How to Set-up Travel Services Business in Vietnam

Foreign investor could only set-up joint venture with Vietnam travel agency to set-up travel services business in Vietnam because transport of passenger belongs to investment areas with conditions applied to foreign investor inVietnam.

No one could deny that information technology has tremendously changed the way travel services business operates. The use of booking reservation system application on smartphone and internet are widespread that make travel has never been easier. Foreign investor would be interested to explore the travel services market. However, 100% foreign owned company is not allowed to set-up in travel services business in Vietnam. As this investment area is conditional, it is advised that a law firm in Vietnam should be consulted to ensure compliance with local regulations.

The application process and documents requirements are briefly as following:

I. Required documents:

-Application for the International Travel Business License (form);

-Certificate of business registration (copy – certified)

-Business plan for the international travel agency;

-Tour schedule

-Proof of at least 4 years of experience in international travel business operations

-Certified copies of the tourist guides’ cards whereby at least 3 international tourist guides are required

-Confirmation of bank deposit (as per regulations);

-Proof of office premises or legally registered place of business

II. Business License Application Procedure

-Submission of the required documents to the correct authority (Department of Culture, Sports and Tourism of the province/city where the business is headquartered).

-The Department of Tourism of the province/city completes the records of appraisal and submits a written request with the agency’s records to the Minstry of Culture, Sports and Tourism in Vietnam within ten working days from the date of receipt of a valid application. When cases are not eligible for the proposed permit to the state agencies, the provincial tourism department shall cite the specific reasons for refusal.

-The state management agency of tourism (VNAT – Ministry of Culture, Sports and Tourism) is responsible for reviewing and licensing the international travel business within ten working days from the date of both receipt of the file and written request of the state agency of tourism in the province. In case of refusal, the ministry shall state the specific reasons to the state and provincial tourism authorities

III. Number of records

– Submission to the Department of Culture, Sports and Tourism: 01

– Tourism Authority Filed in: 01

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Obligations of Cosmetics Manufacturers and Importer in Vietnam

Cosmetics lawyers inVietnam

The cosmetics manufacturers and importers who are responsible for putting cosmetic on the market have the obligations as the following:

-Be responsible for all contents declared in the cosmetic product proclamation report, for the safety, the efficiency, and the quality of the product; and guarantee that the circulated products satisfy all requirements of the ASEAN Cosmetic Treaty and the Appendix of Vietnam law;

-Follow, discover, and confiscate immediately the unqualified cosmetic, as well as implement the confiscation announcement from the state authority office and inform to the state authority office about the confiscation; punctually deal with the consumer’s complaints of the cosmetic’s quality and compensate for consumer’s loss in accordance with the regulation; refund to the buyer the produced cost in the maintenance, transportation, and circulation process;

-Report to the Medicine Management department – the Health Ministry within 07 days since the date receiving the first feedback from this side-effect in case finding side-effects which are serious and could damage the consumer’s life because of the cosmetic product’s quality;

-File the Product Information File (PIF) in at least 03 years since the latest manufacture lot is put on the market and presented to the checking and inspecting functional office when requested;

-Obey the Vietnamese Regulation and Law on the intellectual ownership. When having the conclusion of the state competent offices on the intellectual-ownership law-breaking label and industrial design, the organizations, the individuals must stop manufacturing, trading, and importing in order to conduct of changing the label and the industrial design as provided, and be responsible for refunding and resolving all damages (if any).

Besides, Vietnam law also provides that the organizations which manufacture the cosmetic must deploy to apply and satisfy principles, the “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN).

Last but not least, the organizations, the individuals must conduct requirements of state competent offices about checking and inspecting the cosmetic quality, confiscating the violated cosmetics, and be entitle to complaints about the conclusion and the law-breaking judgment form in accordance with the law regulation on the complaint and the denouncement.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

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Marriage Involving Foreigners in Vietnam

Cross culture marriage in Vietnam is getting more popular due to the further integration of Vietnam into world’s economy and people relocation for better living.

It is understandable that a foreigner who works and lives in Vietnam wishing to register marriage with a Vietnamese or even another foreigner under Vietnam laws.

