Business Lines in the Food Industry of Vietnam

With a population of about 90 million people, Vietnam is a potential market for food industry.

ANT Lawyers Co., Ltd consults and instructs customers to register the appropriate lines of business in the food sector under the provisions of the code system of national economic sector (Decision 10/2007/QD-TTg).

No	Business lines	Code
1	Wholesale of agricultural and forestry raw materials (except wood, bamboo) and live animals;	4620
2	Wholesale of rice;	4631
3	Wholesale of food;	4632
4	Wholesale of beverage;	4633
5	Wholesale of a variety of goods;	4690
6	Retail of victuals, food, beverage, tobacco and pipe tobacco accounting for a large proportion in shops;	4711
7	Retail of victuals in specialized shops;	4721
8	Retail of food in specialized shops;	4722
9	Retail of victuals, food, beverage, tobacco, pipe tobacco in the market;	4781

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Circular 27/2015/TT-BTNMT on Strategic Environmental Assessment, Environmental Impact Assessment and Environmental Protection Plan

From July 15th 2015, Circular 27/2015/TT-BTNMT on strategic environmental assessment, environmental impact assessment and environmental protection plan started to take effect.

Accordingly, the Provincial People’s Committee authorized the management board of industrial zones to evaluate and approve the reports on environmental impact assessment.

This authorization shall apply only to projects under the evaluation and approval competence of the provincial People’s Committee investing in the industrial park.

Provincial People’s Committee is responsible for sending documents to the Ministry of Natural Resources and Environment for comments on the evaluation and approval authorization according to the form provided in Appendix 2.13 enclosed with this Circular.

This Circular replaces Circular 26/2011/TT-BTNMT.

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing representation or legal services in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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Turkey Imposed Anti-dumping Duty on Products of Vietnam

The Ministry of Economy of Turkey has just issued the conclusion on anti-dumping investigations against such products as plywood and polyester textured yarn imported from Vietnam.

According to the investigation report content of the Turkish Ministry of Economy, there are only 2 Vietnam enterprises engaged in providing information to the investigating authorities.

These enterprises will not be subjected to the application of measures against evasion of anti-dumping duty, since they have provided information in full and on time and proved that export products are produced in their company.

Particularly for businesses that do not provide information to the investigating authorities, they will be subjected to the application of tax rate of 240 USD/m3 (equivalent to the anti-dumping duty that has been applied by Turkey to the import goods of China’s enterprises).

The time to apply the tax rate is as soon as the Ministry of Economy published the contents of the investigation in the Official Gazette of Turkey. However, Turkey has also announced that they will review the comments on the report of the investigation of the relating parties.

The case of evading anti-dumping duty investigation for plywood products that are imported from a number of countries, including Vietnam was initiated from the date of May 27th 2015 for plywood products with HS codes: 4412.10; 4412.31; 4412.32 and 4412.39 in the period from 2010 to the present.

Earlier in 2006, Turkey has decided to impose anti-dumping duty for the aforementioned products imported from China, with the tax rate of 240 USD/m3.

Also under the Trade Office – Vietnam Embassy in Turkey, Directorate General for Imports – Ministry of Economy of Turkey has just issued the conclusion for the anti-dumping investigation on polyester textured yarn imported from several countries, including Vietnam.

Based on the conclusion, the Turkey’s investigation agency determined the dumping margin of Vietnam enterprises is 34.81% – 72.56%; Thailand is 8.48% – 37.69%. Directorate General for Imports – Ministry of Economy of Turkey advised related parties to send complaints or feedback on the investigation report. After that, Directorate General for Imports – Ministry of Economy of Turkey will hold separate hearings for each enterprise.

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing representation or legal services in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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Vietnam’s Face Brick is Investigated for Dumping

On August 25th, according to the Vietnam Trade Office in Argentina, the Argentine Ministry of Production has initiated anti-dumping investigations against face bricks products imported from India, Malaysia, Brazil, China and Vietnam.

Accordingly, the brick products with HS code (the code used to classify goods for import tax calculation) that are investigated for dumping during the period from 2013 to 2016 with such code as 6907.90.00 and 6908.90.00.

In which, the alleged dumping margins for face brick products from China is 184.9%, India is 106.64%, Malaysia is 125.76%, Brazil is 22.79% and Vietnam is 29.73 %.

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ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing representation or legal services in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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Anti-dumping Case for Steel Imported from China

The Vietnam Competition Authority (Ministry of Industry and Trade) has just received the dossier requesting the application of anti-dumping measures on H-shaped steel product imported from China to Vietnam.

According to Vietnam Competition Authority, they have received full and valid dossier under the provisions of the anti-dumping law for goods imported to Vietnam.

Within 45 days from the date of receipt of full and valid documents, the investigation agency will assess the dossier and submit to the Minister of Industry and Trade for consideration and decide to or not to investigate.

