How to Prepare and Request for Imposition of Anti-dumping Measures in Vietnam?

  Organizations or individuals representing a domestic industry (Requesting Party) have the right to submit an application of request for imposition of anti-dump

The requesting party could themselves prepare or seek legal help from local international trade lawyers for representing and submitting an application of request for imposition of anti-dumping measures.

Following are

Stage 1: Preparation for the application

Application of request for imposition of anti-dumping measures (hereinafter referred to as “Application of request”) includes a written request for imposition of anti-dumping measures (hereinafter referred to as “Written request”) and related documents.

Stage 2: Submitting the application

The Requesting Party must submit one (01) copy of the Application of request to Dumping and Subsidy Investigation Division (hereinafter referred to as “Investigating Authority”) under Trade Remedies Authority of Vietnam, Ministry of Industry and Trade, which is located on 23 Ngo Quyen Street, Hoan Kiem District, Hanoi. The authority works during office hours from Monday to Friday.

In case of the Requesting Party asks to keep some information in the Application request confidential, Requesting Party must submit two (02) copies of the Application of request which comprise one (01) copy containing public information and one (01) copy containing confidential information. Regarding the confidential information, the Requesting Party must attach a detailed explanation of the request for confidentiality of the information and a summary of the contents of the confidential information that may be disclosed to other relevant parties.

The Investigating Authority shall verify the adequacy and validity of the Application of request and notify the result to the Requesting Party within 15 days from the receipt of the application.

Stage 3: Supplementing the application

In case of the Application of request is not adequate or valid, the Investigating Authority shall request supplementation from the Requesting Party. The time limit for supplementation of the application is decided by the investigating authority but not lower than 30 days from the notification of supplementation.

In case of the Application of request is adequate and valid, the Investigating Authority shall inform the related parties including the Requesting Party about receiving the application and start to verify the content of the Application of request. After this stage, the procedure for submitting an application of request for imposition of anti-dumping measures shall be completed.

In general, the information in the Application request should be adequate and valid. However, to pass the content verification and become a basis for issuing a decision to launch the investigation, the Requesting Party must satisfy the two (02) following conditions:

In terms of the condition of legal status, the Requesting Party must be eligible for the legal representative status of the domestic industry as prescribed in Art. 79(2) and Art. 87(2) of the Law on Foreign Trade Management (Art. 31(2)(a) Decree 10/2018/ND-CP). The Requesting Party shall be regarded as representing a domestic industry when all the following requirements are fully met:

i) The total volume or quantity of similar goods manufactured by the domestic manufacturers that submit the dossier and domestic manufacturers that support the request for application of anti-dumping measures is larger than the total volume or quantity of similar goods manufactured by the domestic manufacturers that oppose such request;

ii) The total volume or quantity of similar goods manufactured by the domestic manufacturers that submit the dossier and domestic manufacturers that support the request for application of anti-dumping measures accounts for at least 25% of the total volume or quantity of similar goods manufactured by the domestic industry concerned.

In terms of the condition of evidence, the Requesting Party should prepare sufficient documents on the dumping on goods imported to Vietnam to prove that the dumping of such goods significant damage, threat to cause significant damage to domestic industry or significant obstruction to the establishment of the domestic industry. The contents that need to be carefully and fully prepared are:

i) Information on the normal price and export price of the described goods in the Written request; dumping margin of the imports subject to investigation of anti-dumping measures;

ii) Information, data and evidences on significant damage, threat to cause significant damage to domestic industry or significant obstruction to the establishment of a domestic industry;

iii) Information, data and evidences on the causal relationship between the import of goods requested to investigate and the damage to domestic industry significant damage, threat to cause significant damage to domestic industry or significant obstruction to the establishment of a domestic industry.

International trade lawyers at law company will always follow up with authorities for legal update on matters relevant to international trade dispute and anti-dumping measures in Vietnam.

What to Note When Signing Labour Contract with Foreign Workers?

  With the policy of opening the economy in Vietnam, not only Vietnam attracts investors to set up company, but also the demand for foreign workers in enterprises grows and diversifies. However, in order for Vietnam companies to be able to use foreign workers, they must sign a labor contract.

After meeting the conditions specified in the Labor Code on meeting the requirements for recruitment and working in Vietnam, the foreign worker working in Vietnam shall sign a labor contract before the expected date intend to work for the employer. In this contract, the employer and the foreign worker will agree on all issues arising in the process of working as well as using labor together.

Firstly, on the working position in the labor contract, it must show the correct position and position for which the employer has determined the needs with the competent authority and in accordance with the working position shown in the document and the work permits which have been granted to foreign workers.

Regarding the working time, it will normally be agreed upon by the two parties but must not exceed the number of working days (hours) as prescribed by Vietnamese law. The number of overtime hours must be based on voluntary work and must ensure rest time, rest during working time and weekends for foreign workers.

According to the provisions of the Labor Code, in addition to Vietnamese public holidays and New Year's holidays, foreign workers are allowed to take one more day off for the national traditional New Year and one national day of the country. This is a humane regulation, respecting the national culture of Vietnam. Therefore, the employer needs to learn about the National Day and the traditional Tet holiday of foreign workers so that the employees can take leave in accordance with the provisions of the law.

Regarding the term of the labor contract, the term of the labor contract for foreigners is also governed by the duration of the work permit issued by the competent Vietnamese authority. Accordingly, the term of the labor contract for foreign workers working in Vietnam must not exceed the term of the work permit. Therefore, the employer should pay attention to conclude the contract term in accordance with regulations.

In addition, employers and foreign workers should be aware of the terms of disputes which could potentially arise. Because, contract terms are an important legal basis to resolve when a labor dispute arises, agreeing in advance on how to resolve a dispute when a dispute arises will create a clear legal foundation for easy settlement by both parties.  Dispute lawyers are suggested to be consulted at an early stage to avoid dispute escalation.

At most, it is important that the employers and foreign workers need to pay attention and strictly comply with the provisions of the law so that the process of entering into and performing the contract is conducted smoothly and in compliance with the law in Vietnam.

