NEWS

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 119 gives information related to the introduction of e-invoices in Vietnam. By 1 November 2020 companies are required to use the e-invoice and cannot use paper VAT invoices anymore.

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.

The Law on Product and Goods Quality sets out requirements products must meet before they can put on the Vietnamese market. Most notable changes in Decree 74 are the possibility to self-assess product conformity and that several products such as samples and luggage when arriving at Tan Son Nhat international airport, are exempted of inspection.

The Government seems to be more relaxed about foreign investment in the educational sector allowing more Vietnamese students to enrol, but investment capital and teacher qualification requirements have increased. The decree also contains criteria related to educational linkage, approval and accreditation requirements, joint programs for foreign language proficiency, and increased investment capital minimums.

Elaine Chew, Senior Associate of ACSV Legal, gave a presentation on 'How to structure your investment in Vietnam and an update on investing in industrial parks and special economic zones' at the event organised by Vietnam-Singapore Industrial Park in KL, Malaysia. Other companies participating in this event were Savills, KPMG, and VSIP. There were about 100 attendees.