Foreign Traders wishing to terminate the operation of representative office in Vietnam need to complete the procedure at Tax authorities, the Provincial Department of Industry and Trade and the procedure to return the seal at the police.
Pursuant to the provisions of the Vietnam laws, the termination of operation of representative offices of foreign traders in Vietnam at the Provincial Department of Industry and Trade shall be conducted as follows:
Terminate Representative Office in Vietnam
Dossiers to Terminate Representative Office in Vietnam
Preparation of dossiers for termination of operation of representative offices includes:
Notice of termination of operation of the representative office, made according to the form set by the Ministry of Industry and Trade, signed by the competent representative of the foreign trader.
List of creditors and unpaid debts, including tax debts and social insurance premiums;
List of employees and their respective current interests;
Documents evidencing that the representative office has fulfilled all tax and financial obligations to the State of Vietnam
Procedures to Terminate Representative Office in Vietnam
The order and procedures for termination of operation of representative offices at competent agencies shall be as follows:
The foreign trader submits a dossier for termination of operation of the representative office directly or via post or online (if applicable) to the Provincial Department of Industry and Trade (or the Management Board of Industrial parks, export processing zones, economic zones and hi-tech parks) where the representative office is licensed.
Within three working days from the date of receipt of the file, the competent authority shall examine and request the supplement if the dossier is incomplete and invalid. Requests for supplementary records are made at most once during the process of processing applications;
Within a time-limit of five (05) working days from the date of receipt of a complete and valid file, the competent authority shall be responsible to publish on its website the termination of operation of the representative office.
Foreign traders shall publicly post up the termination of their operation at the representative office.
Foreign traders whose representative offices have terminated of operation shall be responsible for performing contracts, paying debts, including tax debts and settling lawful interests for laborers who have worked at the representative office in accordance with the laws.
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.
Vietnam, with its burgeoning economy and vibrant culture, is increasingly attracting foreign investors, expatriates, and tourists. However, navigating the Vietnamese legal landscape can be challenging due to language barriers and complex local regulations. This is where English speaking solicitors in Vietnam come into play. They provide crucial legal assistance, ensuring that foreigners can seamlessly integrate and conduct business within the country. Here are nine essential insights on how English speaking solicitors in Vietnam can help you navigate the legal terrain effectively.
1. Property Matters: Ensuring Smooth Transactions
One of the primary concerns for many foreigners in Vietnam is property ownership. Vietnam’s property laws can be intricate, especially for non-citizens. English speaking solicitors in Vietnam offer invaluable assistance in understanding these laws. They guide clients through the process of purchasing property in Vietnam, ensuring that all legal requirements are met. This includes verifying property titles, drafting contracts, and handling disputes. Their expertise helps prevent potential pitfalls and ensures smooth transactions.
2. Business Incorporation: Establishing Your Enterprise
Vietnam is an attractive destination for entrepreneurs looking to establish their businesses. However, the process of business incorporation in Vietnam can be daunting due to the bureaucratic procedures involved. English speaking solicitors in Vietnam specialize in assisting foreign investors with setting up their businesses. They help in choosing the appropriate business structure, preparing necessary documents, and liaising with local authorities. By leveraging their knowledge of local regulations, these solicitors ensure that the incorporation process is efficient and compliant with Vietnamese law.
3. Visa and Immigration Services: Simplifying Relocation
Obtaining the right visa and understanding immigration laws is crucial for foreigners planning to stay in Vietnam long-term. English speaking lawyers in Vietnam provide comprehensive visa and immigration services in Vietnam, helping clients navigate the complexities of visa applications, extensions, and work permits. Their assistance is particularly valuable for expatriates and their families, ensuring that they comply with all legal requirements and avoid any immigration-related issues.
4. Legal Translation Services: Bridging the Language Gap
Legal documents are often complex and filled with jargon, making accurate translation essential. English speaking solicitors in Vietnam offer expert legal translation services, ensuring that all documents are accurately translated and understood by their clients. This includes contracts, agreements, legal notices, and other critical documents. By bridging the language gap, these solicitors help their clients avoid misunderstandings and ensure legal clarity.
