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.
During the past weeks, a proposed new regulation of Vietnamese tax law has shaken up the local e-commerce industry. Referred to as “Circular 40”, the new regulation moves to shift responsibility for vendors’ tax liabilities arising from sales generated on online platforms to the respective platform operator.
Decree 21 marks a significant effort of lawmakers in bringing the legislation on security transactions to the next level of maturity. In the context of the legislative incentive to streamline procedures and increase transparency for secured parties, Decree 21 forms an important stepping stone.
Decree 38 provides a better scope defining to which entities it applies. It also introduces several more severe penalties for violations related to advertising for certain products, in particular drugs, cosmetics, medical equipment, fertiliser, or healthcare services. Additional penalties, such as revocation of a licence, are introduced as well.
The draft PDP8 prioritises renewable energy development and intends to create a more incentivised regulatory framework to boost private-sector investments to connect individual power plants with the national transmission grid. It also lays out significant opportunities for the development of LNG-to-power.
The data centre market in Vietnam is a sector which is attractive for foreign investments. However, it is important to take into consideration certain points, such as data protection, required licences, build vs lease. In case of an M&A there are issues that might have to be considered depending on the type of deal.
After Brexit the UK negotiated an FTA with the Vietnamese government to be able to enjoy similiar or better trade conditions as it would have had under the EVFTA. In this update you can read some notable points. The UKVFTA will enter into force on 1 May 2021.
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.
Various decrees and circulars were issued to guide the implementation of the Law on Securities which entered into force on 1/1/2021, guidance can be found on derivatives and the derivatives market, conditions to provide securities lending services, stock offered at below par value price, public offerings, administrative penalties, and the supervision of securities trading.
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.
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