Regulations on the Establishment of Foreign Business Associations, Decree No. 08/1998/ND-CP

Promulgated in conjunction with Decree No. 08/1998/ND-CP, 22 Jan 98.

Article 1

To [hereby] permit foreign business licensed to engage in commercial, investment and service activities in Vietnam, if they have sufficient conditions and accept the provisions of these Regulations, to establish Foreign Business Associations or Foreign Business Clubs in Vietnam (hereinafter referred to as Associations).

Article 2

An Association shall be established on a voluntary basis, and shall be a non-governmental, non-political, and non-profit organization.

The foreign businesses set forth in Article 1 shall include: Representative Offices of foreign economic, financial, insurance, legal consultancy, [etc.] ... organizations, Branches of Foreign Companies, Branches of Foreign Commercial Banks and Foreign Parties participating in enterprises with foreign investment capital in Vietnam, which are established and operating under the laws of the Socialist Republic of Vietnam. Businesses shall nominate their representatives to participate in the activities of the Association.

Article 3

The conditions for establishing an Association:

1. Have at least 30 representatives from businesses of the same nationality or originating from one Regional International Organization.

2. Each foreign business community of the same nationality or originatingn from one Regional International Organization operating in Vietnam shall only be permitted to establish one Association in Vietnam, with a main office located and registered in one province [or] city under the Central Authority of Vietnam.

Article 4

Contents of the activities of the Association:

1. To organize internal information activities;

2. To organize activities and explore opportunities in commerce and investment;

3. To participate in activities for promoting commerce and investment which are organized by the Vietnam Chamber of Commerce and Industry and other Vietnamese authorities;

4. To organize meetings between the members of the Association and Vietnamese from management authorities in regard to matters in commerce, investment, andn services;

5. The Leadership Board of an Association shall have the right to represent the Association in putting forth proposals and measures to Vietnamese state managment authorities for the puprose of protecting the lawful rights and business of member businesses and contributing to the creation of a healthy business environment; [and]

6. To be permitted to publish and circulate within the Association newsletters regarding commercial and investment activities in accordance with the provisions of the Law on Publications of the Socialist Republic of Vietnam.

Article 5

The Application dossier to establish an Association shall be sent to the People’s Committee of the province or the city directly under the Central Authority at the place where the Association is being applied to be established. The dossier shall include:

1. An aapplication to establish an Association (1 copy in Vietnamese and 1 copy in a common foreign language);

2. An operational charter of the Association;

3. An introductory letter from the Vietnam Chamber of Commerce and Industry;

4. A dossier regarding the working office of the Association;

5. Resumes of the Leadership Board of the Association; [and]

6. Roll of representatives of businesses seeking to participate in the Association. (Full name, passport number, place of registration of temporary residence in Vietnam).

Article 6

Within a period of 30 days as from the date of receipt of the duly completed dossier in full, the People’s committee of the province or city directly under Central Authority is responsible for responding (issuing or not issuing a license) to the foreign businesses applying to establish the association. A license to establish an association will be valid for operations for 5 years as from the date of issuance and may be considered for an extension, each time for no more than 3 years.

Three months prior to the expiry of the license, if the Association desires to continue [its] activities, it must make an application for an extension for submittal to the Authority which issued the license for establishment. The Authority that receives the application must complete the formalities and respond to the concerned party with a time period not to exceed 30 days.

Article 7

During the course of operation, if there are changes that differ form the content stated in the license, an Association must complete an application proposing that the People’s Committee of the province or city directly under Central Authority at the place thwere the license for establishment was issued, permit an adjustment or supplement to the license and shall only operate in accordance with the new content when there is a document accepting the supplement to the license. The People’s Committee that receives the applciation must review and respond to the concerned party with a time period not to exceed 30 days.

Article 8

Within a time period of 30 days as from the date of isusance of a license or the acceptamce of supplements to a license, an Association must publish the following comments in the newspaper of the Central Authority and the local newspaper:

Name of the Association (in Vietnamese and a common foreign language);
License for establishment (number, date, and issuing authority);
Representative (Chairman or Secretary General of the Association);
Location of office (house number, street, etc.);
Account number at the Bank where it effects transactions; [and]
Telephone and Fax.

Article 9

The powers and responsibilities of an Association after [its] establishment:

1. Open an account for transactions at one Commercial Bank. This account shall only be used to service the administrative activities of the Association in accordance with the contents provided in Article 4 of these Regulations;

2. Lease an office, residential house, and hire employees in accordance with the provisions of Vietnamese law;

3. Have its own chop (if necessary). The making of a chop shall be in accordance with the regulations of the Ministry of Interior of Vietnam.

4. Import office equipment and means for working in accordance with the provisions of Vietnamese law applicable to Representative Offices of Foreign Economic Offices in Vietnam; [and]

5. The Association shall be responsible for reporting their activities on a semi-annual and annual basis and upon an ad hoc request to the People’s Committee of the province or city directly under the Central Authority at the place of issuance of their license.

Article 10

People’s Committees of provinces and cities directly under the Central Authority, at places where Foreign Business Associations are registered, shall be responsible for overseeing the compliance with Vietnamese law and the provisions of these Regulations by Foreign Business Associations. After the issuance of a license, the People’s Committee of the province or city directly under Central Authority shall be responsible for sending a copy of the license to the Ministry of Trade, Ministry of Planning and Investment, and the Working Committee on Non-Governmental Organziations, and shall concurrently, on a semi-annual and annual basis, make a consolidated report on the activities of Foreign Business Associations within its locality to the 3 authorities stated above.

Article 11

1. An Association shall terminate under the following circumstances:

• Expiry of th eterm stated in the license where there has been no extension;
• Serious vilolation of Vietnamese law where the license is revoked prior ot expirty of the term; [or]
• The Association dissolves on its own accord.

2. Within a time period of 30 days, as from the date of termination of operations, the Association must complete the relinquishing of offices, residential houses, and means o fworking that were leased and must pay all debts (if any) to the Vietnamese side.

Article 12

1. Activities of Associations that are not in accordance with the license issued or which are in violation of the provisions of these Regulations will, depending on the seriousness of the violation, be subject to fines in accordance with the provisions of the Ordinance on Handling Administrative Violations, temporary suspension of operatoin or revocation of their license. The Chairman of the People’s Committee of provinces and cities directly under Central Authority shall issue Handling Decisions on the level of suspension of operations and revocation of licenses.

2. Members of Associations and employees that work in the office of an Association who commit actions in violation of Vietnamese law will be handled in accordance with Vietnamese Law.

ON BEHALF OF THE GOVERNMENT.

PRIME MINISTER

[Signed and sealed by]

Mr. Phan Van Khai

Source:

NGHI ĐỊNH CỦA CHÍNH PHỦ Ban hành Quy chế thành lập Hiệp hội doanh nghiệp nước ngoài tại Việt Nam, 08/1998/NĐ-CP, Ngày 22 tháng 01 năm 1998.

Decree of the Government Promulgating the Regulation on the Establishment of Foreign Business Associations in Vietnam, No. 08/1988/ND-CP, January 22, 1998.

Click here to download a copy in (Vietnamese) or (informal English translation).

English Translation (c) Baker & McKenzie Vietnam, 1998.