Propose to Remove Nearly 2,000 Business Conditions

The Ministry of Planning and Investment has proposed to remove nearly 2,000 business conditions from ministries and sectors that are thought to cause difficulties and obstacles for businesses.

According to the report of the Ministry of Planning and Investment submitted to the Government, this agency proposed to remove 1,930 requirements and conditions on business that are considered as sublicenses hinder business for a long time. Of these, the Ministry proposed removing all or part of 302 financial conditions. In addition, 85 business conditions on location and 1,336 conditions on production capacity, 127 conditions on business methods, 80 conditions on planning… are proposed to be abandoned entirely.

In addition, other business conditions related to human resources issues (except for some professions that require professional qualifications and experiences such as doctor and auditor) and some conditions with inappropriate contents, the Ministry also recommends the abolition of all or part.

According to the report of the Central Institute for Economic Management (CIEM), there are about 4,284 business conditions, corresponding with 243 conditional investment businesses. Of these, the Ministry of Industry and Trade has the highest number of business conditions with 1,152 conditions; next is the Ministry of Agriculture and Rural Development, Ministry of Health…

Most of these business conditions are creating unreasonable barriers to investment, entry into the market, limiting the number of newly registered businesses, increasing production costs, discouraging businesses.

Moreover, business conditions also reduce market competition, productivity and competitiveness of the economy. Businesses also face with many risks in the process of operation when many business conditions are unclear, creating opportunities for the arbitrariness of state management agencies and the harassment of officials… These effects are going backwards and hinder the Government’s resolve to improve the business environment and cut costs for businesses.

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Please click here to learn more about ANT Lawyers IP Practice or contact our IP lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

 

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Can I copyright something on behalf of another person?

I’m afraid the Copyright Act beat you to it. Copyright arises automatically under the law at the time a copyrightable work is created and “fixed in a tangible medium of expression” (e.g., drawn on paper, saved in digital format, recorded on tape, etc.). What that means is that your cousin’s logo design was protected by copyright law as soon as she created it, and she has owned the copyright since that time.

What you may be thinking of is the act of registering a copyright with the Copyright Office. Registering a copyright doesn't create the copyright itself — it simply records a person’s claim to a particular copyright with the federal government. (It also provides some very valuable benefits in the event someone infringes the copyright, which is the primary reason most people and businesses do it.) Unfortunately though, you aren't permitted to register someone else's copyright unless you’re acting as the copyright owner’s authorized agent. So, at least assuming you want the gift to be a surprise, the Copyright Office won't permit you to register the copyright in the logo since you don't have your cousin’s authorization. But you certainly can help your cousin do it herself or even ask her for authorization to be her agent for the purpose of registering the copyright.

                                                                                                                                                               

Please click here to learn more about ANT Lawyers IP Practice or contact our IP lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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Licensing Your Copyrighted Works

If you’ve taken the necessary steps to register your copyrighted works, you inevitably will have an opportunity to royalties off of them. To take advantage of the opportunity, you will need to be familiar with copyright license agreements.

If you’ve taken the necessary steps to register your copyrighted works, you inevitably will have an opportunity to royalties off of them. To take advantage of the opportunity, you will need to be familiar with copyright license agreements.

Copyright License Agreement

A copyright license agreement sets for the terms under which a third party can use your content. In legal language, you will the “licensor” with the other party being the “licensee.” The purpose of the agreement is to set forth the terms under which you, the licensor, will grant the third party, licensee, the right to use, publish or reuse your copyrighted work in exchange for a royalty. Let’s take a closer look at key components of the licensing agreement.

Specific Rights Granted

This may sound obvious, but the agreement needs to detail exactly what copyrighted material can be used. If you have copyrighted articles, are you granting a right to use all of the articles or only certain ones? It is highly recommended that the agreement contain a detailed description of the exact materials being covered.

Once you agree upon the exact materials, you need to determine any restrictions on how the material can be used. Can the material be used on the Internet or will it be restricted to a certain niche’ such as manuals or collections of materials?

An extremely important issue is whether the agreement grants exclusive or non-exclusive rights. In English, this simply defines whether the licensor can grant similar rights to other parties. The grant of exclusive licenses should require a much larger royalty rate since you are essentially betting the third party will be successful.

Licensing Royalties

In exchange for your copyrighted work, the third party is going to make royalty payments to you. The particular amount of the royalty is dependent upon the nature of your work. Issues to consider include:

1) Will you be paid a flat amount or percentage of sales?

2) If a percentage, will it be figured from gross revenues or something less?

3) How often will you be paid?

4) What rights will you have to audit the books of the third party to determine you are getting the full royalty?

In some situations, you may decide to forgo a royalty payment. This usually occurs when the third party will use the materials in manner that produces massive publicity for you. For example, many professionals seek to right columns for publications as a marketing tool. Often, they will not charge the publication for the material because the resulting publicity carries enough of a benefit.

In Closing

 If you are considering licensing copyrighted content, keep the above in mind. Since such agreements are difficult to break, hiring an attorney is worth the expense.

How ANT Lawyers Could Help Your Business?

Please click here to learn more about ANT Lawyers IP Practice or contact our IP lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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Quang Ninh Calls for Investors in Tourism Real Estate

Quang Ninh is becoming an open destination for tourism investors to come and set up business in Vietnam.

