Legal regulations on foreign research organization representative offices in vietnam

I. The Importance of Foreign Research Organization Representative Offices

Foreign research organization representative offices play a crucial role in enhancing cooperation and the exchange of knowledge and information between countries and research organizations. Below are some of the key importance of these representative offices:

- Creating Links and Collaboration: Foreign research organization representative offices help establish connections and collaborations between the organization and local partners. This promotes the exchange of knowledge, sharing of experiences, and the creation of a rational research base.

- Local Research and Analysis: Foreign research organization representative offices can explore and study local issues, gaining a better understanding of the situation, trends, and development potential in the organization's research field. This provides detailed information, data, and practical reports about the local area for the research organization.

- Support and consultation: Foreign research organization representative offices can provide support and advice to partner localities. This includes sharing knowledge, techniques, research methods, and solutions in the organization's area of expertise.

- Building partner networks and networks: Foreign research organization representative offices play an important role in building partner networks and networks with local organizations, agencies, and businesses. This helps to strengthen exchanges, communication, and create new opportunities for cooperation.

- Improving research quality: Foreign research organization representative offices can contribute to improving research quality in the local country. By sharing advanced research methods, techniques, and experience, representative offices can play an important role in enhancing the research capacity of the local community.

In summary, foreign research organization representative offices play a significant role in strengthening cooperation, knowledge exchange, and improving research quality in the local country.

II. Legal regulations related to foreign research organization representative offices

1. What is a foreign research organization representative office?

A foreign research organization representative office is a facility or representation of a foreign-based research organization established in another country to conduct research and analysis in a specific field.

Foreign research organization representative offices typically have the responsibilities to study, research, and analyze local and national issues, to provide detailed information, data, and reports on the situation, trends, and development potential in the organization's research field.

Foreign research organizations often establish representative offices to directly access and interact with local agencies, organizations, enterprises, and stakeholders in the country where the office is located. This helps foreign research organizations gain a deeper understanding of the country's culture, policies, economy, and society.

II. Application Documents and Procedures for Establishing a Foreign Research Organization Representative Office

Based on Circular 10/2005/TT-BNG, the dossier for applying for the establishment of a foreign research organization representative office includes:

- Application for establishment of a representative office (RO), with content according to the form "Application for permission to establish an RO in the Socialist Republic of Vietnam" issued by the Ministry of Foreign Affairs (Form No. 01/BNG-RO);

- Charter or regulations on the operation of the foreign organization applying for the establishment of an RO;

- Document from the foreign ministry, sector, or local government in charge of authorizing the foreign organization to establish an RO in Vietnam;

- Certificate of legal status of the foreign organization issued by the competent authority of the country where the head office is located;

- Programs and projects approved by the competent Vietnamese authority;

- CV of the person intended to be appointed as the Head of RO in Vietnam;

- Letter of introduction or decision appointing the Head of RO in Vietnam by the head of the foreign ministry, sector, or local government in charge of the foreign organization;

Procedures for applying for the establishment of a foreign research organization representative office:

Step 1: The foreign organization applying for the establishment of an RO submits the dossier directly to the Ministry of Foreign Affairs (Department of International Organizations).

The dossier receiving agency must have a tracking book and issue an acknowledgment receipt when it receives all valid documents.

Step 2: Before issuing a decision according to its competence, the Ministry of Foreign Affairs shall consult with the competent Vietnamese authority, relevant ministries and agencies, and the People's Committee of the province or city directly under the Central Government in the locality where the RO is intended to be located in the case of new establishment or the location of the RO in the case of application for amendment, supplementation, or extension of the License. In case of different opinions, the Ministry of Foreign Affairs shall submit to the Prime Minister for consideration and decision on the approval of the License. The Ministry of Foreign Affairs shall notify the results of the review to the relevant foreign organization within not more than 30 days from the date of receiving all valid documents.

III. Jurisdiction for the Establishment of Foreign Research Organization Representative Offices

According to the provisions of Article 7 of Decree 06/2005/NĐ-CP, A foreign organization applying for the establishment of a representative office must submit 3 sets of dossiers to the Ministry of Foreign Affairs. Within not more than 30 days from the date of receiving all valid dossiers, the Ministry of Foreign Affairs shall consider granting or refusing to grant a license to establish a representative office to the foreign organization (hereinafter referred to as the "License"). In case of refusal to grant the License, the Ministry of Foreign Affairs shall respond to the foreign organization in writing. The Ministry of Foreign Affairs shall specify the content of the License to establish a representative office of a foreign organization in Vietnam.

Therefore, a foreign research organization applying for the establishment of a representative office submits the dossier to the Ministry of Foreign Affairs.

III. Frequently Asked Questions About Foreign Research Organization Representative Offices

1. Is a foreign research organization representative office responsible for reporting its activities to the Ministry of Foreign Affairs?

Based on Clause 2 of Article 14 of Decree 06/2005/NĐ-CP, the Head of the Representative Office shall be responsible for all activities of the Representative Office and of the foreign organization in Vietnam, and shall be responsible for reporting in writing every six months and annually to the Ministry of Foreign Affairs and the competent Vietnamese authority on the organization's activities in Vietnam, and shall also be responsible for reporting, providing documents or explaining matters related to the organization's activities to the Ministry of Foreign Affairs and the competent Vietnamese authority when requested.