5. Employment Law: Protecting Your Rights
For foreign businesses and expatriates working in Vietnam, understanding employment law is vital. English speaking solicitors in Vietnam provide guidance on various aspects of employment law, including labor contracts, employee rights, and dispute resolution for instance in wrongful termination in Vietnam. They ensure that both employers and employees are aware of their rights and obligations, helping to create a fair and compliant workplace environment.
6. Intellectual Property Protection: Safeguarding Your Innovations
Intellectual property (IP) protection is a critical concern for businesses operating in Vietnam. English speaking solicitors in Vietnam offer specialized services in IP law, helping clients protect their innovations, trademarks, copyrights, and patents. They assist in the registration process of IP rights, enforcement of IP rights, and handling of any infringements. By safeguarding intellectual property, these solicitors help businesses maintain their competitive edge and ensure legal compliance.
7. International Transactions: Facilitating Cross-Border Deals
Vietnam’s growing economy is increasingly engaged in international trade and transactions. English speaking solicitors in Vietnam play a crucial role in facilitating these cross-border deals. They provide legal advice on international contracts, trade agreements, and compliance with both local and international regulations. Their expertise ensures that international transactions are conducted smoothly and legally, minimizing risks for their clients.
8. Corporate Compliance and Governance: Ensuring Legal Adherence
Corporate compliance and governance are essential for any business operating in Vietnam. English speaking solicitors in Vietnam help businesses adhere to local laws and regulations, ensuring that they maintain good corporate governance practices. This includes advising on corporate policies, regulatory filings, and compliance audits. By ensuring legal adherence, these solicitors help businesses avoid penalties and enhance their reputation.
9. Legal Reforms: Staying Updated with Changes
Vietnam’s legal landscape is continually evolving, with new laws and regulations being introduced regularly. English speaking solicitors in Vietnam keep their clients informed about these legal reforms and their implications. They provide updates on changes in property laws, business regulations, labor laws, and more. By staying updated with legal reforms, these solicitors help their clients remain compliant and adapt to new legal requirements.
In conclusion, navigating the Vietnamese legal landscape can be a complex and daunting task for foreigners. However, with the assistance of English speaking solicitors in Vietnam, this process becomes significantly more manageable. From property matters and business incorporation to visa services and intellectual property protection, these solicitors provide essential legal support across various areas. By leveraging their expertise and local knowledge, foreigners can confidently and successfully navigate Vietnam’s legal system, ensuring compliance and achieving their objectives. Whether you are an investor, entrepreneur, or expatriate, the services of English speaking solicitors in Vietnam are invaluable for a smooth and legally compliant experience in the country.
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.
Logistics has been an essential component of global trade and commerce for centuries. Many global logistics firms have developed robust processes and procedures to manage the complexities of moving goods across international borders.
However, in Vietnam, the logistics landscape presents unique challenges due to the local environment, regulations, customs and practice clashing with with growing complexity of the industry, advancements in communication infrastructure, and sophisticated tracking systems. Despite these advancements, manual processes such as customs inspections remain prevalent. Furthermore, the logistics industry in Vietnam heavily relies on customs practices and international standards, making it challenging for foreign firms to understand and localize their operations effectively.
Many global logistics and freight forwarding companies entering the Vietnamese market have not invested sufficiently in localized support, particularly engaging with logistics lawyers in Vietnam, assuming that their global processes would suffice. This assumption often proves to be misguided. This article explores ten critical reasons why logistics lawyers in Vietnam are indispensable for global logistics firms aiming to succeed in this dynamic market.
The Importance of Logistics Lawyers in Vietnam
Logistics lawyers in Vietnam play a pivotal role in helping global logistics firms navigate the intricate legal landscape of the Vietnamese logistics industry. Their expertise ensures compliance with local laws, smooth operational processes, and protection of the firms’ interests. Here’s a detailed look at how logistics lawyers in Vietnam are crucial for foreign logistics companies.
1. Expertise in Local Laws and Regulations
Vietnam’s legal framework for logistics is complex and continually evolving. Logistics lawyers in Vietnam possess an in-depth understanding of local laws and regulations that govern the logistics industry. Many of the times, the issues are with the licensing, and requirements to conduct the the business lines of logistics, transport agent, freight forwarder, bonded warehouse leasing, customs brokerage permits. The logistics lawyers ensure that foreign logistics firms comply with all relevant legal requirements, thereby minimizing the risk of legal disputes and operational disruptions. Their knowledge is crucial for understanding the specific legal nuances that can affect logistics operations in Vietnam.
