Circular No. 22-KTĐN/PC guiding the implementation of the Regulation on the establishment and operation of permanent representative offices of foreign economic organizations in the Socialist Republic of Vietnam

CIRCULAR

GUIDELINES FOR IMPLEMENTING THE REGULATIONS ON THE ESTABLISHMENT AND OPERATIONS OF PERMANENT REPRESENTATIVE OFFICES OF FOREIGN ECONOMIC ORGANIZATIONS IN THE SOCIALIST REPUBLIC OF VIETNAM ISSUED BY THE FOREIGN ECONOMIC AFFAIRS MINISTRY NO. 22-KTĐN/PC ON OCTOBER 25, 1989

Pursuant to Decree No. 199-HĐBT dated December 28, 1988 of the Council of Ministers promulgating the Regulations on the establishment and operations of Permanent Representative Offices of foreign economic organizations in the Socialist Republic of Vietnam, the Foreign Economic Affairs Ministry hereby provides specific guidelines for certain points in the Regulations for uniform implementation as follows:

1. All foreign economic organizations and individuals (hereinafter referred to as foreign parties) having relations with Vietnamese economic and commercial organizations in the fields of import-export trade, production, investment, banking, finance, transportation, scientific and technological cooperation, tourism, and services in accordance with Article 1 of the Regulations, who wish to be permitted to establish a Permanent Representative Office in the Socialist Republic of Vietnam must comply with the provisions of the Regulations and this Circular.

2. Foreign parties requesting permission to establish a Representative Office in the Socialist Republic of Vietnam must submit an application form according to the unified model issued by the Vietnam Chamber of Commerce and Industry and must strictly adhere to the provisions stipulated in Articles 4 and 5 of the Regulations. The application for establishing a representative office may be directly submitted to the Foreign Economic Affairs Ministry or sent through the Vietnam Chamber of Commerce and Industry to the Foreign Economic Affairs Ministry for consideration and issuance of the permit.

3. Foreign parties may request the Vietnam Chamber of Commerce and Industry to guide them in completing necessary procedures, preparing applications, and/or perfecting the application dossier for establishing a Representative Office in the Socialist Republic of Vietnam.

4. In accordance with the regulations of the Council of Ministers of the Socialist Republic of Vietnam, the Foreign Economic Affairs Ministry of the Socialist Republic of Vietnam is the competent authority to examine and issue permits for foreign parties to establish Representative Offices in the Socialist Republic of Vietnam. The Foreign Economic Affairs Ministry will seek opinions from relevant agencies (Ministries, People's Committees of provinces, cities, and centrally-administered municipalities) regarding each field before deciding to issue a permit to foreign parties.

5. The Foreign Economic Affairs Ministry of the Socialist Republic of Vietnam will notify foreign parties of the results of their application for establishing a representative office and transfer the permit issued by the Foreign Economic Affairs Ministry to the foreign party if the application was directly submitted to the Foreign Economic Affairs Ministry, or if the Vietnam Chamber of Commerce and Industry is authorized to do so if the application was submitted through the Vietnam Chamber of Commerce and Industry.

6. Upon receiving the permit to establish a Representative Office issued by the Foreign Economic Affairs Ministry, foreign parties must pay a fee as prescribed in the fee schedule.

This fee is an official charge levied by the Foreign Economic Affairs Ministry for granting permission to establish a representative office, excluding costs related to guidance and assistance provided at the request of foreign parties in preparing the application and/or perfecting the application dossier for establishing a Representative Office in Vietnam as stipulated in Point 3 of this Circular.

7. Within thirty days from the date of receipt of the permit to establish a Representative Office, foreign parties must register with the Foreign Economic Affairs Ministry the establishment of the Representative Office. Foreign parties may also directly register with the Foreign Economic Affairs Ministry upon receipt of the permit, or may register through the Vietnam Chamber of Commerce and Industry with the Foreign Economic Affairs Ministry. Beyond this period, foreign parties must inform the Foreign Economic Affairs Ministry of the reasons for not registering.

8. The permit to establish a Representative Office issued by the Foreign Economic Affairs Ministry to foreign parties clearly specifies the purpose, scope, and conditions of operation of the Representative Office. The Representative Office may only undertake tasks within the purposes and scope specified in the permit.

Any violation of the provisions of the permit by the Representative Office will be handled according to Point c, Article 4 of the Regulations.

9. Vietnamese citizens employed by foreign parties at the Representative Office in accordance with Article 11 of the Regulations, if performing representative functions, must be approved by the People's Committee of the province, city, or centrally-administered municipality where the Representative Office is located. Citizens not performing representative functions are not permitted to transact business as representatives. Any violation of this provision will be handled by the Foreign Economic Affairs Ministry or recommended for handling under current laws.

10. In addition to the provisions of Article 14 of the Regulations, Representative Offices must annually report in writing to the Foreign Economic Affairs Ministry of the Socialist Republic of Vietnam on matters related to their business activities.

11. All Representative Offices established prior to the issuance of the Regulations accompanying Decree No. 199-HĐBT dated December 28, 1988 must reapply according to this Circular.

After sixty days from the date of issuance of this Circular, if the aforementioned Representative Offices have not reapplied, the Foreign Economic Affairs Ministry will decide to suspend their operations in Vietnam until the reapplication process is completed.