Legal & Regulatory

HCMC Announces Changes to Business Registration

Jun. 30 – Beginning July 3, the process of obtaining a business registration in Ho Chi Minh City will be streamlined to become less time consuming and simpler. In the past, businesses had to apply for tax registration after registering their business with the Planning and Investment Department. The government is now accepting applications for […]

Vehicle Registration Fee Cut to Increase Sales

May 4 – The Vietnamese government cut automobile registration fee by half to 5 to 6 percent of the vehicle price until the end of the year to encourage more people to buy cars during the global economic crisis. Moreover, the value-added tax on a number of goods has also been cut in half including […]

Vietnam Cracking Down on Illegal Employment of Foreigners

Apr. 29 – Next month, Vietnam’s Ministry of Labor – Invalids and Social Affairs will arrange nationwide inspections of companies employing foreigners in an attempt to root out those working illegally. While it is legal for foreigners to work in Vietnam, it seems many companies are employing them without following the proper procedures and acquiring […]

Tax Cut Proposal for Animal Feed Imports Submitted

Apr. 1 – Vietnam's Ministry of Agriculture and Rural Development has submitted a recommendation that the government decrease import taxes on animal feed for farmers struggling with costs.

The ministry has requested in its proposal that taxes should be slashed by fifty percent on finished feed products to 4 percent in addition to taxes on dry beans to 5 percent.

Moreover, it has also been proposed that various feed ingredients should be given a zero rate. Vietnam currently imports 49 to 52 percent of its ingredients for animal feed.

Chinese Workers Head to Vietnam

Mar. 31 – Chinese workers have been flooding Vietnam to work on huge Chinese industrial projects in the electricity, cement, building and chemical sectors.

One construction project located in Quang Ninh province has as much as 2,000 Chinese workers while using cement and electricity coming from Chinese companies.

Tran Ngoc Hung, president of Vietnam Construction Association, told AFP: "Chinese contractors have won numerous key projects in the electricity, cement, building and chemical sectors… and sent thousands of workers and equipment to Vietnam."

Vietnam Attracts US$6 Billion Worth of FDI

Mar. 30 – For the first quarter of the year, Vietnam attracted US$6 billion in foreign direct investment; comprising of 60 percent of the figure for the same period last year, reports the Ministry of Planning and Investment.

So far, FDI mostly went to the province of Ba Ria-Vung Tau amounting to US$5 billion, mainly for entertainment and tourism projects. Ninety-three new foreign investment projects were licensed during the period with an investment capital of US$2.1 billion.

Foreign investors also registered an additional capital of US$3.84 billion in 34 existing projects, an increase of 34 percent in capital compared to the same period last year.

HCMC Named One of the Top Emerging Locations for Outsourcing

Feb. 11 – A global service survey has named HCM City as one of the world’s top ten emerging locations for outsourcing in 2008.

The top 50 Emerging Global Outsourcing Cities survey was conducted by Tholons, a strategic advisory firm for global outsourcing and research.

Ho Chi Minh City was ranked at fourth place in terms of application development and maintenance, product development and testing.

The city's biggest firms for outsourcing include FPT Software, IBM, Luxoft and Vietnam Software Outsourcing which hire most of their employees from the HCM City National University and the University of Technical Education.

Vietnam’s Labor Official Predicts 300,000 to Lose Jobs in 2009

Jan. 6 – An official from the Ministry of Labor, Invalids and Social Affairs (MoLISA) predicts that the slowing Vietnamese economy could lead to job losses amounting to 300,000 jobs, or 0.65 percent of the country's labor force.

The head of Employment Division under MoLISA, Nguyen Dai Dong, said some 300,000 people might be affected by the economic slowdown.

The hardest hit will be the industrial and services sectors, which already provide about 9 million jobs while the more than 35 million working as agricultural workers should expect reduced working hours.

Vietnam, U.K. in Talks for Legal Assistance Treaty

Nov. 27 – Vietnam and the U.K. are in now talks for a mutual legal assistance treaty on civil and commercial matters in Hanoi from November 25 to 27.

The discussions will be based on a proposal submitted by the Justice Ministry of Vietnam. If the treaty is approved, it will call for a legal foundation for the improved protection the legitimate interest of agencies, organizations and citizens of both countries.

Vietnamese Prime Minister Rejects Korean Steel Project in Van Phong

Nov. 19 – Vietnam's Prime Minister Nguyen Tan Dung has denied the construction of a Korean steel mill by the Posco Group in Dam Mon in Van Phong bay, Khanh Hoa province.

The Prime Minister said the Posco steel mill would clash with the development of the approved Van Phong international container port, in addition to the project not passing the strict requirements for ecological environment protection.

According to Nahn Dan News, PM Dung said that priority should be given to the Van Phong entrepot project and environmental protection for ensuring sustainable development.

If implemented, the Posco