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.
Vietnam has an encouraging opportunity to move away from its reliance on foreign coal and develop its own modern renewable energy system free from pollution of its air, waterways, and agricultural land. Decision No. 39/2018/QD-TTg is expected to have a positive impact as a more commercially viable feed-in tariff was introduced.
Decree 148 provides a much needed simplification of the current employment framework. It contains provisions on the period that counts for the severance allowance, the disciplinary hearing, settlement time in case of mutual termination; and what needs to be in the labour contract.
A draft law amending several articles of the Law on Investment and the Law on Enterprises has been published for public comments. The amendments are expected to be adopted and come into effect in 2019. It is predicted that the scope of changes will not detrimentally affect an investment project. Notable is also that the time to fulfil the capital contribution requirements will be lengthened considerably.
Under the Law on Social Insurance of end 2014 it would also apply to foreign employees as of 1 January 2018. Decree 143 gives the long-awaited guidance about the scope of the Law on Social Insurance. The application will be implemented in two steps. The first part enters into force in 2018 and the second per 2022.
Decree 140 addresses issues related to work permits and work permit exemption for foreigners working in Vietnam. It eases the requirements for foreign employees as more persons are exempted, fewer documents need to be submitted and the necessity to submit a labour usage plan for certain foreign employees is removed.
The new Cybersecurity Law is expected to impact FDI as it requires investors to open a branch or representative office when active in sectors covered by the law. Companies have to comply with the requirements by 1 January 2019.
Decree 22 provides additional information on collection and distribution of royalties, protection invalidation of copyright and related rights, and the timeline related to the copyright registration certificate.
More incentives are introduced to attract and facilitate investment in the agricultural sector by Decree 57 and Decree 98 introduces the concept of linkage and provides for incentives related to linkage projects. These incentives are expected to turn Vietnam into an agriculturally intensive processing centre of the world and a logistics centre for global agricultural trading.
Vietnam is working towards supporting different kinds of industries by introducing new concepts of industrial zones with incentives. Decree 82 introduces the new concepts, such as the auxiliary industrial zone, or supporting industry zone, and the eco-industrial zone. Incentives are also set out for manufacturers of supporting industries' products and eco-enterprises.
Decree 108 will simplify the business registration procedures and reduce costs. Notable changes are related to registration and notification requirements; and the prohibition of setting up another business location is removed.
The new Competition Law is expected to have an impact on mergers, consolidations, acquisitions, joint ventures between offshore parties. It will also apply to foreign companies, with or without a presence or subsidiary in Vietnam.
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