Health check-up for work permit: HIV testing result is required?

In Vietnam’s practice, when guiding the foreign employee to have health check, the medical centers often require for the blood test and the HIV testing result is also shown on the health check certificate. That certificate is submitted to the provincial department of Labor, War Invalids and Social Affairs for work permit application. However, that practice does not comply with the laws of Vietnam.

Under the applicable laws, the HIV testing is conducted on the basis of voluntariness of the person to be tested and the compulsory HIV testing in the specific cases required by the laws. The employee has the right to refuse this test. The employer may not request a job applicant to have an HIV test or produce an HIV test result, or refuse to recruit a person on the ground that such person is infected with HIV, except for the case specified by this Law.

Tiền lương đóng bảo hiểm xã hội là bao nhiêu?

Thực tiễn hiện tại là nhiều các doanh nghiệp, đặc biệt là doanh nghiệp sản xuất tại các khu công nghiệp lựa chọn mức đóng Bảo hiểm xã hội cho người lao động bằng mức lương tối thiểu, và thấp hơn tổng tiền lương thực trả hàng tháng. Tuy nhiên nhiều ý kiến cho rằng mức lương đóng Bảo hiểm xã hội phải là mức lương thực trả hàng tháng. Vậy nên hiểu mức lương đóng bảo hiểm theo quy định pháp luật hiện nay là như thế nào?

Regulations on holding a suspicious in Vietnam

I.              Cases of the suspicious person being held

Under the Penal Proceeding Code of Vietnam, the suspicious person may being held under the mode of custody or temporary detention with a certain timeframe depend on each case.

A person who is arrested in urgent cases, offenders caught red-handed, offenders who confessed or surrendered themselves or persons arrested under pursuit warrants, may be applied for custody. Applied for custody means that person will be held for a temporary period when the competent authority opine that it is necessary to apply for the custody, e.g. the custody will support for the investigation or may prevent the suspicious person from continuing to perform the crime or escaping, etc… In other cases, the suspicious person may be allowed to leave, normally after completing the minutes with the competent authority.

Practising Law in Vietnam

A lawyer in Vietnam is entitled to select either of the following forms of legal practice:

1.            Practice in a legal practising organization, implemented by establishing or participating in the establishment of a legal practising organizations; [or] by working pursuant to a labor contract for a legal practising organization.

2.            Practice as an individual meant the lawyer works pursuant to a labor contract for a body or organization not being a legal practising organization.

The legal practising organizations shall comprise (i) Lawyer’s offices and (ii) Law companies

The benefits of a definite-term labor contract employee

Under the Labor Code of Vietnam, when the employer signs a definite-term labor contract with a 12 month fixed term with an employee and this employee will be entitled to the benefits in accordance with this type of labor contract as follows:
Firstly, the laws of Vietnam require the employer and the employee to participate in compulsory social insurance, health insurance and unemployment insurance. The employer and the employee must together contribute 32.5 % of the employee’s gross salary to the social insurance funds.

The responsibility of the Employer for PIT payment

Under the applicable laws on Personal Income Tax (“PIT”), the Employer as the income-paying organization who pays income subject to PIT, must conduct tax declaration and tax finalization in accordance with the guidelines on procedures and documentation in the documents providing guidelines on tax management.

The principles of tax declaration are notably as follows:

i.              The Employer withholds PIT make tax declaration on a monthly or quarterly basis. No tax declaration is required if no PIT is withheld in the month or quarter by the income-paying organization or individual.

Regulatory background on telecommunication

Telecommunication sector in Vietnam is generally regulated by the below legal documents:

- WTO commitment on telecommunication services

- Law on Telecommunication No. 41/2009/QH12 of the National Assembly

- Law on Information Technology No. 67/2006/QH11 of the National Assembly

- Law on Electronic Transactions No. 51/2005/QH11of the National Assembly

- Decree 25/2011/ND-CP of the Government guiding Law on Telecommunication

Under Vietnam’s WTO commitments, telecommunication services are classified into Basic telecommunication services (e.g. Voice telephone services; Packet-switched data transmission services; Circuit-switched data transmission services) and Value-added services (e.g. Electronic mail; Voice mail; On-line information and database retrieval; Electronic data interchange (EDI))

New laws help harness capital inflows

Vietnam Investment Review - New laws help harness capital inflows

On November 26, 2014, the National Assembly passed the new Law on Investment and Law on Enterprises. Both changes were initiated to spur additional foreign investment interest that should commence after the signing of the Free Trade Agreement with the European Union and the Trans-Pacific Partnership (TPP).

