LEGAL UPDATE: Did you know the Government has issued a new Investment Law and Enterprise Law, two of the most important pieces of legislation regulating doing business in Vietnam, whether you are a foreign or Vietnamese investor?
Both laws will become valid on 1 January 2021.
Some of the most significant changes in our views are:
1. ‘Nominee arrangements’ will lead to revocation of the licence for a project and therefore the consequences are very serious.
2. Start-ups in tech or innovative sectors are now specifically recognised under the Investment Law. Investors in these sectors do not need to have an investment project and do not have to apply for an Investment Registration Certificate, both of which are requirements with respect to all other types of investment that foreign investors have to satisfy.
3. The threshold of foreign ownership of 51% based on which a Vietnamese conpany will still be considered as a local investor has now been reduced to 50%.
4. The Prime Minister will be granted discretion to provide incentives and policies for certain types of projects.
We have updated our Guide to Doing Business in Vietnam accordingly.
Here is the link:
We will also share a more detailed legal update of the changes clause-by-clause in the next few days.
DN Legal, 30 July 2020