Vietnam: Can household businesses provide security services? What are the responsibilities of security service providers?
Can household businesses in Vietnam provide security services?
Pursuant to the provisions of Article 11 of Decree 96/2016/ND-CP, regulations on security and order conditions for security service provision in Vietnam are as follows:
Security and order conditions for providing security service
Apart from conditions mentioned in Article 7 of this Decree, a security service provider must satisfy the following conditions:
1. It must be an enterprise.
2. The person in charge of security and order of the security service provider must possess a three-year associate degree or higher, and within 24 immediately preceding months, did not hold the same position at another security service provider that has Certificate of satisfaction of security and order conditions revoked for indefinite period (except for cases prescribed in Clause 2 Article 22 of this Decree).
3. A Vietnamese security service provider sets up a joint venture with a foreign security service provider:
The Vietnamese security service provider is only allowed to set up a joint venture with a foreign security service provider in case where it requires the investment in machinery and/or technical facilities provided that the foreign security service provider shall only contribute capital to purchase machinery and/or technical facilities to serve security works.
4. A foreign security service provider contributes capital to a Vietnamese security service provider:
a) It must be an enterprise that has been providing security service for at least 05 consecutive years;
b) The representative of the capital contributed by the foreign security service provider has never faced any administrative penalty from warnings or higher level for violations against regulations on security service by a competent law enforcement agency in a foreign country where security service is provided;
c) The capital amount contributed by foreign security service provider is only spent on purchase of machinery and/or technical equipment to serve security works. The minimum capital contributed by the foreign security service provider is USD 1,000,000 (one million US dollars). The valuation of machinery/technical equipment shall be conducted by the competent valuation authority at district level or higher, and the security service provider must pay valuation fees.
Thus, according to the above provisions, one of the conditions for providing security services in Vietnam must be an enterprise. Therefore, household businesses are not allowed to provide security services.
What are the responsibilities of security service providers in Vietnam?
Pursuant to Article 32 of Decree 96/2016/ND-CP, the responsibilities of security service providers in Vietnam are:
Apart from responsibilities in Article 25 of this Decree, a security service provider must:
- Select and use security guards who meet the following standards:
+ Have full capability of civil acts; have no criminal record on murder or deliberate infliction of injuries or offences against rights of property;
+ Have clear curriculum vitae which must be certified by people’s committee of commune/ward/district-level town where his/her permanent residence is registered;
+ Have health certificate granted by medical center or hospital at district level or higher to certify he/she is fit for working;
+ Possess a graduation diploma of secondary school or higher;
dd) A foreigner or Vietnamese person who resides abroad shall not appointed as the person in charge of security and order or directly managing business activities or as a security guard of the security service provider.
- Use security guards who have been trained and obtained security guard certificates.
- Enter into labour contracts with security guards as referred to by law regulations.
- Organize security guard training courses after the competent police authority gives a written approval for its security guard training curriculum/program.
- Grant signs and uniforms (with logo registered at the competent police authority) to its security guards.
- Enter in economic contracts before providing security services.
- Not provide security service to persons or subjects or activities in violation of the law.
- Within 05 days from the date on which a security service is provided to protect a subject at a central-affiliated city or province outside the scope of its head office, the security service provider must send a written notice, enclosed with the legitimate copy of the Certificate of sastisfaction of security and order conditions, the list of security guards, and the list of number and types of combat gears (if any) at the protected subject, to the police authority of commune/ward/district-level town where the security service is provided.
- Within 20 days from the date on which business activities are commenced, the security service provider with foreign investment must send the list of machinery and technical facilities invested by foreign party, enclosed with records of valuation of such machinery and technical facilities made by the valuation authority at provincial level or higher, to the competent police authority.
What is the certificate template of satisfaction of security and order conditions to provide security services in Vietnam?
The certificate template of satisfaction of security and order conditions to provide security services in Vietnam is form No. 01 in the Appendix enclosed with Decree 96/2016/ND-CP:
Download the certificate template of satisfaction of security and order conditions to provide security services in Vietnam here.
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