Conditions of foreigner on adoption in Viet nam

Today, foreigners from other countries wish to adopt children in Vietnam and bring them up to his/her country for custody.  Vietnam in the meantime encourages the adoption for the better conditions on life environment, education system which would bring to the children when living with the new family.  However, the adoption conditions are still regulated strictly and its acceptance procedure are considered and controlled stringently by competent authorities of Government.

ANT Lawyers will provide to you the regulated conditions of the adoptive parent need to be met as below:

I. GENERAL CONDITIONS OF THE ADOPTIVE PARENT:

The Adoptive parent has to meet fully conditions as below for adoption:

a) Having full civil act capacity;

b) Being 20 years or more older than the adopted person;

c) Having health, financial and accommodation conditions for assuring the care for and nurture and education of the adopted child.

d) Having good ethical qualities.

And not being on these following cases:

a) Having some of the parental rights over a minor child restricted:

b) Currently serving an administrative handling decision at an educational institution or medical treatment establishment;

c) Currently serving an imprisonment penalty:

d) Having a criminal record of commission of any of the crimes: intentionally infringing upon another’s life, health, dignity and honor; maltreating or persecuting one’s grandparents, parents, spouse, children, grandchildren or caretaker; enticing or compelling a minor to violate the law or harboring a minor violator; trafficking in. fraudulently swapping or appropriating children, which has not been remitted yet.

II. CONDITIONS OF THE FOREIGNER ADOPTIVE PARENT:

After meeting fully conditions above, the foreigners who wish to adopt Vietnamese children could to be accepted if they are belong to one of this following cases:

a) The adoptive parent is the step father or step mother of the to-be-adopted child;

b) The adoptive parent is the natural aunt or uncle of the to-be-adopted child;

c) The adoptive parent has adopted a child who is a sibling of the to-be-adopted child;

d) The adoptive parent adopts a child who is disabled or infected with HIV)AIDS or another dangerous disease, include: children with cleft lip and cleft palate, children who are blinded with one or two eyes; mutism, deaf; dumb; children with curved arms or legs, children with missing fingers, hands, foot (feet), toes, children infected with HIV; children with heart diseases; children with navel, groin, belly hernia; children without an anus or sexual organ; children with blood disease; children with diseases requiring life-long treatment; children with other disabilities or dangerous disease which restricting the chances of adoption;

e) The adoptive parent is a foreigner currently working or studying in Vietnam for at least 1 year; both the wife and husband have to meet this condition if they want to adopt the child together.

3. Foreigners permanently residing in Vietnam adopt a child in Vietnam

In order to give you best advice, please contact directly by email: ant@antlawyers.vn

ANT Lawyers

Your lawyers in Vietnam

Market entry

International corporations and entrepreneurs would face challenges to understand the Vietnam market in both commercial and regulatory terms. We aim to assist clients to fill that gap. Our Market entry services cover a range of services that help the clients to do business in Vietnam in a cost effective ways through:

Research service;
Company profiling and business due diligence in Vietnam
;

Policy research service in Vietnam and Information research service in Vietnam;

Assistance in setting-up business venture;
Advice and assistance with M&A execution and closing;
Project based consulting assignments.
Let ANT Consulting help your business in Vietnam.

our offices

ANT Lawyers is a law firm in Vietnam located in the business centers of both Ho Chi Minh City and Hanoi. we provide convenient access to our clients. Please call or email to book your time in advanced so as we could provide our best service. Call us at +84 8 35202779 or send us email ant@antlawyers.vn 

law firm in Ho Chi Minh City: Office: 7th Floor, Me Linh Point Tower, 2 Ngo Duc Ke Str.,Dist. 1, HCMC 
law firm in Hanoi Office:  5th Floor, Sentinel Place Building, 41A Ly Thai To Str., Hoan Kiem Dist., Hanoi

