I. Legal basis

• Civil Code 2015
• Decree 69/2018/ND-CP
• Commercial Law 2005

II. Concept of commercial processing and Processing contracts

• Commercial processing is a commercial activity whereby the processing party uses part or all of the raw materials and materials of the ordering party to perform one or more stages in the production process at the request of the ordering party to receive remuneration.
• Processing contract is an agreement between the parties, whereby the processing party performs work to create the product according to the request of the ordering party, the ordering party receives the product and returns it.

III. Processing goods for foreign traders

Vietnamese traders are allowed to process legal goods for foreign traders, except for goods banned from export or import; Goods temporarily suspended from export and import. Specifically:

• For goods in the conditional business investment list, only traders that meet all conditions according to regulations on production and trading of that item can process for export to foreign countries.
• For imported goods in the form of designated traders under the management authority of the State Bank of Vietnam, the processing of goods shall comply with the regulations of the State Bank of Vietnam.
• For goods exported and imported under license, traders can only sign processing contracts for foreign traders after being granted a license by the Ministry of Industry and Trade.

IV. Form of processing contract 

The processing contract must be made in writing or in another form with equivalent legal validity and must at least include the following terms:

• Names and addresses of the contracting parties and the direct processing party.
• Name and quantity of processed products.
• Processing price.
• Payment term and payment method.
• List, quantity, value of imported raw materials, sub-materials and supplies and domestically produced raw materials, sub-materials and supplies (if any) for processing; norms for use of raw materials, auxiliary materials and supplies; norms of consumable materials and raw material loss rate in processing.
• List and value of machinery and equipment rented, loaned or donated for processing (if any).
• Measures to handle scrap, waste, and waste products and principles for handling rented or borrowed machinery and equipment, raw materials, auxiliary materials, and surplus supplies after the end of the processing contract.
• Delivery location and time.
• Trademarks and names of origin of goods.
• Validity period of the contract.

V. Rights and obligations of foreign traders ordering processing of exported and imported goods under license

Rights and obligations of foreign traders ordering processing of exported and imported goods under license are specified as follows:

• Deliver all or part of raw materials and processing supplies as agreed in the processing contract.
• Receive all processed products back; machinery and equipment rented or borrowed by the processing party; raw materials, sub-materials, supplies, and scrap after liquidating the processing contract, except in cases where they are allowed to be exported on the spot, destroyed, donated, or donated according to regulations.
• Sending experts to Vietnam to guide production techniques and check the quality of processed products as agreed in the processing contract.
• Responsible for the right to use trademarks and names of origin of goods.
• Comply with the provisions of Vietnamese law related to processing activities and the terms of the signed processing contract.
• On-site export of processed products; machinery and equipment for rent or loan; surplus raw materials, auxiliary materials, and supplies; waste products and scrap according to the written agreement of the relevant parties, in accordance with current regulations on management of export and import of goods and must fulfill tax obligations and other financial obligations according to the provisions of law.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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