Temporary residence card for foreigner in Vietnam

If the foreign investor, the employee needs to reside in Vietnam to be able to facilitate the implementation of investment, labor contract, the investor and the employee needs to have the company sponsored and proceed to apply Temporary residence card in accordance with the purpose of residence in Vietnam.

Temporary residence card is a document issued by an immigration authority or a competent authority of the Ministry of Foreign Affairs to a foreigner who is permitted to reside for a limited period of time in Vietnam and is valid for visa replacement. When a temporary residence card is available, the foreign investor or worker will present a temporary residence card instead of a visa when entering, leaving Vietnam and is legally residing in Vietnam.

To avoid administrative fines or deportation for violations of the law on residence in Vietnam, foreign investors and employees need to follow procedures for applying for a temporary residence card suitable for the purpose of entry (symbol visa). Investors, employees who have appropriate entry visas (DT or LD visa) will be considered by the Immigration Authority to grant a temporary residence card.

For the application for a temporary residence card that requires the investor, the employee needs to have all business documents, proving that it is eligible to sponsor a foreigner and enter the country for the right purpose. Request a Certification of exemption from a work permit, work permit, entry visa for the right purpose, legal residence address in Vietnam.

When all of the above conditions are met, investors and employees shall carry out the procedures for applying for temporary residence cards in Vietnam so that they can reside, leave and enter in accordance with law. The duration of the temporary residence card is issued pursuant to the purpose of entry and the proposal of agencies, organizations and individuals. The temporary residence card is from 1 to 5 years but shorter than the passport duration by at least 30 days, specifically:

– Temporary residence cards with symbols NG3, LV1, LV2, ĐT and DH are valid for no more than 05 years.

– Temporary residence cards with symbols NN1, NN2, TT are valid for not more than 03 years.

– Temporary residence cards with the symbol LD and PV1 are valid for no more than 02 years.

When the temporary residence card expires, the foreign individual will be considered to request the sponsored company to apply for a new temporary rresidence card.

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The 66th Asian Business conference in Danang

On July 4th, 2019 the People’s Committee of Da Nang organized the 66th Asian Business Conference about business cooperation between Vietnam and Japan. Representatives of 60 Vietnamese enterprises and 130 enterprises from Japan attended showing intersts in economic cooperation.

The representatives of Japanese companies provided many useful information about business investment cooperation opportunities in the fields of information technology, high technology, health, education …After 45 years from the establishment of diplomatic relations, Japan has become one of the Vietnam’s leading partner in many areas, becoming the largest ODA provider, and the second largest FDI investor in Vietnam.

Japan is leading countries investing in Da Nang with more than 180 projects and the total investment capital is nearly 890 million USD, focusing on the fields of industrial production, high technology, services, real estate and travel. The Da Nang’s enterprises in supporting industries, IT, textiles, fisheries, education … are always willing to cooperate with Japanese partners to expand markets, access technology and new management systems.

It is obvious that Japan is one of strategic partners, a key market with strong financial and public potential, including high-tech industry, information and communication technology and supporting industries as well as services and education sectors. The city government always strives to create favorable conditions for Japanese investors to establish and implement effective projects, as well as implement solutions to improve the city’s investment environment such as infrastructure construction, high-tech parks and centralized information technology zones, planning new industrial parks with attractive investment preferential policies, promoting administrative procedure reforms and focusing on human resource training qualified, skilled … to meet the demand of the investors.

The Conference creates opportunities for interaction and discussions between Vietnamese enterprises and Japanese enterprises, between Da Nang city and investors in the area of manufacturing, construction, healthcare, tourism, education, science and technology.

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The Business Conditions for Sports Betting in Vietnam

Law on amendments to Physical Training and Sports No. 26/2018/QH14 is in valid as of February 1st, 2019. The highlight that must be noted is sports betting as provided in Article 67a. This activity is officially governed by laws. Sports betting is a form of entertainment with rewards in which bettors predict the results of sporting events used for betting purpose.

The sports betting has a long history, but it had not been recognized by the State for a long time. Therefore, the betting was considered a violation of laws and was liable to administrative and criminal remedies. Before sports betting is restricted and just allowed to bet on horse racing, greyhound racing and pilot international soccer as specified in the Decree 06/2017/ND-CP effective from March 31st, 2017 on business of betting on horse racing, greyhound racing and international soccer. After the amendment law takes effect, the sports are allowed to bet will be extended according to the List of sports activities allowed to trade in betting issued by the Government.

What Conditions Required for Sports Betting?

Relating to condition of sports betting business in Vietnam, the enterprises need to be granted a certificate of eligibility for betting business. This is one of the conditional business lines under the strict management.

Regarding horse racing and greyhound racing, the enterprises need to obtain the Certificate of investment registration for the project for construction of horse and/or greyhound racecourses and the Certificate of eligibility for betting business. For horseracing, the charter capital requirement is VND 1 trillion ($44.2 million), while for greyhound racing it is VND 300 billion ($13.2 million). Locations of horse and/or greyhound racecourses are conformable to the socio-economic development planning of the area where such racecourses are located. Therefore, if the project attracts more than one investor, the investor for the project for the construction of horse racecourses and/or greyhound racecourses which covers the business of betting on horse racing and/or greyhound racing shall be selected through bidding process according to law.

Regarding international soccer, the procedures is similar to horse racing and greyhound racing. However, The Government allows one enterprise to pilot the business of betting on international soccer. The duration of pilot international soccer betting business shall be 05 years since the date on which the Certificate of eligibility for international soccer betting business is issued. After such period, the Government shall consider whether or not to continue the pilot international soccer betting business upon the assessment of the collected results. The list of international football matches and tournaments which are selected to provide the basis for the business of betting on international football is stipulated in the Decision No. 1064/QĐ-BVHTTDL issued by the Ministry of Culture, Sports and Tourism.

Which Authorities Will Approve the Sports Betting Activities?

The Ministry of Finance will publicize the conditions, dossiers, procedures for organizing bidding to select enterprises to pilot international football betting business according to the provisions of law. To be able to participate in bidding, the enterprises need to meet the following conditions:

(1) The minimum charter capital shall be VND 1 trillion ($44.2 million)or an equivalent amount;

(2) Having a plan on investment in the technological system, technical equipment and business software to ensure their accurate, safe and stable operation;

(3) There shall be a feasible plan on the business of betting on international soccer and ticket selling methods and locations;

(4) Committing to community assistance.

There are 135 countries in the world officially legalizing sports betting activities. Betting is increasingly on the rise, along with the development of information technology and entertainment. In Vietnam, sports betting is put under the strict management.

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The Essential Information on Certificate of Origin from Vietnam

According to Decree No. 31/2018/ND-CP guiding Law on Foreign Trade Management in terms of origin of goods: “The Certificate of Origin means a written form or other form of equivalent legal validity granted by competent authority belonged to country, group of countries or territories exporting the goods based on regulations and requirements of origin, specifying origin of this goods”.

We comprehend that the Certificate of Origin (hereinafter referred to as “C/O”) is certificate of goods origin issued by a country (export country) to confirm goods produced and distributed by this country in the export market in accordance with the rules of origin to create the most favourable conditions for goods importing to other country (import country) on tariffs. C/O is an important instrument in importing and exporting goods.

Functions of C/O

Tariff preferences: Determining the origin of goods help us differentiate the import goods enjoyed tariff preferences to apply the preference regime according to trade agreements as signed by the countries.

Anti-dumping duty and anti-subsidy duty application: In the event that goods is dumped or subsidized in the market of other country, determining the origin of goods shall make anti-dumping duty and anti-subsidy duty application possible.