New law that impact Work permit in Vietnam for foreigners

Vietnam has recently issued a new law that put a stricter control on foreigners working in Vietnam.  With the changes being implemented from early November of 2013, the process to apply for work permit in Vietnam will take longer and would cost extra fees.  The work permit for foreigners in Vietnam will now require the approval from head of People’s Committee and that once it is issued, it will only be good for two years as max in compared with three years as regulated earlier.  ANT Lawyers’ employment and labour lawyers in Vietnam keep track of the changes in the employment and labour law in Vietnam and assist our client to cope with changes.   The Government has issued Decree 102/2013/ND-CP elaborating some articles of the Labour Code on foreignworkers in Vietnam. Accordingly, the employer applying for work permits of foreign employees must comply with the following procedure: -          Step 1: Make a report stating clearly the demand of employee in their companies, then send to the President of People’s Committee in order to apply for the permission of foreign worker employment. -          Step 2: Prepare documents and submit for work permits at Department of Labor and Social Welfare before 15 days at least of the date employees start work. The work permits shall be valid with maximum term of 2 years. The new Decree also allows four group of others to work in Vietnam, including: -          Volunteers who work voluntarily without salary or wage; -          The persons who are responsible to establish the commerce presences in Vietnam; -          Managers, CEOs, specialists, technical workers who are trained in technology major at least 1 year and used to work at least 3 years in trained major; -          The persons who are engaging in bidding projects and other projects in Vietnam. Decree 102/20113/ND-CP takes effect on November 1^st 2013 and replaces Decree 34/2008/ND-CP. If you need to apply for the work permits or relevant issues, we could assist.  ANT Lawyers, your lawyers in Vietnam

Vietnam is about to have the biggest brewery factory in Asia

BTG holding is located in Slovakia, provides and develops technology in energy, mind,industry. Currently, the holding has invested all over the world but focused on some countries as Turkey, Colombia, Czech, and Vietnam in 4 recent years. ANT Consulting will update this information.

On November 29^th 2013, BTG Holding started the construction of factory at Lac Thinh industrial zone in the area of 220 ha at Lac Thinh commune, Yen Thuy district, HoaBinh province. Total capital of the construction is more than Euro 40 million. The first two projects obtained construction permits in this industrial zone are Czechoslovakia brewery factory and thermal power plant invested by BTG Holding.

The Czechoslovakia brewery factory will have capacity of 190 liter /year, total capital of Euro 86 million and main product Budweiser Budvar beer. This product may be supplied to Vietnam market and exported to neighbor countries such as Korea, Japan, China.As expectation, the new factory will conduct business from November 2015 and become the biggest factory located in Asia.

Besides, BTG Holdings will construct thermal power plant which have capacity of 2×25 HW, total capital of Euro 100 million in order to ensure the stable supply for factories in the industrial zone manufacturing dairy products, solar cell, electric chip,…

Moreover, BTG Holding is going to plan another project to construct a car factory in industrial zone with capital of over Euro 200 million.

For more information or business advice, please contact ANT Consulting. ANT Consulting, your consultants in Vietnam.

Labour law: increasing the minimum area salary 2014

In Vietnam, the minimum salary has been used by employer to determine the minimum level to be paid to unskilled workers working in a normal conditions in different parts of the country.  The minimum level has recently been criticized not reflecting the increase of Vietnam’s inflation over the years as such not sufficient for the workers to maintain a normal daily expenses.  The adjustment has been expected long since the last minimum salary increase and only been legalized after the assembly meeting recently.

Decree 182/2013/NĐ-CP has been issued and taking effect on Dec 31st, 2013 which regulates the minimum area salary for employees working at enterprises, cooperatives, cooperation groups, farms, households, individuals and other organizations employing workers.  This decree will replace Decree 103/2012/ND-CP.

