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 following will be discussing about how to close a business in Vietnam.

What are the major challenges with closing a business in Vietnam?

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?

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 regulators 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.

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 to continue doing business in Vietnam.

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.

Read More

How to Start a Business in Vietnam as a Foreigner?

 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.

How to Start a business in Vietnam?

What to consider to start a 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.

Read More

Potential risk of online transaction in Vietnam and its consequences

 The 4.0 Industrial Revolution has developed significantly, which results in the transformation and breakthrough of all areas of the globe. Besides, the Internet and social network has got more popular and become an indispensable part of modern life. Online business, therefore, is formed and conducted the most frequently on social networking platforms. In the process of doing online business on this platform, many potential risks arise and depending on the situation, the people taking part in the transaction might need to involve the business consultant or risk management consultant to assist proving advice or consultancy service to address the matters.

First and foremost, it is very difficult and complicated to determine the identity of the subjects partaking in the social networking platforms in general and conducting business activities on these platforms in particular. Unlike e-commerce platforms which register operation with authorities, which require the sellers to verify their information before doing business, the social network environment allows anyone to participate in without revealing their true identities exposed. User will have an account that may or may not provide their true information after only a few basic registration procedures. As a result, many people have taken advantage of this feature of social networks to commit illegal acts in business activities. There are instances in Vietnam for fraud to appropriate property on a social network which the offender using an account on a popular social network with a fake name, using other people’s photos as his avatar. Next, he bought a fake ID card and used it to set up some bank accounts to start committing fraud. Although he did not have products for sale, but he still posted ads with pictures of selling products at cheap prices on his social network account. If customers wanted to buy, he asked them to transfer money first and promised to send the products to them by post soon after. However, when receiving the money from the customer, he did not send the goods and temporarily locked his account. Beside fraudulent activities, seller’s information is not checked or confirmed, allowing unscrupulous people to readily impersonate others for profit. It is not unusual for prominent business professionals or influencers to be faked on social networking platforms. This action jeopardizes the honor and reputation of those who are exploited while also affecting a large number of legitimate business people. Thus, the fact that social networks do not require business entities to verify their identities, despite helping conduct business procedures quickly and conveniently, causes many problems mentioned before, directly affecting the right to conduct business, benefit customers and stakeholders.

Secondly, no authorities have the possibility to guarantee absolutely the quality of items traded on social networks. The goods listed for sale are extremely diverse in quantity, type and design. Each business subject can sell hundreds of products per day and there are many business subjects on one social networking platform. Therefore, governmental agencies are unable to oversee and manage the origin and quality of each product and service. Many of goods for sales are prohibited or barred from trading. At the same time, sellers can sell fake goods, counterfeit, provide poor-quality ones or sell unknown-origin ones to customers in order to maximize profits. The most serious consequence of trading in unqualified goods is affecting the health of customers.

Thirdly, although Vietnamlaw imposes taxs on business subjects, it is difficult to collect taxes from organizations and individuals conducting business on social networks. That reduces state revenue and creates an unfavorable competitive climate for other sorts of enterprises. The reason is that business on social networks is based on technology, and it is easy to modify and delete information online, so it creates difficulties in identifying and verifying the number of business people and capturing transactions. This situation can be characterized as unfair competition, which is upsetting and unstable for the economy.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Background Check Service in Vietnam

 Why need the background check service in Vietnam?

Vietnam is a developing countries where opportunities are coupled with risks. Risks in Vietnam could appear in different forms i.e. risks in doing business with untrustworthy partners or incapable partners, risks in employing the wrong people or people with criminal record, risks in buying goods from scammers…Hence for the significant transactions, many companies hire professional to assist with background check service in Vietnam

Vietnam has been strongly attracting direct investment capital from foreign investors or indirect investment through merger and acquisition or cross-border transactions i.e. buying and selling of goods. Although Vietnam is working on improving on the level of transparency, it is advisable that foreign investors and traders take effort to learn about their partners before cooperating with them. In other words, it is important to understand an individual or enterprise before joining venture with them in Vietnam so that the investors may reduce the minimum risks that may occur as well as evaluating the possibility of cooperation in the future.

With the development of internet, the world is much more connected. Obviously, business could be done much easier with just of click. But, there are many incidents which scammers happen to be in Vietnam to use internet and lure foreigners to buy goods or make investment. More cases have been reported during and after Covid pandemic because the practice of using social media grow while the need for face to face meeting reduce. People could be more relaxing to do business without visiting site, meeting partners than before. This is where the scammers take advantage.

If the investors or traders ignore this step of due diligence of partners, they may take heavy consequences. It may be a loss of money, time, and reputation.

Many investors investing in Vietnam for the first time or traders new to Vietnam use survey results from third parties, that is, the professional companies specializing in the investigation of market information, partners assessment, employ background check.