Statistics of trade and maintenance of quota system: Determining the origin of goods make compilation on statistics of trade of country or area easier. On this basis, competent authority of trade can maintain the quota system.

Category of C/O

Non-preferential C/O means a ordinary C/O confirming the origin of product from a specific country.

Preferential C/O means a C/O allowing the product eliminated or reduced from the country’s permission such as: Generalized Systems of Preferences (GSP), Commonwealth Preference Certificates (CPC), Common Effective Preferential Tariff (CEPT),…

The Agency granting C/O

Ministry of Industry and Trade of Vietnam is the agency granting Certificate of Origin directly or authorizing Vietnam Chamber of Commerce and Industry (VCCI) or other organization to issue Certificate of Origin.

According to the prevailing law, the treaty signed by Vietnam and the provision of import country on Certificate of Origin, the Ministry of Industry and Trade stipulates the regulation on selection of trader, procedure of self-certifying the origin, obligation and liability of self-certifying the origin, inspection of the self-certifying of origin of goods exported by traders and remedy.

Process of issuing C/O

When applying for C/O for the first time, the trader shall have to submit dossier to competent authority.

Dossier includes:

– Request for Certificate of Origin;

– Form of C/O filled in full into 01 (one) original copy and 03 (three) copies. The original copy and one of the copies shall be sent to the Importer by the Exporter and the Importer shall submit such instruments to competent authority in loading port or unloading port. The second copy and the third copy shall be saved by the agency issuing this C/O and the Exporter respectively. In case of import country’s requirement, the applicant can request the Agency issuing this C/O to grant more than 03 (three) copies of C/O;

– The declaration of completing the customs procedure at competent authority (certified copy with signature of competent persons), excepting the case it’s not necessary for export goods to declare according to the laws. The applicant of C/O shall have the right to submit this instrument no more than 30 (thirty) days from the date granting C/O in case of legitimate reasons.

If necessary, the agency issuing C/O may require the applicant to provide another instruments relating to export product such as: the declaration of importing material; the certificate of export; sales contract; VAT invoices; sample of material or product; bill of lading; air way bill and other instruments relating to origin of export goods..

Relating to enterprise participating eCOSys, all instruments shall be made by trader via electronic system and automatically transferred to agency issuing C/O. The agency issuing C/O bases on electronic dossier to check validity information and grant C/O to trader as soon as receiving full dossiers in hardcopy.

The agency issuing C/O informs the result of submitting dossier via eCOSys no later than 06 (six) working hours from receiving validity electronic dossier.

The agency grants Certificate of Origin to trader no more than 02 (two) working hours after receiving application in hardcopy.

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The Government Continues to Exempt Visas for Western European Countries

It has been announced on May 3rd, 2018 that visa exemption policy for 5 Western European countries has been extended as part of the Vietnam immigration policy to attract tourists to Vietnam. At the same time, the Government has decided to increase the exemption period from one year to three years.

Accordingly, the Government has a high consensus and the Prime Minister has decided to continue the visa exemption for five Western European countries, including England, France, Germany, Spain and Italy. As previous regulation, the visa exemption will be expired at the end of June 2018. The exemption period has also increased from one year to three years.

Visa policy is considered to be an extension of the tourism industry because Vietnam is a country has strict visa policies, with only visa exemption for citizens of 24 countries, much less than other countries in the region.

For example, Indonesia exempts visas from 168 countries, Malaysia 162 countries, Singapore or the Philippines 159 countries, Thailand 57 countries. Besides that, these countries apply the policy of issuing visas at the border and electronic visas.

Western Europe is considered a high-paying group. Statistics show that the first visa exemption year (2015) has 720 thousand guests. In 2016, the number of visitors increased 16%, turnover reached 202 million.

In 2017, Western European visitors reached 1.5 million people, contributing to the record of the first-time Vietnam reaching 12.9 million international visitors.

