, healthcare and manpower.

Tuyen said the city would promote domestic and international investments in these sectors so that it can become a modern, friendly and livable place.

According to a construction plan until 2020 and after 2025, the city will be expanded towards four directions – east, south, northwest and southwest, said a representative of the Department of Zoning and Architecture.

The city is working on eight metro lines, three tram lines and a monorail line with a combined length of 220 kilometers. The Saigon Hi-Tech Park in District 9, and new urban areas like Thu Thiem, Saigon South, Thanh Da South, Tay Bac and Hiep Phuoc are underway, offering lots of opportunities for investors.

Vo Van Hoan, office manager of  the HCMC People’s Committee, said the city would need a staggering US$40 billion to fund projects in seven breakthrough programs until 2020. But the city alone cannot afford to raise such a huge amount, so capital from domestic private and foreign firms would have to be sought, he said.

The city also said huge private capital would be needed for upgrading 500 old and deteriorating apartment buildings, and developing new housing blocks.

Source: The Saigon Times

Thứ Sáu, 13 tháng 10, 2017

Unemployment Insurance for Employee Unilaterally Terminating Labor Contract

Unemployment insurance is a measure to assist workers in a market economy. In addition to providing financial support to stabilize the lives of employees during the period of unemployment, the main purpose of unemployment insurance is to help the unemployed to find a suitable and stable job, through vocational training, counseling and job referral.

When the labor contract is unilaterally terminated by the employee, the employee does not need to have a certificate from the employer that the legal termination is legal, to be eligible for Unemployment Insurance (UI).
Within 03 months since the date of termination of the labor contract, the employee who doesn’t obtain a new job and wish to receive UI only need to submit an application for unemployment insurance and one of the document following documents:
i) The labor contract or contract has expired or has been completed under a labor contract;
ii) Resignation decision;
iii) Decisive dismissal;
iv) Disciplinary decision on dismissal;
v) Notice or agreement to terminate the labor contract or contract of employment.
The unemployed shall receive a Decision on unemployment insurances within 15 working days from the filing date. From the 16th day, the unemployed shall be entitled to unemployment insurance as requested.
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Thứ Ba, 10 tháng 10, 2017

Foreign printing and packaging equipment providers eye Vietnamese market

HCMC – Foreign providers of machinery and equipment in the packaging and printing industry are increasingly promoting their products to penetrate the Vietnamese market, as seen at the international exhibition Vietnam Print Pack 2017 that kicked off in HCMC on October 5.

The exhibition is taking place at the Saigon Exhibition and Convention Center in District 7, featuring 480 booths of 300 enterprises from 11 countries and territories.

Hank Kan, business and marketing director of SBL Machinery Co Ltd., a Taiwanese manufacturer and provider of packaging machinery, said the company’s products are shipped to European countries for many years. However, SBL has recently seen great opportunities for selling its products to Vietnam, as the country is attracting heavy foreign investments while its production is posting strong growth.

Hank Kan said the company wants to promote its products to local producers, and finds a major distributor who will represent SBL in the Southeast Asian nation.

He believed at least Vietnam-based Taiwanese companies will order SBL’s products, adding that producers from other countries may do so, as the company’s products are of high quality and competitively priced.

This is the first time Konia Minolta Business Solutions Vietnam has exhibited its products – digital label printers and inkjet printers - at the annual event. Le Minh The, its head of business and marketing division, said the printing products manufactured on the latest technology is very easy to use, helping enterprises save time.

Nguyen Van Dong, chairman of the Vietnam Printing Association, said printing and packaging exhibitions in the Asia have recently attracted many exhibitors and visitors, as Southeast Asian nations have achieved strong growth in the printing industry, especially the packaging segment.

Many enterprises told the Daily that Vietnam holds strong appeal to worldwide producers to build factories here, as the country has competitive advantages in terms of market and manpower. Meanwhile, domestic producers seeking to enhance competitiveness have no way but to improve their production efficiency.

