Foreign printing and packaging equipment providers eye Vietnamese market

HCMC – Foreign providers of machinery and equipment in the packaging and printing industry are increasingly promoting their products to penetrate the Vietnamese market, as seen at the international exhibition Vietnam Print Pack 2017 that kicked off in HCMC on October 5.

The exhibition is taking place at the Saigon Exhibition and Convention Center in District 7, featuring 480 booths of 300 enterprises from 11 countries and territories.

Hank Kan, business and marketing director of SBL Machinery Co Ltd., a Taiwanese manufacturer and provider of packaging machinery, said the company’s products are shipped to European countries for many years. However, SBL has recently seen great opportunities for selling its products to Vietnam, as the country is attracting heavy foreign investments while its production is posting strong growth.

Hank Kan said the company wants to promote its products to local producers, and finds a major distributor who will represent SBL in the Southeast Asian nation.

He believed at least Vietnam-based Taiwanese companies will order SBL’s products, adding that producers from other countries may do so, as the company’s products are of high quality and competitively priced.

This is the first time Konia Minolta Business Solutions Vietnam has exhibited its products – digital label printers and inkjet printers - at the annual event. Le Minh The, its head of business and marketing division, said the printing products manufactured on the latest technology is very easy to use, helping enterprises save time.

Nguyen Van Dong, chairman of the Vietnam Printing Association, said printing and packaging exhibitions in the Asia have recently attracted many exhibitors and visitors, as Southeast Asian nations have achieved strong growth in the printing industry, especially the packaging segment.

Many enterprises told the Daily that Vietnam holds strong appeal to worldwide producers to build factories here, as the country has competitive advantages in terms of market and manpower. Meanwhile, domestic producers seeking to enhance competitiveness have no way but to improve their production efficiency.

Besides, the demand for consumer goods, packaged foods, bottled beverages and pharmaceuticals is rising, leading to an increase in packaged products.

Industry insiders said packaging is the decisive factor behind customers’ decision to purchase a product. Customers are more demanding, requiring packaging to be not only convenient but also safe and environmentally friendly. Therefore, enterprises in the packaging sector that want to survive should apply advanced technology.

According to foreign experts and companies, the local packaging sector has yet to develop. Thus, many providers of machinery and equipment for producers have realized considerable potential and major advantages in Vietnam. This is why they have joined exhibitions, and some have set up representative offices in order to provide their products in a timely manner.

The organizers of Vietnam Print Pack 2017 – the Vietnam National Trade Fair and Advertising Company (Vinexad) and Yorkers Trade and Marketing Service Co Ltd. - said the local packaging and printing industry has developed quite high, with average expansion at around 15-20% of production value. Hence, the domestic market is quite appealing to international machinery and equipment providers.

Source: The Saigon Times

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

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at (+84) 24 32 23 27 71.

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Child Adoption by Foreigners

Presently, there are many foreign people want to adopt a Vietnamese. Besides, the law of Vietnam also has strict regulations for child adoption by foreigners.

First is the adoption of specific child by foreigners. The Adoption Act 2010 defined that the Vietnamese residing abroad and foreigners permanently residing overseas are allowed to adopt specific child in the following cases:

As stepfather or stepmother of the adopted person;

As uncle or aunt of the adopted person;

Has adopted children who are siblings of the children that are adopting;

Adopt children with disabilities, HIV / AIDS or other fatal diseases;

As foreigners who are working and studying in Vietnam for at least 01 years.

In which the 4th case is a special case that are encouraged by the State with simpler procedures than other cases.

The order and procedures for adoption of child will be conducted as follows:

The profile of child adopting people includes:

+ Application for adoption by name;

+ A copy of the passport or replacing document that have the same value;

+ The written permission for child adoption in Vietnam;

+ The psychological and family investigation;

+ Documents certifying health status;

+ Documents certifying income and assets;

+ Judicial record;

+ Documents certifying marital status;

+ Documents evidencing eligible for child adoption by name.

+ In case of specific child adoption for children over 5 years old and two or more siblings, the record must clearly state the psychological preparation plan for children, preparing conditions for children to integrate into the new family, culture and society environments.

The above documents are issued and certified by the competent authority where the child adopting people permanently reside. To be certified by the State of Vietnam, it should be certified through the procedure of consular legalization.