According to many experts, if visas for these countries are not renewed, tourism industry of Vietnam will lose 20% of its visitors from large markets with a loss of several hundred million USD. However, losses will not stop there, as guests may form a habit of not coming to Vietnam.

This new immigration regulation will start from July 1st, 2018.

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The Politburo First Issued Resolution on FDI Attraction

For the first time after 30 years of attracting foreign investment in Vietnam, the Politburo issued a thematic resolution to guide in the coming years.

On August 21st, General Secretary and State President Nguyen Phu Trong signed Resolution No. 50 on the orientation of perfecting institutions and policies, improving the quality and efficiency of foreign investment cooperation by 2030.

In the period from now until 2030, the guiding point emphasized by the Politburo is to attract FDI selectively, taking quality, efficiency, technology and environmental protection as the main evaluation criteria. At the same time, priority is given to projects with advanced technology, new technology, high technology, clean technology, modern management, high added value, spreading and connecting global production and supply chains.

In addition, the overall objective is to improve institutions and policies of foreign investment cooperation with high competitiveness and international integration. At the same time, basically overcome the limitations in building, completing and organizing the implementation of institutions and policies on foreign investment cooperation.

The Resolution of the Politburo also supplements the provision on the conditions for national defense and security in the process of considering and issuing investment registration certificates with new investment projects and investment activities through the form of capital contribution and purchase of shares.

The Politburo requires clearly defining the responsibilities of investors on environmental protection during the investment period, project implementation and operation of enterprises during the project implementation period. Along with these tasks, policies on investment management and supervision; innovation and efficiency improvement of investment promotion must be paid attention to.

The Politburo noted that the emphasis on inspection, supervision and inspection is associated with improving the responsibilities of local authorities and heads; definitely deal with projects that cause environmental pollution, inefficient land use and business losses for many years, the project does not comply with its commitments.

Statistics show that after nearly 30 years of receiving FDI capital, Vietnam has more than 23,000 FDI projects with a total registered capital of over 300 billion USD. In which, the total implemented capital is about 161 billion USD. Resolution 50 sets targets, registered capital in the period 2021 – 2025 is about 150 – 200 billion USD (30 – 40 billion USD a year); implemented capital of 100 – 150 billion USD. The period of 2026 – 2030, registered capital of 200 – 300 billion USD, implemented capital of 150 – 200 billion USD.

Percentage of enterprises using advanced technology, modern management, environmental protection, towards high technology increased by 50% in 2025 and doubled (100%) in 2030. Proportion of labor through training in the labor use structure from 56% in 2017 to 70% in 2025 and 80% in 2030.

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The procedure for issuing and extending investment visa

Investment visa which is symbolized as DT, is granted to foreign investors who establish or contribute capital to companies operating in Vietnam with the maximum time limit for each grant is no more than 01 year. The issuance of investment visas for foreigners must comply with the provisions of the Law on entry, exit, transit, and residence of foreigners in Vietnam 2014 and Circular 14/2015 / TT-BCA.

According to the current law, in order to be granted a investment visa, the foreign investor need to prepare 01 set of documents including: Certified copy of Business License / Investment License; certificate of seal sample registration or the Notice of posting information about the seal sample of the enterprise on the national portal of enterprise registration; registration of seal sample and signature of the legal representative of the enterprise operating in Vietnam (form NA16); visa application form, visa extension, temporary residence extension for foreigners in Vietnam (form NA5); The original passport is valid as prescribed and the temporary residence registration is required. The dossier is fully prepared and submitted at the Immigration Department of the province where the enterprise is located. The time limit for settlement is 05 days from the date of receipt of complete and valid dossiers.

If foreign investors want to extend the visa, they must apply for the extension within 06 months before the expiration date. Dossiers include: Original passport (valid for at least 06 months); NA5 visa application form; investment certificate, business registration certificate; power of attorney (if any). Dossiers of application for extension of temporary residence visas for foreigners shall be submitted at the Immigration Department or the Immigration Department of the Public Security of the city/province where the enterprise or organization is headquartered. Time for returning results is no more than 5 working days. The investment visa is extended once for no more than 01 year.

