How an International Organization Could Set up
Branch Office in Vietnam?
An unfamiliar business substance or an unfamiliar dealer is
permitted to set up a
branch office in Vietnam to direct business exercises.
A branch in Vietnam is distinct from a representative office in
that it is granted the authority to carry out business activities and generate
revenue. While a foreign-owned company established in Vietnam exists
independently, a branch is dependent on the foreign business entity that
established the branch. The establishment of a branch office in Vietnam will be
approved by the Vietnam Department of Industry and Trade, and the Vietnam
Ministry of Planning and Investment will be the state agency in charge of coordinating
company formation in Vietnam.
In particular, the term "Branch" refers to a subsidiary
unit of a foreign business entity that has been established in accordance with
Vietnamese law to be able to enter into contracts and engage in the purchase
and sale of goods and other commercial activities in accordance with its
license for establishment granted in accordance with Vietnamese law and any
international treaty to which the Socialist Republic of Vietnam belongs.
The establishment license must be applied for and obtained by the
Branch; and have a seal with the branch's name on it.
1. Rights of the Branch in Vietnam
-To rent offices and to lease or purchase the equipment and
facilities necessary for the operation of the branch.
-To recruit Vietnamese and foreign employees to work for the
branch in accordance with the law of Vietnam.
-To enter into contracts in Vietnam in accordance with the
activities stated in the license for establishment of such branch and in
accordance with the Vietnam Law.
-To open Vietnamese dong and foreign currency accounts at banks
which are licensed to operate in Vietnam.
-To remit profits abroad in accordance with the law of Vietnam.
-To have a seal bearing the name of the branch in accordance with
the law of Vietnam.
-To conduct activities being the purchase and sale of goods and
other commercial activities consistent with its license for establishment in
accordance with the law of Vietnam and any international treaty to which the
Socialist Republic of Vietnam is a member.
2. Requested Conditions to Set Up a Branch Office in Vietnam
An unfamiliar organization which has viability business exercises
will be permitted to open branch office in Vietnam in the event that this
organization has genuine interest to open the market in Vietnam and meet a few
circumstances as underneath:
-Being a trader
recognized by the law of the country where it has been lawfully established or
made its business registration;
-Having been operating
for at least five years after its lawful establishment or business
registration.
3. Issuance the Certificate of Branch:
The Department of Industry and Trade Department will carry out the
issuance of the Certificate of Branch once the foreign company satisfies all
Vietnam legal requirements.
The responsible period will be inside 20 working-days after the
date of presenting the full substantial records as mentioned.
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