D. ANNEX IV: LEGISLATION

REGULATIONS ON THE OPERATION OF
FOREIGN NON-GOVERNMENTAL ORGANISATIONS IN VIETNAM

Promulgated in accordance with
Decision No.340/TTg dated 24 May, 1996 of the Prime Minister

CHAPTER 1

GENERAL PROVISIONS

Article 1

Foreign Non-Governmental organisations, hereinafter referred to as NGOs, to be allowed to conduct development or humanitarian assistance activities in Vietnam which are not for profit or other purposes shall require permission from the Government of Vietnam in the forms of: permit for Operation, permit for the Establishment of Project Office, or Permit for the Establishment of Representative Office.

Article 2.

NGOs shall be considered for Permit for Operation when meeting the following conditions:

1. Have legal person status according to the laws of their countries of origin or of the countries where their headquarters are based.
2. Have clear statutes, mandates and objectives
3. Have conducted or plan to conduct development or humanitarian projects and/or programs in Vietnam which are in line with the socio-economic development policies of the Vietnamese State; be committed to abide by Vietnamese laws and to respect the traditional customs and habits of Vietnam.

Article 3

NGOs shall be considered for Permit for the Establishment of Project Office when meeting the following conditions:

1. Meet the requirements in Clause I, and Clause 2 of Article 2 of the present Regulations.
2. Have projects and/or programs already approved by competent authorities of Vietnam and their scope and nature require regular, on-site administration and supervision.

Article 4

NGO shall be considered for Permit for the Establishment of Representative Office in Hanoi when meeting the following conditions:

1. Meet the requirements in Clause I, and Clause 2 of Article 2 of the present Regulations.
2. Have conducted effective assistance programs and/or projects in Vietnam for at least 2 years.
3. While operating in Vietnam, always abide by the laws, traditional customs and habits of Vietnam.
4. Have feasible long-term (two years or more) assistance projects and/or programs in Vietnam having been approved by the competent authorities of Vietnam.

Article 5

The agency authorized to consider the issuance, extension, amendment or withdrawal of the above mentioned Permits shall be the Commission for Non-Governmental Organisations Affairs (hereinafter referred to as the Committee). The standing body for the foreign Nan-Governmental affairs of the Committee shall be the Vietnam Union of Friendship organisations (hereinafter referred to as the Union).

CHAPTER II

PROCEDURES FOR ISSUANCE, EXTENSION, AMENDMENT
AND WITHDRAWAL OF PERMITS

Article 6

A. Documents in application for Permit for Operation in Vietnam shall include.

1. Application letter signed by the leader of the NGO in Vietnamese and in English (or French) sent to the Committee, addressing the following main questions:

• Full name of the organisation, address of its headquarters
• Mandate and objectives
• Background of the organisation
• Financial sources and budget
• Programs, projects and plan of activities in Vietnam

2. Statutes of the NGO

3. Document certifying the NGO’s legal person status issued by a competent authority of the country where the organisation is established or headquartered, or a notarized copy.

B. Documents in the application for Permit for the Establishment of Project office shall include, apart from those stated in Clause of this Article:

1. A clear statement in the application letter of the reason for the establishment of the Project Office, intended location of the Project Office; number of expatriates and Vietnamese staff needed for the operation of the Office.
2. Program and/or project documents which have been approved by competent authorities of Vietnam.
3. Curriculum vitae of the person intended to be the Chief of the Project Office.

Article 7

Documents in application for Permit for the Establishment of Representative Office in Hanoi shall include, apart from those stated in Cause a. of article 6 of the present Regulations:

1. A clear statement in the application letter of the reason for the establishment of the Representative Office; intended number of expatriates and Vietnamese staff needed for the Representative Office.
2. Annual reports of activities in Vietnam of at least the latest two years.
3. Program and/or project documents having been approved by competent authorities of Vietnam.
4. Curriculum vitae of the person intended to be appointed as the Representative; introduction to the post by the leader of the NGO.