With the land area and sea surface of over 12,000 square kilometers, the topography of more than 2,000 islands spread over 250 kilometers of coastal lines, Quang Ninh is considered as a “small Vietnam” with the potential to develop green tourism. Therefore, it is not surprising that many travel experts perceive Quang Ninh is blessed with special values.

The first highlight of the Quang Ninh tourism journey is Ha Long Bay – the world natural heritage, the most typical and unique island in the island’s integrated marine tourism system. This system stretches 250 kilometers of sea route, linking Ha Long – Bai Tu Long – Van Don island – Bai Tu Long National Park – Co To island – Vinh Thuc island – Tra Co beach with Cat Ba National Forest (the World Biosphere Reserve) and the marine resources system of Hai Phong city. These remarkable advantages make Ha Long Bay along with Cat Ba, Do Son (Hai Phong) are prioritized to develop into national tourist area.

Along with Ha Long Bay, places like Quan Lan, Minh Chau, Ngoc Vung, Bai Dai, Van Hai white sand mine… (in Van Don island district); or Tra Co, Vinh Thuc (in Mong Cai city) … with beautiful beaches, natural forests, intact coral reefs around the islands, offshore locations, have created special values of Quang Ninh tourism.

In addition to natural advantages, Quang Ninh is the only province with land and sea borders with China, an important and vibrant trade gateway between Vietnam, China and ASEAN countries. That is why large investors want to choose Quang Ninh. From the end of 2013 up to now, Quang Ninh has attracted more than 100 projects with total investment capital of more than 5.5 billion USD, nearly half of capital concentrated in Ha Long city, of which the strong investment waves mostly focus on the field of tourism.

There is not only the presence of Vietnamese investors such as Tuan Chau, Vingroup, Sun Group, FLC…, the attractiveness of Quang Ninh is also reflected in the presence of billion-dollar-super-projects of giants investors from United States, China, Thailand, United Arab Emirates… The famous names such as Wyndham, Starwood, ISC Corp, Amata, Nakheel… have landed in Ha Long with huge investment plan.

In the development plan, Quang Ninh is calling for investment in 14 large-scale eco-tourism real estate projects (period 2016 – 2020) and many other projects to develop 4 major tourism centers: Ha Long; Mong Cai – Tra Co; Van Don – Co To; Uong Bi – Dong Trieu – Quang Yen.

Standing in the top on tourism investment attraction, the keys that help Quang Ninh to balance its economic benefits and resource conservation are unified planning, consistent development and a clear view on investment attraction.

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Korean Corporation Builds Aircraft Engine Spare Part Factory in Vietnam

Hanwha Techwin is seeking opportunity to expand capacity through opening factory abroad and they chose to set up factory in Vietnam.

Hanwha Techwin Corporation from Korea has selected a 10 hectares site on the suburb of Hanoi to build a factory manufacturing aircraft engine spare parts.

The Corporation is now waiting for the Vietnamese Government to approve the project. If licensed, Hanwha Techwin will start construction of the factory in August 2017 and begin operation in the second quarter of 2018. This factory covers an area of 6ha, 8 times more than a regular football field.

In order to implement the plan to raise revenue from aircraft engine spare parts to 900 million USD, Hanwha Techwin is seeking to expand capacity through opening factory abroad. In which, among many areas targeted by Hanwha Techwin, Vietnam was selected for having a suitable logistics environment and high competitive advantage in terms of production costs.

This technology corporation is expanding its engine parts businessby winning large contracts from leading global aircraft engine manufacturers such as GE, Pratt & Whitney (P&W) and Rolls-Royce.

Earlier in April 2017, Hanwha Techwin Corporation started construction of Hanwha Techwin Security factory in Que Vo Industrial Park, Bac Ninh province. Phase 1 of this 100-million-USD project will manufacture CCTV camera, storage devices, high technology security surveillance devices.

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Will Form New Value Chain in Vietnam – Japan Economic Cooperation

Japan has truly become a strategic partner of Vietnam. Currently, trade activities between the two countries are being promoted and more and more Japanese businesses choose to set up company in Vietnam.

According to Mr. Hironobu Kitagawa, Chief Representative of the Japan External Trade Organization (JETRO) in Vietnam, it is not just a single sector investment, the integration of industry groups to create new value chains is essential for Vietnam -Japan economic cooperation.

During the recent visit to Japan by Vietnam Prime Minister Nguyen Xuan Phuc, many collaboration memorandum have been signed, as well as 1,600 attendees pointed out that Japanese enterprises pay high attention to the investment in Vietnam. In the eyes of Japanese businesses, Vietnamese market is a continuous growing market. In addition to the second group of industries (manufacturing and processing industries), enterprises will expand into other sectors such as the first industry group (agriculture sector) and the third industry group (service industries).

Japanese side affirmed that they would continue to support Vietnam in implementing the plans of the 6 selected industries in order to accelerate Vietnam’s industrialization and modernization process. Basically, direct investment from abroad will boost domestic industry and boost economic growth. Of course, if foreign economic relations accelerate, the ability to create new business opportunities will be greater, while stimulating the domestic consumption market. Therefore, through the receipt of investment from abroad, the building of mutually beneficial relationship is necessary.

Increasing investment from Japan in 6 areas (especially electronics, food processing and car accessories) is the focus for accumulation of supporting industries. This is expected to contribute to the nurturing of Vietnamese enterprises. Moreover, JETRO will continue to contribute to the development of supporting industries in Vietnam by organizing annual supporting industry exhibitions.

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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.

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