However, it is challenging for foreigners to be aware of the legal provisions governing the issue of marriage involving foreign elements in Vietnam. The parties involved in the marriage should to go through not so simple administrative procedures, because of the complexity of managing and protecting the legitimate rights of not only Vietnamese citizens, but also foreigners, to be governed under the Law on Civil Status. It is not unfamiliar when husband and wife agree to sign prenuptial agreement, agreements on personal assets and properties, and agreements to separate assets and properties during the marriage time.

Procedures for Registration of Marriage in Vietnam

According to the current law provisions, the competence to register marriage between a Vietnamese citizen and a foreigner belong to the District People’s Committee where the Vietnamese citizen is residing. In addition to papers relating to declarations and documents that must be prepared, in order to marry a Vietnamese citizen, a foreigner have to submit papers proving their marital status issued by a competent authority of the country which he/she is a citizen. The certificate issued no more than six months, up to the time of application, confirming the current no spouse. In case, foreign law does not provide for the granting of papers certifying the marital status, the papers shall be replaced by the foreign competent bodies certifying that such persons meet all the marriage conditions under the laws of that country. Documents, papers issued by the competent authority of the foreign country must be notarized, legalized and authenticated.

After submitting complete, and valid dossiers and paying the necessary fees, if the marriage conditions are fully met, the chairperson of the District People’s Committee will approve the application. Upon marriage registration, both husband and wife must be present at the head office of the People’s Committee, and both will sign in the marriage certificate.

Foreigner’s Challenges?

To register marriage involving foreign in Vietnam, foreigners must have a marital status documents issued by a foreign competent authority where he/she is a citizen. Depending on the country, the paper proving citizen’s marital status issued to citizens when they apply for marriage registration is different. Most of the difficulties the foreigners encountered are the application for the issuance of papers abroad and at the same time they must carry out administrative procedures for the legalization of that document at the competent authority in Vietnam. Thus, the time required to prepare necessary documents and documents is generally long with strict administrative procedures.

In fact, marriages involving foreign couples encounter procedural difficulties and take a considerable amount time for preparation.

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What Lawyers Should Not Promise in Vietnam?

Lawyers in Vietnam have to follow the law in order to provide good legal services to clients.

In Vietnam, the law has continuously played an important role in the life and contribute to protect and maintain the stability and development of society. In the trend of integration of the world economy, the role of the law has once again been confirmed with a new level in order to contribute to promoting the integration of Vietnam into world economy and opens a new opportunity for those who are practicing law in general and lawyers in particular in Vietnam.

In general, lawyer profession in Vietnam has been a noble profession for the purpose of contributing to the protection of justice, while contributing to the socio-economic development. In reflection, lawyers themselves take professionalism as the basic foundation of the profession, and should always have the responsibility to self-improve skills and widen knowledge in various areas to meet the growing demands as Vietnam develops i.e. corporate, commercial, investment, construction, labour, dispute resolution, debt recovery…etc.

Sometimes, when providing legal services to clients in handling disputes claim against damages for breach of contractual obligations, or obtaining licenses in setting up company, work permits, temporary residence cards, the customer has requested a lawyer to promise and guarantee the results of the works.

The lawyer, whom represents the client to protect the legitimate rights and interests of the client, has to follow the law, and the ethics. Responding to the request of the client to promise and guarantee the result, the lawyer shall refuse because the outcome of such will depend on the facts and legal grounds of the matters.

The lawyer shall collect comprehensive information from the client then analyze possibilities of outcome. Lawyers should not promise the results or the percentage of success which could potentially lead to the wrong decision made by the client. If the results are not as customer’s expectation, it will be a great loss to the prestige, and the image of lawyers. A good lawyer will have the skills to analyze problems, look at the details, and propose solutions but cannot guarantee the outcome of a case. Each case is different and there are too many unknown factors, and the unanswered questions.

In a litigation case, the lawyers will tell the customers what they are facing, what the lawyers could do, the best situation and what is worst. Good lawyers will know how to analyze and clarify the issue. Both the client and the lawyer should have a positive attitude to solve the problems in regard to the disputing matters.

The only thing ANT Lawyers could promise in any case is that we will follow the laws of Vietnam.

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Why Foreigners Find it Difficult to Purchase Properties in Vietnam?

The policy to open up the real estate market allowing foreigners to enter Vietnam and make investment in Vietnam through purchasing property is expected to warm up the real estate market and boost up the economy.

