ANT Lawyers, as a reliable English speaking law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law.
The Business Environment in Vietnam and the Need for Expert Legal Guidance
Vietnam’s business environment presents a unique set of challenges and opportunities. The country’s integration into the global economy, coupled with its own legal reforms, has attracted foreign investment but also introduced a complex regulatory framework.
Business litigation attorneys play a crucial role in this context, offering advice that helps businesses align their operations with local laws while pursuing growth and innovation.
For instance, navigating the legal requirements for foreign investment in Vietnam can be daunting. A business litigation attorney advises on the appropriate legal structures, investment incentives, and compliance with the Law on Investment and the Law on Enterprises. They ensure that foreign businesses understand their rights and obligations, helping them to operate effectively within the Vietnamese legal framework.
For a dispute to be referred to arbitration, there must be a valid arbitration agreement in writing, either as an arbitration clause within a contract or a separate agreement. If the agreement is included within the context of a contract, the arbitration clause is considered independent, and any modification, extension, or termination of the contract does not affect the validity of the arbitration clause. Vietnamese law allows for a written arbitration agreement to take the form in any written form, so long as the writing clearly indicates the parties’ intent to resolve any dispute via arbitration. If a dispute falls within the scope of a valid arbitration agreement, but a party attempts to initiate court proceedings, the residing court does not have jurisdiction over the matter, and must drop the case.
ANT Lawyers is a law firm in Vietnam with offices in Hanoi, Danang and Ho Chi Minh City. We are an exclusive Vietnam law firm member of Prae Legal, a global law firm network spanning 5 continents and 150 countries through which we have built up relationship with lawyers from all parts of the world. This cooperation allow ANT Lawyers to handle cases involving matters of international nature involving foreigners.
ANT Lawyers, as a reliable English speaking law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law.
The law firm works with corporate and individual clients from across the sectors and offers a true spectrum of legal expertise, both contentious and non-contentious. Highly professional staff and great experience enables us to advise on various matters from the precedent-setting to the purely procedural.
The common thread in everything our law firm does is our ability to combine both commercial and legal perspectives. This means our clients can rest assured that, whatever the case or transaction, our lawyers at the law firm in Vietnam have the experience to deliver legal advice and service that works in a commercial context.
Our lawyers offer client with particular services that guide clients throughout investment, commercial transaction, M&A, civil transaction, property sales and purchase, IP registration, and dispute resolution procedures.
We help clients to overcome cultural barriers and achievie their strategic and financial results, anh in the meantime ensure best interest protection, risk minimization, and regulatory compliance.
Tell us how we can be of service and one of our team members will contact you. Email: ant@antlawyers.vn, Tel: +84 28 730 86 529
Why to start a business in Vietnam?
In recent years, Vietnam has become an attractive destination for foreign investment thanks to its advantages of security, political stability, and favorable geographical position to trade with the world. This is both the connection center of the region and the gateway to penetrate the economies in the western region of the Indochina Peninsula. In addition, the Vietnam government has increasingly been offering more preferential policies to create favorable conditions for foreign investors to start doing business in Vietnam.
A labour dispute is one of the most common disputes in society, in particular it means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labor relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labor relation. In fact, labour disputes happen often, but there are many situations where employees often have little understanding of their rights, leading to disadvantages if the employer does not know or does not follow the law. Therefore, identifying labour disputes is very important. For employees, learning about labor law is to know their rights. Employers need to understand labor laws to ensure compliance. Both employees and employers can consult a dispute lawyer in labor to protect their rights.
For example, during the recent epidemic, many businesses faced difficulties in doing business and hence many common labour disputes arisen. For workers, a dispute could arise from not being paid on time. Other concerns are whether there is any violations that lead to the termination of the labor contract? Has the employer carried out restructuring procedures and notified state agencies according to the correct procedure before terminating the labor contract with the employee? Does the employer have an agreement with the employee before suspending the labor contract during the pandemic? When the business is not efficient, is the employer required to pay the 13th month salary to the employee?
At present, labour disputes are classified into different types based on the object who participated in the dispute: Labour disputes between the employee and the employer; labour between the employee and the organization that sends the employee to work overseas under a contract; labour dispute between the outsourced worker and the enterprise. Right-based or interest-based collective labour disputes between one or several representative organizations of employees and the employer or one or several representative organizations of employees.
The labour dispute settlement process must follow the following principles: Respect the parties’ autonomy through negotiation throughout the process of labour dispute settlement; Prioritize labour dispute settlement through mediation and arbitration on the basis of respect for the rights and interests of the two disputing parties, and respect for the public interest of the society and conformity with the law; The labour dispute shall be settled publicly, transparently, objectively, promptly, and lawfully; Ensure the participation of the representatives of each party in the labour dispute settlement process; Labour dispute settlement shall be initiated by a competent authority or person after it is requested by a disputing party or by another competent authority or person and is agreed by the disputing parties.
When a labour dispute arises, one party or parties may request a Labor Mediator; The Labor Arbitration Council or the People’s Court to settle the disputes. Matter on time limit is an important matter that the parties should pay attention. The time limit to request a labor mediator to settle an individual labour dispute is 06 months from the date on which a party discovers the act of infringement of their lawful rights and interests. For the form of dispute settlement through the Labor Arbitration Council, the time limit is 09 months from the date on which a party discovers the act of infringement of their lawful rights and interests. In case of requesting the Court to settle the labour dispute, the time limit is 01 year from the day on which a party discovers the act of infringement of their lawful rights and interests. Many of the labour disputes could be resolved effectively at court hence engaging a labour dispute lawyers in Vietnam to file a lawsuit will help parties involved.
Please note, upon the expiration of the above-mentioned time limitation, the disputing parties will not have the right to request the competent authorities to resolve the dispute. In case the requester is able to prove that the aforementioned time limits cannot be complied with due to a force majeure event or unfortunate event, the duration of such event shall not be included in the time limit for requesting settlement of individual labour dispute.
ANT Lawyers – A law firm in Vietnam, always follow up the labour matters to update clients on regular basis.
Source ANT Lawyers: https://antlawyers.vn/library/how-to-resolve-disputes-in-labour-in-vietnam.html
English Speaking Law Firm in Vietnam
ANT Lawyers, English speaking law firm in Vietnam City with English speaking lawyers is located in the business center that provides convenient access to our clients.
As a single, fully integrated, global partnership, we pride ourselves on our approachable, collegiate and team-based way of working
ANT Lawyers is a member of International Bar Association, Vietnam Bar Federation, Hanoi Bar Association.
ANT Lawyers is an exclusive Vietnam law firm member of Prae Legal, a global law firm network spanning 5 continents and 150 countries.
ANT Lawyers is a boutique firm specialising in corporate M&A and representing foreign clients and investors across a wide range of domestic and cross-border transactions, including restructuring and joint ventures” IFLR1000 reviews under Financial and Corporate.
We pride ourselves on international recognition by IFLR1000 on Financial and Corporate practice, Legal500, international standard by Prae Legal peer members, local expertise and strong network with Vietnamese authorities and local experts.
Our business strategy is driven by customers’ needs and our focus to provide clients with a high quality legal advice within business context.
Send us request via email at ant@antlawyers.vn or call us at +84 28 730 86 529
Let ANT Lawyers help your business in Vietnam
Dispute Attorneys in Ho Chi Minh City
ANT Lawyers law firm could assist clients on dispute resolution matters throughout Vietnam from office in Ho Chi Minh City.
We have been representing clients in dispute in various sectors i.e. dispute in international trade, dispute in commercial transactions, dispute in partnership or shareholder agreement, dispute in property sales and purchase, dispute in intellectual property, dispute in finance, dispute in maritime matters.
Our expertise, experience, and understanding of Vietnam culture allow us to offer client a suitable and flexible solutions to the matters, taking into consideration of commercial perspective of the issues the client face, and take the client throughout the stages of litigation proceeding at Vietnam national or provincial courts, and arbitration centers.
If possible, we advise client on alternative dispute resolution, including mediation, which our lawyers are well trained and certified internationally in US and EU with adaption of skills to Vietnam cultures to help client resolve conflicts without formal proceeding to save cost, time and maintain the relationship between disputed parties.
Our dispute resolution practice at ANT Lawyers helps our clients with the following:
Negotiation: reviewing relevant contracts and documents, advising possible courses of action and negotiating with relevant parties before initiating the legal proceeding.
Litigation and legal representation: representing clients before Vietnamese courts and other Vietnamese authorities.
Arbitration: advising on choice of arbitration, drafting arbitration clause, and representing clients for recognition and enforcement of foreign arbitral awards.
Alternative proceedings: certain alternatives may be available for dispute resolution in Vietnam.
ANT Lawyers - As a law firm in Vietnam, always follow up the dispute resolution in Vietnam case to update clients on regular basis. And you could learn more about ANT Lawyers dispute practice or contact our dispute attorney in Ho Chi Minh city, for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529.
Trademark Consultant in Vietnam
Trademarks are an important part of client company’s competitive edge. ANT Lawyers IP practice helps you protect these valuable intellectual assets, through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
It has been obvious that the protections of trademark have created significant value in intangible assets. Hence, the manufacturers of various products and service providers could establish and protect their identities and the identities of their products or services in the marketplace through the creation and protection of names, designs, logos, and explore strategies for protecting potentially valuable trademarks. Further, it is important to be ready to design an ongoing maintenance strategy to protect, extend, and maximize the value of trademarks, and discuss strategies for responding to possible trademark infringement if any.
ANT Lawyers IP practice helps you protect these valuable intellectual assets through trademark registration, oppositions, and other trademark protection resolutions in Vietnam.
-Recordals of Amendments, Assignments, Merger Agreements, Licences
-Filing Opposition & Responses
Our trademark attorneys in Vietnam will process client’s trademark registration by carrying out the following steps:
-Providing our clients with cost estimates for searching and filing applications
-Conducting comprehensive clearance searches including analysis about registration of the required trademarks and providing advice on the most appropriate and cost-effective method to obtain a clearance
-Preparing and filing trademark applications, including obtaining appropriate legalization of documents and translations (if applicable)
-Responding to objections raised by Registrars and potential third party oppositions
-Negotiating settlement agreements when necessary to overcome prior marks
-Obtaining a Certificate of Trademark Registration once your trademark is approved
-Recording changes in name and address of proprietor, assignments, licenses and renewals of trademarks
If you are looking for experienced IP services in Vietnam to help you with your Trademark application, you should visit ANTLawyers.vn. Our attorneys have experience with the IP process and will work closely with you as you apply for your Trademark in Vietnam.
Vietnam attends APEC Ministers Responsible for Trade Conference
Vietnam attends APEC Ministers Responsible for Trade Conference
The 27th APEC Ministers Responsible for Trade (MRT) took place online on June 5, 2021 with the participation of 21 APEC member economies and observers including the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation Council (PECC) and the Pacific Islands Forum (PIF). Measures to open market will be discussed to facilitate trade and investment, including the smooth policy from Vietnam to support to establish company in Vietnam.
In 2020, due to the impact of the Covid-19 pandemic, the global economy shrank 3.3%. However, because of strong efforts in the introduction of vaccine production and vaccination, financial support programs in some countries, as well as more effective disease containment measures in many countries, this year’s global economy is forecasted to achieve marked improvements compared to 2020. According to a report by the International Monetary Fund (IMF) published in April 2021, the global economy is forecast to reach 6% in 2021 and 4.4% in 2022.
At this meeting, APEC Ministers focused on discussing trade policies to respond to the COVID-19 pandemic. Measures taken include ensuring open markets, promoting the smooth flow of trade in essential goods and services, and facilitating safe and effective vaccine supply chains.
Another important content of the 27th MRT Conference is to support the multilateral trading system, including the progress of implementing reforms of the World Trade Organization (WTO) and updating the progress of negotiations in many fields, such as fisheries subsidies, special and differential treatment, industrial subsidies, market access, agriculture, etc. The APEC Ministers expressed their hope that reform and progress in WTO negotiations will bring positive results, contributing to strengthening the role of the multilateral trading system as well as global and regional economic integration.
At the Conference, the Vietnamese representative also affirmed that Vietnam would actively participate in negotiations and discussions to resolve current issues in the WTO to contribute to the success of the 12th WTO Ministerial Conference. In addition, Vietnam also supports initiatives to promote the movement of goods and services in the region, both to help prevent the epidemic and to develop the economy.
Through the meeting, the participants hoped that in the coming time, in parallel with fighting the epidemic, the parties would also take measures to promote trade and investment to achieve the goal of economic development in the world. Vietnam commits to support the global trade and policy to smooth investment into Vietnam through setting up company in Vietnam.
ANT Lawyers, a law firm in Vietnam could offer service to set up company in Vietnam. We assist clients needing legal service in obtaining investment certificate, business registration certificate, or other licensing procedures.
The Development of Renewable Energy in Vietnam
The Development of Renewable Energy in Vietnam
On June 15th, 2020, at the National Assembly’s socio-economic discussion session, the Ministry of Industry and Trade clarified a number of issues related to the implementation of power projects and energy security in Vietnam amid the the situation of energy supply, especially electricity supply is facing many difficulties when hydroelectric and thermal power reserves are almost fully exploited and the risk of energy import is increasing.
Vietnam has the advantage of being an equatorial country, with high annual sunshine hours (average from 1800-2600 hours/year) which is an advantage to develop solar energy. Vietnam has a long coastline (3260 km) and favorable terrain, the construction of wind power stations is a solution that can help improve Vietnam’s electricity output in the next years.
As reported by the Ministry of Industry and Trade, for solar power, the total planned capacity of about 10,300 MW has been operated on 90 solar power projects with a total capacity of about 5,000 MW. For wind power, as proposed by the Ministry of Industry and Trade, the Prime Minister has agreed to supplement the planning of an additional 7,000 MW of wind power, raising the total scale of wind power capacity planned to 11,630 MW.
In addition, according to Vietnam’s commitment at COP21, Vietnam will reduce the greenhouse gas emissions by 8% by 2030. And with effective support from the international community, Vietnam can cut its emissions by 25% greenhouse gas emissions by 2030. And the Clean energy technology is one of the best solutions to fulfill this commitment.
In addition, the installation, operation and maintenance of wind and solar power systems are relatively simple, at low cost therefore will save time and cost for investors. Besides, clean energy does not cause impacts on large-scale migration environment, such as deforestation, emissions of dust, water and ash, etc. In contrast, it also creates beautiful and majestic landscapes, and attractive to visitors, this is in line with Vietnam’s sustainable development goals in the future.
With economic and environmental advantages, the scientists forecast that, in the world to 2040 and 2050, the percentage of solar power capacity in total generating capacity will be 45% and 50 %; The structure of electricity production by 2050 is as follows: Number 1 is solar power: 35.8%; followed by onshore wind power: 24.3%; Offshore wind power: 12.1%; Hydroelectricity: 12.4% and the rest are other sources of renewable energy and fossils and nuclear: 15.4%.
In order to ensure the implementation of the overall plan for the coming time, the Ministry of Industry and Trade is focusing on speeding up the construction of the electricity Planning No. VIII to submit to the Government in the fourth quarter of 2020. In particular, following the contents of the Resolution No. 55-NQ/TW of the Politburo on “Vietnam’s national energy development strategy orientation to 2030, vision to 2045” on February 11th, 2020, according to which ratio of sources of renewable energy in the total primary energy supply will reach about 15-20% by 2030; 25-30% by 2045.
According to Resolution No. 55-NQ/TW, Vietnam will develop breakthrough mechanisms and policies to encourage and promote the renewable energy sources in order to replace fossil energy sources at maximum. Prioritizing the use of wind and solar energy for electricity generation; encourage investment in building power plants using urban waste, biomass and solid waste in parallel with environmental protection and economic development of the circulation. To establish and develop a number of renewable energy centers in advantageous regions and localities. Then researching and assessing the overall potential and developing development orientations for geothermal energy, ocean waves, tides and ocean currents; deploy a number of application models, conduct pilot tests to evaluate the effectiveness. To undertake technological research, formulate a number of production pilot projects and encourage the use of hydrogen energy in line with the general trend of the world. In addition, the Resolution prioritizes the development of renewable energy in line with the ability to ensure system safety with reasonable electricity costs and encourage the development of rooftop and surface solar power. To develop groundbreaking support policies and mechanisms for offshore wind power development in association with the implementation of the Vietnam’s Sea Strategy.
With advantages and priority policies for renewable energy development as above, Vietnam hopes that more international investors will invest and set up company in Viet Nam in renewable energy.
Conditions of Setting up Import and Export Company in Vietnam
Conditions of Setting up Import and Export Company in Vietnam
If a foreign-invested company wishes to apply for export/import or distribution rights, it has to submit the below listed documentation to the competent authorities:
1. Export/Import rights:
The foreign investors who invest to exercise right to export, right to import must follow procedures for grant of investment certificates; the foreign-invested enterprises in Vietnam which supplement the operational business activities for exercise of right to export, right to import must follow procedures for adjustment of investment certificates:
a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;
b. A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities;
c. Documents proving the financial capability and experiences of investor in exercise of right to export and right to import;
d. Vouchers of tax agencies on performing the enterprise income tax liability within two consecutive years in the case the foreign-invested enterprises wish to supplement the exercise of right to export, right to import.
2. Trading activities/Distribution
The foreign investors with investment projects on exercise of goods trading and directly related activities in association with the setting up of enterprises must follow procedures for grant of investment certificates.
a. A dossier comprises:
i) Dossier of verification for grant of investment certificate as prescribed by law on investment;
ii) A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities according to the form MD-6 promulgated together with this Circular;
iii) Documents proving the financial capability and experiences of investor in exercise of business operation of goods trading and directly related activities.
b. After having acceptance opinion of the Ministry of Industry and Trade, the competent state agencies shall grant investment certificate. The investment certificate shall concurrently be business license. Although not stipulated in the law, before granting an investment certificate with these business lines, the authorities usually consider application on case by case basis, taking into account market stability, population density in the area where the company is located and the consistency of the investment project with the master plan of the said area.
For these business lines the competent authorities must obtain the approval of the Ministry of Industry and Trade before issuing the investment certificate.
3. License for setting up retail establishments
If a foreign-invested enterprise wishes to set up a retail establishment in addition to the first retail establishment, it must follow procedures for license for setting up retail establishment, a dossier comprises:
a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;
b. Dossier of license for setting up retail establishments, comprising:
i) Application for license to set up retail establishment;
ii) A written explanation about the satisfaction of conditions of setting retail establishments as per the law;
iii) Document of provincial People’s Committee that approves the working result of the Council of checking the economic demand to consider the conformity of setting up of a retail establishment in addition to the first retail establishment.
iv) Report on exercise of goods trading and directly related activities of licensed projects;
v)Vouchers, which are issued by tax agencies, about exercise of enterprise income tax liability in two adjacent years.
After having acceptance of the Ministry of Industry and Trade, the competent state agency shall grant the license for the setting up of retail establishments.
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 Vietnam. We assist clients needing legal service in obtaining investment certificate, business registration certificate, or other licensing procedures.
What Important Step-by-Step Guide to Establish Company in Vietnam?
When foreign investors invest in Vietnam, they could establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company, etc. with specific steps are as follows:
How to establish company in Vietnam?
Step 1: Register the investment project
Investors submit an investment project registration file to the Business Registration office of the province or city or the management board of an industrial zone, an export processing zone or a high-tech zone for the approval of an investment project during the period within 15 days (without time for clarification).
Step 2: Apply for Certificate of investment registration
After approval of the investment project, investors submit a valid record to the Department of Planning and Investment within 10 days to apply for a business registration certificate.
Step 3: Apply for the certificate of business registration
After obtaining the business registration certificate, the investor shall submit the application for enterprise registration certificate to the enterprise registration office within 3 days.
Step 4: Publish the content of the business registration
After being granted the certificate of enterprise registration, the investor shall disclose information about the enterprise on the national enterprise registration portal within 30 days, including the following information:
i, Business lines;
ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.
Step 5: Registered business stamp
The enterprise has the right to decide on the form, quantity and contents of the stamp of the enterprise. The content of the stamp must show the following information:
-Company’s name;
-Business code.
After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.
Step 6: Notice of use of stamp:
After having stamp made, investors submit notices on use of stamp forms to the Investment registration agency. After receiving the record, the Investment registration agency issues a receipt for the enterprise, publishes the notice of the enterprise on the National Business Information Portal and issues a notice of the posting, stamp samples of enterprises, branches and representative offices for enterprises.
Step 7: Open bank account:
Investors need to open two types of bank accounts, namely the investment capital account to receive the investment amount and the transaction account for conducting daily transaction in Vietnam.
Step 8: The post licensing procedures:
For the conditional business lines:
Investors investing in conditional businesses lines as regulated in Appendix 4 of the Investment Law 2014 must apply certificate of business qualification, practicing certificates, professional liability insurance, legal capital requirements, etc. before conducting business in Vietnam.
With highly professional staff and great experience in foreign investment, ANT Lawyers would like to support you in establishing company in Vietnam.
ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
Properly used and promoted, a Trademark may become the most valuable asset of a business. Trademarks such as Coca Cola, HP, Canon, Nike and Adidas serve as an indication of origin of the goods as well as an indication of quality.
It is also essential to obtain trademark registration for the business name/trade name under the Trademarks Act. Registration of a company or business name under the Companies Act does not in itself give protection against others who might commence using identical or similar marks.
Use of TM, SM and ® symbols
'TM' stands for Trademark and 'SM' stands for Servicemark. The use of TM and SM symbols notifies the public that the company is claiming exclusive ownership of the trademark and can generally be used by one who has filed a trademark application.
The ® symbol, can be used only once the trademark is registered and the registration certificate is issued. Also, you may use the registration symbol only in connection with the goods and/or services in respect of which the trademark is registered.
If you're looking for affordable Trademark attorneys in Vietnam, check out ANT Lawyers was established to meet these needs by providing fast, effective and economical solutions. Hope that clears things up a bit. Feel free to message me directly to chat further about any other IP questions that you face.
What are Forms of Arbitration Agreement under Vietnam Laws?
Under Article 16 of Vietnam Law on Commercial Arbitration, forms of arbitration agreement resolving disputes are in written form. In particular:
Arbitration Lawyers in Vietnam
An arbitration agreement may be made in the form of an arbitral clause in a contract or in the form of a separate agreement.
An arbitration agreement must be in writing. The following forms of agreement may also be regarded as written form:
1.Agreement made through communication between the parties by telegram, fax, telex, email or other forms provided for by law;
2.Agreement made through exchange of written information between the parties;
3.Agreement recorded in writing by a lawyer, notary public or competent institution at the request of the parties:
4.In their transactions, the parties make reference to a document such as a contract, document, company charter or other similar documents which contains an arbitration agreement;
5.Agreement made through exchange of petitions and self-defense statements which reflect the existence of an agreement proposed by a party and not denied by the other party.
