What Are New in Real Estate Trading Business From 2021?

The Law on Investment 2020 takes effect from January 1, 2021 with many new highlights, including theamendment of conditions for real estate business in the Law on Real Estate Trading 2014.

 

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Specifically, amending regulations on real estate business conditions in the Law on Real Estate Trading 2014 as follows: “Any organizations and individuals trading in real estate must set up enterprises or cooperatives (hereinafter referred to as an enterprise), except for the case specified in Clause 2 of this Article. ”

Clause 1, Article 10 of the 2014 Law on Real Estate Business stipulates that “Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.”

In addition, the Law on Investment 2020 also amends regulations on the competence to permit the transfer of all or a portion of real estate projects. For real estate projects approved by investors or granted an investment registration certificate in accordance with the Law on Investment, the competence and procedures for the transfer of all or a portion of the project comply with regulations of the Law on Investment. For real estate projects not falling into the above cases, the competence to permit the transfer of all or a portion of real estate projects is as follows: Provincial People’s Committee decides to allow the transfer of all or a portion of the real estate projects for projects decided by the provincial People’s Committee to invest; The Prime Minister shall decide to permit the transfer of all or a portion of real estate project to projects for which the investment is decided by the Prime Minister.

In case organizations, households or individuals sell, transfer, lease, or lease purchase real estate on a small scale, rarely, it is not required for real estate enterprise to be set up, but they must declare and pay taxes according to the provisions of law.

 

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Da Nang and Korea cooperate in investment

On December 3, 2020, the representative of Da Nang city held an online investment promotion conference called “Investing in Da Nang” for Korean investors and businesses. The conference with the participation of more than 100 Korean investors and businesses has helped investors and businesses have a new view in their investment implementation in Da Nang market.

 

The conference has promoted and introduced the business environment and cooperation opportunities investment in Da Nang in the fields of high technology, information technology, services, and smart city support. Recently, in the context of investment capital inflows from Korea tends to shift to Southeast Asia due to the influence of the Covid-19 epidemic and the US-China trade war, Vietnam is considered to be a country which meet enough political, economic, labor and technological conditions to make the shifting investment in an easy way.

At the conference, representatives of Da Nang city affirmed that foreign investment is one of the important resources for the socio-economic development of the city. For many years, the city has always set the goal of attracting investment as the top target, in addition, the city has actively improved the investment environment, issued many preferential policies and supported foreign investors who invest in the city.

In 2020, despite the impact of the Covid-19 pandemic, there are still many investment projects of Korean investors making investments in Da Nang. Until November 2020, Korea is the country which has the most number of projects in Da Nang with 232 projects, and ranked 4th in terms of capital, with a total registered investment capital of more than 376 million USD, episode medium in the fields of services, real estate, industrial production and information technology.

In the current period, with the selection of a politically stable investment location, high quality labor, reasonable investment costs and good disease control ability, Vietnam is the top destination for Korean investors to set up company, set up factory, and make investment in Vietnam. Currently, many large enterprises in Korea have signed Memorandum of understanding with Da Nang city as the first step of cooperation and investment development in Da Nang in the coming years.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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How Cross-Border Supply of Services Works?

Bilateral or multilateral free trade agreements between countries are formed majorly based on the WTO agreement system. In particular, GATS as an Agreement under the WTO system, is the first and only set of multilateral rules governing international trade in services. Ways or modes of trading services are basic provisions of GATS, including: Cross-border supply (mode 1), Consumption abroad (mode 2), Commercial presence (mode 3), Presence of natural person (mode 4). The categorization of modes covering its own regulations depends on the territorial presence of the supplier and the consumer at the time of the transaction. 

