Why Investors Should Set up Business in Phu Quoc?

The improvement in infrastructure system along with the preferential policies have stimulated investors to come to set up business in Phu Quoc and do company.

Phu Quoc, an island in Kien Giang of Vietnam is in the top of three islands having tourism potential in Southeast Asia comparable to Phuket in Thailand and Bali in Indonesia. Phu Quoc has become a magnet for attracting huge investment flows from foreign investors in the area of real estate, entertainment, casinos, restaurant or food and beverage service business.

Phu Quoc has temperate weather throughout the year. There are also fresh and friendly forest – sea ecology and the modern transport system on the island with international airport and international hospital. Moreover, many infrastructure projects and international schools are under construction, which are necessary and favorable conditions to invite and attract investors to the Pearl Island for doing business.

Capital inflows to Phu Quoc have really exploded after the “knots” in investment were removed. The new airport went into operation that can welcome larger aircraft and serve more flights, in which there are more international direct flights from China, Singapore, Russia and Cambodia. The 51km long radial route on the island has been basically completed; the road around the island and the branch roads are also being deployed. The power grid was pulled from the mainland to the island, replacing the very high cost gasoline power in the past.

The real estate and tourism consultants all agree that Phu Quoc fully convergent elements of an attractive beach for tourist with year-round sunshine, many beautiful beaches such as Long Beach, Truong Beach, Khem Beach and immense virgin forest. Moreover, Phu Quoc has a strategic location with just 1-2 hours flight to the key tourism markets in Southeast Asia.

Both investment and tourism in Phu Quoc have entered the acceleration phase. By the end of July 2015, Phu Quoc has attracted nearly 200 investment projects, including 136 projects that are being implemented in the area of over 5,100 ha with total registered capitals of 6.5 billion USD. Just one part of those projects become reality then it will make Phu Quoc to become a leading tourist destination in Vietnam, ahead of Da Nang and Nha Trang, competing with the top destinations in the area as Phuket and Bali.

Some of the largest Vietnam corporations such as Vingroup, Sun Group, CEO Group, BIM Group are implementing the huge projects that could alter the appearance of the island. In which the giant in real estate sector – Vingroup has invested projects as: Vinpearl Resort on an area of 300 ha in Long Beach, the combining of golf course and safari zoo on an area of more than 2,000 ha, and the 80 ha commercial complex.

The improvement in infrastructure system along with the preferential business and legal environments i.e. favourable land rental rates, corporate income tax, exemption of visa for foreign tourists make Phu Quoc island of Kien Giang, Vietnam a new attractive place for investment.

ANT Lawyers, a law firm in Vietnam could offer service to set-up company in Phu Quoc through its affiliate office. We assist clients needing legal service in obtaining investment certificate, business registration, or other licensing procedures in Phu Quoc, Kien Giang Province, Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang, will help customers conveniently drafting contracts, Debt Recovery, Set up business, Foreign invest, ....

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Network security services – Cybersecurity solutions in the new situation

Information technology is existing in almost all areas of life, contributing to increasing work efficiency, saving time and costs. Besides these advantages, users also face many risks from loss, leakage of personal data, and organizational information and invasion of privacy when accessing the network. Therefore, network security service has becoming a necessary solution. Accordingly, Vietnam Ministry of Public Security proposed to consider cybersecurity protection services as business lines which are subject to conditions in the Vietnam Investment Law.

According to statistics in 2021, the Ministry of Public Security has recorded and analyzed nearly eight million warnings related to cyberattack activities, thereby detecting and verifying 2,763 cyberattacks targeting portal sites in the country (up 26% compared to 2020). In addition, cyberattacks tend to increase, causing political influence and greater economic losses. In addition, the situation of illegally collecting and infiltrating information and data of organizations and individuals for illegal purpose are increasingly complicated. The participation of network security services will contribute to strengthening the protection of the network security environment, especially important economic organizations such as banks, securities, state agencies, which are organizations that have vital role of the country.

On the other hand, the development of network security services is in line with the development policy of the country. Specifically, in Resolution No. 30 of the Politburo on the National Cybersecurity Strategy, the ultimate goal has been determined to reduce the risk of national security and social order and safety being compromised. Moreover, the Government has also issued Resolution No. 22 on the action plan to ensure national cybersecurity. Accordingly, the Ministry of Public Security shall assume the prime responsibility for formulating a Decree stipulating conditions for trading in cybersecurity products and services. Therefore, making network security services a business line is consistent with the current context and development orientation.

