Trade remedies in Vietnam

When participating in the process of international economic integration, every country voluntarily cut off the trade barriers for goods to easily circulate among each other. However, in the legal framework of World Trade Organization (WTO), the countries are allowed to impose trade remedies if satisfying certain conditions. Vietnam has officially become a member of WTO since July 11 2007 and the imposing of these trade remedies are regulated in Law on foreign trade management 2018.

 

Anti-dumping Law Firm in Vietnam

According to Law on foreign trade management 2018, trade remedies includes anti-dumping measure, countervailing measure and safeguard measure. Specifically, (i) Anti-dumping measure imposed on imports into Vietnam is a measure imposed on products that are dumped when being imported to Vietnam, which causes material injury or threaten to cause material injury to domestic industry or retard the establishment of the domestic industry; (ii) Countervailing measure imposed on imports into Vietnam is a measure imposed on products that are subsidized when being imported to Vietnam, which causes the material injury or threat of material injury to the domestic industry or retards the establishment of the domestic industry; (iii) Safeguard measure imposed on foreign products imported into Vietnam is measure imposed on increased imports of particular products to Vietnam, which causes the serious injury or threat of serious injury to the domestic industry.

The domestic industry mentioned above refers to the producers as a whole of the like products within the territory of Vietnam or those whose collective output of the like products constitutes a major proportion of domestic production of those products. Besides, the injury to domestic industry shall be determined on each level: (i) Material injury to domestic industry; (ii) threat of material injury to domestic industry; (iii) material retardation of establishment of a domestic industry; (iv)serious injury to domestic industry; (v) threat of serious injury to domestic industry.

Due to the imposing of these remedies directly affecting to foreign producer/exporter as well as domestic industry, thus, it is required to comply to six following rules when imposing these remedies:

Firstly, impose measures within the reasonable scope and level for a certain period of time to protect domestic industry, prevent or limit the injury to it;

Secondly, only impose measures after the investigation is carried out transparently and fairly in accordance with regulations of law and based on determinations of the investigation;

Thirdly, decisions on the investigation and the imposition of trade remedies shall be published;

Fourthly, if the duty rate of an official trade remedy is higher than those of a provisional trade remedy, the difference of duty will not be collected;

Fifthly, if the duty rate of an official trade remedy is lower than those of the provisional trade remedy, the difference of duty will be returned; 

Sixthly, if the Minister of Industry and Trade does not impose an official trade remedy, the duty of provisional trade remedy that has been collected or the amount for ensuring the payment of temporary trade remedy duties shall be returned.

If Client needs any more information or request for legal advice regarding trade remedies measures including: anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, Our international trade and tax lawyers, and antitrust lawyers in Vietnam at ANT Lawyers, a Anti-dumping law firm in Vietnam have always followed the development of situation and update the clients on relevant matters.

 

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Anti-dumping Law: The Basic Concepts

1. What is dumping?

In international trade, dumping is a phenomenon occurs when a commodity is exported at a price lower than the selling price of that item in the domestic market of the exporting country. Therefore, it is simple to understand that if the export price of a commodity is lower than its domestic prices, the product may be considered to be dumped.

 

Anti-dumping Law Firm in Vietnam

2. Why is dumping?

There are many causes of dumping in international trade. In fact, there are many cases that seller deliberately dumping in order to achieve certain benefits such as: Dumping to eliminate competitors in the import market to become monopoly and gain market share; Selling at low price to acquire foreign currency… Sometimes, the dumping is reluctant because the manufacturer and exporter cannot sell product, the production is stalled then the long-term storage products could be corrupted… Hence, they have to sell off to recover capital.

In international trade, the anti-dumping tax may be imposed without regarding to the reason why the manufacturers dumping. Dumped into foreign markets is often perceived as a negative phenomenon because it reduces the competitiveness of prices and the market share of domestic products of importing countries.

However, dumping can have positive impacts on the economy: consumers benefit from low price goods; if dumped goods are inputs of other manufacturing sector then the low raw material prices can make certain growth of that industry… Therefore, not all acts of dumping will be applying the anti-dumping measures.