In case multiple arbitration agreements are reached on the same dispute, the latest lawful agreement shall apply.
If the contents of an arbitration agreement are not clear or could be understood in more than one way, regulations of the Civil Code shall apply.
When there is a handover of rights and obligations under a transaction or contract which contains a lawful arbitration agreement, such agreement is still applicable to the transferee and the transferor, unless otherwise agreed by the parties concerned.
Multiple legal relationships to resolve the same case shall be combined if the parties agree to combine multiple legal relationships to resolve the same case, or the arbitration rules allow for combination of multiple legal relationships to resolve the same case.
Arbitration lawyers in Vietnam at ANT Lawyers - Law firm in Vietnam with accreditation in national and international arbitration practice could help providing legal advice in disputed matters, and guide the clients throughout the process. The arbitration lawyers could also advise the clients on various matters from choice of arbitrator, choice of arbitration rules, ad-hoc or institutional arbitration, place of arbitration, enforcement of arbitral award.
Dispute Resolution in Vietnam Through Arbitration
Dispute resolution methods are litigation, negotiation, mediation and arbitration. Handing disputes requires litigation dispute law firm in Vietnam with dispute lawyers in Vietnam having experience and knowledge to provide resolutions to complex cross-border issues, commercial and civil disputes.
In the current business environment, most business agreements could contain a clause stipulating that disputes arisen must be resolved in arbitration. For a dispute to be referred to arbitration, there must be a valid arbitration agreement in writing, either as an arbitration clause within a contract or a separate agreement. If the agreement is included within the context of a contract, the arbitration clause is considered independent, and any modification, extension, or termination of the contract does not affect the validity of the arbitration clause. Vietnamese law allows for a written arbitration agreement to take the form in any written form, so long as the writing clearly indicates the parties’ intent to resolve any dispute via arbitration. If a dispute falls within the scope of a valid arbitration agreement, but a party attempts to initiate court proceedings, the residing court does not have jurisdiction over the matter, and must drop the case. Moreover, an arbitration agreement does not have to stipulate specific dispute matters and/or the arbitration organization authorized to resolve disputes without supplemental agreement. Even if there is a valid arbitration agreement, Vietnamese Arbitration Law stipulates that in order for a dispute to go to arbitration, it must also fit into one of three categories:
(1) disputes arising from “commercial activities”;
(2) disputes where at least one party is engaged in commercial activities;
(3) other disputes where the law stipulates that arbitration is a permissible means of resolution.
In category (1), the term “commercial activity” is defined in Commercial Law No. 36-2005-QH11 (31 December 2005) as “activity for profit-making purposes comprising the purchase and sale of goods, provision of services, investment, commercial enhancement, and other activities for profit-making purposes.” The types of disputes that often fall into the second category are noncommercial disputes, such as civil disputes, where at least one party to the dispute is engaged in commercial activities. However, this category does not apply in disputes between a good/service provider and a consumer. In this case, the law allows the party to choose between litigation and arbitration. Even the agreement includes a standard arbitration clause in the supply of goods or services contract, the dispute may not be arbitrated without the consumer’s consent. The final category of disputes permissible for arbitration gives legislators discretion to expand or maintain the types of disputes resolved through arbitration. An example of a category (3) dispute is a dispute arising from investment activities governed by the Law on Investment.
Arbitration has become an extremely popular method of dispute resolution, as many businesses prefer it over the high costs of litigation.
ANT Lawyers in a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
Patent Registration under PCT Procedure in Vietnam
Patent Registration under PCT Procedure
Vietnam joined in Patent Cooperation Treaty (PCT) on March 10th 1993 and originations, individuals can register international patent as provided in PCT by filling registration application at National Office of Intellectual Property of Vietnam (NOIP). NOIP has responsibility to examine and handle the application as provided in PCT.
-03 English written declaration for registration PCT application originating in Vietnam;
-02 Written descriptions including images or drawings (if any) ;
-02 written request of invention protection;
-01 Original Power of Attorney;
-Other related document (if only).
-International Patent registration originating in Vietnam under PCT
Receipt of applications:A registration application of an invention shall be filed in Vietnam, including protection claims in any of the Member Countries of the PCT Treaty (hereinafter referred to as the PCT application originating from Vietnam). The application shall be submitted directly or by mail to the NOIP or the International Bureau of the World Intellectual Property Organization (hereinafter referred to as the International Bureau)
The international search process: This process shall be conducted at competent authorities (National or regional patent office that meets the requirements set by PCT and be designated by PCT General Assembly). National patent office with PCT application originating in Vietnam is: Intellectual Property office of Australia, Austria, the Russian Federation, Sweden, Korea and the European Patent Office.
Publication of the international application: PCT application originating in Vietnam shall be posted at PCT Gazette.
The international preliminary examination: Conducted by the international preliminary examining authority as provided in PCT. The purpose of examination is to give a preliminary and non – binding opinion whether the invention in the application meets the requirement protection or not. Examining authority shall make a preliminary examining report and send to International Bureau.
National or regional phase: international application shall be examined form and content as regulation of normal patent registration in each nation.
Note:
Applicants must specify which countries they want the international application to take effect.
Each international application is subject to international search to find out the relevant technical status known to provide preliminary and non-compulsory claims on inventions that require novelty, creativity and usefulness. Therefore, the Contracting Party designated for patent protection is entitled to apply the standards of an invention under its domestic law in relation to the known state of the art and other conditions of competence. Patent shall be decided whether to be accepted for the protection based on the application.
If you are looking for experienced IP services in Vietnam to help you with your PCT Patent Application in Vietnam, you should visit ANTLawyers. Our Patent attorneys have experience with the PCT Patent process and will work closely with you as you apply for your PCT in Vietnam.
How to Close a Business in Vietnam
How to Close a Business in Vietnam?
All corporations, companies, partnerships, branch offices, representative offices and other business entities are legal entities in Vietnam which can only be dissolved through formal procedures.
The main thing to remember throughout the process is that the dissolving company, a branch office or a representative office, one should pay close attention to the involvement of all key stakeholders, i.e. the employees, customers, creditors, business partners and relevant authorities.
The following are key information to gather for thorough analysis
-Company size in terms of capital and number of employees?
-Enterprise’s business sector?
-Tax invoice usage declaration?
-Annual profit?
-Compliance with tax procedures?
-Administrative violations in the field of taxation?
-Any outstanding tax?
-Tax document filing records?
-Other tax matters?
II. What does the dissolution process involve?
Once an analysis has been through, the next procedures mostly deal with reporting and submitting the relevant documents to the various regulatories and tax authorities at each step of the process, terminating contracts, liquidating assets and settling liabilities, and general administrative work such as returning the corporate seal, registration certificates, and having the company’s name removed from the system of the license authorities.
III) How to prepare document to close a business in Vietnam?
1. Documents submitted to the licensing authority in Vietnam
-Liquidation notice of enterprise;
-Minutes of the meeting of Management Board/ Board of Directors decided on the dissolution of enterprises;
-The company’s decision on liquidation;
-Report on enterprise asset liquidation;
-The list of creditors and the paid debt;
-Documents evidencing that enterprise has fulfilled all of its tax;
-Confirmation on social insurance for employees after the dissolution decision;
-The seal and certificate of seal sample registration.
2. Documents submitted to the tax authority in Vietnam
-Liquidation notice of enterprise;
-Minutes of the meeting of Management Board/ Board of Directors decided on the dissolution of enterprises;
-The company’s decision on dissolution;
-Audit reports and tax settlements;
-The financial statements for the year to date the decision on dissolution;
-The company’s tax liabilities audited by tax authority;
-Verification of tax obligations of the enterprise.
Closing a business in Vietnam might be a lengthy process and more complicated than setting up a company in Vietnam. Sometimes, it is important to make a decision to exit and start a new venture. As a law firm in Vietnam, we do assist clients to close the business, exit the investment and deal with pending issues with licensing authorities including department of planning and investment, department of labour, tax bureau and others.
Having the right to conduct business activities and make profit are how a branch differs from a representative office in Vietnam. A branch depends on the foreign business entity that set-up the branch while a foreign owned company set-up in Vietnam exists by itself. The Vietnam Department of Industry and Trade will be approving the establishment of a branch office in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.
In particular, the branch of a foreign business entity in Vietnam (referred to as the “Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its licence for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the branch.
1. Rights of the Branch
-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.
-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.
-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.
-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.
-To remit profits abroad in accordance with the law of Vietnam.
-To have a seal bearing the name of the branch in accordance with the law of Vietnam.
-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
2. Requested Conditions for Establishment the Branch Office in Vietnam
A foreign company which has effectiveness business activities will be allowed to open the branch office in Vietnam if this company has real demand to open the market in Vietnam and meet some conditions as below:
-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;
The issuance of the Certificate of Branch will be implemented by the Department of Industry and Trade Department after the foreign company meets all of conditions as Vietnam legal requirements.
The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.
With highly professional staff and great experience in investment in Vietnam, ANT Lawyers – English speaking law firm in Vietnam would like to support you to set up the branch office in Vietnam
Licensing of industrial property subject in general or of trademark in specific is regulated in Intellectual Property law. Accordingly, in trademark licensing, the owner (licensor) grants permission to another (licensee) to use that trademark on mutually agreed terms and conditions. The must be established in written form to avoid dispute in trademark licensing in Vietnam.
Trademark licensing in Vietnam
Accordingly, licensing of trademark includes the following types: exclusive contract, non-exclusive contract; sub-license contract.
Firstly, exclusive contract means a contract under which, within the licensing scope and term, the licensee shall have the exclusive right to use the licensed trademark while the licensor may neither enter into any trademark license contract with any third party nor, without permission from the licensee, use such trademark.
Secondly, non-exclusive contract means a contract under which, within the licensing scope and term, the licensor shall still have the right to use the trademark and to enter into a non-exclusive trademark license contract with others.
Thirdly, trademark sub-license contract means a contract under which the licensor is a licensee of the right to use such trademark pursuant to another contract.
In any type of the contracts, it is required to have the following contents: full names and addresses of the licensor and of the licensee; grounds for licensing; contract type; licensing scope including limitations on use right and territorial limitations; contract term; licensing price; rights and obligations of the licensor and of the licensee.
Besides the above contents, the parties also need to take note on the validity of this contract. Different from assignment contract of trademark when it is required to register at National office of Intellectual Property of Vietnam to take effect, the licensing contract of trademark does not required this kind of registration for taking effect. Licensing contract shall automatically be terminated upon the termination of the licensor’s trademark right.
If Client needs any more information or request for legal advice regarding licensing of trademark or dispute in trademark licensing contract, our Trademark attorneys in Vietnam at ANT Lawyers will be of help.
ANT Lawyers – Law firm in Vietnam will always follow up with authorities for legal update on matters relevant to trademarks to update clients on regular basis.
How Guardianship of Minors is Regulated in Vietnam Laws?
Guardianship under Vietnam laws aims to protect the legitimate rights and interests of groups that are not yet fully developed physically or mentally. There are two forms of guardianship prescribed by law: natural guardians and guardians appointed by a competent state agency, in which natural guardians can only be individuals. This type of guardianship is defined by the provisions of the guardian, the ward, and the rights and obligations of the guardian towards the ward and their property. There are potential disputes in finance or caring responsibility among people having responsibility of guardship therefore it is important to understand the order of natural guardians when life event happens that trigger the need for guardianship. Hence, having the advice form civil or marriage and family dispute lawyers in Vietnam with understanding of the matters is very important.