In addition, approving network security services will guide specific regulations and conditions for businesses. Businesses and organizations and individuals providing cybersecurity products and services will need to actively comply with regulations. The business conditions for network security services will ensure that network security products and services to be provided by reputable and capable service providers. Accordingly, improving policies and laws and improving the effectiveness and efficiency of state management of information, communication and network security will be a solid basis for cybersecurity services to demonstrate their functions and roles its important role in the overall development of the country.

Moreover, developing quality and effective cybersecurity services will create more opportunities and attract more foreign investors to participate in the Vietnam market. Most business activities now have involved the Internet connection, and therefore the risks such as information security and data security will be an issue of concern to investors making investment, setting up company in Vietnam. If network security services that support risk reduction and data recovery to help run business well, it will create confidence and motivation for investors.

The Ministry of Public Security expects network security products and services to include: (i) Confidential products to collect information (devices where hardware and software have the function of collecting information, documents, and data) via cyber – spyware; (ii) Security control products for network traffic (in which specialized hardware and software equipment for competent state agencies are designed with specific features to protect targets, systems, etc.) information system to warn, detect and prevent cyber security violations; (iii) Network security monitoring services, network security testing, knowledge training, network consulting, standards assessment. These are services and products that have practical applications and are capable of meeting the needs of individuals and organizations using cyberspace.

Therefore, although cybersecurity services have not yet been officially approved, in the current context, network security services will be an effective solution to work with the Government to build a digital environment and develop digital technology secure and sustainable information technology in line with the speed of global development. It is expected that when cyber security services are specified, it will promote a healthy, safe and effective cyber environment and hence promote the business and investment in Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang, will help customers conveniently drafting contracts, Debt Recovery, Set up business, Foreign invest, ....

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What is Value-added Tax Reduction Policy in 2022?

In order to stimulate growth and recover the economy after the impact of the Covid-19 pandemic, the Government has issued a policy to reduce value added tax. The reduction of value-added tax is an effective solution and tool to stimulate consumption and is expected to create a driving force for rapid development to help businesses restore business and production.

The value-added tax reduction policy has been promulgated by Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy according to the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies currency to support the program of socio-economic recovery and development. Accordingly, value added tax will be reduced from 10% to 8%. This reduction will create conditions for consumers to increase spending, through which businesses will sell more products.

The value-added tax reduction will be applied to groups of goods and services currently subject to the 10% tax rate, except for the following groups of goods and services: (i) Telecommunications, financial and banking activities commodities, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; (ii) Products, goods and services subject to excise tax; (iii) Information technology under the law on information technology. However, if the goods and services are not subject to value-added tax or subject to value-added tax of 5% according to the provisions of the Law on Value-Added Tax, the provisions of the Law on Value-Added Tax shall be applied and not entitled to value added tax reduction.

It is important to note the value-added tax calculation method to apply. Accordingly, if the enterprise calculates value-added tax by the deduction method, the value-added tax rate of 8% shall apply; and in case the enterprise calculates value-added tax according to the percentage method on sales, collected, it will be reduced by 20% of the percentage rate for calculating value-added tax when issuing invoices for goods and services eligible for value-added tax reduction as prescribed.

The value-added tax reduction will be implemented quickly and businesses and consumers will immediately benefit. This tax reduction is expected to help reduce the cost of products and services, thereby stimulating consumer demand. Besides, it will help increase production output of enterprises and create more jobs for workers. Therefore, the reduction of value added tax is considered necessary solutions to promote the economy to recover soon after a long time affected by the pandemic.

The value-added tax reduction policy will be effective from February 1st, 2022 to the end of December 31st, 2022. Previously, value-added tax was only reduced for a few specific products, but with this policy, the object of tax reduction has been expanded in most fields of business and production. Therefore, the impact of this policy on the economy in the future is very large. However, in order for the value-added tax reduction to reach consumers, tax authorities need stricter inspection and control to meet the set goals. When in doubt, it is important to consult with tax lawyers for solutions and advice.

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What Are Challenges in Debt Recovery Litigation Procedures for Enterprise?