Vietnam Promulgated Preferential Import-Export Tariff Schedule to Implement UKVFTA Agreement

 On May 21, 2021, the Government of Vietnam issued Decree No. 53/2021/ND-CP on preferential export tariffs and special preferential import tariffs of Vietnam to implement the Free Trade Agreement between the Vietnam and the United Kingdom of Great Britain and Northern Ireland for the period 2021-2022 (“Decree No. 53/2021/ND-CP”).

Decree No.53/2021/ND-CP promulgating the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the Union United Kingdom and Northern Ireland (UKVFTA) period 2021 - 2022 and conditions to enjoy preferential export tax rates, special preferential import taxes under the UKVFTA. The specific tax rates for each year of each item are specified in the appendices of that Decree.

Accordingly, in order to enjoy the preferential export tax rate under the UKVFTA, goods exported from Vietnam that are eligible for the preferential export tax rate specified in Decree No.53/2021/ND-CP must meet the following conditions: (i) Being imported into the United Kingdom; (ii) Having a transport document (copy) showing that the destination is the United Kingdom; (iii) Having the import customs declaration of the export consignment of Vietnamese origin imported into the United Kingdom (copy and translation in English or Vietnamese in case the language is showed on the declaration is not in English).

In addition, imported goods eligible for special preferential import tax rates under the UKVFTA must fully satisfy the following conditions: (i) Belonging to the special preferential import tariff schedule specified in the Appendix II promulgated together with Decree No.53/2021/ND-CP; (ii) Being imported into Vietnam from: The United Kingdom or Vietnam (Goods imported from the free trade zone into the domestic market); (iii) Meeting the regulations on origin of goods and have proof of origin according to the provisions of the UKVFTA.

Information above are the provisions on the import and export tariff of goods under the UKVFTA, goods import and export enterprises need to pay attention to be able to apply the import preferential tariff, in order to bring new business highest benefit for the business.

Anti-dumping Measures for H-shaped Steel Products From Malaysia Remain in Place

  On August 18^th, 2021, the Ministry of Industry and Trade issued the Decision No. 1975/QD-BCT on the application of official anti-dumping tax on some H-shaped steel products originating from Malaysia (“Decision No. 1975/QD-BCT”). Accordingly, the anti-dumping measures against a number of H-shaped steel products originating from Malaysia continue to be maintained under Decision No. 1162/QD-BCT dated April 02^nd, 2021 of the Minister of Industry and Trade.

The Ministry of Industry and Trade started investigating the case on August 24^th, 2020, the investigation process was carried out in accordance with the laws. On the basis of information collected from related parties, the Ministry of Industry and Trade has carefully considered and assessed the level of dumping of H-shaped steel products imported from Malaysia, the damages to the domestic industry as well as to assess the socio-economic impacts, including impacts on downstream industries and consumers.

According to Decision No. 1975/QD-BCT, the anti-dumping tax rate for some H-shaped steel products originating from Malaysia, holding HS codes: 7216.33.11, 7216.33.19, 7216.33.90, 7228.70.10 and 7228.70.90 is 10.64%. This tax rate is lower than the tax rate applied to H-shaped steel imported from China (about 22% on average) and also much lower than the proposed tax rate of the domestic manufacturing industry (16.30%). This anti-dumping tax is effective from August 21^st, 2021 and has an application term of 05 years, the term above could be changed or extended in accordance with the laws.

In order to have a basis for determining the origin of imported goods subject to anti-dumping tax, the Customs authority will check the proofs of origin of goods, including:

(i) Certificate of Origin (C/O); or

(ii) Documents certifying the origin of goods in accordance with the provisions of:

-ASEAN Trade in Goods Agreement;

-Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);

-Free Trade Agreement between the Socialist Republic of Vietnam and the European Union (EVFTA);

-Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

The above information is the regulation on application of official anti-dumping tax on some H-shaped steel products originating from Malaysia, organizations and individuals producing and exporting the above goods from Malaysia and relevant organizations and individuals need to know and implement according to the laws.

ANT Lawyers, a law firm in Vietnam always follow the legal developments to update client. Our international trade lawyers and consultants represent client in international trade disputes including anti-dumping cases at Vietnam authorities.

Performing Labor Contracts in the Period of Covid - 19 Epidemic

  

The Covid-19 epidemic has seriously affected the development of the economy and society. The situation of businesses being spacing as well as suspension of production and service provision happens regularly in epidemic-affected localities, and that also seriously affects the life stability of employees. Because most enterprises' financial situations get worse, so the businesses seem like they cannot guarantee income for employees. This is a force majeure and legal event, and the labor law has specific provisions to balance and ensure the interests of employees but also make the best support to enterprises.

 Specifically, according to the provisions of Clause 3, Article 99 of the Labor Code 2019, specific instructions are provided in Official Dispatch No. 264/QHLĐTL-TL of Ministry of Labor - Invalids and Social affairs  about paying salary (known as “ stoppage salary") for employees during the shutdown period related to the Covid-19 epidemic on July 15, 2021; direct instructions for businesses and employees during the epidemic period, in case of having to suspend work due to an incident that is not the fault of the employer such as a dangerous disease, the employee and the employer agree on the salary according to the following regulations.

In case of having to suspend work for less than 14 working days, the agreed stoppage salary shall not be lower than the minimum wage.

In case of having to suspend work for more than 14 working days, the stoppage salary shall be agreed upon by both parties but must ensure that that salary in the first 14 days is not lower than the minimum wage.

Accordingly, the labor relationship is a civil relationship as well as ensuring the agreement between the parties, however, it is also necessary to pay attention to ensuring the life quality  of the employee, thus stipulating the case of having to suspend work from under 14 days that the parties have the right to agree on a salary which is ensured not lower than the minimum wage; besides, in case of suspension for more than 14 days, this is undesirable in the labor relationship as the damage for the employee is not allowed to work as well as does not guarantee income, and this also for the employer that they are not able to guarantee the output of goods and services provided to the partner, as well as the normal operation of the business, etc. Therefore, the law allows the parties to agree on the stoppage salary in this case.

The epidemic is a force majeure. In the case of having to suspend work for too long as it is unable to judge the progress of the epidemic, to ensure the financial ability of the employer as well as the health and safety of employees, the parties may agree to suspend performing labor contract. The content specified at point h, Clause 1, Article 30 of the Labor Code 2019, allows the parties to agree to suspend the labor contract, therefore we can realize this is also an appropriate regulation in the current epidemic period. Currently, when suspended in performing a labor contract, the employee is not entitled to salary and other rights and benefits as agreed in the labor contract. However, the employee and the employer may have another agreement on employee benefits.

According to Article 31 of the Labor Code 2019, within 15 days after ending the suspension period of the labor contract, the employee must be present at the workplace as well as the employer must accept the employee's return to resume work under the signed labor contract in case of the valid labor contract, unless otherwise agreed by the parties. Accordingly, the employee and the employer must fully agree on the contents related to the suspension of the labor contract, to avoid issues and disputes arising after ending the suspension period of the performing labor contract.

In addition, Point c, Clause 1, Article 36 of the Labor Law 2019 stipulates that the employer has the right to unilaterally terminate a labor contract in case of natural disaster, fire, dangerous epidemic, enemy sabotage or migration, relocation, or downsizing of production and business under the request of the competent state agency, and the employer has sought all remedies but can’t help reducing personnel. Therefore, in the situation of dangerous epidemics, termination of the labor contract with termination grounds is considered a non - illegal act of unilaterally terminating the labor contract.

However, the grounds for termination because of the dangerous epidemic that the employer has tried all measures to overcome but can't help reducing the personnel are only necessary conditions that the employer needs to comply with, besides, Employers need to comply with the procedure for unilateral termination of labor contracts in terms of the notice period, as well as done allowances to employees when unilaterally terminating labor contracts according to regulations in law.

Investigation against Evasion of Trade Remedies for a Cane Sugar Products from Thailand

  On June 15^th, 2021, the Ministry of Industry and Trade issued the Decision No. 1578/QD-BCT on imposition of official anti-dumping and countervailing duties on cane sugar products imported from kingdom of Thailand (Case No.AD13-AS01). However, on August 25^th, 2021 the Ministry of Industry and Trade received the dossier on requesting investigation against evasion of trade remedies of 06 domestic sugarcane industries.

According to the Decision No.1578/QD-BCT, the goods on which the official anti-dumping and countervailing duties are imposed bear the following HS codes: 1701.13.00; 1701.14.00; 1701.91.00; 1701.99.10; 1701.99.90; and 1702.90.91. The official anti-dumping duty rate is 42.99% and the official countervailing duty rate is 4.65% will be applied for 05 years since June 16^th, 2021.

Until now, the exporting turnover of the products above of other countries in ASEAN (without Thailand) increases in value. The Ministry of Industry and Trade works with The Vietnam Sugarcane Association monitors the import situation and actively consults and supports the Vietnam Sugar Association as well as the domestic sugarcane industries in collecting information, data, and building request dossiers on requesting investigation against circumvention of trade remedies with cane sugar products to ensure compliance with the provisions of Vietnam's trade remedy law.

Acts of evading trade remedies are often complex in nature, involving many matters, legal regulations and international commitments. The countries also have different regulations on this issue. In some cases, even though goods fully meet the rules of origin, they can still be considered circumvention.

According to the regulation of Article 81.1 Decree No.01/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies, the Ministry of Industry and Trade confirmed that the dossier is valid. Within 45 days after the receipt of the valid dossier, the Minister of Industry and Trade shall consider the investigation based on the results of examination of dossiers of the investigating authority.

The investigation for prevention of evasion of trade remedies includes the following contents (i) Determination of actions aiming to evade trade remedies; (ii) The change of trade flows from the originating or exporting countries after the effective date of the decision on application of trade remedies and this change is the cause of such evasion; (iii) Damage to the domestic industry or the reduced effectiveness of the effective trade remedies.

The time limit for investigation of evasion of trade remedies shall not exceed 06 months since the issuance of the investigation decision.

Parties could consult with international trade dispute lawyers in Vietnam for assistance in responding to Vietnam authorities.

The Ministry of Industry and Trade to Investigate the Dumping of Table and Chair Products Imported into Vietnam

  On September 01^st, 2021 the Ministry and Trade issued the Decision No.2091/QD-BCT on investigation of application of anti-dumping measures for some table and chair products holding the HS Code: 9401.30.00; 9401.40.00; 9401.61.00; 9401.69.90; 9401.71.00; 9401.79.90; 9401.80.00; 9401.90.40; 9401.90.92; 9401.90.99; 9403.30.00; 9403.60.90; 9403.90.90 origin China and Malaysia (Case code AD16) (Decision No.2091).

On December 29^th, 2020 the Trade Remedies Authority of Vietnam received the required dossier of some domestic producers on applying anti-dumping measures of the products above. This dossier is confirmed that is valid on June 03^rd, 2021.

According to the regulation on Law on Foreign trade management, Decision No.2091, and related regulations, the period of anti-dumping investigation is 12 months from July 01^st, 2020 to June 30^th, 2021. And the investigation period for determining damage is 03 years from July 01^st, 2018 to June 30^th, 2021.

The requesting anti-dumping tax of the requesting parties is 35,20% for the table, and 21,40% for the chairs products from China. The requesting anti-dumping tax is 32,40% for table and 24,90% for chair products from Malaysia.

The Trade Remedies Authority will send an investigation questionnaire to relevant parties to collect information, analyze and evaluate the allegations, including: (i) dumping behavior of the exporting enterprises of China and Malaysia; (ii) damage to the domestic industry; and (iii) a causal relationship between dumping and damage to the domestic industry.