Minors (a person under 18 years old) who have lost their parents are one of the subjects of guardianship under Vietnamese law. They are considered vulnerable in the society and need to be cared for and protected. Therefore, to avoid the case that these people have no guardians when their parents suddenly die, civil law has provided a provision to determine the order of natural guardians based on their blood relationship as follows: (i) the eldest brother or sister shall be the guardian of the ward; if the eldest brother or sister fails to satisfy all requirements for acting as a guardian, the next eldest brother or sister shall be the guardian, unless otherwise agreed that another biological brother or sister shall be the guardian; (ii) the paternal grandfather, grandmother or the maternal grandfather, grandmother shall be the guardian or these persons agree to appoint one or several of them as guardians; (iii) a biological uncle or aunt of the ward shall be the guardian.
Thus, in the same order as above, the natural guardian of a minor will always be specifically identified and this person must ensure that the guardian’s conditions are fully met, including: having full legal capacity; having good ethics, and necessary means to exercise rights and fulfill obligations of a guardian; not being a person facing criminal prosecution or a person who has been convicted but his/her criminal record has been not expunged for a deliberate crime of violation of life, health, honor, dignity or property of another person; and not being a person having parental rights to minor child restricted by a Court.
In case a minor does not have a natural guardian, the commune-level People’s Committee of the place where they reside shall have to appoint a guardian. In addition, if there is a dispute between the natural guardians about the guardian or a dispute over the appointment of the guardian, the Court will appoint the guardian.
Accordingly, when a minor loses their parents, according to the law, their biological brother or sister will be their natural guardian. However, if this person does not have a biological brother or sister, the paternal grandparents and maternal grandparents will be the natural guardians of this person, and both of them have equal rights in guardianship for their grandchildren minors under the provisions of the Civil Code the Law on Marriage and Family as follows: “Paternal grandparents and maternal grandparents have the right and obligation to look after, care for and educate their grandchildren, lead an exemplary life and set a good example for grandchildren; in case a minor grandchild or an adult grandchild loses his/her civil act capacity or is unable to work and has no property to support himself or herself without a caregiver as prescribed in Article 105 of this Law, paternal grandparents, and maternal grandparents have the duty to raise their grandchildren.”
The law always respects the voluntary agreement of the involved parties in determining guardianship for minors who have lost their parents. Paternal grandparents and maternal grandparents may agree to appoint one or several of them as guardians for their minor grandchildren according to regulations. In case the two parties cannot agree on a guardian for the grandchild, this is another type of marriage and family dispute. Therefore, pursuant to the Civil Procedure Code, one of the parties can make an application to the competent district court to request the court to settle the case according to civil procedure. The court will base on the facts of the case, the conditions of the guardianship of the parties, the emotional relationship between the guardian and the ward, and the capability to ensure the best physical and mental development to decide to assign the child to whom to act as guardian. In addition, if the ward is six years old or older, the Court will have to consider their wishes during the dispute resolution process to make a decision to appoint the most suitable guardian.
In summary, Vietnam law has clear and specific provisions to determine natural guardians for minors who have lost their parents. In addition, the law also stipulates that the determination of guardians may involve the intervention of a competent state agency, namely the People’s Committee, and the Court in the event of a dispute between guardians to appoint a guardian equitably. All these regulations ensure that minors are cared for and nurtured in the best conditions for future development.
ANT Lawyers, a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to marriage and family to update clients on regular basis.
Procedures for Applying the Enterprise Registration Certificate in Vietnam
What Are the Procedures for Applying the Enterprise Registration Certificate for Foreign Investor in Vietnam?
According to Viet Nam’s commitments under the framework of the WTO and EVFTA agreement, foreign investors are allowed to establish foreign-invested enterprises to conduct business activities in Vietnam. However, the order and procedures for establishing enterprises for foreign investors must comply with the provisions of Vietnamese law.
For investment registration, foreign investors must have an investment project, except in the case of establishing a creative start-up small and medium-sized enterprise and an innovative start-up investment fund under the law on business support small and medium. The industries and trades in the investment project must not be in the industries and trades that prevent the access the market for foreign investors or the industries and trades being banned from doing business under the Law on Investment 2020. After that, investors need to prepare a dossier for issuance of the Investment Registration Certificate to be submitted to the Department of Planning and Investment where the investor implements the investment project.
Dossier for applying for the investment registration certificate includes: an application for issuance of the investment certificate; the Investor’s financial capacity report is prepared and responsible by the Investor; an explanation of the ability to meet the conditions that the investment project must satisfy according to the provisions of law for the project in the field of conditional investment; the economic – technical explanation includes the following main contents: objectives, scale, investment location, investment capital, project implementation progress, land use demand, technological solutions and solutions environmental legislation; draft of the company’s charter with full signatures of the legal representative, members or authorized representatives; members list; documents for verifying the investor’s legal status; documents for verifying financial ability. The investment registration authority repond to the application for the Investment Registration Certificate to the investor within 15 days from the date of receipt of a valid dossier.
After being granted the Investment Registration Certificate, the foreign investor shall carry out the procedures to be granted the Enterprise Registration Certificate. In this step, the legal conditions are not as strict and complicated as the first step, but it also requires investors to prepare a number of papers and documents. Depending on the type of enterprise and the content of registration, the business registration subject needs to submit different types of documents under the requirements of the law. Investors can submit the dossier in person at the Business Registration Office or submit it online via the electronic network. The Business Registration Office shall issue the Enterprise Registration Certificate within 03 working days from the date of receipt of a valid dossier. In case the dossier is invalid or the name of the enterprise requested for registration is not in accordance with regulations, the Business Registration Office must notify in writing the contents that need to be amended, supplemented to the enterprise founder or the enterprise within 03 working days from the date of receipt of the dossier.
It can be remarked that the two-step process creates obstacles for many foreign investors when establishing an enterprise in Vietnam. It has been suggested the legislator to consider shortening the order and reducing the number of documents that need to be submitted, and at the same time, promote the online procedures to save time and human resources. For efficiency in preparing documents, the client could engage a law firm in Vietnam to assist carrying out procedures of setting up company and applying for investment and business registration certificate in Vietnam.
A trademark has to have one basic feature that is it should be unique and create a brand identity for a product. So if a trademark is such that does not create any brand for a product can't be trademarked. A trademark should not be a conflicting trademarks with others. It means the trademarks should not create confusion between two trademarks.
-Generic words can't be trademarked. For example you can't trademark the words like TV, Fridge, scooter, car etc.
-The names of the cities and countries can not be trademarked.
-The names of Gods and Godesses and the names of religious books can not be trademarked. For example you can't trademark *Lord Ram* or *Ramayana*
-Surnames can not be trademarked under normal circumstances. For Example you can't trademark *Sharma*
-Names of Constitutional Posts or Government posts can't be trademarked. For examples you can't trademark *Prime Minister of Vietnam
-Words which denote illegal or Immoral acts can't be trademarked. For example you can't trademark *Let's cheat* or *Let's grope*
-Words which are prohibited under names and emblems act can't be trademarked. For example, you can't trademark the official sign of Government of Vietnam.
Hope this helps!
Source: Quora
ANT Lawyers - IP services in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for Trademark registration services in Vietnam via email ant@antlawyers.vn or call our office at +84 28 730 86 529.
How to protect your trademark in Vietnam?
How to protect your trademark in Vietnam?
In Vietnam, trademark registration is the first step in obtaining trademark protection. A trademark opposition may be filed to prevent a mark application that is pending from being granted. Litigation is the last option for resolving disputes involving trademark protection in Vietnam.
A trademark is a sign that helps separate one company's goods or services from those of others. Products and services trademarks play a crucial role in the expansion of the business, alongside patents and industrial designs. A trademark connects a business and its clientele. Customers will be more likely to use goods or services if the trademark is strong. The infringement of a trademark is inevitable when the trademark is well-known and has significant economic benefits from the sale of goods or services.
The owner of a trademark has two options for registration: either directly register a trademark in Vietnam by filling out a registration application with the Vietnam NOIP, or use Madrid's system to seek protection in Vietnam. In accordance with Vietnam's intellectual property law, the trademark owner must prepare, apply for registration, and pay a fee for the first option. If a trademark needs to be protected in multiple countries, such as Vietnam, the owner can register it using Madrid's system.
The trademark owner must assess the degree of infringement and damage in each location where a trademark violation occurs in order to select appropriate solutions. In the beginning, the owner of a trademark may protect themselves by requiring the trademark violator to stop their violations, apologise, and make amends. Owners of trademarks have the right to seek compensation in the event of damage. If negotiations or mediation fail, the trademark owner can use a settlement mechanism or submit a denunciation application to the Vietnam NOIP and ask the appropriate state agencies to handle acts of infringement. Acts of infringement may necessitate litigation. In general, civil litigation proceedings are more complex than arbitration proceedings. Civil litigation takes precedence when the trademark owner requires a court decision to end trademark infringement. In the remaining cases, arbitration is the better option because it is less expensive, takes less time to settle, and is more adaptable.
The client company's competitive advantage is heavily reliant on trademarks. Through trademark registration, oppositions, and other trademark protection resolutions in Vietnam, ANT Lawyers' IP service in Vietnam assists you in securing protection for these priceless intellectual assets.
Professional law firm in Vietnam
ANT Lawyers is a law firm in Vietnam with offices in Hanoi and Ho Chi Minh City. We are a Vietnam-based law firm that is a part of Prae Legal, a global network of 150 countries and five continents of law firms. We have developed relationships with lawyers from all over the world as a result of this network. ANT Lawyers are able to handle international cases involving foreigners because of this collaboration.
We focus on providing potential solutions that best meet the requirements of business and legal clients as a reputable law firm in Vietnam. We help customers achieve their goals while protecting their interests, minimizing risks, and following the law.
We offer corporate and individual clients from all industries a comprehensive array of contentious and non-contentious legal services. We are able to offer guidance on a wide range of topics, from setting precedent to strictly procedural matters, thanks to our knowledgeable and highly skilled staff.
As a consequence of this, our clients can rest assured that, regardless of the case or transaction, our lawyers at the law firm in Vietnam possess the expertise necessary to provide legal guidance and service that is relevant to the business world.
What is Business Registration Certificate in Vietnam?
What is Business Registration Certificate in Vietnam?
Business registration certificate is considered a legal document of an organization, which is a paper or electronic document that records information related to business registration that the Business Registration Authority grants to an enterprise.
According to the provisions of the Law on Enterprises, a business registration certificate must contain the following principal contents: Enterprise name and enterprise code; Address where the head office of the enterprise is located; Full name, contact address, nationality, number of legal papers of the individual, for the legal representative of limited liability companies and joint stock companies; for general partners of a partnership company; for business owners of private enterprises. Full name, contact address, nationality, number of legal papers of the individual, for members being an individual; name, enterprise identification number and head office address of the member being an organization, for limited liability companies; Charter capital for companies, investment capital for private enterprises.
In which, the name of the enterprise must be a Vietnamese name consisting of two elements: type of business and proper name. Currently, Vietnam recognizes four types of enterprises: limited liability companies, joint stock companies, partnerships and private enterprises. The enterprise’s proper name can be written with the letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols. The enterprise code element recorded on the Certificate of Business Registration is a series of numbers created by the National Information System on Business Registration, issued to an enterprise upon its establishment, and recorded on the Certificate of Business Registration. Each business has only one unique code and that code will not be reused for other businesses.
The business registration can be carried out directly at the Vietnam Business Registration Office or through the postal service or through the electronic information network. If choosing the form of enterprise registration via electronic information network, the enterprise founder shall submit an application at the National Enterprise Registration Portal. Business registration documents will be presented in electronic form and have the same legal value as paper business registration documents.