What matters in background check service in Vietnam?

To learn about the new market, it requires understanding of cultures, business practices, languages. Each country is different. Vietnam is different. Not many people from different background could pick up strange behaviours, and red-flags. If the investors or traders conduct the investigations themselves, the results may be inaccurate and not objective.

Further the investors or traders can save time as well as money to focus on other professional activities.

With a team of experienced professionals, they are business minded people, people with skills in desktop research and human research, the professional companies specializing in background check service in Vietnam could conduct market research, information research through having access to market intelligence, people intelligence to meet requests from the investors or traders.

Do not let the lessons to be learnt the hard way!

Therefore, if you are going to invest in Vietnam, we recommend you to conduct a thorough background check service in Vietnam.

Research for records of enterprises or record of individuals in Vietnam;

Research for the reputation of the company or individual who shall be your business partners in Vietnam;

Research for the history of public information about the company or individual.

Employee Background Check in Vietnam

It might be obvious to professional but it could be not so obvious to the investors and traders whom are eager to see some too good to be true opportunities. Trust in business is important but it could and should be backed up by facts. If details do not match, be alerted and use the background check service in Vietnam to safely invest and do business in Vietnam.

Read More

Lawyers in Ho Chi Minh City

 With the increasingly strong socio-economic development, the role of law in society is increasingly emphasized, especially in Ho Chi Minh City – the economic locomotive of Vietnam, a dynamic city.

Therefore, the demand for reputable and quality legal services from individuals, organizations and businesses is always high.

General requirements of our lawyers in Ho Chi Minh City

Our lawyers in Ho Chi Minh City, like in many other places, typically hold certain qualifications and credentials that enable them to provide legal services to clients.

In Vietnam, lawyers are regulated by the Vietnam Ministry of Justice, and they must meet specific requirements to practice law. Here are the qualifications of lawyers in Ho Chi Minh City:

Legal Education: Lawyers in Ho Chi Minh City are required to have completed a bachelor’s degree in law from a recognized university or institution. This education equips them with a foundational understanding of legal principles, theories, and practices.

Training and Internship: After obtaining their law degree, aspiring lawyers must undergo a period of practical training, often as an intern at a law firm or a legal department of a company. This practical experience helps them develop the skills needed for the legal profession.

Bar Exam: As part of the qualification process, lawyers in Vietnam, including those lawyers in Ho Chi Minh City, must pass the bar examination administered by the Ministry of Justice. The bar exam evaluates their knowledge of various legal subjects and their ability to apply legal principles to real-world scenarios.

Bar Association Membership: Once they pass the bar exam, lawyers become members of the Vietnam Bar Federation or the bar association of their respective city. Membership in the bar association is mandatory for practicing law in Vietnam. Once became a lawyer in Vietnam, the lawyer could practise anywhere in Vietnam.

Continuing Education: Like in many jurisdictions, lawyers in Ho Chi Minh City are encouraged to engage in continuing legal education to stay updated on changes in laws and regulations. This helps them provide accurate and effective legal advice to clients.

Benefits that ANT Lawyers in Ho Chi Minh City offers to clients

Local Expertise and Knowledge: Having a presence in Ho Chi Minh City, which is a major business hub in Vietnam, ANT Lawyers possesses an in-depth understanding of local laws, regulations, and business practices. This local knowledge is invaluable for clients entering the Vietnamese market.

Legal and Cultural Insight: ANT Lawyers can bridge the gap between foreign clients and the local business environment by providing insights into cultural norms, business etiquette, and legal intricacies. This helps clients avoid misunderstandings and navigate cultural challenges.

Market Entry Assistance: The firm can guide clients through the process of market entry, assisting with legal entity selection, business registration, permits, and licenses. This support ensures that clients establish a solid legal foundation for their business operations in Vietnam.

Contract Drafting and Negotiation: ANT Lawyers can assist clients in drafting contracts and agreements that comply with Vietnamese laws while protecting the interests of foreign businesses. The firm’s expertise in contract negotiation can help clients secure favorable terms with local partners.

Compliance and Regulatory Guidance: Vietnam’s regulatory landscape can be complex, especially for foreign businesses. ANT Lawyers can advise clients on compliance with industry-specific regulations, licensing requirements, and other legal obligations.

Intellectual Property Protection: Protecting intellectual property is crucial for businesses. ANT Lawyers can help clients register trademarks, copyrights, and patents in Vietnam, ensuring their intellectual property rights are safeguarded. ANT Lawyers holds IP licensing certificate to practise IP laws. Not all law firms can practise IP laws.

Dispute Resolution and Litigation: In case of disputes, ANT Lawyers’ legal team can represent clients in negotiation, arbitration, or litigation proceedings. Their knowledge of local laws and dispute resolution methods is instrumental in achieving favorable outcomes.

