Five types of real estate contracts abolished mandatory notarization procedure

    

According to the regulation of Civil Code 2015, some of the transactions which are required to implement the process of notarization and registration according to the regulation of the laws. As real estate transactions are normally at high value, the process of notarization and registration would help parties involved to be protected from falsified transactions.

As the stipulated in the Real estate trading 2014, the real estate trading agreement must be made in writing. The agreement notarizing or authenticating shall be discussed by contracting parties. However, the real estate trading agreement in which on building sale or lease purchase agreements or land transfer agreements concluded by households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed need to be implemented the mandatory notarization procedure.

The procedure and dossier for notarization the real estate agreement will be implement according to the regulations of Law on notarization 2014.

Our real estate lawyers in Vietnam recommend client to have house leasing contracts voluntarily notarized to better protect their interests in disputes or any future issues.

For more information or legal advice in real estate transactions, we are glad to assist. ANT Lawyers, your lawyers in Vietnam

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How Regulation on Telecommunications Changes in Vietnam?

     

Proportional to Vietnam’s rapid development in various areas of its economy, the telecommunication industry has undergone through rapid development and has become a key economic sector for the country. Legal regulations on telecommunications have also been evolving to support the business practice in Vietnam.

Various regulations on the telecommunication business, for instance the Ordinance of Post and Telecommunication promulgated in 2002 created a legal framework for the telecommunication business in Vietnam and thereby promoting competition, encouraging and supporting the new market entrants. After sometime, the Vietnamese provisions on telecommunications turned out not always be compatible with the international regulations – especially when Vietnam became an official member of the World Trade Organization (WTO) and thereby had to be in line with the WTO’s international provisions. On November 23rd, 2009 the National Assembly of Vietnam passed the Law on Telecommunications that came into effect on July 1st, 2010 (“Law on Telecommunications”). The Law on Telecommunications describes and specifies general terms and provisions on the telecommunication activities in Vietnam. According to this Law on Telecommunications, Telecommunications service means the service of sending, transmitting, receiving or processing of information between two users or within a group of users of telecommunications services, including basic service and value-added service.

The government authorities perform three main tasks of state management on telecommunications in Vietnam:

i) to cater for an open competition that allows all businesses that are established under Vietnamese law and are engaged in providing telecommunication services or infrastructure therefore, to enter the market;

ii) secondly, to create a legal framework to ensure that enterprises and market participants could enter the market and handle acts of unfair competition;

iii) to create good conditions for building and modernizing telecommunication networks and for enhancing the security and defense operations of the state to improve the standards for international cooperation in telecommunication.

According to Article 5 of The Law on Telecommunications, the safety of the telecommunication infrastructure and information security are responsibilities of all organizations and individuals. The Ministry of Information and Communications shall hold the main responsibility and in cooperation with the Ministry of National Defense; the Ministry of Public Security and concerned agencies, it also shall coordinate the safety of the telecommunication infrastructure and informa­tion security in telecommunication activities.

The Law on Telecommunications also provides general principles regarding telecommunication services connected to foreign investors. According to Article 18 of The Law on Telecommunications, forms and conditions of foreign investment and capital contribution of foreign investors in telecommunication services must comply with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam has signed to.

The Government shall specify forms and conditions for foreign investment and determine the maximum capital contribution of foreign investors in telecommunication services. Foreign investors who invest in telecommunication services for the first time in Vietnam must also complete formalities to obtain an Investment Certificate and the Telecommunications Business Service License. Besides guiding on the specific matters such as foreign investment in telecommunication services, the Law on Telecommunications established a legal framework that covers all matters connected with telecommunication services in an all-embracing way for the first time in Vietnam.

Professionals at ANT Lawyers work on many a variety of telecommunications, media and technology transactions and cases. Our attorney’s industry knowledge and expertise allow us to effectively support the information technology sector. We could deliver the experience and expertise needed to handle issues in both private practice and in corporate and regulatory bodies.