As regulated by the World Trade Organization (WTO), the anti-dumping measures can only be applied in certain circumstances and must meet certain conditions. Specifically, the anti-dumping measures are applied only when the following three conditions are met: The imported goods are dumped; the manufacturing sector of similar products of the importing countries is significantly affected; there is a causal relationship between the dumping of imports goods and losses mentioned above

3. The anti-dumping tax?

The anti-dumping tax is the additional taxes besides the normal import tax, which is imposed on foreign products that are dumped into the importing country. This type of tax is to prevent dumping and eliminate the damages caused by the dumping of imported goods. In fact, the anti-dumping tax is used in many countries as a form of “legal protection” for its domestic production. In order to prevent the abuse of this measure, the WTO member countries have together agreed on the provisions required to comply regarding the investigation and imposition of anti-dumping tax, concentrated in an Agreement of the WTO on anti-dumping, which is the ADA Agreement.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our international trade lawyers, countervailing duty lawyers and antitrust lawyers at ANT Lawyers - A Anti-dumping law firm in Vietnam  could be of help.

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How Decision 942/QD-TTg on Crypto Currency Would Partly Solve Challenges for the E-Government of Vietnam?

With the strong development of information technology, forms of online transactions has also gradually become a trend and develop strongly in Vietnam. In recent years  crypto currency has created a new phenomenon for the global economy that some countries have been deploying to use such as El-Salvador. However, not all countries accept crypto currencies especially countries such as China, Russia, Thailand… are vehemently opposed to this type of crypto currency for fear of risks to the national economy.  In Vietnam, there has been a number disputes involved crypto currency transactions through investment, purchase and sales, which lacked legal framework for resolving, creating challenges for lawyers, and dispute resolving authorities.

 

Fintech Lawyers in Vietnam

The State Bank of Vietnam also has a document prohibiting credit institutions from using crypto currency as a currency or means of payment. However, besides the potential risks, crypto currencies with the advantages of being extremely fast, convenient features which only need an Internet connection and wide application scope should be exploited. Recently, the Prime Minister issued Decision 942/QD-TTg dated June 15, 2021 approving the Strategy for E-Government Development towards Digital Government in the period of 2021 – 2025, with orientation to 2030 pilot using crypto currency. Specifically, the Prime Minister assigned the State Bank to assume the prime responsibility for researching, building and piloting the use of crypto currency based on “blockchain” technology. This is considered a bold step, but it is suitable for the context that illegal “underground” crypto currency exchanges are sprouting up and also opening up a lot of potential for the country’s economy.

In fact, in recent years, although the state has issued a document not to recognize crypto currencies, the opening and operation of illegal crypto currency trading platforms  are still common which many Vietnamese people participate. The demand for Vietnamese people to own crypto currency is quite high which crypto currency when approved by the Government will be positively received by Vietnamese people. On the other hand, recently crypto currency has appeared in the media with incidents relating to scams, illegal trading platforms which are not protected by law. But in another aspect, crypto currency transactions also help users perform many purposes such as Hence the Decision 942/QD-TTg issued timely, although still in the testing phase, would partly solve the needs of the economy as well as create strict management and control to protect people. In addition, with the pilot recognition of crypto currencies under the management of the state, it also opens up opportunities for Vietnam to promote the development of new technologies in the e-Government development strategy towards digital government.

Some positive aspects can be mentioned when crypto currency is allowed to be used such as creating convenience in transactions. Specifically, users do not have to go through any stage or intermediary and are not limited, regardless of time and location during the transaction.

Decision 942/QD-TTg also poses many challenges for the Government in management and control. With the “mobility” characteristic, the control of “virtual currency” is not simple, especially for the country which is not yet a highly developed in information technology. Therefore, in order to put “virtual currency” into use, it is necessary to ensure the development of the corresponding technology platform, and at the same time to build a strict legal framework to minimize risks for users. On the other hand, if the “virtual currency” is not well controlled, it will become a money laundering tool, transnational money transferred from illegal co-economic activities such as smuggling, opium, terrorist financing… Another important issue is that our country’s Internet system is still unstable. Therefore, in order to be able to circulate virtual money conveniently, it is necessary for Vietnam to further develop the Internet system to ensure stability in transactions.

The crypto currency in Decision 942/QD-TTg shows the Government’s aspiration for innovation and determination in moving closer to the goal of national financial inclusion and a digital economy. However, the implementation needs to have a roadmap and orientation as well as a strong legal foundation to ensure effective implementation. Our fintech lawyers in Vietnam at ANT Lawyers – law firm in Vietnam will always follow up with development of legal framework in crypto currency and blockchain technology in Vietnam to provide update to clients.

 

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10 Questions to Ask Before Set-up Company in Vietnam

Foreigners are encouraged to make investment in Vietnam through direct investment by Setting up company in Vietnam.