Article 8

After receipt of proper documents, within thirty (30) days for Permit for Operation, sixty (60) days for Permit for the Establishment of project Office; and ninety (90) days for Permit for the Establishment of Representative office, the Committee shall inform the concerned NGO of the result.

Article 9

The term of a first Permit shall:

• Be not more than six months for Permit of Operation for NGOs coming to conduct appraisals and design projects and/or programs
• Be not more than one year for Permit for Operation for NGOs having been conducting aid programs and/or projects in Vietnam
• Be not more than two years for Permit for Project Office
• Be not more than three years for Permit for Representative Office

If there is need for extension, NGOs shall have their application sent to the Committee at least thirty (30) days prior to the expiry of the Permit. The team of each extension shall not exceed that of the first Permit.

Article 10

Within thirty (30) days as of the issuance of extension of permit, NGOs shall have to complete registration procedures with the People’s Committees of relevant provinces or central-administered cities.

Article 11

NGOs wishing to amend the issued Permit, such as changes of related to appellation, location of the Project Office or Representative office, Chief of the Project Office or Chief Representative, size of the staff and modification of scope and content of activities, shall have the application sent to the Committee and co-concern the People’s Committees of the provinces or centrally-administered cities where they operate or their Project office or Representative Office is based.

Within thirty (30) days as of receipt of the application, the Committees shall respond to the concerned NGOs in writing

Article 12

Project offices, representative offices and NGOs with Permit for Operation shall terminate their activity in the following cases:

Expiry of permit

Decision of withdrawal of permit by the Committee as stipulated in Clause b of Article 17 of the Present Regulations.

A Permit for the Establishment of Project Office shall by nature terminate upon termination of the assistance program and/or project. A permit for the establishment of Representative Office shall likewise by nature terminate when nothing is left of the activities stated by the NGO in the Application for Representative Office.

Within thirty (30) days of the date of expiry of the Permit, or receipt of advice on the termination of operation, NGOs shall have to settle all questions concerning office, housing, employees, working facilities, debt repayment (if any) and other issues related to institutions and individuals in Vietnam.

CHAPTER III

RIGHTS AND OBLIGATIONS OF NGOs IN VIETNAM

Article 13

Operations of NGOs in Vietnam shall, in terms of contents and scope abide by stipulations in the issued Permit.

Article 14

The Chief Representative of a Representative Office, the Chief of the Project Office or the authorised person(s) of NGOs for the operation in Vietnam (in case of Permit for Operation) shall be accountable for all and every activity of the NGO in Vietnam.

Every three (3) months, the person(s) authorised by the NGO to be Representative(s) or Chief of Project Office, and every six (6) months, the Chief Representative of Representative office shall report in writing to the Committee on the operations of the NGO in Vietnam, and shall report, and provide documentation or explanation on matters related to the operation of the NGO to the Committee whenever requested.

Upon completion of a project or fiscal year, NGOs shall have a final report sent to the Committee, the project holder agency (Ministry, line agency, central office of People’s organisation, People’s Committee of province or centrally-administered city).

Article 15.

1. Upon receipt of a permit for the Establishment of a project Office or Representative Office, NGOs shall be entitled to rent office, and housing and to employ Vietnamese citizens to work at the office according to stipulations by the Law of Vietnam;
2. Expatriate Representatives and staff of NGOs (with assistance programs and/or projects implemented in Vietnam) shall be entitled to open expenditure bank accounts (in foreign currency or in Vietnam Dong with foreign currency rooting) at banks established and operated in keeping with the Law of Vietnam.
3. The importation into Vietnam of necessary office equipment and supplies, vehicles and spare parts, and personal belongings to meet the working and living needs of the Representative Office and its expatriate staff shall abide by the current regulations of Vietnam.

CHAPTER IV

IMPLEMENTATION PROVISIONS

Article 16

Representative offices the establishment of which has been permitted by the Government of Vietnam prior to the issuance of the present Regulations shall not be subject to reconsideration or re-approval, but shall amend, finalise and submit the required documents within sixty (60) days as of the date the present Regulations come in force, and shall abide by the stipulations of the present Regulations.

NGOs having started their operations in Vietnam prior to issuance of the present Regulations shall, within sixty (60) days as of the date of the present Regulations come in force apply for a Permit for Operation, or they shall have to terminate their operations.

Working bodies of NGOs operating in Vietnam with an office and staff, but without permit from the Government of Vietnam shall, within sixty (60) days as of the date of the present Regulations come in force, follow procedures to apply for the establishment of a Project Office or Representative office in conformity with the stipulations of the present Regulations, or they shall have to terminate their operation.

Article 17

1. Organisations and/or individuals with positive and effective contributions to development and humanitarian programs in Vietnam shall be appreciated and their merits acknowledged by the people and Government of Vietnam.
2. NGOs with activities not in conformity with the issued permit, or violating stipulations of the present Regulation shall, depending on the gravity of the violation, have their operation partially or completely suspended, or their Permit withdrawn by the issuance agency. All and every violation of the Law of Vietnam by NGOs and their staff shall be treated according to the Law of Vietnam.

Article 18

The Committee for Non-Governmental Organisations Affairs shall be responsible for the implementation of the present Regulations and shall give relevant guidance to the concerned agencies and localities.

Article 19

Ministries, Central Agencies, People’s organisations, and People’s Committees of provinces and centrally-administered cities shall have their responsibility to guide, support and supervise the implementation of the present Regulations in keeping with their functions. In cases of evident violation of the present Regulations, they shall resolve them in time and according to their competence and report to the Committee.

Article 20

The present Regulations come into force of the date signing; all stipulations not in conformity with the present Regulations are now annulled.

PRIME MINISTER

Vo Van Kiet

GUIDELINES FOR THE IMPLEMENTATION OF THE REGULATIONS OF THE OPERATION

OF FOREIGN NON-GOVERNMENTAL ORGANISATIONS IN VIETNAM

Following decision No. 340/TTg dated 24 May, 1996 of the Prime Minister on the issuance of the Regulations on the Operation of Foreign Non-governmental organisations in Vietnam.

Following Decision no. 339/TTg dated 24 May, 1996 of the Prime Minister on the establishment of the Committee for Non-governmental organisations Affairs.

The Committee for Non-governmental Organisations Affairs (hereinafter referred to as the Committee) hereby addresses the guidelines for implementation of the regulations on the Operation of foreign Non-governmental organisations in Vietnam as follows:

I GENERAL PRINCIPLES

1. Foreign non-governmental organisations (NGOs) stated in Article 1 of the Regulations refer to non-governmental organisations, foundations, institutes, universities, learning centres, trustees, friendship associations established in countries other than Vietnam (including foreign individuals and Vietnamese overseas) coming to Vietnam in the aim to conduct development, humanitarian activities without profit-making purposes or others, shall have to get permission for operation according to the Regulation.

2. Types of permits:

a. Permit for Operation: permit for Operation is the recognition and permission given to NGOs to legally conduct appraisals, financing and implementation planning for development, humanitarian programs, projects in Vietnam or to implement development, humanitarian programs, projects through Vietnamese partners.

b. Permit for the Establishment of Project Office: Permit for Project Office is the technical and regular work station of an NGO or a Representative Office with programs, projects in remote areas with difficult and costly access to transportation; bearing the responsibility to manage one or several specific program(s) in the locality or region.

Project Office shall be based in program/project area, or in a locality which avails itself of favourable conditions for the supervision of program, projects upon the approval of that local authority.

c. Permit for the establishment of Representative office: permit for Representative Office is the official recognition to the regular presence and representation of one NGO covering all its action plans in Vietnam.

Representative Office of NGOs shall be based in Hanoi.