Besides, the demand for consumer goods, packaged foods, bottled beverages and pharmaceuticals is rising, leading to an increase in packaged products.

Industry insiders said packaging is the decisive factor behind customers’ decision to purchase a product. Customers are more demanding, requiring packaging to be not only convenient but also safe and environmentally friendly. Therefore, enterprises in the packaging sector that want to survive should apply advanced technology.

According to foreign experts and companies, the local packaging sector has yet to develop. Thus, many providers of machinery and equipment for producers have realized considerable potential and major advantages in Vietnam. This is why they have joined exhibitions, and some have set up representative offices in order to provide their products in a timely manner.

The organizers of Vietnam Print Pack 2017 – the Vietnam National Trade Fair and Advertising Company (Vinexad) and Yorkers Trade and Marketing Service Co Ltd. - said the local packaging and printing industry has developed quite high, with average expansion at around 15-20% of production value. Hence, the domestic market is quite appealing to international machinery and equipment providers.

ANT Lawyers is a law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.
For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at or call the telephone at (+84) 24 32 23 27 71.

Chủ Nhật, 8 tháng 10, 2017

Child Adoption by Foreigners

Presently, there are many foreign people want to adopt a Vietnamese. Besides, the law of Vietnam also has strict regulations for child adoption by foreigners.

First is the adoption of specific child by foreigners. The Adoption Act 2010 defined that the Vietnamese residing abroad and foreigners permanently residing overseas are allowed to adopt specific child in the following cases:

As stepfather or stepmother of the adopted person;
As uncle or aunt of the adopted person;
Has adopted children who are siblings of the children that are adopting;
Adopt children with disabilities, HIV / AIDS or other fatal diseases;
As foreigners who are working and studying in Vietnam for at least 01 years.
In which the 4th case is a special case that are encouraged by the State with simpler procedures than other cases.

The order and procedures for adoption of child will be conducted as follows:

The profile of child adopting people includes:

+ Application for adoption by name;

+ A copy of the passport or replacing document that have the same value;

+ The written permission for child adoption in Vietnam;

+ The psychological and family investigation;

+ Documents certifying health status;

+ Documents certifying income and assets;

+ Judicial record;

+ Documents certifying marital status;

+ Documents evidencing eligible for child adoption by name.

+ In case of specific child adoption for children over 5 years old and two or more siblings, the record must clearly state the psychological preparation plan for children, preparing conditions for children to integrate into the new family, culture and society environments.

The above documents are issued and certified by the competent authority where the child adopting people permanently reside. To be certified by the State of Vietnam, it should be certified through the procedure of consular legalization.

The profile of children to be adopted includes:

+ Birth certificate

+ Certification of health issued by the district or higher health authorities;

+ Two full body and looking straight images, which was taken within 06 months

+ Documents about the noteworthy characteristics, preferences and habits of children.

These papers are issued by nurturing organizations or natural parents / guardians of children.

Profiles of the child adopting person and the child being adopted are submitted directly at the Bureau for adoption. The case that cannot submit the profile directly at the Bureau for adoption, the child adopting person have to authorize by written document their relatives residing in Vietnam to submit the profile at the Bureau for adoption or send the profile through post office in the form of guarantees.

In the procedure of adoption of specific children with disabilities, HIV / AIDS or suffering from serious diseases, Vietnam law allows the free implementation of procedures to find alternative families and introduce children for adoption. The meaning of this is to shorten the procedure, creating condition for these children to be adopted and nurtured in an enabling environment.

After receipt of the application for adoption, Bureau of adoption will check and appraisal the profile to determine that the child adopting people was certified by the competent authorities of the country where he or she resides that he or she satisfy the eligibility for child adoption under the laws of that country and under the laws of Vietnam.

Towards the child to be adopted, after receiving profile from natural parents or guardians of the child, Bureau for adoption has the responsibility to inspect children’s record, conduct consultation with the natural father / mother or the guardians of child about the child adoption for foreigner during 07 working days.