Chairman of the Vietnam Chamber of Commerce and Industry Dr. Vu Tien Loc, in a recent conference on the subject of foreign investment in Hanoi, indicated that foreign investment was responsible for creating between 21 per cent and 30 per cent of the social development in the country as well as contributing close to 20 per cent of the gross domestic product of Vietnam. There is no question that foreign investment is of vital importance to the continued growth and prosperity of Vietnam.

Environment protection of small businesses in Vietnam

The obligations on environment protection in respect to the individual, small business, e.g. bar, restaurant business are generally regulated under a number of legal documents, e.g. the Law on Environment protection No. 52/2005/QH11 dated November 29^th 2005, Decree No. 29/2011/ND-CP dated April 18^th 2011 regulating on strategic environment assessment report, environmental impact assessment reports, commitment to environmental protection; Decree No. 117/2009/ND-CP dated December 31^st 2009 on dealing with violation in the field of environment protection (Decree No. 117/2009/ND-CP).

Under the applicable laws on environment protection (Article No. 24 of Law on Environment Protection), the household scaled production, business and service units and objects that are not fallen into the categories required for preparation of Strategic Environment Assessment Reports and Environmental Impact Assessment Reports shall be subject to the commitment to environmental protection made in written form.

The responsibility of the Employer for the staff’s PIT payment

Under the applicable laws on Personal Income Tax (“PIT”), the Employer as the income-paying organization who pays income subject to PIT, must conduct tax declaration and tax finalization in accordance with the guidelines on procedures and documentation in the documents providing guidelines on tax management.

The principles of tax declaration are notably as follows:

i.              The Employer withholds PIT make tax declaration on a monthly or quarterly basis. No tax declaration is required if no PIT is withheld in the month or quarter by the income-paying organization or individual.

Can the foreigner be subject to free legal aid in Vietnam?

Under the Law on Legal Aid of Vietnam the persons entitled to legal aid are: (i) Poor people; (ii) People with meritorious services to the revolution; (iii) Lonely elderly people, disabled people and helpless children and (iv) Ethnic minority people permanently residing in areas with exceptionally difficult socio-economic conditions.

At present, the Law on Legal Aid is silent on the availability of the free legal aid to foreign nationals. However, this Law states that when a treaty to which Vietnam is a contracting party contains any provisions different from those of this Law, the provisions of that treaty shall apply. Therefore, this will depend on whether Vietnam and the country where the foreigner has citizenship have signed any legal aid treaty on criminal matters or not.

The regulations on occupational accident and disease in Vietnam

Under the Law on Social Insurance, the regime of compulsory social insurance and health insurance covers occupational accident and disease and when the employer pays the compulsory social insurance and health insurance for the employees, the employee will be entitled to the regime of occupational accident and disease.

The employer who is subject to the regime of compulsory social insurance, must pay the social insurance for its’ employee and in the case the employee is suffered occupational accident and disease, the social insurance fund will be responsible for payment of the medical expenses in accordance with the laws on the health insurance. Under the current Law on Social Insurance, the regime of health insurance covers occupational accident and disease and the employees participating in compulsory social insurance are entitled to enjoy this regime.

Organization of international conferences and seminars in Vietnam

According to the regulations of Vietnam on the organization and management of international conferences and seminars, international conferences and seminars are defined as foreign-involved meetings held directly in the territory of Vietnam or held online with at least one end being in the territory of Vietnam, including the conferences and seminars organized by Vietnamese agencies or organizations and attended or sponsored by foreign parties and conferences and seminars organized by foreign agencies or organizations licensed by a Vietnamese authority to operate in the territory of Vietnam.

