Legal & Regulatory

Open for Business: Vietnam Clarifies Economic Needs Testing for Foreign Retailers

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HANOI – At a March 28th consultation and dialogue with businesses located in Vietnam, discussions focused on economic needs testing (ENT) criteria for the establishment of retail outlets.

The meeting involved representatives from the Vietnam government and foreign invested enterprises, and was seen as a new move by the government to further open the country’s retail market.

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Vietnam Applies “Single Door” Mechanism to Customs Process

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HANOI – Recently, Vietnam’s Ministry of Industry and Trade (MIT) has announced its intention to implement a national “single door” customs mechanism. The MIT believes that the implementation of the new online system will “facilitate smooth information flow, avoiding repeated information, reducing paper-work volume, promoting goods flow, saving time and cost[s] for [the] business community, and improving economic efficiency for society.”

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Vietnam Issues New Work Permit Regulations for Foreign Employees

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HANOI – The Vietnamese government has recently released a new Circular on the procedures a foreign worker must adhere to in order to be considered for a work permit.  Circular 03/2014 tightens the regulations for foreign workers seeking to come to Vietnam.

The Circular will take effect on March 10, 2014 and is intended to help guide the implementation of the proposed Government Decree 102/2013.

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Vietnamese Regulations on Certificates of Free Sale

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HANOI – Regulations covering the Certificate of Free Sale (CFS) were devised under Decision No. 10/2010/QD-TTg promulgated on February 2, 2010.  The laws went into effect on May 1, 2010 and required businesses to provide CFS that are issued by exporting countries or territories that verify that the product is manufactured and freely sold in the country where it is manufactured.

The CFS requirement affects traders, state management agencies, manufacturers, organizations and individuals in Vietnam. A CFS is valid for two years from the date of issue and must contain the following details:

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Proper Procedure for VAT Filing in Vietnam

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As Vietnam’s dynamic economy continues to evolve, its tax regime is also continuing to develop to fit the new needs of the country and those doing business within it. While Vietnam is attempting to simplify its Value-Added Tax (VAT) system, properly filing your VAT and ensuring that you are entitled to, and receive, such things as exemptions and refunds, remains a confusing process. In this article, we highlight the key components of Vietnam’s VAT system and outline the proper procedure for filing.

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Vietnam Issues Circular 219 on VAT

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HANOI – The Vietnamese government has recently released Circular 219 and contains guidance on the implementation of the new VAT Decree 209. The Circular is effective retroactively from January 1, 2014, and is a replacement for Circular 06/2012.

Key changes brought about by Circular 219

With regards to zero rate exported services, the Circular has removed the “permanent establishment” (PE) condition from the regulations.  The PE condition stated that in order to qualify for zero rate exported services, the overseas customer could not have a permanent establishment in Vietnam.

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Vietnam Issues Revised Law to Improve Local Investment Climate

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HANOI – Vietnam’s Ministry of Planning and Investment has recently announced that it has completed a draft of the country’s amended Investment Law.  The goal of the amendment is to continue the process of improving the country’s investment climate.

The amended law is expected to be approved by the National Assembly at the end of 2014.

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Vietnam’s Visa and Work Permit Procedures

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HANOI – The number of foreign laborers coming to Vietnam has steadily increased in recent years, surging to over 88,000 workers at the end of 2012. The large majority of foreign workers that come to Vietnam are employees of foreign contractors, working for, or establishing, foreign direct investment (FDI) projects.

A Vietnamese entity is permitted to recruit foreign workers in order to work as managers, executive directors and experts where local hires are not yet able to meet production and business requirements. Unlike in certain other Asian countries, Vietnamese representative offices are also able to hire staff directly.

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Vietnam’s VAT Law for the Financial Sector

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HANOI – Vietnam’s VAT law touches on a number of goods and services. Please see our latest magazine on the country’s VAT law, entitled A Guide to Understanding Vietnam’s VAT, in order to receive a general overview of what VAT is and how to properly ensure that you follow all regulations involved.

In this article, we examine the VAT implications for a number of goods and services listed under the Financial category in Vietnam’s VAT law.

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Vietnam’s VAT Law for Imports/Exports

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HANOI - Vietnam’s VAT law touches on a number of goods and services. Please see our latest magazine on the country’s VAT law, entitled A Guide to Understanding Vietnam’s VAT, in order to receive a general overview of what VAT is and how to properly ensure that you follow all regulations involved.

In this article, we examine the VAT implications for a number of goods and services listed under the Import/Export category in Vietnam’s VAT law.

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