Government Relations: ANT Lawyers can facilitate communication with relevant government agencies, helping clients navigate administrative procedures, obtain necessary approvals, and address regulatory issues.

Network and Connections: ANT Lawyers’ local network and connections can help clients establish valuable contacts in the Vietnamese business community, facilitating partnerships, collaborations, and business growth.

In conclusion, lawyers in Ho Chi Minh City office of ANT Lawyers bring a wealth of legal expertise and local knowledge to assist foreign clients entering Vietnam for business. By leveraging their understanding of local laws, culture, and business practices, these lawyers contribute to clients’ success in the dynamic Vietnamese market.

About us: ANT Lawyers in Ho Chi Minh City

We are a Vietnam law firm 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.

We help clients to overcome cultural barriers and achieve their strategic and financial results, and in the meantime ensure best interest protection, risk minimization, and regulatory compliance doing business in Vietnam.

Our people are members of Vietnam Bar Federation, Hanoi Bar Association, Vietnam law firm member of Prae Legal, a global law firm network spanning 5 continents and 150 countries, World Mediation Organization, an international organization headquartered in Berlin that promote and foster mediation as an alternative dispute resolution.

We advise clients in the following areas:

Commercial

Employment

Foreign Investment

Infrastructure Energy & Projects

Intellectual Property

International Trade and Taxes

Mergers and Acquisitions

Real Estate and Construction

Mergers and Acquisitions

Securities and Capital Markets

Shipping and Maritime

Telecommunications, Media & Technology

Civil Matters

Read More

Set up Representative Office in Vietnam

 ANT Consulting offers service to set up representative office in Vietnam for foreign traders whom wish to learn about Vietnam markets and make investment

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

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.

Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services), but the representative Office is permitted to

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

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

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

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

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

M&A Due Diligence and Execution in Vietnam

 Merger and Acquisition (M&A) activities in Vietnam have been rapidly increasing over the the years in value and number of transactions when Vietnam’s opening policies to attract foreign investments loosen up. The M&A due diligence and execution are therefore important steps to ensure a successful transaction.

For foreign investors wishing to take advantage with a certain level of risks in Vietnam where the cost of labour are cheap, mid-income populations are growing, and the need of capital are high, it is important to find the right target companies to invest. Challenges might arise when approaching the right local companies, locating the right decision makers within the local companies, encountering differences in languages and cultures.

It is important that the local consultants with the understanding of the business and legal environment in Vietnam where the local companies are incorporated could be involved at an initial stage to monitor and minimize the risks, improve the effectiveness of the M&A process in Vietnam.

The Vietnam consulting company could also provide corporate intelligence and insights of the Vietnam targeted companies to have an overall evaluation of the compliance of the Vietnam companies, possible risks involved and growth potential. Financial forensic services might also be needed before other further steps. Then, the following will need to be considered when undertaking the M&A in Vietnam.

Due diligence

M&A due diligence in Vietnam is a vital step because it determines whether the M&A will succeed or not. There are some aspects that must be carefully considered:

Financial reports

Review all the financial reports of the Vietnam targeted companies within 3 to 5 years to assess the current and future financial situation. These data needs to be audited by a reputable independent auditing company. Evaluating financial situation targets on many aspects such as the reasonable connection between the financial statements, operating and sales margin of the business in relation to the average in that industry. These data allow valuation real value of the target business.

The cash flow

Checking the dates on invoices showing that whether targeted businesses have paid promptly or not. Term of payment may vary from industry to industry, but generally 30 to 60 days. If the money order is paid after the billing date period of 90 days or more, it means that the business owner may be struggling with cash flow. Finding out that if the clients’ inability to pay bills or not is very important.

The staff

Determining the importance of staff for the success of the business considering work habits of employees, working time of key employees; ability to remain working after a change of the owner occurs; the incentives necessary to keep key employees; ability to easily replace key employees; the relationship of key employees with the company’s customers.

The customers

This is the most important assets of the Vietnam targeted company. Make sure that clients are as the other tangible assets of the business. Evaluating customers on some primary aspects: the relationship with the current owner of the business, customer history with business relations and the contribution of each customer to the profits of the company; assessing that customer will leave or stay when the business having new owners; customer services and dispute of the company, the relationship of the former owner of the business with the community or the industry.

Business location

This is especially important if the targeted company is a retail company. Does the importance of business location play a crucial role for the success of the company? How is the location of the company you plan to acquire? Is there sufficient parking lot for customers? How does the company depend on sales in the region? How is the prospects of the business in this area? Does this place have been in the process of rapid change from new residential district office building or not? Has business location become more or less desirable because of contemplated changes in surrounding area or not?

