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Vietnam Legal Risks

The authorities did not strictly enforce residency laws for the entire population, and migration from rural to urban areas continued unabated. However, moving without permission prevented individuals from obtaining legal residency, public education, and health services. There is evidence that court decisions on commercial matters are often ignored when the party concerned can use informal channels of influence (e.g. bribes) to prevent the enforcement of the judgment. According to KPMG and the Economist Intelligence Unit, the legal system is full of conflict and overlap, which in many cases presents opportunities for corruption. The Heritage Foundation 2010 also notes that due to widespread corruption in the judicial system, contracts are poorly enforced. Pre-trial detention: The authorized length of pre-trial detention varies between three and 16 months, depending on the offence. There were no standard legal or administrative requirements as to when suspects should be brought before a bailiff. Depending on the seriousness and nature of the offences, these time limits vary.

In cases of particularly serious crimes, including national security cases, the law allows detention “pending the conclusion of the investigation.” Decree 15 also provides a legal framework for “unsolicited projects”, under which foreign investors can propose the implementation of a project to the relevant ministries and local authorities for review. Two cases of FCPA violations highlight the risks of corruption related to business in Vietnam. Many foreign investors come to Vietnam with little or no knowledge of the local environment. As such, they often have to rely on local agents, advisors and suppliers to communicate with government officials and generally navigate the business environment. While such a practice is inherently harmless, it can easily become a violation of the FCPA if proper oversight is not maintained. Vietnam is one of the most progressive countries in Southeast Asia for LGBT rights. In 2015, Vietnam abolished regulations that prevented same-sex marriage. Vietnam has also passed a law allowing transgender people to undergo sex reassignment surgery and register under their preferred sex.

But despite legislative reforms, cultural discrimination against the LGBT community persists. Corruption: Corruption is widespread throughout Vietnam and permeates the activities of the many state-owned enterprises that still dominate strategic sectors of the economy. In order to attract foreign investment, the government is trying to fight corruption, and the legal framework for this is now in place. Although Vietnam has one of the most comprehensive anti-corruption laws in Asia, the implementation and absence of independent anti-corruption authorities is still a major weakness in reducing corruption. The new Labour Code broadens the definition of “employment relationship” so that there is a legally valid employment relationship in which two parties agree on a document containing a description of working conditions, wages, management and supervision. The Code provides for the possibility that if a contract with an “independent contractor”, “service provider”, “freelancer” or other informal agreement between two or more parties contains terms similar to those of employment, it may be recognized as a formal contract of employment. The new Labour Code also restricts the repeated use of fixed-term contracts. The law extends protection to part-time workers and domestic workers. UK companies should not engage in activities that are considered bribery under UK bribery laws. Not only are there business integrity issues to consider, but it`s also illegal. Corruption, without exception, is associated with a lack of professionalism and oversight, all of which adversely affect long-term operations. International child abduction: The country is not a party to the 1980 Hague Convention on the Civil Aspects of International Child Abduction.

See the U.S. Department of State`s annual report on international parental child abduction in www.travel.state.gov/content/travel/en/International-Parental-Child-Abduction/for-providers/legal-reports-and-data/reported-cases.html. The law allows citizens to run as candidates for the National Assembly and submit nominations for the VFF election review process. In the months leading up to the 2016 parliamentary elections, an informal coalition of right-wing reformers, academics, activists, and human rights defenders sought to register as self-proclaimed candidates and not “militant independents” of the CPV. Unlike the party`s candidates, these candidates actively used Facebook and social media to promote their political platforms. VFF officials, however, refused to nominate any of these candidates, and authorities asked state media to criticize some of them. According to press reports, the VFF allowed two self-proclaimed candidates on the final ballots, but both were party members. Vietnam is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Foreign and domestic arbitral awards are legally enforceable in Vietnam.

The government restricted and disrupted internet access, censored online content, imposed penalties for online expression, and monitored private online communications without legal authorization. The limited number of authorized ISPs were wholly or essentially state-controlled corporations. The government monitored Facebook posts and punished those who used the internet to organize protests or post content critical of the government. On July 7, a court in Lam Dong province sentenced Facebook user Nguyen Duc Quoc Vuong to eight years in prison for anti-state propaganda. According to state-sponsored media coverage, Nguyen created a Facebook account to post and share numerous articles on Facebook with “anti-state” content that allegedly “defamed the Party, the state and President Ho Chi Minh.” Vietnam`s regulatory and investment regime is complex. There are new investment and business laws aimed at improving processing times for investment registrations and business start-ups, but it remains to be seen whether there will actually be improvements. Under previous investment and corporate laws, registration took an average of three to eight months from preparation to approval. Once a local entity is formed, it is subject to a range of other regulations, such as tax and accounting requirements, labor issues, and other filings. Regulatory requirements can be onerous in that they require regular submissions to government agencies. Many business licenses may need to be obtained or renewed.

Vietnamese regulations for businesses sometimes seem to be too burdensome. For example, all promotions (such as discount programs, raffles, and loyalty programs) must be registered with the local Ministry of Industry and Commerce. These extensive administrative procedures create additional costs and time for a company. In addition to the onerous and complex nature of Vietnamese laws, they are also often vague, leaving them subject to different interpretations. Although there is a significant administrative burden for most foreign companies trying to comply with Vietnamese laws, at the same time, enforcement is weak for various reasons. Therefore, foreign investors may be tempted to pursue non-compliant options in Vietnam as they watch other companies seemingly do so with impunity. In the long term, however, the risks of non-compliance far outweigh the tax, commercial and other benefits that result from non-compliance. This situation is exacerbated when representative office employees are illegally sent to work in their distributor`s offices (Vietnamese law does not support such agreements) or when an advertising campaign is conducted, such as a cash rebate program. Since the law expressly prohibits representative offices from conducting promotional campaigns, many foreign representative offices carry out all aspects of promotion, with the exception of the delivery of payment or promotional material to customers, which is carried out by local partners or distributors. Movement in the country: Several political activists on probation or under house arrest, as well as others who do not face such legal restrictions, have been officially restricted in their movements.

The authorities continued to monitor the freedom of movement of many prominent activists and religious leaders, including Nguyen Dan Que, Pham Ba Hai, Nguyen Hong Quang, Thich Khong Tanh, Tran Ngoc Suong, Le Cong Cau, and Duong Thi Tan. The authorities continued to prevent activists from travelling by preventing them from leaving their homes during events likely to attract significant public attention. Several activists reported that the authorities confiscated their national identity cards, preventing them from travelling within the country by plane or dealing with routine administrative matters. Since it was illegal to form or attempt to form independent trade unions before the new labour legislation, there were no registered national NGOs involved in organizing workers. However, unregistered local NGOs supported efforts to raise awareness of workers` rights and occupational safety and health issues, and to support internal and external migrant workers.