The profile of children to be adopted includes:

+ Birth certificate

+ Certification of health issued by the district or higher health authorities;

+ Two full body and looking straight images, which was taken within 06 months

+ Documents about the noteworthy characteristics, preferences and habits of children.

These papers are issued by nurturing organizations or natural parents / guardians of children.

Profiles of the child adopting person and the child being adopted are submitted directly at the Bureau for adoption. The case that cannot submit the profile directly at the Bureau for adoption, the child adopting person have to authorize by written document their relatives residing in Vietnam to submit the profile at the Bureau for adoption or send the profile through post office in the form of guarantees.

In the procedure of adoption of specific children with disabilities, HIV / AIDS or suffering from serious diseases, Vietnam law allows the free implementation of procedures to find alternative families and introduce children for adoption. The meaning of this is to shorten the procedure, creating condition for these children to be adopted and nurtured in an enabling environment.

After receipt of the application for adoption, Bureau of adoption will check and appraisal the profile to determine that the child adopting people was certified by the competent authorities of the country where he or she resides that he or she satisfy the eligibility for child adoption under the laws of that country and under the laws of Vietnam.

Towards the child to be adopted, after receiving profile from natural parents or guardians of the child, Bureau for adoption has the responsibility to inspect children’s record, conduct consultation with the natural father / mother or the guardians of child about the child adoption for foreigner during 07 working days.

Within 07 working days from the expiration date of changing opinion about the child adoption for foreigner of the natural parents or guardians of children, if children are eligible to be adopted by foreigner, who are entitled to adoption by name, Bureau for adoption will report the Department of Justice, Department of Justice will certify by document that the children eligible for adoption by foreigner. Finally, Department of Justice submits to the Provincial People’s Committee decided to allow the foreigner to adopt the children.

Second is the adoption of child not by name with foreign element. The adoption of child not by name with foreign element is the cases when Vietnamese residing abroad, foreigners reside in the country in which that country is a member of international treaties on child adoption with Vietnam and adopt Vietnamese children; Vietnam citizens residing in Vietnam adopt foreign children; foreigners permanently residing in Vietnam adopt Vietnamese children.

For the adoption case that not by name, the order and procedures will include:

+ The profile of people that want to adopt children should be submitting to the Bureau for adoption through the adoption agencies of that country that are licensed to operate in Vietnam. If that country does not have adoption agencies licensed to operate in Vietnam, the adoption profile should be submitting to the Bureau for adoption through diplomatic representative offices or consular office of that country in Vietnam.

+ The profile of children being adopted will be submitted by natural parents or guardians of the children at the Bureau for adoption.

+ The Bureau for adoption receives, inspect and evaluate profile of the child adopting people and children being adopted.

Compared to the case of adoption by name with children with disabilities, HIV / AIDS or other serious diseases, the case of adoption not by name, the Department of Justice has to implement the procedure to find alternative family and introduce children for adoption. The meaning of these two procedures is to encourage local Vietnamese permanent residing in Vietnam to adopt Vietnamese children, enabling Vietnamese children to live, learn and develop in their own homeland. Only when the above procedure to find alternative family and introduce children for adoption have finished without any local people want to adopt that children, the Department of Justice will consider deciding for the children to be adopted by foreigner.

The notice period to find alternative family is regulated as 60 days, during this period, if any Vietnamese wants to adopt children, they should contact the Commune People’s Committee where children resides to consider and settle the adoption. If time runs out 60 days, the Department of Justice has to prepare a list of children who need to find alternative families and submit to the Ministry of Justice.

On the other hand, within 30 days after receiving profile from foreigner that want to adopt Vietnamese children, the Department of Justice has to review and introduce children to be adopted on the basis of children with no domestic adoption. After introducing children to be adopted, the Department of Justice reported the Provincial People’s Committee for comments.

The case that the Provincial People’s Committee disagrees, they have to send a written document stating the reasons and submit to the Department of Justice. On the other hand, the case that the Provincial People’s Committee agrees, within 07 working days, the Provincial People’s Committee decided for children for abroad adoption.

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Draft law doubles foreigners' realty ownership terms in Vietnam

If passed, the new law will give foreigners a 99-year lease for properties in special economic zones.

Vietnam’s government has expressed support for a new draft law that would give foreigners 99-year leaseholds on properties they buy in key investment areas.

The Ministry of Planning and Investment presented the bill to the cabinet on Wednesday, suggesting the leasehold duration for foreigners in special economic zones should be nearly doubled from the current 50 years.

Vietnam has 18 special economic zones and is developing three more in Quang Ninh Province near the Chinese border, the central province of Khanh Hoa, and Phu Quoc Island in the southern province of Kien Giang.

Prime Minister Nguyen Xuan Phuc said the bill had been carefully drafted but needed to stand out to draw more investment to the zones.

The bill will be reviewed by the legislative National Assembly for approval this October.

Vietnam opened up its housing market to outsiders in July 2015, allowing foreign investment funds, foreigners with valid visas, and international firms operating in Vietnam and overseas to buy unlimited residential properties with a leasehold of 50 years.

There are around 82,000 foreigners working and living in Vietnam. Before the amendments to the Housing Law, each of them were elegible to buy one apartment providing they were either married to Vietnamese nationals, held managerial positions or had contributed to the country.

Industry insiders believe that easing ownership restrictions has created more interest in the local housing market, but many people complain that regulations and paperwork are still very complicated for foreign buyers.

Meanwhile, many Vietnamese are pouring money into overseas properties, particularly in the U.S., which PM Phuc says is a sign that Vietnam’s investment environment needs to improve.

Vietnamese ranks ninth among foreign buyers of residential properties in the U.S., according to the 2017 Profile of International Activity in U.S. Residential Real Estate issued by the U.S. National Association of Realtors last month.

The report said Vietnamese people spent over $3 billion buying homes across the Pacific in the year ending March 2017.

Source: e.vnexpress

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FDI firms fret over social, health insurance for foreigner

Foreign invested enterprises in the southern province of Binh Duong are anxious about social and health insurance regulations for non-resident employees, heard a dialogue between the provincial government and foreign investors on September 26.

In particular, foreign nationals who have work permits in Vietnam, trade certificates or practicing licenses will be subject to compulsory social insurance contributions from early next year.

This is the first time they will join the social insurance program in the country. However, local enterprises employing foreign nationals are fretting over the possibly complicated procedures.

Enterprises are wondering who will be obliged to join the program, how much they will contribute, and how they will benefit from it. Another question is how they can recover their fees in case they quit their jobs.

Duong Thi Anh Tuyet, administration and human resources director of Rheem Vietnam Co Ltd in Binh Duong, said the regulation will come into force within the next three months, but there has been no decree or circular guiding its implementation to date. Therefore, her company is deeply concerned.

Foreign workers often work on a fixed term. Thus, after they retire or quit their jobs, they will have to come back to Vietnam to claim insurance allowances. Enterprises asked whether that amount of money might be enough to pay air tickets for foreign employees to return to Vietnam to complete the procedures for their social insurance claims.

A representative of Liwayway Vietnam JSC said the company applies two ways of salary payment. If employees are dispatched to Vietnam, the parent company will pay salaries for them, while those who sign labor agreements with the Vietnam-based company, the local subsidiary will pay them.

As such, the representative pondered how Liwayway Vietnam will have to pay social insurance for its foreign employees starting January 1. Other foreign invested enterprises also shared the same concern.

In addition to social insurance, many enterprises complained purchasing health insurance for their foreign employees is tough. They have already bought health insurance for their foreign staff but most of them do not use such insurance coverage.

They said a majority of health workers in Binh Duong Province could not communicate with their foreign workers in English, so they had no way but to employ interpreters.

Therefore, they suggested social insurance agencies allow the insured to take medical examinations and treatments at international hospitals so that their foreign employees can talk directly with doctors.

However, the problem is that the province does not have many international hospitals and clinics, so purchasing health insurance will put foreign employees in a tricky situation.

In a related development, fresh foreign direct investment (FDI) pledges in the province have amounted to roughly US$2 billion in the year to September, a year-on-year rise of 27% and 40% higher than the full-year target. The figure includes more than US$1.1 billion registered for 148 new projects and US$765 million as additional funds for 87 operational ventures.

Source: The Saigon Times

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

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at (+84) 24 32 23 27 71.

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Are there any differences in filing a Trademark application in Vietnam as compared to your home country?

The legal protection of Trademark is based on the principle of territoriality. That means each nation is free to regulate the use of intellectual property on its own territory. For instance, it can only grant protection titles to the domestic brands while denying foreigners. In order to overcome such problems, nations around the world have been reaching and signed a number of international treaties which was built on the principle of territoriality. There was a remarkable achievement that nations established certain rules that all member States must respect. Member States shall protect trademarks of companies of other member States as if they were his own citizen (so called principle of national treatment). In other words, assuming that Vietnam and France are member States, Vietnam is bound to treat French enterprises the same rules that it applies to Vietnamese firms. As a consequence, there are not any differences in principle when filing a Trade mark application in Vietnam as compared other State members. However, practically, for filing a Trade mark application in Vietnam, there might some additional requirements or language of necessary documents as following:

1.Right to register marks: According to Article 89 Law on intellectual, foreign individuals not permanently residing in Vietnam and foreign organizations and individuals without production or business establishments in Vietnam could not file applications for Trademark registration by themselves but through their lawful representatives in Vietnam by POA (Power of Attorney).

2.Solving the language barrier: Foreign individuals permanently residing in Vietnam and foreign organizations and individuals whose production or business establishments are in Vietnam could file applications for Trademark by themselves. However, the language barrier might be the problem because Applicants shall fill a standard form in Vietnamese and submit this form to the NOIP accompanies by documents evidencing the registration right, the priority right or other documents supporting the application. All these documents could be made in another language but shall be translated into Vietnamese at the request of the State administrative body for industrial property rights

To be accepted, the sample of the Trademark must be clearly described by words in order to clarify elements of the mark and the comprehensive meaning of the mark, if any; where the mark consists of words or phrases in a foreign language, such words or phrases must be translated into Vietnamese.

3.Time for request your priority claim: Priority claim shall not be automatically recognized in Vietnam, therefore the claim for the priority right must be clearly stated in the application accompanied by a copy of the first application certified by the first IP office.

4.Applying “First to use” or “first to file” principle: In Vietnam, “first to file” principle is applied, that is far cry from so-called “first to use” countries. The “first to file” principle means rights in a trademark generally are acquired only through registration therefore a trademark owner can apply to Trademark registration without having used it anywhere and at any time. Kindly be advised that if you come from the United States, the Philippines, Australia, and New Zealand where trademark rights are generally acquired through use.

All in all, these treaties built up a harmonized system that benefits the international firms to protect their Trademark outside of the home nation. The local qualified Intellectual property Agent might support the international firms in overcoming the barrier of language and these additional requirements.

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Non-Compete Agreement In Labor Contract

The principle “freedom to work” is recognized and respected by the Labor Code 2012. However, this regulation may harm legitimate business interests of employers when employees, during the performance of the labor contract or especially after the termination of the labor contract, reveal the business or technology secrets to compete with the employers. Therefore it is necessary to create the limits on the freedom to work, for the purpose of preventing workers from revealing employers’ business or technology secrets. Law in many countries around the world has recognized “Non-Compete Agreement” as a tool to enforce security programs.

The Labor Code 2012 and sub-law documents do not mention to the definition of “Non Compete Agreement”, but make the provision that: “When an employee performs a job which is directly related to business or technology secrets as prescribed by law, the employer may reach a written agreement with the employees on the content and duration of protection of business or technology secrets, and benefits and compensation in case of violation by the employees”.

The definition of “Non-Compete Agreement” is inferred by explaining the provisions of law and referred to the articles of legal experts. “Non-Compete Agreement” is a legal contract between an employee and an employer, for a purpose of preventing the worker from competing directly or working for a competitor during the performance of the labor contract or especially after the termination of the labor contract. Thereby, we can infer that only when employers have business or technology secrets, they have the right to make Non-Compete Agreement. Moreover, the legitimate business interests that are protected must be legal, unique, influence the maintenance, stability and development of business activities.