The related organizations, individuals having importing, exporting, trading, using the investigation products should register the related parties and provide the necessary information to the Trade Remedies Authority to ensure their rights and benefit according to the regulation of the laws.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

Notice of Application for Exemption from Trade Remedies for Fertilizers, Billet and Long Steel Product

  On March 03rd, 2020, the Ministry of Industry and Trade issued Decision No. 715/QD-BCT on extending the application of safeguard measures to the goods which are imported DAP/MAP fertilizers bear the following HS codes: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00.

On March 20th, 2020, the Ministry of Industry and Trade issued Decision No. 918/QD-BCT on extending the application of safeguard measures to the goods which are imported billet and long steel products bear the following HS codes: 7207.11.00; 7207.19.00; 7207.20.29; 7207.20.99; 7224.90.00; 7213.10.10; 7213.10.90; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; 9811.00.00.

On March 20th, 2020, the Ministry of Industry and Trade issued Decision No. 920/QD-BCT; on extending the application of measures to prevent evasion of trade remedies for imported coil and wire products which bear the following HS codes: 7213.91.90; 7217.10.10; 7217.10.29; 7229.90.99; 9839.10.00.

According to the regulation of Article 16.1.c Circular 37/2019/TT-BCT on November 29th, 2019, the Ministry of Industry and Trade specified some contents on trade remedy measures (Circular 37/2019/ TT-BCT) in detail. Whereby, the Trade Remedies Administration (PVTM) requests enterprises that meet the conditions to be exempted in submitting a dossier of application for exemption from the application of trade remedies in the three cases mentioned above, including: documents specified in Article 14 and Appendix 03 Circular 37/2019/TT-BCT.

According to the regulation of Articles 15 and Article 16.3 Circular 37/2019/TT-BCT, it is recommended that companies to submit their application for exemption online or directly to the Trade Remedies Department before 17:00 on October 6th, 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

The Ministry of Industry and Trade Receiving Request for Exemption from Applying Anti-Dumping and Countervailing Measures in September 2021

  According to the regulations on the trade remedies in the Circular No.37/2019/TT-BCT on providing detailed regulations on trade remedy, in March and September of every year, the Trade Remedies Agency of Vietnam requires the companies which meet the conditions of exemption from apply anti-dumping and countervailing measures in the cases of AD01 (Cold rolled stainless steel products), AD02 (Galvanized steel products), AD03 and AD12 (H-Shaped steel products), AD04 (Color coated steel products), AD05 (Aluminum profiles products), AD07 (Plastics and plastic products made from polymers of propylene), AD08 (Cold rolled (cold pressed) steel in coils or sheets), AD09 (MSG), AD10 (Long yarn made of polyester), AD13-AS01 (Sugar cane), AD14 (Sorbitol).

Deadline for companies submitting the dossier on requiring applying for the exemption from anti-dumping and countervailing measures is before 5:00 P.M on October 09^th, 2021.

Application dossiers for applying for the exemption from anti-dumping and countervailing measures:

i) A written request for exclusion from trade;

ii) A copy of the enterprise’s certificate of business registration or investment certificate;

iii) Description of the good for which the exclusion request is submitted, including scientific name, trade name, common name; basic physical and chemical properties; main uses; production process; applicable international and domestic standards and/or regulations; HS code according to Vietnam’s nomenclature of exports and imports;

iv) The document stating information about the volume, quantity and value of the imported good for which the exclusion request is submitted (in the last 03 years and in current year);

v) The written production process of the product of which input material is the good for which the exclusion request is submitted;

vi) The demand for consumption or use of the imported good for which the exclusion request is submitted (in the past 03 years and in the current year);

vii) The prescribed or estimated level of consumption of raw material which is the good for which the exclusion request is submitted;

viii) Documents or samples proving the difference between the good for which the exclusion request is submitted and the like or directly competitive products produced by the domestic industry;

ix) The document stating information about the production line and output of the good for which the exclusion request is submitted in the past 03 years and those in the current year;

x) Documents proving the demand for use of the quantity of good for which the exclusion request is submitted, including contracts signed with customers, written approvals for in-progress projects or other relevant documents.

Note: In case the company which has been granted an exemption for 2021 is about to use up the granted exemption volume, the company can submit an additional application for exemption at any time in 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

Summary of Customs Development Strategy from 2021 to 2030

  In order to create favorable conditions for export and import to ensure state budget revenue and combat smuggling of banned and toxic goods, intellectual property infringement, counterfeiting of origin, affecting national security, contributing to national security create fairness and equality in business as well as modernize the Customs sector, the General Department of Customs has issued the Draft Customs development strategy for the period of 2021-2030 to gradually build Vietnam's Customs in accordance with the new situation.

The Draft Decision on Customs development strategy for the period of 2021-2030 (the "Draft") expect to ensure the management of the State and in compliance with international commitments which Vietnam is a member. Besides, the Draft also is expected to create favourable conditions for enterprises and flexibility in management towards modernization of the Customs in the new era.

The Draft aims at the overall goal of building a regular, modern force, on par with other countries in the region and the world, towards the development of a smart customs system, propose solutions to improve efficiency in the process of carrying out customs procedures and collecting taxes effectively to create convenience for passengers and businesses. At the same time, the Draft also aims to ensure maritime security, national competition and protect Vietnam's interests and sovereignty.

In addition, the Draft sets out the main goals for the period 2021-2030 with the smart customs model continuing to be the key goal, built in a professional direction, minimizing administrative procedures and synchronization throughout the system, applying the achievements of the Industrial Revolution 4.0 and the cooperation and facilitation of the Customs of developed countries to realize the requirements of reform and modernization of state administration towards building a digital government, E-government. In addition, the prevention of smuggling activities is still a prerequisite goal to protect the business environment in Vietnam. Moreover, the goal is to reduce the human resource apparatus, improve the capacity and qualifications of the customs force to suit the needs of innovation in customs management technology.

The Draft sets a target that by 2025, Customs will strive to complete the redesign of the customs system in the direction of digital customs while ensuring information security; to ensure 90% of applications will be processed online, minimizing manual administrative procedures; to build a paperless, simple and effective working environment. Accordingly, the Draft is expected that 80% of inspection activities will be carried out through the digital environment, the information technology system of the General Department of Customs. Along with that, the Draft would improve the efficiency of the Customs Single Window to 100% for administrative procedures and integrate it on the National Public Service Portal for easy access and implementation by businesses and people; promote the signing of international treaties on customs to create favorable conditions for domestic enterprises as well as ensure the principle of benefits for all parties.

