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Insurance Enterprises and Insurance Brokerage Enterprises with Foreign Investment Capital

Chapter VI

INSURANCE ENTERPRISES AND INSURANCE BROKERAGE ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL

Article 105.- Forms of operation

1. Foreign insurance enterprises and insurance brokerage enterprises shall be licensed for operation in Vietnam in the following forms:

a) Joint venture insurance enterprise, joint venture insurance brokerage enterprise;

b) Insurance enterprise with 100% foreign investment capital, insurance brokerage enterprise with 100% foreign investment capital.

2. Foreign insurance enterprises and insurance brokerage enterprises may set up their representative offices in Vietnam. Such representative offices are not allowed to conduct insurance business in Vietnam.

Article 106.- Conditions for being granted the establishment and operation licenses

The conditions for insurance enterprises and insurance brokerage enterprises to be granted the establishment and operation licenses shall include:

1. The conditions prescribed in Article 63 of this Law;

2. The foreign insurance enterprises and insurance brokerage enterprises are operating lawfully and in the normal financial state;

3. The foreign insurance enterprises and insurance brokerage enterprises are permitted by competent bodies of foreign countries to conduct insurance business or insurance brokerage activities in the domains planned to be carried out in Vietnam.

Article 107.- Conditions for being grant licenses to set up representative offices in Vietnam

The conditions for foreign insurance enterprises and insurance brokerage enterprises to be granted licenses for setting up their representative offices in Vietnam shall include:

1. The foreign insurance enterprises and insurance brokerage enterprises have operated for five years or more;

2 The foreign insurance enterprises and insurance brokerage enterprises have cooperative ties with Vietnamese agencies, organizations.

Article 108.- Licensing competence

The Finance Ministry shall grant establishment and operation licenses to the insurance enterprises and insurance brokerage enterprises with foreign investment capital; the licenses for setting up Vietnam-based representative offices of foreign insurance enterprises or insurance brokerage enterprises.

Article 109.- Dossiers of application for establishment and operation licenses

1. Apart from the contents prescribed in Article 64 of this Law, the dossier of application for establishment and operation licenses for the joint- venture insurance enterprises or insurance brokerage enterprises shall also include:

a) The charter, the establishment and operation licenses of the parties to the joint venture;

b) The joint venture contract;

c) The annual balance sheets and financial reports, certified by independent auditing organizations about the situation of operation of the joint venture parties for the three latest years.

2. Apart from the contents prescribed in Article 64 of this Law, the dossier of application for licenses for the establishment and operation of insurance enterprises and insurance brokerage enterprises with 100% foreign investment capital shall also include:

a) The charter, establishment and operation license of the foreign insurance enterprise or the foreign insurance brokerage enterprise in the country where it is headquartered;

b) The letter of authorization for the general director (director) in Vietnam;

c) The annual balance sheet and financial report, certified by the independent auditing organization of the situation of operation of the foreign insurance enterprise or insurance brokerage enterprise in the country where it is headquartered for the three latest years.

Article 110.- Dossiers of application for licenses to set up representative offices

The dossier of application for licenses to set up representative offices shall include:

1. The application for setting up the representative office;

2. The establishment and operation license of the foreign insurance enterprise or foreign insurance brokerage enterprise in the country where it is headquartered;

3. The annual balance sheet and financial report, certified by the independent auditing organization of the situation of operation of the foreign insurance enterprise or the foreign insurance brokerage enterprise for the three latest years;

4. The full names, curricula vitae of the chiefs of the representative offices in Vietnam;

5. The written introduction of the foreign insurance enterprise or insurance brokerage enterprise as well as its cooperation with Vietnamese agencies and/or organizations.

Article 111.- Licensing time limits, licensing fees and announcement of operation contents

The licensing time limits, the licensing fees and the announcement of operation contents for foreign-invested insurance enterprises and insurance brokerage enterprises, representative offices of foreign insurance enterprises or insurance brokerage enterprises shall comply with the provisions in Articles 65, 66 and 67 of this Law.