 

International trade dispute law firm in Vietnam

According to GATS, cross -border supply means supply of a service from the territory of one Member into the territory of any other member, and supplier and consumer of a member do not present within the territory of other member. Consumption abroad means supply of a service in the territory of one Member to the service consumer of any other member. Presence of natural person means supply of a service by a service supplier of one member, through presence of natural persons of a member in the territory of any other member. It should be noted that cross-border supply of services is defined depending on each Agreement. Under CPTPP, cross-border supply includes modes 1, 2 and 4 above. In this article, cross-border supply is equivalent to mode 1, under GATS.

When participating in GATS, members make commitments for market access with respect to each mode of service supply and sub-sector. The GATS provides a set of general principles that all WTO members must adhere to, which there is no unnecessary barriers applied to trade. However, GATS expressly recognizes the rights of member governments to manage and regulate the supply of services in pursuit of their own policy objectives. GATS also does not interfere in internal affairs ad policies of members. Therefore, the governments absolutely have the right to decide and adopt their trade policies. The enterprise of a member must comply with domestic regulations in the territory of other member where they conduct business and trade in services and refer to that Member’s Schedule of Specific Commitments to understand market access obligations and national treatment.

Most sub-sectors do not restrict market access and national treatment for foreign suppliers providing cross-border services in Vietnam (legal, accounting, auditing, tax, architecture, advertising, management consulting, …). Although the market access is not restricted, it does not mean that the foreign suppliers freely provide services in Vietnam without satisfaction of conditions or without the consent of the competent state authorities. To consider this mater and have a correct understanding, the national treatment principal should be reviewed, it requires that each member shall accord to services and service suppliers of any other member the treatment no less favourable than that it accords to its own like services and service suppliers. Having said that, in the event that a member maintains business conditions for the domestic services and service suppliers, these conditions may also apply to the foreign services and service suppliers.

Such as accounting service business, foreign service suppliers are not restricted in market access and national treatment under the Schedule of Specific Commitments in Services. It means that a foreign accounting firm can provide accounting services to a Vietnamese enterprise. However, accounting service is a conditional business applicable to domestic firms. According to the national treatment principle, Vietnam has the right to impose similar conditions on foreign suppliers. Reference to the provisions of Vietnamese laws, the foreign accounting firm must fully meet the conditions of head office and personnel to be licensed its business in Vietnam. Further, there are tax liabilities arisen which obligations of registration and declaration depend on particulars of transactions. It is suggested that international trade lawyers are consulted to avoid potential disputes or non-compliance of cross-border supply of services.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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Processing and Manufacturing Industry Attracts Foreign Capital

Although the amount of registered and disbursed FDI capital was lower than the same period in 2019 due to the influence of Covid-19, the reduction has been significantly improved.

 

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The latest report of the Foreign Investment Department (Ministry of Planning and Investment) shows that, as of November 20th 2020, the total newly registered capital, adjusted and contributed capital to buy shares of foreign investors reached 26.43 billion USD, equaling 83.1% compared to the same period in 2019. The realized capital of foreign direct investment projects was estimated at 17.2 billion USD, equaling 97.6% compared to the same period in 2019.

Also according to the report, the processing and manufacturing industry is still the field attracting foreign capital, when there are 12.7 billion USD invested in this field, accounting for 48.2% of total registered investment capital. The field of electricity production and distribution ranked second with total investment capital of over 4.9 billion USD, accounting for 18.7% of total registered investment capital. Followed by the real estate business, wholesale and retail with a total registered capital of nearly 3.8 billion USD and 1.5 billion USD.

In terms of investment partners, Singapore is leading with a total investment of nearly 8.1 billion USD, accounting for 30.6% of total investment in Vietnam; Korea ranked second with a total investment of 3.7 billion USD, accounting for 14% of total investment capital. China ranked third, with a total registered investment capital of 2.4 billion USD, accounting for 9.1% of total investment capital. Followed by Japan, Taiwan, Thailand…

In terms of the number of new projects, Korea ranked first (573 projects); China ranked second (311 projects); Japan ranked third (251 projects); Hong Kong ranked fourth (164 projects)…

Commenting on the foreign investment situation, the Foreign Investment Department assessed that, due to the impact of the Covid-19 pandemic, production and business activities were affected, the implemented investment capital of foreign investment projects in 11 months, although decreasing compared to the same period in 2019, but the decrease rate has improved. Many FDI enterprises are gradually recovering, maintaining good production and business activities, creating momentum for faster growth in the last months of 2020.

