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NEWS

What's Going On

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 July
DRAFT LAW ON SPECIAL ECONOMIC ZONES

The Draft Law on Special Administrative Economic Units intends to attract more foreign investments into Vietnam offering tax and other incentives in special economic zones in Quang Ninh, Khanh Hoa and Phu Quoc. The focus will be on the development of R&D activities, creative start-ups, new sciences and technologies, high-quality health and education, high-class resorts and tourism services.

14 February
DECREE 8 ON ABOLISMENT OF INVESTMENT CONDITIONS

Decree 8 sets out a wide range of amendments of investment conditions imposed on enterprises in various trade areas such as food production and trading, oil and gas, tobacco, electricity, and franchising. Its main objective is to reduce administrative procedures and easing doing business. The expected abolishment of the registration requirement for franchises did not materialise.

16 January
DECREE 9 ON TRADING (EXPORT/IMPORT) AND DISTRIBUTION FDI COMPANIES

Decree 9 gives information on business license requirements, issuance term, administrative procedures and relevant authorities. Requirements for foreign owned enterprises (FOE) to obtain a business licence are reduced, the retail sector is opened up and the same requirements apply to companies from non-WTO countries. The economic needs test (ENT) remains and new requirements are introduced.

10 January
DECREE 105 ON ALCOHOLIC BEVERAGE TRADING

On 1 November 2017 Decree 105 on alcoholic beverage trading took effect. The New Decree gives clear guidance on how the activity to sell and serve alcoholic beverages in restaurants and bars should be registered and licensed.

08 January
DECREE 126 ON EQUITISATION OF 100% STATE-OWNED ENTERPRISES (SOEs)

Decree 126 sets out the provisions that are relevant for the equitisation of SOEs. It provides for requirements for strategic investors, IPO (method and strategic investor), lock-up period, valuation method, financial issues and rights of employees.

03 January
NEW PENAL CODE

The new Penal Code brings the Vietnamese law more in line with international laws and introduces corporate criminal responsibility for criminal offences such as insurance fraud, tax evasion, violation of competition regulations, terrorism financing, money laundering, pollution, manufacturing of counterfeit products and corruption.

02 January
CIRCULAR 27 ON SELF CERTIFICATION OF GOODS ORIGIN IN AEC

Circular 27 on self-certification of certificate of origin no longer contains the requirement of total export turnover of at least USD10 million in the preceding year to ASEAN member states. This allows SMEs, and larger companies as well, to increase export to ASEAN countries and take advantage of preferential tariff treatment of the ASEAN Trade in Goods Agreement (ATIGA).

11 December
LABOUR LAW RELATED CHANGES

As of 1 October 2017 a work-permit can be requested on-line and as of 1 January 2018 foreigners are obliged to participate in the social insurance scheme and the amount on which the contribution is based changes, as more will fall under salary.

29 November
DECREE 71 ON CORPORATE GOVERNANCE FOR PUBLIC COMOPANIES

Decree 71 provides detailed guidelines on corporate Governance for public companies, regarding shareholders; the General Meeting of Shareholders, Board of Directors, Board of Controllers, prevention of conflict of interests, information disclosure and reporting.

07 September
DECREE 14 ON CROSS BORDER TRADE

Decree 14 provides details on cross-border trade activities with neighbouring countries China, Laos, and Cambodia. It contains specific provisions on trade activities in border areas and the purchase, sale and exchange of goods among border inhabitants.

23 July