At the same time, Point a of Clause 2 of Section V of Circular 10/2005/TT-BNG stipulates that The Head of the RO shall be responsible for complying with the provisions set out in Article 14 of the Decree. The RO shall be responsible for implementing the periodic reporting regime every 6 months on 15/6 and annually on 15/12 to the Ministry of Foreign Affairs and the relevant Vietnamese competent authority. The requirements for periodic reporting content shall apply according to the Form attached to the Circular (Form No. 02/BNG-RO).

Based on the above regulations, the Head of a foreign research organization representative office is responsible for reporting in writing every six months and annually to the Ministry of Foreign Affairs and the competent Vietnamese authority on the organization's activities in Vietnam.

This reporting regime is implemented every 6 months on 15/6 and annually on 15/12 to the Ministry of Foreign Affairs and the relevant Vietnamese competent authority.

2. Can Foreign Research Organization Representative Offices Hire Vietnamese Employees?

Based on Clause 1 of Article 13 of Decree 06/2005/NĐ-CP, the rights of foreign research organization representative offices are as follows:

- After being granted a license, the representative office is permitted to rent offices and housing and to recruit staff in accordance with relevant Vietnamese laws;

- The representative office is protected under Vietnamese law and is allowed to open a special-purpose account (in foreign currency or in Vietnamese dong with foreign currency origin);

- The use of the representative office's seal shall be carried out in accordance with the current Vietnamese law on the management and use of seals;

- Equipment and vehicles necessary for the operation of the representative office shall be exempt from import tax in accordance with the current Vietnamese law.

At the same time, Clause 1 of Section V of Circular 10/2005/TT-BNG states as follows:

- After being granted a license, the RO is permitted to rent offices and housing and to recruit Vietnamese employees to work for the Office in accordance with Vietnamese law.

- The RO, the Head of the RO and the Office staff who are foreigners shall enjoy tax benefits in accordance with the current Vietnamese laws and regulations applicable to representative offices of international organizations in Vietnam.

Based on the above regulations, after being granted a license to establish a representative office, the foreign research organization has the right to recruit Vietnamese employees to work for the representative office in accordance with Vietnamese law.

3. Do Foreign Research Organization Representative Offices Enjoy Tax Incentives?

Based on Article 13 of Decree 06/2005/NĐ-CP, the rights of foreign research organization representative offices include Exemption from import tax on equipment and vehicles necessary for the operation of the representative office. The Head of the Representative Office and foreign staff of the Representative Office shall enjoy tax incentives in accordance with the current Vietnamese law applicable to representative offices of international organizations in Vietnam.

And at Clause 1 of Section V of Circular 10/2005/TT-BNG, it is stipulated as follows: The RO, the Head of the RO and the Office staff who are foreigners shall enjoy tax incentives in accordance with the current Vietnamese laws and regulations applicable to representative offices of international organizations in Vietnam.

Based on the above regulations, foreign research organization representative offices enjoy tax incentives in accordance with the current Vietnamese law applicable to representative offices of international organizations in Vietnam.

4. How Long Before Do Foreign Research Organizations Need to Apply for an Extension of Their Representative Office License?

Based on Article 9 of Decree 06/2005/NĐ-CP, the term of the License shall be determined on the basis of the request of the Foreign Organization but shall not exceed the term of operation of the cooperation research programs and projects of the Foreign Organization in Vietnam. If there is a need for extension, the Foreign Organization shall submit an application to the Ministry of Foreign Affairs at least 30 days before the expiration of the License.

Therefore, if a foreign research organization needs to extend its representative office license, it must submit an application to the Ministry of Foreign Affairs at least 30 days before the license expires. 

Please note that the term of the License is determined on the basis of the request of the foreign organization but does not exceed the term of operation of the cooperative research programs and projects of the foreign organization in Vietnam.

5. Which Authority Approves Requests to Modify the Content of a Foreign Research Organization Representative Office License?

Based on Article 10 of Decree 06/2005/NĐ-CP, when there is a need to amend or supplement the contents of the granted License, the Foreign Organization must submit a request to the Ministry of Foreign Affairs. The Ministry of Foreign Affairs shall consult with the competent Vietnamese authority and the People's Committee of the province or city where the Representative Office is located. If the amendment or supplementation is approved, the Ministry of Foreign Affairs shall record the supplemented content in the granted License or issue a new License to the Representative Office. If the amendment or supplementation is not approved, the Ministry of Foreign Affairs shall issue a notice to the Representative Office. The amendment or supplementation of the license referred to in this Article shall be carried out within not more than 30 days from the date the Ministry of Foreign Affairs receives the request of the Foreign Organization.

Therefore, when there is a need to amend or supplement the contents of the granted Representative Office License, a foreign research organization must submit a request to the Ministry of Foreign Affairs.

The Ministry of Foreign Affairs shall consult with the competent Vietnamese authority and the People's Committee of the province or city where the Representative Office is located.

IV. Legal Advisory Services Related to Foreign Research Organization Representative Offices

The above is all the detailed information that NPLaw provides to support our clients on the issue of foreign research organization representative offices. If you have any further questions related to the above or other legal matters, please contact NPLaw immediately for our team to directly advise and guide you on how to resolve them.