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How to Ensure Cosmetics Labeling Complies in Vietnam

     These are rules for cosmetics labeling to follow in Vietnam:

For cosmetic label content, Vietnam Law provides that the cosmetic product’s label must be suitable for requirements of the cosmetic label writing set by the ASEAN. The following contents must be presented on the label:

The product’s name and function, unless the presented form of product has been displayed clearly the product’s function;

The usage instruction, unless the presented form clearly been displayed the product’s using manner;

The full formula ingredients: must write clearly ingredients according to the international nomenclature regulated for latest printed forms;

The country where the product was made;

The name and the address of organizations or individuals who are responsible for putting products on market (written fully in Vietnamese according to the business registration certificate or the investment license);

Quantification is presented with weight or volume, in regard to the meter system or the meter system and the British system;

The manufacture lot number;

The manufacture day or the expiry must be clearly presented (i.e.: day/month/year). The date writing way must clearly be presented and involved of month/year or day/month/year in right order. The “expiry” or “the best using before date” can be exerted, if necessary, can add the instructed condition needs obey to make sure of the product’s stability.

Referring to products with the stability below 30 months, the writing of expiry day is compulsory;

Warning about safety for usage; especially, warnings in the “usage condition and required alarms are compelled to be printed the product’s label” column is referred in Appendices of ASEAN Cosmetic Treaty; these alarms are compelled to be printed on the label.

In case, the size, the form, or the package material cannot be fully printed information on the original label, these required contents have to be printed on the auxiliary label attached with the cosmetic product and on the original label must figure out the position in which these contents are printed. The following information is compelled to be printed on the original label of product‘s the direct packing: the product’s name and the product lot number.

The current regulations also allow organizations and individuals to present other information on the label with the conditions that these information must not be opposite to the law and guarantee the honesty, the accuracy, the true reflection of the product’s quality without causing the imperative content or the cosmetic label hidden or deviated.

For the presented language on the cosmetic label, the contents of the usage instruction, the name and the address of organizations and individuals who are responsible for putting the cosmetic products on market, and the warning about safety for usage must be written in Vietnamese. For the remaining information, the language presented on the cosmetic label must be written in English or Vietnamese.

For the label location, the cosmetic label must be printed on the commodity, package of commercial article on a location which is easy be seen of full regulated contents without disconnecting details or parts of the commodity. In case the outward package is not permitted or impossible to open, there must be the label with the required information on the package.

Besides, the organizations and individuals who are responsible for putting products on the market may identify the size of cosmetic product label but must assure that the information written on the label must be readable by the ordinary customers at the time of purchase and usage.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Plan to Simplify Regulations on Telecom, Gaming, Internet Service

   

In the process of economic integration and development, in order to create favorable conditions for business and service sectors under the management of the Ministry of Information and Communications, Vietnam has approved the plan to reduce and simplify regulations a number of regulations under its control.

Accordingly, Decision No. 1994/QD-TTg agreed to reduce and simplify regulations related to business lines: Provision of pay radio and television services; Provide G1, G2, G3, G4 video games online; Newspapers; Telecommunications service business; publisher’s activities; Business in printing services, except for packaging printing; Publishing services business; Postal services; Information Technology; Science and technology; Domain name registration and maintenance services; Internet; Network information security products and services in Vietnam. It is important for the company operating in the areas of concern to consult with telecom, internet business, media lawyers to follow up with specific changes in law in Vietnam.

These are industries with fast-growing trends and have a strong impact on other industries as well as on the overall economic development. Therefore, the facilitation and restriction of procedures will contribute to attracting foreign investment and creating development motivation for businesses, quickly catching up with the rapid changes of services, improving the quality of services and improving the quality of services information and communication products.

Accordingly, on procedures for granting certificates of eligibility to provide public electronic game services, for the application components “Plan for the location of the computer room of the public video game service point suitable according to the prescribed area” and “Pay the fee for the issuance of the Certificate of eligibility to operate the point of supply providing public video game services” were abolished. Especially, it is subject to change immediately after the time of licensing. Therefore, the information of the location of the machine room option at the time of consideration for licensing is of little significance. Besides, the Decision also mentions supplementing the form of implementing administrative procedures on electronic means (changing the form of paper copies into electronic ones) to be flexible and ensure consistency with the Enterprise Law 2020 in the implementation for businesses.

The decision also abolishes administrative procedures for granting licenses to provide G1, G2, G3, G4 video game services online. According to the plan, many procedures with G1 online game service will be abolished such as: licensing procedures; license re-issuance; license renewal or procedures for amending and supplementing the license to provide G1 video game services on the internet… This is a meaningful abolition decision for the practice of licensing video games. Because, it is challenging for state agencies to request enterprises to apply for permits and report every time they change their business plans, affecting the autonomy of enterprises as well as creating huge inadequacies in terms of business administrative procedures.

