Vietnam Business Expansion: Why You Need Solicitors in Vietnam by Your Side

  At a time that marks the beginning of the global pandemic, Vietnam is one of the only countries to report GDP growth in 2020. Specifically, Vietnam’s GDP will increase by 5.2% in 2021 and growth of 5.2%. 7.7% by 2022. This positive economic position has made Vietnam a potential market for international investors.

Expanding your business into a foreign market is an exciting endeavor, and Vietnam has been steadily emerging as a prime destination for entrepreneurs seeking growth opportunities. With its dynamic economy, vibrant culture, and a population of over 97 million, Vietnam presents a wealth of possibilities for businesses. However, to navigate the complex legal and regulatory landscape in this Southeast Asian nation, you need more than just a map; you need Solicitors in Vietnam by your side.

Why Vietnam?

Before we delve into the role of solicitors in Vietnam, let’s briefly explore why Vietnam is a compelling choice for business expansion. The country’s economic transformation over the past few decades has been nothing short of remarkable. Its strategic location, robust infrastructure, and a young, skilled workforce make it an attractive destination for various industries, from manufacturing to technology and services.

Vietnam’s government is actively promoting foreign investment, with initiatives such as tax incentives and preferential treatment for certain industries. The growing middle class is fueling consumption, and the country’s proximity to other major Asian markets makes it an ideal base for regional operations.

The Complex Legal Landscape

While the potential rewards are substantial, entering the Vietnamese market comes with a unique set of challenges. The legal and regulatory framework in Vietnam can be intricate and sometimes ambiguous. Navigating the system without local expertise can lead to costly mistakes and setbacks.

This is where Solicitors in Vietnam come into play. Here’s why having legal experts by your side is essential for a successful business expansion:

Understanding Local Laws and Regulations

Vietnam has its own legal system, which is often vastly different from Western legal systems. Without a deep understanding of Vietnamese law, you could unknowingly violate regulations, which can result in fines, legal disputes, or even the termination of your business operations. Solicitors in Vietnam can help you interpret and adhere to local laws, ensuring compliance at every step.

Navigating Licensing and Permits

Obtaining the necessary licenses and permits to operate in Vietnam can be a daunting task. Solicitors in Vietnam can streamline this process, guiding you through the bureaucratic maze to secure the required approvals efficiently.

Contractual Agreements

Drafting and negotiating contracts with local partners, suppliers, and employees is a crucial part of business expansion. Having solicitors in Vietnam who are well-versed in the local business environment can help you create contracts that protect your interests and align with Vietnamese legal standards.

Intellectual Property Protection

Protecting your intellectual property (IP) is essential when expanding into a new market. Solicitors in Vietnam can advise you on registering trademarks, patents, and copyrights, ensuring that your IP rights are safeguarded.

Dispute Resolution

Should any legal disputes arise during your business expansion, solicitors in Vietnam can represent your interests in negotiations and, if necessary, in Vietnamese courts. They understand the intricacies of local dispute resolution procedures and can help you achieve a fair and favorable outcome.

Tax Compliance

Vietnam’s tax system can be complex, with various regulations and tax incentives available to different types of businesses. Solicitors in Vietnam can assist in optimizing your tax strategy, helping you minimize tax liabilities while remaining fully compliant with local tax laws.

Cultural and Language Barrier

The cultural and language differences in Vietnam can pose significant challenges for foreign businesses. Solicitors in Vietnam can bridge these gaps, facilitating effective communication with local authorities, partners, and stakeholders. Their local expertise ensures that you navigate cultural nuances with sensitivity.

Adapting to Market Changes

Vietnam’s regulatory environment is not static; it evolves with market dynamics and government policies. Solicitors in Vietnam can keep you informed about changes that may impact your business and help you adapt to new requirements seamlessly.

The Persuasive Case for Solicitors in Vietnam

In a market as promising and complex as Vietnam, the value of having Solicitors in Vietnam by your side cannot be overstated. They serve as your legal guides, helping you not only avoid pitfalls but also leverage opportunities effectively.

Consider this: while venturing into a new market is a bold move, it’s also a significant investment. To protect your investment and ensure a smooth entry into Vietnam, you need the expertise and guidance of solicitors who understand the local landscape intimately.

In a place where business customs, legal practices, and even negotiation styles may differ from what you’re accustomed to, solicitors can be your invaluable allies. They offer not just legal acumen but also a deep cultural understanding that can make or break your success in Vietnam.

Building a Strong Partnership

Selecting the right solicitors is crucial. Look for law firms with a strong track record in assisting businesses with their Vietnam expansion. They should have a team of lawyers who are not only skilled in Vietnamese law but also committed to your success and speak English for better communication.

