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Establishment restrictions

VIETNAM

Since 2008

Chapter Business mobility  |  Sub-chapter Other restrictive practices related to business mobility
Decree No. 102/2013/ND-CP
An intra-corporate transferee (ICT) should have been employed by the foreign service provider for at least one year before it can enter Vietnam.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since August 2011

Chapter Business mobility  |  Sub-chapter Other restrictive practices related to business mobility
Decree No. 21/2001/ND-CP
Expatriate employees working for over three months generally require a work permit in order to work in Vietnam. Work permits are issued to foreigners who are managers or professional-level staff directly managing businesses in Vietnam and with no criminal record. Work permits last for a maximum of 36 months after which they may be renewed.

In August 2011, for Contractual services suppliers (CSS), the government implemented new regulation on the recruitment and work permit extension of foreign personnel. Under the new regime, firms seeking to hire a foreign worker must post the vacancy in at least one national and one local newspaper 30 days prior to the intended hiring date.
Coverage Computer and related services
Establishment restrictions

VIETNAM

Since 2011

Chapter Business mobility  |  Sub-chapter Other restrictive practices related to business mobility
Decree No. 46/2011/ND-CP
For contractual services suppliers (CSS), firms seeking to hire a foreign worker must post the vacancy in at least one national and one local newspaper 30 days prior to the intended hiring date.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since 2008

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Decree No. 102/2013/ND-CP
For contract service supplier (CSS) and independent service supplier (ISS) there are no labour market tests. However, in September 2013, the government has promulgated the Decree No. 102/2013/ND-CP which states that employers wishing to recruit foreign service suppliers have to submit an annual “foreign labour demand report”. In this report, employers need to state their demand for work for which no qualified Vietnamese workers can be found. This report needs to be submitted to the provincial People’s Committee, which will have to issue a written approval for each position.

The categories of foreign workers which are eligible to work in Vietnam, and for which a work permit can be obtained, has been expanded. Apart from managers, executive officers, and experts, technicians can now also apply for work permits.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since 2008

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Decree 34/2008/ND-CP ("Decree 34")

Decree No. 21/2001/ND-CP
For intra-corporate transferees (ICT), there is a quota that states that at least three of the managers, executives and specialists, but no more than 80% of them, may be foreigners. This means that firms that employ foreign managers, executives and specialists must demonstrate that at least 20% of these professions are Vietnamese nationals. A work permit should be obtained first.
Coverage Horizontal
Sources
  • https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/80845/87538/F960887977/VNM80845%20Eng.pdf
  • Foreign-licensed professionals may practice in Vietnam by obtaining a practicing certificate issued by the MOF if the foreign license was issued by a recognized accountancy organization. Applicants must have resided in Vietnam for at least one year; they must pass examinations on Vietnamese laws in economics, finance and accounting. An SSE is not allowed.
Establishment restrictions

VIETNAM


Chapter Competition policy  |  Sub-chapter Competition
State owned enterprise
Vietnam Post & Telecommunications Group (VNPT Group), the incumbent, is a state owned enterprise.
Coverage Telecommunication sector
Establishment restrictions

VIETNAM

Since 2007

Chapter Competition policy  |  Sub-chapter Competition
Partial deregulation
The telecommunication market is only partially deregulated since 2007. This is an ongoing process and not yet finalised.
Coverage Telecommunication sector
Establishment restrictions

VIETNAM


Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Copyright inadequately enforced
While there are laws in place for intellectual property rights (IPR) violations, Vietnam has yet to draft the implementing guidelines to the 2009 amendments to the 1999 Criminal Code, which would allow law enforcement agencies and courts to levy deterrent criminal penalties against IPR violators.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since 2005

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Intellectual Property Law 50/2005
There are no explicit copyright exceptions such as fair use/fair dealing clauses. The only exception to copyright infringement is temporary copyright.
Nevertheless, Article 25 from the Intellectual Property Law sets out the case of use of published works where permission and payment of royalties and/or remunerations are not required. It requires that the user indicate the authors' names, sources and origins of the works and should not affect the normal utilization of such works.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since 2005

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Intellectual Property Law 50/2005
Patent applications by non-Vietnamese residents must be filed via recognised Vietnamese patent agents.
Coverage Horizontal
Establishment restrictions

VIETNAM

Since 2013

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Decree No. 181/2013/ND-CP on Cross-Border Supply of Advertising Services
Decree 181 requires foreign websites to work through local agents in order to place advertisements on-line for Vietnamese advertisers.
Coverage Online advertisement
Establishment restrictions

VIETNAM

Since July 2013

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Decree No. 72/2013/ND-CP of July 15, 2013, on the Management, Provision and Use of Internet Services and Online Information
Vietnam has licensing/registration requirements in place for online social networks, general information websites, mobile telcoms network-based services and certain online games services. These contemplate that companies must be established in Vietnam in order to fulfil the licensing and registration requirements. As a result, it is unclear whether an offshore entity must create an entity in Vietnam before providing social network services or general information to users in Vietnam.
Coverage Providers of online social networks, general information websites, mobile telcoms network-based services and certain online games services
Establishment restrictions

VIETNAM

Since 2013

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Art. 18 (3)(b) of the Law on Telecommunications

Law on Investment

Law on Enterprises
In addition to the basic licenses required by telecommunications legislation, foreign investors who intend to provide telecommunications networks and services must first obtain an investment certificate issued by the licensing authorities.

If the project is not covered by a plan approved by the Prime Minister, the licensing authority must seek opinions on the project from the Ministry of Planning and Investment, the Ministry of Information and Communications and any other relevant organization.

They must then request that the Prime Minister renders a decision on the investment policy, adjust the national plan or open the investment market further to foreign investment.

The Law on Investment, the Law on Enterprises (November 2005) and their implementing regulations provide rules and criteria for any foreign invested enterprise to receive an investment certificate.
Coverage Telecommunication sector
Sources
Establishment restrictions

VIETNAM

Since April 2011

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Arts. 23 (1) (e) and 23 (2) (d) of the Decree No.25/2011/ND-CP
Foreign investors are required to show net economic benefits. The application documents for licence in the telecom sector must include a business plan for the first five years from the date of licensing and include the following contents:
- market analysis and forecast,
- business scheme,
- revenue,
- total expenditure for investment,
- expenditure for each year;
- the form of investment, scheme to raise capital, etc.
Coverage Telecommunication sector
Establishment restrictions

VIETNAM

Since 2008

Chapter Investment  |  Sub-chapter Restrictions on board of directors and managers
Nationality requirement
At least three of the managers, executives and specialists, but no more than 80% of them, may be foreigners.
Coverage Horizontal
Source
  • World Bank
    Services Trade Restrictions Index (STRI): http://iresearch.worldbank.org/servicetrade/default.htm#