Opening a bank account of the foreigners in Vietnam

The requirements on opening a foreigner's bank account is set out by the bank and each bank has its' own requirement and limitation (stricter and less strict depending on each bank). The banks in Vietnam generally require for a Work Permit or Residence Card in respect to the foreigner's bank account. The Citibank requires with a Work Permit or Residence Card without any exemption. While in ANZ, the citizen of England, Austrialia, New Zealand will be required only for passport. Standards Chartered will base on the term of foreigner's residence in Vietnam at the time of opening bank account (whether the foreigner has been in Vietnam for more than or less than 06 weeks) to ask for the certificate of residence registration issued by the local police authority of Vietnam. HSBC requires the US citizen for filling the form W9 and providing with a copy of car license or ID card with the purpose of proving the residence address

Work permits dominate dialogue

SaiGon Times Daily- Work permits dominate dialogue

HCMC – Work permits for foreign employees among other pressing issues took center stage at a dialogue in HCMC on December 4 between enterprises and the Ministry of Labor, Invalids and Social Affairs.

At the dialogue held by the HCMC Investment and Trade Promotion Center (ITPC) and Nhan Viet Management Group (NVM Group), lawyer Miki Yasufumi at Vietnam International Law Firm (VILAF) asked why the validity of work permits for foreign workers is reduced to two years from three while their labor contracts can last three years.

F&B investors enter Vietnamese market via side door

VietNamNet Bridge - F&B investors enter Vietnamese market via side door

VietNamNet Bridge – Vietnam will have to open its food & beverage (F&B) market beginning in January 2015 under its WTO (World Trade Organization) commitments.  However, dozens of F&B brands have been present in Vietnam for years, some entering through the “front door”, and others through the “side door”.

The opening of the first Starbucks shop in Vietnam earlier last year, for example, was a surprise to many lawyers.

Under its WTO commitments, Vietnam does not have to fully open its F&B market to foreign investors until eight years after WTO accession. Vietnam officially joined the WTO in January 2007.

Responsibility for Trade Union establishment in Vietnam

I.       Responsibility for Trade Union establishment

Firstly, under the Article 189.2 of Labor Code 2012, the directly superior level trade union above a grassroots trade union has the right and obligation to persuade employees to join trade union, and to establish a grassroots trade union in their enterprise, agency or organization; and has the right to require the employers and the local state administrative authority for labor to facilitate and assist the establishment of grassroots trade union.

The employer does not have the responsibility for directly establishing the grassroots trade union. The employer only has the obligation to facilitate the establishment and operation of grassroots trade union.

Regulations on child adoption in Vietnam

Following Vietnam's ratification on November 1, 2011, Vietnam became the full member of the Hague Convention on Protection of Children and Co-operation in Respect of Inter-country Adoption and this Hague Convention was entered into force in Vietnam on February 1, 2012. The laws of Vietnam do not prohibit the foreigner from child adoption, so it is possible for a foreigner to adopt a child in Vietnam provided that he/she is qualified for the adoption requirements. However, the foreigner may face with the lengthy and complicated administrative procedures for being permitted to adopt a child.

It is important to note the principles under the Law on Adoption of Vietnam that the foreigners must be permanently reside in the countries being contracting parties to an adoption treaty along with Vietnam adopt a Vietnamese child and the adoption by a person living abroad is allowed only when no domestic substitute family can be found.

The establishment of travel representative office in Vietnam

At the present, the tourism activities in general and the operation activities of the foreign travel company’s representative office (RO) are regulated by the Law on Tourism No. 44/2005/QH11 dated 14 June 2005 and its’ implementing regulations. Those legal documents are the main basis for the tourism industry in Vietnam.

Even the Decree No. 72/2006/ND-CP regulates the operation activities in Vietnam of the branch, representative office of foreign businesses, the law on tourism is the specialized legal document and will be applied first when there is the inconsistence between this Decree and the laws on tourism. The regulations on travel-related RO is a separate regimes applied for the foreign businesses in the tourism industry.

Sale and purchase activities of goods for the FIEs in Vietnam

Implementing the route and the commitments of Vietnam in the accession of World Trade Organization (“WTO commitments”), the Ministry of Industry and Trade (“MOIT”) issued Circular No. 34/2013/TT-BCT dated 24 December 2013 (“Circular No. 34”) announcing the schedule for implementation of the sale and purchase activities of goods and activities directly related to the purchase and sale of goods by enterprise with the foreign invested enterprises in Vietnam (“FIEs”).  This Circular No. 34 took effect from 05 February 2014 and replaced the Decision No.10/2007/QD-BTM on 21 May 2007 of the Ministry of Commerce announcing the schedule for implementation of the sale and purchase activities of goods and activities directly related to the purchase and sale of goods (“Decision No.10”). 

