NEWS

Many organisations and individuals in Vietnam use cross-border advertising services provided by various foreign providers such as Facebook, Google, Tik Tok. Decree 70 stipulates that entities engaging in those services must comply with cybersecurity and IP regulations, regulations on management, provision, and use of internet services, and pay tax.

Recently, the authorities in key manufacturing hubs in the South of Vietnam, have issued orders requiring manufacturers to either create a production bubble or stop production until further notice. Is this force majeure or a change of circumstances?

Resolution 68/NQ-CP of 1 July 2021 and Decision 23/2021/QD-TTg of 7 July 2021 introduce 12 support packages for employees and employers seriously affected by the COVID-19 pandemic. This update sets out the ones, enterprises might be most interested in. Qualification is subject to conditions set out in these documents.

To attract more foreign investment focusing on quality, efficiency, technology application, environment protection and that apply high technology, create added value, and connect global chains of production and supply a draft decision has been issued. It contains special incentives related to exemption or reduced applicable CIT rate.

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.

Why do manufacturers choose Vietnam as their second production market after China? Watch the webinar if you would like to learn more about doing business in Vietnam.

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.