Operation of Vietnam-based representative offices of foreign trade promotion organizations

 Operation of Vietnam-based representative offices of foreign trade promotion organizations (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Operation of Vietnam-based representative offices of foreign trade promotion organizations

- The Vietnam-based representative office of a foreign trade promotion organization shall only carry out trade promotion activities in Vietnam, including:

+ Acting as a contact office;

+ Carrying out activities to encourage and assist foreign enterprises to access and operate in the Vietnamese market; considering and providing information about economy, trade and market to foreign enterprises and organizations; promoting its foreign trade with Vietnam, and activities aimed at establishing trade connection with foreign enterprises and Vietnamese organizations and enterprises;

+ Other trade promotion activities prescribed by law.

- The representative office and its head shall exercise and fulfill the following rights and obligations:

+ The representative office shall operate in accordance with the representative office establishment license;

+ The head of a representative office is entitled to rent an office and recruit personnel to work at the representative office in accordance with Vietnam’s applicable regulations and laws;

+ The head of a representative office shall register and use the seal of the representative office in accordance with Vietnam’s applicable regulations and laws;

+ The representative office shall not act as a representative of another trade promotion organization and sublet its office;

+ The head of a representative office shall not be concurrently the head of a representative office of another foreign trader or foreign organization in Vietnam;

+ The foreigner working at a representative office must have a work permit in accordance with regulations and laws of Vietnam.

(Article 25 of Decree 28/2018/ND-CP)

2. Rules for operation of Vietnam-based foreign trade promotion organizations

- Foreign trade promotion organizations including governmental or non-governmental organizations and associations (or the equivalent) that are established in accordance with applicable laws of the area where they are located shall establish a representative office in Vietnam when carrying out trade promotion activities in Vietnam.

- The trade promotion organizations specified in Clause 1 of Article 24 of Decree 28/2018/ND-CP do not include foreign traders, foreign non-governmental organizations, authorities for cooperation and research, educational and cultural institutions and foreign organizations specified in other legislative documents.

- Foreign trade promotion organizations are not allowed to establish more than 01 representative office in a province or central-affiliated city.

- Foreign trade promotion organizations’ Vietnam-based representative shall have a Charter that is in accordance with Vietnam’s law. Representative offices are not allowed to carry out activities to make direct profit in Vietnam.

- The representative office is an affiliate of the foreign trade promotion organizations and it is not allowed to establish a representative office that is affiliated to a representative office.

- The heads and personnel of representative offices in Vietnam shall be decided by the foreign trade promotion organizations and registered with a licensing authority.

- The recruitment of foreigners to work at representative offices in Vietnam shall comply with Vietnam’s laws and Vietnam’s commitments specified in the international treaties to which Vietnam is a signatory.

- Foreign trade promotion organizations shall be responsible to Vietnam’s law for their representative office’s activities in Vietnam.

(Article 24 of Decree 28/2018/ND-CP)

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