Decree No. 75/2023/ND-CP (Decree 75) has just been issued and took effect from December 2023. Decree 75 is said to have groundbreaking regulations, creating many favorable conditions for insurance participants such as the expansion of eligible subjects for health insurance support as well as increasing the level of health insurance benefits from 80% to 100% for medical examination and treatment costs covered by health insurance for some target groups to enhance the benefits of participants.

ACSV Legal is pleased to be the exclusive contributor for Vietnam in The Legal 500: Investing in Comparative Guide (1st Edition). This new Comparative Guide provides a pragmatic overview of the law and practice of investing in across a variety of jurisdictions, including discussions on governmental approvals and requirements, FDIs, and exit options.

Recently, the new Law on E-Transactions has been issued that will enter into force on 1 July 2024. The new law covers areas such as the issuance of certificates for land use rights and ownership of real estate property, inheritance records, marriage certificates, and divorce decisions. It also introduces new provisions governing the use of open data from state agencies.

A recent amendment to Vietnam's regulations governing employee stock ownership plans (ESOPs) has significantly simplified the process for foreign entities to offer these benefits to Vietnamese employees. The State Bank of Vietnam's Circular No. 23/2024/TT-NHNN, effective from August 12, 2024, has removed several hurdles, making it easier for companies to implement offshore-issued ESOPs.

The Ministry of Information and Communications (MIC) has published a new draft decree aimed at addressing the shortcomings and obsolescence of the previous regulations governing the use of Internet services and online information.The new regulation supplements the contents relating to the protection of children in the online environment, as well as provides for stricter regulation of registration and management of Social Networks as well as Live Streaming and Revenue-Generating Services. This new draft decree is currently under review by the competent authorities and is expected to be announced soon.

The Government (GOV) has published Decree No. 78/2023/ND-CP aimed at creating a legal basis to ensure safety and efficiency for the operations of the Vietnam Development Bank as well as overcoming and removing obstacles in the process of practical application. Decree 78 regulates cases where credit exceeds the limit to help businesses borrow capital to invest in production and business key projects and also expands the legal framework more reasonably for clients and projects that need loans.

Recently a law to amend the existing law protecting consumer rights was adopted. The new law adds one chapter on the liabilities of business organisations and individuals towards consumers in specific transactions. It will enter into force on 1 July 2024.

In the recently updated edition of Chambers Global Practice Guides: Private Equity 2023, ACSV Legal contributed to the Vietnam chapter on Law & Practice and Trends & Developments. The guide provides the latest legal information relevant for PE and M&A such as the structure of transactions, terms of acquisition documentation, public-to-private takeovers, mandatory offer thresholds and hostile takeover offers.

Decree 19 implements the 2022 Law on Anti-money Laundering. It introduces a new definition of “complex transactions”, provides criteria to determine unusual or complex high-value transactions and beneficial owner. It also sets thresholds for when a customer due diligence needs to be conducted.

The global coronavirus epidemic has caused massive disruption to businesses and may impact certain contractual relationships, either with clients or employees, Minh Nguyen, senior associate and head of dispute resolution practice at ACSV Legal, discusses notable changes in regulation which could directly affect daily business operations in Vietnam, and pores over certain legal issues that Vietnamese-based companies might encounter due to the pandemic.

Decree 18 adds conditions for enterprises owned by foreign investors or foreign-invested economic organisations. They need to meet these when registering a multi-level marketing (MLM) business. All foreign investors or foreign-invested business organisations being the owners or shareholders of the FIE registering an MLM business need to have operated an MLM business for at least three years continuously.

Vietnam is expected to speed up equitisation of state-owned enterprises and divestment of state capital to create a level playing field for business entities and generate funds for infrastructure. Law firm ACSV Legal's associates Phuong Huynh and Duc Tran find out how these actions may offer ample opportunity for private financiers to invest in some of Vietnam's leading market players in 2020.