In April of 2009 the HIWC Steering Committee reached a consensus against HIWC becoming a formally registered organization.  

The Steering Committee was formed in January 2009 upon request of the HIWC Board in order to properly deal with the various questions and concerns raised in 2008 regarding the functioning of the annual Charity Bazaar as well as the Community Aid Committee.

Some of these concerns were related to tax issues concerning foreign businesses, which wanted to donate money to HIWC for charity purposes, but could not do so without HIWC having a registration identification number. Another issue that was raised concerned the appearance of a lack of transparency by the HIWC and the CAC in its charity functions.  A third concern was that HIWC had not in the past submitted its records to a yearly audit, which seemed to have caused some trust issues within the community.  Fourthly, an allegation had been made charging that HIWC was an illegal organization. 

In an effort to comprehensively address all complaints, the Steering Committee was given the task of researching the pros and cons of HIWC becoming a registered or licensed organization.  They were asked to reach an agreement about whether or not HIWC should in fact become a registered entity or remain as it has been since its inception, an unregistered non-profit organization formed primarily for social purposes and able to perform charity functions as well, yet not subject to the official scrutiny of any government.  

The Steering Committee has learned that there are three potential models for existing as  a registered non-governmental entity in Vietnam.  They are as follows: 

Model 1:  A representative office in Vietnam of an International Non-Governmental Organization or (INGO), which is first registered in the country of its origin.  The purpose of this INGO representative office shall be to perform a specific function such as a focused charity work.  It is subject to the laws and authority of the country wherein it is registered.  Examples of INGO’s currently represented in Vietnam with legal offices are:  

·         Save the Children Fund United Kingdom

·         Care International

·         Blue Dragon Children’s Foundation 

Model 2:  A Non-Governmental Organization or (NGO) such as an association or club.  This association must be formed by the cooperation of a local (in this case Vietnamese) individual or enterprise and will be governed by this local entity.  It will be registered with the (Vietnamese) government and subject to its law and authority.  Examples of national NGO’s are:   

• The Vietnam Union of Friendship Organization
• Vietnam Peace Committee
• The Vietnam—Sweden Friendship Association

Model 3:  A registered charity fund, which shall be founded and managed either by local (Vietnamese) individuals or organizations, or by foreign entities working together with local entities, for the purpose of doing charity work.  It will be formally registered with and subject to the local government.  Examples of this type of fund management organizations are: 

• Nguyen Thai Binh Scholarship Fund (Thanh Nien News Fund)
• VinaCapital Foundation

In the case of the first model, HIWC would have to first become a registered NGO in a home country before being able to open a representative office in Vietnam thereby becoming an INGO.  Not only would acquiring this status require payment of government fees on a yearly basis, which would not align with the current mission of HIWC, but the highly transient nature as well as the many international identities of the club members prohibits HIWC from being able to form such an INGO. 

It is immediately clear that the second model is not an option for HIWC as this model must be founded and governed by Vietnamese nationals.  HIWC is an international club whose bylaws require its members to carry non-Vietnamese passports.

The third model is currently the only possible form in which HIWC may exist as a registered and licensed non-governmental entity in Vietnam.  However there are some particular rules or regulations, which may discourage HIWC from seeking this model. They are as follows: 

• The fund must have the minimum contributed capital of 5 billion VND in a bank account.
• The members shall no longer have the ownership of this contributed capital; in case of termination or dissolution of the fund the capital shall be remitted into the budget of the state of Vietnam.
• The director of this fund must be a Vietnamese person.
• The annual financial statement of this fund must be sent to the appropriate Vietnamese authorities and subject to its scrutiny.

There are of course many more regulations in forming a registered charity fund in Vietnam, but it is these four above-stated rules which the Steering Committee members have agreed are not in the best interest of the HIWC.  While these regulations are not impossible to comply with, the Steering Committee believes that given the non-permanent as well as the highly transient nature of the HIWC members, ultimately this would be too difficult.  It must also be understood that HIWC would most certainly lose its authority over how the funds it raises would be allocated.  In other words, by becoming a registered charity fund, HIWC would lose its independence.  There is at this time no regulation that allows for a 100% foreign-owned charity fund to formally register in Vietnam.  The Steering Committee believes that the ability of HIWC to self govern should not forfeited. 

It may be said that having a registration number would allow HIWC to receive donations from foreign companies in such a way as would benefit both HIWC in its charity work as well as the foreign businesses in complying with their nation’s tax regulations.  However, the Steering Committee cannot see any other possible benefit to registering as a charity fund at this time.  Indeed, in order to register as a charity fund, HIWC would also have to modify its very identity, and the negative consequences for doing so far outweigh any possible benefit.    

Furthermore, in responding to the allegations of being an illegal organization, it must be clearly stated that HIWC, along with many other non-registered organizations and clubs, which function in both social as well as charitable ways in Vietnam, operates with the full knowledge of the government and is not considered illegal.  It is possible that the term illegal has been largely misunderstood by some who have not comprehended the full nature of its meaning.  HIWC is not prohibited at this time from forming and functioning or raising charity funds in the way it does without first formally registering. 

The Steering Committee believes that all HIWC members fully understand that they are guests of the people of Vietnam, and that being fully cognizant of this, HIWC will continue to self govern in an appropriate manner. 

Therefore, at this time the Steering Committee feels confident in recommending that the HIWC should not seek to register at this time.  It may be that in coming years the regulations for registering in Vietnam may change, but that will be for a future Board to determine.

Finally, in response to concerns within the HIWC community regarding lack of transparency issues, the Steering Committee would like to propose a yearly audit; these results would then be communicated effectively at the Annual General Meeting as well as at the HIWC website.  We believe that a yearly audit shall enable members with such concerns to accept that HIWC is operating in an appropriately transparent and accountable manner.  We understand that the first review, for 2008, has already taken place and are confident that the audit will be successful. We encourage the Board to continue this policy.  

We would also recommend that all HIWC members be encouraged to work towards effective and positive communication both within and without its community, being aware that misunderstandings quickly arise where one language is not common to all, always keeping in mind the diverse nationalities of its members, and appreciating fully the fact that English is for most not the first language. 

Let us continue confident in our identity as a uniquely dynamic organization, which seeks to impact the wider community in profound and positive ways! 

With the very best of regards,

The HIWC Steering Committee 2009

Steering Committee Members are as follows: 

• Deborah Stephen, HIWC President
• Anne Lund-Roland, HIWC Vice-President
• Ningning Guest, HIWC Treasurer
• Ulla Camara, Diplomatic Liaison
• Amanda Jensen,  CAC Treasurer
• Susan Regis, CAC Member

Among the sources interviewed in our search for correct information are: 

• Tony Foster, Freshfields
• Vietbid Law Firm
• Norcham
• Eurocham
• BBGV
• Blue Dragon Children’s Foundation
• Friends of Vietnam Heritage