ADDING FOREIGN SUBJECTS TO OWN RESIDENT HOUSES IN VIETNAM

The Draft Law on House (amended) has currently taken lots of attentions of not only investors but residents. One of the significant amendments is provision on house ownership of foreign organizations, individuals.

According to Articles 161, 162, 163 of Draft Law, there are 3 cases that the foreigners may own resident houses in Vietnam as following:

1. Foreign organizations, individuals invest the construct resident houses according to projects for sale, lease, hire-purchase sale.
2. Foreign owned enterprises, branches, representative offices of the enterprises without business in real estate, foreign investment funds and branches of foreign banks permitted to operate in Vietnam are entitled to buy, donate, inherit the commercial houses in projects of resident housesdevelopment, new urban areas, tourism real estate.
3. Foreign individuals who are allowed to enter Vietnam, not belong to incentive rights, diplomatic or consular immunity.

However, subjects at section 2 and 3 are eligible to own houses in maximum term of 70 years, from the issuance date and can extend according to laws at that moment. They are not allowed to buy and own social houses, just buy and own commercial houses. They are also eligible to own unlimited number of commercial houses in commercial resident house development projects, new urban area or tourism real estate. These new provisions will become important points for real estate market in Vietnam. Especially, the foreign individuals are allowed to enter Vietnam, entitled to buy and own resident houses in Vietnam. It’s expected to make a big change in real estate in Vietnam when the new Law on House (amended) is adopted. ANT Lawyers,your lawyers in Vietnam.

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REDUCTION OF TAX RATES FOR IMPORT FROM JAPAN AND ASEAN COUNTRIES

Implementation of Agreement on ASEAN Japan Comprehension Economic Partnership (AJCEP) and Vietnam Japan Comprehension Economic Partnership (VJCEP), Ministry of Finance issued Circular No. 02 20/2012/TT-BTC and Circular No. 21/2012/TT-BTC dated 15.02.2012 giving instructions on the new special preferencial import tariff.

Under the VJCEP and AJCEP Tariff, most of food items such as meat products and by-products, fish fillets, butter, milk, rice, chemicals, plastics, fabrics and textile materials, iron and steel will be reduced import tax according to the schedule committed; notably some items will have import tax reduce to 0%.

Many electronics will be applied new tariffs such as: telecommunication camera taxes will be reduced from 5% to 2.5% in 2014, some digital cameras will even be enjoied a tax rate of 0% after two years. The appliances such as kitchen utensils, sink, bathtub will also decrease from 19% in 2012 to 14% in 2014.

Notably, agricultural tractors taxe rates will reduce from 10% to 0%; motor vehicles used to transport goods, which the maximum weight of not over 05 tons from 80% to 20%; vehicles used to transport goods with a total weight of 05-10 tons from 60% to 20%.

As commitment in the AJCEP Agreement, goods on the list of common goods (accounting for 88.6% of total tariff lines) are forced to reduce tariffs to 0% in 2025, while during the process, a total of 62.2% tariff lines will be lowered to 0% in 2018.

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CASES THAT FOREIGNERS DO NOT HAVE TO APPLY FOR WORK PERMITS

Pursuant to Decree No. 11/2016/ND-CP of the Government that will take effect April 1st 2016, the below cases of foreigner will not have to apply for work permit in Vietnam:

• As capital contributing members or the owner of limited liability company.
• As member of the Managing Board of the joint stock company.
• As Head of the representative office, project of international organizations, non-governmental organizations in Vietnam.
• Entry into Vietnam for less than 03 months to carry out the service offering.
• Entry into Vietnam for less than 03 months to handle the incidents, technical situations and complicated technology arising that influence or threaten to production and business that Vietnam expert and foreign experts that currently in Vietnam cannot handle.
• As foreign lawyers that are licensed to practice law in Vietnam under the provisions of the Law on Lawyers.
• Under the provisions of the international treaties in which the Socialist Republic of Vietnam is a member.
• As pupils and students studying in Vietnam and working in Vietnam but the employer must notify 07 days with state authorities on the provincial labor.
• Moving within the enterprises in the range of 11 service sectors in the service commitments of Vietnam to the World Trade Organization, including: business, communication, construction, distribution, education, environment, finance, health, tourism, culture and transport;
• Entry into Vietnam to provide advisory services and technical expertise or perform other tasks to serve the research, construction, appraisal, monitoring, evaluation, management and implementation of programs and projects funded with official development assistance (ODA) as prescribed or agreed in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;
• Granted the work permit on information and press in Vietnam by the Vietnam Ministry of Foreign Affairs in accordance with law;
• Sent to Vietnam by agencies and foreign organizations to teach and research in the international school under the jurisdiction of the foreign diplomatic representative agencies or international organizations in Vietnam or the Ministry of Education and Training certificated for teaching and researching in the educational and training institutions in Vietnam;
• Volunteers certified by the foreign diplomatic representative agencies or international organizations in Vietnam
• Entry into Vietnam working in the positions of professional, manager, executive or technical employees with working duration of less than 30 days and no more than 90 cumulative days in 01 years;
• Entry into Vietnam to implement international agreements that agencies and organizations at the central and province have signed as in accordance with law;
• Pupils and students studying in abroad schools and training institutions that have internship agreements in the agencies, organizations and enterprises in Vietnam;
• Relatives of members of foreign representatives in Vietnam working after licensed by the Ministry of Foreign Affairs, except the case where international treaties that the Socialist Republic of Vietnam is a member that have other regulations;
• Have official passport to work for state agencies, political organizations and political – social organizations;
• Other cases decided by the Prime Minister on the proposal of the Ministry of Labour – Invalids and Social Affairs.

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US INVESTORS SET UP BUSINESS IN HO CHI MINH CITY

United States (US) businesses are expecting to pour investment capital and set up business in Ho Chi Minh City(HCMC) in the near future, when Vietnam and the US are members of the Trans-Pacific Partnership agreement (TPP).

Statistics from the Department of Planning and Investment of HCMC showed that in 2015, the city has attracted 26 investment projects from the US with a total capital of approximately 135.4 million USD. In the first 2 months of 2016, the US has invested an additional of 4 new projects with total capitals of 1.56 million USD. It is forecasted that after TPP takes effect, the number will increase exponentially.

The industrial zones in HCMC are attracting the most investment within three years. Currently there are more than 300 projects worth more than 600 million USD. With the launching of TPP, the city hopes to receive a new wave of investment from US businesses. The efforts to reform the city’s administration procedures are creating favorable environment for US businesses to increases investment in HCMC.

According to the representative of the US Consulate in HCMC, diplomatic relation between Vietnam and the US is getting better, creating conditions and opportunities for US investors to come and set up business in HCMC. As recognized by the American Chamber of Commerce in Vietnam (Amcharm), businesses from the 2 countries feel very excited after exploring the investment environments of each other.

According to the Amcham’s representative, the promotion of the free trade agreements and especially TPP is bringing Vietnam and the US to the center of trade cooperation. It is reflected positively in 2015 with growth rate reached 45 billion USD in terms of sales, increased by 20% compared with 36 billion USD in 2013. Currently, Vietnam is also the leading countries in ASEAN on trade balance with the US when Vietnam accounting for 25% of export turnover of the area and this figure will continue to increase in 2020.

According to representatives of the Department of Planning – Investment in Ho Chi Minh City, Vietnam American investors to increase mainly in the field of real estate, banking, services, processing technology. This is a positive signal for bringing high-income jobs for local workers. The goal of the 2020 Vietnam brought exports to the US increased by 300 billion dollars.

According to representatives of the Department of Planning and Investment of Ho Chi Minh City, investment from the US to Vietnam increased mainly in the field of real estate, banking, services, processing technology. This is a positive signal because it brings high-income jobs for local workers. The goal of Vietnam is that till 2020, export turnover to the US will increase by 300 billion USD.

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