Definition and Classification of Cosmetics in Vietnam

The definition of cosmetic in Vietnam regulations is currently compatible with the definition of ASEAN Cosmetic Convention provided in Article 2.1 of Schedule B of ASEAN Cosmetic Directive. Accordingly, cosmetic product is a substance or a preparation which is used for touch with outside parts of human body (skin, hair system, finger nails, toenails, lip, and outside reproduction organ) or teeth and mouth mucous membrane with main purpose in order to cleanse, aromatize, change the outward characteristics, form, adjust body’s smell, safeguard body, or maintain the human body in good condition.

For the classification of cosmetic, under the current Vietnam regulations, the criteria for the classification of cosmetic products based on the features, uses, recipe ingredients, route of administration of the product and the definition of cosmetic. Namely, beauty products are classified into 20 groups of products as the following:

• Creams, emulsions, lotions, gels and oils for skin (hands, face, feet, etc.)
• Face masks (with the exception of chemical peeling products)
• Tinted bases (liquids, pastes, powders)
• Make-up powders, after-bath powder, hygienic powders, etc
• Toilet soaps, deodorant soaps, etc.
• Perfumes, toilet waters and eau de Cologne
• Bath or shower preparations (salts, foams, oils. gels, etc.)
• Depilatories
• Deodorants and anti-perspirants
• Hair care products include: hair tints and bleaches, products for waving, straightening and fixing, setting products, cleansing products (lotions, powders, shampoos), conditioning products (lotions, creams, oils), hairdressing products (lotions, lacquers, brilliantines)
• Shaving product (creams, foams, lotions, etc.)
• Products for making-up and removing make-up from the face and the eyes
• Products intended for application to the lips
• Products for care of the teeth and the mouth
• Products for nail care and make-up
• Products for external intimate hygiene
• Sunbathing products
• Products for tanning without sun
• Skin whitening products
• Anti-wrinkle products

Besides, some products are not classified as cosmetic as the following:

• The product permanently adjust, restore or alter the function of the body by the immune mechanism, metabolic or pharmacological mechanism
• Products sweetened oral, injection or contact with other parts of the body (i.e. the nasal mucous membranes, genitals in, …)
• The mosquito, air fresheners, fabric softeners, water, toilet bowl cleaner, liquid oxygen aging, alcoholic antiseptic 70 0,90 0 alcohol, product Clean dentures are not exposed to the oral cavity, false eyelashes, eye cleaning solution/nose/ear protection products nasal congestion, anti-snoring products, vaginal lubrication gel, ultrasound gel, the exposure in genital, rectal enema, anesthesia, reduce/ control the swelling/edema, dermatitis treatment, hypoallergenic, anti-fungal, anti-viral, stimulates hair growth products/grow eyelashes products removed/reduced fat/reduced fat/reduced body size, weight loss products, prevent/stop the growth of hair, the process stops sweating, permanent tattoo ink, product remove scars, keloids reduction, wound cleaning products.
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When Will Foreigner Need to Obtain Criminal Record?

In the process to grant the work permit for foreigner working in Vietnam, it is required the foreigner to have the criminal record in their dossier.

Foreigner applying for criminal record to obtain work permit in Vietnam is divided into 2 cases.

In the first case, foreigner who is in foreign country or in Vietnam less than 06 months has to apply for criminal record in foreign country. The laws of each country are not the same therefore the regulation on criminal record application is also different.

Also please note that the criminal record which is issued by another country, when using in Vietnam to apply for work permit, it must be translated, legalized and notarized in accordance with the law of Vietnam.

In the second case, foreigner temporarily residing continuously in Vietnam for 06 months or above can apply for criminal record in Vietnam. In Vietnam, the competent authority that granting the criminal record for foreigner is the Department of Justice of the province or city where foreigner is residing.

For example, Peter is an Australian and currently living in Hanoi, Peter must go to the Department of Justice in Hanoi to apply for criminal record. If Peter is temporary residing in Bac Ninh, he must go to the Department of Justice in Bac Ninh to apply for criminal record.

Source: ANT lawyers

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Which Form of Investment – Branch or Company?

Foreign entities can set-up company or branch offices in Vietnam to carry out business activities.

