On August 31, 2022, the Government issued Decree 58/2022/ND-CP (“Decree 58”) replacing Decree 12/2012/ND-CP (“Decree 12”) in order to amend and supplement regulations on registration and management of operation of foreign non-governmental organizations (“FNGOs”) in Vietnam. Decree 58 has various changes compared to the provisions of Decree 12, specifically as follows:
1. FNGOs do not make financial donations, sponsorships and fundraising from Vietnamese organizations and individuals
This is not a new content, but is clearly and specifically afirmed for the first time in the definition of FNGO in Article 3.1 of Decree 58.
2. Information and data on FNGOs to be stored in Vietnam
This is a new content being consistent with the Cybersecurity Law 2018 that took effect from January 01, 2019, which has been clarified by ATA in the Legal Update of September 09, 2022.
Valued Clients can search the following link for more details: https://ata-legal.com/personal-data-owned-or-created-by-service-users-in-vietnam-must-be-stored-in-vietnam.
3. Multiple changes in the operation form of FNGOs in Vietnam
Previously, in Decree 12, FNGOs were allowed to register and operate in Vietnam in three forms: 1- Operation Registration Certificate; 2- Project Office Registration Certificate; and 3- Representative Office Registration Certificate. In which, the Project Office Registration Certificate and the Representative Office Registration Certificate shall only be considered for issuance when FNGOs has been previously granted an Operation Registration Certificate. In addition, in order to register the establishment of a representative office, FNGOs must further satisfy the following condition that it has operated effectively in Vietnam for at least 02 years.
Decree 58 has various changes related to the operation form of FNGOs in Vietnam, specifically:
(i) Abolish the registration form and procedures for setting up a Project Office. Accordingly, FNGOs shall operate in Vietnam in only two forms: 1- Operation Registration Certificate (operating through a representative, not establishing and maintaining an office in Vietnam) and 2- Representative Office Registration Certificate (establishing and maintaining an office in Vietnam).
In addition, FNGOs are allowed to choose either form at the beginning, rather than having to register for operation in advance as prescribed in Decree 12.
(ii) Changes in conditions to be granted a Registration Certificate in Vietnam:
- Add 02 more conditions to be granted an Operation Registration Certificate:
+ FNGOs must have specific proposals on expected programs, projects and non-projects to support development and humanitarian aid in Vietnam within 3 years; and
+ Must assign a representative in Vietnam.
- Changes in conditions to be granted a Representative Office Registration Certificate:
+ An Operation Registration Certificate is no longer required;
+ 2-year period of operation in Vietnam is no longer required;
+ In addition to the general conditions, in order to establish a representative office, FNGO needs to meet the following two essential conditions: (i) Having a commitment to long-term operation in Vietnam and detailed statistics on the programs and/or projects that will be implemented in Vietnam for at least 05 years in one or more localities where the scale and nature of such programs and/or projects requires regular and on-site management and supervision; and (ii) Having a proposal for the Head of the Representative Office in Vietnam.
4. Operation period of an FNGO
The operation period of an FNGO depends on the term of its Registration Certificate. Accordingly, the operation period of an FNGO is up to 03 years (in case of an Operation Registration Certificate) and up to 5 years (in case of a Representative Office Registration Certificate). This time limit may be extended but must not exceed the time limit for operation registration of the FNGO according to the law of the place where it is established.
Decree 58 shall come into force from November 1, 2022.
Comment: