Conditions for and forms of operation of Vietnam-based foreign commercial mediation institutions

Conditions for and forms of operation of Vietnam-based foreign commercial mediation institutions (Internet image)

Regarding this issue, LawNet responded as follows:

1. Conditions for and forms of operation of Vietnam-based foreign commercial mediation institutions

Conditions for and forms of operation of Vietnam-based foreign commercial mediation institutions according to Article 33 of Decree 22/2017/ND-CP are as follows:

- Foreign commercial mediation institutions that are lawfully established and operate in foreign countries and respect the Constitution and laws of the Socialist Republic of Vietnam may operate in Vietnam in accordance with Decree 22/2017/ND-CP.

- Foreign commercial mediation institutions may operate in Vietnam in the following forms:

+ Branches of foreign commercial mediation institutions (below referred to as branches);

+ Representative offices of foreign commercial mediation institutions (below referred to as representative offices).

2. Branches and representative offices of Vietnam-based foreign commercial mediation institutions

Article 34 of Decree 22/2017/ND-CP stipulates the branches and representative offices of Vietnam-based foreign commercial mediation institutions as follows:

- Branch is a dependent unit of a foreign commercial mediation institution, which is established to carry out commercial mediation activities in Vietnam in accordance with Decree 22/2017/ND-CP. A foreign commercial mediation institution shall take responsibility before Vietnamese law for the operation of its branch.

The foreign commercial mediation institution shall appoint a commercial mediator to be head of its branch. The head of a branch shall act as the authorized representative of a Vietnam-based foreign commercial mediation institution.

- Representative office is a dependent unit of a foreign commercial mediation institution, which is established to seek and promote opportunities of mediation activities in Vietnam in accordance with Decree 22/2017/ND-CP.

The foreign commercial mediation institution shall take responsibility before Vietnamese law for the operation of its representative office.

- The name of a branch of a foreign commercial mediation institution must contain the word “Chi nhanh” (branch) and the name of the institution.

The name of the representative office of a foreign commercial mediation institution must contain the words “Van phong dai dien” (representative office) and the name of the institution.

Names of branches or representative offices of foreign commercial mediation institutions must comply with Clause 1, Article 20 of Decree 22/2017/ND-CP.

3. Rights and obligations of branches and representative offices of Vietnam-based foreign commercial mediation institutions

Rights and obligations of branches and representative offices of Vietnam-based foreign commercial mediation institutions according to Article 35 of Decree 22/2017/ND-CP are as follows:

* Rights and obligations of a branch

+ To rent a working office to serve its operation;

+ To recruit Vietnamese and foreign employees in accordance with law;

+ To open Vietnam dong and foreign currency accounts at banks licensed to operate in Vietnam to serve its operation;

+ To transfer its incomes abroad in accordance with Vietnamese law;

+ To have a seal as prescribed by law;

+ To operate for proper purposes and within the scope and period stated in its establishment license;

+ To appoint mediators to conduct mediation as authorized by the foreign commercial mediation institution;

+ To provide commercial mediation services;

+ To archive files and provide copies of written records of mediation results at the request of disputing parties or competent state agencies;

+ To report on the organization of commercial mediation activities to the provincial-level Department of Justice of the locality where it has registered its operation on an annual basis and upon request;

+ Other rights and obligations as prescribed by law.

- Rights and obligations of a representative office

+ The rights and obligations specified at Points a, b, c, dd, e and l, Clause 1 of Article 35 of Decree 22/2017/ND-CP;

+ To seek and promote opportunities of commercial mediation activities in Vietnam;

+ To refrain from carrying out commercial mediation activities in Vietnam; to carry out only activities to promote and advertise commercial mediation activities in accordance with Vietnamese law;

+ To report on its organization and activities to the provincial-level Department of Justice of the locality where it is located on an annual basis and upon request.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE