The circular gives information on who can buy shares (strategic investors, local and foreign investors, employees, trade unions), how shares can be offered (public auction and direct negotiation) and how deposits can be made in foreign currencies. It also contains sample documents.
Directive 18 provides information on which businesses can open and which not yet and under which conditions. It also prescribes the obligation to use QR codes for movement and proof of vaccination. Step-by-step more businesses can open again which will help to recover HCMC's economy.
The law will also cover insurers, reinsurers and insurance brokers practising insurance auxiliary services and other activities directly related to the insurance business. Insurance services and products can be offered and promoted online. Finally, it simplifies some investment and establishment conditions.
The authorities of HCMC have decided on criteria that will apply to businesses and people when the city will open up on 1 October. Companies are required to keep their staff safe. Offices and businesses need to meet certain requirements to be able to operate again.
In light of difficulties caused by the 4th wave of COVID-19 the government issued Resolution 116 with financial support packages for employees and employers. Certain conditions need to be met in order to qualify for this support.
To manage multi-level marketing better a decree is drafted to amend Decree 40. Requirements are introduced to limit fraud and close loopholes. Also, experience will be required prior to investing in Vietnam. Finally, transparency will be improved.
Hanoi has issued a plan to reopen businesses while keeping its citizens safe. Specific activities will be allowed under certain conditions. Gatherings of groups larger than 10 or 20 are prohibited depending on where they meet. Business can allow 50% of the staff to work in the office and the rest needs to work from home. It applies as of 21 September.
Long An Province issued a plan to resume business operations. It contains information on the requirements for companies and employees for companies to resume operations. The authorities intend to have a 2 phase reopening, but the plan only contains details for the first phase from 16/9 to 15/10, not yet for 15/10 onwards.
Binh Duong has issued a plan to resume business operations in the industrial zones. It sets out the obligations for companies and employees. The plan is split in 2 phases and distinguishes between companies that have stopped operations and those that have continued.
The current COVID-19 situation in HCMC makes that the authorities remain cautious. Only in areas where the pandemic is under control a more relaxing regime will apply. Citizens can go out to shop for groceries once a week and more business activities are allowed. Other services such as inter-district deliveries, food delivery and postal services will be possible again too in the whole city.
The HCMC authorities have prepared a plan to reopen the economy in the city. It consists of 3 phases which will be rolled out depending on the developments. It includes support for businesses and criteria under which companies and citizens can resume a more normal life.
The Electricity Regulatory Authority under MOIT is currently finalising the Draft Circular, which is expected to be officially issued by the end of 2021. Due to its high relevance for the economics of renewable energy investments in Vietnam, the DPPA pilot program has attracted widespread interest from consumers and power developers. This legal update examines the most important takeaways from the draft circular.
Many organisations and individuals in Vietnam use cross-border advertising services provided by various foreign providers such as Facebook, Google, Tik Tok. Decree 70 stipulates that entities engaging in those services must comply with cybersecurity and IP regulations, regulations on management, provision, and use of internet services, and pay tax.
Vietnam is a dynamic country with an economy that continues to grow and modernise and has a lot to offer. It is a unique country and provides extensive opportunities if you are willing to spend the time to understand the market and the people living and working in it.
Since Vietnam has joined the WTO in 2007, investment opportunities in Vietnam have developed immensely. Nevertheless, there are undoubtedly many challenges in doing business here, some of which we will touch upon the main points in our guide “Doing Business in Vietnam".
In this guide you can find information about:
Ways to invest and available incentives;
Types of legal entities you can setup;
The do’s and don’ts of borrowing or lending money;
Competition law, contract law, intellectual property rights law, the labour code and dispute resolution;
What to do in case of insolvency, bankruptcy, or dissolution; and