Anti-dumping Measures on Welding Materials from China, Thailand and Malaysia (AD15)

On January 21th, 2021, Trade Remedies Authority of Vietnam (Investigating Authority) received Dossier from a company which is the representative of the domestic manufacturing (Requesting Party) requesting for the application of the anti-dumping measures on some types of welding materials originating from People’s Republic of China, Kingdom of Thailand and Malaysia.

 

On February 01st, 2021, Investigating Authority confirmed that Dossier was complete, valid according to regulations of law on trade remedies. Within 45 days of the receipt of a complete, valid Dossier, the Investigating Authority shall examine the Dossier to submit to the Minister of Industry and Trade for consideration for conducting an investigation. Contents of Dossier examination include: (i) Determine qualification of the legal representative of the domestic manufacturing of organization, individual that submitted the Dossier according to regulation of Law on Foreign Trade Management; (ii) Determine evidence on the dumping of imported goods that caused or threatened to cause significant injury to a domestic manufacturing or significantly prevent the formation of a domestic manufacturing.

On March 18th, 2021, Ministry of Industry and Trade issued Decision no. 947/QD-BCT on conducting an investigation to apply anti-dumping measure on some types of welding materials with HS code 7217.10.10; 7217.30.19; 7217.90.10; 7229.20.00; 7229.90.20; 7229.90.99; 8311.10.10; 8311.10.90; 8311.30.91; 8311.30.99; 8311.90.00 originating from People’s Republic of China (China), Kingdom of Thailand (Thailand) and Malaysia (Goods under investigation) (code AD15).

According to Vietnam laws, after initiating an investigation, Ministry of Industry and Trade will send a Questionnaire to related parties to collect information for the purpose of analyzing, assessing the accusations, including: dumping activities of export enterprise of China, Thailand and Malaysia; (ii) damages of the industry whose Vietnam products; (iii) causation between dumping activities and damages of the industry whose domestic products.

 

If necessary, based on results of preliminary investigation, Ministry of Industry and Trade can apply temporary anti-dumping measure in order to prevent dumping activities which continue to cause material injury to domestic industry.

Ministry of Industry and Trade will conduct examining, verifying the information provided by related parties before finalizing official investigation conclusion of this case. At the same time, Ministry of Industry and Trade will also hold a public consultation in order for the related parties to directly communicate, provide information, give opinions about this case before making a final decision.

Ministry of Industry and Trade recommends that all organizations, individuals who are exporting, importing, distributing, conducting business, using goods under investigation should register as related parties and should provide Ministry of Industry and Trade the necessary information so that rights and interests are protected according to Vietnam laws.

Ministry of Industry and Trade can impose the retroactive of the anti-dumping duty on the imposed goods within 90 days before imposing temporary anti-dumping duty. Therefore, Ministry of Industry recommends that all organizations, individuals who are in the process of exporting, importing, distributing, conducting business, using goods under investigation should pay attention to the possibility of imposing temporary anti-dumping duty and the retroactive of the anti-dumping duty.

Our international trade and competition lawyers in Vietnam at ANT Lawyers will always follow the development from authorities to provide update to our clients.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

 

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Da Nang Hi-Tech Park – Investment Attraction in 2021

On February 5th, 2021, Da Nang High-Tech Park and Industrial Zones Authority granted the Investment Registration Certificate to a Japanese corporation to invest in the Research Center project, Development and Production with total investment capital of 35 million USD.

 

This is a project to carry out scientific research and technology development in the fields of science, engineering and technology for the next generation of robots, unmanned aircraft, Hydro energy equipment, Nano equipment, technology, artificial intelligence (AI), water purification systems, wireless power transmission systems and new material development. The project also researches and develops in the fields of information technology, medical equipment, prototype production (testing), and manufacture of unmanned devices, robots, and medical devices for product commercial purposes and technology after research and development.

From the beginning of 2021 up to now, Da Nang High-Tech Park and Industrial Zones Authority has attracted USD 145 million of foreign direct investment (FDI) capital, increasing the total registered FDI investment capital into the Da Nang hi-tech Park reached USD 536.1 million. Until now, Da Nang Hi-Tech Park has attracted 24 projects, including 12 domestic projects and 12 FDI projects.