The business registration agency is responsible for reviewing the validity of the enterprise registration dossier and granting the Business registration certificate within 03 working days from the date of receipt of the application. In case the application is not sufficient or not prepared according to the regulations, the business registration agency must notify in writing the contents that need to be amended and supplemented to the enterprise founder. If the business registration authority refuses to register the enterprise, it must notify in writing the enterprise founder and clearly state the reasons. The company could prepare its own submissions or hire a Vietnam business lawyers to assist with the submissions.
With highly professional staff and great experience in foreign investment, ANT Lawyers could help to support you to Obtain Business Registration Certificate in Vietnam.
Source ANT Lawyers: https://antlawyers.vn/library/what-is-business-registration-certificate-in-vietnam.html
The Ministry of Industry and Trade to Review the New Exporter in case Anti-dumping AD07
The Ministry of Industry and Trade to Review the New Exporter in case Anti-dumping AD07
On August 19, 2022, the Trade Remedies Authority of Vietnam received a dossier requesting for reviewing of the anti-dumping taxes applied to new export enterprises from SRF Industries (Thailand) Limited (SRF Thailand) Company in the AD07 case.
Based on the request, the Department of Trade and Industry conducted an assessment and sent out written requests to supplement and clarify some information and content on the basis for reviewing the new exporter enterprises.
On October 17, 2022, the Trade Remedies Authority of Vietnam issued an Official dispatch No 820/PVTM-P1 confirming the complete and valid dossier.
Under the provisions of Clause 3, Article 82 of the Law on Foreign Trade Management, dated November 14, 2022, the Ministry of Industry and Trade issued Decision No. 2400/QD-BCT on conducting a review of new exporters in applying anti-dumping measures on certain plastic products and plastic products made from propylene which is the production of polymers originating from Malaysia, Thailand and the People’s Republic of China (NR01.AD07).
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.
The Ministry of Industry and Trade Applies Anti-dumping Measures to a Table and Chair Products from China
The Ministry of Industry and Trade Applies Anti-dumping Measures to a Table and Chair Products from China
On February 13th, 2023, the Ministry of Industry and Trade issued Decision No. 235/QD-BCT on the application of official anti-dumping measures to a number of table and chair products from the People’s Republic of China (China) and terminated the investigation to apply anti-dumping measures on some furniture products from Malaysia. Accordingly, the official anti-dumping tax rate applied to the investigated goods originating from China is 21.4% for chair products and 35.2% for table products.
During the investigation of the case, in accordance with the provisions of the Law on Foreign Trade Management, the Ministry of Industry and Trade coordinated with relevant units to carefully review and evaluate the impact of the dumping of imported goods on the activities of the domestic industry, the level of dumping of the manufacturing and exporting enterprises of Malaysia and China.
The investigation results show that, although dumping behavior exists, because the rate of imported goods under investigation from Malaysia is insignificant (less than 3%), therefore, according to the provisions of the Law on Foreign Trade Management, the Ministry of Industry and Trade decided to terminate the investigation and not apply anti-dumping measures to some table and chair products from Malaysia.
For the investigated goods from China, the level of dumping was determined from 21.4% to 35.2%, and the import volume of the investigated goods increased both in absoluteness and comparative to the total domestic consumption and similar output of the domestic industry, which is the significant cause of significant damage to the domestic industry.
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 their development to update clients on regular basis.
Source ANT Lawyers: https://antlawyers.vn/library/the-ministry-of-industry-and-trade-applies-anti-dumping-measures-to-a-table-and-chair-products-from-china.html
How Vietnam Has Simplified Procedures to Register Business in Vietnam?
By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.
As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.
To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall then apply for Enterprise Registration Certificate.
To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.
After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.
The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:
-The registered business lines are not in the prohibited business sectors;
-The business’s name is set in accordance with the provisions of law;
-Having a head office as prescribed by law;
-Having a valid business registration dossier as prescribed by law;
-Fully paying the enterprise registration fee as prescribed by law
Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.
ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.
ANT Lawyers is Vietnam exclusive member of Prae Legal, an international law firm network, providing full ranges of legal services
Prae Legal Network provides clients with access to global legal resources through its vast network of well-established 242 law offices in trade centers in 129 countries.
Our respectable and influential professionals are experienced in all fields of law. We are ready to provide legal solutions to companies and people all around the world for their legal needs. We can help when you would do business transactions in the most challenging parts of the world.
Prae Legal provides comprehensive legal expertise in almost all major practice and industry areas. We have general and subject specific legal expertise that could be applied to different needs of each industry. An industry will be interested in legal developments affecting its own business and legal environment.
Vietnam International Law Firm
Together with global law firm partners, ANT Lawyers has the capability to provide in depth legal assistance in the following practice areas:
-Agricultural & Agribusiness
-Antitrust, Competition and Trade Group
-Automotive
-Aviation
-Banking and Financial Services
-Business Crimes and Compliance
-Capital Markets
-Construction and Infrastructure
-Corporate Organizations and Securities
-Employee Benefits and Pensions
-Employment and Labor Law
-Energy and Natural Resources
-Environmental
-Government Affairs
-Health Care Industries
-Immigration
-Insolvency, Bankruptcy and Restructuring
-Insurance and Reinsurance
-Intellectual Property
-Life Sciences
-Litigation, Arbitration and Dispute Resolution
-Media, Entertainment and Sports
-Mergers and Acquisitions
-Private Equity
-Project Finance
-Real Estate
-Tax
-Technology, Outsourcing and Privacy
-Telecommunications
-Products Liability and Toxic Tort
-Trademarks, Copyrights, Trade Secrets and Unfair Competition
-Product Liability and Product Safety
-Cross-Border Transactions
-E-Commerce & Technology
-Product Liability and Product Safety
ANT Lawyers is a law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City to provide convenient access to our clients. Please contact us via email ant@antlawyers.vn or call our office at +84 28 730 86 529 for legal service in Vietnam
It typically takes a significant amount of time and effort on the part of your business to win customers' confidence in your products and trademark. However, if there is another trademark for the same goods that is identical to yours, it will likely cause customers to make mistakes or become confused, resulting in a number of negative effects for your business, including a decrease in sales, a loss of reputation, and the ability to distinguish yourself.
In fact, after partnering with domestic businesses to distribute or sell goods, many international businesses discover that their trademarks are stolen by partners who register their trademarks for intellectual property protection in national offices. It is simple for trademark thieves to steal trademarks because each nation protects trademarks differently.
You should ask the Vietnam Intellectual Property Authority to cancel the trademark that was used in violation of your rights and benefits. ANT Lawyers would like to assist you in canceling against a trademark in Vietnam in the following ways because they have excellent IP experience in Vietnam and a highly professional staff.
Cancellation against of trademark in Vietnam
A certificate of trademark registration may be revoked entirely or partially at the request of a third party in accordance with Article 96 of the IP Law of Vietnam.
In the specified circumstances, the applicant may submit a written request to the National Office of Intellectual Property (NOIP) to cancel protection titles subject to payment of fees and charges.
To request cancellation against of trademark in Vietnam due to other legal reasons: the period for lodging such a request is within 5 years as from the granting date.
The case for cancellation against of trademark in Vietnam
Any third party may request that a certificate of trademark registration be revoked entirely or partially in the following circumstances:
The registration applicant does not possess the right to register an invention, industrial design, layout-design, or mark, nor has this right been granted to them;
At the time the protection title is granted, the subject matter of industrial property does not meet the protection conditions.
Required documents
Proofs (if any);
Power of attorney;
Written justification of the request, including relevant documents and clearly stating the protection title's serial number, reason, and contents for terminating or canceling a portion or the entire protection title.
Time and procedures for cancellation against of trademark in Vietnam
In the event that a third party makes a request to have their trademark protection title revoked, the NOIP is required to provide the protection title holder with written notice of the third party's opinions and set a response deadline of two months from the date of notification.
The NOIP must decide whether to cancel all or a portion of the protection title or notify the parties of its refusal to cancel the trademark protection title after taking the opinions of the parties into consideration.
The requester or a party involved may file a complaint regarding the decision or the relevant notice if they disagree with the NOIP's handling of the request for cancellation of the trademark protection title
Within two months of its signing, a decision to cancel a trademark protection title must be published in the Industrial Property Official Gazette and added to the National Register of Industrial Property.
ANT Lawyers - IP Services in Vietnam firm that regularly informs clients of legal developments pertaining to trademarks by following up with authorities.
How Bank Guarantee Letter Could Help Secure a Transaction and Risks Involved?
How Bank Guarantee Letter Could Help Secure a Transaction and Risks Involved?
In the process of performing civil transactions, there is a need to bind the performance of obligations of the parties hence secured transaction is needed and guarantee is one of the commonly used methods to secure the performance of obligations in business and commercial activities. The party that provides guarantee is normally a commercial bank and bank guarantee is normally a loan service. In reality, there are potentially many risks involved in the guarantee transaction through issuing of bank guarantee letter which needs the attention of dispute lawyers in banking and finance to provide legal advice throughout the process.
Bank guarantee or guarantee commitment is a document issued by the guarantor or counter-guarantee or the guarantee-confirming party in the form of a Letter of Guarantee or a Guarantee Contract. Thus, a letter of bank guarantee is understood as a written commitment of the bank to the guarantee recipient that the bank will perform financial obligations on behalf of the guaranteed party when the guaranteed party fails to perform or not fulfilling the obligations committed to the guarantee recipient. In case the parties choose the form of counter-guarantee or guarantee confirmation, the letter of guarantee shall include the written commitment of the counter-guarantee issuing party to the guarantee, or of the guarantee-confirmation issuing party to the obligee.
When a guarantee obligation arises, the obligee must send a written request for the performance of the guarantee obligation, enclosed with the documents agreed upon in the guarantee commitment, to the guarantee-executing bank. The request for performance of guarantee obligations is considered valid when the bank receives it within the working time of the bank and within the valid guarantee commitment period. In case the request for performance of the guarantee obligation is sent in the form of a registered letter via the public postal network, the date the guarantor receives the request is the date of signing and receiving the registered letter.
Within 5 working days from the date the guarantor bank receives a valid written request for performance of the guarantee obligation, the guarantor shall be responsible for properly and fully performing the promised guarantee obligation for the with the guarantor. In case the guarantor bank refuses to perform the guarantee obligation, within 5 working days after receiving the request to perform the guarantee obligation, the bank must reply in writing clearly stating the reason for the refusal. In case of payment in foreign currency, credit institutions, foreign bank branches shall debit that foreign-currency sum to the mandatory lending account.
Credit institutions, or foreign bank branches, shall agree on the guarantee-issuing fee amount paid to customers. In case of a counter guarantee or guarantee confirmation, the guarantee-issuing fee amount shall be agreed upon by parties on the basis of the guarantee-issuing fee amount approved by the obligor. If the guarantee currency is foreign one, parties shall agree on collecting the guarantee-issuing fee by accepting that foreign currency or converting that foreign currency into Vietnam at the sell rate defined on the fee collection or fee collection notification date.
Disputes could arise from many situations, for example, there is a case of issuing a false letter of guarantee because an individual in the bank violates the law, or the bank officer signs a letter of guarantee without proper authorization from the legal representative of the bank, or letter of guarantee is in violation of form according to the regulation of state bank. In addition, if a conditional letter of bank guarantee is applicable, a dispute may arise from an understanding of whether or not the conditions for the guarantee have been met. In many cases, there might need to be a lawsuit to determine the conditions fulfilment of the guarantee and such might be lengthy and costly. Therefore, the parties involved in the guarantee transaction might need to consult a lawyer with expertise in banking disputes to check the legitimacy and validity of the letter of bank guarantee and the possibility to be guaranteed when the conditions are met.