Considering the strong decline in global investment due to the effects of the Covid-19 pandemic, this result is better than many other countries, demonstrating Vietnam’s attractiveness in the eyes of international investors.

The Foreign Investment Department forecasts that there are still many foreign investors who are interested, confident and want to invest in Vietnam. But due to the influence of Covid-19, the movement of investors, as well as new investment decisions and the expansion of the scale of foreign investment projects, continue to be affected.

 

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Temporary residence card in Vietnam

If a foreigner have been sponsored work permit in Vietnam to work or he/she decides to set up a company in Vietnam, he/she could be granted temporary residence card to live in Vietnam instead of applying and re-newing business or travel visas every three months.

 

We detail here some procedures which help foreigners to prepare for before applying for temporary residence card.

I. Subjects to be granted temporary residence card

-Members of foreign representative agencies and their accompanying relatives (father, mother, wife, husband, children under 18 years old).

-Foreigners who work with the Institute of the Supreme People’s Procuracy, the Supreme People’s Court, the ministries, ministerial-level agencies, agencies attached to the Government and People’s Committees of provinces and cities directly under the Central Government and the Central offices of mass organizations, mass organizations.

-Foreigners who work in projects already approved by competent state agencies licensed in Vietnam.

-Foreigners who work with businesses in Vietnam has the work permit valued more than 01 year.

-Persons on the payroll of foreign representative offices and branches of economic organization, culture and other professional organizations of foreign non-governmental organizations based in Vietnam.

-Foreigners staying in Vietnam for other purposes.

II. Conditions for implementation

+ Time to stay in Vietnam more than 01 year;

+ Valid passport more than 01 year;

III. The composition, the number of records

1) The composition profile, including

-A written request of agencies, organizations and individuals offering, guarantee and propose for temporary residence card;

-01 declaration of information of foreigners who apply for temporary residence, with photos and sealed by the agency or organization: A written request for temporary residence card (Form N7A); a declaration about Foreigners applying for temporary resident card (Form N7B)

-02 3 x4 cm size photographs;

-01 copies of passport, valid visa, immigration cards (bring original for comparison);

-01 copies or photo (bring the original for comparison) proof of purpose to stay in Vietnam.

As the case may file appropriate documents: investment licenses, permits the establishment of enterprises, work permit in Vietnam, certificate of board members and permits the establishment of representative offices, marriage/birth registration.

2) The number of records: 01 (one).

IV. Implementing agencies administrative procedures:

Immigration management Department, Police provinces and cities directly under the Central Government.

V. Implementation time: 05 to 07 days;

VI. Subjects performed:  by organizations and individuals;

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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Debt Recovery Service in Vietnam

Debt recovery is always a big problem for businesses and individuals. In order to promote the production process, the process of debt recovery is always one of the concerns with the business leaders.

 

Law firm in Vietnam

One of the the appropriate method is the intervention of law. ANT Lawyers Co., Ltd is a leading legal consultancy in Vietnam, with a team of experienced lawyers and legal experts that have participated and solved many debt recovery cases for businesses and individuals.