2. Facilitating Market Entry
Entering the Vietnamese market involves navigating various legal formalities, which can be daunting for foreign logistics firms. Logistics lawyers in Vietnam assist companies with all necessary documentation and procedures, ensuring a smooth and efficient market entry. Their expertise in drafting and reviewing contracts, advising, applying, obtaining licenses, and securing permits is invaluable for foreign firms looking to establish a foothold in Vietnam. Further, it is equivalent important to help align expectation of the logistics companies entering Vietnam taking consideration of different cultures, business practice and the way State authorities in Vietnam work.
3. Navigating Customs Procedures Challenges
Customs procedures in Vietnam are known for their complexity and manual processes. Logistics lawyers in Vietnam provide essential guidance on navigating these procedures, ensuring compliance with customs regulations. They assist in advising the legal requirements for the logistics company in preparing and submitting customs documentation, responding to customs queries, and addressing any issues that may arise during customs inspections.
4. Mitigating Risks
The logistics industry in Vietnam is fraught with risks, including regulatory compliance issues, operational disruptions, and legal disputes. Logistics lawyers in Vietnam conduct thorough due diligence and risk assessments, identifying potential legal issues and developing strategies to mitigate them. This proactive approach helps foreign logistics firms avoid costly legal disputes and ensures smoother operational processes. For instance, for avoidance of litigation at local court, making sure arbitration would be a preferred choice when it comes to dispute need to be prepared from engaging with customers, which sometime get lost in foresight.
5. Handling Dispute Resolution
Disputes are inevitable in the logistics industry. Logistics lawyers in Vietnam provide expert representation in negotiations, mediation, arbitration and court proceedings. Whether it’s a contractual disagreement, issues with local partners, or conflicts with regulatory authorities, these lawyers work diligently to resolve disputes efficiently and favorably. Their support is crucial for maintaining operational continuity and protecting the interests of foreign logistics firms. Pay attention, dispute in logistics might be complex in a sense that there are international practice, or jargon not being easily understood by the outsiders. INCOTERMS are simplest examples when it comes to evaluating risks transfer liabilities.
6. Ensuring Compliance with Labor Laws
Vietnamese labor laws are comprehensive and can be challenging for foreign logistics firms to navigate. Logistics lawyers in Vietnam offer guidance on employment contracts, employee benefits, and labor relations, ensuring compliance with local labor regulations. By helping logistics firms understand their obligations and rights, these lawyers foster a harmonious and legally compliant workplace, which is essential for successful operations.
7. Providing Strategic Business Advice
Logistics lawyers in Vietnam are not merely legal advisors; they often play a strategic role in business planning. They offer valuable insights into local market conditions, potential legal challenges, and strategic opportunities. For instance, they could search other companies in the market and provide some insights on permits and licenses the other companies might have. This strategic advice helps logistics firms make informed decisions that align with their business goals and the regulatory environment, enhancing their chances of success in the Vietnamese market.
8. Facilitating Environmental Compliance
Environmental regulations are a critical aspect of logistics operations in Vietnam. Logistics lawyers in Vietnam assist firms in understanding and complying with these regulations, ensuring that their operations meet all necessary environmental criteria. This includes guiding clients through environmental impact assessments and implementing appropriate mitigation measures. Their support ensures that logistics operations proceed without legal complications related to environmental issues.
9. Enhancing Communication with Local Authorities
Effective communication with local authorities is crucial for the success of any logistics operation. Logistics lawyers in Vietnam act as intermediaries, facilitating clear and effective communication between logistics firms and government officials. This role is vital in ensuring that all legal and regulatory requirements are met without delays and that any issues that arise are promptly addressed.
10. Building Long-Term Relationships
Successful logistics operations often rely on long-term relationships with legal advisors. Logistics lawyers in Vietnam prioritize building strong, trust-based relationships with their clients. This ongoing support ensures that logistics firms have a reliable legal partner who understands their operations and can provide timely advice as needed. These long-term relationships are invaluable for navigating the complexities of the logistics industry in Vietnam.
