The Ministry of Industry and Trade to Review the New Exporter in case Anti-dumping AD07

The Ministry of Industry and Trade to Review the New Exporter in case Anti-dumping AD07

July 15, 2022, the Ministry of Industry and Trade issued Decision No. 1403/QD -BCT on the results of the first review of applying anti-dumping measures on several plastic products and plastic products made from polymers which is the production of propylene originating from Malaysia, Thailand, and the People’s Republic of China (case code: Anti-dumping AD07).

 

On August 19, 2022, the Trade Remedies Authority of Vietnam received a dossier requesting for reviewing of the anti-dumping taxes applied to new export enterprises from SRF Industries (Thailand) Limited (SRF Thailand) Company in the AD07 case.

Based on the request, the Department of Trade and Industry conducted an assessment and sent out written requests to supplement and clarify some information and content on the basis for reviewing the new exporter enterprises.

On October 17, 2022, the Trade Remedies Authority of Vietnam issued an Official dispatch No 820/PVTM-P1 confirming the complete and valid dossier.

Under the provisions of Clause 3, Article 82 of the Law on Foreign Trade Management, dated November 14, 2022, the Ministry of Industry and Trade issued Decision No. 2400/QD-BCT on conducting a review of new exporters in applying anti-dumping measures on certain plastic products and plastic products made from propylene which is the production of polymers originating from Malaysia, Thailand and the People’s Republic of China (NR01.AD07).

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

 

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Vietnam attends APEC Ministers Responsible for Trade Conference

Vietnam attends APEC Ministers Responsible for Trade Conference

The 27th APEC Ministers Responsible for Trade (MRT) took place online on June 5, 2021 with the participation of 21 APEC member economies and observers including the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation Council (PECC) and the Pacific Islands Forum (PIF). Measures to open market will be discussed to facilitate trade and investment, including the smooth policy from Vietnam to support to establish company in Vietnam.

 

In 2020, due to the impact of the Covid-19 pandemic, the global economy shrank 3.3%. However, because of strong efforts in the introduction of vaccine production and vaccination, financial support programs in some countries, as well as more effective disease containment measures in many countries, this year’s global economy is forecasted to achieve marked improvements compared to 2020. According to a report by the International Monetary Fund (IMF) published in April 2021, the global economy is forecast to reach 6% in 2021 and 4.4% in 2022.

At this meeting, APEC Ministers focused on discussing trade policies to respond to the COVID-19 pandemic. Measures taken include ensuring open markets, promoting the smooth flow of trade in essential goods and services, and facilitating safe and effective vaccine supply chains.

Another important content of the 27th MRT Conference is to support the multilateral trading system, including the progress of implementing reforms of the World Trade Organization (WTO) and updating the progress of negotiations in many fields, such as fisheries subsidies, special and differential treatment, industrial subsidies, market access, agriculture, etc. The APEC Ministers expressed their hope that reform and progress in WTO negotiations will bring positive results, contributing to strengthening the role of the multilateral trading system as well as global and regional economic integration.

At the Conference, the Vietnamese representative also affirmed that Vietnam would actively participate in negotiations and discussions to resolve current issues in the WTO to contribute to the success of the 12th WTO Ministerial Conference. In addition, Vietnam also supports initiatives to promote the movement of goods and services in the region, both to help prevent the epidemic and to develop the economy.

Through the meeting, the participants hoped that in the coming time, in parallel with fighting the epidemic, the parties would also take measures to promote trade and investment to achieve the goal of economic development in the world. Vietnam commits to support the global trade and policy to smooth investment into Vietnam through setting up company in Vietnam.

ANT Lawyers, a law firm in Vietnam could offer service to set up company in Vietnam. We assist clients needing legal service in obtaining investment certificate, business registration certificate, or other  licensing procedures.

 

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How to Obtain Business Registration Certificate in Vietnam

How to Obtain Business Registration Certificate in Vietnam?

Every organization and individual wishing to set up a foreign owned company in Vietnam shall need to meet some specifics conditions as promulgated under the Law on Investment and Law on Enterprise. In specific areas being considered as conditional investment, the investor shall also need to consult with the law governing the area of investment. Once the investment registration certificate is completed, the investor has the obligation to apply for enterprise registration.