In order to achieve the above objectives, the General Department of Customs has proposed specific solutions to improve the legal system so that the implementation is synchronized; improve management methods to prevent violations and apply information technology to gradually guide people and businesses familiar with online procedures; improve the use of technology for customs officers, step by step reduce inappropriate procedures, and put the smart customs model into the application to make appropriate adjustments to reality.

In terms of customs operations, the Draft also sets out step by step application of supply chain management models to meet current needs and research the implementation in the field of insurance and customs clearance guarantees, accelerate the inspection of goods in electronic form, reduce paperwork to the paperless stage, simplify administrative procedures, reduce waiting time at the border, implement the flow of goods, authorization to check at the border gate, apply modern technology solutions and inspection and monitoring equipment suitable to the characteristics of the border gate area, capable of integrating and exchanging data in a centralized and unified manner.

Regarding tax administration, the Draft expects to uniformly apply taxes and collection rates suitable for each type of goods, minimize the tax filing process, quickly develop tax schedules as well as clear and transparent processes, creating convenience for both payers and regulators.

Management of import and export activities, import and export of means of transport must be unified, concentrated, and minimized the handling process, cutting unnecessary intermediary stages. The Draft also aims to encourage and create conditions for people, businesses and related parties to participate in legal policy criticism, cooperate with customs authorities in law enforcement and supervision.

With this Draft, Vietnam has the prospect that by 2030, Vietnam will complete the renovation and modernization in the customs sector, including building a strong and clean customs force, as well as equipping vehicles and applying artificial intelligence technology in customs management, striving to build a customs force on par with developed countries in the region, keeping up with advanced countries in the world.

ANT Lawyers, a law firm in Vietnam always follow up customs cases and its development to update clients on regular basis.

Vietnam to Review Application of Anti-Dumping Measures to Plastic and Polymer

  On July 20th, 2020 the Ministry of Foreign and Trade issued Decision No.1900/QD-BCT on applying the official anti-dumping measure to some plastic products and products from plastic made of polymer from propylene originated from the Republic People's of China, Kingdom of Thailand, and Malaysia (Case No.AR01, AD07).

On September 24th, 2021, the Ministry of Foreign and Trade issued Decision No.2201/QD-BCT on the first review of the application of anti-dumping measures to the products above.

The reviewed products

The plastic products and products from plastic made of polymer from propylene having the thickness is from 10 microns to 80 microns and the width is from 115mm to 7800mm. These products are holding HS Code 3920.20.10 and 3920.20.91. The current anti-dumping tax for these products is from 9,05% to 23,71% dependent on the exporter.

The scope of the review

To review the anti-dumping duties applied to:

Group of Kunlene companies, including Suzhou Kunlene Film Industries Co., Ltd. and Yunnan Kunlene Film Industries Co., Ltd.; and

Group of Kinwin companies, including Kinwin Plastic Industrial Co., Ltd.; Zhejiang Kinlead Innovative Materials Co., Ltd., and Ultra Fast Development Limited.

The period of review

The Investigating Authority will collect the data related to the review from October 01st, 2020 to September 30th, 2021.

The time limit for the review

According to the regulations on Law on Foreign Trade Management, the time limit for the review of products subject to the anti-dumping measure is 06 months from the day on which the decision on review is issued, with a possible extension up to 03 months if necessary.

The parties need to register as related parties to ensure their rights in this case.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

How to Request and Get the Suitable Covid-19 Vaccine in Vietnam?

  The Covid-19 pandemic is seriously threatening human life. In order to limit and prevent epidemics, a number of vaccines have been quickly developed and produced to promptly limit the spread of disease in the community and bring life back to normal. However, not all vaccines are suitable for all people of all ages. Whether or not an individual could chose the type of vaccine to be injected is still of public interest.

According to the Vietnam Center for Disease Control, up to now, Vietnam has eight vaccines against COVID-19 licensed for use by the Ministry of Health. Vaccines currently being approved for use include: AstraZeneca, Gam-COVID-Vac (also known as SPUTNIK V), Vero Cell, Pfizer/BioNTech's Comirnaty, Spikevax Vaccine (Alternatively Moderna), the vaccine Janssen vaccine, Hayat-Vax vaccine and Abdala vaccine. Each vaccine has different ingredients, and individuals with a history of allergies to vaccine components could face certain level of risks after vaccination.

The vaccines used in Vietnam have recorded information on cases of vaccine side-effects. Specifically, the British AstraZeneca vaccine causes the injector to have fever symptoms. It is considered a normal symptom after injection, but for people with a history of allergy to the components of vaccines, it is possible to choose the appropriate vaccine for the medical condition. mine.

Specifically, the Centers for Disease Control also recommends that individuals who are allergic to any component of the vaccine should not receive that vaccine. Having said that, if an individual is allergic to any component of a vaccine, he or she can request an alternative vaccine. Vietnam does not allow individuals to arbitrarily choose the type of vaccine to be injected, but if they have special medical conditions such as allergic to vaccine components, they will be considered for alternative if such requested vaccines are available.

To be able to claim the appropriate vaccine, the individual must first be on the vaccination list of the local are of residence or of the company.  The individual can write the request to the local  Department of Health requesting the appropriate vaccine.

Therefore, in order to ensure their own health and the right to be vaccinated, individuals, especially those with a history of allergies to vaccine components, should pay attention to strictly follow the regulations on vaccination. Getting the right vaccines helps limit risks and contributes to limiting the spread of disease, protecting health of community.

Request to Apply Anti-dumping Measures on Liquid Sugar Extracted from Corn Starch (HFCS) from China and Korea

  Liquid sugar is one of the additives used to sweeten in food processing, widely used in the processing of fast food, bottled food, etc. On May 21^st, 2020, the Trade Remedies Administration (Investigating Authority) received a request to apply anti-dumping measures on liquid sugar extracted from corn starch (HFCS) originating from China and Korea imported into Vietnam from the representative of the Domestic Sugar Industry (the Requesting Party).

