Our Vietnam legal update #145 would lead you on 02 legal issues:
I. Some new provisions on foreign employees working in Vietnam
The Government issued Decree No. 152/2020/ND-CP dated 30 December 2020 regulating on foreign employees (“FE”) working in Vietnam and recruiting and managing Vietnamese employees to work for foreign organizations, individuals in Vietnam. The Decree will take effect from 15 February 2021 with some important contents as follows:
- Reports for the first 6 months and annually on the employment of FE must be submitted before 05 July and 05 January of the following year.
- Adding 03 cases that FE is exempt from a work permit (“WP”):
(i) Being owner or capital contributor of a limited liability company (“LLC”) with a capital contribution portion of VND3 billion or more;
(ii) Being the Chairman of the Board of Directors or a member of the Board of Directors of a joint stock company (“JSC”) with a capital contribution portion of VND3 billion or more; and
(iii) Being confirmed by Ministry of Education and Training to enter Vietnam to teach and research.
- 07 cases only need to make a report without having confirmation of WP exemption:
(i) Entering Vietnam for a period of less than 03 months to offer services;
(ii) Being a foreign lawyer who has been granted a Lawyer Practice License in Vietnam as prescribed;
(iii) Being married to a Vietnamese and living in the territory of Vietnam;
(iv) Being owner or capital contributor of the LLC with the capital contribution portion of VND3 billion or more;
(v) Being the Chairman of the Board of Directors or a member of the Board of Directors of a JSC with a capital contribution portion of VND3 billion or more;
(vi) Entering Vietnam to work as a manager, executive director, expert or technician for a period of less than 30 days and not more than 03 times a year; and
(vii) Being a relative of a member of a foreign representative agency in Vietnam according to regulations.
- Dossier to apply for confirmation of WP exemption must have a written approval on the demand of employing FE and must be submitted at least 10 days in advance from the date of starting work. The dossier will be resolved within 05 working days from the date the authority receives the complete dossier.
- WP can be extended if the remaining duration is at least 05 days but not exceeding 45 days and WP can be extended one times with the maximum duration of 02 years.
II. Decree detailing the implementation of some articles of Law on Securities
The Government issued Decree No. 155/2020/ND-CP dated 31 December 2020 entering into force from 01 January 2021 with the following main contents:
- Issuing organization, and other related organization and individual are not allowed to advertise the private offering of shares on the mass media.
- Shareholders of a public company have the right to offer shares to the public when they meet the conditions prescribed by law.
- One of the conditions for enterprises established and operating under foreign laws to offer securities to the public in Vietnam is having approved investment project in Vietnam and the mobilized amount must not exceed 30% of the total capital of project investment.
- The private offering of shares at a price lower than the par value must not lead to a violation of the regulations on cross-ownership of Law on Enterprises.
- Public company may issue shares for debt swap if it satisfies the statutory conditions.
- JSC with charter capital contributed from VND30 billion or more may list shares.
- Securities company must ensure the minimum charter capital for each business operation as follows:
(i) Securities brokerage: VND25 billion;
(ii) Securities self-trading: VND50 billion;
(iii) Securities underwriting: VND165 billion;
(iv) Securities investment consultancy: VND10 billion.
Maybe you are interested in reading other updates: January 2021 (Part 1)