NO NEED TO UPDATE BUSINESS/INVESTMENT LICENSES OR “PINK-BOOK” DUE TO CHANGES IN ADMINISTRATIVE BOUNDARIES?

On 05 April 2025 the Ministry of Finance issued the Official Dispatch No. 4370/BTC-DNTN (“Official Dispatch 4370”) providing guidance on the unified registration of enterprises, cooperative groups, household businesses, and their dependent units at the land where their headquarters are relocated due to changes of administrative boundaries.

On 11 April 2025 the Ministry of Agriculture and Environment issued the Official Dispatch No. 991/BNNMT- QLĐĐ (“Official Dispatch 991”) addresses the establishment of land data and cadastral records for building a synchronous and modern land information system. This Official Dispatch 991 also guiding the adjustment of cadastral records and land data agencies due to changes of administrative boundaries at all levels.

A/ Key takeaways that investors and businesses should be aware of:

1. No need to re-issue Business Registration Certificate: Businesses, households, cooperatives etc., will not need to be re-issued or adjust their Enterprises Registration Certificate/Certificate of registration of cooperative groups/Certificate of registration of household businesses etc. (collectively “Business Registration Certificate”) if there are only changes in administrative boundaries.

2. Address update shall not mandatory: Updating address information is not a mandatory obligation, unless the business carries it out simultaneously with other changes.

3. Responsibility for dissemination belongs to local authorities: People's Committees at all levels will direct business registration authorities to clearly publicize (this information) to businesses, ensuring no additional unnecessary procedures arise.

4. After the arrangement of administrative units, it is not mandatory to simultaneously adjust the issued Land Use Right Certificate, except when the land users, owners of assets attached to the land have a need or perform it concurrently with other administrative procedures.

B/ Recommendation:

While these dispatches provide guidance suggesting that immediate, mandatory updates are not required solely because of administrative boundary changes, we hold a cautious view regarding the potential implications. Vietnam's legal system, while continually developing, is known for instances of interpretive uncertainty and potential inconsistencies in practical implementation.

Therefore, despite the guidance stating that updates are not mandatory solely due to administrative boundary changes, we highly recommend that you proactively consider updating your Enterprises Registration Certificate, Investment Registration Certificate, Land Use Right Certificate, and any other potentially affected licenses, permits, or operational documents. We view this as a prudent step to ensure your documents are fully aligned with the current administrative landscape and to mitigate potential future risks or disruptions to your business operations.

C/ How ALTAS Can Assist You:

ALTAS LAW is uniquely positioned to assist your business in navigating these complex administrative reforms. We offer a comprehensive suite of legal and business services designed to provide seamless support during this transition period:

• Accounting and Tax Services: We also offer accounting and tax services to help your business manage the financial implications of these reforms, including tax planning, reporting, and compliance.

• Licensing & Regulatory Compliance: We will meticulously review your existing licenses and permits, advise on necessary amendments or renewals, and guide you through the process of obtaining any new approvals. Our team will also ensure your compliance with all relevant regulatory changes. 

Please feel free to reach us via email contact@altas.vn to discuss your specific concerns and explore how we can partner with you to navigate these reforms successfully.

---

Written: Luong Van Chuong - Partner Lawyer at  ALTAS Law 

Date: 19/04/2025