When partnering with solicitors in Vietnam, establish a collaborative relationship. Share your business goals, objectives, and concerns openly. The more they understand your business, the better equipped they are to provide tailored legal solutions.

Expanding your business into Vietnam is a remarkable opportunity, but it’s not without its challenges. To overcome these challenges and thrive in the Vietnamese market, you need the support of Solicitors in Vietnam who can guide you through the legal intricacies, ensure compliance, and protect your interests.

Remember, in a foreign market, legal missteps can be costly and time-consuming. Investing in solicitors is an investment in your business’s long-term success and sustainability in Vietnam. With their expertise by your side, you can confidently navigate the complexities of the Vietnamese business landscape and seize the abundant opportunities it offers.

About ANT Lawyers, your solicitors in Vietnam

Our Vietnamese lawyers all hold high standards of legal expertise and professional ethics. We use English to communicate with foreign customers.

Our lawyers are members of Vietnam Bar Federation, Hanoi Bar Association.

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 has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/solicitors-in-vietnam/solicitors-in-vietnam.html

How to Start a Business in Vietnam as a Foreigner?

 Why to start a business in Vietnam?

In recent years, Vietnam has become an attractive destination for foreign investment thanks to its advantages of security, political stability, and favorable geographical position to trade with the world. This is both the connection center of the region and the gateway to penetrate the economies in the western region of the Indochina Peninsula. In addition, the Vietnam government has increasingly been offering more preferential policies to create favorable conditions for foreign investors to start doing business in Vietnam.

How to Start a business in Vietnam?

What to consider to start a business in Vietnam?

To start a business in Vietnam, investors first need to choose for themselves an appropriate type of business based on the number of capital contributors, the amount of capital contributed, and the business’s purse.

According to the provisions of Vietnam law, foreign individuals and organizations can establish a limited liability company or a joint stock company or a partnership or a private enterprise.

The next issue that needs to be considered is the business line.

In order for the company to be able to operate, the company must register the appropriate business lines, related to business activities.

If the selected line of business does not require conditions, the enterprise can go into operation after the establishment of the company. This is considered non-conditional business area which most of company would do.

However, if the investor chooses a conditional business line to do business, the enterprise must meet the necessary requirements, apply for a business license as prescribed, and then go into operation. This is considered conditional investment area where there are some restrictions being required license, minimum charter capital, foreign ownership ratio…

Investors also need to choose a location for their business, which is legally allowed to conduct business activities. The company address must be located in the territory of Vietnam, and comply with requirement corresponding to purpose of business i.e. company address can not be in an apartment building or a dormitory for living purposes only; factory location has to be at proper zone for industrial purpose…

In order to serve the management of the State and facilitate business activities, newly established businesses need to have their own name and this proper name must be unique, not be the same or similar to previously registered businesses.

Enterprises are not allowed to use the names of functional agencies, state management agencies to name the company. The name of the business must include the type of company and proper name.

To avoid duplication with other companies, businesses can use abbreviations or English names, but must ensure that the company name will not cause confusion, without adding prefixes, suffixes or cultural symbols in the name of the business.

The investors need to apply for an Investment Registration Certificate at a competent authority in Vietnam. This is a mandatory procedure for all projects that want to establish a new legal entity in Vietnam.

The processing time for an investment certificate application is around 30 days depending on the specific project. After being granted an Investment Registration Certificate, foreign individuals and organizations need to prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment which would take around 7 days. Completing this procedure, the enterprise has the legal status according to the provisions of the Law on Enterprises of Vietnam.

From day one since commencing its operation, the company could by itself or hire professional to assist with monthly compliance service i.e., submit foreign labour reports, submit investment report, submit tax report, submit health and insurance reports to authorities to avoid encountering penalties.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or doing business  in Vietnam.

Source: https://antlawyers.vn/library/how-to-start-a-business-in-vietnam.html

When Labour Dispute over Bonus Issue Arise and How to Resolve?

 

Employment bonus promise could help drive the performance for the business but sometimes disputes arise because there is discrepancy in translating how performance is met in the eye of employer and employee.

According to the provisions the Labor Code, the bonus, also known as the “other supplement”, is one of the main contents of the Labor Contract. Specifically, bonus is understood as a sum of money paid by an employer to the employees on the basis of annual business results and the level of work performance of employees. When the dispute arises, the employer or the employee could consult with labour dispute lawyers in Vietnam to advise and handle the matter effectively. 

 Bonus regulations of each company must be decided and publicly announced by the employer at the workplace after consultation with the representative organization of the grassroots-level employees’ collective. However, there are companies that do not specify bonus regulations or companies with unclear bonus regulations referring to such generally as “based on capability”, or “based on work results” without referring to specific key performance indicator (KPI). Such regulations will easily cause labor disputes that each party would need to seek consultancy from labour dispute lawyers in Vietnam. In most of the case, the employee would face disadvantage because the employer will be the one whom make the final decision on whether or not the capability or work results are satisfied.

