Differences Between Limited Liability Company and Joint Stock Company

 How to distinguish a Limited Liability Company and Joint Stock Company?

Vietnam Law allows the establishment company in Vietnam in various forms. It is an important step in investment process.

10 questions to ask before setting up company in Vietnam?

Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.

Currently, Limited Liability Company (“LTD”) and Joint Stock Company (“JSC”) are two popular enterprise forms operating in Vietnam.

What is the difference between these two forms of companies?

I. Organizational Structure

Number of members/shareholders:

LTD

-Single member LTD: Having only one member (member can be an organization or an individual);

-Multi members LTD: Having at least 2 members and not exceed 50 members (member can be an organization or an individual).

JSC

Joint Stock Company has at least 3 shareholders and not limit the maximum number.

Management structure

LTD

-Single member LTD

Single member LTD owner by an organization shall be organized under two models: Company president, Director/General director and Supervisor; (OR) Members Council, Director/General director and Supervisor.

Single member LTD owner by an individual shall be organized as follows:  Company president, Director/General director.

-Multi members LTD

Multi members shall be organized by: LTD Council members, Chairman of the Members Council and Director/General director;

Multi members LTD having 11 members or more shall establish the Board of Supervisors.

JSC

JSC can be organized under two models: General Meeting of Shareholders, Board of Directors, Board of Supervisors and Director/General director; (OR) General Meeting of Shareholders, Board of Directors (Board of Internal Supervisors under Board of Directors) and Director/General director.

II. Capital Contribution

Raising capital

LTD

-Single member LTD: Owner increases charter capital

-Multi members LTD: Members increase their charter capital, or increasing the number of capital contributors

JSC

Different from LTD, JSC can raise its capital by various methods as follows: Selling shares to existing shareholders; Selling shares individually to non-shareholders; Issuing shares on the stock market.

Transfer of contributed capital

LTD

-Single member LTD: Owner transfers a part of contributed capital to other persons and this could lead to changes of the type of business or other procedures if all capital is transferred (for instance in a M&A deal).

-Multi members LTD: Offer the stakes to other members in proportion to their stakes in the company under the same conditions;  The stakes could only be transferred to other persons if the members do not buy or do not buy completely within 30 days from the offering date.

JSC

The shareholders of JSC are free for transfer their contributed capital after 03 years from the establishment.

Having said that, LTD is a type of enterprise that the capital contribution is not the only link between the members of the company but they are also linked together by relationship. They may be acquaintances and trust each other to jointly contribute capital to establish an enterprise. Therefore, the management of the LTD is as complicated as JSC. With the larger the number of shareholders, the level of capital mobilization, voting power to decide on issues of the company based on the ratio of capital contribution of each shareholder, the management and operation of the JSC is more complex.

The ability to raise capital of a JSC is higher than a LTD. Because, JSC can issue shares to the public in the form of securities. When the stocks are listed on stock exchange, the information of company’s business operations must be public and more transparent.

The procedure to set up a company in form of an LTD or a JSC has not much differences.

ANT Lawyers is a law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City to provide convenient access to our clients. With highly professional staff and great experience in foreign investment, we would like to support you to set up joint stock company in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/distinguish-a-limited-liability-company-and-a-joint-stock-company-in-vietnam.html

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How Vietnam Has Simplified Procedures to Register Business in Vietnam?

By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.

As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.

To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall  then apply for Enterprise Registration Certificate.

To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.

After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to  simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/procedures-to-register-business-in-vietnam.html 

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Regulations of Radio and Television Services in Vietnam

What Changes in Decree 71/2022/ND-CP  on Regulations of Radio and Television Services in Vietnam?

Along with the strong development of the Internet is an increase in people’s demand for using television services on the Internet instead of the traditional methods. Television services on the Internet providing domestic and foreign programs, movies, etc. have brought a significant source of revenue for domestic and foreign enterprises providing radio and television services. However, to ensure legal fairness for domestic enterprises as well as foreign enterprises doing business in providing this service to users, on October 1^st, 2022, the Government issued Decree 71/2022/ND-CP amending and supplementing some articles of Decree No. 06/2016/ND-CP dated January 18^th, 2016 on management, provision and use of radio and television services. The promulgated Decree has added new regulations on the management of domestic and foreign enterprises providing radio and television services, or in other words, changes in broadcast law in Vietnam. Specific details should be advised by media and entertainment lawyers in Vietnam however this write-up expects to provide some update on the development of regulations in this area.