We will:

-Study the case to find the legal basis and debt data that should be handled;

-Assess the payment capability of the debtor to creditor;

-Represent the client to exposure debtor to negotiate, persuade and require debt repayment;

-Advice and instruct customer the most beneficial solutions in accordance with the law;

-Implement civil proceedings, economic proceedings or criminal proceedings against law enforcement agencies, depending on the type of entity and the nature of the transactions arising overdue debts;

In case of debt recovery through litigation, we will help customer:

-Draft petition and other papers relating to the recovery of debt;

-Represent client (individuals and organizations) to submit the petition to the Court and the competent authorities to recover the debt as stipulated by law;

-Appoint attorney to participate in protecting the legitimate rights and interests of clients (individuals and organizations) at the Court at all levels;

-Represent client (individuals and organizations) to participate in judgment enforcement

 

 

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Vietnam Marriage and Family Act 2014

The Vietnam Family and Marriage Act 2014 has officially been passed and will take effect from Jan 1st, 2015.  The Vietnam law on Marriage and Family in 2014 has the following notable update:

Same-sex marriage is not banned but not yet officially recognized

The Law on Marriage and Family in 2014 abolishes the regulations that “prohibit marriage between people of the same sex,” but specifically “does not recognize marriages between people of the same sex as stipulated in clause 2 Article 8 “.  Accordingly, people of the same sex can get married but their marriage will not be protected by law when disputes occur.  This is however considered a development in the law taking consideration of the situation in Vietnam.

 

Marriage and family dispute lawyers in Vietnam

Raising the age of marriage

The new law defined marriage age for women from the age of 18 or more for women and men from all 20 years or older. The reason for this change is because if the minimum age of marriage for women is just about to turn 18, the rules are not consistent with the Vietnam Civil Code and the Civil Procedure Code.   According to the Vietnam Civil Code, person under 18 years old is a minor, as such requires the legal representative agreement in civil transactions.  According to the Vietnam Civil Procedure Code, people of at least 18 years old will have full capacity for civil conduct proceedings.

Surrogacy arrangement is accepted

The Vietnam Marriage and Family Law 2014 officially allows surrogacy for humanitarian purposes. The surrogacy is applied only when the adequate conditions for both surrogate mothers and intended parents are met. In particular, the law only allows relatives from husband or wife to be surrogate mother.  This will also be considered as a development in the Vietnam Marriage and Family Law 2014.

Assets division during marriage

Law in developed countries recognize the prenuptial agreement which is signed between people before getting married.  Vietnam law does not consider marriage as a contract.  In the meantime, the current regulations of Vietnam Marriage and Family law are unclear on ownership of common and private assets and properties.  It mainly refers to land issues while other assets such as securities and share ownership in the enterprise are not mentioned, making it difficult to resolve the disputes arisen.  The Law on Marriage and Family 2014 specifically regulates the agreement between people before getting married on the assets and properties. Such agreement must be in writing, notarized or authenticated before marriage. This agreement could be changed during the marriage.

We at ANT Lawyers, a law firm in Vietnam provide advice and services on marriage and family laws.  We could be reached at office +84 28 730 86 529 or email ant@antlawyers.vn.

 

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When Should the Employer Send Notice of Termination of Labour Contract to Employee Before Contract Expiration?

Expiration is one of the circumstances which permit termination of labor contract under the Labor Code 2012. Accordingly, the employer must inform in writing to the employee of the terminating date of labor contract at least 15 days prior to the expiration. Termination of labor relationship in each circumstance must follow different conditions and procedures to ensure the interests and obligations of both employee and employer and avoid potential labour disputes.

 

Labour Dispute Law Firm in Vietnam

Previously, an administrative penalty was applied to violations of the labor contract termination notice mentioned above. If the employer fails to inform the employee, the employer will be subject to a warning or a fine with amount from VND 500,000 to VND 1,000,000. However, the Decree 28/2020/ND-CP issued on March 1st, 2020 by the Government has repealed sanction for this behavior.

If the employee continues to work upon expiration of labor contract, both parties will be required to sign a new labor contract within the next 30 days, otherwise the signed contract will become an indefinite-term. Failure of the employer to inform the labor contract termination to the employee does not mean that the labor relationship is automatically extended after the expiration. If both parties fail to sign a new labor contract within the next 30 days, but the employee still do normal assigned job and is paid a full monthly salary, an indefinite-term labor contract is deemed as entered into by them. Any disputes arising out then will be settled based on provisions of indefinite term labor contract and laws.