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Top 10 Challenges of Doing Business in Vietnam

Expanding gross domestic product (GDP), modern infrastructure and a dramatic increase in foreign direct investment (FDI) are signs that Vietnam has transformed into an attractive investment destination, but there are still barriers to doing business which are best navigated with local help on board.

Since 1988, there have been 13,544 foreign investment projects with a total registered capital of US$213 billion in Vietnam, building a large overseas investment sector which occupies about 17% of GDP and 43.4% of industrial product value. Overseas firms are attracted by Vietnam’s 87 million-strong population which supports a large and young workforce and that has also seen an increase in disposable income in recent years.

Strong economic growth rates have been a common feature of the Vietnamese economy since the 1990s, and even though the high levels slumped slightly during the global financial crisis, the country has rapidly returned to pre-crisis growth trends and is expected to continue on this path. Infrastructure, tourism development, and related real estate and retail sector development in urban areas are all attracting large amounts of FDI, and overseas firms are increasingly attracted by the country’s move from a centralized to a market-orientated economy.

However, The World Bank and International Finance Corporation (IFC) rank Vietnam in 99th place in the world for ease of doing business, which means it is essential to seek local help of law firms and lawyers in Vietnam when expanding into the country.

Starting a Business

There are 10 procedures to undertake when starting a business in Vietnam, making it among the most complex start-up environments in the world. What’s more, many tasks facing new corporate entities may be unfamiliar to overseas companies, making the task far more rigorous. Registration of the seal-sample at the State Agency, for example, or publicly announcing the formation in a local newspaper are procedures most companies generally don’t have to complete.

Dealing with Construction Permits

It takes 110 days and 11 procedures to get permits for construction in Vietnam, once again requiring interaction with several official departments. Inspections must be carried out by the Department of Construction and the municipality, and certificates should be obtained from the Firefighters Prevention Department, the Department of Construction and the Department of Natural Resources and Environment.

Getting Electricity

Getting electrical connection is among the most rigorous tasks facing startups in Vietnam, taking 115 days to complete and costing a significant percentage of income per capita. Inspections by the local power corporation are required before completing processes with the Traffic and Transport Department and the Firefighters Prevention Department.

Registering Property

Registering property in Vietnam takes 57 days to complete, which is far higher than the OECD norm but around average for East Asia and Pacific. Contracts between the transferor and the transferee are signed before taxation is paid and registration for the right to use land is complete.

Getting Credit

Vietnam is home to quite a stable credit environment, and obtaining capital is a relatively smooth process for businesses. However, the lack of a private credit bureau can make the process a little trickier for overseas firms.

Protecting Investors

Investor protection is an area in which Vietnam needs to improve. It is ranked in 169th place by the World Bank and IFC, with a weak director liability index and shareholder suits index.

Paying Taxes

There are massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.

Trading Across Borders

Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavour. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross-border trade can be difficult at the best of times.

Enforcing Contracts and Resolving Insolvency

Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.

Culture

The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasize the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs.

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Transfer of Investment Projects in Vietnam

Under the current Law on Investment, investors are entitled to transfer part or all of the project to another investor when satisfied the specific conditions and conducting to procedure of project adjustment under the regulation of law.

The conditions of project transfer

- The project is not terminated in the cases as prescribed in Clause 1 Article 48 of Law on investment;

- Investment conditions applied to foreign investors are satisfied in case the foreign investor receives a project of investment in conditional business lines;

- Regulations of law on law, real estate trading is complied with if the project transfer is associated with transfer of land;

- Conditions in the Certificate of investment registration or relevant regulations of law are complied with.