On June 29^th, 2020, the Ministry of Industry and Trade issued Decision No. 1715/QD-BCT conducting an investigation on the investigation and application of anti-dumping measures on liquid sugar extracted from corn starch (HFCS) from China and Korea (Case No. AD11).

The investigation results show that HFCS liquid sugar products imported from China and Korea are being dumped in the Vietnamese market and have significantly damaged the domestic industry. However, the causal relationship between the dumping behavior of the investigated goods imported from China and Korea and the damage to the domestic industry has not been clearly shown.

Therefore, according to the provisions of Point b, Clause 3, Article 71 of the Law on Foreign Trade Management, the investigating agency proposed the Minister of Industry and Trade to stop investigating the case and not apply dumping measures on goods imported goods under investigation.

On October 07^th, 2021, the Minister of Industry and Trade issued a Notice attached to Decision No. 2274/QD-BTC on termination of the investigation and non-application of anti-dumping measures for liquid sugar extracted from corn starch originating from the People's Republic of China and the Republic of Korea.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

MOIT Implements the Final Review of Applying the Anti-Dumping Measures to H-Shape Steels Imported from China to Vietnam

  On August 21^st, 2017, the Ministry of Industry and Trade issued Decision No.3283/QD-BCT on applying the official anti-dumping measure to imported galvanized steel products. The anti-dumping measure is applied until September 05^th, 2022 (except having any changes, extend according to the regulations of the laws)

According to the regulations of the Law on Foreign trade management and WTO Anti-Dumping Agreement, on October 13^th, 2021, the Ministry of Industry and Trade issued the Decision No.2301/QD-BCT on final review of applying the Anti-Dumping Measures to H-Shape Steels imported from China (Case No.ER01. AD03).

1.The reviewed products:

Some of H-Shape steels imported from China are holding HS Code 7216.33.11, 7216.33.19, 7216.33.90, 7228.70.10, 7228.70.90. The current anti-dumping tax for these products is from 19.03% to 29.17% dependent on the exporter.

2.The scope of the review:

i. Assess the possibility of imported goods being dumped if anti-dumping measures are terminated;

ii. The possibility that the domestic industry will suffer material injury or be threatened with material injury if the application of anti-dumping measures is terminated; and

iii. A causal relationship between the possibility of dumping and the possibility of injury suffered by the domestic industry;

iv. Other contents as prescribed by laws;

3.Registering for the related parties

The parties according to Article 74 Law on Foreign trade management could register to related parties, including:

i. Overseas organizations and individuals that produce and export products under consideration to Vietnam;

ii. Importers of products under consideration;

iii. Foreign associations whose majority of members are organizations and individuals producing and exporting products under consideration;

iv. The Government and competent authorities of the exporting country of product under consideration;

v. Organizations and individuals that submit the application for the trade remedies;

vi. Domestic producers of like products;

vii. Domestic associations whose majority of members are producers of like products;

viii. Other organizations and individuals that obtain legal rights and interests related to the investigated cases or facilitate the investigation or representative organizations of protection of customer rights.

4.The questionnaire for final review

Within 15 days since the issuance of the decision on review, the investigating authority shall send the questionnaire for review to the following subjects:

i. The review requesting party;

ii. The reviewed party;

iii. Other involved parties deemed necessary by the investigating authority.

Within 30 days after receiving the questionnaires for review, the concerned parties must provide written replies to all questions in the questionnaire.

5.The time limited for the final review

The time limit for the final review is 09 months from the day on which the decision on review is issued, with a possible extension up to 03 months if necessary.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

Investigating and Applying Measures to Prevent the Evasion of Trade Remedies on Cane Sugar Products

  On September 21^st, 2021, the Minister of Industry and Trade issued Decision No. 2171/QD-BCT on investigating and applying measures to prevent the evasion of trade remedies on some cane sugar products originating from Thailand through Laos, Cambodia, Malaysia, Indonesia and Myanmar (code of case: AC02.AD13-AS01).

Anti-dumping Law Firm in Vietnam

For the purpose of the investigation, the Trade Remedies Authority of Vietnam (Investigating Authority) issued Official Dispatch No. 821/PVTM-P1 on the issuance of the Questionnaire for foreign producers and exporters.

The Response to the Questionnaire shall include the general information and the sale data of the foreign manufacturers and exporters. The content of the Response shall be one of the important grounds for Investigating Authority to conclude the case.

The Investigating Authority requests all the relevant parties to cooperate by filling and sending the Response of the Questionnaire before 15:00 December 01^st, 2021 (Hanoi time). The way to answer the Questionnaire, the amount of the Response, the form and the deadline for submitting the Response are detailed in the Questionnaire.

The information, data provided during the responding process and the right to access the information of the case during the investigation shall be implemented in accordance with the regulations on confidentiality of information.

To ensure its rights and interests, the relevant parties need to answer and submit the Questionnaire on time. In case the Investigation Authority does not receive the Response on time or the information provided is incorrect or incomplete as requested, the Investigating Authority shall apply the provisions on the non-cooperation of related parties in a trade remedy case.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

Investigation Questionnaire for Foreign Manufacturers and Exporters in Case of the Final Review

  On October 13^th, 2021, the Ministry of Industry and Trade issued the Decision No.2301/QD-BCT on the final review of the application of anti-dumping measures to a number of H-shaped steel products originating from People's Republic of China (China) imported into Vietnam (Code of case ER01.AD03).

On October 29^th, 2021, Department of Trade Remedies issued Official Letter No.839 /PVTM-P1 on the issuance of the Investigation Questionnaire for foreign manufacturers and exporters in the case ER01.AD03.