As for management policies, the Decree stipulates the management of the provision and use of radio and television services in Vietnam, including radio and television services on the Internet, or across borders to users in the territory of Vietnam. Accordingly, foreign enterprises providing across borders radio and television services in Vietnam must be managed and comply with the provisions of Vietnam law.

For internet radio and television services (OTT TV), enterprises can choose from two service delivery models: (i) OTT TV provides both online channels and on-demand content (VOD) and (ii) OTT TV only provides VOD (OTT TV VOD). For OTT TV VOD service, enterprises are not required to provide program channels like traditional services and only needed to make a declaration according to the form of the Ministry of Information and Communications, instead of having to make a scheme as previously required to apply for a license to provide paid radio and television services. This regulation creates favorable conditions for domestic enterprises with the same technical conditions as foreign enterprises to participate in providing radio and television services on demand on the internet. Foreign enterprises wishing to participate in the market must also carry out the procedures for applying for a license like domestic enterprises.

The next highlight of Decree No. 71/2022/ND-CP is the addition of regulations on editing, classifying and translating radio and television content on demand (VOD). Enterprises are allowed to actively edit and classify VOD content as movies, sports and entertainment programs when meeting the conditions and criteria as prescribed by competent agencies which previously, according to the provisions of Decree No. 06/2016/ND-CP, all VOD content must be edited by a press agency with a radio and television license before being provided on the service. Accordingly, this content is divided into 03 groups to perform as follows:

(i) For news and current affairs programs; programs on politics, national defense, security, economy, and society must be produced and edited by a press agency that has licensed to operate radio and television before being provided on the service;

(ii) For films: Before providing services, enterprises must ensure conditions for the classification of films according to the Government’s regulations and take responsibility to the law for the content and results of film classification according to the classification criteria prescribed by the Vietnam Ministry of Culture, Sports and Tourism; In case enterprises have not yet met conditions for classification of films, it is requesting the Ministry of Culture, Sports and Tourism or an agency authorized by the Ministry of Culture, Sports and Tourism to classify films that have not been granted a Film Classification License or a Broadcast Decision;

(iii) For sports and entertainment programs: Enterprises must edit and classify before providing them on the service and display warnings while providing services, ensuring that they do not commit violations against regulations of Vietnam law. Enterprises shall work on the principles of editing, classifying, and warning content in accordance with regulations of the Ministry of Information and Communications and relevant laws to carry out editing and classification activities.

Regarding regulations on translation management, enterprises are allowed to take the initiative in translation activities. The translation of foreign programs and channels, enterprises must respect and preserve the purity of the Vietnam language, and ensure that they do not violate the prohibitions according to the provisions of Vietnam law.

In addition to supplementing regulations on management policies, Decree 71/2022/ND-CP has added regulations to reduce administrative procedures, and orient online application components to reduce costs for enterprises providing radio and television services. Accordingly, enterprises that wish to apply for a license i.e. a license to provide paid radio and television services, amend or supplement the content of the license, or re-issue the license, only need to prepare set of 01 (a) dossier (previously two sets, 01 sets of originals, 01 sets of copies) and can submit online on the online public service portal of the Ministry of Information and Communications for cases which electronic authentication certification is available. In addition, the processing time for the above procedures and documents are also significantly shortened, creating favorable conditions for enterprises when carrying out administrative procedures quickly, ensuring that the business operations are not affected.

Decree No. 71/2022/ND-CP officially took effect on January 1^st, 2023.

ANT Lawyers, as a reliable law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law.

Tell us how we can be of service and one of our team members will contact you. Email: ant@antlawyers.vn, Tel: +84 28 730 86 529.