The Growing Complexity of Vietnam’s Logistics Industry
Vietnam’s logistics industry is evolving rapidly, driven by advancements in technology, infrastructure, and regulatory frameworks. However, this growth also brings increased complexity, making it essential for foreign logistics firms to have localized support. Here are some key factors contributing to the complexity of Vietnam’s logistics industry:
Communication Infrastructure
Companies might have used advanced tracking systems and digital platforms becoming more prevalent. While these advancements offer numerous benefits, they also introduce new challenges to be aligned with local regulations i.e. electronic vs paper trail. Logistics firms must ensure that their systems are compatible with local regulations while they can effectively manage and integrate these systems into their operations.
Manual Processes
Despite technological advancements, many aspects of Vietnam’s logistics industry still rely on manual processes. Customs inspections, for example, often involve manual checks and paperwork, which can be time-consuming and prone to errors. Logistics lawyers in Vietnam help firms navigate these manual processes, ensuring that all documentation is accurate and complete and that any issues are promptly resolved.
International Standards and Localization
The logistics industry operates on international standards, making it challenging for foreign firms to localize their operations effectively. Logistics lawyers in Vietnam provide essential support in understanding and complying with local regulations while maintaining adherence to international standards. This balance is crucial for ensuring that logistics operations are efficient and legally compliant.
The Challenges Faced by Global Logistics Firms in Vietnam
Global logistics firms entering the Vietnamese market face several unique challenges that can hinder their success if not properly addressed. Here are some of the key challenges and how logistics lawyers in Vietnam can help overcome them:
Understanding Local Regulations
Vietnam’s regulatory environment can be complex and difficult to navigate for foreign firms. Logistics lawyers in Vietnam provide essential guidance on understanding local regulations and ensuring compliance. Their expertise helps firms avoid legal pitfalls and ensures that their operations align with local laws.
Managing Operational Risks
Operational risks are inherent in the logistics industry, particularly in a dynamic market like Vietnam. Logistics lawyers in Vietnam conduct thorough risk assessments and develop strategies to mitigate these risks. This proactive approach helps firms manage operational risks effectively and ensures smoother logistics operations.
Navigating Bureaucratic Hurdles
Vietnam’s administration processes can be slow and cumbersome, posing challenges for foreign logistics firms. Logistics lawyers in Vietnam assist in navigating these hurdles, ensuring that all necessary permits and approvals are obtained promptly. Their support is crucial for avoiding delays and ensuring that logistics operations run smoothly.
Ensuring Effective Communication
Effective communication with local authorities and partners is essential for successful logistics operations. Logistics lawyers in Vietnam facilitate clear and effective communication, ensuring that any issues are promptly addressed and that all regulatory requirements are met. Their role as intermediaries helps bridge the communication gap and ensures smooth operations.
The Essential Role of Logistics Lawyers in Vietnam
In conclusion, the logistics industry in Vietnam presents unique challenges that require localized support and expertise. Logistics lawyers in Vietnam play a critical role in helping global logistics firms navigate the complexities of the legal landscape, ensuring compliance with local regulations, and protecting the firms’ interests. By leveraging the expertise of logistics lawyers, foreign logistics firms can overcome challenges, mitigate risks, and achieve success in Vietnam’s dynamic market.
By leveraging their expertise, reputation, and strategic advice of logistics lawyers, logistics firms can overcome challenges and capitalize on the opportunities in Vietnam’s vibrant economy.
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.
Establishing Representative Office in Vietnam under Commercial Law
The Commercial Law regulates conditions for establishing representative office in Vietnam.
Accordingly, foreign traders can establish their representative offices in Vietnam under Vietnam’s commitments in international treaties to which Vietnam is a member.
A foreign trader cannot establish more than one representative office with the same name within a province or city under central authority.
5 Conditions for Establishing Representative Office in Vietnam
1. Foreign traders can establish and register for business in accordance with law of nation and territories participating in international treaties in which Vietnam is a member, or recognized by the law of those nations and territories.
2. Foreign traders that have been in operation for at least one year from the date of establishment or registration.
3. In case the certificate of business registration or papers with equivalent value of the foreign traders have prescribed the time limit for operation, then the duration must be at least 1 year from the date of submitting record.
