Registering a foreign NGO in Vietnam – challenges and strict requirements

Foreign NGOs (Non-Governmental Organisations) have a history of providing aid and support to Vietnam in many areas, particularly where socio-economic development has been needed the most. Focus areas have included healthcare, education, agricultural and rural development, community support, social problems, protection of natural resources and the environment, with total aid provided estimated at USD250 million.

From a statutory perspective however, the process of registering a foreign NGO in Vietnam is complex and sometimes extremely difficult, as the authorities assess each project on an individual basis before granting the NGO status and required operating licenses.

In the following article we cover the operational entity forms that foreign NGOs can adopt in Vietnam, and the practical processes to obtain the necessary registrations and government approvals required for the NGO to be legal and compliant.

Definition and status

NGOs cover a wide range of social entities, programs, institutions and associations that are entirely or largely independent of the government and have a primarily humanitarian or cooperative scope, rather than a commercial objective. In Vietnam, NGOs can be generally divided into two groups, including:

• NGOs established under Vietnamese laws, and
• Foreign NGOs who seek to operate/register to operate in Vietnam

This article focuses on the technical information and detailed procedures for registering a foreign NGO in Vietnam.

Decree 58/2022/ND-CP issued on 31 August 2022 covers the registration and management of activities of foreign NGOs in Vietnam takes effect from 1 November 2022, replacing Decree No. 12/2012/ND-CP of 1 March 2012 (Decree 12). Under the Decree 58, a foreign NGO is an organisation that:

• Operates in the form of non-governmental organisations, non-profit organisations, social funds, private funds
• Is established under foreign laws, has legally contributed by foreign capital
• Has the operational scope of carrying out development assistance and humanitarian aid activities not for profit or other purposes in Vietnam.

There is a significant provision clarified in the Decree which states that foreign NGOs cannot make financial donations, operate sponsorships or raise funds from Vietnamese organisations and individuals.

Operational forms to be registered for Foreign NGOs in Vietnam

Foreign NGOs can register to operate under the Vietnamese laws in two forms:

1. Operation Registration Certificate
2. Representative Office Registration Certificate

Accordingly, the Project Office Registration Certificate mentioned in Decree 12 had been abolished, therefore under Decree 58, foreign NGOs seeking to register their presence in Vietnam can choose either ORC or RORC, depending on the conditions required by law for each type of establishment and their actual needs. In addition, the registration provisions for each of the above forms have been simplified.

Statutory process for registering the operation of a Foreign NGO in Vietnam

Foreign NGOs can register to operate under the Vietnamese laws under 2 forms: (i) Operation Registration Certificate (ORC), and (ii) Representative Office Registration Certificate (RORC). This section introduces the statutory processes for all two mentioned forms: