After almost 2 years of limited access, it will become easier for foreigners with a business visa, visa exemption, temporary or permanent residence cards, overseas Vietnamese and their family members to enter Vietnam. Tourists are expected to be able to come to Vietnam later this year without having to join an organised tour.
Decree 31 provides details to implement the new Law on Investment. Note that there will be changes with regard to the approval of the investor and investment policy, investment guarantee, amendment of investment project, escrow deposit, market access and its conditions. In this update we will set out some points that changed compared to the draft decree which was issued last year.
The draft Decree on Personal Data Protection was recently circulated for public discussion. Many of the draft provisions are similar to those in the European GDPR, addressing matters such as cross-border data transfer and appointment of data protection officers. Fines for non-compliance can reach up to 5% of annual turnover.
The Draft Circular provides guidance on the tax compliance procedure, tax refund, the tax audit process and other tax administration related subjects. The draft is in particular relevant for e-commerce activities and digital-based businesses.
Decree contains guidelines on a coordinating mechanism for enterprise registration, cooperation related to registration of securities companies and fund management companies, concurrent registration of various points related to the enterprise such as the form or legal rep and additional regulations relating to legal status of enterprises are introduced.
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The draft decree does address various points, however, there is still need for clarification with regard to for example the law governing PPP project contract, conditions related to equity transfer, disposal of collaterals, and restrictions on equity transfer as well as definition of policy enabling changes in developing a PPP project.
Decree 152 provides guidance on employement of foreigners following the entering into force of the new labour code per 1 January 2021. There are some changes related to exemptions as well as the requirements to be qualified as an expert or technical worker.
The decree is expected to enter into force at the same time as the Law on Enterprises, being 1 January 2021. Some of the interesting changes are related to the enterprise registration, the suspension of it as well as the legal status of an enterprise.
The Draft Decree provides details to implement the new Law on Investment. Note that there will be changes with regard to the approval of the investor and investment policy, investment guarantee, amendment of investment project, escrow deposit, market access and its conditions.
In order for Vietnam to meet its energy demands it is important to increase the energy capacity. With the slow in investment and the impact of Covid-19 on foreign investments, it is important that a transparent and reasonable FiT scheme will be announced as soon as possible.
This law intends to settle disputes under the umbrella of the courts and will be applicable to various types of disputes, such as disputes concerning civil transactions, commerce, labour, marriage and family as well as administrative disputes. This is broader than the currently applicable Decree 22 which only applies to commercial disputes.
Finally, on 1 August 2020 the free trade agreement between the EU and Vietnam entered into force. This agreement is expected to increase trade between the EU and Vietnam. Various implementing documents have been issued recently. Important is the rule of origin determination to qualify for reduced tariffs.
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