Rights of a representative office of foreign traders in Vietnam

Hi DMS Law office in Vietnam! Can a representative office (RO) of a foreign trader recruit local employees or expat experts ?  Can a representative office open a Vietnam Dong bank account ? Can a representative office enter into sale contracts ?  Can you advise me about rights of a representative office ? 

Hi!

Rights of a representative office of foreign traders in Vietnam

To carry out their designated functions within the scope and duration stipulated in their establishment license;

To rent offices, rent and purchase equipment and facilities necessary for the representative office’s operations;

To recruit Vietnamese and expatriate employees to work for the representative office according to the provisions of Vietnamese law;

To open foreign currency account or Vietnam dong account with foreign currency sources at banks licensed to operate in Vietnam, those accounts are only permitted to use solely for the representative office’s operations;

To have seals bearing the representative office’s name according to the provisions of Vietnamese law;

To have other rights as prescribed by law.

Obligations of a representative office of foreign traders in Vietnam

Not carry on direct profit-making activities in Vietnam;

Only conduct commercial promotion activities within the scope permitted by this Law;

Not enter into contracts, not to amend or supplement contracts already entered into by foreign traders, except where chief representatives obtain valid letters of authorization from foreign traders or other cases specified in Clauses 2, 3 and 4, Article 17 of this Law;

To pay taxes, fees and charges, and fulfill other financial obligations provided for by Vietnamese law;

To report on the representative’s operations according to Vietnamese law;

To have other obligations as prescribed by law (Articles 17 and 18 The Commercial Law No. 17/VBHN-VPQH dated 05 July 2019).

Related topics:

Invest to set up a representative office in Vietnam

Establish commercial presence of foreign company in Vietnam

Establish representative office of foreign company in Vietnam

Consulting services: 

Phone: 0914 165 703 or Email: dmslawfirm@gmail.com 

Rights of a representative office of foreign traders in Vietnam