Accordingly, the minimum area salary in 2014 increases about 14% compared with 2013, and valid as of Jan 1st, 2014.  This new law will result in higher variable cost of enterprises operating in labour intensive industries i.e. manufacturing, agriculture.  For more information or legal advice, please contact ANT Lawyers, youremployment lawyers in Vietnam.

Telecommunication investment in Vietnam – VNPT’S restructuring plan

Telecommunication investment in Vietnam has been a heated subject recently as when the Prime Minister visited US.  ANT Consulting’s business consultants in Vietnam have been following the news and changes in the telecom area as such we could provide our clients the up to date movement for their investment decision.

Telecommunication in Vietnam is an attractive field however it is not easy to turn investment opportunity into profit.  Previously, there has been some small telecommunication networks established on the cooperation basis of foreign enterprises such as S-Fone – between SPT and SK Telecom, Beeline – between Gtel and Vimpelcom, Vietnamoblie – between Hanoi Telecom and Hutchison Telecom. Until now, only Hutchison Telecom remains in Vietnam while SK Telecom and Vimpelcom have withdrawn.  Vinpelcom lost more than $400 million in the investment.

Engaging in invest indirectly from purchasing shares of high-profit enterprises such as VNPT or Viettel is not easy. Viettel has stated that they would not equitized, while VNPT’s equitization plan has been delayed for years

The story has been heated recently by talk on re-starting the restructure process of VNPT in which the issue taking most attention is that one telecommunication’s separation from VNPT.

According to Minister of Ministry of Information and Telecommunication, Mr. Nguyen Bac Son, the restructure process of VNPT would be carried out officially in September, 2013.  He also referred to a “separated telecommunication network”. Many specialists stated that it could be Mobifone.  In a recent interview of Bloomberg, Prime Minister, Mr.Nguyen Tan Dung implied to the equitization of telecommunication enterprises once.  He said that the Government was considering increasing foreigner-owned capital at banks and telecommunication enterprises as well.

It can be said that Mobifone is the most valuable asset of VNPT.  Last year, the VNPT’s total profit of VND 8.500 billion, out of which Mobifone contributed VND 6.600 billion, nearly 80%. Despite the high tax rate, the cost for advertisement and marketing could be beyond the tax deduction ceiling, it is assumed that net profit of Mobiphone is about VND 5.000 billion.  As such, it is expected that the Mobifone’s value may be exceed VND 100.000 billion.

Also note that the figure of VND 100.000 billion or $ 5 billion above is not high, compared with those businesses in area. Advanced Info Service – the largest telecommunication enterprise in Thailand – is currently worthy of $ 24 billion or PLDT – the largest one in Philippines – values approximately $27 billion.

If you need further information on the telecommunication in Vietnam, we could assist with research and investigation.  ANT Consulting, your business consultants in Vietnam.

Counterfeit in Vietnam and how to handle trademark infringement

Counterfeit destroys businesses, business environments, markets as well as the image of the country.  Vietnam government has been trying to curb the counterfeits however the results are limited.  ANT Lawyers’ Intellectual Property legal practice covers advising clients in trademark infringement and protecting foreign brands in Vietnam from infringement. The counterfeit business generates huge profits due to the gap price anywhere in the world.   Almost goods which is either popular or luxury, high or low-value of either domestic or foreign brands are being counterfeited, imitated.  Falsification of household goods, food, cosmetics, shoes and items of higher value such as bags, watches, glasses, etc may be found all over Vietnam. For effective anti-counterfeit, we need a close cooperation among the authority agencies in inspection, control of production, import and circulation in the market.  The Southern Department of Goods Quality Control in Vietnam in one of its regular inspections when cooperating with competent agencies in Ho Chi Minh City found after checking 79 stores with 416 items including: oil, helmets, toys, electronic devices that 33.89% of goods of unsatisfactorily labeled, 14.5% unsatisfactory quality. Where the consumers buy counterfeit goods, they could and should notify the production enterprise to State authorities, Anti-Counterfeit and Brand Protection Association as an effort to contribute to curbing counterfeit in Vietnam.  The international brands being infringed could request assistance from local law firms in Vietnam. ANT Lawyers’ Intellectual Property lawyers in Vietnam have assisted a number of clients being foreign brands in its effort to protect their intellectual property and industrial property rights in Vietnam through advisory, and implementation service.  ANT Lawyers, your lawyers in Vietnam.

