News

NEW LAW ON HOUSING IN VIETNAM

In the latest edition of our newsletter, read about the new Law on Housing (effective from January 1, 2025) which is expected to create many favorable conditions for apartment owners and mini apartments. Among other things, this new law introduces stricter conditions for investors of commercial housing projects, as well as regulations on removing residency conditions for social housing buyers to move and attract labor between regions and localities and to suit the practical situation in each period.

STRICTER SANCTIONS FOR VIOLATING COMPETITION LAW

Decree 75 contains a general framework for administrative penalties such as warnings and fines, additional sanctions and remedial measures such as suspension of operations, confiscation of profits or revocation of enterprise registration are amongst the additional sanctions, and correction of false information, restructuring of dominant entities, removal of illegal terms.

25 Nov 2019

CIRCULAR 6 ON FOREX CONTROL OF FDI ACTIVITIES IN VIETNAM

Circular 6 results in changes on use of foreign exchange related to foreign direct investment in Vietnam. The definition of FDI enterprise, and the scope of when a direct or indirect investment capital account should be used have changed. Guidelines are provided about the use of foreign currencies and VN Dong.

17 Oct 2019

IMPACT OF THE FREE TRADE AGREEMENT BETWEEN VIETNAM AND THE EU

The EVFTA has been signed and is expected to enter into force in 2020. It is an ambitious agreement that not only addresses trade issues, but also sustainability (environment/human rights), and covers dispute settlement. There is a separate agreement that will cover the investor's protection. Companies that would like to take advantage of the EVFTA will - amongst others - have to take into consideration the country of origin and SPS requirements.

23 Aug 2019

PROPOSED CHANGES TO IMPROVE INVESTMENT CLIMATE IN VIETNAM

Amendments are expected related to conditional business lines; and clarifications are provided for Business Investment and Market Access Conditions. Notable are also the proposed amendments about M&A approval requirement, investment incentives, IRC, offshore investments, legal representatives and minority shareholders.

22 Aug 2019

VIETNAM LOOKS ABROAD TO STIMULATE PRIVATE INVESTMENT IN INFRASTRUCTURE

Vietnam’s new draft law on Public-Private Partnerships takes inspiration from legal frameworks around the world and provides an opening to satisfy the country’s growing demand for infrastructure investment. The Draft Law’s provisions on viability gap funding, risk-sharing, and project-financing are all laudable improvements compared to the current situation.

22 Jul 2019

DECREE 15 ON FOREIGN-INVESTMENT IN VOCATIONAL TRAINING INSTITUTIONS

Decree 15 offers detailed instructions on the implementation of the Law on Vocational Education and Training. It sets out requirements that need to be met before a project of vocational institution could be launched by a foreign investor. Decree 15 is expected to attract foreign investment in the vocational training.

29 May 2019

DECREE 13 ENCOURAGES INVESTMENT IN SCIENCE AND TECHNOLOGY

Decree 13 provides strong incentives to invest in the science and high-tech sectors in Vietnam by simplifying the procedure and providing preferential treatment for investors. The incentives are related to tax, and loans. Decree 13 is expected to accelerate research and development activities.

08 Apr 2019

CIRCULAR 2 ON CHANGES IN ENTERPRISE REGISTRATION

Following the entering into force of Decree 108 in October last year, Circular 2 now introduces new templates for registration of a business. All 89 templates are renewed. Furthermore, it provides for some changes related to the legal basis for the procedure related to the registration and to the relevant authority.

31 Mar 2019

CIRCULAR 17 ON SELF-INSPECTION AND REPORTING OF LABOUR LAW COMPLIANCE

Circular 17 will ensure that companies are taking an active approach towards their compliance with labour laws and correlatively, employer obligations and employee rights. It provides guidelines on the scope, timing and reporting. Employers are required to implement solutions to improve if the self-inspection shows this.

04 Jan 2019

FUTURE OF WIND ENERGY IN VIETNAM

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.

03 Jan 2019

DECREE 148 CLARIFIES VIETNAM’S EMPLOYMENT FRAMEWORK

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.

02 Jan 2019

INVESTMENT CLIMATE IN VIETNAM EXPECTED TO IMPROVE AFTER CHANGES IN THE LAWS

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.