ANT Lawyers – As a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to banking and finance to update clients on regular basis.
Source ANT Lawyers: https://antlawyers.vn/library/how-bank-guarantee-letter-could-help-secure-a-transaction-and-risks-involved.html
How to Start a Business in Vietnam?
How to Start a Business in Vietnam?
In recent years, Vietnam has become an attractive destination for foreign investment thanks to its advantages of security, political stability, and favorable geographical position to trade with the world. This is both the connection center of the region and the gateway to penetrate the economies in the western region of the Indochina Peninsula. In addition, the Vietnam government has increasingly been offering more preferential policies to create favorable conditions for foreign investors to start doing business in Vietnam.
To start a business in Vietnam, investors first need to choose for themselves an appropriate type of business based on the number of capital contributors, the amount of capital contributed, and the business’s purse. According to the provisions of Vietnam law, foreign individuals and organizations can establish a limited liability company or a joint stock company or a partnership or a private enterprise.
The next issue that needs to be considered is the business line. In order for the company to be able to operate, the company must register the appropriate business lines, related to business activities. If the selected line of business does not require conditions, the enterprise can go into operation after the establishment of the company. This is considered non-conditional business area which most of company would do. However, if the investor chooses a conditional business line to do business, the enterprise must meet the necessary requirements, apply for a business license as prescribed, and then go into operation. This is considered conditional investment area where there are some restrictions being required license, minimum charter capital, foreign ownership ratio…
Investors also need to choose a location for their business, which is legally allowed to conduct business activities. The company address must be located in the territory of Vietnam, and comply with requirement corresponding to purpose of business i.e. company address can not be in an apartment building or a dormitory for living purposes only; factory location has to be at proper zone for industrial purpose…
In order to serve the management of the State and facilitate business activities, newly established businesses need to have their own name and this proper name must be unique, not be the same or similar to previously registered businesses. Enterprises are not allowed to use the names of functional agencies, state management agencies to name the company. The name of the business must include the type of company and proper name. To avoid duplication with other companies, businesses can use abbreviations or English names, but must ensure that the company name will not cause confusion, without adding prefixes, suffixes or cultural symbols in the name of the business.
The investors need to apply for an Investment Registration Certificate at a competent authority in Vietnam. This is a mandatory procedure for all projects that want to establish a new legal entity in Vietnam. The processing time for an investment certificate application is around 30 days depending on the specific project. After being granted an Investment Registration Certificate, foreign individuals and organizations need to prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment which would take around 7 days. Completing this procedure, the enterprise has the legal status according to the provisions of the Law on Enterprises of Vietnam.
From day one since commencing its operation, the company could by itself or hire professional to assist with monthly compliance service i.e., submit foreign labour reports, submit investment report, submit tax report, submit health and insurance reports to authorities to avoid encountering penalties.
ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or doing business in Vietnam.
Source ANT Lawyers : https://antlawyers.vn/library/how-to-start-a-business-in-vietnam.html
2023 Tax Filing Deadlines You Need to Know in Vietnam
2023 Tax Filing Deadlines You Need to Know in Vietnam
According to the provisions of Vietnam tax law, on monthly or quarterly companies will need to submit various types of tax reports and tax returns: License fees; Value added tax declaration; Personal income tax return; Corporate income tax finalization declaration. Knowing the deadlines for submitting tax reports and paying taxes on time not only helps companies proactively capture information and arrange for tax payment in accordance with state regulations, but also avoids many risks. Risk of penalties for violations in the field of tax laws occur if the declaration is filed late, or not filed. Company also could hire professional specializing in tax matters or tax lawyers for advice in the area of tax compliance in Vietnam to improve the efficiency and optimize business strategies.
What is deadline for filing Vietnam annual license fee?
Annual license fee is the amount the enterprise must pay annually based on the amount of charter capital stated on the certificate of business registration, and to be paid annually since the starting of the business. The company(except business households and business individuals) which has been newly established (including small and medium-sized enterprises converting from household businesses) or has established more dependent units, business locations has to file the license fee declaration dossiers no later than January 30th of the following the year of establishment or starting of business activities, production and business activities. In case the enterprise has a change in charter capital during the year, the enterprise shall submit the license fee declaration dossier no later than January 30th of the year following the year in which the changed information arises.
What is deadline for filing value added tax (VAT) in Vietnam?
This is an indirect tax, calculated based on the added value of goods and services that consumers have to pay when buying goods or services. The person who directly fulfills the tax payment obligation to the tax authority will be an enterprise or a production unit. The deadline for submitting VAT declaration dossiers is the 20th day of the month following the month in which the tax liability arises, for enterprises that declare and pay monthly; and the last day of the first month of the quarter following the quarter in which tax obligations arise for enterprises that declare and pay quarterly.
What is deadline for filing corporate income tax (CIT) in Vietnam?
Corporate income tax is a tax calculated based on the profit of an enterprise, which is a percentage of the positive result of revenue after deducting reasonable expenses i.e. cost of goods or services, rent, salary, travel,… as prescribed by the Law on Corporate Income Tax. For corporate income tax, enterprises will temporarily pay quarterly, and the deadline for tax payment is the 30th day of the first month of the next quarter.
What is deadline for filing personal income tax (PIT) in Vietnam?
Personal income tax is a tax paid by a company on behalf of employees working at the company. Personal income tax is calculated on a monthly basis, and be declared monthly or quarterly and settled annually. If the enterprise declares and pays personal income tax on a monthly basis (in case the enterprise declares value added tax on a monthly basis and the payable personal income tax amount in the month of VND 50 million or more), the deadline of filing PIT is no later than the 20th day of the following month. If the enterprises declare and pay personal income tax quarterly (in case the enterprise declares value added tax quarterly or the enterprise declares value added tax on a monthly basis and the amount of personal income tax must be paid is less than 50 million dong in a month), the deadline for filing PIT is no later than the 30th day of the next quarter.
It is important to file tax reports of all kinds on time but it is also equally important to manage the tax filing, and paying properly in a way that maximize the benefits of the company according to tax law taking advantage of deduction allowable by laws. Hence tax experts and tax lawyers could be consulted for advice on the regulations and tax laws in Vietnam.
ANT Lawyers, a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to international trade and tax to update clients on regular basis.
Source ANT Lawyers: https://antlawyers.vn/library/tax-filing-deadlines-you-need-to-know-in-vietnam.html
How to Resolve Disputes Settlement through Arbitration in Vietnam?
How to Resolve Disputes Settlement through Arbitration in Vietnam?
Arbitration, mediation, negotiation, and litigation are all methods of dispute resolution. In order to resolve disputes, a litigation dispute law firm in Vietnam needs dispute lawyers who have the expertise and experience necessary to resolve complex cross-border, commercial, and civil disputes.
Most business agreements could include a provision stating that disputes must be resolved through arbitration in the current business environment. A valid written arbitration agreement, either as an arbitration clause in a contract or a separate agreement, is required for a dispute to be referred to arbitration. The arbitration clause is treated as independent if it is included in a contract, and the arbitration clause's validity is unaffected by contract modifications, extensions, or terminations. As long as the parties clearly state their intention to resolve any dispute through arbitration, Vietnamese law permits a written arbitration agreement to take any form. The residing court is required to drop the case if a dispute falls within the scope of a valid arbitration agreement and a party attempts to initiate court proceedings. Additionally, the arbitration organization authorized to resolve disputes without supplemental agreement is not required to be specified in an arbitration agreement. Even if there is a valid arbitration agreement, the Vietnamese Arbitration Law states that a dispute must also fall into one of three categories before it can be arbitrated:
(1) disputes arising from “commercial activities”;
(2) disputes where at least one party is engaged in commercial activities;
(3) other disputes where the law stipulates that arbitration is a permissible means of resolution.
The definition of the term "commercial activity" in category (1) can be found in Commercial Law No. “activity for profit-making purposes comprising the purchase and sale of goods, provision of services, investment, commercial enhancement, and other activities for profit-making purposes,” according to 36-2005-QH11 (31 December 2005). Noncommercial disputes, such as civil disputes, in which at least one party is engaged in commercial activities, frequently fall into the second category. However, disputes between consumers and providers of goods or services do not fall under this category. The law stipulates that the party may select arbitration or litigation in this instance. The dispute cannot be arbitrated without the consent of the consumer, even if the agreement includes a standard arbitration clause in the contract for the supply of goods or services. Legislators have complete discretion over whether or not to expand or maintain the categories of disputes that can be resolved through arbitration. A dispute arising from investment activities governed by the Law on Investment is an illustration of a dispute in category (3).
Due to the fact that many businesses would rather avoid the high costs of litigation, arbitration has grown in popularity.
Arbitration lawyers in Vietnam at ANT Lawyers - a Vietnam law firm with accreditation in national and international arbitration practice can assist in providing clients with legal advice and guidance throughout the process of resolving disputes. The intervention attorneys could likewise exhort the clients on different issues from decision of authority, decision of assertion rules, specially appointed or institutional discretion, spot of mediation, implementation of arbitral honor.
When Labour Dispute over Bonus Issue Arise and How to Resolve?
When Labour Dispute over Bonus Issue Arise and How to Resolve?
According to the provisions the Labor Code, the bonus, also known as the “other supplement”, is one of the main contents of the Labor Contract. Specifically, bonus is understood as a sum of money paid by an employer to the employees on the basis of annual business results and the level of work performance of employees. When the dispute arises, the employer or the employee could consult with labour dispute lawyers in Vietnam to handle the matter effectively.
Bonus regulations of each company must be decided and publicly announced by the employer at the workplace after consultation with the representative organization of the grassroots-level employees’ collective. However, there are companies that do not specify bonus regulations or companies with unclear bonus regulations referring to such generally as “based on capability”, or “based on work results” without referring to specific key performance indicator (KPI). Such regulations will easily cause labor disputes. In most of the case, the employee would face disadvantage because the employer will be the one whom make the final decision on whether or not the capability or work results are satisfied.
A labor dispute means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labor relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labor relation. Labor disputes over bonuses can be individual labor disputes or collective labor disputes. The competence authority to settle labor disputes belongs to the Labor Mediator, the Labor Arbitration Council, and the People’s Court. Normally, individual labor disputes or collective labor disputes must go through the mediation procedure of the labor mediator before referring to the court to settle, unless otherwise provided for by law.
For individual disputes, in case the conciliation is unsuccessful or either party fails to implement the agreements in the minutes of successful conciliation or the settlement time limit expires but if the labour conciliator fails to conduct conciliation, each disputing party has the right to request a court or arbitration council for settlement.
For collective disputes over bonuses, in case the conciliation is unsuccessful or one of the two parties fails to implement the agreements in the minutes of successful conciliation, the parties have the right to request the President of the district-level People’s Committee to resolve the dispute. If the parties disagree with the decision of the President of the People’s Committee of the district or beyond the time limit but the President of the People’s Committee of the district does not settle, the parties have the right to request the Court to settle. In such situation, a litigation lawyer would be engaged to assist for productive result.
ANT Lawyers – A law firm in Vietnam, always follow up the labour matters to update clients on regular basis.
Source ANT Lawyers : https://antlawyers.vn/library/when-labour-dispute-over-bonus-issue-arise-and-how-to-resolve.html
How to set up a Joint-Stock Company in Vietnam in 2023
Joint-stock company is a type of enterprise recognized by Vietnam law, besides other types being limited liability company, partnership and private enterprise. A joint-stock company has legal status from the date of issuance of the Certificate of Business Registration by Vietnam authority. It is important to consult with corporate lawyers in Vietnam to learn the advantage of different forms of companies to be set up in Vietnam for the efficient management and purpose of the owner.