Preparation of dossier

- A written request for permission for project adjustments;

- A report on the project’s progress up to the time of transfer;

- The project transfer contractor an other document with equivalent legal value;

- Copies of the ID card or passport (if the investor is an individual) or Certificate of Enterprise Registration or another document with equivalent legal value (if the investor is an organization);

- Copies of the Investment Registration Certificate or decision on investment guidelines (if any);

- Copies of the BCC contract (for BCC projects);

- Copies of one of the following documents of the transferee: financial statements of the last 02 years; commitment to provide financial support by the parent company, commitment to provide financial support by a financial institution, the guarantee of transferee’s financial capacity, documents describing the transferee’s financial capacity;

Order and procedure

- Investors submit the dossier at Department of Planning and Investment (or Management of Economic Zone or High-tech Zone);

- Within a period of 10 working days from the date of receipt the complete and valid dossier for an investment project operating under an investment license and not subject to decision of investment policy (or 28 working days from the date of receipt the complete and valid dossier for an investment project which is subject to investment decision of the provincial People’s Committee; 47 working days from the date of receipt the complete and valid dossier for the investment project subject to the decision of the Prime Minister), the competent authorities consider and decide to adjust the investment registration certificate to the investor transferring the project.

Before transferring an investment project, investors need to evaluate the legal situation, apart from the financial, personnel, and other key issues of the project, which are subject of the transfer. Therefore, to ensure effective transfer, investors often engage law firms with highly qualified lawyers in Vietnam to conduct M&A legal due diligence related to the legal documentation of the owner, capital contribution of the shareholder or member, tangible assets (land use rights, plant and machinery, equipment, etc.) and invisible assets (including industrial property rights), licenses, contracts or transactions of great value, taxes and other legal risks such as litigation or disputes which could significantly impact the project..

The transfer of an investment project is an administrative procedure with a state agencies that is only smooth when the parties reached agreements. In fact, the transfer of the investment project’s timeline depends on the appraisal and evaluation process of the parties involved in the project.

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Truong Thanh Group Wants to Invest in Ninh Gia Wind Power Project in Lam Dong

Truong Thanh Group has recently expressed their intention to invest in a solar power plant project, attracting the attention of domestic and foreign investors to set up company in Lam Dong.

It is known that Ninh Gia Wind Power Plant Project registers with information such as: deployed land area of about 35 ha, height of 100 m, total capacity of 100 MW, electricity output of 250 million kWh/year, total invested of nearly 3,090 billion VND.

Lam Dong Department of Industry and Trade chaired a meeting with functional departments, proposed Lam Dong People’s Committee to allow Truong Thanh Group to survey nearly 1,135 ha of Wind Power Plant Project area in Ninh Gia commune, Duc Trong district.

Accordingly, this survey area includes areas under agricultural production (coffee trees, fruit trees…), forestry and non-forestry planning land, without affecting natural forests and protection forests, not related to defense land.

In the immediate future, the investor proposes to install a wind gauge on an area of about 8,000 m2, after collecting all the data will return the site to its original state.

It is known that the Ninh Gia Wind Power Plant Project registers with information such as the deployed land area of about 35 ha, the height of 100 m, the total capacity of 100MW, the electricity output of 250 million kWh/year, the initial investment of nearly 3,090 billion VND.

Truong Thanh Group is currently one of the top three enterprises in Vietnam in the field of renewable energy investment.

In early June, Truong Thanh Vietnam and Sermsang Power Corporation (Thailand) put into operation the Binh Nguyen solar power project with a capacity of nearly 50 MW in Quang Ngai.

Binh Nguyen Solar Power Plant is considered as one of the key projects of Quang Ngai province in particular and South-Central region in general. The factory is invested with maximum application of advanced science and technology, by leading engineers in Vietnam and the world with high professional qualifications. After only 9 months from the commencement time, the plant was put into commercial operation in May 2019 and until now officially put into operation.

