NGOs are organizations that exist alongside those of the public and private sectors. Along with the rapid growth in number, NGOs have become an increasingly important factor in foreign relations between countries. In order to complete the legal framework based on the existing foundation for the management of activities of foreign NGOs in Vietnam, Decree 58/2022/ND-CP on registration and management of activities of foreign non-governmental organizations in Vietnam (hereinafter referred to as INGOs) will come into effect and replace the previous Decree 12/2012/ND-CP (“Decree 12”) from January 1st. November 2022 (“Decree 58”).

Decree 58 shortens the time to handle administrative procedures related to the operation of INGOs in Vietnam, and at the same time sets out some changes in the management mechanism apply to these organizations.

Changes to the definition of “foreign NGO” and registration mechanism

Decree 58 changes the definition of “foreign non-governmental organization” (INGO). From November 1, 2022, "foreign NGOs" must also satisfy two more conditions in comparison to previous regulations: (1) having legal capital from abroad and (2) not making financial donations, mobilizing sponsors and raising funds from Vietnamese organizations and individuals.

Under the previous regulation, there were a total of three types of licenses related to the operation of INGOs. Decree 58/2022/ND-CP reduces to two types of licenses, namely Operation Registration Certificate (“ORC”) and Representative Office Registration Certificate (“RORC”). INGOs only need one of these two types of certificates to operate in Vietnam. Project Office Registration Certificate (PORC) under previous regulation of Decree 12 will not be renewed. However, supplementation, modification and re-grant are still available for issued PORC until its expiration date.

Also under the new regulations, INGOs can set up representative offices in Vietnam without having to register their operations first, which INGOs had to do under the two-step process of the old regulations.

Change of conditions and composition of dossiers for issuance of Operation Registration Certificates and Representative Office Registration Certificates.

Conditions for issuance of ORC to INGOs under the new regulations are (1) having a valid legal person status in accordance with the laws of the country or territory where it is established, (2) having a clear charter, operating principles and purposes which are suitable to Vietnam's interests and needs (3) have a specific proposal on expected programs, projects, and non-projects to support development, aid humanitarian in Vietnam for 3 years (4) have a proposal of Representative in Vietnam.

Thus, according to the new regulations, INGOs will need to prepare a proposal on the proposed program, project, and non-project in 3 years, and the application for approval of the Representative in Vietnam in the application for Operation Registration Certificate.

Similarly, the application for a RORC also has a new component, which is a detailed list of programs and projects that are expected to be implemented in Vietnam within 5 years and a dossier of application for the approval of the Head of Representative Office.

Shorten the processing time for administrative procedures

The time limit for handling procedures for granting and renewing ORC and RORC under Decree 58 has been shortened to 30 days from 45 days as before. Similarly, the time limit for processing modification, supplementation and re-grant procedures for both types of documents has been shortened to 25 days instead of 30 working days as before.

In addition, attached to Decree 58 is an appendix of available forms used for procedures for granting, renewing, modifying, supplementing and re-granting ORC and RORC. These forms shorten preparation time and help INGOs better identify what information to provide in their application.

The reporting regime of INGOs to government ministries has also changed. The reporting now only takes place annually and irregularly upon request instead of the 6-month reporting regime under the old regulations. The reporting will be based on the information fields in the form No. 07 attached to the decree, with the reporting data specified from December 15 of the year before the reporting period to December 14 of the reporting period.