According to the definition of the Law on Enterprises, a joint-stock company is an enterprise whose charter capital is divided into equal parts called shares. Shareholders of a joint-stock company can be organizations or individuals, and the minimum number of shareholders of the company is 03 people. There is no limit on the maximum number of shareholders, so it will be convenient for the company when it wishes to expand its business on a larger scale. In addition, shareholders will only be liable for debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise. This is an advantage of this type of business because the level of risk that shareholders have to bear. In particular, joint-stock companies have the right to issue shares, bonds and other securities to raise capital, which is a feature that other types of businesses do not have.
To set up a joint-stock company in Vietnam, the business owner can submit by himself or authorize another individual/organization or a law firm in Vietnam to submit a set of documents to the Business Registration Office where the head office is intended, including:
1.An application for enterprise registration;
2.The company’s charter;
3.List of founding shareholders and list of shareholders being foreign investors;
4.Copies of the following papers:
a) Legal papers of the individual for the legal representative of the enterprise;
b) Personal legal papers for company members, founding shareholders, shareholders being foreign investors who are individuals; Legal papers of the organization for members, founding shareholders, shareholders being foreign investors being organizations; Legal documents of individuals for authorized representatives of members, founding shareholders, shareholders being foreign investors being organizations and documents on appointment of authorized representatives.
For members and shareholders being foreign organizations, copies of legal papers of the organization must be notarized and consularly legalized in Vietnam;
c) Investment registration certificate, in case the enterprise is established or participated in the establishment by a foreign investor or a foreign-invested economic organization in accordance with the provisions of the Investment Law and other legal documents; implementation manual.
The processing time will be 03 working days from the date the Business Registration Office receives the valid application.
With highly professional staff and great experience in foreign investment, ANT Lawyers could help to support you to set up a joint-stock company in Vietnam.
Source ANT Lawyers: https://antlawyers.vn/library/set-up-a-joint-stock-company-in-vietnam.html
Forms of Disputes and Methods of Resolution in Vietnam
Forms of Disputes and Methods of Resolution in Vietnam
Dispute in Vietnam could arise between parties to a business transaction, such as the government of Vietnam and foreign investors, or between nations implementing international treaties.
Vietnam's market economy developed in tandem with a significant increase in the breadth and depth of its economic ties, which have made Vietnam an important component of the global supply chain. Vietnam providers could offer the labor and products to the world and the unfamiliar provider could likewise trade their labor and products to Vietnam market. Further, as the Vietnam market opens up, unfamiliar financial backers could put through different types of interests in Vietnam for example gain values in Vietnam organizations, lay out business inVietnam. Disputes that have grown in size and complexity during this process are an inevitable outcome.
The majority of people should agree that disagreements should be interpreted as disagreements, inconsistencies, or conflicts of interests, rights, and responsibilities between parties in economic relations at various levels. Accordingly, economic disputes can have the following basic forms:
-Disputes in business are between the participants in a business transaction including investments, production to consumption of products or performance of services on the market for profit purposes i.e. professional and product liability, debt disputes over a business transaction, franchise disputes, intellectual property disputes, and disputes over contract for supply of goods or services…
-Disputes between foreign investors with Vietnam government agencies, arising in the implementation of the BTO, BT, BOT, and the implementation of international agreements on promotion and protection bilateral and multilateral investment i.e. government policy and policy measures, concession to water and sewerage, power or energy supply, project or contract payment…
-Disputes between countries in the implementation of the international bilateral and multilateral agreements.
After taking into account a variety of factors, including cost, time, and the complexity of the disputes, the parties involved in disputes in Vietnam may consider resolving the issues through negotiation, mediation, arbitration, or litigation. In Vietnam, a litigation law firm with skilled dispute lawyers in Hanoi, Danang and Ho Chi Minh City should be consulted for appropriate dispute resolution advice.
Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?
Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?
Foreigners are becoming increasingly interested in investing and purchasing real estate as a result of changes in the law that are attracting foreigners to live and invest in Vietnam. However, the law regarding real estate ownership and transactions is complicated, particularly for foreigners, given that real estate is a valuable asset.
In Vietnam, the entire population owns land, with the State acting as the owner's representative and managing the land uniformly. Therefore, land users will have the right to use the land in Vietnam without private ownership. Foreigners are prohibited from owning land use rights in Vietnam under the Land Law of 2013. It only permits businesses with foreign investments to use land through leases or allocations.
According to the Law on Housing, foreigners are permitted to own homes in Vietnam even though they do not have rights to use land. Furthermore, the Law on Land Business has specific impediments for unfamiliar financial backers to direct land business in Vietnam and should meet the legitimate necessities.
To minimize risks, foreign investors investing in Vietnam who intend to use the land for business purposes, conduct real estate business in Vietnam, or simply purchase and own real estate in Vietnam should be aware of the legal provisions governing the conditions of implementation, orders, and procedures. In Vietnam, the assistance of real estate dispute lawyers will be valuable.
In Vietnam, real estate lawyers would be well-versed in the Land Law, Housing Law, Real Estate Law, and related regulations. In addition, they would have practical experience supporting real estate transactions, resolving disputes, and carrying out legal procedures in Vietnam. The real estate dispute lawyers in Vietnam could talk about the conditions for doing business in real estate and the restrictions on foreign organizations and individuals' land use rights in Vietnam. In order to better work with state agencies to obtain land use rights for businesses and individual home ownership rights, the foreigners could benefit from the assistance of lawyers upon request.
Real estate lawyers may also offer assistance with legal due diligence of the real estate in order to reduce clients' legal risk when carrying out real estate-related transactions like buying, selling, transferring, renting, and leasing. Before the developer and the people who are eligible to enter into the transaction, it is essential to evaluate the property's legal status, the owner, and whether the property is the subject of a dispute or additional government requirements. Likewise, the lawyers in Vietnam can encourage clients to draft or survey the arrangements, deal as well as the cycle to authorize the interaction to consent to the law in Vietnam.
ANT Lawyers, as a reliable law firm in Vietnam always follow up real estate dispute cases and their development to update clients on regular basis.
How to Establish a Business in Vietnam
How to Establish a Business in Vietnam?
Lately, Vietnam has turned into an appealing objective for unfamiliar speculation because of its benefits of safety, political soundness, and great geological situation to exchange with the world. This serves as both the gateway to the economies in the western Indochina Peninsula and the region's connection hub. In addition, in order to make it easier for foreign investors to begin doing business in Vietnam, the government of Vietnam has been increasingly implementing more preferential policies.
Investors in Vietnam must first select an appropriate type of business based on the number of capital contributors, amount of capital contributed, and purse size before starting a business in Vietnam. Foreign individuals and organizations are permitted to establish a limited liability company, joint stock company, partnership, or private enterprise under Vietnam law.
The business line is the next issue to take into consideration. The company must register the appropriate business lines related to business activities in order to continue operating. On the off chance that the chose line of business doesn't need conditions, the venture can go into activity after the foundation of the organization. The majority of businesses would engage in this non-conditional business activity. However, if the investor selects a conditional business line, the company must first meet the necessary requirements, submit an application for a business license in accordance with the requirements, and then begin operations. This is regarded as a conditional investment area, with restrictions such as a license requirement, minimum charter capital, and foreign ownership ratio...
Investors must also select a location for their business that is legally permissible for business operations. The address of the business must be on Vietnam's territory and meet the requirements of the business's purpose, such as not being in a dormitory or apartment building solely for living; The factory must be in the right area for business...
Newly established businesses must have their own proper name, which cannot be the same as or similar to a business that has already been registered in order to serve the management of the state and facilitate business activities. When naming an organization, businesses are not permitted to use the names of functional agencies or state management agencies. The proper name and type of business must be included in the business's name. Businesses can use abbreviations or English names to avoid competing with other businesses. However, they must ensure that the company name does not create confusion by not including any cultural symbols, prefixes, or suffixes.
In Vietnam, investors must apply for an Investment Registration Certificate at an appropriate authority. All projects wishing to establish a new legal entity in Vietnam must go through this procedure. Depending on the project, an investment certificate application takes about 30 days to process. Foreign individuals and businesses must prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment within seven days of receiving an Investment Registration Certificate. The enterprise now possesses legal status in accordance with the provisions of the Vietnam Law on Enterprises.
The company could perform monthly compliance services on its own or with the assistance of professionals, such as submitting foreign labor reports, investment reports, tax reports, and health and insurance reports to authorities in order to avoid penalties from the start.
ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to investment registration or conducting business in Vietnam.
How an International Organization Could Set up Branch Office in Vietnam?
How an International Organization Could Set up Branch Office in Vietnam?
An unfamiliar business substance or an unfamiliar dealer is permitted to set up a branch office in Vietnam to direct business exercises.
A branch in Vietnam is distinct from a representative office in that it is granted the authority to carry out business activities and generate revenue. While a foreign-owned company established in Vietnam exists independently, a branch is dependent on the foreign business entity that established the branch. The establishment of a branch office in Vietnam will be approved by the Vietnam Department of Industry and Trade, and the Vietnam Ministry of Planning and Investment will be the state agency in charge of coordinating company formation in Vietnam.
In particular, the term "Branch" refers to a subsidiary unit of a foreign business entity that has been established in accordance with Vietnamese law to be able to enter into contracts and engage in the purchase and sale of goods and other commercial activities in accordance with its license for establishment granted in accordance with Vietnamese law and any international treaty to which the Socialist Republic of Vietnam belongs.
The establishment license must be applied for and obtained by the Branch; and have a seal with the branch's name on it.
1. Rights of the Branch in Vietnam
-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.
-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.
-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.
-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.
-To remit profits abroad in accordance with the law of Vietnam.
-To have a seal bearing the name of the branch in accordance with the law of Vietnam.
-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
2. Requested Conditions to Set Up a Branch Office in Vietnam
An unfamiliar organization which has viability business exercises will be permitted to open branch office in Vietnam in the event that this organization has genuine interest to open the market in Vietnam and meet a few circumstances as underneath:
-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;
-Having been operating for at least five years after its lawful establishment or business registration.
3. Issuance the Certificate of Branch:
The Department of Industry and Trade Department will carry out the issuance of the Certificate of Branch once the foreign company satisfies all Vietnam legal requirements.
The responsible period will be inside 20 working-days after the date of presenting the full substantial records as mentioned.
How to Establish a Joint-Stock Company in Vietnam?
How to Establish a Joint-Stock Company in Vietnam?
In addition to limited liability companies, partnerships, and private enterprises, joint-stock companies are recognized by Vietnamese law. When a Vietnam authority issues a Certificate of Business Registration, a joint-stock company gains legal status. Consult with corporate lawyers in Vietnam to learn about the advantages of various company formations in Vietnam for the owner's efficient management and goals.
As per the meaning of the Law on Undertakings, a business entity is a venture whose sanction capital is separated into two halves called shares. A joint-stock company can have individuals or organizations as its shareholders; the minimum number of shareholders is three. Since there is no maximum number of shareholders, the company will be able to easily expand its operations on a larger scale. In addition, shareholders will only be responsible for the company's debts and other property obligations up to the amount of capital contributed. Due to the level of risk that shareholders must bear, this is an advantage of this type of business. Specifically, business entities reserve the privilege to give offers, bonds and different protections to raise capital, which is a component that different kinds of organizations don't have.