In the operation of the enterprises, the arising of bad debts could be unavoidable. However, in order to be able to file lawsuit and collect debts and minimize bad debts in practice, there are still many difficulties. Currently, the process of debt recovery according to the provisions of the law still encounter many problems and shortcomings, while enterprises need more effective solutions to recover debts fully and quickly in order to ensure revenue and financial balance for enterprise.

In order to be able to recover debts according to the provisions of the law, enterprises could hire dispute lawyers or by themselves must go through two stages with relatively complicated procedures. Accordingly, the lawsuit need to be filed and after the court’s judgment, the enterprise needs to file a petition for civil judgment enforcement. Because, the trial stage and the judgment execution phase are two independent stages, each with a different process.

First, the stage of lawsuits in court. When the enterprise’s interests are infringed, the enterprise will need to file a lawsuit at a competent court. This is a traditional method of lawsuits that forces enterprise to comply with the court’s strict processes and procedures and relevant legal regulations.

Specifically, in order to initiate a lawsuit at the court, an enterprise must meet the following conditions to initiate a lawsuit: (i) there is a debt incurred and the debtor fails to pay the debt as committed, leading to a dispute and the enterprise believes that rights and interests are infringed; (ii) the dispute between the enterprise and the debtor in this case must fall under the exclusive jurisdiction of the court, not under the jurisdiction of any other agency or organization (arbitration); (iii) in some cases, if there is an agreement or is required by law to carry out pre-litigation procedures such as conciliation, negotiation, notification, etc., the enterprise must complete such procedures before requesting a competent court to settle disputes between the enterprise and the debtor. In addition, in the petition, the enterprise needs to enclose invoices, vouchers and loan documents to prove that the debt collection is grounded. These are the basic conditions that enterprise need to keep in mind when filing a lawsuit to ensure that the petition is valid and not returned.

After the petition is accepted and the enterprise completes the payment of the court fee advance, the court will conduct verification and collect evidences; conducting meetings, checking the handover, accessing and disclosing evidences and conciliation. In case the involved parties cannot reconcile with each other on the payment plan or agree on interest and debt, the court will bring the case to trial. During this period, enterprises need to consider late payment interest, principal and debtor’s financial situation in order for request to be accepted by the court and serve as a basis for possible judgment enforcement.

Second, the procedure for requesting judgment enforcement. After the judgment or decision of the court takes legal effect, it must be respected by organizations and all citizens. Accordingly, enterprises, especially debtors, within the scope of their responsibilities, should strictly abide by judgments and decisions and must take responsibility before law for judgment enforcement. Within 5 years from the date the judgment or decision takes legal effect, the creditor can by himself or authorize another person or dispute law law firm to make a written request for judgment enforcement and send it to the district-level judgment enforcement agency where the court is located for first-instance trial court to request judgment enforcement. Accordingly, enterprises need to prepare a written request for judgment enforcement together with the judgment or decision requested for enforcement and other relevant documents. For the extent of the petition for judgment enforcement, the enterprise needs to show information about the debtor’s assets or judgment enforcement conditions.

In addition, enterprises have the right to request civil judgment enforcement agencies to apply measures to secure judgment enforcement, including: freezing of accounts, temporary seizure of assets and papers, temporary suspension of registration, transfer, etc. change the current state of assets to avoid the debtor’s dispersal of assets and inability to repay the debt according to the judgment. At the same time, the judgment enforcement agency will issue a notice of judgment enforcement, setting a time limit for the debtor to voluntarily execute the judgment of 15 days from the date the debtor receives or is duly notified execution decision. At the end of the above-mentioned voluntary time limit, the debtor who has conditions for judgment enforcement but does not voluntarily execute the judgment will be subject to coercion.

The enforcement of money assets will be applied by the judgment enforcement agency one of the measures such as deducting money from the account; subtract from the judgment debtor’s income, collect money from the judgment debtor’s enterprise activities; collect money from judgment debtors who are holding or collect money from judgment debtors who are kept by third parties or sell assets of judgment debtors to collect debts.

Although the judgments and decisions have taken effect, the initiation of lawsuits and judgment enforcement in many cases still cannot be enforced and the enterprise can debt recovery is challenging.

One is the determination of the debtor’s address for the court to serve the documents. The debtor always tends to evade and not cooperate, i.e. constantly changing addresses and causing difficulties for the court in the process of settling the case. Accordingly, the court could not proceed to serve the debtor, then some courts have decided to return the petition to the claimant, or suspend the case because it considers that there are not enough conditions to initiate a lawsuit or not summon the defendant. This is one of the main factors causing delays in the legal process when enterprises initiate lawsuits.