Source ANTLawyers: https://antlawyers.vn/library/regulations-of-radio-and-television-services-in-vietnam.html

Source: ANT Lawyers.vn

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Trademark Registration Services in Vietnam

In Vietnam, many businesses today have not paid sufficient attention to trademark protection. Only when their trademarks would be infringed by other companies or competitors, they really concern to protect their trademarks and business through trademark registration, trademark opposition or take further actions. Such situation will negatively impact the business financially.

Trademark Registration services in Vietnam

Trademark rights will be protected within the national territory, therefore when a trademark has been registered in Vietnam, it will be protected in Vietnam. If one company wishes their trademarks to be protected in other countries, it could:

-Directly register in each country or

-Register via the Madrid International registration by filing a single application which indicates the registrations at respective countries.

If registered under the Madrid International, firstly, trademarks must have been submitted trademark applications or have registered in Vietnam, depending on whether the country for protection is under the Madrid Protocol or the Madrid Agreement.

Law on Intellectual Property and its related documents could also be referred to for further information.

ANT Lawyers’ services in the field of trademark registration advice covers:

-Look-up, assess and consult possibilities to register trademark in Vietnam and abroad;

-Represent clients in applying for certificates of trademark registration, record modification, extend degree of trademark protection in Vietnam and abroad;

-Evaluate the effectiveness of the certificate of trademark registration in Vietnam and the possibility of trademark rights violation;

-Implement of the protected trademark rights: investigate, monitor, negotiate, seek arbitration or initiate a lawsuit or request other competent agencies for handling of infringement in Vietnam and abroad;

-Negotiate, draft, evaluate and register the of changing trademark ownership in Vietnam and abroad;

-Advise on building strategies, brand development;

Trademark protections plays important roles in start-up business or matured business models because the financial benefits it brings or even it could make a business to close down in worst scenario. Hence, at ANT Lawyers, an IP registered agent in Vietnam, we continuously strive to assist clients to protect its intangible assets of trademark through registration of trademark in Vietnam at early stage.

If you are looking for an experienced Trademark lawyers in Vietnam to help you with your Trademark application, you should visit ANTLawyers. Our attorneys have experience with the IP process and will work closely with you as you apply for your IP.

Source ANTLawyers: https://antlawyers.vn/legal-service/intellectual-property-and-trademark-registration-in-vietnam.html

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How to Obtain Business Registration Certificate in Vietnam

How to Obtain Business Registration Certificate in Vietnam?

Every organization and individual wishing to set up a foreign owned company in Vietnam shall need to meet some specifics conditions as promulgated under the Law on Investment and Law on Enterprise. In specific areas being considered as conditional investment, the investor shall also need to consult with the law governing the area of investment. Once the investment registration certificate is completed, the investor has the obligation to apply for enterprise registration.

 Business Registration Certificate in Vietnam

The procedure to register for a certificate of enterprise registration of a joint stock company or limited liability with two or more members are herein mentioned:

Dossiers:

i) Application form for enterprise registration

ii) The company’s charter.

iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.

iv) Valid copies of:

Copies of the ID card or other ID papers of founding shareholders and foreign investors/members being individuals; list of authorized representatives of foreign shareholders being organizations.

Decision on establishment, certificate of business registration, or an equivalent document of the organization and the letter of authorization; the ID card or other ID papers of the authorized representatives of founding shareholders and foreign investors being organizations.

If shareholders are foreign organizations, the copy of the certificate of business registration or an equivalent document must be notarized, legalized and authenticated.

The Certificate of Investment registration of the foreign investors as prescribed by the Law on Investment.

State Authority: Business registration office of the province where the enterprise’s headquarters is situated.

Period: within 03 working days from the full receipt of the dossiers

Result: Business registration office shall issue the certificate of enterprise registration or if the application is not satisfactory, business registration office shall inform the applicant of necessary revisions and supplementation to company.

In general, Vietnam government encourages foreign direct investment. If the investor faces challenges at state authority, whom do not issue notification or request of supplementation to the application for enterprise registration, the investor cold lodge a complaint as prescribed by regulations of law on complaints and denunciation to the state authority to protect its right in doing business and investment in Vietnam. A law firm in Vietnam with expertise in both business registration and dispute resolution could assist the investor in the process.