Competitors

Considering this aspect in order to define the capacity of the targeted business in the industry, the following questions would help: who are its competitor and what are their strategies? Does the price war happen frequently? How has the competitive environment changed?

Business registration, permits and zoning

It’s necessary to make sure that business registration certificate and other legal documents can be easily given to the buyer. It would be better to acknowledge the procedures to transfer these documents and its fee with the help of local management consulting company in Vietnam. If the targeted company is a joint-stocks company, what is the procedure for the business registration? Can foreigners own the company 100% according to Vietnam laws? Conditional investments in Vietnam need to be considered carefully by lawyers in Vietnam to avoid mishaps.

The company image

Company image can be a significant asset and that cannot be assessed in the financial report. There are many intangible factors to consider when evaluating a company: how to serve customers, how employees answer the phone and the level of support the community or the industry.

Negotiate the price

It is important to understand the purpose and motivation of both parties. The sellers’ motivation are formed and affected by value drivers. There are two main value drivers which are approach value and avoidance value. Approach value is our purpose such as prosperity and avoidance value is the negative effect that we need to eliminate. Normally, the buyers try to find out what are the reasons why the owner wish to sell the companies. This will help the buyers plan a reasonable strategy beforehand.

A research analyzes the general aspects that the buyers seeking for via conducting surveys companies’ owner who have sold or transformed their enterprises. The research results are focus on profit maximization (79%), minimization of tax payable (73%), protection of viability of the company (71%)…(Source: Acquisition Marketplace Review, 2007).

The motivation of the buyer in most cases is similar to the motivation of the seller, which is to maximize profits, expand markets, increase revenue, operating areas, areas of activity, minimize taxes…

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Granting Investment Registration Certificate in Vietnam

 As Vietnam integrates further into the global supply chain, foreigners are more and more encouraged to invest in Vietnam in many areas for pursuing profit. The foreign direct investment of the foreigners is required to be registered at Vietnam state authority to protect the rights of the investor. The investors could then establish company in Vietnam and apply investment certificate in Vietnam

According to the Law on Investment, investment projects of foreign investors; projects of setting up a economic organization in which foreign investors holding 51% of charter capital or more or the majority of the general partners are foreigners in a partnership; projects of BCC contract between domestic investors and foreign investors or between domestic investors and economic organization which foreign investors holding 51% of charter capital or more or the majority of the general partners are foreigners shall need to conduct the procedure of applying investment registration certificate as regulations of law.

Preparation of dossier to apply investment certificate in Vietnam

-A written request for permission for execution of the investment project;

-A copy of the ID card or passport (if the investor is an individual); a copy of the Certificate of establishment or an equivalent paper that certifies the legal status of the investor (if the investor is an organization).

-An investment proposal that specifies: investor(s) in the project, investment objectives, investment scale, investment capital, method of capital rising, location and duration of investment, labor demand, requests for investment incentives, assessment of socio-economic effects of the project;

-Copies of any of the following documents: financial statements of the last two years of the investor; commitment of the parent company to provide financial support; commitment of a financial institutions to provide financial support; guarantee for investor’s financial capacity; description of investor’s financial capacity;

-Demand for land use; if the project does not use land allocated, leased out by the State, or is not permitted by the State to change land purposes, then a copy of the lease agreement or other documents certifying that the investor has the right to use the premises to execute the project shall be submitted;

-Explanation for application of technologies to the project which specifies: names of technologies, origins, technology process diagram, primary specifications, conditions of machinery, equipment and primary technological line;

-The business cooperation contract (BCC) (if the project is executed under a BCC).

Order and procedure to apply investment certificate in Vietnam

-Investors submit the dossier at Department of Planning and Investment (or management of economic zones, high-tech zones);

-Within 15 working days from the date of receipt of a complete and valid dossier, the competent authority shall grant the investment registration certificate in Vietnam for investors. In practice, the time duration would be lengthened due to the time for preparation of documents from investor, getting them notarized, legalized, authenticated and translated into Vietnamese before being accepted in Vietnam.

The actual time for processing paper at the State authority would also last longer in practice when the State authority evaluate the project plan of the investor to ensure that its investment purpose is achievable economically and in accordance to the regulations of Vietnam. It is advised that the client engage professional law firms in Vietnam to assist with advisory and to apply investment certificate in Vietnam for doing business in Vietnam.

Read More

Six benefits for investors to set up company in Hanoi

 Along with the trend of integration in the world, Vietnam is considered a country with rapid and strong growth, in which, industrialization and modernization are focused on developing a uniform set and achieve high performance. Hanoi and Ho Chi Minh City are considered the two cities and dynamic development in Vietnam. The investors would choose to invest and set up company in Hanoi because of the benefits the city could offer.