Management, provision, and use of internet service and online information in Vietnam

Management, provision, and use of internet service and online information in Vietnam are basically regulated by among other legal documents, Decree No. 72/2013/ND-CP on management, provision, and use of internet service and online information issued by the Government on 15 July 2013 (“Decree 72”).

Below are the summary of some main content in Decree 72:

Firstly, Decree 72 provides detailed regulations on online game business which are viewed to loosen the obstacles in online game business during last few years. Decree 72 classifies the video games into 04 different methods of service provision (i.e. Video games that have interaction among multiple players via the game server; Video games that only have interaction between the players and the game server; Video games that have interaction among multiple players without interaction between players and the game server; Video games that are downloaded from the Internet without the interaction among players and between players and the game server) and provides the requirement for establishment of online gaming service center.

How to apply for criminal record in Vietnam?

Under the current laws on criminal records, a foreigner who has been living in Vietnam for more than 06 months may apply for the criminal records at the local Department of Justice where he/she lives.

The applicant must fill the standard forms and provide the copy of passport, visa and residence card (residence book or temporary residence certificate issued by the ward-level police authority where the applicant is living). The applicant must directly show the original document if the application dossier is not notarized.

Kann ein staatlicher Bedienster mit einem privaten Unternehmen in Vietnam einen Arbeitsvertrag abschließen?

Um diese Frage zu beantworten, muss zunächst geklärt werden zu welchem Zweck und über welche Position der staatliche Bedienstete einen Arbeitsvertrag mit dem privaten Unternehmen eingeht. Darüber hinaus kommt es auch darauf an, ob dieser staatliche Bedienstete ein Beamter oder ein Angestellter im öffentlichen Dienst ist, da das vietnamesische Recht zwischen diesen Beiden Begriffen unterscheidet.

In dem Gesetz über Funktionäre und Beamte Nr. 22/2008/QH12 heisst es: Beamte sind vietnamesische Bürger, die eingestellt und ernannt sind nach Rang, Posten oder Titel in den Vertretungen der Kommunistischen Partei Vietnams, den staatlichen und sozio-politischen Einheiten auf Zentral-, Provinz- und Distriktlevel; in den Vertretungen und Einheiten des Volksmilitärs, anders als Bedienstete, Berufsmilitärspersonal und Vertreidigungsarbeiter; in den Büros und Einheiten der Volkspolizei, die keine Offiziere oder Berufsoffiziere sind; und in den führenden und leitenden Apparaten der staatlichen nicht-betrieblichen Einheiten der Kommunistischen Partei Vietnams, in den staatlichen und sozio-politischen Organisationen (weiter unten zusammenfassend staatliche nicht-betrieblichen Einheiten genannt), erfasst in den Lohnlisten und bezahlt aus dem staatlichen Haushalt, wobei Beamte in den führenden und leitenden Apparaten der der staatlichen nicht-betrieblichen Einheiten aus dem Gehaltsfond dieser Einheiten entsprechend des Gesetzes bezahlt werden.

In dem Gesetz über Angestellte im öffentlichen Dienst Nr. 58/2010/QH12 heisst es: Angestellte im öffentlichen Dienstes sind vietnamesische Bürger die nach Arbeitsposition eingestellt werden und die in staatlichen nicht-betrieblichen Einheiten unter einem Arbeitsvertrag arbeiten und aus dem Gehaltsfond der staatlichen nicht-betrieblichen Einheiten bezahlt werden im Einklang mit dem Gesetz.

Grundsätzlich verbieten die Gesetze Vietnams den staatlichen Bediensteten nicht die Aufnahme einer Tätigkeit außerhalb der Arbeitszeiten zur Erzielung zusätzlichen legalen Einkommens unter der Voraussetzung dass der Bedienstete bestimmte Bedingungen erfüllt und verbotene Handlungen  unterlässt. Es gibt keine Regelung, die ausdrücklich verbietet, dass staatlichen Bedienstete durch private Unternehmen eingestellt werden.