Within 07 working days from the expiration date of changing opinion about the child adoption for foreigner of the natural parents or guardians of children, if children are eligible to be adopted by foreigner, who are entitled to adoption by name, Bureau for adoption will report the Department of Justice, Department of Justice will certify by document that the children eligible for adoption by foreigner. Finally, Department of Justice submits to the Provincial People’s Committee decided to allow the foreigner to adopt the children.

Second is the adoption of child not by name with foreign element. The adoption of child not by name with foreign element is the cases when Vietnamese residing abroad, foreigners reside in the country in which that country is a member of international treaties on child adoption with Vietnam and adopt Vietnamese children; Vietnam citizens residing in Vietnam adopt foreign children; foreigners permanently residing in Vietnam adopt Vietnamese children.

For the adoption case that not by name, the order and procedures will include:

+ The profile of people that want to adopt children should be submitting to the Bureau for adoption through the adoption agencies of that country that are licensed to operate in Vietnam. If that country does not have adoption agencies licensed to operate in Vietnam, the adoption profile should be submitting to the Bureau for adoption through diplomatic representative offices or consular office of that country in Vietnam.

+ The profile of children being adopted will be submitted by natural parents or guardians of the children at the Bureau for adoption.

+ The Bureau for adoption receives, inspect and evaluate profile of the child adopting people and children being adopted.

Compared to the case of adoption by name with children with disabilities, HIV / AIDS or other serious diseases, the case of adoption not by name, the Department of Justice has to implement the procedure to find alternative family and introduce children for adoption. The meaning of these two procedures is to encourage local Vietnamese permanent residing in Vietnam to adopt Vietnamese children, enabling Vietnamese children to live, learn and develop in their own homeland. Only when the above procedure to find alternative family and introduce children for adoption have finished without any local people want to adopt that children, the Department of Justice will consider deciding for the children to be adopted by foreigner.

The notice period to find alternative family is regulated as 60 days, during this period, if any Vietnamese wants to adopt children, they should contact the Commune People’s Committee where children resides to consider and settle the adoption. If time runs out 60 days, the Department of Justice has to prepare a list of children who need to find alternative families and submit to the Ministry of Justice.

On the other hand, within 30 days after receiving profile from foreigner that want to adopt Vietnamese children, the Department of Justice has to review and introduce children to be adopted on the basis of children with no domestic adoption. After introducing children to be adopted, the Department of Justice reported the Provincial People’s Committee for comments.

The case that the Provincial People’s Committee disagrees, they have to send a written document stating the reasons and submit to the Department of Justice. On the other hand, the case that the Provincial People’s Committee agrees, within 07 working days, the Provincial People’s Committee decided for children for abroad adoption.
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Thứ Năm, 5 tháng 10, 2017

Draft law doubles foreigners' realty ownership terms in Vietnam

If passed, the new law will give foreigners a 99-year lease for properties in special economic zones.
Vietnam’s government has expressed support for a new draft law that would give foreigners 99-year leaseholds on properties they buy in key investment areas.
The Ministry of Planning and Investment presented the bill to the cabinet on Wednesday, suggesting the leasehold duration for foreigners in special economic zones should be nearly doubled from the current 50 years.