Area of expersite about commercial in ANT Lawyers

At ANT Lawyers, our Commercial practice help clients with the following:

Incorporation service: advising on business structure, drafting documents, negotiation with local companies and authorities and obtaining licenses and approvals.

Post-licensing procedures: advising on the obtaining of various registration, approvals and permits for foreign invested companies in Vietnam.

Commercial contracts: drafting, negotiating and amending many types of commercial contracts including lease agreements, sales and distribution agreements, agency agreements and service contracts.

Management: advising on the operation of the board of management of a joint venture company or a wholly foreign owned capital, the appointment of key management personnel.

Due diligence: reviewing documents and issuing due diligence reports on the legal status and operation of both domestic companies and foreign invested companies in Vietnam.

Please contact us for inquiries through email ant@antlawyers.vn or call our partners directly at  + 84 912 817 823.

Let ANT Lawyers help your business in Vietnam.

translation services in Vietnam

ANT Consulting offers high quality localization and translation services in a wide range of subjects leveraging on our long term working relationship with experienced linguists whom are fully skilled to handle complex translation projects that may require urgent deadlines and competitive prices.

We pride ourselves on the high level of service we provide to all our clients.

Simplifying the procedure for foreigner to reside in Vietnam

For foreigners wishing to come to Vietnam to work and reside temporarily, they need to either set-up a company in Vietnam or work for others. The owner of the company does not need a work permit but still need to apply for temporary residence card. However, the foreign employee will need the employer to sponsor the work permit in Vietnam before applying for temporary residence card. A recent draft law on entry, exit and residence of foreigner in Vietnam has been proposed with some changes. The draft regulates many open provisions on entry-exit procedure, temporary and permanent residence conditions for foreigner to reside in Vietnam. ANT Lawyers always follows the new updates about administrative procedures in Vietnam to provide our client with the best service.

The new draft law details conditions for granting the temporary residence card for foreigners working in Vietnam, rising term of this card from 3 year to 5 year. The foreigners’ category expands to scientists and specialists residing in Vietnam for the purpose of attracting international talents, the foreigners who don’t have any type of document proving nationality, and have resided in Vietnam before the year 2000. The foreigners holding temporary residence card must change card per periodically 10 years at the issuing offices. The draft law does not allow the foreigners to change the entry purpose, but allows them to supplement the purpose of belonging persons in some specific cases such as in term of diplomatic representative offices, consulate, international representative office of United Nations and students at universities, colleges, schools.

For more information or requirement of legal services to obtain temporary residence card in Vietnam, we could assist. ANT Lawyers, your lawyers in Vietnam.

Vietnam is expected to import oil and coal in 2015

Although being rich of natural resources, Vietnam still faces energy problems as other countries.

According to a specialist at convention recently, the Vietnam’s energy consumption has grown more quickly 1.8 times than economy growth. As expectation, energy demand will increase 2.5 times in 2015 and 5 times in 2025 compared with the current consumption.

It’s stated that from 2010, Vietnam has remained signal of unbalance in demand and supply from domestic energy sources, especially the electricity from hydropower which is variable due to lack of water in dry season and excess in rainy season.

For the solution, it’s proposed that the functional agencies must have smart approaches in order enterprises and residents, especially in urban area, acknowledge the importance of energy saving, manage effectively the energy, use energy saving solutions.

For more information and advice to enter into Vietnam market, please contact ANT Consulting. ANT Consulting, your consultants in Vietnam.