However there are restrictions in some cases in regard to investment capital, investment area, special licenses required. The investor is suggested to consult with a law firm in Vietnam for advice and service offering.

 

Before setting up business in Vietnam, ask yourself the following questions:

1. Which business should I invest in Vietnam?

There are non-conditional investment areas and conditional investment areas.  Establishing company in the non-conditional investment areas are more simple than in conditional investment areas.  Investment in IT services, manufacturing, management consulting, business promotion are a few samples of non-conditional investment areas. Example of conditional investment areas are real estate, trading, travel agencies, freight forwarding…which are more complicated with investment conditions.  Investment conditions might also be changed over the time depending on the WTO commitments which Vietnam enters.

2. What should I name the business in Vietnam?

The company in Vietnam has to have Vietnamese name, and English name. The company could also have abbreviated name.  The name of the company in Vietnam indicates the structure of the company, the business lines, and the name that differentiate against other businesses.  For instance, the company could be named Alpha consulting limited liability company.

3. Where should I register the address of the business in Vietnam?

Not every address could be used to register a company.  The address has to be an address of a house with leasing agreement or office building which owner has license to operate as office building.

4. What is the legal structure of the company?

Depending on the number of investor contributing capital, company could be set-up as one member limited liability company or two or more member limited liability company or joint stocks company.

5. How much capital is required to set-up a company in Vietnam?

The investment amount depends on the business plan and is subject to the approval of the provincial Department of Planning and Investment evaluating application dossier. In some business areas like real estate, banking and finance, minimum capital is required. In general for non-conditional investment area, the law does not specify the minimum capital to establish a company in Vietnam however the State agencies that evaluate investment plan could reject the investment project which are not feasible. Bank statement in foreign banks could be used to prove sufficient fund of investment capital.

 

6. Whom will be legal representative and work permit in Vietnam?

The investor will need to appoint the legal representative in Vietnam to oversee the business performance and take legal responsibility in Vietnam. If the legal representative is an expatriate, whom is a capital contributing member or owner of a limited liability company or a member of the Board of Management of a shareholding company which is registered to operate in Vietnam, he or she will be exempted from work permit in Vietnam. Otherwise, he or she will need to have a work permit to work in Vietnam legally.  The work permit holder would then apply for temporary residence card to live in Vietnam as long as the work permit allows.

 

7. How long does it take to set-up a company in Vietnam?

It depends on what type, scale, and whether or not conditions are required. For a simple minimum capital without conditions to set-up, it would take 30 working days. For setting up company in conditional investment areas i.e.  trading company in Vietnam, time would be lengthen due to the involvement of a number of State agencies approving the investment project and it would take 60 working days. For setting up company in other investments in areas requiring conditions to meet, time might be taken depending on the type of conditions and the government agencies evaluating the conditions of investment.

8. Whom will be granting the investment license in Vietnam?

For most of the investment projects, the provincial state agencies with the approval of the Department of Planning and Investment (DPI) will be granting the Investment Certificate in Vietnam. However, depending on the type, scale, and whether or not conditions are required, other Vietnam State agencies might be involved. For the case of trading company, ministry of trade and commerce, ministry of finance, provincial people’s committee will be reviewing the investment application dossier as well.

 

9. What are the tax liability in Vietnam?

Major taxes in Vietnam are corporate income tax, import and export tax, value added tax, and personal income tax in Vietnam. In some special areas, there are other taxes. The corporate income tax is currently at 22% and will reduce to 20% beginning 2016. Export is mostly encouraged as such the export tax is 0 however there are special cases when export tax is larger than 0. Import tax varies according to tariff. Value added tax is mostly at 10% however in some cases, VAT could be 5% or 0%. Personal Income tax varies according to income level and is applicable from VND 9,000,000 above.

10. What are mandatory reports submissions requirement in Vietnam?

Companies are required to keep accounting books, prepare and submit tax reports on monthly, quarterly and annually. Foreign companies are also required to have financial audit taken before the financial year end. The financial year in Vietnam is from January to December and the deadline to submit financial report is March 30th for the previous year. Other reports are required to be submitted at other State agencies.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

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Register Invention in Vietnam

Invention means a technical solution in the form of a product or process which is intended to solve a problem by application of natural laws. Each invention is the result of a serious, painstaking work-study process by the inventor. However, right of industrial property shall only be established by the registration procedure, and the scope of protection is defined in the patent. Therefore, without prior registration at governmental competent authorities, right of industrial property could be violated.