A labor dispute means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labor relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labor relation. Labor disputes over bonuses can be individual labor disputes or collective labor disputes. The competence authority to settle labor disputes belongs to the Labor Mediator, the Labor Arbitration Council, and the People’s Court. Normally, individual labor disputes or collective labor disputes must go through the mediation procedure of the labor mediator before referring to the court to settle, unless otherwise provided for by law.

For individual disputes, in case the conciliation is unsuccessful or either party fails to implement the agreements in the minutes of successful conciliation or the settlement time limit expires but if the labour conciliator fails to conduct conciliation, each disputing party has the right to request a court or arbitration council for settlement.

For collective disputes over bonuses, in case the conciliation is unsuccessful or one of the two parties fails to implement the agreements in the minutes of successful conciliation, the parties have the right to request the President of the district-level People’s Committee to resolve the dispute. If the parties disagree with the decision of the President of the People’s Committee of the district or beyond the time limit but the President of the People’s Committee of the district does not settle, the parties have the right to request the Court to settle. In such situation, a litigation lawyer would be engaged to assist for productive result. 

How labour dispute lawyers in Vietnam could help?

Labour dispute lawyers in Vietnam could help from the early stage to draft and review labour contract, labour regulations to be submitted and registered with authority.  Once there are labour dispute potentially arisen, the labor dispute lawyers could assist with advice, negotiation for settlement. The last resort would be needing the labor dispute lawyers to assist in filing litigation petition at court for resolution.

ANT Lawyers, a law firm in Vietnam, always follow up the labour matters to update clients on regular basis.

Source: https://antlawyers.vn/library/when-labour-dispute-over-bonus-issue-arise-and-how-to-resolve.html

 

What do Corporate Restructuring Lawyers do?

  The Vital Role of Restructuring Lawyers in Vietnam

In the intricate environment of business and finance in Vietnam, especially when Vietnam is negatively impacted by the health of the global economy resulted from the tension of geopolitical situation, and the aftermath of pandemic era, challenges and uncertainties can arise unexpectedly, causing once-thriving enterprises to face financial distress.

In such trying times, the expertise of restructuring lawyers in Vietnam emerges as a guiding light, helping businesses in Vietnam navigate complex terrains and could emerge stronger. Whether representing debtors or creditors, these professionals play a crucial role in facilitating non-controversial negotiations and crafting strategic solutions to pave the way for sustainable financial revival.

The Diverse Role of Restructuring Lawyers in Vietnam

As restructuring attorneys in Vietnam, their roles extend beyond mere legal representation. They are architects of financial transformation, equipped with the knowledge and skills to orchestrate the revitalization of struggling businesses. These professionals can be engaged by debtors seeking a way out of financial turmoil or creditors aiming to safeguard their interests while assisting the debtor to repay debts.

Collaborative Solutions for Financial Distress

One of the primary responsibilities of restructuring lawyers in Vietnam is to devise collaborative solutions that prevent the escalation of financial challenges into insurmountable crises. They act as intermediaries, facilitating negotiations between debtors and creditors to establish repayment agreements and schedules that avert defaults. Through open dialogues and negotiations, restructuring lawyers in Vietnam help parties find common ground, enabling the smooth repayment of debts without resorting to adversarial proceedings.

Empowering Debtors on the Path to Recovery

For businesses facing financial distress, the services of restructuring lawyers in Vietnam can be a lifeline. These legal experts work closely with debtors to evaluate their financial situation comprehensively. By conducting in-depth analyses of assets, liabilities, cash flows, and operational intricacies, restructuring lawyers in Vietnam craft bespoke strategies to restructure debts, streamline operations, and improve financial viability. This proactive approach not only provides debtors with a lifeline but also preserves jobs and contributes to the stability of the business ecosystem.

Protecting Creditor Interests

Engaging a lawyer at restructuring law firm in Vietnam can be a strategic move for creditors as well. These professionals safeguard creditor interests by advocating for the development of repayment plans that are fair and practical. Instead of pursuing aggressive measures that might lead to liquidation, creditors can collaborate with restructuring lawyers in Vietnam to structure repayment schedules that maximize the chances of recovering owed funds while allowing the debtor a chance to recover.

A Non-Adversarial Approach

One of the distinguishing features of restructuring lawyers in Vietnam is their commitment to non-controversial, solution-oriented approaches. In contrast to adversarial legal battles that can exacerbate financial distress, these professionals focus on consensus-building. By working collaboratively, they foster an environment where both debtors and creditors have a stake in the successful resolution of financial challenges.