The enterprise is entitled to do business from the issuance date of the certificate of enterprise registration. For conditional business lines, enterprises are entitled to engage in conditional business lines if they satisfy all conditions and are capable to maintain fulfillment of such conditions throughout their operation.

With highly professional staff and great experience in investment in Vietnam, ANT Lawyers would like to support you to register business registration certificate in Vietnam 

Source ANTLawyers: https://antlawyers.vn/update/how-to-obtain-business-registration-certificate-in-vietnam.html

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10 Questions to Ask Before Setting up Company in Vietnam

Foreigners are encouraged to make investment in Vietnam through direct investment by setting up company in Vietnam.

However there are restrictions in some cases in regard to investment capital, investment area, special licenses required. The investor is suggested to consult with a law firm in Vietnam for advice and service offering.

10 Questions to Ask Before Setting up Company in Vietnam

Before setting up company in Vietnam, ask yourself the following questions:

1. Which business should I invest in Vietnam?

There are non-conditional investment areas and conditional investment areas. Establishing company in the non-conditional investment areas are more simple than in conditional investment areas. Investment in IT services, manufacturing, management consulting, business promotion are a few samples of non-conditional investment areas. Example of conditional investment areas are real estate, trading, travel agencies, freight forwarding… which are more complicated with investment conditions. Investment conditions might also be changed over the time depending on the WTO commitments which Vietnam enters.

2. What should I name the business in Vietnam?
The company in Vietnam has to have Vietnamese name, and English name. The company could also have abbreviated name. The name of the company in Vietnam indicates the structure of the company, the business lines, and the name that differentiate against other businesses. For instance, the company could be named Alpha consulting limited liability company.

3. Where should I register the address of the business in Vietnam?
Not every address could be used to register a company. The address has to be an address of a house with leasing agreement or office building which owner has license to operate as office building.

4. What is the legal structure of the company?
Depending on the number of investor contributing capital, company could be set-up as one member limited liability company or two ore more member limited liability company or joint stocks company.

5. How much capital is required to set-up a company in Vietnam?
The investment amount depends on the business plan and is subject to the approval of the provincial Department of Planning and Investment evaluating application dossier. In some business areas like real estate, banking and finance, minimum capital is required. In general for non-conditional investment area, the law does not specify the minimum capital to establish a company in Vietnam however the State agencies that evaluate investment plan could reject the investment project which are not feasible. Bank statement in foreign banks could be used to prove sufficient fund of investment capital.

6. Whom will be legal representative and work permit in Vietnam?
The investor will need to appoint the legal representative in Vietnam to oversee the business performance and take legal responsibility in Vietnam. If the legal representative is an expatriate, whom is a capital contributing member or owner of a limited liability company or a member of the Board of Management of a shareholding company which is registered to operate in Vietnam, he or she will be exempted from work permit in Vietnam. Otherwise, he or she will need to have a work permit to work in Vietnam legally. The work permit holder would then apply for temporary residence card to live in Vietnam as long as the work permit allows.

7. How long does it take to set-up a company in Vietnam?
It depends on what type, scale, and whether or not conditions are required. For a simple minimum capital without conditions to set-up, it would take 30 working days. For setting up company in conditional investment areas i.e.  trading company in Vietnam, time would be lengthen due to the involvement of a number of State agencies approving the investment project and it would take 60 working days. For setting up company in other investments in areas requiring conditions to meet, time might be taken depending on the type of conditions and the government agencies evaluating the conditions of investment.

8. Whom will be granting the investment license in Vietnam?
For most of the investment projects, the provincial state agencies with the approval of the Department of Planning and Investment (DPI) will be granting the Investment Certificate in Vietnam. However, depending on the type, scale, and whether or not conditions are required, other Vietnam State agencies might be involved. For the case of trading company, ministry of trade and commerce, ministry of finance, provincial people’s committee will be reviewing the investment application dossier as well.

9. What are the tax liability in Vietnam?

Major taxes in Vietnam are corporate income tax, import and export tax, value added tax, and personal income tax in Vietnam. In some special areas, there are other taxes. The corporate income tax is currently at 22% and will reduce to 20% beginning 2016. Export is mostly encouraged as such the export tax is 0 however there are special cases when export tax is larger than 0. Import tax varies according to tariff. Value added tax is mostly at 10% however in some cases, VAT could be 5% or 0%. Personal Income tax varies according to income level and is applicable from VND 9,000,000 above.