Nokia inaugurates the new factory over USD 300 million in BacNinh

According to expectation of many experts, Vietnam has passed the most difficult period while many countries in area are still in stagnation. ANT Consulting always helps Client follow the new updates for determining chances to invest in Vietnam.
Information research service in Vietnam

The new Vietnam Nokia is located in Vietnam-Singapore Industrial Zone (VSIP, BacNinh) with the area of 65.400 Square meter, the total investment capital of USD 302 million. Until now, the project has been developed in the first period (value at USD 140 million). The current factory enables to produce popular mobiles only, will conduct business in June 2013. Besides the role of main manufacture center, the establishment in BacNinh will also training and developing staff base.

reputation check in Vietnam

As announcement at the inauguration, Nokia commits to continue developing human resources and social activities next time and hope the new factory in BacNinh may be a form for other investments of Nokia in Vietnam. According to General Director of Nokia, Vietnam has been a crucial market for the company’s global strategy for 17 years with lots of potential and chances.

Deputy Minister of Ministry of Investment and Planning demonstrated his pleasure that Nokia picked Vietnam as a “key” in the global development plan and provided Vietnam a big chance for technology field which is growing quickly. Also, he stated that this was a highlight of Finland’s FDI investment to Vietnam.

Investment of Nokia in Vietnam can present that Vietnam is really attractive and promising for both big and small investors. If Client need further information aboutVietnam’s market or chances to investment in Vietnam, please contact ANT Consulting. ANT Consulting, your consultants in Vietnam.

International Trade and Taxes lawyers in Vietnam

At ANT Lawyers, our International Trade and Tax practice help clients on:

Regularly update international manufacturers, exporters and importers on latest trade regulations and import-export tariffs of Vietnam; Provide advice on Vietnamese law in regard of international trade disputes, shipping, customs, import and export control, and other trade-related issues. Provide Tax advice, Tax compliance, and general Tax consulting to various industries including banking, power, automobile, telecom, services, trading and manufacturing sectors. Please contact us for inquiries through emailant@antlawyers.vn or call our partners directly at  + 84 912 817 823. Let ANT Lawyers help your businessin Vietnam

trademark protection in Vietnam

 Legal basis:

+ Ordinance No. 24/2000/PL-UBTVQH10 on 28.04.2000 for entry, exit and residence of foreigners in Vietnam.

+ Decree No. 21/2001/ND-CP dated 28/5/2001 of the Government detailing the implementation of the Ordinance on Entry, Exit and Residence of Foreigners in Vietnam
+ Circular No. 66/2009/TT-BTC dated 30/03/2009 of the Minister of Finance issued regulations on the collection, remittance, management and use of fees for passports, visas and papers on entry, exit, transit and residence in Vietnam

+ Circular No. 04/2002/TTLT-BCA-BNG dated 29/01/2002 guiding the implementation of Decree No. 21/2001/ND-CP dated 28/5/2001 of the Government detailing the implementation of Ordinance on Entry, Exit and Residence of Foreigners in Vietnam

+ Circular No. 01/2007/TTLT-BCA-BNG dated 30/01/2007 amending and supplementing a number of articles of Circular No. 04/2002/TTLT-BCA-BNG on 29/01/2002.

I. Subjects to be granted temporary residence card:

• Members of foreign representative agencies and their accompanying relatives (father, mother, wife, husband, children under 18 years old).

• Foreigners who work with the Institute of the Supreme People’s Procuracy, the Supreme People’s Court, the ministries, ministerial-level agencies, agencies attached to the Government and People’s Committees of provinces and cities directly under the Central Government and the Central offices of mass organizations, mass organizations.

• Foreigners who work in projects already approved by competent state agencies licensed in Vietnam.

• Foreigners who work with businesses in Vietnam has the work permit valued more than 01 year.

• Persons on the payroll of foreign representative offices and branches of economic organization, culture and other professional organizations of foreign non-governmental organizations based in Vietnam.

• Foreigners staying in Vietnam for other purposes.

