Updated regulations on foreign representative offices in VN (Part 2)
VGP - Decree 07/2016/ND-CP, dated January 25, 2016 by the Government (Decree 07) replacing Decree 72/2006/ND-CP (Decree 72) detailing the Representative Office and branches of the foreign traders in Viet Nam.
Question: What are the new regulations on authority, time, and information disclosure on establishment of foreign representative offices and branches in Viet Nam?
Answer: Decree 07 has outstanding points as follows:
Authority to issue representative office establishment license
The competent authority for licensing representative office operations is defined as follows:
For the proposed representative office to be based outside industrial zones, export processing zones, economic zones, high-tech zones, the authority to issue, re-issue, amend, extend, and revoke the License for Establishing the Representative Offices and Terminating their operations belongs to the Department of Industry and Trade of the centralized provinces and cities;
For the proposed representative office to be based within industrial parks, export processing zones, economic zones, high-tech zone, the authority belongs to any Management Board of the industrial zones, export processing zones, zones economic, high-tech one.
Cutting time
Decree 07 reduced the time to obtain an operation license for any representative office or branch from 15 days to seven days within the scope of the specialized normative legal documents and beyond any opinion from the agency under the Ministry in charge of specified management.
In case of any consultation with the agency under the Ministry of in charge of specialized management, the establishment of representative offices, branches may extend a minimum of 13 working days.
Disclosure of the information on representative offices and branches
Decree 72 requires that after 45 days from the date of license issuance, the date of license issuance, the representative office or branch shall publish three consecutive issues releasing some basic information of such representative office or branch in the print or online newspaper that is allowed for issuance in Viet Nam and concurrently notify the Department of Trade or the Ministry of Industry and Trade of the opening of the registered office. However, Decree 07 has repealed the post-licensing procedures to reduce the administrative burden for representative offices, branches. Instead, this Decree requires the Licensing Authority shall publish the relevant information on its electronic information portal within 15 days of its issuing, re-issuing, amending, extending, and revoking the License for Establishing any RO, branch.