Vietnam has 18 special economic zones and is developing three more in Quang Ninh Province near the Chinese border, the central province of Khanh Hoa, and Phu Quoc Island in the southern province of Kien Giang.
Prime Minister Nguyen Xuan Phuc said the bill had been carefully drafted but needed to stand out to draw more investment to the zones.
The bill will be reviewed by the legislative National Assembly for approval this October.
Vietnam opened up its housing market to outsiders in July 2015, allowing foreign investment funds, foreigners with valid visas, and international firms operating in Vietnam and overseas to buy unlimited residential properties with a leasehold of 50 years.
There are around 82,000 foreigners working and living in Vietnam. Before the amendments to the Housing Law, each of them were elegible to buy one apartment providing they were either married to Vietnamese nationals, held managerial positions or had contributed to the country.
Industry insiders believe that easing ownership restrictions has created more interest in the local housing market, but many people complain that regulations and paperwork are still very complicated for foreign buyers.
Meanwhile, many Vietnamese are pouring money into overseas properties, particularly in the U.S., which PM Phuc says is a sign that Vietnam’s investment environment needs to improve.
Vietnamese ranks ninth among foreign buyers of residential properties in the U.S., according to the 2017 Profile of International Activity in U.S. Residential Real Estate issued by the U.S. National Association of Realtors last month.
The report said Vietnamese people spent over $3 billion buying homes across the Pacific in the year ending March 2017.

Source: e.vnexpress

Thứ Ba, 3 tháng 10, 2017

FDI firms fret over social, health insurance for foreigner

Foreign invested enterprises in the southern province of Binh Duong are anxious about social and health insurance regulations for non-resident employees, heard a dialogue between the provincial government and foreign investors on September 26.

In particular, foreign nationals who have work permits in Vietnam, trade certificates or practicing licenses will be subject to compulsory social insurance contributions from early next year.
This is the first time they will join the social insurance program in the country. However, local enterprises employing foreign nationals are fretting over the possibly complicated procedures.
Enterprises are wondering who will be obliged to join the program, how much they will contribute, and how they will benefit from it. Another question is how they can recover their fees in case they quit their jobs.
Duong Thi Anh Tuyet, administration and human resources director of Rheem Vietnam Co Ltd in Binh Duong, said the regulation will come into force within the next three months, but there has been no decree or circular guiding its implementation to date. Therefore, her company is deeply concerned.
Foreign workers often work on a fixed term. Thus, after they retire or quit their jobs, they will have to come back to Vietnam to claim insurance allowances. Enterprises asked whether that amount of money might be enough to pay air tickets for foreign employees to return to Vietnam to complete the procedures for their social insurance claims.
A representative of Liwayway Vietnam JSC said the company applies two ways of salary payment. If employees are dispatched to Vietnam, the parent company will pay salaries for them, while those who sign labor agreements with the Vietnam-based company, the local subsidiary will pay them.
As such, the representative pondered how Liwayway Vietnam will have to pay social insurance for its foreign employees starting January 1. Other foreign invested enterprises also shared the same concern.
In addition to social insurance, many enterprises complained purchasing health insurance for their foreign employees is tough. They have already bought health insurance for their foreign staff but most of them do not use such insurance coverage.
They said a majority of health workers in Binh Duong Province could not communicate with their foreign workers in English, so they had no way but to employ interpreters.
Therefore, they suggested social insurance agencies allow the insured to take medical examinations and treatments at international hospitals so that their foreign employees can talk directly with doctors.

However, the problem is that the province does not have many international hospitals and clinics, so purchasing health insurance will put foreign employees in a tricky situation.
In a related development, fresh foreign direct investment (FDI) pledges in the province have amounted to roughly US$2 billion in the year to September, a year-on-year rise of 27% and 40% higher than the full-year target. The figure includes more than US$1.1 billion registered for 148 new projects and US$765 million as additional funds for 87 operational ventures.
Source: The Saigon Times
ANT Lawyers is a law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.
For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at or call the telephone at (+84) 24 32 23 27 71.

Thứ Hai, 2 tháng 10, 2017

Are there any differences in filing a Trademark application in Vietnam as compared to your home country?

The legal protection of Trademark is based on the principle of territoriality. That means each nation is free to regulate the use of intellectual property on its own territory. For instance, it can only grant protection titles to the domestic brands while denying foreigners. In order to overcome such problems, nations around the world have been reaching and signed a number of international treaties which was built on the principle of territoriality. There was a remarkable achievement that nations established certain rules that all member States must respect. Member States shall protect trademarks of companies of other member States as if they were his own citizen (so called principle of national treatment). In other words, assuming that Vietnam and France are member States, Vietnam is bound to treat French enterprises the same rules that it applies to Vietnamese firms.

As a consequence, there are not any differences in principle when filing a Trade mark application in Vietnam as compared other State members. However, practically, for filing a Trade mark application in Vietnam, there might some additional requirements or language of necessary documents as following:
1.Right to register marks: According to Article 89 Law on intellectual, foreign individuals not permanently residing in Vietnam and foreign organizations and individuals without production or business establishments in Vietnam could not file applications for Trademark registration by themselves but through their lawful representatives in Vietnam by POA (Power of Attorney).
2.Solving the language barrier: Foreign individuals permanently residing in Vietnam and foreign organizations and individuals whose production or business establishments are in Vietnam could file applications for Trademark by themselves. However, the language barrier might be the problem because Applicants shall fill a standard form in Vietnamese and submit this form to the NOIP accompanies by documents evidencing the registration right, the priority right or other documents supporting the application. All these documents could be made in another language but shall be translated into Vietnamese at the request of the State administrative body for industrial property rights
To be accepted, the sample of the Trademark must be clearly described by words in order to clarify elements of the mark and the comprehensive meaning of the mark, if any; where the mark consists of words or phrases in a foreign language, such words or phrases must be translated into Vietnamese.
3.Time for request your priority claim: Priority claim shall not be automatically recognized in Vietnam, therefore the claim for the priority right must be clearly stated in the application accompanied by a copy of the first application certified by the first IP office.
4.Applying “First to use” or “first to file” principle: In Vietnam, “first to file” principle is applied, that is far cry from so-called “first to use” countries. The “first to file” principle means rights in a trademark generally are acquired only through registration therefore a trademark owner can apply to Trademark registration without having used it anywhere and at any time. Kindly be advised that if you come from the United States, the Philippines, Australia, and New Zealand where trademark rights are generally acquired through use.
All in all, these treaties built up a harmonized system that benefits the international firms to protect their Trademark outside of the home nation. The local qualified Intellectual property Agent might support the international firms in overcoming the barrier of language and these additional requirements.
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Thứ Tư, 27 tháng 9, 2017

Non-Compete Agreement In Labor Contract

The principle “freedom to work” is recognized and respected by the Labor Code 2012. However, this regulation may harm legitimate business interests of employers when employees, during the performance of the labor contract or especially after the termination of the labor contract, reveal the business or technology secrets to compete with the employers. Therefore it is necessary to create the limits on the freedom to work, for the purpose of preventing workers from revealing employers’ business or technology secrets. Law in many countries around the world has recognized “Non-Compete Agreement” as a tool to enforce security programs.