First, the skilled labor force for hiring

Hanoi is considered a capital with a longstanding historical developed tradition. The population is heavily crowded, reaching about 7 million after 4 times of adjusting the administrative boundaries in 2014.

Ha Noi has become one of the 17 largest cities in the world. In addition, with favorable conditions, Hanoi is considered an attractive city for labor, especially qualified and highly skilled workforce. A large workforce will provide adequate resources for industries requiring a large amount of labor force.

Second, the pace of economic development

Over the years, the economy of Hanoi has continued to grow and controlled inflation. In addition, GDP in the province is estimated at 8.8% and revenue is estimated at 130.000 billion, with 103% of the mathematics.

Besides, administrative reform, improvement on the investment environment, business environment, policies to remove difficulties for enterprises often deploy, which made PAR index of cities rise 2 levels compared with 2012 and No. 5 of the 63 provinces and cities nationwide. Thus, with the stable and strong economic development, Hanoi is a city that brings stability for businesses to invest and develop.

Third, infrastructure to encourage investors to set up company in Hanoi

With the aim of developing Hanoi based on criteria of synchronous and modern infrastructure, leadership of Hanoi has attempted to offer policies to promote infrastructure construction of the city in order that Hanoi will become more modern, in which, the traffic system in Hanoi must be built and upgraded. This is considered particularly advantage, because the synchronous development of infrastructure will bring to the development of economy of the city.

Fourth, administrative and tax policies

With attractive policies for investment, Hanoi has implemented policies solving administrative procedures with one door policy. This policy is seen as a new step forward the people of Hanoi in general and businesses having demand to invest in Hanoi in particular.

With this open policy, the procedures for establishing businesses, dissolution, business transformation become quickly and easily than ever before, creat favorable conditions for the development of business and resolve administrative procedures. In addition, in order to facilitate business development for businesses, Hanoi has many policies to reduce taxes in order to create favorable conditions for development of new business with low capital.

Fifth, geographic location

Hanoi offers convenient location, with synchronous traffic system, a northern – southern railway, highway 1A, along with the expanded domestic and international routes, it is considered a city with the most convenient trade location in Southeast Asia and the gateway to the East Sea of Laos and other countries.

Sixth, broad market

With the population of 7 million, belonging to one of the 17 cities with the largest population in the world, Hanoi is considered a city which has the largest consumer goods market in the country. Abundant work force, along with the large number of people from suburbs, strong demand for consumer products, services lead to favorable conditions for businesses in production and consumption of consumer products and services.

It can be said that Hanoi is considered to be an attractive destination for investment. It is important that the client also consider other matters including regulatory, political environment before making decision.

Read More

How To Conduct Legal Due Diligence for M&A in Vietnam?

 Mergers and Acquisitions (M&A) has become popular in Vietnam as the country develops and more investors are eager to invest and gain control of the business enough to engage in, decide important business matters through partial or full ownership of an enterprise. As experience of M&A law firms in Vietnam, a successful M&A mean the parties achieve their financial and commercial goals (increasing capital, raising management capacity, branding, etc) and ensuring safety and restraint the risk at the lowest level. The legal due diligence undertaken by law firms in Vietnam to help address the concerns.

The Importance of Legal Due Diligence of Enterprise in M&A activities

Legal due diligence of enterprises focuses on full and detailed assessment of legal issues relating to the legal entity, capital contribution status, shareholder status, legal rights and obligations. From the investigation information, the parties can anticipate legal risks, assess opportunities to come up with alternatives. In addition, legal assessments help parties evaluate the reliability of their counterparts as well as understand their advantages and constraints for the negotiation process.

What Legal Due Diligence in M&A Activities Entail?

Evaluate the factors related to the legal status and capacity of the target enterprise: Review the legitimacy of the establishment, operation, possession of enterprise; ensure that the enterprise is not subject to procedures for dissolution or bankruptcy and compliance with the law of the enterprise in the course of operation. The information to be checked includes: dossiers, certificate of enterprise establishment, operation licenses, practice certificates, professional liability insurance, company charter, agreement between the company owner on rights of shareholders, capital contributors, minutes of meetings, member/shareholder register, certificate of capital contribution.

Evaluate the factors related to the business and financial activities of the target enterprise: Review the system of customers and partners of the enterprise; the documents on economic contracts (with customers, suppliers, etc); dossier of investment, construction, land, project; information on guarantee, mortgage (if any), debt and credit agreement, M&A, financial leasing contract, exclusive contract, franchise, etc, in terms of value, legality, validity, progress to evaluate legal risks in the future. Review the financial statements on the accuracy of the financial status of the business.

Verify the factors related to labor: Review labor contracts, labor agreements, internal labor regulations to determine the enterprise’s financial obligations to employees, compliance Labor law and reception of labor after the purchase or sale.