Around the same time, Cat Hiep Solar Power Plant, with capacity of 49.5MWp and a solar cell system installed on an area of 60.1 ha in Hoi Van village, Cat Hiep commune, Phu Cat district, Binh Dinh province, by Truong Thanh Group is also operated and connected to the national grid.

The Group also has another solar power project – the Hoa Hoi Solar Power Plant Project, which was inaugurated in June 2019.

This is the largest solar power plant project in the Central region and the third largest in the country with a capacity of up to 256 MWp, a project area of nearly 260 hectares, by Truong Thanh Group and BGrimm Power Co., Ltd. (Kingdom of Thailand) cooperates as the investor, the general contractor is China Energy Engineering Corporation (CEEC).

Moreover, Hoa Hoi Solar Power Project was inaugurated after more than 7 months of construction, meeting the schedule and good quality.

The series of renewable energy projects implemented at lightning speed has contributed to affirming the Group’s position in the field of investment in building solar power plants, confirming the experience and practical capacity of domestic and foreign partners in which Truong Thanh Group has cooperated.

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US Investors Set up Business in Ho Chi Minh City

United States (US) businesses are expecting to pour investment capital and set-up business in Ho Chi Minh City(HCMC) in the near future, when Vietnam and the US are members of the Trans-Pacific Partnership agreement (TPP).

Statistics from the Department of Planning and Investment of HCMC showed that in 2015, the city has attracted 26 investment projects from the US with a total capital of approximately 135.4 million USD. In the first 2 months of 2016, the US has invested an additional of 4 new projects with total capitals of 1.56 million USD. It is forecasted that after TPP takes effect, the number will increase exponentially.

The industrial zones in HCMC are attracting the most investment within three years. Currently there are more than 300 projects worth more than 600 million USD. With the launching of TPP, the city hopes to receive a new wave of investment from US businesses. The efforts to reform the city’s administration procedures are creating favorable environment for US businesses to increases investment in HCMC.

According to the representative of the US Consulate in HCMC, diplomatic relation between Vietnam and the US is getting better, creating conditions and opportunities for US investors to come and set up business in HCMC. As recognized by the American Chamber of Commerce in Vietnam (Amcharm), businesses from the 2 countries feel very excited after exploring the investment environments of each other.

According to the Amcham’s representative, the promotion of the free trade agreements and especially TPP is bringing Vietnam and the US to the center of trade cooperation. It is reflected positively in 2015 with growth rate reached 45 billion USD in terms of sales, increased by 20% compared with 36 billion USD in 2013. Currently, Vietnam is also the leading countries in ASEAN on trade balance with the US when Vietnam accounting for 25% of export turnover of the area and this figure will continue to increase in 2020.

According to representatives of the Department of Planning – Investment in Ho Chi Minh City, Vietnam American investors to increase mainly in the field of real estate, banking, services, processing technology. This is a positive signal for bringing high-income jobs for local workers. The goal of the 2020 Vietnam brought exports to the US increased by 300 billion dollars.

According to representatives of the Department of Planning and Investment of Ho Chi Minh City, investment from the US to Vietnam increased mainly in the field of real estate, banking, services, processing technology. This is a positive signal because it brings high-income jobs for local workers. The goal of Vietnam is that till 2020, export turnover to the US will increase by 300 billion USD.

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US Real Estate Broker Joined Vietnam Market

ERA Real Estate – a US real estate distributor has just participated in the Vietnam real estate market by joining hands with a company in Vietnam to sell high end projects.

Although ERA Real Estate has just announced to enter the Vietnam market in early July, they have silently opened 5 transaction offices and 1 commercial office in the central district of Ho Chi Minh City. This company now has more than 300 consultants that are trained and certified according to international standards.

This new giant does not hide their ambition that in the next 5 years, they will become the leading real estate distributor in Vietnam with a network of more than 50 transaction offices throughout the central provinces and own 5,000 professionally trained consultants throughout the country.

