I. The need for cooperation and investment from international organizations

In the context of globalization, Vietnam has increasingly become an attractive destination for international organizations seeking opportunities in investment, development cooperation, and the implementation of technical, humanitarian or educational support programs. The operations of international organizations in Vietnam not only promote economic growth but also contribute to enhancing institutional capacity, governance, and sustainable social development.

II. Legal regulations on the operation of international organizations in Vietnam

1. Are international organizations allowed to operate in Vietnam?

Based on the legal nature, methods of establishment, and purposes, principles, and operational structures, international organizations can be defined as:

- Entities that primarily consist of independent and sovereign states, established and operating based on international treaties. They have organizational systems to maintain regular operations in accordance with their purposes and principles and possess distinct legal subject status under international law, separate from their member states and other subjects.

2. In what forms can international organizations operate in Vietnam?

International organizations may operate in Vietnam through the following forms:

- Establishment of representative offices (under Decree No. 07/2016/ND-CP for foreign commercial organizations);

- Direct investment through capital contribution, share acquisition, or establishment of foreign-invested enterprises (under the Investment Law 2020);

- Partnerships in technical assistance, education, and development programs (based on bilateral or multilateral agreements).

3. In which sectors are international organizations restricted or prohibited from operating in Vietnam?

According to Article 6 of the Investment Law 2020, international organizations are prohibited from operating in the following fields:

- Drug trafficking, fireworks, prostitution, human trafficking, and trading of human embryos;

- Activities involving human cloning or remains;- 

- Debt collection services;

- Production or use of special chemicals and minerals (except in special cases governed by specialized laws).

Additionally, international organizations are restricted from investing in conditional business sectors (Annex IV, Investment Law 2020) such as media, telecommunications, and education due to requirements relating to national security or cultural integrity.

III. Questions on legal regulations for international organizations

1. Can international organizations use foreign currency to invest in Vietnam?

According to the Law on the State Bank of Vietnam (2010) and related guidance documents, international organizations may use foreign currency for investment. However:

- Transactions must go through foreign currency accounts opened at Vietnamese commercial banks authorized for foreign exchange;

- Currency conversions and payments must comply with foreign exchange control regulations.

2. Which authority licenses international organizations to operate in Vietnam?

Depending on the form of operation:

- For representative offices:

+ Ministry of Foreign Affairs (for NGOs);

+ Provincial Departments of Industry and Trade (for foreign traders);

- For investment projects:

+ Department of Planning and Investment or Industrial Zone/Economic Zone Management Boards (pursuant to Articles 39 and 40 of the Investment Law 2020).

3. What are the requirements to establish a representative office of an international organization in Vietnam?

Under Article 7 of Decree No. 07/2016/ND-CP, requirements include:

- Having operated legally for at least one year from the date of establishment or registration;

- The office’s activities must align with Vietnam's international treaty commitments;

- The organization must be legally established or registered under the laws of a treaty-participating country or recognized by those countries;

- Having bylaws/documents proving its operations comply with Vietnamese law;

- A complete application dossier including:

+ Application form;

+ Copy of business license;

+ Organizational charter;

+ Appointment of chief representative;

+ Lease contract for the office premises;

- Approval from the Minister of the specialized managing ministry (if required).

4. Are international organizations exempt from taxes when operating in Vietnam?

According to the Law on Corporate Income Tax 2008 and the Law on Value-Added Tax 2008, international organizations are not automatically exempt from taxes. However, exemptions or reductions may be granted under:

- International treaties, or

- Bilateral/multilateral agreements signed or acceded to by Vietnam (e.g., technical assistance or aid agreements).

5. What are the regulations for employing foreign workers in international organizations in Vietnam?

Foreign workers in international organizations must comply with:

- Articles 151 and 152 of the Labor Code 2019;

- Decree No. 152/2020/ND-CP.

Specific requirements:

- Must have full civil capacity and appropriate qualifications;

- No criminal record;

- Must obtain a work permit from competent authorities (unless exempt);

- Justify the need for employing foreign labor and prove that Vietnamese workers cannot fill the position from organizations;

- Must sign a labor contract, service contract, or have a formal appointment decision;

- To be exempt from a work permit, a notification letter must still be submitted to the labor authority.

These regulations ensure transparency, control over the labor market, and protection of both domestic and foreign workers’ rights.

IV. Legal advisory services for international organizations

To ensure that international organizations operate in Vietnam in compliance with legal regulations and avoid potential risks, seeking support from legal advisory services is essential. NPLAW offers professional legal consultation services, including:

- Contract drafting;

- Legal clarification and guidance;

- Full assistance with administrative and licensing procedures.

This comprehensive support will help international organizations save time and ensure the success and legality of their operations.