10. What are mandatory reports submissions requirement in Vietnam?
Companies are required to keep accounting books, prepare and submit tax reports on monthly, quarterly and annually. Foreign companies are also required to have financial audit taken before the financial year end. The financial year in Vietnam is from January to December and the deadline to submit financial report is March 30th for the previous year. Other reports are required to be submitted at other State agencies.

With highly professional staff and great experience in business in Vietnam, ANT Lawyers would like to support you in establishing company in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/10-questions-to-ask-before-setting-up-company-in-vietnam.html

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How Guardianship of Minors is Regulated in Vietnam Laws?

How Guardianship of Minors is Regulated in Vietnam Laws?

Guardianship under Vietnam laws aims to protect the legitimate rights and interests of groups that are not yet fully developed physically or mentally. There are two forms of guardianship prescribed by law: natural guardians and guardians appointed by a competent state agency, in which natural guardians can only be individuals. This type of guardianship is defined by the provisions of the guardian, the ward, and the rights and obligations of the guardian towards the ward and their property. There are potential disputes in finance or caring responsibility among people having responsibility of guardship therefore it is important to understand the order of natural guardians when life event happens that trigger the need for guardianship. Hence, having the advice form civil or marriage and family dispute lawyers in Vietnam with understanding of the matters is very important.

Minors (a person under 18 years old) who have lost their parents are one of the subjects of guardianship under Vietnamese law. They are considered vulnerable in the society and need to be cared for and protected. Therefore, to avoid the case that these people have no guardians when their parents suddenly die, civil law has provided a provision to determine the order of natural guardians based on their blood relationship as follows: (i) the eldest brother or sister shall be the guardian of the ward; if the eldest brother or sister fails to satisfy all requirements for acting as a guardian, the next eldest brother or sister shall be the guardian, unless otherwise agreed that another biological brother or sister shall be the guardian; (ii) the paternal grandfather, grandmother or the maternal grandfather, grandmother shall be the guardian or these persons agree to appoint one or several of them as guardians; (iii) a biological uncle or aunt of the ward shall be the guardian.

Thus, in the same order as above, the natural guardian of a minor will always be specifically identified and this person must ensure that the guardian’s conditions are fully met, including:  having full legal capacity; having good ethics, and necessary means to exercise rights and fulfill obligations of a guardian; not being a person facing criminal prosecution or a person who has been convicted but his/her criminal record has been not expunged for a deliberate crime of violation of life, health, honor, dignity or property of another person; and not being a person having parental rights to minor child restricted by a Court.

In case a minor does not have a natural guardian, the commune-level People’s Committee of the place where they reside shall have to appoint a guardian. In addition, if there is a dispute between the natural guardians about the guardian or a dispute over the appointment of the guardian, the Court will appoint the guardian. 

Accordingly, when a minor loses their parents, according to the law, their biological brother or sister will be their natural guardian. However, if this person does not have a biological brother or sister, the paternal grandparents and maternal grandparents will be the natural guardians of this person, and both of them have equal rights in guardianship for their grandchildren minors under the provisions of the Civil Code the Law on Marriage and Family as follows: “Paternal grandparents and  maternal grandparents have the right and obligation to look after, care for and educate their grandchildren, lead an exemplary life and set a good example for grandchildren; in case a minor grandchild or an adult grandchild loses his/her civil act capacity or is unable to work and has no property to support himself or herself without a caregiver as prescribed in Article 105 of this Law, paternal grandparents, and maternal grandparents have the duty to raise their grandchildren.”

The law always respects the voluntary agreement of the involved parties in determining guardianship for minors who have lost their parents. Paternal grandparents and maternal grandparents may agree to appoint one or several of them as guardians for their minor grandchildren according to regulations. In case the two parties cannot agree on a guardian for the grandchild, this is another type of marriage and family dispute. Therefore, pursuant to the Civil Procedure Code, one of the parties can make an application to the competent district court to request the court to settle the case according to civil procedure. The court will base on the facts of the case, the conditions of the guardianship of the parties, the emotional relationship between the guardian and the ward, and the capability to ensure the best physical and mental development to decide to assign the child to whom to act as guardian. In addition, if the ward is six years old or older, the Court will have to consider their wishes during the dispute resolution process to make a decision to appoint the most suitable guardian.

