SBLAW gives some information about Establishment of a Representative Office in Vietnam as follows:
1. Establishment of a representative office in Vietnam
Under Decree No.72/2006/ND-CP dated July 25th, 2006 of Vietnam Government detailing Trade Law’s regulations on representative offices, branches of foreign company in Vietnam, a foreign company can establish the representative office in Vietnam to:
– Exercise the function of a liaison office;
– Facilitate the formulation of co-operative projects of the foreign business entity in Vietnam;
– Research market to promote opportunities for purchase and sale of goods and for provision and sale of commercial services of the foreign business entity that it represents;
– Monitor and activate performance of contracts of the foreign business entity that its represents which have been signed with Vietnamese parties or which relate to Vietnamese markets;
– Conduct other activities permitted by the law of Vietnam.
It is noted that under Vietnam Law, a representative office is not permitted to offer service(s) for profit-making purposes on its behalf in Vietnam.
2. Specific conditions for establishment of representative office of foreign company
Under Vietnam Law on Trade, in order to setup a representative office in Vietnam, a foreign company should satisfy following conditions:
– Being legally recognized by the law of the country where such business entity was established or has business registration;
– Having operated for at least one year as from the date on which it was legally established or obtained business registration in the country of such business entity.
It should be noted that a license of a representative office shall have a duration of five years, but in the case where foreign law stipulates the duration of the business registration certificate of the foreign business entity, the duration may not exceed the residual term of such business registration certificate. The License can be renewed.