II CONDITIONS FOR THE CONSIDERATION AND ISSUANCE OF PERMITS AND PROCEDURES FOR APPLICATION, EXTENSION, AMENDMENT AND WITHDRAWAL OF PERMITS

1. The competent authority stated in point 3, Clause a, Article 6 of the Regulations refers to the agency that is responsible for legal procedures for the operation registration or permission for operation in its country or where its headquarters are based. Apart from the conditions stated in Article 3 of the Regulations, NGOs with effective on-going programs, projects shall be given priority in the consideration of issuing Permit for the Establishment of Project Office.

2. Representative Office stated in Articles 6 and 7 of the Regulations refers to the number of program officers, staff who will work on a regular basis at the Project Office or Representative office within the valid period of the Permit.

3. Chief Representative Office, Project office and the persons authorised by NGOs stated in Articles 6, 7 and 14 of the Regulations shall be introduced by the leaders of the NGOs in writing to be considered and accepted by the Committee.

4. The location of project Office stated in the application for the Project Office shall be on the basis of provinces, centrally-administered cities. Project Office shall be based in a provincial or a district capital which avails itself of favourable conditions for the supervision of programs, projects after having been agreed upon by the provincial authority.

5. The competent authorities for the approval of programs, projects stated in Article 7 of the Regulations shall, for the time being, be addressed in accordance with Decision 80/CT dated 28^th March, 1991 of the Chairman of the Ministers’ Council (now being the Prime Minister) and delegated as follows:

• Programs, projects of under 50,000 United States dollars (USD) are to be considered and decided by Ministers or Chairs of People’s Committees of provinces and centrally-administered cities.
• Programs. Projects of from 50,000 USD to 200,000 USD are to be considered and approved by the Ministry of Finance (given proper consultation with the Vietnam Union of Friendship Organisation).
• Programs, projects of over 200,000 USD are to be considered and approved by the Chairman of the Ministers’ Council (now being the Prime Minister) upon the recommendations after mutual consultation by and between the Ministry of Finance, State Planning Committee (now being the Ministry of Planning and Investment ) and the Vietnam Union of Friendship Organisations.
  Project partners under line agencies and localities (for programs, projects of under 50,000 USD) and project holder agencies (for programs, projects of over 50,000 USD) bear the responsibility to complete all procedures relating to the presentation for approval of project/programs according to the above-mentioned delegation, as well as be accountable for the use of the funded capital and management of programs, projects.

6. The Committee shall inform concerned NGOs of the results of applications according to the time stipulated in Article 8 of the Regulations. While waiting for the consideration and acceptance of the Committee, NGOs with on-going programs, projects are permitted to temporarily operate as stated in their letters of application.

7. The issuance of permit for the establishment of representative office shall be done right after a Memorandum of Understanding (MOU) is signed by and between the concerned NGO and representative of the Committee. The Union shall be the agency responsible for drafting, discussion and agreement with the NGO concerning the details of the MOU.

8. Within thirty (30) days from the date of issuance of extension of Permits, Project Office, Representative Office of NGOs shall have to complete operation registration procedures at provinces, centrally-administered cities as stated in Article 10 of the Regulations. This registration shall be done through the body in charge of NGO assistance affairs of the concerned provinces or centrally-administered cities (list and contact addresses attached).

After completing operation registration procedures, the concerned NGO shall send a copy of the Operation Registration Form (Form 1 and Form 2 attached) to the Committee.

9. Upon receipt of proper application documents for the issuance, extension, amendment of Permit for Operation, Permit for the Establishment of Project Office, permit for the Establishment of Representative Office, PACCOM shall issue receipts.

III RIGHTS AND RESPONSIBILITIES OF NGOS IN VIETNAM

1. Responsibilities of NGOs

1. Chief of Representative Office, project Office or the person authorised by the NGO to act as its representative shall abide by the stipulations stated in Article 13,14 of the Regulations.
   Reporting: the time frame for regular reports (and upon-request reports) shall be as stipulated by the Regulations (15^th June and 15^th December every year for NGOs having been given Permits for the Establishment of Representative Office and the last day of each Quarter for NGOs with Permit for the Establishment of project Office and Permit for Operation). Project Office of a Representative Office shall comply with Representative office requirements. Requirements on the contents of regular reports of unified forms are to be sent to NGOs (Form 3, 4 attached).