Verify the factors related to intellectual property: Review intellectual property rights of enterprises including: trademarks, trade names, industrial designs, layout designs, business secrets, etc; the property has granted the patent/license. Review matters of infringement of intellectual property rights of other organizations, individuals or legal persons in order to anticipate the risks of being sued or claiming damages.

In addition, in an M&A deal, the acquirer should ensure that participation in capital contribution or acquisition of the target enterprise is permitted, the form of M&A implementation is in accordance with the law and the M&A deal was approved by the competent authority of each party. After that, the factors related to M&A transaction procedures and constraints and restrictions of law (if any) must be evaluated.

How M&A Law Firms in Vietnam Could Help?

M&A law firms in Vietnam play a crucial role in helping investors undertake due diligence in the country. Due diligence is a comprehensive process that potential investors go through to assess the risks and opportunities associated with an investment or acquisition. M&A law firms in Vietnam, with their understanding of law, business environment, and cultures, can provide valuable assistance in the following ways:

Legal Expertise: M&A law firm in Vietnam have a deep understanding of Vietnam laws and regulations governing mergers, acquisitions, and foreign investments. They can ensure that the investor complies with all relevant legal requirements, identify potential legal risks, and suggest strategies to mitigate them.

Identifying Risks: Vietnam’s business environment can be complex and dynamic, and there may be various hidden risks associated with an investment or acquisition. M&A law firms in Vietnam can thoroughly investigate the target company’s legal and financial records to identify potential legal liabilities, contractual obligations, and pending litigations that might impact the investor’s decision.

Cultural Understanding: Understanding the local culture is crucial for successful business transactions in Vietnam. M&A law firms in Vietnam are familiar with the Vietnamese culture can help bridge the gap between the investor and the target company, facilitating effective communication and negotiations.

Transaction Structure: M&A law firms in Vietnam can assist in determining the most suitable transaction structure based on the investor’s objectives and the target company’s characteristics. They can recommend options such as asset acquisitions, stock purchases, joint ventures, or other investment structures that align with the investor’s goals.

Deal Negotiation and Drafting: Lawyers with M&A experience can help negotiate the terms of the deal and draft the necessary legal documents, including the letter of intent, memorandum of understanding, and the final purchase agreement. They ensure that the investor’s interests are protected and that all relevant details are properly documented.

Regulatory Approvals: Vietnam has specific rules and regulations concerning foreign investments, and certain acquisitions may require approval from government authorities. M&A law firms in Vietnam can guide investors through the regulatory approval process, ensuring that all necessary permits and licenses are obtained.

Tax Implications: M&A transactions can have significant tax implications. M&A law firms in Vietnam can advise investors on the tax implications of the deal and help structure the transaction in a tax-efficient manner.

Post-Deal Integration: After the acquisition, M&A law firms in Vietnam can assist with post-merger integration, helping the investor navigate any legal issues that may arise during the integration process.

In summary, M&A law firms in Vietnam are essential for investors undertaking due diligence as they provide a comprehensive understanding of the legal landscape, navigate cultural differences, identify risks, and ensure compliance with local regulations, contributing to the overall success of the investment or acquisition.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance while doing business in Vietnam. ANT lawyers, a law firm in Vietnam has attorneys in Hanoi, Ho Chi Minh and Danang.

Read More

5 benefits for investors to set up company in Danang

 As one of the strategic economic centers of Vietnam’s central region, investors might find many benefits to set up company in Da Nang.

The Vietnam prime minister has established central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Da Nang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Da Nang – eastern gateway of east – west economic corridor (EWEC)

EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.

Currently, the road system in Laos, Thailand and the road line from Da Nang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of 2006 to facilitate the circulation of goods and passengers by road line from Da Nang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development

Da Nang – entrance of the cultural heritage and natural wonders of the world

Da Nang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Da Nang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Da Nang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).

With the advantage of geographical location and potential economic development in tourism, Da Nang is an ideal destination for tourists as well as investors.

Infrastructure is step by step improved

Da Nang is an important traffic hub of the central – highlands and country with system of international airports, deep sea ports, roads, north-south railways developed conveniently.

Da Nang port is the third largest commercial ports in Vietnam after Saigon port and the port of Hai Phong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Da Nang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Da Nang is the international shipping route enabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.

Da Nang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Da Nang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Da Nang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargo.

The system of roads in and out of the city are constantly being expanded and newly constructed

Telecommunication systems: Da Nang is one of three major Telecommunication centers of the country, international transmission speed with good quality of Southeast Asia. Da Nang post provides various and modern telecommunication services and be capable meeting the needs of customers.

The other services supporting investment (financial, banking, insurance): most banks and finance companies of Vietnam have large branches in Da Nang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.