 

Register invention in Vietnam

With highly professional staff and great experience in IP aspect, ANT Lawyers would like to support you in registering patent in Vietnam as follow:

Required information

Title of invention/ utility solution;

Name, address and nationality of the applicant (s);

Name, address and nationality of the investor (s);

Information of priority document: Nation, number of applications and dossiers for priority right;

International dossiers/ or publication (if any).

Document

For dossiers applied as national application

01 original Power of Attorney – POA (No need for notarization). The Copy of POA shall be accepted for filling but the original shall be submitted within 03 months since the date of filling.

02 copies of an invention description. An invention description must consist of the section of invention description and the invention protection coverage;

02 Drawings, photos or description (if any);

01 notarized copy of document to prove prior right (only for dossiers have prior right under the Paris Convention). The document shall be submitted within 03 months since the date of filling.

For dossiers applied as PCT application.

03 English declaration for registration originating in Vietnam

02 copies of an invention description (including images, if any);

02 written request of protection;

Related documents (if any);

Dossiers can be submitted at National Office of Intellectual property or International Office or sent via post office.

ANT Lawyers -  A Law firm in Vietnam is supported by a team of experienced patent, trademark, design attorneys with qualification and skills handling full range of legal services relating to intellectual property rights in Vietnam. We have specialized in the preparation and registration of patents, trademarks and designs for our clients.

 

 

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How to Terminate the Employment Contracts in Vietnam Due to Economic Reasons

Termination of a labor contract is an event that terminates the employment relationship between the employee and the employer. In particular, there are many cases of termination of labor contracts such as the labor contract expires, the work stated in the labor contract has been completed, both parties agree to terminate the labor contract, the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative,…

 

In case more than one employee face the risk of unemployment for economic reasons, the employer shall propose and implement a labor utilization plan in accordance with labour code. Specifically, the labor utilization plan must contain the following main contents: list and number of employees who continue to be employed, employees sent for re-training to continue using; list and number of retired employees; list and number of employees transferred to work part-time; employees must terminate labor contracts and measures and financial sources to ensure the implementation of the plan.

In case the employer cannot employ and have to dismiss employees, the employer shall pay job-loss allowances to the employees. Accordingly, the employer shall pay a job-loss allowance to an employee who loses his/her job and has worked regularly for the employer for 12 months or longer. The job-loss allowance is equal to 1 month’s wage for each working year, but must not be lower than 2 months’ wage.

The working period used for the calculation of job-loss allowance is the total time during which the employee actually works for the employer minus the time during which the employee benefits from unemployment insurance in accordance with the Law of Social Insurance and the working period for which the employer has paid a severance allowance to the employee. The wage used for the calculation of job-loss allowance is the average wage in accordance with the labor contract during 6 months preceding the time the employee loses his/her job.

The dismissal of more than one employee in accordance with this regulation may be implemented only after discussion with the representative organization of the grassroots-level employees’ collective and notification 30 days in advance to the provincial-level state management agency of labor.

It is important for the employer to consult with dispute lawyers specializing in labour matters for the avoidance of potential dispute with the employee, and cause negative social impact when deciding to terminate contract due to economic reasons.

ANT Lawyers in a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn

 

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What Are Penalty for Violations in the Field of Construction in Hanoi?

In any field, mistakes can occur but differ in actual consequences. Especially in construction activities, the consequences are difficult to predict, the violations in construction activities, to any extent, affect individuals and collective users. Therefore, the Hanoi City People’s Council issued Resolution No.07/2014/NQ-HDND prescribing the fine levels for a number of administrative violations in the field of construction.

 

This Resolution prescribes the fine levels for a number of administrative violations in construction activities in the Government’s Decree No. 121/2013/ND-CP of October 10, 2013 on sanctioning of violations. administration in construction activities; real estate business; exploitation, production and trading of construction materials; technical infrastructure management; housing and office development management (abbreviated to Decree No. 121/2013/ND-CP) in Hanoi city.

The Resolution provides a number of violations and penalties for corresponding acts of investors; of contractors and other organizations and individuals. In particular, the fine level prescribed for an administrative violation in the Resolution is equal to twice the fine level for the corresponding administrative violation in Decree No. 121/2013/ND-CP. The fines prescribed in Chapter II of this Resolution are those imposed on organizations. For the same administrative violation, the fine of an organization is 2 times that of an individual.