 

 Business Registration Certificate in Vietnam

The procedure to register for a certificate of enterprise registration of a joint stock company or limited liability with two or more members are herein mentioned:

Dossiers:

i) Application form for enterprise registration

ii) The company’s charter.

iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.

iv) Valid copies of:

Copies of the ID card or other ID papers of founding shareholders and foreign investors/members being individuals; list of authorized representatives of foreign shareholders being organizations.

Decision on establishment, certificate of business registration, or an equivalent document of the organization and the letter of authorization; the ID card or other ID papers of the authorized representatives of founding shareholders and foreign investors being organizations.

If shareholders are foreign organizations, the copy of the certificate of business registration or an equivalent document must be notarized, legalized and authenticated.

The Certificate of Investment registration of the foreign investors as prescribed by the Law on Investment.

State Authority: Business registration office of the province where the enterprise’s headquarters is situated.

Period: within 03 working days from the full receipt of the dossiers

Result: Business registration office shall issue the certificate of enterprise registration or if the application is not satisfactory, business registration office shall inform the applicant of necessary revisions and supplementation to company.

In general, Vietnam government encourages foreign direct investment. If the investor faces challenges at state authority, whom do not issue notification or request of supplementation to the application for enterprise registration, the investor cold lodge a complaint as prescribed by regulations of law on complaints and denunciation to the state authority to protect its right in doing business and investment in Vietnam. A law firm in Vietnam with expertise in both business registration and dispute resolution could assist the investor in the process.

The enterprise is entitled to do business from the issuance date of the certificate of enterprise registration. For conditional business lines, enterprises are entitled to engage in conditional business lines if they satisfy all conditions and are capable to maintain fulfillment of such conditions throughout their operation.

With highly professional staff and great experience in investment in Vietnam, ANT Lawyers would like to support you to register business registration certificate in Vietnam

 Source ANTLawyers: https://antlawyers.vn/update/how-to-obtain-business-registration-certificate-in-vietnam.html

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How to establish company in Vietnam?

Foreign investors may invest in the form of 100% capital to establish company in Vietnam, being limited liability company, joint stock company, partnership company.

 

How to establish company in Vietnam

Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates. Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

A project dossier for establishing company in Vietnam shall comprise:

-Registration/Request for issuance of Investment Certificate;

-A report on financial capability of the investor;

-Draft of the company’s charter;

-List of members of company;

-Copy of the people’s identity card, passport or other lawful personal certification, for individual members;

-Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;

-Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.

-Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;

-Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;

-The joint-venture contract or Business Cooperation Contract (BCC);

-Other documents required by Vietnam law.

The establishment of a company in Vietnam would take from 30 days. The extra time might be needed in case the investment area is conditional or the State government needs to examine the investment project. Minimum capital, special licenses or other conditions might be required in certain investment projects.

With highly professional staff and great experience in foreign investment, ANT Lawyers would like to support you in establishing company in Vietnam.

 Source ANTLawyers: https://antlawyers.vn/qa/what-are-forms-of-arbitration-agreement-under-vietnam-laws.html

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Differences Between Limited Liability Company and Joint Stock Company

How to distinguish a Limited Liability Company and Joint Stock Company?

Vietnam Law allows the establishment company in Vietnam in various forms. It is an important step in investment process.

 

10 questions to ask before setting up company in Vietnam?

Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.

Currently, Limited Liability Company (“LTD”) and Joint Stock Company (“JSC”) are two popular enterprise forms operating in Vietnam.

What is the difference between these two forms of companies?

I. Organizational Structure

Number of members/shareholders:

LTD

-Single member LTD: Having only one member (member can be an organization or an individual);

-Multi members LTD: Having at least 2 members and not exceed 50 members (member can be an organization or an individual).

JSC

Joint Stock Company has at least 3 shareholders and not limit the maximum number.

Management structure

LTD

-Single member LTD

Single member LTD owner by an organization shall be organized under two models: Company president, Director/General director and Supervisor; (OR) Members Council, Director/General director and Supervisor.

Single member LTD owner by an individual shall be organized as follows:  Company president, Director/General director.

-Multi members LTD

Multi members shall be organized by: LTD Council members, Chairman of the Members Council and Director/General director;

Multi members LTD having 11 members or more shall establish the Board of Supervisors.