In addition, business conditions: “The publisher’s office has an appropriate area, meets the provisions of the law on standards and norms for using the office” has been simplified to ” having an office that meets the provisions of law on standards and norms for using the office”. This change is reasonable, because the criterion of suitable area has no basis for explanation. Moreover, the area of ​​the publisher’s headquarters is not related to the management of the State. With the new regulations, publishers can be autonomous in choosing the right area, ensuring space for business activities. At the same time, the Decision also combines two administrative procedures including re-issuance and renewal of licenses for printing and publishing publications into one administrative procedure, limiting cumbersome procedures, saving time and costs for businesses.

In addition, in the field of publication distribution service business, the Decision simplifies the process of granting certificates of registration for publishing and publishing electronic publications in the direction of only performing the verification process determining the project of publishing and distributing electronic publications. Therefore, if the project is eligible and accepted, the enterprise will be granted a certificate of operation registration immediately.

According to the simplified version of the Decision, the Postal Business Registration Certificate and the Postal Investment Certificate in Vietnam will be merged into the Business Registration Certificate.

Therefore, the introduction of Decision No. 1994/QD-TTg has reduced and simplified procedures; help the process of preparing documents quickly; save time for organizations and individuals when carrying out administrative procedures and minimize the cost of administrative compliance.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Da Nang.

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What to Note When Signing Labour Contract with Foreign Workers?

    

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

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

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

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

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

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

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

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

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Network security services – Cybersecurity solutions in the new situation

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

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

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

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

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

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

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

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Conditions for Foreigners When Buying Houses in Vietnam

    

With open-door policies and a stable socio-economic situation, Vietnam is one of the countries with great attraction to foreign investors. There are many foreign individuals and organizations come to Vietnam to live and work and a number of foreigners or foreign organizations wish to buy houses or apartments. Many real estate developers also wish to expand the customers base through selling houses and apartments to foreigners in Vietnam.

However, according to current law, foreigners or foreign organizations can buy houses and apartment in Vietnam; and real estate developers could sell houses and apartments in Vietnam but must meet some conditions.

First of all, to be able to buy a house in Vietnam, foreign individuals and organizations must be one of the subjects that can own houses in Vietnam. Specifically, foreign organizations and individuals that are allowed to own houses in Vietnam include: (i) foreign organizations and individuals investing in housing construction under projects in Vietnam; (ii) foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam; (iii) foreigners whom are allowed to enter Vietnam. Accordingly, to be able to buy a house in Vietnam, these subjects must prove that they fully meet the conditions prescribed by law.

Specifically, foreign organizations and individuals investing in housing construction under projects in Vietnam must have an Investment Certificate and have houses built in the project according to regulations. For foreign organizations, they must set up company in Vietnam, have an investment certificate or a document related to being allowed to operate in Vietnam, issued by a competent Vietnamese state agency. Foreign individuals must be subject to permission to enter Vietnam and not be entitled to diplomatic and consular privileges and immunities.

Besides, depending on each different object, the documents proving the object and conditions for owning a house in Vietnam vary. For a foreign individual, s/he must have a valid passport with an entry verification stamp of the exit and entry management agency of Vietnam and not be eligible for special privileges and immunities. On the other hand, for foreign organizations, they must be eligible to own houses and have an Investment Registration Certificate or a document authorized by a competent Vietnamese agency to operate in Vietnam. In addition, these individuals and organizations should note that these documents must be valid at the time of signing the housing transactions.

Therefore, if organizations and individuals meet the above conditions, foreign individuals and organizations can purchase houses in Vietnam. However, it should be noted that foreign individuals can only own houses in Vietnam in the form of apartments or separate houses in an investment project to build commercial housing.

In addition, foreigners are also not allowed to purchase houses in areas that are subject of national defense and security under Vietnamese law. Further, foreign organizations and individuals are also limited in the number of ownership. Accordingly, foreign organizations and individuals are only allowed to own no more than 30% of the total number of apartments in an apartment building, and no more than 10% for an individual housing project of less than 2,500 units.

In general, purchasing houses for foreign individuals and organizations are subject to complicated legal conditions. Therefore, in order to ensure that the purchase of housing in Vietnam is in accordance with the regulations and to limit the risks arising, relevant individuals and organizations need to learn and seek legal advice and support from real estate lawyers in Vietnam.

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