Circular 6 loosens some restrictions on lending and debt repayment currency while introducing certain new requirements and restrictions. Besides, it also creates a new legal framework for digital lending activities.
On 10 February 2023, the Government issued Decree No. 3/2023/ND-CP providing for the functions, rights and duties, and organisational structure of the Vietnam Competition Commission. Decree 3 will take effect on 1 April 2023.
Circular 12 regulates various matters on foreign borrowing and debt repayment, such as the registration procedure of the enterprise’s foreign loan without a Government guarantee, opening and use of accounts for foreign borrowing and debt repayment, and reporting regime related to the enterprise’s foreign loan.
The Amended IP Law will enter into force on 1 January 2023 and is changed significantly compared to the current law. Sound marks are recognised for the first time. New definitions for author and co-author are introduced. Bad faith is introduced as a ground to cancel the validity of the trademark registration certificates.
The Draft Law on Land will amend regulations on land price bracket and land user; the basis for land allocation, land lease and change of land use purpose as well as the land use term of the investment projects.
The draft aims to achieve better competitiveness, fairness, transparency, and economic efficiency in the management of the State budget. The selection methods of bidders and investors will be amended as well as the process and procedures to select bidders and investors.
Decree 35 brings many positive changes to the legal framework for IPs and EZs, addresses various shortcomings of Decree 82 and is expected to attract more investment in IP and EZ development. For example, the requirement of a minimum 60% occupancy rate no longer applies and housing accommodation for employees working in IPs and EZs.
Decree 34 provides for delayed tax and land fee payments for some types of enterprises such as SMEs, credit institutions, enterprises in certain manufacturing and services sectors. Additional requirements might apply. A request needs to be submitted by 30 September 2022 at the latest.
Circular 2 issued introduces new methods of inspecting and assessing the compliance of foreign investment activities in Vietnam with relevant laws. The new Circular gives the responsible authorities the right to run discretionary audits on foreign-invested entities.
Decree 15 has reduced the VAT rate for many goods and services from 10% to 8%. However, the implementation of this has resulted in some additional burden for companies as it is not possible to include different VAT rates in one VAT invoice. The draft decree addresses this issue.
Circular 21 introduces new domain names: id.vn, io.vn and ai.vn. The first is for individuals only and the other for both individuals and organisations. Upon expiration of a domain name, it will be suspended immediately but it can be renewed within 25 days.
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