There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam.

Conditions

• Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.
• Foreign enterprise must choose between establishing a 100% foreign capital enterprise or forming a joint-venture with domestic investor or company.

Certificate

• The Branch office needs to apply and obtain the operation license of a Branch;
• A foreign owned company will need to apply and obtain the investment certificate (“IC”) to operate in Vietnam.

Capital

• Optional, foreign entity will decide how much money to invest in branch. The allocation capital for branch is capital for the subordinate units.
• Mandatory, foreign entity will need to provide minimum capital as required by Vietnam Law in conditional investment area.

Obligation of owner

• For branch office in Vietnam, owner takes full responsibility;
• For company, owner takes responsibility within the capital contributed into the company in Vietnam;

Other matters

• For branch office setting up in Vietnam, the procedure is less complicated compared to those for the establishment of a 100% foreign owned company;  the branch office is able to carry out trading and some other activities as stipulated by Vietnam laws and the WTO commitments which Vietnam enters.  The business lines of a branch have to be aligned with the business lines of the headquarter of the foreign entity.
• Setting up foreign owned company would be more complicated than the setting up of the branch office, however this form of investment has more flexibility and freedom as it is a stand alone Vietnam entity recognized under Vietnam laws.

Source: ANT lawyers (http://www.antlawyers.vn/)

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Vietnam to boost enforcement of civil court decisions next year

HCMC – The Ministry of Justice will step up the enforcement of civil court decisions next year, especially those related to the banking sector.

To this end, the ministry will focus on improving regulations on implementation of civil and administrative court decisions, consolidating staff, improving receipt of complaints from citizens, and boosting the use of advanced technology, according to a newly-issued plan for 2017.

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Civil Matters

Dispute Resolution

Deputy Minister Tran Tien Dung said the successful execution of civil court decisions concerning the banking sector will help facilitate provision of credit for enterprises and citizens.

One of top solutions for next year’s plan is to boost administrative reform and application of high tech to cut time and cost and ensure transparency of information.

According to the ministry, nearly 530,430 civil court decisions have been enforced this year, up 8.53% higher than the original target.

Source: The Saigon Times

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Major realty firms to be inspected

HANOI - The Ministry of Construction is going to inspect a dozen real estate companies, including major ones, a source told the Daily.

Through the periodical checks, inspectors of the ministry will clarify some issues concerning the operations of realty firms, such as their observance of law and policies on planning, quality management and real estate business in 2011-2016.

Reportedly, among the 12 property firms to be examined are those of significant scale such as Vingroup, Sun Group, FLC, Hoa Binh Group, Novaland, Muong Thanh Group, Tan Hoang Minh Group, Bitexco Group, Empire Group, Dai Quang Minh, Phu My Hung Corporation and Nam Thang Long (Cipurtra). Each of these enterprises will undergo a month-long inspection.

In particular, the ministry will look into projects of Muong Thanh Group in Hanoi and Khanh Hoa Province, Bitexco’s projects in HCMC, Cocobay Danang project of Empire, and Dai Quang Minh’s construction of four main roads in Thu Thiem New Urban Area in HCMC.

Such inspection is a regular activity of the Ministry of Construction. Nevertheless, this inspection plan has stoked public curiosity and attention since some real estate projects have recently stirred up public concerns. Particularly, Muong Thanh Group has just been examined, with a number of irregularities detected such as violating height limits.

Speaking at a review conference for 2016 last Friday, Deputy Minister of Construction Le Quang Hung said the Government had assigned his agency to review urban planning. The ministry has already ordered inspections into controversial projects in Hanoi this week.

Source The Saigon Times

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Foreign firms expand presence in retail market

HANOI – Foreign companies are establishing a stronger presence on the fast growing Vietnamese retail market, according to a report which the Ministry of Industry and Trade released last Friday.

Foreign direct investment enterprises now hold a 17% retail market share in the segment of shopping centers and supermarkets, 70% in convenience stores, 15% in minimarts, and around 50% in online, TV and phone shopping, said the report.

These percentages are not too high but the rising presence of foreign investors in the retail market can be seen in major cities. For instance, Thailand’s Central Group has taken over the entire stake of France’s Casino Group in Big C Vietnam, and another Thai conglomerate, TCC Holding, has acquired Metro Cash and Carry Vietnam.