JSC

JSC can be organized under two models: General Meeting of Shareholders, Board of Directors, Board of Supervisors and Director/General director; (OR) General Meeting of Shareholders, Board of Directors (Board of Internal Supervisors under Board of Directors) and Director/General director.

II. Capital Contribution

Raising capital

LTD

-Single member LTD: Owner increases charter capital

-Multi members LTD: Members increase their charter capital, or increasing the number of capital contributors

JSC

Different from LTD, JSC can raise its capital by various methods as follows: Selling shares to existing shareholders; Selling shares individually to non-shareholders; Issuing shares on the stock market.

Transfer of contributed capital

LTD

-Single member LTD: Owner transfers a part of contributed capital to other persons and this could lead to changes of the type of business or other procedures if all capital is transferred (for instance in a M&A deal).

-Multi members LTD: Offer the stakes to other members in proportion to their stakes in the company under the same conditions;  The stakes could only be transferred to other persons if the members do not buy or do not buy completely within 30 days from the offering date.

JSC

The shareholders of JSC are free for transfer their contributed capital after 03 years from the establishment.

Having said that, LTD is a type of enterprise that the capital contribution is not the only link between the members of the company but they are also linked together by relationship. They may be acquaintances and trust each other to jointly contribute capital to establish an enterprise. Therefore, the management of the LTD is as complicated as JSC. With the larger the number of shareholders, the level of capital mobilization, voting power to decide on issues of the company based on the ratio of capital contribution of each shareholder, the management and operation of the JSC is more complex.

The ability to raise capital of a JSC is higher than a LTD. Because, JSC can issue shares to the public in the form of securities. When the stocks are listed on stock exchange, the information of company’s business operations must be public and more transparent.

The procedure to set up a company in form of an LTD or a JSC has not much differences.

ANT Lawyers is a law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City to provide convenient access to our clients. With highly professional staff and great experience in foreign investment, we would like to support you to set up joint stock company in Vietnam.

 

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Conditions of Setting up Import and Export Company in Vietnam

Conditions of Setting up Import and Export Company in Vietnam

If a foreign-invested company wishes to apply for export/import or distribution rights, it has to submit the below listed documentation to the competent authorities:

 

1. Export/Import rights:

The foreign investors who invest to exercise right to export, right to import must follow procedures for grant of investment certificates; the foreign-invested enterprises in Vietnam which supplement the operational business activities for exercise of right to export, right to import must follow procedures for adjustment of investment certificates:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities;

c. Documents proving the financial capability and experiences of investor in exercise of right to export and right to import;

d. Vouchers of tax agencies on performing the enterprise income tax liability within two consecutive years in the case the foreign-invested enterprises wish to supplement the exercise of right to export, right to import.

2. Trading activities/Distribution

The foreign investors with investment projects on exercise of goods trading and directly related activities in association with the setting up of enterprises must follow procedures for grant of investment certificates.

a. A dossier comprises:

i) Dossier of verification for grant of investment certificate as prescribed by law on investment;

ii) A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities according to the form MD-6 promulgated together with this Circular;

iii) Documents proving the financial capability and experiences of investor in exercise of business operation of goods trading and directly related activities.

b. After having acceptance opinion of the Ministry of Industry and Trade, the competent state agencies shall grant investment certificate. The investment certificate shall concurrently be business license.  Although not stipulated in the law, before granting an investment certificate with these business lines, the authorities usually consider application on case by case basis, taking into account market stability, population density in the area where the company is located and the consistency of the investment project with the master plan of the said area.

For these business lines the competent authorities must obtain the approval of the Ministry of Industry and Trade before issuing the investment certificate.

3. License for setting up retail establishments

If a foreign-invested enterprise wishes to set up a retail establishment in addition to the first retail establishment, it must follow procedures for license for setting up retail establishment, a dossier comprises:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. Dossier of license for setting up retail establishments, comprising:

i) Application for license to set up retail establishment;

ii) A written explanation about the satisfaction of conditions of setting retail establishments as per the law;

iii) Document of provincial People’s Committee that approves the working result of the Council of checking the economic demand to consider the conformity of setting up of a retail establishment in addition to the first retail establishment.

iv) Report on exercise of goods trading and directly related activities of licensed projects;

v)Vouchers, which are issued by tax agencies, about exercise of enterprise income tax liability in two adjacent years.