In summary, Vietnam law has clear and specific provisions to determine natural guardians for minors who have lost their parents. In addition, the law also stipulates that the determination of guardians may involve the intervention of a competent state agency, namely the People’s Committee, and the Court in the event of a dispute between guardians to appoint a guardian equitably. All these regulations ensure that minors are cared for and nurtured in the best conditions for future development.

ANT Lawyers, a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to marriage and family to update clients on regular basis.

Source: ANT Lawyers 

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How US Authorities Could Request for Help on Taking the Evidence in Vietnam for Civil or Commercial Matters?

How US Authorities Could Request for Help on Taking the Evidence in Vietnam for Civil or Commercial Matters?

The Evidence Collection Convention is a multilateral Hague Conference convention that was signed on March 18, 1970 and went into effect on October 7, 1972. The objective of the Convention is to facilitate the collection of evidence and to harmonize the methods of evidence collection between States.

Evidence Law in Vietnam

On May 3, 2020, Vietnam became a party to the Convention on the Collection of Evidence Abroad. After becoming a member of this Convention, Vietnam only applies and accepts requests for evidence collection by a written request as described in Chapter I of this Convention. As a result, Vietnam does not use the process of gathering evidence carried out by a diplomatic officer, consular officer, or authorized person in Chapter II of the Convention.

Procedures for collecting evidence between the United States and Vietnam under the Hague Convention

Both Vietnam and the United States are parties to the Convention on Collection of Evidence. However, since Vietnam only participates in collecting evidence in writing, the United States has to collect evidence in Vietnam via this method.

Step 1: The U.S. Agency sends a written request to collect evidence to the Ministry of Justice of Vietnam

In the settling a case involving a civil or commercial field, the party can request the Court to assist in collecting evidence in Vietnam. The US judicial agency will issue a written request for evidence collection to the competent Vietnamese agency (specifically, the Ministry of Justice). This document must ensure that follow the contents of Article 3 of the Convention, and must be written in Vietnamese or accompanied by a Vietnamese translation and delivered via postal service.

Step 2: A written request for evidence collection is received by Vietnam’s Ministry of Justice

The Ministry of Justice of Vietnam will receive the request for evidence and decide whether or not to comply with the request for evidence collection. In the event of a refusal, the Ministry of Justice of Vietnam must clearly state the reasons specified in Article 12 of this Convention. For example, the request is not within the scope of the Convention in the civil and commercial fields, or the implementation of which may be detrimental to the sovereignty and security of that country, etc.

Step 3: The Ministry of Justice requests competent agencies to collect evidence

After having sufficient grounds to handle the request of the U.S. Agency, the Department of Justice will send a written acceptance of the request to collect evidence to the United States and forward it to the competent domestic agency for collection evidence process. The Vietnam agency will notify the U.S. Agency of the time, place, and procedures to collect evidence to be followed so that relevant parties and their representatives can be present.

When making the written request, a judicial officer from a U.S. agency may be present, and this presence has to be approved by the Vietnam Agency. Further, according to Article 11 of this Convention, the person being asked to provide evidence has the right to refuse to comply with the request for evidence collection if required by Vietnam law or  in the written request for evidence collection state that they can refuse to provide evidence expressly stated.

Step 4: The Ministry of Justice of Vietnam sends a written response on the results of evidence collection to the U.S. Agency

After receiving the results of evidence collection from other agencies, the Ministry of Justice sends a written response to the results of evidence collection to the U.S. Agency to compete the process.

To comply with the process and ensure the evidence could be properly collected for usage in trial, it is important to consult with dispute lawyers in Vietnam for legal advice.

ANT Lawyers, as a law firm in Vietnam, will always follows up the evidence in Vietnam for civil or commercial matters to update clients on regular basis. 

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