The titles competent to impose fines for administrative violations specified in Decree No. 121/2013/ND-CP are competent to impose penalties corresponding to the fines for the prescribed violations. in chapter II of this Resolution. Specifically, the subjects competent to sanction administrative violations under this Regulation include: Construction inspectors; Head of a specialized inspection team; Chief Inspector of Department of Construction; Chief Inspector of Ministry of Construction; Police; Market management; Presidents of People’s Committees at all levels

Above are the main contents of Resolution No. 07/2014/NQ-HDND of the Hanoi City People’s Council stipulating the fine level for a number of administrative violations in the field of construction, individuals and organizations should grasp to ensure their legitimate rights and interests. For compliance in the area of construction, it is important to consult with construction lawyers in Vietnam for advice.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

 

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What Are the Order of Disciplining Employee in Vietnam?

Labour discipline is the provisions on compliance matters relating to work time, technology and production and business management in labor regulations. It can be understood simply that when an employee violates the labor regulations, depending on the extent and regulations of the company, he or she will be subject to disciplinary action. The order of disciplining labor is conducted in accordance with the provisions of labour code in Vietnam. Failing to follow the order of discipline would lead to potential disputes which both employer and employee should consult with dispute lawyers in Vietnam for advice to protect their best interests.

 

Firstly, the employer must confirm the employee’s violations

In the cases where an employee found committing a violation, the employer shall issue an offence notice, inform the employee representative organization (or the employee’s parent or legal representative if the employee is under 18) in order to hold a disciplinary meeting.

Secondly, issuing notice of the disciplinary meeting

This step is only carried out in case the employer detects violations of labor discipline after the time when the violation has occurred, there are sufficient grounds to prove the fault of the employee and the statute of limitations for disciplining.

The employer sends the notice with the content, time and place of the meeting to handle the labor discipline to the organization representing the labor collective at the grassroots level; workers; In the case of a person under 18 years old, there must be the participation of a parent or legal representative.

The employer must ensure these recipients receive notice before the meeting takes place and conduct a labor discipline meeting with the participation of the notification components.

Thirdly, conducting a disciplinary meeting

It is mandatory to have the minutes of the disciplinary meeting, which have to be approved by the participants before the end of the meeting. The minutes shall bear the participants’ signatures. If any participant that refuses to sign the minutes, there should be explanation.

Fourthly, disciplinary decisions

The person that concludes the employment contract on the employer’s side also has the power to issue the disciplinary decision. The disciplinary decision shall be issued before expiration of the original or extended time limit for penalty imposition specified the labour code.

The disciplinary decision shall be sent to the employee (or his/her parent or legal representative if the employee is under 18) and the employee representative organization.

ANT Lawyers is an employment dispute law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients.

 

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Draft Decree on E-transactions in the Government Management of Land

In the era of technology 4.0, the application of science and technology in all activities of social life in general is increasingly focused. Vietnam government has introduced a number of policies on the application of electronic technology in administrative procedures, particularly the Draft Decree on Electronic Transactions in the management of land.

 

Electronic transactions in the government management of land are the implementation of administrative procedures in the field of land; share and provide land information and data; share and provide documents among state agencies.

On the implementation of administrative procedures on land, according to the Draft, the Government stipulates 17 administrative procedures on land to be carried out by electronic methods, such as: land acquisition; land allocation, land lease, change of land use purpose; first registration of land and properties attached to land, first-time certificate of land use rights, ownership of houses and other land-attached assets and additional registration of assets attached to land;… However, in order to carry out electronic procedures, agencies and organizations providing/using electronic transaction services in the field of land must meet certain conditions in accordance with the provisions of this draft.

Regarding sharing and providing information and land data, in the draft, the Government clarified the cases; responsibilities of agencies that share and provide land information and data and responsibilities of land users and users of electronic data. However, the draft did not specify what information allowed to be shared.

The draft also specifies the assurance of security and safety in e-transactions on land and the settlement of arising problems. Accordingly, disputes related to e-transactions in Land areas are settled based on the provisions of the Law on Electronic Transactions, this Decree and other relevant laws. In addition, the draft also provides regulations on the right to appeal, denunciations and regulations on sanctions.

Electronic signatures in the field of land include digital signatures and other types of electronic signatures as prescribed by law. Agencies, organizations and individuals have the right to discuss and select the type of appropriate electronic signature.

The implementation of electronic transaction in the land management will improve the efficiency of land, and real estate transaction from management, development, sales and purchase, and could help reduce the inaccuracy and avoid potential disputes.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients

 

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