Crafters of Financial Transformation

Restructuring lawyers in Vietnam are, in essence, crafters of financial transformation. Their role transcends traditional legal representation, encompassing financial acumen, negotiation prowess, and strategic thinking. These professionals leverage their legal expertise to navigate the intricate legal landscape, ensuring that negotiated agreements comply with regulatory requirements and protect the interests of all parties involved.

The Ripple Effect of Financial Resurgence

Engaging restructuring lawyers in Vietnam isn’t just about addressing immediate financial challenges; it’s about setting the stage for long-term success. By designing repayment structures that enable debtors to regain their financial footing, these professionals contribute to the stability of the local business ecosystem. Preserved jobs, sustained business operations, and the potential for growth send ripples throughout the economy, reinforcing the interconnected nature of financial health.

In a world where financial uncertainties can cast shadows even over the most robust enterprises, the significance of lawyers at restructuring law firm in Vietnam cannot be overstated. Their role in fostering collaboration, crafting innovative solutions, and steering businesses away from the brink of insolvency is invaluable. As guardians of financial transformation, these professionals play a pivotal role in restoring hope, stability, and growth to businesses facing adversity. By understanding the multifaceted expertise they bring to the table, businesses in Vietnam can confidently engage restructuring lawyers in Vietnam to pave the way for a brighter financial future.

About ANT Lawyers, a law firm 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 has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/estructuring-lawyers-in-vietnam/what-do-restructuring-lawyers-in-vietnam-do.html

Insolvency Situation and Bankruptcy Matters: How Insolvency Lawyers in Vietnam Could Help?

  In order to understand the concept of bankruptcy in Vietnam, it is necessary to understand the nature of the process and “insolvency” is a situation that occurs to an enterprise. When the business falls into this situation, bankruptcy proceedings may be conducted. Insolvency lawyers in Vietnam could be engaged to help provide advice, participate in the procedures and help supervise the process for the legal compliance.  

Insolvency Situation and Bankruptcy Matters: How Insolvency Lawyers in Vietnam Could Help?

 

What is bankruptcy under Vietnam laws?

Bankruptcy is a legal proceeding aimed at resolving insolvency. If the settlement results cannot bring the enterprise out of insolvency, the competent state agency (court) will issue a decision to declare bankruptcy.

In order to determine the insolvency, the enterprise must satisfy all the signs mentioned by the law, that the enterprise fails to fulfill the payment obligation; and that duration of failure to fulfill payment obligations is three months. 

What is the purpose of bankruptcy laws in Vietnam? 

In the course of conducting business activities, enterprises conducting activities of exchanging, buying and selling goods and providing services have appeared to allow the delayed payment, or payment in installments. 

There are time that the payments can not be fulfilled as agreed due to various factors, leading to overdue debts.  Each creditor could hire litigation lawyers in Vietnam or debt collection law firms in Vietnam to request the debtor for the debt payment but this could be ineffective therefore bankruptcy laws can play a role as a collective debt collection procedure organized by authority.  

Through the bankruptcy procedures in Vietnam, negotiations between creditors and debtors could take place to maximize the economic usage of the assets of the debtors including the possibilities to organize the insolvent enterprise or sell the assets of the insolvent enterprise to the highest bidders. 

In many foreign countries, there are many successful cases that the enterprises could get out of insolvency situation after filing for bankruptcy and Vietnamese enterprises could also learn from that.  

How insolvency lawyers in Vietnam could help?

Here’s a more detailed analysis of how insolvency lawyers in Vietnam could help insolvent enterprises navigate the bankruptcy process:

Legal Expertise and Advice: Insolvency lawyers play a crucial role in providing legal expertise and advice to insolvent enterprises. They can guide the enterprise through the complexities of bankruptcy laws, ensuring that all legal requirements and procedures are followed accurately.

Assessment of Insolvency: Insolvency lawyers in Vietnam help enterprises determine whether they meet the criteria for insolvency as defined by Vietnamese law. They analyze financial records, payment obligations, and the duration of payment failures to establish whether the enterprise qualifies for bankruptcy proceedings.

Bankruptcy Filing: If an enterprise is indeed insolvent, insolvency lawyers assist in preparing and filing the necessary bankruptcy petition with the relevant court. This involves submitting documentation that demonstrates the enterprise’s financial situation and inability to meet its payment obligations.

Legal Compliance: Insolvency lawyers in Vietnam ensure that the bankruptcy proceedings adhere to the legal requirements set forth in Vietnamese bankruptcy laws. They help manage deadlines, submit required documents, and handle communication with the court and other involved parties.