The Investigating Authority requires all relevant foreign manufacturers/exporters to cooperate and participate sufficiently during the investigation. The content of the response will be the basis for the Investigating Authority to review and draw a conclusion of the investigation of this case. In the event that the Investigating Authority does not receive timely responses from foreign manufacturers/exporters or the information provided is incorrect or incomplete, the Investigating Authority will use information and documents provided by related parties, the information and documents collected by the Investigating Authority, including conducting on-site investigations abroad according to the regulation of Law on Foreign trade management.

The relevant parties must respond to the Investigation Authority directly to Investigation Authority before 17:00 December 05^th, 2021 (Hanoi time).

The information, data provided in the Questionnaire of the Investigation Authority and the right to access the information of the case during the investigating term will be implemented in the regulations of the laws.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

How to Request Exemption from Application of Trade Remedies for Polyester Long Fiber Products (AD10)?

  On October 13^th, 2021, the Minister of Industry and Trade issued Decision No.2302/QD-BCT on on applying the official anti-dumping measures on long fiber products made from polyester originating from the People's Republic of China, the Republic of India, the Republic of Indonesia (Case No. AD10).

On October 19^th, 2021 the Trade Remedies Authority of Vietnam issued Announcement No. 23/TB-PVTM on receiving application for exemption from application of trade remedies for a number of polyester long fiber products (Case No. AD10).

The Investigation Agency requires the relevant parties that meet the conditions for exemption to consider submitting an application for exemption from anti-dumping measures including the documents specified in Clause 1, Clause 2, Article 14 of Circular 37/2019/TT-BCT dated February 29, 2019 of Ministry of Industry and Trade (Circular 37/2019/TT-BCT) and Appendix 3 issued together Circular No. 37/2019/TT-BCT.

The relevant parties submit their application for exemption to the Trade Remedies Department before 5:00 p.m. on November 18, 2021 (Hanoi time).

The information provided in the application must be accurate. After submitting the application, the concerned parties pay attention to the processing of the application. In case of necessity, the investigating authority may organize working with related parties, including verification at production and business facilities of relevant organizations and individuals to clarify the contents of the dossier.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

How Products could Enjoy Exemption in Trade Remedies?

  The scope of the exemption applies primarily to both provisional and formal trade remedies. For goods subject to investigation for application of trade remedies, if falling into one of the following cases, organizations or individuals that import/use such goods will be allowed to submit an application for exemption. The importer or manufacturer could consult with international trade lawyers to present the case to the authority to submit application for exemption if meeting the conditions as regulated by laws.

After the 2017 Law on Foreign Trade Management was promulgated with a more comprehensive and comprehensive system of legal provisions on trade remedies, the Ministry of Industry and Trade issued Circular No. 06/2018/TT-BCT in order to provide specific and detailed regulations in this field, including content of the scope of exemption from application of trade remedies. However, based on Clause 1, Article 9 of this Circular, the Ministry of Industry and Trade has only given four (04) exemptions.

After considering the actual situation, on November 29, 2019, the Ministry of Industry and Trade replaced Circular 06/2018/TT-BCT with Circular No. 37/2019/TT-BCT, which stipulates all six (06) types of goods which are exempted from trade remedies. Specifically, Article 10 of Circular No. 37/2019/TT-BCT allows the Minister of Industry and Trade to consider exemption from application of temporary trade remedies and official trade remedies for a number of goods. Imported goods are subject to trade remedy measures in one of six (06) cases.

First, goods cannot be produced domestically.

With this addition, it is understandable that Vietnamese law, in addition to protecting the domestic manufacturing industry, also considers allowing Vietnam to import important goods that cannot yet be produced on its own, in order to ensure to fully and promptly meet the development needs of all aspects, especially the economy and society of the country. The granting of a trade remedy waiver for goods that cannot be produced in the country may initially be seen as preventing the formation of a domestic industry producing the goods. However, the introduction of a new product into the Vietnamese market is a test for the tastes and needs of customers, through which the importation can assess the development potential and profit of that industry in Vietnam, thereby stimulating the investment and production of domestic manufacturers.

Second, goods have distinctive characteristics from domestically produced goods that cannot be substituted for domestically produced goods.

The exemption from trade remedies for different goods that cannot be substituted by domestically produced goods also ensures the supply of special goods, prevents the scarcity of goods, the supply of goods and the supply of goods that cannot be replaced enough demand in the market.

Third, goods are special products of like products or directly competitive goods produced in the country.

Special products are products with the same physical and chemical characteristics as like products or directly competitive goods are domestically produced but have some characteristics, appearance or product quality that are different from those like products, directly competitive goods produced in the country. Basically, this explanation also causes some confusion with the above-mentioned case of goods with differences that cannot be substituted by domestically produced goods, making it difficult to determine the exemption case. However, only goods that fall into one of the six cases can apply for an exemption, so the applicant only needs to prepare sufficient evidence to prove that the goods they import/use in a case that satisfies the condition for an exemption.

Fourth, like products, directly competitive goods produced in the country are not sold on the domestic market under the same usual conditions.

Normal conditions directly affect the quality, efficiency of use, etc. of the goods. Therefore, the difference in normal conditions has brought special features to goods from abroad that are imported/used into Vietnam, which is the basis for exemption from trade remedies, in order to meet the needs of the domestic market.

Fifth, like products, directly competitive goods produced in the country do not meet the amount of domestic use.

With the priority criteria for the development of the domestic manufacturing industry, acts of importing/using foreign goods that cause damage or threaten to cause damage to the domestic industry will be investigated and applied for defensive measures commerce. However, in cases where the domestic industry cannot meet the demand for like products, the relaxation of trade remedies is essential to ensure supply and market balance.

Sixth, imported goods are included in the total amount requested for exemption from regulations for research and development purposes and other non-commercial purposes.

With this regulation, it can be seen that in the future, the goals of science and technology development, technical level development, research and non-commercial purposes will be increasingly focused and encouraged instead of just economic goals as before. Therefore, it can be understood why state agencies allow the import/use of goods for research, development and other non-commercial purposes, even though they are likely to negatively affect the economy domestic production.

