What is an American Chamber of Commerce?

American Chambers of Commerce (AmChams) are organizations formed under two systems: the system of their host country and the system of the United States.

So AmCham respects and adheres carefully to the law and regulations of both countries.

In Vietnam, AmCham is established under the authority of the Decree of the Government Promulgating the Regulations on the Establishment of Foreign Business Associations in Vietnam, Decree No. 08/1998/ND-CP, 22 Jan 98.

In the United States, chambers of commerce are established under the authority of the the Internal Revenue Code, 501 c (6), and AmCham is an “Organization Member” and subject to the charter and bylaws of the national-level Chamber of Commerce of the United States of America®. As an Organization Member, AmCham Vietnam abides by the Principles to Govern American Chambers Abroad established by the Chamber of Commerce of the USA, in cooperation with AmChams.

Accordingly, by both Vietnamse and U.S. law, AmCham Vietnam members are principally American or international companies involved in trade and investment with the United States.

Vietnam: Regulations on the Establishment of Foreign Business Associations

In Vietnam, a foreign business association (chamber of commerce) is required to be ”...voluntary, ... non-governmental, non-political, and non-profit.” Membership consists of ” ... foreign businesses licensed … in Vietnam,” who nominate representatives to participate in the association. Only one association per foreign country is permitted, with its ” ... main office located and registered in a province or city directly under the Central Authority of Vietnam.”

Decree No. 08/1998/ND-CP, 22 Jan 98 authorizes the following activities of an International Business Association (Chamber of Commerce):

• organize internal information activities;
• organize activities and explore opportunities in commerce and investment;
• participate in activities for promoting commerce and investment which are organized by the Vietnam Chamber of Commerce and Industry and other Vietnamese authorities;
• organize meetings between the members of the Association and Vietnamese State management authorities in regard to matters in commerce, investment, and services;
• the Leadership Board of an Association shall have the right to represent the Association in putting forth proposals and measures to the Vietnamese State management authorities for the purpose of protecting the lawful rights and interests of member businesses and contributing to the creation of a healthy business environment;
• publish and circulate within the Association newsletters regarding commercial and investment activities in accordance with provisions of the Law on Publication of the Socialist Republic of Vietnam.

United States: Internal Revenue Code, Section 501 c (6)

The Internal Revenue Code, Section 501c(6) provides for tax-exemption of chambers of commerce and some other organizations that are not organized for profit. The predecessor of IRC 501c(6) was enacted as part of the Tariff Act of 1913 based on a request from the U.S. Chamber of Commerce for exemption for “nonprofit civic” and “nonprofit commercially-oriented” organizations.

U.S. Treasury Department regulations define a chamber of commerce as

A “chamber of commerce” in the United States must possess all of the following characteristics:

• Common business interest
• Rules regarding membership and meaningful membership support
• Not organized for profit
• Earnings may not inure
• Activities directed to the improvement of business conditions
• Primary activity may not consist of performing particular services for individual persons
• Not engage in a regular business ordinarily carried on for profit.

For a brief explanation by the Interal Revenue Service of the United States about the above characteristics, please click here: Characteristics of Business Leagues (Chambers of Commerce) in the Unites States. To download a detailed explanation with examples, please click here: Internal Revenue Code (IRC) 501 c (6) Organizations (747kb pdf file).

The common business interest of AmCham members is to promote trade and investment between Vietnam and the United States. Our charter and by-laws limit membership to American companies licensed and legally engaged in business in Vietnam. International companies in Vietnam that are substantially involved with trade and investment between the Vietnam and the U.S. may qualify as associates. Similarly, companies in the U.S. that are substantially involved with trade and investment between the Vietnam and the U.S. may qualify for non-resident associate membership. AmCham’s activities are directed to the improvement of business conditions related to trade and investment between Vietnam and the United States. AmCham does not perform particular services for individual persons or companies, and does not engage in a regular business ordinarily carried on for profit.

As an organization legally established in Vietnam, a member of the Chamber of Commerce of the USA®, and with company members from the United States, we respect and abide carefully by both of the above-mentioned regulatory systems.