II. Conditions for implementation

+ Time to stay in Vietnam more than 01 year;

+ Valid passport more than 01 year;

III. The composition, the number of records:

1) The composition profile, including:

• A written request of agencies, organizations and individuals offering, guarantee and propose for temporary residence card;

• 01 declaration of information of foreigners who apply for temporary residence, with photos and sealed by the agency or organization: A written request for temporary residence card (Form N7A); a declaration about Foreigners applying for temporary resident card (Form N7B)

• 02 3 x4 cm size photographs;

• 01 copies of passport, valid visa, immigration cards (bring original for comparison);

• 01 copies or photo (bring the original for comparison) proof of purpose to stay in Vietnam.

As the case may file appropriate documents: investment licenses, permits the establishment of enterprises, work permits, certificate of board members and permits the establishment of representative offices, marriage/birth registration…

2) The number of records: 01 (one).

IV. Implementing agencies administrative procedures:

Immigration management Department, Police provinces and cities directly under the Central Government.

V. Implementation time: 05 to 07 days;

VI. Subjects performed:  by organizations and individuals;

Please contact us for inquiries through email ant@antlawyers.vn or call our partners directly at  + 84 912 817 823.

Starbucks exceeds expectations in Vietnam

In February, Starbucks corporation officially entered the Vietnam market with a big store in Ho Chi Minh City. According to Howard Schulz, CEO of Starbucks, the revenues in the first store in Vietnam drastically exceeded the company’s expectations. However, these first results might not be indicative of the company’s projected success in the entire country, as there is a substantial difference between the deep-rooted coffee culture of Vietnamese people and Starbucks coffee.

Vietnam has an established and traditional coffee culture originating from its historical roots in coffee production to its current position as a leading global coffee producer. In contrast to Starbucks’ normal markets, Vietnam has a long tradition in drinking very strong coffee and the local shops at a substantially lower price.

However, Mr. Schulz has maintained that the current development of Starbucks in Asia is a sign of improved future performance for Starbucks in Asian countries. Although, Starbucks’ main focus is on the U.S., its home market, the company still has large investment plans for countries like China, Thailand and other Asia-Pacific regions; the company believes investing in the fast-growing economies of Southeast Asia presents large growth potential for Starbucks in the future.

In trying to bridge the culture gap, Starbucks has launched specific products that correspond with flavors of typical Asian dishes. Nevertheless, Vietnam is still not an easy market for American coffee, but, Starbucks intends to offer more than just selling coffee.  According to Mr. Schulz, it is the environment, store design and the experience of Starbucks coffee shops that makes Starbucks so unique. Young customers are attracted by not only the product, but the experience of going to a Starbucks; this is a good sign for the future development of Starbucks in Vietnam.

Legal document services

At ANT Lawyers, we assist clients on:

Searching and providing legal updates on specific matters required;

Representing client to file applications at relevant authorities;

Assisting client to retrieve copy or  verify documents at relevant authorities;

Translating documents inclusive but not limited to contracts, criminal/civil/commercial case documents, birth, death, marriage and divorce certificates.

Please contact us for inquiries through email ant@antlawyers.vn or call our partners directly at  + 84 912 817 823.

Let ANT Lawyers help your business in Vietnam.

