Conditions for Foreign Experts to Work in Vietnam

     On December 30th, 2020, Decree 152/2020/ND-CP has been issued regulating on foreigners working in Vietnam and recruiting, managing Vietnamese employees working for foreign organizations and individuals in Vietnam. Decree 152 clearly defines the forms and conditions for foreign employees to be eligible to work in Vietnam, and provides conditions for exemption from work permits in Vietnam, recruitment of foreign employees, renew and re-issue work permits.According to current regulations, foreign citizens come to work in Vietnam...

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How to Terminate the Employment Contracts Due to Economic Reasons?

 Termination of a labor contract is an event that terminates the employment relationship between the employee and the employer. In particular, there are many cases of termination of labor contracts such as the labor contract expires, the work stated in the labor contract has been completed, both parties agree to terminate the labor contract, the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative,…In case more than one employee...

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How Probation is Regulated in Vietnam Labour Code?

     Probation is an agreement between an employee and an employer on a probationary job in a certain period of time in accordance with the provisions of law. Before entering into a labor contract, the employer and the employee should go through a probationary period to determine the long-term cooperation and attachment between the parties. The probation should comply with the provisions of the Labor Code and relevant guiding documents. The Labor Code 2019 comes into force as of January 1st, 2020, a number of new regulations accordingly...

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How to Set Up Company in Hanoi?

  The Law on investment 2021 has a lot of investment incentive policies in economic sectors in Vietnam for foreign investors.Foreign investors that invest in Vietnam in general and Hanoi in particular 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 (“IRC”) and Enterprise Registration Certificate (“ERC”). Company with 100% foreign capital has founded and operated from the date...

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Forms of Foreign Investment in Vietnam

     From 01/01/2021, the Law on Investment 2020 in Vietnam came into force. According to the Vietnam Law on Investment 2020, there are five types of foreign investment in Vietnam.Investment in the establishment the economic organizations:This type comprises two methods: Establishment of a company with 100% capital from foreign investors or establishment of a company between the domestic investors or the domestic government and foreign investors. Before establishing the economic organizations, the investors must have the investment...

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Policies to Attract Foreign Investment in Hanoi

 Over the years, Hanoi city has organized quality conferences of foreign investment attraction, focusing on implementing measures to attract transnational corporations engaged in investment and business in Hanoi.To perform domestic and international cooperation activities on investment promotion. Hanoi is constantly promoting and improving the efficiency of investment promotion activities, creating a reasonable and effective connection between domestic and foreign investment promotion activities in Hanoi in all fields, economic sectors;...

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How to Determine Interest Rate for Late Payment Obligations in Commercial Transaction?

      The most important obligation of the parties to a commercial contract is to deliver or provide services and pay in full and on time as agreed. However, in reality, there are times that one party or the parties fail to perform their payment obligations, causing damages to the other party. In particular, in the case of a breach of the payment obligation, the aggrieved party may request the person having caused damage to pay late payment obligations interest. Potential dispute on this matter might arise between parties.Article...

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What Are the Order of Disciplining Employee in Vietnam?

 Labour discipline is the provisions on compliance matters relating to work time, technology and production and business management in labor regulations. It can be understood simply that when an employee violates the labor regulations, depending on the extent and regulations of the company, he or she will be subject to disciplinary action. The order of disciplining labor is conducted in accordance with the provisions of labour code in Vietnam. Failing to follow the order of discipline would lead to potential disputes which both employer and...

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Draft Decree on E-transactions in the Government Management of Land

    In the era of technology 4.0, the application of science and technology in all activities of social life in general is increasingly focused. Vietnam government has introduced a number of policies on the application of electronic technology in administrative procedures, particularly the Draft Decree on Electronic Transactions in the management of land.Electronic transactions in the government management of land are the implementation of administrative procedures in the field of land; share and provide land information and data;...

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What Are Penalty for Violations in the Field of Construction in Hanoi?