Negotiations with Creditors: Insolvency lawyers in Vietnam facilitate negotiations between the insolvent enterprise and its creditors. They aim to reach agreements that are mutually beneficial, potentially allowing for repayment plans or alternative arrangements that can help the enterprise recover.

Debt Repayment Plans: Insolvency lawyers in Vietnam assist in formulating and presenting debt repayment plans to the court. These plans outline how the enterprise intends to repay its debts over a defined period, while considering the financial capacity of the enterprise and the interests of creditors.

Asset Management and Sale: In cases where the enterprise’s assets need to be managed or sold to repay debts, insolvency lawyers guide the process. They ensure that the assets are managed efficiently and, if necessary, sold in a way that maximizes their value and benefits all stakeholders.

Legal Representation: Insolvency lawyers represent the insolvent enterprise’s interests throughout the bankruptcy proceedings. This includes advocating for the enterprise’s rights, negotiating with creditors, and addressing any legal challenges that may arise.

Restructuring Possibilities: Insolvency lawyers explore options for restructuring the enterprise to make it financially viable again. This could involve renegotiating contracts, reducing operational costs, or making other strategic changes to improve the enterprise’s financial health.

Learning from International Practices: Insolvency lawyers can draw insights from successful bankruptcy cases in other countries and adapt relevant strategies to the Vietnamese context. This cross-border knowledge can provide valuable perspectives on how insolvent enterprises can overcome their challenges.

In conclusion, insolvency lawyers in Vietnam play a multifaceted role in helping insolvent enterprises navigate the complex process of bankruptcy. Their expertise spans from assessing insolvency criteria to guiding negotiations, formulating repayment plans, managing assets, and ensuring legal compliance. By leveraging their legal knowledge and experience, insolvency lawyers in Vietnam can contribute significantly to the resolution of financial difficulties faced by enterprises and support their potential recovery.

About ANT Lawyers, a law firm 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 has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/insolvency-lawyers-in-vietnam/how-insolvency-lawyers-in-vietnam-could-help-in-bankruptcy-procedures.html

How Long Are Immigration Restrictions Applied?

  Suspension of exit means a decision of competent authority  in Vietnam to suspend a Vietnamese or a foreigner residing in Vietnam from leaving Vietnam for a certain period of time.  In most cases, the person whom is subject to suspension of exit should be informed in advanced by the competent authority.  Immigration lawyers in Vietnam could also assist the person subject to suspension of exit to work with authorities for clarification and understanding for better preparation or resolving the situation on immigration restriction based on specific case below explained.

For foreigner, according to Law on Entry, Exit, Transit and Residence of foreigners in Vietnam, a foreigner may be suspended from exit if he/she is currently the suspect, the accused, or the person with relevant obligations in a criminal case; a defendant or a person with relevant obligations in a civil case pertaining to business, employment, administration, marriage and familial affairs or has to implement a judgment or decision of the Court or a Competition Settlement Council. Foreigners may also be temporarily suspended from exit if his/her tax obligation is not fulfilled or he/she is obliged to implement a decision on penalties for administrative violations; or be temporarily suspended from exit for reasons of national defense and security.

The persons belonging to above cases may still be allowed to exit if the person serving a prison sentence is escorted abroad to provide evidence in accordance with the Law on Judicial assistance. The time limit for temporary suspension of exit for a foreigner residing in Vietnam is not more than 03 years and can be extended.

For Vietnamese citizens, cases of suspension of exit include:

• Suspects and defendants; persons who are accused or filed for charge, later proved that they may have committed crimes thus must be prevented from escaping or destroying evidence as specified in Code of Criminal Procedure.
• Persons subject to delayed imprisonment, persons suspended from imprisonment, persons on parole during probation period, persons subject to suspended sentence during probation period, persons executing community services during sentence enforcement period according to Law on Execution of Criminal Judgment.
• Persons having obligations according to regulations and law on civil procedure if their obligations to government, agencies, organizations and individuals are proved to be involved in proceeding and their exit are proved to influence the proceeding, interests of government, legal rights and interests of agencies, organizations and individuals; persons subject to judgment execution.
• Civil judgement debtors and legal representatives of agencies and organizations obliged to execute judgment and decisions according to regulations and law on enforvement of civil judgment in Vietnam if their exit is proved to influence interests of government, legal rights and interests of agencies, organizations and individuals; persons subject to judgment execution.
• Tax payers, legal representatives of enterprises subject to enforcement of implementation of administrative decision on tax administration, Vietnamese making exit to reside overseas and Vietnamese residing overseas that have not satisfied tax liabilities according to regulations and law on tax administration before making exit.
• Persons subject to enforcement and representatives of organizations subject to enforcement of implementation of decision on administrative sanctions and to be prevented from escaping.
• Persons subject to inspection and verification, proved to have committed particularly serious violations and to be prevented from escaping.
• Persons contracted from dangerous and infectious diseases and to be prevented from spreading the diseases throughout community unless allowed by foreign parties for entry.
• Persons whose exit is identified by competent authorities to infringe national defense and security.