The owner of a business in Vietnam has the option of submitting a set of documents to the Business Registration Office where the intended head office is located on their own or by authorizing another individual, organization, or law firm in Vietnam to do so. These documents include:
1.An application for enterprise registration;
2.The company’s charter;
3.List of founding shareholders and list of shareholders being foreign investors;
4.Copies of the following papers:
a) Legal papers of the individual for the legal representative of the enterprise;
b) Personal legal papers for company members, founding shareholders, shareholders being foreign investors who are individuals; Legal papers of the organization for members, founding shareholders, shareholders being foreign investors being organizations; Legal documents of individuals for authorized representatives of members, founding shareholders, shareholders being foreign investors being organizations and documents on appointment of authorized representatives.
For individuals and investors being unfamiliar associations, duplicates of lawful papers of the association should be authenticated and consularly sanctioned in Vietnam; The owner of a business in Vietnam has the option of submitting a set of documents to the Business Registration Office where the intended head office is located on their own or by authorizing another individual, organization, or law firm to do so. These documents include:
c)Investment registration certificate, in case the enterprise is established or participated in the establishment by a foreign investor or a foreign-invested economic organization in accordance with the provisions of the Investment Law and other legal documents; implementation manual.
The Business Registration Office will process the application within three working days of receiving it.
ANT Lawyers could assist you in establishing a joint-stock company in Vietnam with their highly skilled staff and extensive experience in foreign investment.
How do I establish company in Vietnam?
How do I establish company in Vietnam?
To establish a limited liability company, joint stock company or partnership company in Vietnam, foreign investors may invest 100 percent of their capital.
To receive investment registration certificates, first-time foreign investors in Vietnam must have investment projects and complete investment registration or examination procedures at state investment agencies. Business registration certificates and investment certificates must be issued simultaneously. Since the investment certificate was issued, a company with entirely foreign capital has been in existence.
-Registration/Request for issuance of Investment Certificate;
-A report on financial capability of the investor;
-Draft of the company’s charter;
-List of members of company;
-Copy of the people’s identity card, passport or other lawful personal certification, for individual members;
-Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;
-Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.
-Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;
-Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;
-The joint-venture contract or Business Cooperation Contract (BCC);
-Other documents required by Vietnam law.
Starting a business in Vietnam would take anywhere from 30 days. The additional time may be required on the off chance that the venture region is contingent or the State government necessities to look at the speculation project. In some investment projects, minimum capital, special licenses, or other conditions may be required.
ANT Lawyers would like to assist you in establishing a business in Vietnam. We have staffs that are highly skilled and have a lot of experience with foreign investment.
Areas prohibited to set up company in Vietnam
Vietnam encourages investors to set up company in Vietnam
With the public authority's endeavors in working on the venture and business climate, which is good for homegrown financial backers as well as unfamiliar financial backers, Vietnam's monetary, political and social circumstance has consistently stayed stable and accomplished extraordinary advancement, over the course of the time including the post-Coronavirus period, while laying out reciprocal exchange relations with numerous nations the world. In an effort to open up the economy, the government keeps changing its policies to support business development and improve the business environment. Specifically, the public authority resolves to energize unfamiliar financial backers carrying on with work in Vietnam: to start a business, build a factory, or buy shares in a Vietnamese company, or to invest in Vietnam in various sectors that will benefit the economy.
In general, foreign investors are permitted to establish a business and invest in Vietnam. Up until the end of 2022, the capital for Foreign Direct Investment (FDI) registered is USD 439 billion, and the FDI attracted in 2022 alone is USD 27,7 billion. In practice, a significant number of them have established businesses in Vietnam and have made substantial investments in manufacturing and production, real estate, energy, technical fields, wholesale and retail product trading, and other related industries.
Areas prohibited to set up company in Vietnam
It should be noted that the following are prohibited areas of business in Vietnam: i) dealing in illegal drugs; ii) minerals and chemicals are traded; iii) exchanging examples of plants and wild creatures; iv) the prostitution industry; v) buying and selling people, tissues, organs, human hatchlings; vi) human cloning-related business practices; vii) exchanging fireworks; viii) Businesses that provide debt collection services, including debt collection services, which were recently added to the prohibited list in the beginning of 2021 due to the negative social impact that debt collection companies in Vietnam have had.
The general requirement for both domestic and international investors is that they are permitted to engage in business investment activities in trades and industries that are not prohibited by law. The remaining trades and industries are divided into conditional and ordinary business lines, with the exception of the trades that are prohibited from business investment. In normal business lines, financial backers can openly enter without boundaries. Interestingly, contingent business lines set conditions that should be met assuming the financial backers wish to join. Understanding the lawful condition to work in a particular industry and business line is the initial step for financial backers to enter the market to set up organization in Vietnam.
What Are Real Estate Issues During Transaction?
What Are Real Estate Issues During Transaction?
The buyer and seller would neglect to use lawyers until real estate dispute lawyers in Vietnam are needed.
The real estate market is generally an appealing business sector with an enormous wellspring of possible speculative benefits for financial backers. Since the land exchange is in every case high in worth, and purchasing a property for the vast majority is consistently a day-to-day existence time significant choice, and ordinarily with the monetary help from the bank, consequently in the created country, real estate dispute attorneys are constantly associated with all means of the exchange to guarantee the genuine exchange of the property. Real estate dispute lawyers in Vietnam will then be referred to for guidance and representation whenever a dispute arises.
Disputes arising from the sales and purchase agreement and deposit agreement in Vietnam
In point of fact, the majority of real estate transactions in Vietnam are carried out by the buyers and sellers themselves without the assistance of real estate attorneys. As a result, numerous disputes arise as a result of these transactions regarding the property deposit agreement, the property sales and purchase agreement between the buyer and the real estate developer for a new property, or the agreement between the buyer and the previous owner for a resale property.
Since residential property is one of the most frequently traded types of real estate, it is important to ensure that the conditions for property transfer are met before participating in property-related transactions. For a transfer to be successful, the related parties must adhere to and fulfill the aforementioned conditions.
Conditions for the property to be transferred: free from claim or dispute from other parties
The fundamental elements of the property transfer transaction include the following: The transferred property is not the subject of a claim, complaint, or ownership dispute; In the case of property owners with a specific term, the transferred property must be within the ownership period; The transferred property is not restricted for the purposes of judgment enforcement or compliance with administrative decisions made by competent state agencies that are legally effective; A decision on land recovery or a notice of house clearance or demolition from a competent agency is not required for the transferred property.
The property transferor must fulfill the following requirements for the parties to the property transaction:
Seller of the property has the right to sell or not?
The person or entity permitted or authorized by the owner to carry out the transaction on property in accordance with the provisions of the law is the transferor;
The person who bought the house from the investor or the person who has received the transfer of the house purchase and sale contract is the transferor in the case of a commercial house purchase and sale contract.
In accordance with civil law, the transferor must be an individual with full civil act capacity to conduct housing transactions;
Unless the organization donates a home out of gratitude or charity, the transferor must have legal status if it is an organization.
Can the buyer meet conditions to buy the property?
At the same time, the transferee shall also meet the conditions, specifically including the following conditions:
It is not necessary for the transferee to have a permanent residence registration in the location where the transferred housing is located; instead, as long as the transferee is a domestic individual, they will have full civil act capacity to conduct property transactions in accordance with civil law.
Under Vietnam law, the transferee must have full civil capacity to conduct housing transactions if they are a foreigner or an overseas Vietnamese. In addition, according to Vietnamese law, this individual must be eligible to own homes, and neither temporary nor permanent residence registrations are required at the location where the transferred housing is located;
Assuming the transferee is an association, it will have lawful status and not rely upon the business environment enlistment and foundation; on the off chance that it is an unfamiliar association, it should be qualified to claim a house in Vietnam as per the arrangements of regulation; assuming that the association is approved to figure out how to house, it should have the capability of giving land benefits and be working in Vietnam under the law on land business.
What are potential disputes during the property transaction?
There are also disputes arisen from situations in particular:
One of the parties would like to exit the transaction if the property's market price rises or falls during the transaction.
The deals and acquisition of property is finished and enrolled at the authority yet the merchant keep on living there won't surrender the property for certain purposes behind some obscure time.
When compared to the property details outlined in the sales and purchase agreement, the developer may alter the property's design.
The property's quality does not meet the terms of the sales and purchase agreement.
Additionally, when entering into a property transaction, one may need to pay close attention to fraudulent acts in the sale and purchase of property.
How real estate dispute lawyers in Vietnam could help?
As said, there are what is happening that question could emerge in a real estate transaction. It is essential to connect law firm spend significant time in land exchange for trading property in Vietnam to stay away from expected debates and safeguard their wellbeing for dealer and defend venture for purchaser. In the event of a dispute, real estate dispute lawyers in Vietnam should be hired by the buyer or seller.
How does the Vietnam Labor Code regulate probation?
How does the Vietnam Labor Code regulate probation?
Probation is an understanding between a representative and a business on a trial work in a specific timeframe as per the arrangements of regulation. Both the employer and the employee should go through a trial period before signing a labor contract to see if they can work together in the long run. The Labor Code and other relevant guidelines should be followed during the probation. The Labor Code 2019 comes into force as of January first, 2020, various new guidelines as needs be are given in association with the probation, which each organization ought to review the matter with its labour dispute lawyers in Vietnam for compliance.
This contract does not apply to employment for less than one month, regardless of the circumstances under which it may be entered into. The probationary clause is not required to be included in the labor contract by the 2012 Labor Code. As a result, an employer and employee may negotiate the probation, as well as their respective rights and responsibilities during the probation period. If the parties are in agreement about the probation, they can sign a probation contract. On the off chance that the probation work meets the necessities, the business will finish up a work contract with the representative. It is clear from these provisions that a separate probationary contract between the employer and employee is required.
When the probation period is over and the employee satisfies the employer's recruitment requirements, the labor contract should be signed. As per the most recent arrangements in the Labor Code 2019, the business and the representative might settle on the probation expressed in the work contract or a different trial contract. If the labor contract includes a probationary period, the employer is obligated to continue carrying out the current agreement once the employee has met all of the requirements. In that case, a new labor contract must be signed.
Based on the nature and complexity of the job, the Labor Code decided how long the probation period had to be. For positions requiring a college degree or higher, the probationary period was previously limited to no more than 60 days. Currently, executives can extend their probationary period by up to 180 days. The owner of a sole proprietorship, the partner of a partnership company, the chairperson or member of the Board of Members, the President of a company, the President or member of the Board of Directors, the Director/General Director, or the holder of another managerial position prescribed in the company's charter (applicable to the enterprise without state capital) are examples of executives who play a significant part in the business and operation of the businesses.
The Labor Code 2019 made another change to the cancellation of probationary contracts, removing the restriction on the right to cancel. Consequently, during the probationary period, either party may terminate the labor contract or probationary contract without penalty or prior notice. On the other hand, if the probationary job does not meet the requirements that the employer and employee have agreed upon under the Labor Code 2012, the probation may be terminated.
The primary purpose of probationary periods is to determine whether an employee and employer are compatible at the outset of an employment relationship. To avoid a potential dispute in Vietnam, businesses as employers must have a clear understanding of the principles of entering into a labor contract and a probationary contract.
ANT Lawyers is an international law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City with international standards, recognized by IFLR1000. We are Vietnam exclusive member of Prae Legal, an international law firm network, providing full ranges of legal services.
Heading 1
Heading 2
Heading 3
Heading 4
Heading 5
Heading 6
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
.jpg)
.jpg)
.jpeg)
.jpg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)
.jpeg)