After having acceptance of the Ministry of Industry and Trade, the competent state agency shall grant the license for the setting up of retail establishments.

Our lawyers of foreign investment practice at ANT Lawyers - a law firm in Vietnam would like to support you in setting up company in Vietnam.

 

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Many “American eagles” expressed their desire to invest and expand into Vietnam

What Decree 53/2022/ND-CP Detailing a Number of Articles of the Law on Cybersecurity 2018 Cover?

Cybersecurity is one of the important issues for every country in the increasingly strong development of the internet. Although this development brings great benefits in many areas of life, it is accompanied by challenges to national security such as cybercriminals that appropriate and steal data of the user; taking advantage of the internet to spread false information against the state. Therefore, the promulgation of policies and laws on cybersecurity as a basis for management and optimal measures in order to protect national cybersecurity, eliminating illegal acts in cyberspace is extremely necessary. On August 15^th, 2022, the Government issued Decree 53/2022/ND-CP detailing a number of articles of the Law on Cybersecurity 2018. The Decree will take effect from October 1^st, 2022 with the following:

 

Cybersecurity Lawyers in Vietnam

Measures to protect network security: Request the removal of illegal or false information in cyberspace that infringes upon national security, social order and safety, and legitimate rights and benefits of agencies, organizations, and individuals

Requesting the removal of illegal or false information in cyberspace is one of the cybersecurity protection measures specified in the 2018 Law on Cybersecurity. Accordingly, Decree 53/2022/ND-CP has detailed regulations, listing specific cases where this measure can be applied as follows:

-When information in cyberspace is identified by competent agencies to have contents that infringe upon national security, disseminate information that sabotages the Socialist Republic of Vietnam, incite riots, and disrupt public security and order according to regulations of the law;

-When there are legal bases to determine that information in cyberspace has humiliating and slanderous contents; infringes upon the order of the economic management; fabricates and falsifies information, causing confusion among the people and severe damage to socio-economic activities to the extent that such information must be removed;

-When other information in cyberspace has contents including: Distortion of history, denial of revolutionary achievements, undermining national solidarity, blasphemy, discrimination by gender or race; Prostitution, vice, human trafficking; posting pornographic or criminal information; damaging Vietnam’s good traditions, social ethics or public health; Enticing, persuading or tempting others to commits crimes.

The information listed in the above cases are all illegal and false information, and the person who uses cyberspace to spread the above negative information is an act of violation strictly prohibited under the 2018 Cybersecurity Law. Once the above information is widely spread and publicized online, it will adversely affect the security, social order and safety of the country. Therefore, the regulation to apply the measure to request the deletion of the above information is practical for the above cases. The Director of the Department of Cyber​​Security and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam and Directors of competent agencies of the Ministry of Information and Communications are the ones who have the authority to decide on the application of measures to remove these information.

Measures to collect data related to acts of infringing upon national security, social order and safety, and legitimate rights and benefits of agencies, organizations, and individuals in cyberspace

The collection of data (data is information in the form of symbols, letters, numbers, images, sounds or equivalences) related to activities infringing upon national security, social order and safety, legitimate rights and interests of agencies, organizations and individuals in cyberspace shall comply with the provisions of law, and at the same time ensure the following requirements:

-Maintenance of the status of digital devices and data;

-The copying and recording of data shall be done according to correct procedures via recognized devices and software that are verifiable and can protect the integrity of data stored in such devices;

-The process of restoring data or search data shall be recorded via minutes, images, and videos. The process may be repeated if it is necessary for presentation at a court;

-Data collectors shall be specialized officials assigned to collect data.

The principles of copying and restoring data related to acts of infringing upon national security, social order and safety, and legitimate rights and benefits of organizations, organizations, and individuals in cyberspace shall follow: If the data is considered necessary to be copied or restored or there is a request to copy and restore the data for the purpose of proving the commission of a crime, the assigned person shall be authorized to copy and restore such data and acquire a decision on approval of competent authority according to regulations of the law. In addition, to make a record for the copying and recovery activities of the electronic evidence, the case may be invited to an independent third party, witness and certification of this process.