Trained and abundant human resources

Da Nang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Da Nang are lower than some other cities in the country.

Da Nang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Da Nang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …

Software technology center in Da Nang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard. Many IT company has chosen Da Nang to set up company in Da Nang to hold their talents for international projects.

In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …

Quality of life

Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Da Nang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Da Nang always bring a sense of peace, comfort and closeness to nature. Da Nang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.

Da Nang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that the investors might find it is exciting to live, work, travel and invest to set up company in Da Nang.

Read More

Family Office Services

 Vietnam has been considered as an attractive fit for family office. The Vietnam’s stock market has been around fifteen ten years. Fund certificates in various forms are available such as close ended fund, open ended fund, Exchange Traded Fund (ETF). Foreign investors are now allowed to hold up to 49% shares in a listed company and this room has been in the process to change in the near future. Although Vietnam market is considered small for pension funds or the similar, this market is a right fit for family offices.

Further, foreigners are now allowed to make direct investment, hold 100% and conduct business in most areas after the new investment law’s effective date of Jul 1st, 2015. The real estate law has been passed with effective on the same date with new investment law, allowing foreigners entering Vietnam to buy real estate.

We are a local professional management consulting firm with family office service that assist foreign clients with asset management and consolidated reporting of all the family’s assets.

In particular, we provide wealth management and tax planning, trustee and corporate services, and support with indirect investment, direct investment, real estate and family governance.

We are your consultants and we could act as nominee shareholder, nominee director, or provide management service that help you achieve the goal, and stay in private status at the same time.

We look forward to helping you find the family office services you need in Vietnam.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Read More

Real Estate Litigation Lawyers in Vietnam: Navigate Complexities

 The Crucial Role of Real Estate Litigation Lawyers in Vietnam: Navigating Complexities and Safeguarding Property Rights

Real estate transactions in Vietnam are on the rise, driven by the country’s burgeoning economy and increasing urbanization. However, navigating the complex legal landscape of the Vietnam real estate market can be challenging for both domestic and international investors. Real estate litigation lawyers play a critical role in this context, offering expert guidance and representation to safeguard property rights and resolve disputes effectively. This article delves into the multifaceted role of real estate litigation lawyers in Vietnam, exploring how they assist clients in various aspects of real estate transactions and contribute to ensuring a transparent and secure property market.

Understanding the Vietnamese Real Estate Market

The Vietnam real estate market is diverse and dynamic, encompassing residential, commercial, industrial, and agricultural properties. With the increasing demand for land and properties, real estate transactions involve various stakeholders, including buyers, sellers, developers, landlords, tenants, and government agencies. Understanding the legal nuances and intricacies of real estate transactions is crucial to ensure compliance with laws and regulations, minimize risks, and protect property rights. Real estate litigation lawyers in Vietnam possess in-depth knowledge of Vietnam real estate laws, regulations, and market practices, making them well-equipped to guide clients through every step of the real estate process.

Assistance with Contract Drafting and Review

One of the primary roles of real estate litigation lawyers in Vietnam is to provide expert assistance in drafting and reviewing real estate contracts. Whether it’s a sale and purchase agreement, lease agreement, development agreement, or joint venture contract, these lawyers ensure that the contracts are legally sound, protect their clients’ interests, and align with Vietnam real estate laws. They meticulously analyze contractual terms, identify potential risks, and negotiate on behalf of their clients to secure favorable terms and conditions. Additionally, real estate litigation lawyers in Vietnam advise clients on compliance with regulatory requirements, disclosure obligations, and the use of standard industry terms.

Property Due Diligence

Before engaging in any real estate transaction, thorough property due diligence is essential to assess the property’s legal status, ownership, and potential risks. Real estate litigation lawyers in Vietnam conduct comprehensive due diligence investigations, examining land titles, encumbrances, permits, and zoning regulations. This diligence helps clients make informed decisions about the viability and potential risks associated with a property investment. Identifying any legal issues or discrepancies beforehand allows clients to mitigate risks and address potential challenges proactively.

Navigating Land Use and Ownership Issues

In Vietnam, land use rights are a complex aspect of real estate transactions. Real estate litigation lawyers in Vietnam assist clients in understanding the various types of land use rights, such as leasehold, freehold, and land use rights for foreign investors. They provide guidance on land use planning, land allocation, and conversion procedures. Furthermore, these lawyers help clients navigate land ownership disputes, boundary disputes, and issues related to the acquisition of land-use rights. Their expertise in land laws and regulations ensures that clients’ property rights are legally protected, and they can confidently proceed with their real estate investments.