Das Gesetz über Angestellte im öffentlichen Dienst Nr. 58/2010/QH12 erlaubt den Angestellten im öffentlichen Dienst die Aufnahme einer beruflichen Tätigkeit außerhalb der vertragsgemäßen Arbeitszeit, die Vertragsunterzeichnung mit Agenturen, Organizationen und Einheiten, die nicht ihrem arbeitgegebenden staatlichen nicht-betrieblichen Einheitenangehören, solange diese nicht gesetzlich verboten sind und unter der Bedingung, dass die Angestellten im öffentlichen Dienst die ihnen zugeteilten Aufgaben erfüllen und die Zustimmung ihres Behördenleiters erhalten. 

Nach dem Gesetz gegen Korruption Nr. 55/2005/QH11 dürfen staatliche Bedienstete, Angestellte im  öffentlichen Dienst und Funktionäre unter anderem nicht:

i.                    am Management und an der Verwaltung von privaten Unternehmen, Gesellschaften mit beschränkter Haftung, Joint-Stock-Unternehmen, Partnerchaftsunternehmen, Kooperationen, privaten Krankenhäusern, privaten Schulen und/oder privaten wissenschaftlichen Forschungszentren teilnehmen

ii.                  als Berater für andere inländische und inländische Unternehmen, Organizationen oder Privatpersonen in Angelegenheiten mit Bezug zu Staatsgeheimnissen, Betriebsgeheimnissen oder Angelegenheiten, die unter ihrer Zuständigkeit fallen oder an deren Regegelung sie beteilig waren, tätig werden

Aus diesem Grund muss geklärt werden, ob der staatliche Bedienstete nach seiner Einstellung am Management und an der Verwaltung teilnehmen wird.  Außerdem kommt es darauf an, ob der Branche, in der das  Unternehmens tätig ist unter die Zuständigkeit des staatlichen Bediensteten fällt oder nicht.

Erst nachdem die oben genannten Kriterien ermittelt sind, können wir feststellen, ob ein staatlicher Bediensteter einen Arbeitsvertrag mit einem privaten Unternehmen eingehen darf oder nicht.

Beschränkung ausländischer Investionen im Real Estate Business

Nach dem derzeitig geltenden Gesetz über den Immobilienmarkt gibt es grundsätzlich kein Limit für den Anteil der ausländischen Beteiligung an einem Immobilienunternehmen. Auch zu 100% mit ausländischem Kapital finanzierten Unternehmen dürfen sich im Immobilienbusiness engagieren, das gilt jedoch nicht für Immobilien-Werbedienstleistungen.  Um sich in diesem Bereich zu betätigen, muss der ausländische Investor ein Joint Venture mit einem vietnamesischen Unternehmen gründen entsprechend der sich aus Vietnams WTO-Verpflichtungen ergebenden Beschränkungen.

In seinen WTO-Verpflichtungen hat Vietnam keine Versprechungen hinsichtlich der Beteiligungen ausländischer Investitionen im Immobilienbusiness abgegeben. Demnach hat Vietnam die Entscheidungsfreiheit darüber, ob es ausländisches Kapital auf diesen Markt zulässt oder nicht und im Grunde finden die nationalen Gesetze und Regelungen auf ausländische Investionen Anwendung.

Ausländische Investionen in den Immobilienmarkt sind gewissen Bedingungen unterworfen mit Blick auf die Gewährung von Dienstleistungen. Gemäß des Gesetzes über den Immobilienmarkt, welches  am 1.1.2007 in Kraft trat, darf ein ausländischer Investor ein Unternehmen in Vietnam zur Durchführung folgender Immobiliengeschäfte gründen:

i.                    Investitionen in Gebäudebau, Bauarbeiten zu Verkaufs- oder Vermietungszwecken;

ii.                  Investitionen zur Entwicklung der Infrastuktur auf gepachtetem Land, um dieses weiterzuverpachten und

iii.                Anbieten von Immobiliendienstleistungen (einschließlich Maklerdienstleistungen, Immobilienbewertung, Immobilientransaktionsservices, Beratungsdienstleistungen, Versteigerung von Immobilien, Werbung und Verwaltung)

Jedoch ist es dem mit ausländischem Kapital finanzierten Unternehmen verboten, bestimmte Dienstleistungen durchzuführen, wie etwa der Kauf oder die Errichtung von Immobilien zwecks Verkauf, Ratenverkauf, Vermietung, sowie die Anmietung von Immobilien und Bauarbeiten zur Untermietung an andere.

