Establishment of a representative office of a foreign trade promotion organization in Vietnam

In the context of integration and globalization, foreign trade promotion organizations are increasingly requesting to establish representative offices in Vietnam. Establishing a representative office helps enhance economic cooperation and promote trade between Vietnam and other countries. However, to operate legally, these organizations must comply with Vietnamese legal regulations.

1. Definition of a Foreign Trade Promotion Organization 

Foreign trade promotion organizations including governmental or non-governmental organizations and associations (or the equivalent) established in accordance with applicable laws of the area where they are located shall establish a representative office in Vietnam when carrying out trade promotion activities in Vietnam(1). 

2. Rules for Operation of a Representative Office in Vietnam

The operation of a representative office in Vietnam of a foreign trade promotion organization is subject to the following rules:  

  • Only one representative office is allowed per province or central-affiliated city. 
  • The representative office must have an operational charter that complies with Vietnamese law. 
  • The representative office is not allowed to carry out activities to make a direct profit in Vietnam. 
  • A representative office cannot establish a representative office that is affiliated with a representative office. 
  • The head and personnel of the representative office must be registered with the licensing authority. 
  • The recruitment of foreigners to work at representative offices in Vietnam shall comply with Vietnam’s laws and Vietnam’s commitments specified in the treaties to which Vietnam is a signatory.(2) 

3. Operation of Vietnam-based representative offices of foreign trade promotion organizations

The representative office may only conduct trade promotion activities such as: 

  • Acting as a contact office. 
  • Providing economic and trade-related information. 
  • Facilitating trade connections between foreign and Vietnamese enterprises(3).

4. Conditions for the Head of the Representative Office 

The head of the representative office must meet the following requirements: 

  • The head of a representative office shall not act as a representative of another trade promotion organization and sublet its office.
  • The head of the representative office in Vietnam is determined by the foreign trade promotion organization and must be registered with the licensing authority.

5. Procedures for Obtaining a License to Establish a Representative Office of a Foreign Trade Promotion Organization in Vietnam

Step 1: The foreign trade promotion organization submits one application dossier for the establishment of a representative office in Vietnam through the City Public Service Portal. 

Required documents: 

  • Application for a license to establish a representative office. 
  • Written permission for the Vietnam-based representative office establishment license granted by a foreign competent authority or documentary evidence for the foreign trade promotion organization’s right to establish a foreign-based representative office.
  • Establishment license or the equivalent.
  • Charter or operating regulation of the foreign trade promotion organization.
  • Expected Charter or operating regulation of the Vietnam-based representative office. 
  • A report on the foreign trade promotion organization’s operation in the past year. 
  • A letter of appointment and profile of the head, profiles of personnel of the Vietnam-based representative office.

Step 2: Within 03 working days from the date of receipt, if the dossier is incomplete or invalid, the Department of Industry and Trade will issue a written request for supplementation. Within 20 days from the date of receiving a complete dossier, the licensing authority will review and issue the license to establish the representative office. If the license is not granted, the authority must issue a written response stating the reasons. If the representative office’s activities involve trade promotion for specialized goods and services related to national security and defense, consultation with the Ministry of Public Security and the Ministry of National Defense is required, extending the processing time to 40 days from the date of receiving a complete dossier(4). 

Step 3: Within 45 days from the date of license issuance, the representative office must publicly announce its operations through print or electronic newspapers authorized for circulation in Vietnam for three consecutive issues(5)

(1) Clause 1, Article 24, Decree 28/2018/ND-CP 

(2) Article 24, Decree 28/2018/ND-CP

(3) Clause 1 Article 25 Decree 28/2018/ND-CP 

(4) Article 26 of Decree 28/2018/ND-CP is amended and supplemented by Decree 14/2024/ND-CP 

(5) Clause 1 Article 26 of Decree 28/2018/ND-CP  

See more:

1/ Legal Issues Related To The Head Of The Representative Office Of Foreign Traders In Vietnam (Part 1)

2/ Legal Issues Related To The Head Of The Representative Office Of Foreign Traders In Vietnam (Part 2)

3/ Procedures that a representative office of a foregin trader are required to comply

 


Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Business and Investment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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