Other foreign business groups such as South Korea’s Lotte and Japan’s Aeon have been steadily expanding, with plans to double or triple their stores in Vietnam in the coming years.

The swift expansion of foreign firms has piled pressure on local retailers. Domestic goods suppliers have also felt the pinch as foreign retailers are developing their own goods brands for sale at their stores.

According to the Ministry of Industry and Trade, total retail sales of goods and services last year rose 10.2% year-on-year to VND3,530 trillion (US$156.7 billion).

Business-to-customer (B2C) transactions were estimated to double from the US$2.2 billion recorded in 2013.

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Thailand issued the final determination in the antidumping investigation against imports of Certain stainless pipe and tube from certain countries including Vietnam

On 26 September 2016, Vietnam Competition Authority received the information from Vietnam Trade Office in Thailand that the Department of Foreign Trade (DFT) under Ministry of Commerce of Thailand published the final determination of the antidumping investigation against imports of Certain stainless pipe and tube from Korea, China, Taiwan and Vietnam

-  Date of initiation: 17 September 2015

- Subject product: stainless pipe and tube under HS: 7305.31.10.000; 7306.11.10.000; 7306.11.90.000; 7306.21.00.000; 7306.40.10.010; 7306.40.10.020; 7306.40.20.010; 7306.40.20.020; 7306.40.30.010; 7306.40.30.020; 7306.40.90.010; 7306.40.90.020; 7306.61.00.021 and 7306.61.00.022

In the final determination, the antidumping margin applicable to exporters of Vietnam is 310.74%.

Earlier, on 7 July 2016, DFT issued notice of essential facts and announced about holding a public hearing for the case.

Source Vietnam Competition Authority

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For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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Australia Antidumping Commission (Department of Industry, Innovation and Science) initiation of an Investigation into Alleged Dumping and subsidisation on Zinc Coated (Galvanised) Steel Exported from the Republic of India, Malaysia and Vietnam

 On October 7, according to the information received by Vietnam Competition Authority from Vietnam Trade Office in Sydney, Australia Anti-dumping Commission (Department of Industry, Innovation and Science) initiation of an Investigation into Alleged Dumping and subsidisation on Zinc Coated (Galvanised) Steel Exported from the Republic of India, Malaysia and Vietnam (Malaysia is subject to the anti-dumping investigation only).

Earlier, on 22 August 2016, an application was lodged by BlueScope Steel Ltd, a manufacturer of zinc coated (galvanised) steel (the goods) in Australia. The application seeks the publication of a dumping duty and a countervailing duty notice in respect of the goods exported to Australia from India, Malaysia and Vietnam.

Background:

1. Petitioner: BlueScope Steel Ltd.

2. Subject product:

- Zinc coated/ galvanized steel

- HS: 7210.49.00, 7212.30.00, 7225.92.00 and 7226.99.00.

3. Period of investigation of dumping and subsidisation: 01/7/2015 – 30/06/2016

4. Period of investigation of injury: từ 01/7/2012

5. Alleged dumping margin: 27,2%

6. Estimated subsidy margin: Above negligible level

7. Investigated subsidy programs: preferential import tariff rates, support for projects manufacturing priority industrial products; incentives contingent upon export performance; incentives for domestic businesses; incentives for foreign invested enterprises; export promotion; trade promotion; preferential credit; assistance for commercial development in mountainous, island and ethnic minority areas;assistance to enterprises facing difficulties due to objective reasons; incentives for investment projects in science and technology; incentives on corporate income tax; incentives on non-agricultural land.

8. Injury: The application alleges that the goods have been exported to Australia at prices less than their normal value and were in receipt of countervailable subsidies and that the dumping and subsidisation has caused material injury to the Australian industry through: price suppression, reduced sales revenue, reduced profit and profitability, reduced employment,  reduced return on investment

This is the 7th dual anti-dumping and anti-subsidy cases against exports of Vietnam in recent years since 2009, and the 2nd dual anti-dumping and anti-subsidy investigations by Australia against exports of Vietnam

Source Vietnam Competition Authority

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