Temporary residence card in Vietnam

Immigration services, Legal services Legal basis: 
 + Ordinance No. 24/2000/PL-UBTVQH10 on 28.04.2000 for entry, exit and residence of foreigners in Vietnam.
 + Decree No. 21/2001/ND-CP dated 28/5/2001 of the Government detailing the implementation of the Ordinance on Entry, Exit and Residence of Foreigners in Vietnam 
+ Circular No. 66/2009/TT-BTC dated 30/03/2009 of the Minister of Finance issued regulations on the collection, remittance, management and use of fees for passports, visas and papers on entry, exit, transit and residence in Vietnam 
 + Circular No. 04/2002/TTLT-BCA-BNG dated 29/01/2002 guiding the implementation of Decree No. 21/2001/ND-CP dated 28/5/2001 of the Government detailing the implementation of Ordinance on Entry, Exit and Residence of Foreigners in Vietnam
 + Circular No. 01/2007/TTLT-BCA-BNG dated 30/01/2007 amending and supplementing a number of articles of Circular No. 04/2002/TTLT-BCA-BNG on 29/01/2002. 
 I. Subjects to be granted temporary residence card:
 • Members of foreign representative agencies and their accompanying relatives (father, mother, wife, husband, children under 18 years old).
 • Foreigners who work with the Institute of the Supreme People’s Procuracy, the Supreme People’s Court, the ministries, ministerial-level agencies, agencies attached to the Government and People’s Committees of provinces and cities directly under the Central Government and the Central offices of mass organizations, mass organizations.
 • Foreigners who work in projects already approved by competent state agencies licensed in Vietnam.
 • Foreigners who work with businesses in Vietnam has the work permit valued more than 01 year. 
 • Persons on the payroll of foreign representative offices and branches of economic organization, culture and other professional organizations of foreign non-governmental organizations based in Vietnam
. • Foreigners staying in Vietnam for other purposes.
 II. Conditions for implementation
 + Time to stay in Vietnam more than 01 year;
 + Valid passport more than 01 year;
 III. The composition, the number of records:
 1) The composition profile, including:
 • A written request of agencies, organizations and individuals offering, guarantee and propose for temporary residence card; 
 • 01 declaration of information of foreigners who apply for temporary residence, with photos and sealed by the agency or organization: A written request for temporary residence card (Form N7A); a declaration about Foreigners applying for temporary resident card (Form N7B)
 • 02 3 x4 cm size photographs; 
 • 01 copies of passport, valid visa, immigration cards (bring original for comparison); 
 • 01 copies or photo (bring the original for comparison) proof of purpose to stay in Vietnam. As the case may file appropriate documents: investment licenses, permits the establishment of enterprises, work permits, certificate of board members and permits the establishment of representative offices, marriage/birth registration… 2) The number of records: 01 (one).
 IV. Implementing agencies administrative procedures: Immigration management Department, Police provinces and cities directly under the Central Government.
 V. Implementation time: 05 to 07 days; 
 VI. Subjects performed: by organizations and individuals;

Competition in the retail market of Vietnam

In Vietnam, the retail business experiences more and more active competition between the major brands of Co.opmart; Big C and Metro.

Foreign enterprises entrance cause tougher competition in Vietnam but within this competition, the Vietnamese Co.opmart and the Thai Central Group’s retailer Big C are active competitors. Their strategies to differ from each other are characterized in various ways. Big C is considered to have lower price by 1-3% from other supermarkets. It also aims to provide the best price to the customers combined with quality control and good service. Co.opmart’s business plan focuses on daily good prices for that customers can receive fresh food and good customer support. Experts say that Co.opmart understands the consumer psychology in Vietnam what definitely is an advantage. Both enterprises also have certain similarities in doing their business. For example, both retailers preferably sell domestic goods which represent an amount of 90-95% of their overall products and build good connections with farms, manufacturers and thereby enhance the presence of Vietnamese products in the market.  They also launch more and more private label goods which are a real advantage for all distributors.  At the moment, the two retailers Big C and Co.opmart have a market share in the food retailing market of about 55-60% in Vietnam. But Co.opmart is not the only brand of the Saigon Co.op’s business in Vietnam. Another brand is Co.opXtraplus which is a competitor for the German Metro wholesale business. With Co.opXtraplus’ existance, Metro is no longer the only big wholesale business. The business model of Co.opXtraplust is similar to the Metro Cash &  Carry one’s and having said that Co.opXtraplus not only targets individuals like the Co.opmart but also companies, factories, schools, restaurants and hotels. When in former times Metro was the wholesale giant in the business, now Co.opXtraPlus is becoming a serious competitor.  In the retail sector, the Saigon Co-op’s supermarket chain Co.opmart 63 willl compete more and more with Big C and the group will be a competitor in the two branches of retail and wholesale. To counter back, Metro implemented new strategies to conquer Saigon Co-op by extending the target groups‘ profile to open for more specific customer groups such as bars, grocery stores, canteens or offices and Metro also starts to offer services such as delivery and consulting services for small retail stores to help them increase their efficiency and competitiveness. Additionally, Metro expands diversified distribution in multiple sales channels such as delivery and payment in debit form as addition to the model of the Cash & Carry tradition. Metro still has 24 centers in Vietnam and the government has supported Metro with good conditions for the distribution centers especially on conditions concerning location.  Intense but healthy competition is a good booster for innovative retail investors and professional services.  This creates opportunities to contribute to the growth and development of Vietnam‘s retail market to become more efficient and provide best products and service customers in Vietnam.