Accurate identification of cases where imported/used goods are exempted from trade remedy measures is extremely important and has great significance for foreign importers and manufacturers. Therefore, before submitting an application for an exemption, it is necessary to base on the above provisions and consult with international trade lawyers in trade remedies to accurately determine the scope of the exemption, in order to avoid wasting time and money.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

What Are Real Estate Transaction Conditions for Buyer and Seller in Vietnam?

The real estate market is always an attractive market with a large source of potential speculative profits for investors.  Because real estate transaction is always high in value, and buying a property for most people is always a life time important decision, and many times with the financial support from the bank, therefore in developed country, real estate lawyers are always involved in all steps of the transaction to ensure the legitimate transfer of the property.  In Vietnam, in reality, many real estate transitions are conducted by the buyer and sellers themselves without real estate lawyers and there are many disputes arisen from the transactions in regard to property deposit agreement, property sales and purchase agreement between real estate developer and buyer for a new property, or between buyer and the previous property owner for resale property.

Residential property is one of the common types of real estate traded, so when joining in transactions related to property, it is necessary to ensure the conditions for property transfer.  The related parties need to comply and meet the requirements of the above conditions for a successful transfer transaction.

Conditions for property transfer transaction include the following basic points: the transferred property is not in a dispute, complaint, or claim about ownership; the transferred property shall be within the property ownership period, in the case of property owners with a definite term; the transferred property is not distrained for judgment enforcement or distrained to comply  legally effective administrative decisions of competent state agencies; the transferred property is not subject to a decision on land recovery or a notice of house clearance or demolition issued by a competent agency.

For the conditions on the parties to the property transaction, the property transferor needs to meet the following conditions:

The transferor is the owner of the property or the person permitted or authorized by the owner to carry out the transaction on property according to the provisions of law;

In case of transfer of a commercial house purchase and sale contract, the transferor shall be the person who bought the house from the investor or the person who has received the transfer of the house purchase and sale contract;

If the transferor is an individual, this person shall have full civil act capacity to carry out transactions on housing under the provisions of civil law;

If the transferor is an organization, it shall have legal status, unless the organization donates a house of gratitude or charity.

At the same time, the transferee shall also meet the conditions, specifically including the following conditions:

If the transferee is a domestic individual, this person shall have full civil act capacity to conduct property transactions under civil law and it is not required to them to have permanent residence registration in the place where the housing transferred is located;

If the transferee is a foreign individual or overseas Vietnamese, this person shall have full civil act capacity to carry out transactions on housing under Vietnamese law. In addition, this person must be eligible to own houses in Vietnam according to the provisions of law and it is not required to them to have temporary residence registration or permanent residence registration at the place where the housing transferred is located;

If the transferee is an organization, it shall have legal status and not depend on the place of business registration and establishment; if it is a foreign organization, it must be eligible to own a house in Vietnam according to the provisions of law; if the organization is authorized to manage to house, it must have the function of providing real estate services and be operating in Vietnam under the law on real estate business.

Having said that, it would be more efficient for buyer and seller to engage real estate law firm specializing in real estate transaction for buying and selling property in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer.

Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06)

  The MOIT Receives the Dossier on Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06).

On March 03th, 2020, the Ministry of Industry and Trade issued the Decision No.715/QD-BCT on extending the application of safeguard measure to DAP/MAP imported fertilizers holding the HS code: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00. The extension period for application of safeguard measures is 30 months from March 7^th, 2020 to September 6^th, 2022 (if not extended).

According to the Article 69.1 Decree No.10/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies, at least 09 months before the decision on imposition of safeguard measures expires, the investigating authority shall announce the receipt of dossiers for final review of imposition of safeguard measures. Within 30 days since the announcement of the investigating authority, organizations and individuals may submit the dossier for final review of imposition of safeguard measures.

The Trade Remedies Authority in Vietnam required the domestic producers of like or directly competitive products that wish to extent the duration of the safeguard measure shall submit an application for the extension of the safeguard measure.

The dossier including an application for the extension of the safeguard measure shall obtain the evidence, showing that the domestic industry has made necessary adjustments to raise its competitive capability, and the withdrawal of the safeguard measure will cause the serious injury or threat of serious injury to the domestic industry.

Deadline for submitting the dossier on requiring final review is before 5:00 P.M on October November 09^th, 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

How to Transfer Shares in a Joint Stock Company?

  According to Vietnam law, joint stock company is one form of typical company types in Vietnam.  For a joint stock company to be set-up, there should be at least three shareholders.  In the joint stock company, the charter capital is divided into equal parts called shares. Shareholders have the right to freely transfer their shares to others, but there will be some certain restrictions.

Within three years from the establishment of the company and the issuance date of the Certificate of Enterprise Registration, the ordinary shares of founding shareholders may be transferred to other founding shareholders and may only be transferred to a person that is not a founding shareholder if the transfer is accepted by the General Meeting of Shareholders. In this case, the transferor does not have the right to vote on this transfer. In addition, if the company's charter has provisions restricting the transfer of shares, the transfer of shareholders must also comply with the provisions of the Charter and these regulations will only applicable if they are written in the certificates of the shares subject to restriction.

The transfer of shares is usually made by the parties by contract or transaction on the securities market. In case of transfer under a contract, the documents shall bear the signatures of the transferor and the transferee or their authorized representatives. In case shares are transferred on the securities market, the transfer procedures prescribed by securities laws shall apply.

Shareholders of a joint-stock company have the right to donate part or all of their shares in the company to other individuals or organizations; use shares to pay off debt. At that time, individuals and organizations that are given or received the donation or debt payment will become a shareholder of the company. However, they will only become shareholders of the company from the time their information is fully recorded in the register of shareholders.

In case of the death of a shareholder that is an individual, his/her heir at law or designated by a will shall become a shareholder of the company. If such shareholder dies without an heir or the heir refuses the inheritance or is disinherited, his/her shares shall be settled in accordance with civil laws.

The last point to pay attention is when there is a share transfer event, the company shall register the changes of shareholders in the shareholder register as requested by relevant shareholders within 24 hours after the request is received.