How long does it take for Foreign Business Associations in Vietnam to complete the return of their headquarters when terminating operations?

Compare with the provisions in Clause 2, Article 11 of the Regulations on Establishment of Foreign Business Associations in Vietnam issued issued with Decree 08/1998/ND-CP are:

Within 30 days from the date of termination of operations, the Foreign Business Association in Vietnam must complete the return of the rented headquarters, housing, working facilities and pay debts (if any) to the Vietnamese side.

In addition, the Association of Foreign Businesses in Vietnam terminates its operations in the following cases

– The term stated in the license has expired without being renewed;

– Serious violations of Vietnamese law have the license revoked ahead of time;

– The Foreign Business Association in Vietnam voluntarily dissolves.

How long is the license to establish a Foreign Business Association in Vietnam valid?

Pursuant to Article 6 of the Regulations on the establishment of Foreign Business Associations in Vietnam promulgated together with Decree 08/1998/ND-CP then:

Within 30 days from the date of receipt With all valid documents, the People’s Committee of the province or centrally run city is responsible for answering (granting or not granting a license) to foreign businesses applying to establish an Association. The Association’s establishment license is valid for 5 years from the date of issue and can be considered for renewal for no more than 3 years at a time.

Three months before the license expires, if it wants to continue operating, the Association must make an application for renewal to the Agency that issued the establishment license. The agency receiving the application must complete the procedures and respond to the applicant within no more than 30 days.

Thus, the License to establish a Foreign Business Association in Vietnam is valid for 5 years from the date of issue and can be considered for extension for no more than 3 years each time.

Note: 03 (Three) months before the expiration of the License to establish a Foreign Business Association in Vietnam, if it wants to continue operating, the Foreign Business Association in Vietnam must apply for an extension to the Agency that issued the establishment license.

The agency receiving the application must complete the procedures and respond to the applicant within no more than 30 days.

Who has the right to represent the Association of Foreign Businesses in Vietnam to propose recommendations and measures to the State management agencies of Vietnam?

Pursuant to Article 4 of the Regulations on the establishment of Foreign Business Associations in Vietnam promulgated together with Decree 08/1998/ND-CP on the content of activities of Foreign Business Associations in Vietnam Vietnam:

Activities of the Association:

1. Organize internal information activities;

2. Organize activities, explore trade and investment opportunities;

3. Participate in trade and investment promotion activities organized by the Vietnam Chamber of Commerce and Industry and other Vietnamese agencies;

4. Organize meetings between members of the Association and Vietnamese State Management Agencies on trade, investment and service issues;

5. The Association’s Board of Directors has the right to represent the Association to propose recommendations and measures to Vietnamese State management agencies, aiming to protect the legal rights of member businesses and contribute to creating a healthy business environment.

6. Permitted to publish and circulate within the Association newsletters on trade and investment activities according to the provisions of the Publishing Law of the Socialist Republic of Vietnam.

Thus, the Association’s Board of Directors has the right to represent the Foreign Business Association in Vietnam to propose recommendations and measures to Vietnamese State management agencies with the purpose of protecting the legal rights of member businesses and contributing to creating a healthy business environment.

In addition, regarding the conditions for establishing a Foreign Business Association in Vietnam:

(i) Have at least 30 business representatives of the same nationality, or originating from a regional international organization.

(ii) Each foreign business community with the same nationality or originating from a regional international organization operating in Vietnam is only allowed to establish one Association in Vietnam, headquartered and registered in a province or centrally run city of Vietnam.