In addition, on February 16th, 2021, the Prime Minister agreed to add an industrial zone supporting Da Nang high-tech park with an area of ​​58,531 hectares. This will help the Hi-Tech Park expand the area, helping investors to easily implement the project.

Besides, Da Nang city has a number of policies to attract investment in high-tech zones such as reducing company income tax, land rental, import tax, support to find suitable labor sources, etc. these are great advantage for investors to be able to do business during the investment process.

Currently, Da Nang is attracting investment for science and high-tech projects, so the investment by high-tech investors in Da Nang will be facilitated by the government to supporting investment procedures to set up company, manufacturing facility in Da Nang. With its efforts, Da Nang hopes that Da Nang Hi-Tech Park is expected to become a “Silicon Valley” in the near future.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

 

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How Pilot Program Using Mobile Money for Payment is Regulated?

With the development of the information technology industry, there is a trend to simplify the process and procedures for making transactions making it becomes easier, faster and more convenient for users. Hence mobile money has become a new trend in transferring money, making payment in many countries.

 

Pilot Program Using Mobile Money for Payment in Vietnam

To develop non-cash payments, increase access and use of financial services, especially in rural, mountainous, remote, border and island areas of Vietnam, as well as taking advantage of infrastructure, data, telecommunications networks, reducing social costs to develop, expanding non-cash payment channels on mobile devices, bringing convenience to users, on March 9, 2021, the Vietnam Prime Minister issued Decision No. 316/QD-TTg on approving the pilot implementation program of using telecommunications accounts to pay for goods and services with small value (Mobile – Money).

The pilot subjects are enterprises that have a license to provide electronic wallet payment intermediary services and a license to establish public mobile terrestrial telecommunications networks using radio frequency bands or the subsidiary is licensed by the parent company to establish a mobile public ground telecommunication network using radio frequency bands and allows the use of telecommunications infrastructure, networks and data.

Individual customers who register and use the Mobile-Money service must provide an Identification Card (ID)/ Citizen Identification/ Passport that coincides with the customer’s mobile subscriber number registration information and Identification and authentication piloted by enterprises in accordance with the Government’s regulations on mobile subscriber registration; and the number of mobile subscribers must have the period of activating and using continuously for at least three consecutive months up to the time of registering to open and use Mobile-Money service. Each customer is only allowed to open one Mobile-Money account at each pilot enterprise.

The pilot implementation is applied nationwide, in which the pilot enterprise must give priority to the pilot implementation of Mobile-Money service in rural, mountainous, remote areas, Vietnam’s borders and islands.

The pilot enterprise is only allowed to provide Mobile-Money service to transfer money and pay for legal goods and services in Vietnam in accordance with the current law to serve the needs of daily life; the pilot implementation of Mobile-Money service only applies to legal domestic transactions in accordance with Vietnamese law provisions in VND, not to make payment/ remittance for goods and services provided across borders.

The pilot implementation period is set to be two years from the time the first enterprise conducting the pilot is approved for pilot implementation of Mobile-Money service. Transaction limit must not exceed 10 million VND/month/Mobile-Money account for total transactions: withdrawal, money transfer and payment.

Financial and banking lawyers at ANT Lawyers, a law firm in Vietnam with offices in Hanoi, Ho Chi Minh City and Da Nang will always follow up with new developments in regulation and provide clients with update.

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Signs of possible corporate frauds to notice and avoid

Vietnam has signed many Free Trade Agreements with many countries and regions around the world, which makes international economic exchange easier. However, the expansion of international trade also makes many businesses at risk when they encounter fraudulent customers in their business.

 

According to the Ministry of Industry and Trade, in 2020, the Trade and Embassy of Vietnam in the a number of countries continuously received invitations to sell, buy goods and sign commercial transaction contracts which have signs of fraud and scams.

Despite many warnings and notices, but due to subjective psychology, high profits, limited foreign trade operations, lack of understanding of customers, difficulties due to epidemics, many businesses cannot directly meeting, checking goods,… using online transactions, which causes businesses to take advantage of fraudulent acts.