The Labor Code 2019 repealed the employer’s informing responsibility upon expiration of labor contract except in a few circumstances such as the employee being sentenced to imprisonment, disciplined, expelled, ..., the employer is required to inform the employee in writing the termination of the labor contract.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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How to Recognize Father or Mother for a Child

It is a legal requirement in Vietnam to register the recognition of father, mother of a child regardless the child’s parents are married or not. Such recognition shall be made on the newly issued birth certificate of the child.

 

Recognize Father for Child in Vietnam

The recognition of the father, mother protects the legal rights of all involved parties. For the family involving foreign elements i.e foreigners, expatriates living in Vietnam, the procedure for recognition of father, mothers of a child have to follow the laws of Vietnam, through various steps at Vietnam Authority including People’s Committee, Provincial Department of Justice and at Consular of foreign country where the mother or father of the child comes from.

The dossiers of application for recognition of fathers, mothers or children shall include the following papers:

-The application for recognition of father, mother of the child;

-The copies of the ID (for Vietnamese citizens staying in the country), or passports or substitute papers (for foreigners and Vietnamese citizens in foreign countries);

-The copies of the birth certificates of the persons to be recognized as child;

-Papers, documents or evidences (if any) to prove that there is a blood relationship between the father or mother and the child;

-The copy of the household registration book or collective resident certificate (for Vietnamese citizens permanently residing in the country);

-The permanent residence card (for foreigners permanently residing in Vietnam) of the persons to be recognized as father or mother.

Documents issued in foreign language shall need to be translated into Vietnamese, notarized or legalized to conform with legal document requirements of Vietnam authorities.

The time for processing dossiers at various authorities depend on the submitted documents and the time taken by the authorities to validate the case and could range between two weeks to two months.

The Vietnam authorities will need to study and examine dossiers of application for recognition of father, mother of the child. In cases where there is any doubts, complaints or denunciation about the recognition of father, mother of the child, or whether it is deemed that the personal identification of the involved parties or papers in the dossiers of application need to be clarified, the Provincial Department of Justice shall carry out the verification, including interviews with the involved parties or request for the additional proof.

Once the application is processed, verified and confirmed, the revised birth certificate of the child will be issued to reflect the changes which will show the name of the father or mother added.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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Trade cooperation between Vietnam and Germany and potential future

After 45 years of establishing diplomatic relations between Vietnam and Germany (from 1975 to 2020), Germany and Vietnam have had cooperation programs in many fields such as culture, economics, education, and health. Especially, after the Vietnam-EU Free Trade Agreement (EVFTA) came into effect, the commercial cooperation relationship between the two countries has developed.

 

EVFTA is an opportunity for Vietnamese businesses to expand their markets to European countries, including Germany. On the contrary, this is also an opportunity for German businesses to invest in Vietnam to set up company thanks to policies to attract and preferential investment commitments.

Germany is the world’s leading technologically developed country and an integral part of the global supply chain. Germany also has many strict requirements on the quality of goods and the environmental friendliness of products, which requires Vietnam to improve production quality and use environmentally friendly products/materials. With the signing of the EVFTA, Vietnam and Germany will have more favorable conditions for technology exchange and investment, which will help trade cooperation between the two countries more developed.

Before 2014, Vietnamese goods exported to Germany were the least polluted category, including agricultural products, wood products, processed foods, beverages, garments, footwear and glassware. Since 2014, the export of machinery and equipment to Germany began to increase and became the item with the highest export turnover. After EVFTA, Vietnam will increase exports of footwear, textiles and agricultural products such as coffee, tea, pepper and rubber and will import many products related to processing, pharmaceuticals, chemicals.

