In what cases will a foreign advertising enterprise not be granted a License to establish a representative office in Vietnam?

Regulations on representative offices of foreign advertising enterprises in Vietnam

Pursuant to Article 41 of the Law on Advertising 2012 (guided by Chapter 5 of Decree 181/2013/ND-CP) on representative offices of foreign advertising enterprises in Vietnam:

“1. Foreign advertising enterprises are allowed to establish representative offices in Vietnam.

2. A representative office can operate when it has a license from the Provincial People’s Committee where the foreign enterprise requests to establish a representative office.

3. Representative offices are only allowed to promote advertising, not directly provide advertising services.

4. The Government regulates the authority, documents, order and procedures for licensing the establishment of representative offices of foreign advertising enterprises in Vietnam.”

Documents, procedures, and authority to grant a License to establish a representative office of a foreign advertising enterprise in Vietnam

Pursuant to Article 20 of Decree 181/2013/ND-CP (amended by Clause 1, Article 3, Decree 11/2019/ND-CP) detailing the implementation of a number of articles of the advertising law regarding dossiers, procedures, and authority to issue Representative Office Establishment Licenses:

“1. Dossier to request a License to establish a Representative Office includes:

a) Application for a License to establish a representative office signed by an authorized representative of the foreign advertising enterprise according to the form prescribed by the Ministry of Culture, Sports and Tourism;

b) A copy of the business registration or equivalent documents of the foreign enterprise, certified by the competent authority where the enterprise was established or registered;

c) Audited financial statements or other documents of equivalent value proving the existence and operations of the foreign advertising enterprise in the most recent fiscal year;

d) The documents specified in Point b and Point c of this Clause must be translated into Vietnamese and authenticated by Vietnamese diplomatic missions and consulates abroad and consular legalized according to the provisions of Vietnamese law.

2. Order and procedures for granting a License to establish a Representative Office:

a) Foreign advertising enterprises submit directly or by post 01 set of application documents for a License to establish a Representative Office to the Provincial People’s Committee where the Representative Office is located;

b) Within 10 (ten) days from the date of receipt of complete and valid documents, the Provincial People’s Committee shall consider and issue a License to establish a Representative Office and send a copy of that license to the Ministry of Culture, Sports and Tourism;

c) In case the dossier is not valid, within 03 (three) working days from the date of receiving the dossier, the Provincial People’s Committee shall send a written request to the foreign advertising enterprise to supplement and complete the dossier;

d) Within 45 (forty-five) days from the date of issuance of the License, the Representative Office must operate and notify the Provincial People’s Committee in writing of the time of commencement of operation, location of the headquarters, number of Vietnamese people, number of foreigners working at the Representative Office, and the content of the Representative Office’s activities.”

In what cases will a foreign advertising enterprise not be granted a License to establish a Representative Office?

Pursuant to Article 21 of Decree 181/2013/ND-CP detailing the implementation of a number of articles of the advertising law regarding cases of not granting a License to establish a Representative Office:

“1. There is evidence that the establishment of a Representative Office is harmful to independence, national sovereignty, security, defense, historical traditions, culture, ethics, and fine customs and traditions of Vietnam.

2. Failure to supplement sufficient documents as required by the licensing authority.

3. Other cases as prescribed by law.”

Accordingly, foreign advertising businesses will not be granted a License to establish a Representative Office if:

– The establishment of a Representative Office is harmful to independence, national sovereignty, security, national defense, historical traditions, culture, ethics, and fine customs and traditions of Vietnam.

– Failure to supplement sufficient documents as requested by competent authorities.

How much is the fee for granting a License to establish a representative office of a foreign advertising enterprise in Vietnam?

Pursuant to Article 25 of Decree 181/2013/ND-CP (guided by Circular 165/2016/TT-BTC) detailing the implementation of a number of articles of the advertising law regarding Fees for issuance, re-issuance, amendment and supplementation of Representative Office Establishment Licenses:

“1. When foreign advertising enterprises request to issue, re-issue, amend or supplement a License to become a Representative Office in Vietnam, they must pay fees in accordance with the provisions of law.

2. The Ministry of Finance specifically regulates the fee levels, management and use of fees specified in Clause 1 of this Article.”

Pursuant to Article 4 of the Circular 165/2016/TT-BTC on Fee collection rates:

“1. Fee rates for granting licenses to establish representative offices of foreign advertising enterprises in Vietnam are as follows:

a) New issue: 3,000,000 VND/License.

b) Re-issue, amendment, supplementation: 1,500,000 VND/License.

2. Fees for licensing to establish representative offices of foreign advertising enterprises in Vietnam are collected in Vietnam Dong.”

Accordingly, foreign advertising businesses that want to be granted a new License to establish a Representative Office in Vietnam will have to pay a fee of 3,000,000 VND/License.