The second is the application of trial procedure in absentia. In order to fully meet the conditions for trial in absentia, the court will take time and many measures to verify and post procedural documents according to regulations. Besides, for debt disputes with complicated elements, it takes more time to collect more documents and evidences, conduct solicitation of document expertise, etc. or the case has many people with interests and obligations related, the trial was adjourned several times. Therefore, the intangible interests of enterprises have been seriously affected.

Third is the execution process. In fact, many enterprises have had court judgments, but the judgment enforcement process has lasted for many years, and enterprise have not been able to recover their debts. This problem may arise from the lack of flexibility in the coordination between banks, other agencies and organizations and the judgment enforcement agency, which is detrimental to the verification and distraint of assets of the agency, directly affecting the time of judgment enforcement.

Fourth is for the distraint, auction of assets that are assets that are difficult to determine the value of, or properties that are in dispute or there are no auction participants are also reasons for the delay in debt recovery.

Fifth is due to human subjective factors. Specifically, due to opposing and uncooperative acts of changing the current status of mortgaged assets, obstructing the verification of judgment enforcement conditions, asset valuation, and asset auction. For movable property, the debtor could actively move or disperse in order to cause difficulties in the handling process. In addition, there are cases where enforcers violate the time limit for notifying or serving judgment enforcement decisions/notices, failing to conduct verification…

Hence, enterprises that wish to proceed debt recovery effectively need to proactively collect information, judgment execution conditions of the debtor and provide it to the judgment enforcement agency. Besides, it is necessary to seek the legal advice of law firm with experience in litigation and enforcement for debt recovery process in Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang, will help customers conveniently drafting contracts, Debt Recovery, Set up business, Foreign invest, ....

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What Are Changes on Enterprise Registration According to Decree No. 01/2021/ND-CP?

On January 4, 2021, the Government issued Decree No. 01/2021/ND-CP on enterprise registration.

From January 4, 2021, the following 04 procedures will be carried out in conjunction: Registration of establishment of enterprises, branches, representative offices in Vietnam; Labor usage declaration; Granting the number of the social insurance participant; Register to use invoices of the enterprise.

The enterprise code is also the enterprise’s taxpayer identification number and the unit participating in social insurance number of the enterprise. According to previous regulations, only the enterprise code was specified as the enterprise’s taxpayer identification number.

The Business Registration Office has the right to accept or reject the intended name for registration of the enterprise. The opinion of the Business Registration Office is the final decision to avoid the identical, mistaken enterprise name and violation of the regulations on enterprise naming. In case of disagreement with this decision, an enterprise may initiate a lawsuit in in Vietnam accordance with the law on administrative procedures.

In case an enterprise registers the date of business commencement after the date of being granted an enterprise registration certificate, the enterprise is entitled to do business from the date it is registered, except in the case of conditional business investment.

The person competent to sign the application for enterprise registration may authorize other organizations or individuals to carry out enterprise registration procedures. Authorized subjects may be individuals, organizations or non-public postal service providers or single service providers of public postal services. In case of authorizing a public postal service provider to carry out enterprise registration procedures, when carrying out enterprise registration procedures, postal staff must submit a copy of the application form according to the form provided by the operator. Public postal service providers to issue with certified signatures of postal staff and persons competent to sign written application for enterprise registration. In case of authorizing a non-public postal service provider to carry out enterprise registration procedures, the enterprise registration dossier must be accompanied by a copy of the service contract with the organization providing services to perform procedures related to enterprise registration, referral of that organization to the individual directly performing procedures related to enterprise registration and copies of legal papers of the individual introduce.

In addition, the Decree also stipulates that in addition to the way of paying fees and charges directly at the Business Registration Office, the fee payer can transfer money to the account of the Business Registration Office or use an electronic payment service. The enterprise registration fee is not refundable to an enterprise in the event that an enterprise is not granted an enterprise registration certificate. Online payment of fees and charges will also be supported on the National Business Registration Portal. However, the fee for using this service will not be included in the business registration fee, the fee for providing and disclosing information. In the event of an error in the electronic payment process, the fee or fee paying organization or individual should contact the service provider intermediary for settlement.

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