4. The operation of the representative office must match the commitment of Vietnam in the international treaties in which Vietnam is a member.
5. The case where the operation of the representative office is inconsistent with Vietnam’s commitments or foreign traders do not belong to any nations and territories participating in the international treaties in which Vietnam is a member, the establishment of representative offices must be approved by the Minister of specialized management.
How a Law Firm in Vietnam Can Help Foreign Traders Establishing Representative Office in Vietnam?
1. Legal Consultation and Eligibility Assessment
Detailed Legal Assessment
A law firm can provide a thorough legal analysis of the foreign trader’s eligibility based on the conditions outlined for establishing representative office in Vietnam. This involves scrutinizing the foreign trader’s business registration, operational history, and adherence to international treaties.
Eligibility Guidance
Offering guidance on the interpretation and application of Vietnam’s commitments in international treaties, ensuring that the foreign trader’s operations align with the legal requirements.
2. Documentation Preparation and Verification
Documentary Compliance
Assisting foreign traders in preparing the required documents for establishing representative office in Vietnam, ensuring that each document meets the specific criteria set by Vietnamese authorities.
Verification Process
Conducting a meticulous review of all documentation to ensure accuracy, completeness, and compliance with Vietnamese laws and regulations, minimizing the risk of delays or rejections in establishing representative office in Vietnam.
3. Representation in Approval Processes
Ministerial Approval
In cases where a foreign trader’s operations may not align with Vietnam’s commitments or if they are not from nations participating in relevant international treaties, a law firm in Vietnam can represent the foreign trader in the approval process by the Minister of specialized management.
Advocacy for Approval
Advocating on behalf of the foreign trader, presenting a compelling case to the authorities, and addressing any concerns or queries that may arise during the approval process of establishing representative office in Vietnam.
4. Alignment with International Commitments
Comprehensive Understanding
A law firm in Vietnam with expertise in international law can ensure that the foreign trader’s operations align seamlessly with Vietnam’s commitments in international treaties. This involves a comprehensive understanding of the legal nuances and obligations in establishing representative office in Vietnam.
Advisory Services
Offering ongoing advisory services to ensure that the representative office’s operations remain consistent with any changes or updates in international commitments that may impact the business.
5. Operational Compliance
Post-Establishment Compliance
Beyond establishment, a law firm can guide foreign traders on the ongoing compliance requirements for representative offices. This includes periodic reporting, adherence to local regulations, and any changes in the legal landscape that may affect operations.
Conflict Resolution
In the event of any legal disputes or challenges, the law firm can provide support in conflict resolution, utilizing their legal expertise to protect the interests of the foreign trader.
6. Networking and Relationship Building
Government Relations
A diligent law firm in Vietnam can leverage its established relationships with relevant government authorities to facilitate a smoother approval process. This involves navigating bureaucratic channels and ensuring effective communication between the foreign trader and Vietnamese authorities.
Industry Connections
Having insights into the local business landscape, a law firm in Vietnam can connect foreign traders with industry associations, business networks, and other entities that can contribute to the success of the representative office.
7. Adaptation to Regulatory Changes
Proactive Compliance
Staying abreast of any changes in regulations or legal requirements, the law firm in Vietnam can proactively advise the foreign trader on necessary adjustments to maintain compliance with evolving laws.
Policy Advocacy
Engaging with relevant authorities to advocate for policies that favor foreign traders and contribute to a conducive business environment.
In essence, a law firm in Vietnam acts as a strategic partner for foreign traders in establishing representative office in Vietnam. Their legal expertise, understanding of local and international laws, and advocacy skills are essential components in ensuring a smooth and compliant process in establishing representative office in Vietnam.
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.
The legal landscape in Vietnam has been evolving slowly with a notable shift towards the use of Alternative Dispute Resolution (ADR) methods. These methods, including mediation and conciliation, offer more efficient and cost-effective ways to resolve disputes outside the traditional court system.
As Vietnam continues to modernize its legal framework, the role of Vietnam dispute attorneys in navigating these ADR processes has become increasingly critical. The following provides a look at how Vietnam dispute attorneys can effectively leverage ADR methods to resolve conflicts, emphasizing the importance of this approach in today’s legal environment.