The Labor Code 2012 and sub-law documents do not mention to the definition of “Non Compete Agreement”, but make the provision that: “When an employee performs a job which is directly related to business or technology secrets as prescribed by law, the employer may reach a written agreement with the employees on the content and duration of protection of business or technology secrets, and benefits and compensation in case of violation by the employees”.
The definition of “Non-Compete Agreement” is inferred by explaining the provisions of law and referred to the articles of legal experts. “Non-Compete Agreement” is a legal contract between an employee and an employer, for a purpose of preventing the worker from competing directly or working for a competitor during the performance of the labor contract or especially after the termination of the labor contract. Thereby, we can infer that only when employers have business or technology secrets, they have the right to make Non-Compete Agreement. Moreover, the legitimate business interests that are protected must be legal, unique, influence the maintenance, stability and development of business activities.
Analyzing the provision “Non-Compete Agreement”, we can conclude that, the employees adjusted by the “Non-Compete Agreement” is the worker who is directly involved in business or technology secrets (such as the senior managers, senior technicians and others are obliged to keep business or technology secrets). The Labor Code 2012 has regulated that the “Non-Compete Agreement” must be on text.
The provision of Non-Compete Agreement is necessary for employers to protect business or technology secrets, but it is difficult for workers to find job after the contract terminates. Therefore, Non-Compete Agreement should balance the interests between employers and employees by setting reasonable limits in time, geographic scope and particular industry or activity.
(i) For restriction on time, the Labor Code 2012 does not specify restriction period or the point of starting restriction period. This is entirely upon the parties. However, Non-Compete Agreement can not be enforced unless it specifies a reasonable restriction period. Referring to the law of some European countries (Germany, France) and Asian countries for example in China, the maximum restriction time is 02 years, to ensure that employees have conditions to find new jobs.
Moreover, it provides opportunities for employers to motivate, improve the technology and business secrets to develop. On the other hand, law in some other countries distinguishes between highly skilled workers (group 1) and unqualified employees (group 2). Spanish law is a typical example, the maximum restriction period is two years for workers in group 1 and six months for group 2.
(ii) Restriction on geographic scope is not regulated in Vietnamese law. Meanwhile, most countries such as France, China and Russia all regulate that the restriction is on the whole country. However, due to differences in society, economic and education conditions, Vietnam can hardly regulate like that. On the other hand, when making the provisions of the restrictions on geographic scope, it is necessary to base on the performance of the company, the method of production, the size of and the type of company.
(iii) For restriction on particular industry or activity, most courts tend to consider the work that employees will work in the new labor contract. Normally, if the new job is similar to the old one, it will not be approved by the court. Under the Labor Code 2012, the content of restrictions on particular industry or activity when employees enter into agreement include: (i) obligation to keep trade information confidential (business secrets, technology secrets) ; (ii) not be able to work for the competitor of former employers or to conduct his own business competing with former employers.
Labor Code in our country does not specify the scope of the restriction on particular industry or activity, it depends entirely on the will of the parties. Non-Compete Agreement can not be applied to all jobs, but only to those who hold business and technology secrets. For every type of work there will be a different range of restrictions. The scope of the restriction is not exceeding the employee‘s professional capacity and ensuring the opportunity of works in the future.
The benefit that employees receive when signed the Non-compete Agreement can be the opportunity for promotion, high salary, and commendation if the Non-Compete Agreement is made while the labor contract is valid. If the Non-Compete Agreement is applied after the labor contract terminates, employees shall receive the compensation. The amount of compensation is upon the agreement of the parties and must be satisfactory with the restriction of job opportunities. There are some cases that employees may not be entitled compensation are to violate the Non-Compete Agreement or die or prison sentence.
According to the Labor Code 2012, in case of violating the non-compete contract, employees have obligation to compensate, but it does not give specific compensation amount as well as the method of compensation. In order to claim compensation, employers must demonstrate these following factors: (1) the violation of the Non-Compete Agreement; (2) actual damage (the lost revenue and profit of the employer); (3) the causal relationship between the infringement and the damage; (4) fault of the employee. The amount of compensation must correspond to the amount of lost revenue or profit. In addition, employees must return the non-owned assets that are exploited and developed to compete with former employers. Moreover, employees must repay the compensation and other benefits paid by former employers if agreed in the agreement.
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Thứ Hai, 25 tháng 9, 2017

Regulation on Grid Connected Solar Power Investment Project

The Ministry of Industry and Trade has recently issued Circular 16/2017/TT-BCT on project development and the model purchase contract for solar power projects.
Accordingly, the grid connected solar power investment projects are regulated as follows:
– The investor can only set up a solar power investment project included in the provincial and national level solar-power development plan; or provincial and national power development plan that are approved.

– The contents of the solar power investment project must comply with the regulations on management of investment in construction and the following requirements:
+ Evaluate the impact of solar power project connection plan on the power system in the area.
+ Having equipment connected to the SCADA system or moderation information so that the forecast information on electricity output can be transmitted per hour to the regulated agency.
– The equity ratio of grid connected solar power projects should not less than 20% of the total investment.
– The area of long-term land use shall not exceed 1.2 ha/01 MWp.
Circular 16/2017/TT-BCT takes effect on October 26th2017.