Article 112.- Withdrawal of licenses

1. Apart from the provisions in Article 68 of this Law, foreign-invested insurance enterprises and insurance brokerage enterprises may have their establishment and operation licenses withdrawn when the foreign insurance enterprises or insurance brokerage enterprises in the countries where they are headquartered have their establishment and operation licenses withdrawn.

2. Representative offices of foreign insurance enterprises or insurance brokerage enterprises shall have their setting up licenses withdrawn when the foreign insurance enterprises or insurance brokerage enterprises in the countries where they are headquartered have their establishment and operation licenses withdrawn.

Article 113.- Changes requiring approval

Changes requiring approvals for foreign-invested insurance enterprises or insurance brokerage enterprises shall comply with the provisions in Article 69 of this Law.

Article 114.- Operation contents

The contents of operation of foreign-invested insurance enterprises or insurance brokerage enterprises, or representative offices of foreign insurance enterprises or insurance brokerage enterprises must comply with the provisions of this Law and other provisions of Vietnamese legislation.

Article 115.- Funds, reserve funds and financial revenue and expenditure of foreign-invested insurance enterprises and insurance brokerage enterprises

1. The Government shall prescribe the legal capital levels for foreign-invested insurance enterprises and insurance brokerage enterprises.

2. The deductions for setting up compulsory reserve funds and other reserve funds of foreign-invested enterprises or insurance brokerage enterprises shall comply with the provisions in Article 97 of this Law.

3. The financial revenues and expenditures of foreign-invested insurance enterprises and insurance brokerage enterprises shall comply with the provisions of Vietnamese legislation.

Article 116.- Solvency, escrow account, professional reserves and capital investment of foreign-invested insurance enterprises

1. The foreign-invested insurance enterprises must maintain their solvency as provided for in Article 77 of this Law.

2. The foreign-invested insurance enterprises must make escrow account and deductions for establishment of professional reserves as provided for in Article 95 and Article 96 of this Law.

3. The foreign-invested insurance enterprises may invest their capital as provided for in Article 98 of this Law.

Article 117.- The regimes of accounting, auditing and financial reporting

1. The foreign- invested insurance enterprises and insurance brokerage enterprises must observe the accounting, auditing and financial-reporting regimes as provided for in Articles 101, 102, 103 and 104 of this Law.

2. Within 180 days after the end of a fiscal year, the foreign-invested insurance enterprises and insurance brokerage enterprises as well as representative offices of foreign-invested insurance enterprises or insurance brokerage enterprises must send the annual financial reports of the foreign insurance enterprises and insurance brokerage enterprises to the Finance Ministry.

Article 118.- Transfer of profits, property abroad

1. The insurance enterprises or insurance brokerage enterprises with 100% foreign investment capital may transfer abroad the remaining amounts of profits under their ownership after making deductions for establishment of funds and fulfilling all financial obligations as provided for by Vietnamese laws.

2. The foreign parties to the joint-venture insurance enterprises or insurance brokerage enterprises may transfer abroad the divided profit amounts after the joint-venture insurance enterprises or insurance brokerage enterprises have already made deductions for establishment of funds and fulfilled all the financial obligations as provided for by Vietnamese laws.

3. The insurance enterprises with 100% foreign capital and the foreign parties to the joint-venture insurance enterprises; the insurance brokerage enterprises with 100% foreign capital and the foreign parties to the joint-venture insurance brokerage enterprises may transfer abroad the remainder of their property after liquidation, termination of their operation in Vietnam.

4. The transfer abroad of money and other assets as provided for in Clauses 1, 2 and 3 of this Article shall comply with the provisions of Vietnamese laws.

Article 119.- Other provisions

The Government shall specify the contents, scopes and areas of operation of foreign-invested insurance enterprises and insurance brokerage enterprises as well as the Vietnam-based representative offices of foreign insurance enterprises or insurance brokerage enterprises.