Grundsätzlich begünstigt die vietnamesische Regierung nur ausländische Investionen in der Form von Immobilienentwicklungsprojekten sowie in Form von Immobiliendienstleistern statt der Investionen in alle Bereiche des Immobiliengeschäfts. 

Zur Zeit überarbeitet Vietnam das Gesetz über den Immobilienmarkt um günstige Bedingungen für Geschäftsaktivitäten in diesem Bereich zu schaffen, insbesondere, um damit mehr ausländsiche Investionen in den Immobilienmarkt anzulocken. Folglich ist damit zu rechnen, dass einige Beschränkungen der ausländischen Investionen aufgehoben werden.

Can a state official sign a labor contract with the private entity in Vietnam?

In order to answer this question, it is important to clarify for what purpose and which position he/she signs labor contract with the private entities. Moreover, it also needs to check whether that state official is a civil servant or a public employee since the law of Vietnam classifies those 02 terms:

Under the Law on Cadres and Civil Servant No. 22/2008/QH12: Civil servants are Vietnamese citizens who are recruited and appointed to ranks, posts or titles in agencies of the Communist Party of Vietnam, the State, socio-political organizations at the central, provincial and district levels; in People’s Army agencies and units, other than officers, professional military personnel and defense workers; in People’s Police offices and units other than officers and professional non-commissioned officers, and in the leading and managerial apparatuses of public non-business units of the Communist Party of Vietnam, the State and socio-political organizations (below collectively referred to as public non-business units), included in the payrolls and salaried from the state budget; for civil servants in the leading and managerial apparatuses of public non-business units, they are salaried from the salary funds of these units according to law.

Regulations on Foreign investment in E-commerce in Vietnam

E-commerce service is a new concept in Vietnam and under WTO’s commitment, Vietnam does also not clearly have any commitment about opening the E-commerce services to the foreign investor and in this regard, Vietnam is free to decide on whether to open its’ market or not and has the sole discretion on promulgating the regulation on management and licensing of E-commerce.

We understand from the applicable regulations on E-commerce of Vietnam that E-commerce activity means conducting part or the whole of the process of commercial activity by electronic means connected to the Internet, mobile telecommunications network or other open networks. Therefore, the E-commerce activities are quietly large, mixed with other telecommunication, internet or even computer and related services and need to be classified into detailed activities.

Database collection and requirement on local server maintaining in Vietnam

The law of Vietnam respects and protects the right to privacy so the collection, use and publication of information and data from the users of internet services must have the consent of such users.

In general, the web search portal service providers like foreign investor have their Term of Use and Privacy Policy which publish the scope of data collection and use, the methods of data protection and the responsibility of the service provider. Any user must accept those Term of Use and Privacy Policy before using the service. The Term of Use and Privacy Policy are the binding agreements between the service provider and the user.

Establishment of the association of foreign businesses in Vietnam

Under the Decree No. 08/1998/ND-CP of the Government dated 22 January 1998 promulgating the Regulations on the establishment of the association of foreign businesses in Vietnam (“Decree No. 08”), the Government of Vietnam accordingly allows the foreign investment permitted to perform the commercial, investment and service activities in Vietnam to establish the associations or clubs of foreign businesses in Vietnam (“Association”) provided that the foreign businesses satisfy with the requirements and agree with the content in this Decree No. 08.

How do Vietnam laws define about force majeur?

Under the applicable laws of Vietnam, only Civil Code 2005 has the definition of force majeur (i.e. Article 161 of Civil Code 2005).

Article 161 of Civil Code 2005 regulate about Time periods excluded from limitation periods for initiating legal action for civil cases and from limitation periods for requesting resolution of civil cases.

Under this article, the time period during which one of the following events occurs shall be excluded from limitation periods for initiating legal action for civil cases and from limitation periods for requesting resolution of civil cases:

Regulations on work permits in Vietnam: What you need to know!