In order to serve the assessment, as well as ensuring the legitimate rights and interests of enterprises, the investigation agency suggested that domestic enterprises which are manufacturing/trading similar goods to provide the following information : Information on enterprises; design capacity and productivity of the H-shaped steel product in 2013, 2014, 2015 and the first 6 months of 2016; the company’s comments on the case (agree, oppose, no opinion); any documents/evidence that companies consider relevant to the case.

Since the law on trade remedies is issued, Vietnam has 4 times issued the investigation decision on anti-dumping against imported steel products to Vietnam. Accordingly, there is one case of anti-dumping duty application to cold-rolled stainless steel product and 3 self-defense cases for the steel billet and long steel products (the Ministry of Industry and Trade has signed decision to impose safeguard duty for plated steel and painted galvanized steel.

The application of trade defense measures will certainly cause conflict of interest between the 2 groups of enterprises. However, according to the Vietnam Steel Association, the application is necessary to protect domestic production.

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ANT Lawyers is Vietnam exclusive member of Prae Legal, an international law firm network, providing full ranges of legal services in Vietnam

ANT Lawyers has law offices inHanoi, Ho Chi Minh, and Da Nang City. For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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Decree 46/2015/ND-CP on the Quality Management and Maintenance of Construction Works

On May 12th 2015, the Government issued Decree 46/2015/ND-CP on the quality management and maintenance of construction works, which entered into force on July 1st 2015. The Decree stipulates that construction contractors and equipment supply contractors must be responsible to investors on warranty for the part of jobs they have done.

For construction items, new construction work or renovation, upgrading, the minimum warranty period is 24 months from the date of acceptance (for the construction works, construction items belong to special level and level I); not less than 12 months for the construction works and construction items belong to the remaining levels. As for housing, the warranty period shall comply with the provisions of the law on housing, namely, not less than 60 months for condominiums from 9 floors or more and other types of housing that are built by the State budget; not less than 36 months for apartment from 4 – 8 floors and minimum of 24 months with the remaining houses.

In addition, the Decree also stipulates about the minimum amount of guarantee for works using State capital. Accordingly, for the construction works belong to special level and level I, the minimum guarantee amount will equal to 3% of the contract value; with construction works belong to the remaining levels, the minimum guarantee amount will at least equal to 5% of the contract value. For construction works that use other sources of capital, we can refer to the above minimum amount of guarantee to apply.

Also under this Decree, the owner or manager using construction works must check frequently, regularly and irregularly to timely detect signs of deterioration and damage of the works, equipment installed in works as basis for the maintenance of works; the maintenance must be carried out under an annual maintenance plan and the maintenance procedure should be approved…

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• Commercial
• Dispute Resolution
• Debt Recovery
• Employment
• Foreign Investment
• Intellectual Property
• International Trade and Taxes
• Infrastructure and Project
• Civil Matter

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

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CAPITAL CONDITIONS IN AIR TRANSPORTATION BUSINESS

Air transportation is the conditional business line and conducted by air transportation enterprises. Air transportation business includes air transportation activity, advertising, marketing and sale of air transportation products on the market for the purpose of making profit.

Therefore, trading in this business line is subject to strict rules of law. The conditional business lines in the field of civil aviation are detailed in Decree 92/2016/ND-CP dated July 1st 2016.

Accordingly, in the field of air transportation, business must meet capital requirements as follows:

The minimum capital requirement to establish and maintain air transportation business:

• Operating up to 10 aircrafts: 700 billion VND for enterprises engaging in international air transportation; 300 billion VND for enterprises only engaging in domestic air transportation;
• Operating between 11 and 30 aircrafts: 1,000 billion VND for enterprises engaging in international air transportation; 600 billion VND for enterprises only engaging in domestic air transportation;
• Operating more than 30 aircrafts: 1,300 billion VND for enterprises engaging in international air transportation; 700 billion VND for enterprises only engaging in domestic air transportation;

The minimum capital requirements to establish and maintain general air transportation business: 100 billion VND.

Air transportation business that has foreign investment must meet the following conditions:

• The foreign parties take up less than 30% of charter capital;
• Must have at least one Vietnam individual or legal entity hold the largest part of the charter capital. In case Vietnam legal entity has foreign investment capital, the foreign capital share should not exceed 49% of the charter capital of the legal entity.

The transfer of share and capital contribution of air transportation business without foreign investment to foreign investor shall be made only after 02 years from the date of issuance of the air transportation business license.

Enterprises have to send the share and capital transfer proposal to foreign investor to Civil Aviation Administration of Vietnam, which includes: The transferee, transfer condition, the number of transferring shares and capital contribution; Development plans for aircraft teams, business plan, development strategies referred to in Paragraph 1, Article 9 of the Decree 92/2016/ND-CP (if any).

Within 05 working days from the date of receiving the proposal from business, Civil Aviation Administration of Vietnam will report to the Ministry of Transportation the appraisal results.

Within 05 working days from the date of receiving the appraisal result report of the Civil Aviation Administration of Vietnam, the Ministry of Transportation will consider approval or disapproval and clearly state the reasons.

ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

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