Our real estate lawyers in Vietnam have always followed the changes in regulations to update client. Officially, from July 1st, 2015 the amendment of Housing Law will come into effect. The new provisions about foreign ownership of houses in Vietnam are the highlights of the Housing Law 2014. In the Housing Law 2014, there is a separate chapter which state clearly about application subjects, requirements, rights and duties of foreigners who are allowed to buy houses in Vietnam. The application subjects have been extended compared to those in the old rules. The new regulations of Housing Law make the real estate market in Vietnam warm up.

When the Housing Law 2014 officially comes into effect, the decree which is expected to give guidance on implementation will be enacted. The regulation regarding buying houses by foreigners will be included in a specific documents having details instructions. According to the lawmakers, the Housing Law 2014 will have tighter guidelines in matters of real estate purchased by foreigners.

However to date, there is not any legal documents enacted to give instructions about the new provisions and about the Housing Law 2014 in general. According to Law on Promulgation of legal documents in 2008, the validity of legal documents is stated in the documents, but not fewer than 45 days from the day of enactment. This is a gap in Vietnam Law when the new Housing Law could not implement due to the lack of instructions and that the Resolution No. 19/2008 / QH12 about a pilot regulations on buying houses by foreign organizations and individuals has expired. Therefore, under the new rules, on July 1st, 2015 foreigners would not be able to buy house in Vietnam yet. This delay creates a legal gap and brings about difficulties and confusion.

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Construction Operation License Instead of Contractor’s Permits for Foreign Contractor in Vietnam

Operation License forConstructions in Vietnam

The foreign contractors are only permitted to carry out construction activities in Vietnam so long as being granted construction operation license by Ministry of Construction as per the Construction Law.

EPC Contractors have increasingly been interested to learn the requirements of licenses and permits to operate in Vietnam. It is advised that the construction law firm in Vietnam with lawyers specializing in construction area to assist the foreign contractors to understand the legal frameworks, and requirements of foreign contractors before and after taking on construction projects in Vietnam after bidding result.

The regulations and procedures are promulgated in Decree No. 59/2015/NĐ-CP on management of construction investment projects and Circular No.14/2016/TT-BXD guiding on licensing construction activities and management of foreign construction contractors in Vietnam.

Investment in construction activities has been growingly rapidly. In order to meet the tender conditions and take part in construction activities in Vietnam, foreign contractors shall follow the regulations in Vietnam and obtain proper license during the preparation and the execution of the construction of the project.

Prior to construction operation license, foreign constructors have experienced another form of permit named contractor’s permits for foreign contractors in Vietnam. These are two concepts however the process of registration and document requirements are not so different.

There has been an effort to harmonize and reduce differences and conflicts arisen in many fields of laws regulating the mentioned subject and the new provisions of the Law on Bidding, Construction Law and the Investment Law to be issued in 2014 which establish a stable legal framework for the implementation of foreign contractor’s bidding and construction activities in Vietnam. This changes does not differentiate which position the foreign contractors are appointed from the lead contractor, the main contractor, contractor to subcontractor consortium. Unlike domestic contractors, foreign contractors must be granted construction operation license for each awarded contract. The amendment from the contractor’s permits for foreign contractor contribute to the unity of the same concept in different legal instruments regulating the license procedure of foreign contractors operating within the territory of Vietnam, and limit the unnecessary overlaps, difficulties to law interpretation and application of legal entities.

We shouldn’t forget to mention that the amendment of the foreign contractor’s construction operation license is to increase the relevance between the name and nature of the licensed activities of foreign contractors in construction operation. One of the initial conditions to a foreign contractor to be licensed is when the contractor has won a bid or been selected to be sub-contractor of an investment project. Therefore, the terms construction operation license shall demonstrate the role of the contractor in the construction projects they have been participated in.

The new construction operation license for foreign contractor is expected to be easier to relate to when foreign contractor take part in construction project in Vietnam. This would attract more foreign contractors to undertake construction projects in Vietnam to bring in the technology equipment, as well as the management skills to Vietnam.

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The changes of laws will be monitored by ANT Lawyers. For advice or service request, please contact us via email ant@antlawyers.vn or call +84 28 730 86 529

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