The Director of the Department of Cyber Security and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam shall decide to take this measure.

Internal computer networks have the storage and transmission of state secrets must be completely separated from the network of computers and devices and electronic devices connected to the internet

The decree clearly specifies that state agencies and the political organization at central and local levels must develop regulations on the use, management and security of internal computer networks and computer networks connected to the Internet. agencies or organizations they manage. This is an activity to protect network security in state agencies, central and local political organizations.

Regulations on the use and assurance of computer network security by state agencies and political organizations at central and local levels must include the following basic contents: Identify major information and information network systems to be prioritized for cybersecurity assurance. Elaborate on prohibitions and principles of management and use and ensure cybersecurity and internal computer networks that store or transmit state confidentiality shall have a complete physical separation from computer networks, devices, and electronic means with Internet connection, other cases shall ensure compliance with regulations of laws on state confidentiality protection. Have procedures for professional and technical management in operating, using, and ensuring cybersecurity of data and technical infrastructure. Such procedures shall satisfy basic requirements for information system safety assurance. Ensure the personnel conditions for network management and operation and security of cyber information security, information safety and handling of violations of regulations on assurance of network security.

Thus, to ensure confidentiality of the internal data of the state agency, the internal computer network shall have the state secrets which are required to separate completely from the computer network or the equipment and electronic devices connected to the internet. This is the regulation for managing agencies to control, minimize the risk of internal data that is spread out into the electronic environment, causing serious impact on national security issues.

Will  data must be stored in Vietnam ?

The decree has stipulated a separate chapter to clarify the storage of data and set the branch or representative office of foreign enterprises in Vietnam.

The following data must be stored in Vietnam:

-Data on personal information of service users in Vietnam;

-Data created by service users in Vietnam: account names, service use time, information on credit cards, emails, IP addresses of the last login or logout session, and registered phone numbers in association with accounts or data;

-Data on relationships of service users in Vietnam: friends and groups such users have connected or interacted with.

Domestic enterprises and foreign enterprises are the subjects that must store the above data. In particular, it only applies to foreign enterprises doing business in Vietnam in one of the following fields:

–Telecommunication services in Vietnam;

-Storage and sharing of data in cyberspace;

-Provision of national or international domain names for service users in Vietnam;

-E-commerce; Online payment in Vietnam;

-Payment intermediaries; Services of connection and transportation in cyberspace in Vietnam;

-Social media and social communication in Vietnam;

-Online video games in Vietnam;

Services of provision, management, or operation other information in cyberspace in forms of messages, calls, video calls, emails, online chatting in Vietnam.

However, not at all foreign enterprises is required to store data according to regulations. Decree 53/2022/ND-CP also sets conditions for the storage of data in Vietnam, specifically as follows: services provided by such foreign enterprises are used for violations of laws on cybersecurity, notified and requested for cooperation, prevention, investigation, and handling in writing by the Department of Cyber Security and Hi-tech Crime Prevention of the Ministry of Public Security of Vietnam but they fail to comply or incompletely comply with such documents or prevent, obstruct, disable, or nullify the effect of cybersecurity protection measures performed by cybersecurity protection forces;

In case of an exception to the conditions for force majeure circumstances, the foreign enterprise cannot comply with the requirements of the law on cyber security, the foreign enterprise shall notify the Cybersecurity Department and high-tech crime prevention and control under the Ministry of Public Security within 03 working days for inspection of the verification of such force majeure. In this case, the enterprise will have 30 days to adopt remedial methods.

For the form of data storage, Decree 53/2022/ND-CP does not provide any specific requirements, but allows businesses to decide for themselves how to store their data in Vietnam, whether domestic or foreign enterprises.

For the time duration for data storage: for domestic enterprises, it automatically stores data; for foreign enterprises starting when the enterprise receives the request to store data from the Minister of Public Security until the end of the request; Minimum storage period is 24 months.

The Decree stipulates more specifically and strictly on the order and procedures for applying measures to ensure network security as well as the rights and obligations of state agencies in data security, building a network security system management system to ensure internal network security at the agency. Companies operating in the internet business should take into consideration of the new regulations and ensure compliance. It is important to engage cybersecurity lawyers in Vietnam for legal advice and update.

 

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