Some ways of commercial fraud activities such as: Unpaid delivery; Forging documents even bank papers to get goods; Set the person to get export documents; Using hackers to infiltrate the email addresses of two parties that are having transactions, track the progress of the negotiation, when the buyer prepares to transfer money to buy goods, hack the mailbox (or create an email account with the exact same address as the seller’s email) to send fraudulent account information. After the buyer transfers money to the fraudulent account, they will immediately withdraw the money and disappear; Using advantage of carelessness and unprofessionalism of domestic enterprises such as not asking a reputable inspection organization to check the goods before delivery, not verifying information about partner enterprises… to transfer goods with no value, not in accordance with the contract, or to notify the damaged or poor quality goods to pressure the price, deduct the debt or claim compensation …

Some signs of identifying fraudulent businesses which one should pay attention are: the price negotiation, the contract takes place easily, quickly, less bargaining, accepting high prices; Deposit to receive investment money; Do not provide or provide documents of many different legal entities; Opening L/C at a non-reputable bank in a third country; Business license is about to expire …

In order to avoid working with fraudulent partners, businesses need to improve their professional expertise, legal knowledge, and thoroughly understand their partners before making transactions, especially the new partner is dealing for the first time.

The current commodity prices could be updated through market information or on international commodity websites. Therefore, when there is a request for goods to be paid too high, or too low compared to the prices in the market, the enterprises need to pay close attention and carefully check their reliability.

It is also possible to reduce the risks through the professional service of local risks management in Vietnam for conducting of business due diligence, business license record checking, site visit survey, shareholders or directorship checking, criminal record certificate checking, business reputation verification, public reputation search, research for records of enterprises, research for the reputation of the company, …

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

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What are Forms of Arbitration Agreement under Vietnam Laws

Under Article 16 of Vietnam Law on Commercial Arbitration, forms of arbitration agreement resolving disputes are in written form.  In particular:

An arbitration agreement may be made in the form of an arbitral clause in a contract or in the form of a separate agreement.

 

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An arbitration agreement must be in writing. The following forms of agreement may also be regarded as written form:

1.Agreement made through communication between the parties by telegram, fax, telex, email or other forms provided for by law;

2.Agreement made through exchange of written information between the parties;

3.Agreement recorded in writing by a lawyer, notary public or competent institution at the request of the parties:

4.In their transactions, the parties make reference to a document such as a contract, document, company charter or other similar documents which contains an arbitration agreement;

5.Agreement made through exchange of petitions and self-defense statements which reflect the existence of an agreement proposed by a party and not denied by the other party.

In case multiple arbitration agreements are reached on the same dispute, the latest lawful agreement shall apply.

If the contents of an arbitration agreement are not clear or could be understood in more than one way, regulations of the Civil Code shall apply.

When there is a handover of rights and obligations under a transaction or contract which contains a lawful arbitration agreement, such agreement is still applicable to the transferee and the transferor, unless otherwise agreed by the parties concerned.

Multiple legal relationships to resolve the same case shall be combined if the parties agree to combine multiple legal relationships to resolve the same case, or the arbitration rules allow for combination of multiple legal relationships to resolve the same case.

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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Whom is Exempted from Work Permit Since 2021?

On December 30, 2020, the Government issued Decree No. 152/2020/ND-CP regulating foreign workers working in Vietnam and recruiting and managing Vietnamese employees to work for the foreign employers in Vietnam.

 

In which, foreign workers in Vietnam are not required to be granted work permits include:

The employee is the owner or capital contributor of a limited liability company with a capital contribution of at least 3 billion VND; Chairman of the Board of Directors or a member of the Board of Directors of a joint stock company with a capital contribution of at least 3 billion VND;

Intra-corporate transferees within 11 service sectors in Vietnam’s service commitment schedule with the World Trade Organization, including: business services, communication services, construction services, distribution services, educational services, environmental services, financial services, health services, tourism services, recreational and cultural services, and transport services;

The person responsible for establishing a commercial presence;

The employee enters Vietnam to work as manager, executive, expert or technical worker for a working time of less than 30 days and not more than 3 times a year;

The employee who enters Vietnam for a period of less than 03 months to offer services;