How immigration lawyers in Vietnam could help?

The duration of suspension of exit for Vietnamese citizens depends on each specific case, according to the provisions of the Criminal Procedure Code, the decision of the Minister of National Defense and the Ministry of Public Security. When the suspension period expires and is not extended further, Vietnamese citizens and foreigners can continue to leave the country when they wish. Or when the matters get complicated, the subject person could seek help from lawyers in Vietnam for advisory or represetation at Immigration Department Authority in Vietnam.

Source: https://antlawyers.vn/library/how-long-are-immigration-restrictions-applied.html

Bankruptcy Law in Vietnam and How Bankruptcy Lawyer Can Help With Your Business?

  Facing the possibility of bankruptcy is a challenging situation for any enterprise doing business in Vietnam. Engaging a bankruptcy lawyer in Vietnam and understanding bankruptcy laws early in the process is essential.  Doing so ensures that the enterprise is well-informed, protected, and equipped to make the best decisions for its financial well-being and future prospects. Early involvement of a bankruptcy lawyer can help steer the enterprise other stakeholders toward a more successful outcome, whether that involves restructuring, settlement negotiations, or pursuing alternative options.

What Is Bankruptcy under Vietnam Laws?

Bankruptcy is a state of insolvency of an enterprise or cooperative that is declared bankrupt by the People’s Court.

Compared to the previous bankruptcy laws, the current Bankruptcy Law is more open to the subjects who can file for bankruptcy declaration. First, the Bankruptcy Law stipulates that unsecured and partially secured creditors have the right to file a request to open bankruptcy proceedings upon the expiration of the three-month period from the date the debt is due. 

In addition, employees and trade unions also have the right to file a petition to open bankruptcy proceedings after the expiration of 03 months from the date of payment of salary obligations, but enterprises do not pay.

In terms of the court’s jurisdiction to settle bankruptcy, the current Bankruptcy Law absorbed the spirit of the previous Bankruptcy Law, but improved. 

It stipulates that the district-level People’s Courts have the authority to settle bankruptcy for enterprises and cooperatives whose head office is located in the district, town or city of that province while under the old law, the district court was only able to resolve bankruptcy for cooperatives.

Provincial-level People’s Courts are competent to settle bankruptcy for enterprises and cooperatives that have registered their business in that province and bankruptcy cases with overseas assets or participants in bankruptcy proceedings abroad; insolvent enterprises and cooperatives have branches and representative offices in many districts of different provinces; the bankruptcy case falls under the jurisdiction of the district court but the provincial court takes it up for settlement.

In addition, the current Bankruptcy Law has some new provisions. For example, transactions of insolvent enterprises and cooperatives made in the 06 months before the date of the court’s decision to open bankruptcy proceedings if it is a transaction related to the transfer of assets not at market price; convert unsecured debts into secured debts or partially secured by assets of enterprises or cooperatives; donation of property; transactions other than the purpose of business activities of enterprises and cooperatives; other transactions aimed at dispersing assets of enterprises, cooperatives, etc., shall be considered invalid.

The bankruptcy procedure of a credit institution is first regulated in the current Bankruptcy Law. In which the law requires the credit institution to be obliged to file a petition for opening bankruptcy proceedings; in case a credit institution fails to file a request for initiation of bankruptcy proceedings, the State Bank of Vietnam shall file a request for initiation of bankruptcy proceedings against such credit institution.

In addition, the current Bankruptcy Law also adds a negotiation option between the parties before the court accepts the creditor’s petition. Accordingly, within 03 working days from the date the People’s Court receives a valid application for initiation of bankruptcy proceedings, the insolvent enterprise or cooperative and the creditor filing the request for initiation of bankruptcy proceedings shall have the right to request in writing to the People’s Court for the parties to negotiate the withdrawal of the application.

The People’s Court shall set a time for negotiation but not exceeding 20 days from the date of receipt of a valid petition for initiation of bankruptcy proceedings. If the parties can reach agreement on the withdrawal of the petition for initiation of bankruptcy proceedings, the People’s Court shall return the petition for initiation of bankruptcy proceedings. In case the negotiation fails or the negotiation time limit expires, but the parties do not conduct the negotiation, the People’s Court shall notify the applicant to pay the bankruptcy fee, advance the bankruptcy cost and accept the application for opening the bankruptcy procedure. products according to regulations.

How A Bankruptcy Lawyer in Vietnam Can Help?