Dispute Resolution and Litigation

Disputes in real estate transactions are not uncommon, and when conflicts arise, real estate litigation lawyers in Vietnam become crucial advocates for their clients. These lawyers are experienced in handling a wide range of real estate disputes, such as breach of contract claims, eviction actions, title disputes, construction disputes, and enforcement of property rights. They assist clients in exploring alternative dispute resolution methods, such as negotiation, mediation, and arbitration, to reach amicable settlements and avoid costly litigation when possible. However, if litigation becomes necessary, real estate litigation lawyers in Vietnam represent their clients in court proceedings, presenting compelling arguments and evidence to protect their clients’ property rights and financial interests.

Regulatory Compliance and Government Approvals

Real estate projects often require various government approvals and permits. Real estate litigation lawyers in Vietnam are well-versed in the regulatory landscape and assist clients in obtaining the necessary approvals, permits, and licenses from relevant authorities. These lawyers navigate the bureaucratic process, ensuring compliance with construction regulations, environmental laws, and other legal requirements. Their expertise expedites the approval process, enabling clients to proceed with their real estate developments and transactions in a timely and compliant manner.

How Real Estate Litigation Lawyers in Vietnam Could Help?

In conclusion, real estate litigation lawyers in Vietnam play an indispensable role in the country’s thriving property market. With their deep knowledge of Vietnamese real estate laws, regulations, and market practices, they guide clients through the complexities of real estate transactions, protect property rights, and resolve disputes effectively. Whether assisting with contract drafting, due diligence, land use issues, dispute resolution, regulatory compliance, or government approvals, real estate litigation lawyers contribute significantly to ensuring a transparent and secure real estate market in Vietnam. Their expert guidance and representation are essential for investors seeking success and stability in this vibrant and rapidly evolving sector while doing business in Vietnam.

Read More

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read More

Can Foreigner Authorize Other Person to Perform Transfer of Properties in Vietnam?

 In the complicated situation of the Covid-19 epidemic, the Government continued to implement policies to restrict entry to Vietnam, thus many transactions were canceled or delayed. That has caused many obstacles for foreign individuals and organizations wishing to perform transactions in Vietnam. We refer to the transfer of home ownership for foreign individuals who cannot enter Vietnam to participate in signing transfer contracts and other related transactions i.e. sell or buy an apartment or a house located in Vietnam.

Pursuant to the law on housing, foreign organizations and individuals have the right to own house in Vietnam, before the time limit of the homeownership, the homeowner is entitled to gift or sell their house(s) to entities eligible for the homeownership in Vietnam; if not, their house(s) shall be under ownership of the State. Regarding the house ownership term, if a foreign organization or individual sells or gifted to a domestic organization, household, individual, or a Vietnamese citizen residing overseas, the buyer or recipient will acquire a long-term ownership of the house. If the house is sold to a foreign organization or individual eligible to own housing in Vietnam, the buyer or recipient may own the house for the remaining period. When this period expires, if the owner wishes to have this period extended, the State shall consider granting an extension. The seller or giver must pay tax and other amounts to state budget as prescribed by Vietnam’s law.

In accordance with the law on housing transactions, the seller or transferor of the commercial house sale and purchase contract must meet the following conditions:

He/she is the homeowner, or the person permitted and authorized by the homeowner to enter into housing as prescribed in this Law and law on civil; if the agreement of commercial housing is transferred, he must be the buyer for housing of the investor or the transferee of the agreement on housing sale;

If the entity is a person, he must have full civil capacity to enter into transactions in housing as prescribed in law on civil; if the entity is an organization, it must have legal personality.

Article 195 of the 2015 Civil Code stipulates: “A person who is not an owner of property has the right to dispose of property only under the authorization of the owner or according to the provisions of law.”

Clause 2 Article 55 of the Law on Notarization 2014 stipulates: “In case both the authorizing party and authorized party cannot appear together at the same notarial practice organization, the authorizing party shall request the notarial practice organization of the place of residence of the authorizing party to notarize the authorization contract; the authorized party shall request the notarial practice organization of the place of residence of the authorized party to further notarize the original of this authorization contract and complete procedures for notarization of the authorization contract.”

In order to perform the house purchase and sale transaction or in other words to buy a apartment or sell a house in Vietnam, the parties to the house transaction need to agree to make a sale contract or a document on the transfer of a commercial house sale and purchase contract. In case a foreign house owner cannot enter directly to sign a contract, he/she may authorize another individual or organization in Vietnam to perform instead. However, the authorization document needs to be notarized at the competent authority. In case a power of attorney is notarized at a competent agency in a foreign country, it is required to be notarized, legalized, and authenticated in accordance with regulations of the foreigner country (apostille) before that document can be used in Vietnam.

Nguồn: https://antlawyers.vn/library/can-foreigner-authorize-other-person-to-perform-transfer-of-properties-in-vietnam.html

Read More