The Rise of Alternative Dispute Resolution in Vietnam
In recent years, there has been a significant emphasis on ADR methods in Vietnam. This trend is driven by the need to alleviate the burden on the judiciary and provide quicker, more cost-effective resolution options. Vietnam dispute attorneys play a pivotal role in this shift, guiding their clients through the complexities of ADR processes.
The advantages of ADR, such as reduced costs, faster resolution times, and confidentiality, make it an attractive option for many parties involved in disputes.
The Role of Vietnam Dispute Attorneys in ADR
Vietnam dispute attorneys are essential in the ADR process, providing expert guidance and representation to ensure that their clients’ interests are protected.
These attorneys possess a deep understanding of both the legal framework and the nuances of ADR methods, making them invaluable in achieving successful outcomes.
Their expertise in negotiation, mediation, and conciliation helps clients navigate the process efficiently, often leading to more satisfactory resolutions than those achieved through litigation.
Key Benefits of ADR in Vietnam
Cost-Effectiveness: ADR methods are generally less expensive than traditional litigation, making them accessible to a broader range of individuals and businesses. Vietnam dispute attorneys help clients minimize legal costs by avoiding prolonged court battles.
Time Efficiency: ADR processes are typically faster than court proceedings, allowing disputes to be resolved in a timely manner. This is particularly beneficial for businesses that need to resolve conflicts quickly to maintain operations.
Confidentiality: Unlike court cases, which are public, ADR proceedings are private. Vietnam dispute attorneys ensure that sensitive information remains confidential, protecting their clients’ reputations and business interests.
Flexibility: ADR offers more flexible solutions tailored to the specific needs of the parties involved. This flexibility is often more conducive to finding mutually acceptable resolutions.
Preservation of Relationships: ADR methods, particularly mediation and conciliation, focus on collaboration and communication, helping to preserve professional and personal relationships that might be damaged by adversarial litigation.
Challenges and Considerations in ADR
While ADR offers many benefits, there are also challenges that Vietnam dispute attorneys must navigate. These include ensuring that both parties are willing to participate in the process and addressing power imbalances that could affect the fairness of the outcome. For a long time, Vietnam disputants get used to court system while thinking of resolving disputes. Additionally, the enforceability of ADR agreements can sometimes be a concern, requiring careful drafting and legal oversight.
The ADR Process in Vietnam
Mediation
Mediation involves a neutral third party who facilitates communication between the disputing parties to help them reach a mutually acceptable agreement. Vietnam dispute attorneys often act as mediators or represent clients in mediation sessions. The mediator does not impose a solution but assists the parties in finding common ground.
Conciliation
Conciliation is similar to mediation but typically involves a more active role for the conciliator, who may propose solutions and offer advice. Vietnam dispute attorneys guide their clients through the conciliation process, ensuring that their interests are adequately represented and protected.
Arbitration
For commercial transactions, parties might consider arbitration as dispute mechanism. Arbitration is often used alongside mediation and conciliation. In arbitration, arbitrator (s) chosen by parties or assigned by the arbitration center makes a binding decision after hearing both sides’ arguments. Vietnam dispute attorneys are skilled in presenting cases in arbitration settings, ensuring that their clients’ positions are effectively communicated.
The Future of ADR in Vietnam
The future of ADR in Vietnam looks promising, with continued reforms and a growing acceptance of these methods. Vietnam dispute attorneys will continue to play a crucial role in this evolution, helping to shape a more efficient and effective legal system. There are growing investment from government agencies and private organizations to train Vietnam dispute attorneys on mediation topics and introduce the concept of resolving the disputes through amicable ways because of the benefits it brings to clients.
As ADR becomes more entrenched in Vietnam’s legal landscape, it will provide even greater benefits to those seeking to resolve disputes without the need for litigation.
Alternative Dispute Resolution could be reshaping the way conflicts are resolved in Vietnam, offering numerous advantages over traditional litigation.
Vietnam dispute attorneys are at the forefront of this movement, utilizing their expertise to guide clients through the ADR process and achieve favorable outcomes. As the legal environment in Vietnam continues to evolve, the importance of ADR and the role of dispute attorneys will only grow, making it an essential aspect of the legal profession in the country.
