Decree No. 08/1998/ND-CP Issuing the Regulation on the Establishment of Foreign Business Associations in Vietnam

DECREE

Issuing Regulations on the Establishment of Foreign Business Associations

 in Vietnam

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

To facilitate the operation of foreign businesses in trade and investment in Vietnam;

Upon the proposal of the Minister of Planning and Investment, the Minister of Trade, and the Chairman of the Committee for Non-Governmental Organizations,

DECREE

Article 1. These Regulations on the establishment of foreign business associations in Vietnam are hereby promulgated together with this Decree.

Article 2. This Decree takes effect fifteen days from the date of signature.

In accordance with their assigned state management functions, the Minister of Planning and Investment, the Minister of Trade, and the Chairman of the Committee for Non-Governmental Organizations shall be responsible for guiding and supervising the implementation of these Regulations.

Article 3. The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree.

REGULATIONS
ESTABLISHMENT OF FOREIGN BUSINESS ASSOCIATIONS IN VIETNAM
(Issued together with Decree No. 8/1998/NĐ-CP dated January 22, 1998 of the Government)

Article 1. Foreign businesses that have been permitted to operate in trade, investment, and services in Vietnam, if they meet the conditions and accept the provisions of these Regulations, may establish foreign business associations or clubs in Vietnam (hereinafter referred to as the Association).

Article 2. The Association is established voluntarily and is a non-governmental, non-political, and non-profit organization.

Foreign businesses mentioned in Article 1 include: Representative offices of foreign economic, financial, insurance, legal advisory organizations ..., branches of foreign companies, branches of foreign commercial banks, and foreign parties participating in joint ventures with foreign capital in Vietnam, established and operating under the laws of the Socialist Republic of Vietnam. Businesses appoint representatives to participate in the activities of the Association.

Article 3. Conditions for establishing the Association:

1. There must be at least 30 business representatives of the same nationality, or originating from a regional international organization.

2. Each community of foreign businesses of the same nationality or originating from a regional international organization operating in Vietnam is only allowed to establish one Association in Vietnam, with its main office and registration in a province or centrally governed city of Vietnam.

Article 4. Activities of the Association:

1. Organizing internal information exchanges;

2. Organizing activities to explore trade and investment opportunities;

3. Participating in trade and investment promotion activities organized by the Vietnam Chamber of Commerce and Industry and other Vietnamese agencies;

4. Organizing meetings between members of the Association and Vietnamese state management agencies regarding trade, investment, and service issues;

5. The leadership of the Association has the right to represent the Association in proposing recommendations and measures to Vietnamese state management agencies, with the aim of protecting the legitimate rights and interests of member businesses and contributing to creating a healthy business environment.

6. Being permitted to publish and circulate within the Association newsletters about trade and investment activities in accordance with the Press Law of the Socialist Republic of Vietnam.

Article 5. Applications for the establishment of the Association are submitted to the provincial or centrally governed city People's Committee where the Association wishes to be established. The application includes:

1. A request for the establishment of the Association (one copy in Vietnamese, one copy in a commonly used foreign language);

2. The operational charter of the Association;

3. An introduction letter from the Vietnam Chamber of Commerce and Industry;

4. Documentation regarding the Association's place of work;

5. Background of the Association's leadership;

6. List of business representatives applying to join the Association (names, passport numbers, temporary residence registration locations in Vietnam).

Article 6. Within thirty days from the date of receipt of complete and valid applications, the provincial or centrally governed city People's Committee is responsible for responding (granting or not granting permission) to foreign businesses requesting to establish the Association. The permit for the establishment of the Association is valid for five years from the date of issuance and will be reviewed for extension every three years.

Three months before the expiration of the permit, if wishing to continue operations, the Association must submit an application for extension to the agency that issued the establishment permit. The agency receiving the application must complete the procedures and respond to the applicant within thirty days.

Article 7. During the course of operations, if there are changes different from those recorded in the permit, the Association must submit a request to the provincial or centrally governed city People's Committee that issued the establishment permit for adjustment and supplementation of the permit, and can only operate according to the new content when the supplementary permit acceptance document is received. The agency receiving the application must examine and respond to the applicant within thirty days.

Article 8. Within thirty days from the date of issuance of the permit or acceptance of the supplementary permit, the Association must publish in central and local newspapers the following contents:

- Name of the Association (Vietnamese, commonly used foreign language);

- Establishment permit (number, date, and issuing authority);

- Representative person (Chairman or General Secretary of the Association);

- Location of the main office (house number, street ...);

- Bank account number;

- Telephone, Fax.

Article 9. Rights and responsibilities of the Association after establishment:

1. Opening a transaction account at a commercial bank. This account is only used to serve administrative activities of the Association as stipulated in Article 4 of these Regulations.

2. Renting premises, housing, and hiring employees in accordance with Vietnamese law;

3. Having a separate seal (if necessary). The process of making seals follows the regulations of the Ministry of Home Affairs of Vietnam;

4. Importing office equipment and working tools in accordance with Vietnamese laws applicable to representative offices of foreign economic organizations in Vietnam;

5. The Association is responsible for reporting its activities every six months, annually, and upon urgent requests to the provincial or centrally governed city People's Committee that issued the permit.

Article 10. The People's Committees of provinces and centrally governed cities where foreign business associations have registered shall be responsible for supervising compliance with Vietnamese laws and regulations set forth in this Charter by such foreign business associations. After issuing the permit, the provincial or centrally governed city People's Committee shall send a copy of the permit to the Ministry of Trade, the Ministry of Planning and Investment, and the Committee on Non-Governmental Organizations, and shall report periodically every six months and annually on the activities of foreign business associations within their jurisdiction to these three agencies.

Article 11.

1. A foreign business association shall cease operations in the following cases:

- Expiration of the term specified in the permit without renewal;

- Serious violation of Vietnamese laws resulting in revocation of the permit before the expiration date;

- Voluntary dissolution of the association.

2. Within thirty days from the date of cessation of operations, the association must complete the return of leased premises, housing, and working equipment, and settle any outstanding debts (if any) with the Vietnamese side.

Article 12.

1. If the activities of the association are not in accordance with the issued permit or violate the provisions of this Charter, depending on the severity of the violation, they will be subject to penalties under the Administrative Violation Handling Ordinance, temporary suspension of operations, or revocation of the permit. The Chairman of the provincial or centrally governed city People's Committee shall issue a Decision to impose penalties of suspension of operations and revocation of the permit.

2. Members of the association and employees working in the association's office who violate Vietnamese laws shall be dealt with according to Vietnamese laws.