About us

MATTER:

Distribution Agreement

CLIENT:

A Vietnam-based subsidiary of one of the world's leading manufacturers of residential and commercial water heaters and boilers

BACKGROUNDS:

Client is a company founded in 1874 in the United States where today the company is headquartered. Client is one of the world's leading manufacturers of residential and commercial water heaters and boilers, offering a comprehensive product line featuring the best-known brands in North America, China, India, Vietnam, and Europe (the “Company”). 

Entering the Vietnamese market in 2017, the Company was looking for Vietnamese distributors and its affiliates to extensively distributing, marketing, and selling water purifiers and other related products with the desire to expand its product distribution globally.

For the aforementioned purposes, the Company has engaged ATIM LAW FIRM to provide legal advice relating to the establishment of a cooperation relationship with an exclusive distributor as well as business expansion through business locations in Vietnam, first and foremost in Ho Chi Minh City.  

CHALLENGES AND SOLUTIONS:

The Company was having needs on assurance that its product distribution would be carried out efficiently and powerfully. Thus, it was required that the potential distributor should focus its efforts solely on a certain territory or region, which was the so-called “exclusive distributor”. However, one of the major challenges that the Company was facing when establishing a contractual relationship with an exclusive distributor was how to be full compliance with laws and regulations on intellectual property and competition in Vietnam in the context that relevant regulations remained unclear and potential risks of the contract being invalidated.

Accordingly, ATIM LAW FIRM advised the Company to develop contractual terms and agreements to be in line with the current laws and practical requirements of Vietnam. In addition, to expand the operations of the Company, ATIM LAW FIRM also supported them to establish a 100% foreign-owned company and open its business location in Ho Chi Minh City which is considered an economic center of Vietnam.

SERVICES AND RESULTS:

ATIM LAW FIRM successfully supported the Company to carry out the followings:

• Advised and carried out the required procedures for setting up a 100% foreign-invested enterprise in Ha Noi City of Vietnam;
• Reviewed and finalized the signing of the international distribution contract with the exclusive distributor in Vietnam; and
• Advised and carried out the required procedures for opening a business location in Ho Chi Minh City for the business expansion objectives of the Company.

After several weeks of review under the rounds of negotiations between the Company and the distributor, the international distribution agreement was eventually reached. In addition, the Company has successfully established a Vietnamese subsidiary after approximately one month of submitting application documents and providing project-related explanations as required by the Department of Planning and Investment. Its business location in District 10 of Ho Chi Minh City was also licensed after only 03 (three) working days from the date of a valid application.