ANT Consulting

Retailing and consumer goods

Purchasing and exchanging goods are ancient activities emerging from human’s demand of foods, drinks and other daily needs.  Retailing and consumer goods distribution in Vietnam have developed rapidly in Vietnam driven by the growing of young mid-income consumer group in Vietnam.  The retailing index has been high according to A.T.Keraney – a famous US consulting firm whom publishes regular report on Vietnam and other neighbouring countries.  As a consequence, a number of foreign investors in retailing, and consumer goods distribution are eager to take part in this market.  Our lawyers in Vietnam have always caught up with changes of laws and regulations in retailing and consumer goods distribution to give client best advice.As defined in Decree no.23/2007/ND-CP, retailing means the sale of goods directly to the end consumer. It differs from wholesale which means the sale of goods to traders or other organizations, excluding the sale of goods directly to the end consumer.  But both of them are the parts of distribution which covering all activities to take the goods to consumers.  In Vietnam, distribution goods may be carried out by many forms, popularly traditionally wholesale and retail, besides more modern ones such as franchise, agency.

Currently, a Vietnamese person may conduct retailing easily by establishing a private enterprise, household or just small establishment without registration. The laws allow local retailing to enjoy special in taxation, audition, certificate issues. For very small business, tax can be based on revenue, not applying tax deduction method as usual.

However foreign owned enterprises investing in Vietnam in retailing and consumer goods distribution activity are bound by strict regulations.  According to Decree No.23/2007/ND-CP and Circular 08/2013/TT-BTC especially guiding on foreign enterprises business in sale goods in Vietnam, sale goods and related activities of foreigners generally must meet the conditions:  i) Being investor from a country or territory which has a treaty with and under which Vietnam has committed to open its market for good purchase, sale activities and related activities; ii) Making investment in a form conformable with provisions of Vietnam; iii) Dealing in goods and operating within a scope in accordance with Vietnam’s market-opening commitments and Vietnam laws; iv) Obtaining Business Certificate of provincial People’s Committee when granted already the Investment Certificate. The foreigners having allowed distributing in Vietnam and wishing to set up the first retail establishment must not submit for Business Certificate above.  But they must comply with above certificate for the second and next retail establishments.

Pursuant to Vietnam’s entrance commitments to WTO, the market shall be more open in the near future, as such retailing and other activities of sale goods have been predicted to develop quickly. That is a great opportunity for both domestic and foreign investors.

Professionals at ANT Lawyers, a law firm in Vietnam work on a variety of the consumer goods and retail transactions and cases. Our attorney’s industry knowledge and expertise allow us to effectively support the consumer goods and retail sector.  We deliver the experience and expertise needed to handle issues in both private practice and in corporate and regulatory bodies.  ANT Lawyers provide relevant industry-focused advice, delivered quickly to ensure that we add value from day one.  ANT Lawyers, your lawyers in Vietnam.