NEWS

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.

ACSV Legal has contributed the Vietnam chapter of the 2021 edition. Mark is ranked in Legal 500 Asia Pacific and Chambers Asia Pacific for M&A and Hieu in Legal 500 Asia Pacific for Tax (Private Client) and M&A. If you would like to learn more, contact mark.oakley@acsvlegal.com or hieu.pham@acsvlegal.com.

The draft decree does address various points, however, there is still need for clarification with regard to for example the law governing PPP project contract, conditions related to equity transfer, disposal of collaterals, and restrictions on equity transfer as well as definition of policy enabling changes in developing a PPP project.

Decree 152 provides guidance on employement of foreigners following the entering into force of the new labour code per 1 January 2021. There are some changes related to exemptions as well as the requirements to be qualified as an expert or technical worker.

A short overview of the market landscape for the LNG-to-power projects as well as the key legal issues that would have to be taken into consideration, such as bankability, PPA, security assets, government guarantee and undertaking and equity contribution timeline.

The decree is expected to enter into force at the same time as the Law on Enterprises, being 1 January 2021. Some of the interesting changes are related to the enterprise registration, the suspension of it as well as the legal status of an enterprise.

The Draft Decree 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 order for Vietnam to meet its energy demands it is important to increase the energy capacity. With the slow in investment and the impact of Covid-19 on foreign investments, it is important that a transparent and reasonable FiT scheme will be announced as soon as possible.

This law intends to settle disputes under the umbrella of the courts and will be applicable to various types of disputes, such as disputes concerning civil transactions, commerce, labour, marriage and family as well as administrative disputes. This is broader than the currently applicable Decree 22 which only applies to commercial disputes.