A bankruptcy lawyer in Vietnam plays a crucial role in assisting stakeholders involved in a bankruptcy case. Bankruptcy proceedings can be complex and challenging, and a skilled bankruptcy lawyer in Vietnam specializing in bankruptcy law can provide valuable legal guidance and representation to various stakeholders.

Here’s how a bankruptcy lawyer in Vietnam can help different parties involved in a bankruptcy case:

For Debtors:
-Legal Counsel: A bankruptcy lawyer can provide debtors with legal advice on their rights, responsibilities, and available options. They can help debtors understand the implications of bankruptcy, including potential discharge of debts and the impact on their assets.
Debt Relief: Bankruptcy lawyer in Vietnam can assist debtors in filing for bankruptcy, depending on the applicable bankruptcy laws. They guide debtors through the process of submitting necessary documents and meeting requirements to seek debt relief.
Protection from Creditors: Bankruptcy lawyer in Vietnam can help debtors navigate automatic stay provisions, which temporarily halt collection actions by creditors. This gives debtors some breathing room to reorganize their finances and develop a repayment plan.

For Creditors:
-Claim Evaluation: Bankruptcy lawyer in Vietnam assists creditors in evaluating their claims against the debtor. They can determine whether the debt is dischargeable or non-dischargeable and whether any collateral secures the debt.
– Representation in Proceedings: Bankruptcy lawyer in Vietnam can represent creditors’ interests in bankruptcy proceedings, including attending creditor meetings, negotiating with debtors, and objecting to discharge if appropriate.
– Protection of Rights: Bankruptcy lawyer in Vietnam helps creditors understand their rights under bankruptcy law and ensure they are treated fairly during the bankruptcy process. They can also assist in asserting preferences or fraudulent transfers claims if applicable.

For Employees:
– Wage Claims: Bankruptcy lawyer in Vietnam can assist employees in pursuing wage claims if the employer has filed for bankruptcy. This ensures that employees receive the wages and benefits they are entitled to.
– Job Security: Employees can consult bankruptcy lawyer in Vietnam to understand their job security during bankruptcy proceedings. Lawyers can provide insights into how the bankruptcy may affect employment contracts and agreements.

For Shareholders and Equity Holders:
– Rights Evaluation: Bankruptcy lawyers can assess the rights of shareholders and equity holders in the context of bankruptcy proceedings. They can explain how bankruptcy might impact ownership interests and potential recovery.
– Representation: If there’s an opportunity for shareholders to recover any value from the bankruptcy estate, bankruptcy lawyer in Vietnam can represent their interests in negotiations and court proceedings.

For Investors and Lenders:
– Asset Recovery: Bankruptcy lawyer in Vietnam can assist investors and lenders in recovering their investments or loans if they are secured by assets of the debtor. They can navigate the priority of claims and help optimize recovery strategies.
– Negotiations: Bankruptcy lawyer in Vietnam can negotiate on behalf of investors and lenders with the debtor or other stakeholders to secure the best possible outcome for their financial interests.

Overall, a bankruptcy lawyer in Vietnam can provide tailored legal solutions and guidance to stakeholders involved in a bankruptcy case. Their expertise in bankruptcy law, negotiation skills, and advocacy can significantly impact the outcomes of bankruptcy proceedings for all parties involved while doing business in Vietnam.

Source: https://antlawyers.vn/update/how-a-bankruptcy-lawyer-in-vietnam-can-help-with-your-business.html

Binh Dinh: German Investors Want to Build A Wind Farm, Korean Businesses Interested in Assembling Cars

  In the last days of August and early September 2020, many potential investors from Korea and Germany have come to study opportunities to set up company and invest in Vietnam and specifically Binh Dinh province to explore investment opportunities, with billion USD projects.

At the meeting of the departments of Binh Dinh province with leaders of Hyundai Aluminum Vina Company and Cammsys Company of Korea coming to explore investment opportunities in this province, according to representatives of Cammsys Company, the company wants to find a suitable partner to develop and assemble electric cars and ready to transfer production technology to develop electric car in Vietnam market.

Through a field survey in Binh DinBinh Dinh: German Investors Want to Build A Wind Farm, Korean Businesses Interested in Assembling Carsh, the Company highly appreciates the infrastructure, traffic connection of the province with the region and the world, and wishes to cooperate with the development of projects to supply electric cars for the regions, tourist resort and production association of this vehicle in the province.

Meanwhile, the representative of Hyundai Aluminum Vina Company with the cooperation in Vietnam has been 14 years now; Total investment capital of the Company’s projects in Vietnam is up to 5 billion USD in many different fields. On this occasion, when coming to Binh Dinh province, Hyundai Aluminum Vina Company hopes to find a clean space with an area of about 200 hectares to invest in the infrastructure of the high-tech industrial park. If found a suitable position and approved for investment, the company will call and attract about 60 Korean investors to come and do business.

