Question: We are a subsidiary of one of the largest utilities and infrastructure development companies in Malaysia that is now embarking on business expansion in Vietnam.
We have just entered into a contract with a Vietnamese party to act as EPCC contractor for a large scale infrastructure works in HCMC. This will be our first venture in Vietnam.
We require various business and legal consultancy services for this project. As a start we will need the service to obtain Foreign Contractor License to undertake the works.
We would be pleased if you could provide us your quotation for the above service (FCL application) and also to advise on the procedures and documents required for the application.
Answer: This is with regards to your email dated 3rd December 2014, from which your company (hereinafter referred to as “Client”) requested us to advice on obtaining foreign contractor permit and registration of project office in Vietnam. Therefore, we are grateful to set our legal services proposal for your review and consideration as follows:
1. OUR PRELIMINARY COMMENTS
1.1. General introduction to obtainment of foreign contractor permit
In order to be granted Foreign Contractor Permits, foreign contractors must satisfy the following conditions and requirements:
For bidding packages subject to compulsory application of the provisions of the Vietnamese bidding legislation:
– Having won biddings or having been selected for contracting.
– Having signed contracts.
For bidding packages not subject to compulsory application of the provisions of the Vietnamese bidding legislation:
– Having won biddings or having been selected for contracting.
– Having signed contracts.
– Having full capacity suitable to contracted works according to Vietnamese law provisions.
In all cases of being contracted (as a result of winning bids or being selected as contractors), foreign contractors shall have to enter into partnership with Vietnamese contractors or employ Vietnamese subcontractors (except for cases permitted by the Prime Minister or provided for by Vietnamese laws).
1.2. Dossiers of application for Contractor Permits:
To be considered for grant of Contractor Permits in Vietnam, foreign contractors must send directly or indirectly their registration dossiers to competent agencies. A dossier of application for Contractor Permit comprises:
– An application for Contractor Permit (made according to the form guided by the Construction Ministry).
– A copy of the document on the bidding result or the decision on selection of the contractor or the lawful contract.
– Copies of the establishment license and the company’s charter (or the business registration certificate, for organizations; the consultancy practice license, for individuals) and the practice certificate granted by the country of which the foreign contractor bears the nationality.
– The report on operation experiences related to contracted works and the financial audit report for the latest 3 years (for the cases mentioned in Clause 2, Article 4 of the Regulation).
– The partnership contract with a Vietnamese contractor or the written commitment to employ Vietnamese subcontractors to perform the contracted works (already included in the bid dossier or tender dossier).
– The lawful authorization letter, for persons other than the contractor’s representative at law.
– Applications for Contractor Permits must be made in Vietnamese. Other foreign papers and documents must be consular legalized (except otherwise provided for by Vietnamese laws or international agreements which Vietnam has signed or acceded to). Papers and documents in foreign languages must be translated into Vietnamese and the translations must be notarized or authenticated according to Vietnamese laws.
2.SCOPE OF WORKS
With regards to obtaining foreign contractor permit in Ho Chi Minh City, our scope of work shall be as follows:
2.1.Preparation of the application documents:
– Notifying application documents required in accordance with Vietnamese law;
– Drafting application documents required for submission purpose;
– Liaising with Client to discuss the draft application documents;
– Amending the application documents based on your comments;
– Obtaining preliminary comments from the licensing authority on the draft application documents;
– Finalizing the application documents following comments from the licensing authority; and
– Translating the final version of the application documents into Vietnamese for
2.2.Licensing procedures:
– Submitting the application dossier to the licensing authority on your behalf;
– Monitoring and following up with the relevant authorities on the approval process;
– Keeping you updated on the developments and additional requirements, if any; and
– Assisting you in obtaining the contractor permit.
2.3.Registration for project office
Post-licensing procedures: Upon registration of project office, we shall assist Client to carry out immediate administrative procedures.
3.Our services include:
– Obtaining the seal sample for the project office;
– Obtaining the for the project office.
4.The roadmap for obtaining foreign contractor permit can be described in following steps as follows:
4.1.Preparing the application dossier: We shall collect necessary information and documents from you. Upon receipt of necessary information and documents from you, we shall translate documents from English into Vietnamese and prepare the application dossier under the standard forms. The initial drafted application dossier shall be sent to you for your comments. Then, after updating the application dossier based on your comments, we shall obtain the preliminary comments from the competent authority and send the finalized application dossiers for you to sign and seal. We anticipate that this phase shall be completed within 10 working days.
4.2.Submission of application dossier: Within 02 working days from receipt of duly signed and sealed application dossier, we shall submit the application dossier to the competent authority.
4.3.Licensing Process: It shall take about 15 working days from submission of application dossier to the competent authority to grant the Foreign Contractor Permit and it shall take about 5 working days for registration of project office. In some case the process can be longer as it takes time to consult relevant competent authorities.
4.4.Post licensing: Within 13 working days we shall complete the post licensing procedures such as obtaining seal and tax code registration.