1.                 Written approval of the President of the provincial people’s committee (PC) to the employer for the employment of foreign employees:

Under the applicable regulations, the employer has to report only to the Department of Labor, War Invalid and Social Affairs (DOLISA) about the labor use situation in the next year. That is only informing procedure, not really affected to the employer.

However, the new requirement on written approval of the PC president may be a huge obstacle and more paperwork for the employer who wants to recruit foreign employee. This can be considered as a new “baby license”.

Obligation for payment of severance allowance

Under the regime of unemployment insurance, the employer is not subject to this regime if the employer has less than 10 employees. Many employers who has never contributed to unemployment insurance regime for any of its’ employee question whether they still have to have to pay severance for its’ employees or not?

According to Article 48 of the Labor Code, the employer is responsible to pay a severance allowance to any employee who has regularly worked for a full twelve months or more and is a subject as specified under the Article 36 of Labor Code. The severance allowance shall be one half of one month’s wage for each year of employment.

Market access of the foreign investor into logistic services in Vietnam

Under the WTO accession commitment of Vietnam, there is no definition of logistic service and Vietnam committed to open the market access into the services auxiliary to all modes of transport which are classified by the CPC system of the United Nations.

In details, from January 2014, the foreign investor may joint venture with the Vietnamese company without any capital limitation or establish its’ wholly owned company in Vietnam to engage in the following services auxiliary to all modes of transport:

i.           Storage and warehouse services (CPC 742)

ii.        Freight transport agency services (CPC 748) including freight forwarding services.

Limitation of foreign investment in real estate business in Vietnam

Under the applicable law on real estate business, generally, there is no limitation on the percentage of foreign involvement in a company which engages in the real estate business.  The 100% foreign invested enterprise is entitled to engage in the real estate business except for real estate advertising services on which the foreign investor must create a joint venture with a Vietnamese advertising service provider pursuant to limitations under Vietnam's Commitments on WTO’s accession.

Under Vietnam's Commitments on WTO’s accession, Vietnam did not commit to take any specific action relating the participation of foreign investment in real estate business. Therefore, it means that Vietnam has to authority to decide to open or not the access of foreign investment into this market and basically, the domestic laws or regulations will be applied to foreign investment.

How to dismiss a foreign employee when he/she has been back his/her home country

1.                  Right to terminate labor contract of the employer:

For the case of a foreign employee who has not come to work for months and is now back to his/her home country, the employer is allowed to terminate his/her labor contract since under the labor law of Vietnam, if the employee abandons his/her job at his own will for an aggregate number of five days in a month or an aggregate number of 20 days in a year with plausible reasons (According to Article 126.3 of Labor Code 2012), the employer shall be entitled to dismiss that employee. Actually such employee has abandoned his job for more than 20 working days as from the signing date of his contract so legally speaking, the employer can dismiss such employee.

Regulations on foreign owned enterprises purchasing goods from Vietnam.

The Ministry of Industry and Trade issued Circular No. 08/2013/TT-BCT on April 22nd 2013 providing detailed regulations on sale and purchase of goods and activities directly related to the purchase and sale of goods by enterprise with the foreign invested enterprises (the FIEs) in Vietnam (Circular No. 08). This Circular No. 08 took effect from June 07th 2013 and replaced Circular No. 09/2007/TT-BTM previously issued in July 2007 (Circular No. 09) on the same subject.

The Circular No. 08 mainly focused on retail business and raised some M&A issues when buying shares in a Vietnamese retail company, especially the definition of the foreign invested enterprises (the FIEs).

The conditions for the foreigner to be issued a work permit

Under the new legal regulations on work permit in Vietnam, the conditions for the foreigner to be issued a work permit are the following:

1. Have full legal capacity for civil acts as prescribed by law.

2. Be in good health as necessary to satisfy the job requirements.

3. Be a manager, executive director, expert or technician.

The conditions for the foreigner to purchase and own residential houses in Vietnam

According to Resolution No. 19/2008/NQ-QH12 of the National Assembly dated 03 June 2008 (“No. 19/2008/NQ-QH12”), one of subject permitted to purchase and own residential houses in Vietnam is the foreign individual who is hired by an enterprise currently operating in Vietnam in accordance with the law on enterprises (including both domestic enterprises and enterprises with foreign owned capital) to hold a managerial position in such enterprise.