In summary, the shift towards ADR in Vietnam is a positive development that benefits all parties involved in disputes. With the guidance of skilled Vietnam dispute attorneys, individuals and businesses can navigate this process effectively, achieving resolutions that are timely, cost-effective, and tailored to their specific needs.
As ADR methods become more widely adopted, they will play an increasingly important role in the Vietnamese legal system, offering a more efficient and harmonious way to resolve conflicts.
ANT Lawyers, 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.
In the wake of Vietnam’s amended Law on Credit Institutions, banking and finance l
awyers in Vietnam have become indispensable allies for clients navigating the complexities of compliance. The new legislation, which strictly prohibits banks from tying the sale of non-mandatory insurance products to the provision of banking products and services, marks a significant shift in the regulatory landscape. Banking and finance lawyers are pivotal in interpreting these changes, ensuring that clients not only understand the new rules but also implement strategies that align with them.
Update on the The Amended Law on Credit Institutions
The Amended Law on Credit Institutions, which was recently passed, strictly prohibits banks from tying the sale of non-mandatory insurance products to the provision of banking products and services in any form.
Disclosure of Information on Shareholders Owning from 1% of Charter Capital or More
On the morning of January 18, with 450 delegates voting in favor (accounting for 91.28%), the National Assembly officially passed the Amended Law on Credit Institutions. Before the vote, the Standing Committee of the National Assembly (SCNA) reported to the National Assembly on several major issues that were considered, explained, and adjusted in the draft law.
Regarding certain regulations related to cross-ownership, manipulation, and influence over credit institutions, there were opinions that measures to reduce the ownership ratio of shares and limit credit issuance had not resolved the issue of cross-ownership, manipulation, and influence as in recent times, with the importance being on the supervision of enforcement.
The SCNA agreed with the opinions of the delegates, and therefore, in addition to regulating the reduction of the ownership ratio of shares and credit issuance limits, the draft law has been supplemented with provisions on the provision and public disclosure of information. In particular, shareholders owning from 1% of the charter capital of a credit institution (CI) must provide information, and the CI must publicly disclose the information of these shareholders to ensure transparency.
The SCNA requests the Government to direct the State Bank of Vietnam (SBV) to enhance coordination effectiveness with relevant ministries and sectors, and at the same time, to develop solutions to increase the effectiveness of inspection, audit, supervision, and to ensure the maximum limitation of cross-ownership, manipulation, and influence over CIs.
Regarding early intervention in credit institutions, during the discussion, there were suggestions to carefully consider the regulations requiring CIs to clearly explain the risk level provisions not yet allocated, the profits to be collected not yet allocated in financial reports, including public financial reports listed in the draft law.
Reporting on this issue, the SCNA stated that the draft law had prescribed the public disclosure of financial reports according to legal regulations, except for the case where the CI is under special control. Therefore, based on the proposal of the Government, the SCNA accepted the opinions of the delegates regarding the regulations on risk provisions not yet allocated, the profits to be collected not yet allocated as in the draft law.
The SCNA requests the Government, in the process of implementing the law, to instruct the SBV to take responsibility and develop appropriate solutions to clearly understand the financial situation of these CIs when they are subject to support mechanisms, ensuring the safety of the CI system.
The Amended Law on Credit Institutions Come into Force from July 1, 2024
Regarding the issue of ending early intervention, the SCNA agreed with the opinions of the delegates that the SBV has the responsibility to issue documents for implementation, as well as to terminate early intervention.
The SBV has the responsibility to monitor, supervise, and ensure that the CIs have remedied the conditions leading to early intervention.
Concerning special lending to people’s credit funds, there were suggestions to remove the provision of the SBV deciding on special lending by cooperative banks with an interest rate of 0%/year, without collateral for people’s credit funds in the draft law.
The SCNA agreed with the opinion of the delegates that the cooperative banks have the right to decide on special loans by cooperative banks to people’s credit funds.
Regarding the handling of bad debts and secured assets, there were suggestions to add transitional provisions for contracts with secured assets being real estate projects signed before the law takes effect.