Thứ Hai, 18 tháng 9, 2017

How to Obtain Business Registration Certificate in Vietnam?

Every organization and individual wishing to set up a foreign owned company in Vietnam shall need to meet some specifics conditions as promulgated under the Law on Investment and Law on Enterprise.  In specific areas being considered as conditional investment, the investor shall also need to consult with the law governing the area of investment. Once the investment registration certificate is completed, the investor has the obligation to apply for enterprise registration.

The procedure to register for a certificate of enterprise registration of a joint stock company or limited liability with two or more members are herein mentioned:
i) Application form for enterprise registration
ii) The company’s charter.
iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.
iv) Valid copies of:
Copies of the ID card or other ID papers of founding shareholders and foreign investors/members being individuals; list of authorized representatives of foreign shareholders being organizations.
Decision on establishment, certificate of business registration, or an equivalent document of the organization and the letter of authorization; the ID card or other ID papers of the authorized representatives of founding shareholders and foreign investors being organizations.
If shareholders are foreign organizations, the copy of the certificate of business registration or an equivalent document must be notarized, legalized and authenticated.
The Certificate of Investment registration of the foreign investors as prescribed by the Law on Investment.
State Authority: Business registration office of the province where the enterprise’s headquarters is situated.
Period: within 03 working days from the full receipt of the dossiers
Result: Business registration office shall issue the certificate of enterprise registration or if the application is not satisfactory, business registration office shall inform the applicant of necessary revisions and supplementation to company.
In general, Vietnam government encourages foreign direct investment.  If the investor faces challenges at state authority, whom do not issue notification or request of supplementation to the application for enterprise registration, the investor cold lodge a complaint as prescribed by regulations of law on complaints and denunciation to the state authority to protect its right in doing business and investment in Vietnam. A law firm in Vietnam with expertise in both business registration and dispute resolution could assist the investor in the process.
The enterprise is entitled to do business from the issuance date of the certificate of enterprise registration. For conditional business lines, enterprises are entitled to engage in conditional business lines if they satisfy all conditions and are capable to maintain fulfillment of such conditions throughout their operation.

Thứ Năm, 14 tháng 9, 2017

Minister: Law on special economic zones will offer strong boon for investors

HANOI – Investors in Vietnam’s special economic zones would enjoy far greater incentives than those offered by similar zones in many other countries if the draft law on special administrative and economic zones is approved, said Minister of Planning and Investment Nguyen Chi Dung.

Speaking at the 14th meeting of the National Assembly Standing Committee in Hanoi on September 11, Dung said that as of 2016, there were about 4,500 special economic zones in 140 countries around the world. Therefore, Vietnam’s special economic zones must provide a much stronger boon to grab the attention of foreign investors in Vietnam.

Dung said factors that make special economic zones more appealing to investors include simple administrative procedures, fee and tax incentives, and favorable business environment and strategic locations.

According to the draft law, domestic special economic zones will receive support from the Government to develop basic infrastructure and high-quality human resources, while State management will be streamlined.
The draft law abolishes a number of conditional business sectors and simplifies business registration procedures.

Enterprises investing in priority sectors like business support, research and development, education and healthcare will be able to hold land use rights for up to 99 years. Apartments in housing or resort projects can be transferred to, donated to, acquired by or inherited by foreign organizations and individuals.

The draft law also proposes raising duty-free limits at duty-free shops in such zones, offering visa exemptions for foreigners staying in Vietnam within 60 days, issuing e-visas for foreigners and offering lower special consumption tax to casinos.

Minister Dung said Vietnam’s economic growth has slowed down in recent years, with the weak competitiveness and unattractive business environment. Therefore, the Government will have to take drastic measures and offer greater incentives to attract more investment into special economic zones.

Source: The Saigon Times