Analyzing the provision “Non-Compete Agreement”, we can conclude that, the employees adjusted by the “Non-Compete Agreement” is the worker who is directly involved in business or technology secrets (such as the senior managers, senior technicians and others are obliged to keep business or technology secrets). The Labor Code 2012 has regulated that the “Non-Compete Agreement” must be on text.

The provision of Non-Compete Agreement is necessary for employers to protect business or technology secrets, but it is difficult for workers to find job after the contract terminates. Therefore, Non-Compete Agreement should balance the interests between employers and employees by setting reasonable limits in time, geographic scope and particular industry or activity.

(i) For restriction on time, the Labor Code 2012 does not specify restriction period or the point of starting restriction period. This is entirely upon the parties. However, Non-Compete Agreement can not be enforced unless it specifies a reasonable restriction period. Referring to the law of some European countries (Germany, France) and Asian countries for example in China, the maximum restriction time is 02 years, to ensure that employees have conditions to find new jobs.

Moreover, it provides opportunities for employers to motivate, improve the technology and business secrets to develop. On the other hand, law in some other countries distinguishes between highly skilled workers (group 1) and unqualified employees (group 2). Spanish law is a typical example, the maximum restriction period is two years for workers in group 1 and six months for group 2.

(ii) Restriction on geographic scope is not regulated in Vietnamese law. Meanwhile, most countries such as France, China and Russia all regulate that the restriction is on the whole country. However, due to differences in society, economic and education conditions, Vietnam can hardly regulate like that. On the other hand, when making the provisions of the restrictions on geographic scope, it is necessary to base on the performance of the company, the method of production, the size of and the type of company.

(iii) For restriction on particular industry or activity, most courts tend to consider the work that employees will work in the new labor contract. Normally, if the new job is similar to the old one, it will not be approved by the court. Under the Labor Code 2012, the content of restrictions on particular industry or activity when employees enter into agreement include: (i) obligation to keep trade information confidential (business secrets, technology secrets) ; (ii) not be able to work for the competitor of former employers or to conduct his own business competing with former employers.

Labor Code in our country does not specify the scope of the restriction on particular industry or activity, it depends entirely on the will of the parties. Non-Compete Agreement can not be applied to all jobs, but only to those who hold business and technology secrets. For every type of work there will be a different range of restrictions. The scope of the restriction is not exceeding the employee‘s professional capacity and ensuring the opportunity of works in the future.

The benefit that employees receive when signed the Non-compete Agreement can be the opportunity for promotion, high salary, and commendation if the Non-Compete Agreement is made while the labor contract is valid. If the Non-Compete Agreement is applied after the labor contract terminates, employees shall receive the compensation. The amount of compensation is upon the agreement of the parties and must be satisfactory with the restriction of job opportunities. There are some cases that employees may not be entitled compensation are to violate the Non-Compete Agreement or die or prison sentence.

According to the Labor Code 2012, in case of violating the non-compete contract, employees have obligation to compensate, but it does not give specific compensation amount as well as the method of compensation. In order to claim compensation, employers must demonstrate these following factors: (1) the violation of the Non-Compete Agreement; (2) actual damage (the lost revenue and profit of the employer); (3) the causal relationship between the infringement and the damage; (4) fault of the employee. The amount of compensation must correspond to the amount of lost revenue or profit. In addition, employees must return the non-owned assets that are exploited and developed to compete with former employers. Moreover, employees must repay the compensation and other benefits paid by former employers if agreed in the agreement.

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Regulation on Grid Connected Solar Power Investment Project

The Ministry of Industry and Trade has recently issued Circular 16/2017/TT-BCT on project development and the model purchase contract for solar power projects.

Accordingly, the grid connected solar power investment projects are regulated as follows:

– The investor can only set up a solar power investment project included in the provincial and national level solar-power development plan; or provincial and national power development plan that are approved.

– The contents of the solar power investment project must comply with the regulations on management of investment in construction and the following requirements:

+ Evaluate the impact of solar power project connection plan on the power system in the area.

+ Having equipment connected to the SCADA system or moderation information so that the forecast information on electricity output can be transmitted per hour to the regulated agency.

– The equity ratio of grid connected solar power projects should not less than 20% of the total investment.

– The area of long-term land use shall not exceed 1.2 ha/01 MWp.

Circular 16/2017/TT-BCT takes effect on October 26th2017.

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