Accepting this opinion, the draft law was revised to stipulate the transfer of the entire or a part of real estate projects as secured assets to recover debts and the transfer of the entire or a part of real estate projects that have been received as secured assets before the law takes effect to recover debts from the draft law.
Clarifying the Scope of Insurance Agency Activities of Credit Institutions
Regarding the insurance agency activities of CIs, there were suggestions to study legislation to have sanctions to strictly deal with violations by CI employees, such as inadequate advice causing some customers to confuse insurance products with banking products, or the requirement to purchase insurance linked to loan requests when customers need to borrow from the bank. There were also opinions that commercial banks should not be allowed to link to sell insurance; cross-selling of life insurance should be prohibited.
Accepting the opinions of the delegates, the SCNA revised the draft law by adding provisions on prohibited acts as follows: CIs, foreign bank branches, managers, executives, and employees of CIs, foreign bank branches are strictly prohibited from tying the sale of non-mandatory insurance products to the provision of banking products and services in any form. Concurrently, the Governor of the SBV is tasked with regulating the scope of insurance agency activities of CIs to be appropriate for the nature and activities of the banking sector.
Navigating Compliance in Vietnam: The Role of Banking and Finance Lawyers
The Critical Guidance of Banking and Finance Lawyers
Banking and finance lawyers play a crucial role in advising clients on the full spectrum of regulatory compliance, including the recent mandate for transparent disclosure of information by shareholders owning from 1% of charter capital or more. This transparency is a move towards greater accountability within the financial sector, and banking and finance lawyers are at the forefront, providing the legal framework through which clients can navigate this new demand for openness.
With the law set to take effect from July 1, 2024, banking and finance lawyers are already helping clients prepare for the upcoming changes. They offer expert guidance on creating policies and procedures that align with the law’s requirements, such as establishing clear boundaries between banking services and insurance product offerings.
Banking and Finance Lawyers: Ensuring Compliance and Transparency
The new law’s emphasis on transparency means that banking and finance lawyers must ensure that their clients are ready to disclose relevant financial information. This includes assisting credit institutions in the clear explanation of risk provisions and profits in financial reports. Banking and finance lawyers play a vital role in revising and preparing financial documents that meet the stipulations of the amended law, safeguarding clients from non-compliance repercussions.
Additionally, banking and finance lawyers are advising clients on early intervention termination procedures. They are ensuring that the State Bank of Vietnam’s (SBV) requirements for monitoring and supervising credit institutions are understood and adhered to, helping clients correct conditions that could lead to early intervention.
The Invaluable Assistance of Banking and Finance Lawyers in Special Lending
Banking and finance lawyers are also at the center of consultations regarding special lending to people’s credit funds. They are instrumental in clarifying the rights and obligations under the new provisions, advising cooperative banks on their decision-making regarding special loans. Their expertise is critical in ensuring that these transactions are carried out within the legal framework, maintaining the integrity of the financial system.
Handling Bad Debts and Secured Assets with Banking and Finance Lawyers
When it comes to handling bad debts and secured assets, banking and finance lawyers are providing essential counsel on transitional provisions, particularly for contracts with real estate projects as secured assets. They assist in the delicate process of debt recovery, ensuring that any transfer of assets complies with the newly established laws.
Clarifying Insurance Agency Activities: The Expertise of Banking and Finance Lawyers
As the law defines the scope of insurance agency activities for credit institutions, banking and finance lawyers are crucial in interpreting and implementing these regulations. They guide banking clients on how to lawfully conduct insurance agency activities, ensuring that these services are offered without violating the strict prohibitions on cross-selling.
Banking and Finance Lawyers: Proactive Partners in Compliance
Banking and finance lawyers are not just reactive to changes; they proactively work with clients to anticipate and prepare for shifts in the regulatory landscape. Their forward-thinking approach helps clients stay ahead of compliance issues, minimizing risks associated with regulatory changes.
The amended Law on Credit Institutions has underscored the need for rigorous compliance in Vietnam’s banking sector. Banking and finance lawyers have emerged as essential partners, providing the expertise necessary to navigate these changes effectively. As clients adjust to the new regulatory demands, banking and finance lawyers remain committed to delivering the legal solutions and strategic advice that ensure seamless adherence to the law and the continued success of financial operations.
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.