In order to adapt quickly to emerging market like Vietnam, this US broker joins hands with Eurocapital Group, a private investment group based in Vietnam since 2008, to establish ERA Vietnam. Eurocapital specializes in financial services and investment consulting, including real estate. Particularly in the period of 2015 – 2016, this company manages about 350 million USD transaction value.

Thanks to handshake with partners understanding Vietnam market, the US broker has accessed to the basket of luxury real estate of many large investors in the country. The residential projects, hotels and luxury resorts will be distributed by ERA Vietnam in the coming time are products of Sun Group, CEO Group, MIK, Sacomreal, Kien A and international partners such as Keppel Land, Sunwah Group.

In addition to Vietnam market, this broker also participates in high-end and luxury real estate distribution in Asia Pacific such as Singapore, Japan, Korea, Indonesia, Malaysia, Taiwan and Thailand. In Singapore, ERA is one of the largest brokerage firms with more than 6,000 employees. On average, every 3 real estate transactions in Singapore in 2016, there is 1 transaction made by ERA Real Estate.

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Vietnam and ASEAN Cosmetic Regulations

Vietnam cosmetic regulations are compatible with the ASEAN cosmetic regulations.

On September 2nd 2003, on behalf of the Government of Vietnam, the Vietnam Minister of Trade and Commerce signed an agreement on the ASEAN harmonized Cosmetic Regulatory Scheme, in which the terms specified in the agreement is fully implemented since January 1st, 2008.

The agreement aims to unify cosmetic management in the ASEAN countries, and is toward a common market of ASEAN, strengthen cooperation between member States in ensuring safety, quality and beneficial features of all cosmetic products on the ASEAN market and remove the restrictions on the cosmetic business between member States through the harmonization of technical regulations.

The agreement on the ASEAN Harmonized cosmetic regulatory scheme is considered a cosmetic treaty representing the unity of regulations on management of cosmetic member countries of the agreement. Being a member of the agreement, Vietnam cosmetic regulations are compatible with the ASEAN cosmetic regulations.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

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Vietnam and Japan Signed 12 Cooperation Agreements

The Secretary General of Liberal Democratic Party of Japan, the President of Japan – Vietnam Friendship Parliamentary Union- Nikai Toshihiro, on January 12th, 2020 met with the Vietnam’s Prime Minister- Mr. Nguyen Xuan Phuc in Hoi An to discuss economic, cultural and tourist exchange topics.

At the meeting, the representative of Vietnam welcomed the Japanese delegation to come and exchange of economic, cultural and tourism exchanges of the two countries. The representative of Vietnam affirmed that Vietnam appreciate the cooperation with Japan, especially in economic matters. At the moment, Japan is the top country with FDI in Danang in particular and Vietnam in general. The Japanese investors set up company, obtain investment registation certificate and invest in various business lines including IT, trading, real estate, design consultancy, engineering. Based on the cooperation between the countries, Vietnam and Japan have achieved many positive effects on the economy, education, culture, social security.

The representative of Vietnam confirmed that the relationship between the countries developed into many fields as “extensive strategic partnership for peace and prosperity in Asia” established in 2014, in which, Japan always is the trustful, important partner of Vietnam.

The representative of Japan expressed his pleasure to visit Vietnam in the beginning of 2020. He said that the organization of the delegation has the largest scale ever with more than 1,000 delegates, and diverse members from National Assembly deputies, representatives of ministries, branches, local leaders, businesses and people of Japan showed high interest and consensus within Japan from the National Assembly, the Government, localities, business community and people towards strengthening and deepening friendly and cooperative relations with Vietnam in the coming time.

By this meeting, the representatives of the two countries witnessed the signing and exchange of 12 cooperation documents, memorandums of understanding between ministries, branches, localities and businesses of the two countries. By these cooperation documents, the two countries hope that in the future, they will cooperate more together in all aspects of culture, education, economy and society to realize their construction goals and develop the countries.

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