The Government issued Decree No. 07/2016 / ND-CP of February 25 effective March 10, replacing Decree No. 72/2006 / ND-CP providing detailed regulations on representative offices and branches of foreign traders in Vietnam.
These changes notably under Decree No. 07 include:
- scope allows operation of representative offices shrunk over. For example, one of the types of activities allowed and most versatile wide under Decree 72 are "operational tests and encourages the implementation of the contract signed by the head office with the parties was the Vietnam or related to the Vietnam market. " It was removed. In many cases, this type of activity was the main reason for existence and representative offices, and the significance of the removal should be considered.
- A foreign traders are allowed to set up offices representatives / branch line with the commitments in international treaties to which Vietnam is a member. The international treaty that purpose, it is not specified. If traders do not come from foreign countries with international treaties with Vietnam, the establishment of representative offices / branches must be approved by a government agency having jurisdiction.
- Decree 72 does not love for a senior representative must reside in Vietnam. Decree 07 also does not require a specific head of the representative office / branch must reside permanently in Vietnam. However, it pointed out that in cases where the head is not present in Vietnam for more than 30 days, they must be authorized in writing to another person perform his role during the period of absence; on the other hand, foreign traders must appoint a new head of the representative office / branch.
- Decree 72 sets forth the procedures for mandatory declaration should be completed several within 45 days from the date of issue license opening representative offices. Decree 07 does not continue to recognize these terms.
Guidelines from the Ministry of Trade and Industry is expected to Decree 07 issued in good time and hopefully will be more clearly defined for the changes mentioned above.
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