The employee enters Vietnam for a period of less than 03 months to handle complicated incidents, technical or technological situations that affect or risk affecting production and business that Vietnamese experts and the foreign experts currently in Vietnam cannot handle it;

Foreign lawyer who has been granted a law practice license in Vietnam in accordance with the Law on Lawyers; The employee is licensed by the Ministry of Foreign Affairs to operate information and press in Vietnam in accordance with the law; The person certified by the Ministry of Education and Training to enter Vietnam for teaching and researching;

The employee enters Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management and execution of programs and projects using official development assistance (ODA) in accordance with regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;

The employee is sent to Vietnam by competent foreign agency or organization to teach and research at international schools under the management of foreign diplomatic missions or the United Nations; establishment and organization established under the agreement which Vietnam has signed and acceded to;

The employee enters Vietnam to implement an international agreement to which a central or provincial authority is a signatory as per the law;

Person obtains an official passport to work for a regulatory agency, political organization, or socio-political organization;

Relatives of members of foreign representative missions in Vietnam;

In cases where the provisions of an international treaty to which the Socialist Republic of Vietnam is a signatory;

Head of representative office, project or is responsible for the activities of international organizations, foreign non-governmental organizations in Vietnam;

The employee is a volunteer;

The student studies at a foreign school or training institution which has a probation agreement with an agency, organization or enterprise in Vietnam; or a probationer or apprentice on a Vietnam sea-going ship;

The employee is a foreigner who marries a Vietnamese and lives in the territory of Vietnam.

This Decree takes effect from February 15, 2021.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529.

 

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How to Distinguish between Deposit and Advance Payment

In commercial transactions, it is very common for one party to give the other party an amount of money before the contract being performed. Should this amount be considered as deposit or advance payment?

 

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Deposit is one of security measures for the performance of contract obligations. According to regulation of Civil Code 2015, deposit is an act whereby one party (hereinafter referred to as the depositor) gives to other party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract.

Upon a contract being entered into or performed, any deposited property shall be returned to the depositor, or deducted from the amount of payment obligation. If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary. In case the depositary refuses to enter into or perform the contract, the depositary must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed.

It can be seen that the purpose of deposit is to ensure the entering into or performance of a contract. Due to the fact that its nature is a security measure for the performance of contract obligations, sanction is set in regulation of deposit in case one party refuses to perform the agreement.

In practice, the advance payment can be understood that the obligor pays the obligee a sum of money in advance and this amount is regarded as in-advance performance of a payment obligation. As the nature of the advance is not a security measure for the performance of contract obligations, there is no fine rising from the advance if one party refuses to perform the agreement. Further, when a contracting party gives to the other party a sum of money, which is not clearly identified by the parties as a deposit or an advance, such amount shall be considered an advance payment.

It is important to distinguish the difference between deposit and advance payment to avoid potential disputes in performance the contract or consult with dispute resolution lawyers in Vietnam at early stage of the dispute for proper actions.

 

 

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Receipt of Application for Anti-dumping Measures on Welding Materials From China, Thailand and Malaysia

On January 21th, 2021, Trade Remedies Authority of Vietnam (Investigating Authority) received Dossier from a company which is the representative of the domestic manufacturing (Requesting Party) requesting for the application of the anti-dumping measures on some types of welding materials originating from People’s Republic of China, Kingdom of Thailand and Malaysia.

On February 01st, 2021, Investigating Authority confirmed that Dossier was complete, valid according to regulations of law on trade remedies.

 

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Within 45 days of the receipt of a complete, valid Dossier, the Investigating Authority shall examine the Dossier to submit to the Minister of Industry and Trade for consideration for conducting an investigation.

Contents of Dossier examination include: (i) Determine qualification of the legal representative of the domestic manufacturing of organization, individual that submitted the Dossier according to regulation of Law on Foreign Trade Management; (ii) Determine evidence on the dumping of imported goods that caused or threatened to cause significant injury to a domestic manufacturing or significantly prevent the formation of a domestic manufacturing.

Our international trade and competition lawyers in Vietnam at ANT Lawyers will always follow the development from authorities to provide update to our clients.

 

 

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