Regulations on foreign organizations in Vietnam

by DungTran

Regulations on foreign organizations in Vietnam. What is a foreign organization in Vietnam? Nationality of a foreign organization. Let us learn about this topic with LSX Law firm below:

Legal ground

Enterprise Law 2020

Decree No. 12/2012/ND-CP

Definition of a foreign organization

Foreign organization means an organization established under foreign or international law.

According to the provisions of Clause 32, Article 4 of the Enterprise Law 2020; a foreign organization is an organization; established in a foreign country under foreign law.

Accordingly, when an organization operates as a foreign organization in one or more other countries; it will enjoy the civil legal status prescribed by the host country’s law for foreign organizations’ foreign authority in the territory of that country. This regulation covers the legal rights and obligations in different areas that the host country may grant to foreign organizations. For example, rights and obligations in the field of business; rights and obligations in the fields of culture, information, and sports; rights and obligations in financial investment or investment in the infrastructure system in the host country… These rights and obligations are usually in technical legal documents such as commercial law. Commercial law, investment law, banking law, land law, securities law, insurance law, environmental law, competition law, and monopoly control… 

Nationality of a foreign organization

The most basic sign to identify a foreign organization is the issue of nationality. However, not all foreign organizations identified in nationality criteria because foreign organizations are entirely stateless; or whose nationality cannot determined; but that is not the case. They are not foreign organizations. For example, typical for this case are international organizations such as the United Nations; World Bank (W.B.), International Monetary Fund (IME)…

Criteria for determining the nationality of the organization

Unlike natural persons, determining the nationality of an organization in general and a foreign organization is a complex issue between countries. There have been four different views on the criteria for determining the nationality of an organization, including foreign organizations:

– Firstly, the nationality of an organization relies on the place where its main transaction office is located. This view is popular in most continental European countries such as France, Italy, Switzerland…;

– Secondly, the nationality of the organization must be determined according to the place where the legal entity is incorporated or registered. This view is widely in countries following the common law (common law) tradition such as the U.K., MI…;French case law uses it as a standard to determine the nationality of companies doing business in France.

Example: Cass, 12.5.1931, S. 1932,11, 53; the nationality of the organization must be determined based on the nationality of its members or those who have control over the organization.

In Vietnamese law, although no law stipulates the principle of determining the nationality of an organization; legislators tend to accept the principle of determining the nationality of an organization according to the criteria where the organization is recognized. 

How to determine the nationality of the organization

In essence, the concept of “foreign organization” reflects the legal relationship between an organization and a particular country. The legal status of this relationship is that the organization has no national relationship with that country. Due to the above difference in the concept of countries about the criteria for determining the nationality of an organization, if you want to know if an organization is a foreign organization or not, you need to must be associated with a specific country and must derive from that country’s concept of organizational nationality to determine, for example, if you want to determine if a company doing business in Vietnam is a foreign organization or not is essential to determine whether this company has a nationality relationship with the State of Vietnam. Determine the nationality of the organization, not from the point of view of other countries laws on nationality. 

Types of foreign organizations in Vietnam

According to the provisions of Decree 75/2014/ND-CP dated July 28 of the Government, foreign organizations in Vietnam include:

Firstly, Diplomatic missions, foreign consular offices, representative agencies of international organizations under the United Nations, regional and sub-regional organizations;

Secondly, Resident offices of foreign news, press, radio, and television agencies;

Thirdly, International organizations, intergovernmental organizations, organizations under foreign governments;

Moreover, Foreign non-governmental organizations that are granted operation licenses by competent state agencies under the Government’s Decree No. 12/2012/ND-CP dated November 12, 2012, on registration and manage the activities of foreign non-governmental organizations in Vietnam;

In addition, Representative offices operating unprofitable in Vietnam of economic, commercial, financial, banking, insurance, scientific-technical, cultural, educational, medical, legal consulting organizations. 

Vietnam’s regulations on foreign organizations employing workers

The above organizations that want to use Vietnamese workers must follow the following order:

First, Send a written request to recruit Vietnamese workers to the Vietnamese employee management organization.

Secondly, within 15 working days from receiving the written request, the competent organization is responsible for selecting and introducing workers to the foreign organization or individual.

Thirdly, Suppose the time mentioned above expires. In that case, if the competent organization fails to choose, the foreign organization or individual shall directly recruit laborers.

Finally, Within 7 days after signing the labor contract, the foreign organization or individual must notify the Vietnamese labor-management organization in writing. 

Hope this article is helpful for you!

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Related questions

What is organization?

Organization is often understood as a collection of people working together for common purposes in a stable structural form.

What is nationality?

Nationality is the legal relationship between an individual and a sovereign state. If a person has the nationality of a country then that person is said to be a citizen of that country. Nationality grants the state legal authority over the individual and allows the individual to receive the protection of the country of which he or she is a national. Specific rights and obligations vary by country

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