Upon the completion of a project or at the end of each fiscal year, NGOs shall have their liquidation statements sent to the Committee, the project holder agency. The Committee shall request audits on the general financial activities of the Office and financial transactions of programs, projects when necessary.

2. Chief of Representative Office, Project Office or the person authorised as representative of NGOs bear the responsibility to assure that none of the staff or their NGOs conducts profit-making or other activities which are not related to those stated in the application letters for Permits. Staff of one NGO can only work regularly for another NGO only when permitted by that NGO and agreed upon by the Committee.
3. The person authorised by NGOs, Chief of Project Office and Representative Office bears the responsibility to assure that relatives and dependants of the staff of their organisations do not conduct technical, professional activities without seeking the approval of the Committee.

2. Rights of the NGOs

1. Staff of NGOs shall be facilitated in getting entry-exit visa for Vietnam.
2. Representatives and full time staff of Representative Office, Project Office being foreigners and their relatives (parents and parents-in law, spouse, children) are facilitated in obtaining entry visas according to current regulations of Vietnam.
   Basing on the needs of the programs, projects, consultants and advisers for specific programs, projects shall be considered and facilitated in obtaining entry-exit visas upon the needs defined in the programs, projects and current regulations of Vietnam.
3. Upon receipt of Permits for Project Office or Representative Office, NGOs are allowed to rent office space, housing, hire Vietnamese citizens to work in the Office in conformity with the regulations of the law in Vietnam. The number of foreign and Vietnamese staff working at the Office shall not exceed the number that is stated in the Permit. If a need for more staff is obvious, it shall be permitted by the Committee.
4. Representative and staff being foreigners of NGOs (when having assistance programs, projects) can open expenditure bank accounts (in foreign currencies or in Vietnamese Dong with foreign currency rooting) at banks established and operated alongside with the law of Vietnam.
5. Tax-exempt importation of commodities, materials, equipment and vehicles for programs, projects having been approved by competent authorities of Vietnam shall be facilitated, and carried out by the Vietnamese project holder agencies basing on the project agreements. All and every importation of commodities limited by Vietnam shall be approved by the Prime Minister prior to importation.
6. Representative Office and staff being foreigners shall be allowed to import with tax exemption, according to current regulations of Vietnam for foreigners, the following commodities and equipment:
   - Equipment, supplies, materials and vehicles needed for the operation of the Office in Hanoi according to current regulations of Vietnam.
   - Equipment, facilities and personal effects for the Representative and international staff within the first six months after their arrival in Vietnam.
7. Representative and staff being foreigners shall be allowed to re-export with tax-free of commodities and equipment stated in Clause f.
8. Chief of project Office and foreign staff are allowed to import with tax exemption and tax-free re-export of certain office equipment and facilities, personal effects alongside with the regulations of the Customs office of Vietnam. The Committee shall consider this on a case to case manner.
9. Officers, staff being foreigners of NGOS enjoy income tax exemption if all payments are made from external sources.

IV MECHANISM OF ADMINISTRATION, MONITORING AND VIOLATION MANAGEMENT

1. NGOs shall abide by the stipulations in Articles 16,17, Chapter IV on Implementation Provisions of the Regulations. Cases of delay due to lack of information shall be specifically considered.
2. People’s Committees of provinces, cities where NGOs operate or Project Offices, Representative Offices are based, bear the responsibility to facilitate and administrate the activities of NGOs (including administration and facilitation of housing, hiring staff, registration procedures according to current regulations and all activities of NGOs in the locality).

Line ministries, central agencies, People’s Committees of provinces and centrally-administered cities shall give guidelines, assistance and supervision the implementation of the Regulations according to given authorities. Every case of violation shall be addressed and reported to the Committee accordingly. Every merit of NGOs shall be reported tot he Committee so that deserving acknowledgement could be given.

Source: Vietnam NGO Directory 1998/99