In addition, in order to improve product quality to meet import criteria into Germany and Europe, Vietnam also attracts foreign investment to develop sustainably economic sectors such as pharmaceuticals and chemicals, in order to create quality products that are qualified for domestic use and import to many countries around the world.

Currently, the number of investment projects of German investors implementing in Vietnam is not high compared to other countries such as Japan, Korea, Singapore, etc. This requires Vietnam to re-examine its strengths and weaknesses in order to meet the investment needs of German investors. The implementation of EVFTA, Investment Law 2020, Enterprise Law 2020 is an opportunity for international investors, including German investors to easily access Vietnam market when expanding their investment.

With many cooperation efforts between Vietnam and Germany in recent years, Vietnam hopes that in the coming years, Vietnam will be the leading destination in investment for German investors and help improve furthermore good relationship between the two countries in the future.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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Procedure to change birth certificate in Vietnam

How to Change Name on Birth Certificate in Vietnam?

Changing family name, middle name, first name are considered changing civil status.  Due to different reasons that an individual needs to change his/her name or his/her children’s name on the birth certificate. Such changes are civil status changes governed under the Law on Civil status.

 

Change birth certificate in Vietnam

However, not every case of civil status change registration is accepted by the competent authority.

Under the provisions Law on Civil status, individual can change of family name, middle name and first name of individuals in birth registration contents when there are grounds as prescribed by the civil law.

The “legitimate reasons” to change the family name is specified in the Civil Code on the right to change name include:

a) Changing the family name of a natural child from biological father’s to biological mother’s or vice versa;

b) Changing the family name of an adopted child from biological father’s or mother’s to adoptive father’s or mother’s at the request of the adoptive parents;

c) If a person ceases to be an adopted child and such person or his/her biological father or mother request to reclaim the family name which is given by the biological father or mother;

d) Changing the family name of a person whose biological parents have been identified upon the request on that father or mother or such person;

e) Changing the family name of a lost person who has discovered the origin of his/her bloodline;

f) Changing the family name of a person to his/her spouse’s in the marriage and family relations involving foreign elements in accordance with law of the country in which the foreign spouse is a citizen or retrieves his/her family name before the change;

g) Changing the family names of children upon the change of family names of their father’s or mother’s;

h) Other cases prescribed in by law on civil status affairs.

An individual has the right to request a competent authority to recognize the change of a given name in any of the following cases:

a) Where it is so requested by the person who has a given name which causes confusion or has an adverse effect on his/her feelings or on his/her honor, legitimate rights and interests;

b) Where the adoptive father or mother of the person wishes to change the given name of their adopted child; of if a person ceases to be an adopted child and such person or his/her biological father or mother request to reclaim the given name which is given by the biological father or mother;

c) Changing the given name of a person whose biological parents have been identified upon the request on that father or mother or such person;

d) Changing the given name of a lost person who has discovered the origin of his/her bloodline;

e) Change the given name of a person to his/her spouse’s in the marriage and family relations involving foreign elements in accordance with law of the country in which the foreign spouse is a citizen retrieves his/her family name before the change;

f) Changing of given name of a person whose gender identity is re-determined or a transgender person;

g) Other cases prescribed in by law on civil status affairs.

The changing of names for the person from nine years old must have the consent of that person. The changing of names of individuals does not affect and terminate the rights and civil obligations established under their old name.

Thus, if the use of one’s first name, last name and middle name cause confusion, affecting the family love, honor, rights and lawful interests, causing difficulties in the transaction, he/she may conduct the name changing.

Procedures to change name will be performed at the District People’s Committee where the person has registered the birth.

Dossier includes:

–Declaration (in the prescribed form);

–Presenting the original birth certificate of the person who need for change names and civil status;

–The relevant documents as a basis for the change or correction of civic status.

ANT Lawyers- Law firm in Vietnam has experience in civil and family matters to advice clients whom are interested for such legal service in Vietnam. We assist our clients in the process of reviewing agreements, procedures and concerned matters in civil and family.

 

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