HCMC proposes no-bid contracts for urgent infrastructure projects

HCMC on Monday asked the central Government for permission to award no-bid contracts for investors to implement urgent infrastructure projects.

These projects, which will be carried out in the public-private partnership (PPP) format, include phases one, two and four of Ring Road No. 2 project, and high-rise parking lots at September 23 Park, Ly Thuong Kiet residential area, Gia Dinh Park, District 8 bus terminal, and districts 5 and Tan Phu.

To ease traffic pressure on the main roads leading to Tan Son Nhat International Airport, the city suggested the Ministry of Transport reduce aircraft movements at the airport at rush hour and increase those at night.

The city also asked the Government for approval to proceed with a plan to test emissions of motorcycles with engine capacity of 175cc or higher in the 2018-2020 period. After 2020, the city will send a report on the plan to the Prime Minister before it carries out the next phase of the plan, in which motorcycles with engine capacity below 175cc will be tested for emissions.

For waterway transport, the city suggested the Ministry of Transport adjust the waterway transport plan for Cat Lai Port to make it compatible with the city’s general waterway transport development plan until 2020.

Source: The Saigon Times

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HCMC calls for private investment in boat stops along Saigon River

The HCMC government is calling for private waterway transport and tourism services enterprises to invest in stops along the Saigon River to spur waterway tourism in the city.

The municipal Departments of Transport and Planning-Architecture, and districts across the city are jointly drawing a plan to develop a waterway system and examine positions for such stops. Bach Dang Wharf on the Saigon River is considered the central station to serve passenger transport activities and waterway tourism.

In addition, Nha Rong-Khanh Hoi Port, which is near Bach Dang Wharf, has good facilities and convenient traffic systems for passenger transport and tourism development.

Relevant agencies proposed developing the port to cater to domestic and foreign passenger ships.

However, the city has difficulty promoting waterway tourism due to a lack of connectivity between waterways and roads, and underdeveloped ports and wharfs.

According to a waterway tourism development plan in the 2017-2020 period approved in June, the city will focus on waterway tourism promotion.

Accordingly, at least seven waterway tourism routes will be launched in the Saigon, Dong Nai, Nha Be, Soai Rap and Long Tau rivers as well as canals in HCMC, including the Bach Dang-District 7 route, the route from Bach Dang Wharf to Tau Hu in districts 8 and 5, the Bach Dang-District 9 route, and the route from Bach Dang Wharf to Binh Quoi.

The city targets to attract 450,000 tourists using waterway services next year and the number will increase 15% annually. Waterborne tourism is expected to fetch VND540 billion (US$24 million) in revenue this year.

Source: The Saigon Times

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How to Obtain Business Registration Certificate in Vietnam?

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

The procedure to register for a certificate of enterprise registration of a joint stock company or limited liability with two or more members are herein mentioned:

Dossiers:

i) Application form for enterprise registration

ii) The company’s charter.

iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.

iv) Valid copies of:

Copies of the ID card or other ID papers of founding shareholders and foreign investors/members being individuals; list of authorized representatives of foreign shareholders being organizations.

Decision on establishment, certificate of business registration, or an equivalent document of the organization and the letter of authorization; the ID card or other ID papers of the authorized representatives of founding shareholders and foreign investors being organizations.

If shareholders are foreign organizations, the copy of the certificate of business registration or an equivalent document must be notarized, legalized and authenticated.

The Certificate of Investment registration of the foreign investors as prescribed by the Law on Investment.

State Authority: Business registration office of the province where the enterprise’s headquarters is situated.

Period: within 03 working days from the full receipt of the dossiers

Result: Business registration office shall issue the certificate of enterprise registration or if the application is not satisfactory, business registration office shall inform the applicant of necessary revisions and supplementation to company.

In general, Vietnam government encourages foreign direct investment.  If the investor faces challenges at state authority, whom do not issue notification or request of supplementation to the application for enterprise registration, the investor cold lodge a complaint as prescribed by regulations of law on complaints and denunciation to the state authority to protect its right in doing business and investment in Vietnam. A law firm in Vietnam with expertise in both business registration and dispute resolution could assist the investor in the process.

The enterprise is entitled to do business from the issuance date of the certificate of enterprise registration. For conditional business lines, enterprises are entitled to engage in conditional business lines if they satisfy all conditions and are capable to maintain fulfillment of such conditions throughout their operation.

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

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

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

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

According to the draft law, domestic special economic zones will receive support from the Government to develop basic infrastructure and high-quality human resources, while State management will be streamlined.

The draft law abolishes a number of conditional business sectors and simplifies business registration procedures.

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

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

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

Source: The Saigon Times

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Actively Review and Cut-off Unnecessary Business Conditions

Vietnam Prime Minister Nguyen Xuan Phuc asked the Ministries to research, actively self-review to amend or proposed modifications, cutting business conditions which are not reasonable and unnecessary.

On August 22nd 2017 , under the chairmanship of Prime Minister Nguyen Xuan Phuc, the Government held a legislative session to give comments on the draft law on competition (revised); the draft law amending and supplementing some articles of the law on environmental protection tax; draft law on administrative unit and special economic zones; discuss on the report synthesizing the results of reviews and proposals of ministries and agencies on the drafting of laws to amend and supplement the laws relating to land, construction, housing, business and planning…

According to the Ministry of Planning and Investment, there are still 4,284 business investment requirements and conditions in 243 industries under the management of 15 ministries, which are regulated in 237 legal normative documents. The Ministry of Planning and Investment proposes to abolish all or part of the business investment conditions in finance, location, production capacity, human resources, business methods, planning…

Vietnam Chamber of Commerce and Industry (VCCI) has proposed to abolish 96 conditions of business and amend 13 conditions in 3 sectors: industry, transportation, science and technology.

Regarding the draft law on special administrative and economic units aim to create legal bases for the establishment, development, management and operation of 3 special zones namely Van Don (Quang Ninh), North Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang).

In terms of the draft law amending and supplementing a number of articles of the Law on Environmental Protection Tax, the Prime Minister emphasized that the role of amending and supplementing this law in the context that environmental regulations violation is complicated. complex. According to the Ministry of Finance – the drafting agency, the current environmental protection tax policy has revealed some obstacles that need to be finalized in order to ensure that this is an important economic tool, contributing to limiting the production and use of goods that pollute the environment, encouraging the use of environmentally friendly goods towards sustainable development.

Commenting on the draft Law on Competition, the Prime Minister said that the Ministry of Industry and Trade should thoroughly review the unfair competition practices so as not to overlap with other laws.

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Labour Matters and Labour Legal Compliance

The labor management is one of the most important matters in the operation of enterprises.  For the employee, he or she has to fulfill the job requirements as per labour contract, follow internal labour regulations, and work under the supervision of the employer.  

For employer, complying with  regulations include paying salary, ensuring benefits, and other mandlabouratory compliance as per labour laws and collective labour agreements signed.

The following recaps the labour matters and labour legal compliance according to Vietnam labour laws:

1. To make reports on labor use according to the provisions of Article 6, Circular No. 23/2014/TT-BLDTBXH dated August 29th 2014 (Circular 23).
2. To make periodical reports on the use and change of labor according to the provisions of Point d, Clause 2, Article 6 of the Labor Code 2012 and Clause 2, Article 8 of Decree No. 03/2014/ND-CP and Clause 2, Article 6 of the Circular 23.
3. To make and use labor management books as guided in Article 7 of Circular 23.
4. Build and send wage scales, payroll, technical standards, titles, professional standards and labor norms in accordance with Article 93 of Labor Code 2012 and Chapter III of Decree No. 49/2013/ND-CP dated May 14th 2013
5. To participate and pay social insurance, health insurance, unemployment insurance for employees in accordance with current law.
6. To construct and register the labor regulations of the unit in accordance with Article 119, Clause 1, Clause 2, Article 120 of the Labor Code 2012, Chapter V of Decree No. 05/2015/ND-CP dated January 12th (Decree 05) and Chapter III of Circular 47/2015/TT-BLDTBXH dated November 15th 2015.
7. To develop and promulgate the Grassroots Democracy Regulation; Statute of periodical dialogue in the workplace as stipulated in Decree 60/2013/ND-CP dated June 19th 2013
8. To negotiate, sign and send the Collective Labor Agreement to the provincial labor authority in accordance with Chapter V of the Labor Code 2012, Chapter III of Decree 05 and Article 3 of Circular 29/2015/TT-BLDTBXH dated July 31st 2015 (this is optional).
9. To make explanatory reports on the demand for use, the procedures for the grant and re-grant of work permits and the implementation of reporting regimes according to the provisions of Decree No. 11/2016/ND-CP dated March 2nd 2016 and Circular 40/2016/TT-BLDTBXH dated October 25th 2016 (if employing foreign workers).
10. To formulate and promulgate the Regulation on evaluation of the performance of tasks as provided in Clause 1, Article 12 of Decree 05 (This content is part of the company’s working regulations and we must have this content to be able to unilaterally terminate the labor contract with the employee under Clause 1, Article 38 of the Labor Code 2012).
11. To carry out the procedures for the establishment of a grassroots trade union organization in accordance with the provisions of Paragraphs 1 and 3 of Article 189 of the Labor Code 2012 and Article 5 of the Trade Union Law 2012 (This is not mandatory but depends on the quantity of workers want to join the union of the company).
12. To report on occupational accidents, technical incidents causing serious unsafety and occupational hygiene at the unit as provided in Clause 1, Article 36 of the Law on Occupational Safety and Hygiene 2015 (if any); Periodically report on occupational accidents according to the provisions of Clause 1, Article 24 of Decree No. 39/2016/ND-CP dated May 15th 2016 (Decree 39).
13. To report annually on occupational safety and health as provided in Article 10 of Circular 07/2016/TT-BLDTBXH dated May 15th 2016
14. To declare the fatal occupational accident or serious injury of 2 or more laborers as stipulated in Clause 1, Article 34 of the Law on Occupational Safety and Hygiene 2015; Article 10 of Decree 39 (if any).
15. To monitor, manage and declare the use of machines, equipments and materials with strict requirements on labor safety in accordance with Articles 30 and 31 of the Law on Occupational Safety and Hygiene, Article 16 of Decree 44/2016/ND-CP dated May 15th 2016 (Decree 44) (if any); Circular 53/2016/TT-BLDTBXH dated December 28th 2016
16. To arrange full-time officials working in occupational safety and health in accordance with Article 36 of Decree 39.
17. To arrange staff to work in the health sector in accordance with Article 37 of Decree 39.
18. To provide material allowances to laborers working under dangerous and harmful conditions (if any) according to the provisions of Article 24 of the Law on Occupational Safety and Hygiene 2015; Circular 25/2013/TT-BLDTBXH dated October 18th 2013
19. To review, classify and organize occupational safety and health training for laborers as stipulated in Article 14 of the Law on Occupational Safety and Health 2015; Article 17 of Decree 44.
20. To organize health examination and treatment of occupational diseases for laborers according to the provisions of Article 21 of the Law on Occupational Safety and Hygiene 2015.
21. To compile the workers’ health records and labor sanitation dossiers according to the provisions of Circular No. 19/2016/TT-BYT dated June 30th 2016
22. To allocate and monitor personal protective devices for laborers according to the provisions of Article 23 of the Law on Occupational Safety and Hygiene 2015; Circular 04/2014/TT-BLDTBXH dated Feruary 12th 2014
23. To develop and implement an annual plan for occupational safety and health; Occupational safety and health regulations of the enterprise for each working area; Safe working methods for each type of work; Control of risk and harmful factors; Risk assessment on occupational safety and health; The plan for handling technical incidents causing serious unsafety and emergency rescue as provided in Articles 15, 18, 76, 77 and 78 of the Law on Occupational Safety and Hygiene 2015.
24. To develop a plan for implementation of the month of action on occupational safety and health in accordance with Circular 02/2017/TT-BLDTBXH dated February 20th, 2017

It is important the company to retain law firm in Vietnam with labour expertise to avoid non compliance and disputes to be arisen.

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How to Set-up business in Da Nang?

Foreign investors may invest in the form of 100% capital to establish a limited liability company, joint stock company, partnership company or other forms in investment in Vietnam.

Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates.  Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

A project dossier for Set-up business in Da Nang shall comprise:

• Registration/Request for issuance of Investment Certificate;
• A report on financial capability of the investor;
• Draft of the company’s charter;
• List of members of company;
• Copy of the people’s identity card, passport or other lawful personal certification, for individual members;
• Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;
• Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.
• Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;
• Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;
• The joint-venture contract or Business Cooperation Contract (BCC);
• Other documents required by Vietnam law.

The establishment of a company in Vietnam would take from 30 days.  The extra time might be needed in case the investment area is conditional or the State government needs to examine the investment project.  Minimum capital, special licenses or other conditions might be required in certain investment projects.

The  law  on  investment constantly changes which ANT Lawyers will monitor and provide relevant update

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