  In any field, mistakes can occur but differ in actual consequences. Especially in construction activities, the consequences are difficult to predict, the violations in construction activities, to any extent, affect individuals and collective users. Therefore, the Hanoi City People’s Council issued Resolution No. 07/2014/NQ-HDND prescribing the fine levels for a number of administrative violations in the field of construction.This Resolution prescribes the fine levels for a number of administrative violations in construction activities...

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How Decision 942/QD-TTg on Crypto Currency Would Partly Solve Challenges for the E-Government of Vietnam?

 With the strong development of information technology, forms of online transactions has also gradually become a trend and develop strongly in Vietnam. In recent years crypto currency has created a new phenomenon for the global economy that some countries have been deploying to use such as El-Salvador. However, not all countries accept crypto currencies especially countries such as China, Russia, Thailand… are vehemently opposed to this type of crypto currency for fear of risks to the national economy. In Vietnam, there has been a number disputes...

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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....

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What is Value-added Tax Reduction Policy in 2022?

 In order to stimulate growth and recover the economy after the impact of the Covid-19 pandemic, the Government has issued a policy to reduce value added tax. The reduction of value-added tax is an effective solution and tool to stimulate consumption and is expected to create a driving force for rapid development to help businesses restore business and production.The value-added tax reduction policy has been promulgated by Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy according to the National Assembly’s Resolution...

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Performing Labor Contracts in the Period of Covid – 19 Epidemic

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

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Whats New in the Draft of the Decree on Amending the Decree 52 on E-Commerce?

 The Decree No.52/2013/ND-CP (Decree 52) on e-commerce will be effective from July 1st, 2013. However, this Decree does not have specific regulations on e-commerce activities for foreign investors conducting e-commerce activities in Vietnam. Therefore, the draft of the Decree amending Decree 52 shall fill the missing gap for foreign investors with particulars in conducting e-commerce activities in Vietnam.The draft decree has supplemented regulations on management of e-commerce activities for foreign investors setting up business in Vietnam....

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

 The real estate market is always an attractive market with a large source of potential speculative profits for investors. Because real estate transaction is always high in value, and buying a property for most people is always a life time important decision, and many times with the financial support from the bank, therefore in developed country, real estate lawyers are always involved in all steps of the transaction to ensure the legitimate transfer of the property. In Vietnam, in reality, many real estate transitions are conducted...

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How to Transfer Shares in a Joint Stock Company?

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

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What Are Penalty for Violations in the Field of Construction in Hanoi?

 In any field, mistakes can occur but differ in actual consequences. Especially in construction activities, the consequences are difficult to predict, the violations in construction activities, to any extent, affect individuals and collective users. Therefore, the Hanoi City People’s Council issued Resolution No. 07/2014/NQ-HDND prescribing the fine levels for a number of administrative violations in the field of construction.This Resolution prescribes the fine levels for a number of administrative violations in construction activities in...

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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....

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What Are Regulations on Debt Trading Contracts in Vietnam?

 Along with the development of socio-economic activities, right to collect debt has become an asset right, hence its transferability is also recognized. Vietnam law recognizes debt as a commodity that can be traded through a debt trading contract. However, in order for the debt trading contract to be legally valid and ensure the rights and obligations are enforced, the parties need to pay attention to the provisions on the debt trading contract.Firstly, in terms of the right to enter into a debt trading contract, according to the provisions...

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How to Determine Penalty and Compensation for Damages from Breach of Commercial Contract?

 When drafting a contract, especially a commercial business contract, in addition to basic provisions such as the object, scope of the contract, value and payment method, rights and obligations of the parties, dispute settlement, information confidentiality, and the regulations on the penalty for a breach of the contract and damage compensation are also very important.Penalty for a breach of the contractUnder the provisions of the Commercial Law 2005, penalty for a breach means that the breaching party must pay a sum of money to the aggrieved...

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