Binh Dinh has Quy Nhon Port which is the most convenient international trade gateway of the Central Highlands region and the province of southern Laos, northeastern Cambodia to countries around the world. In addition, the province also has a complete transportation system and infrastructure connecting air, road and railway, with direct flights to Korea. In addition, Binh Dinh is always and ready to support and create favorable conditions for mechanisms and policies, reform of administrative procedures, and support for investors.

In terms of German investor, Director of the High-Level Offshore Wind Power Project – PNE Group proposed to develop an offshore wind power park in Binh Dinh province with a total investment of 1.5 billion USD. This is one of the investors with more than 20 years of experience developing onshore and offshore wind power projects in Germany. At the same time, learning about mechanisms and policies to encourage wind energy development in Binh Dinh and the process of developing and approving wind power projects in Vietnam.

The group’s leaders believe that the implementation of the wind power park project in Binh Dinh province will make Vietnam become a competitive wind power supplier in the region and globally, contributing to the completion of sustainable development goals and the goals set out in the Vietnam Renewable Energy Development Strategy to 2030, with a vision to 2050, approved by the Prime Minister.

Vice Chairman of Binh Dinh Provincial People’s Committee welcomed the PNE Group for their interest in researching and proposing project investment in the province; At the same time, commiting to create the most favorable conditions for investors during the project implementation.

Source: https://www.antconsult.vn/news/binh-dinh-german-investors-want-to-build-a-wind-farm-korean-businesses-interested-in-assembling-cars.html

Set up business in Vietnam or invest in contractual forms?

Foreign investors could make direct investment in Vietnam through different ways.  They could set up business in Vietnam or invest in the contractual forms of: BCC, BO, BTO, and BT.

Types of enterprise for foreign investors to invest and set up business in Vietnam are as following:

Set up Limited Liability Company in Vietnam

Limited Liability Company is a form of enterprise which is established by contributing of members.  A member shall be liable for the debts and other property obligations of the enterprise within the amount of capital that it has undertaken to contribute to the enterprise.

Limited liability companies are regulated by two types:

–    One member Limited Liability Company is an enterprise owned by one organization or individual;

–   Limited Liability Company with two or more members is an enterprise owned by organizations or individuals, in which the number of members shall not less than two members and not exceed fifty.

Organizational and management structure of Limited Liability Company normally comprise of a Member’s Council, General Director or Director.

Set up Joint Stock Company in Vietnam

Joint Stock Company is an enterprise which has charter capital divided into equal portions called shares.   The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.

Shareholders shall be liable for the debts and other property obligations of the enterprise only within the amount of capital contributed to the enterprise.

Joint Stock Companies may issue all types of securities to raise funds.  Founding shareholders must together register to subscribe at least twenty per cent (20%) of the number of ordinary shares which may be offered for sale.

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company. Management system of Joint Stock Company is more complicated than Liability Company.

Set up Partnership in Vietnam

A partnership is an enterprise which must be at least two members being co-owners of the company jointly conducting business under one common name.  In addition to unlimited liability partners, there may be limited liability partners.

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Set up Representative Office of Foreign Trader in Vietnam

A foreign business entity or a foreign trader is allowed to establish Representative Office in Vietnam.

Representative office of a foreign business entity in Vietnam (referred as “Representative Office”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to survey markets and to undertake a number of commercial enhancement activities permitted by the law of Vietnam.

Representative Office will need to apply and obtain the establishment license; and have a seal bearing the name of the representative office.

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services), but the representative Office is permitted to

• To operate strictly in accordance with the purposes, scope and duration stated in the license for establishment of such representative office;
• To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the Representative Office;
• To recruit Vietnamese and foreign employees to work for the Representative Office in accordance with the law of Vietnam;
• To open accounts in foreign currency and in Vietnamese Dong sourced from foreign currency at banks which are licensed to operate in Vietnam, and to use such accounts solely for the operation of the Representative Office.

Set up Branch of Foreign Trader in Vietnam

The Branch of a foreign business entity in Vietnam (referred as “The Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Investment by Signing Contracts in Vietnam

Beside having the options to set up business in Vietnam, investors could also choose to invest by not setting up a new entity.  Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:

(i)  Construction, operation and management of brand-new infrastructure facilities; and

(ii) Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:

•     Roads, bridges, tunnels, and ferry landings;

•     Railway bridges and railway tunnels;

•     Airports, seaports and river ports;

•     Clean water supply systems; sewage systems;

•     Wastewater, waste collecting and handling systems;

•     Power plants and power transmission lines;

•     Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and

•     Other projects as may be determined by the Prime Minister

Source: https://www.antconsult.vn/news/set-up-business-in-vietnam.html