08 27 2020

The last few months have seen a bevy of changes in the enterprise audit environment in Vietnam. From a new decree outlining internal audit activities to the creation of an audit committee under the new 2020 Enterprise Law to the announced conversion from Vietnam Accounting Standards (VAS) to International Financial Reporting Standards (IFRS) the very foundations of audit in the country have been shaken. In an effort to keep you up to date on the most important changes, this special alert will review the big changes in the wind.

08 27 2020

On 24 June 2020, the Government promulgated Decree No. 68/2020/ND-CP ("Decree 68") amending Article 8.3 of Decree No. 20/2017/ND-CP dated 24 February 2017 regulating tax management of enterprises with related transactions [transfer pricing] (“Decree 20”) in respect of the total of deductible loan interest when assessing taxable income for corporate income tax (“CIT”) purposes. Decree 68 took effect on 24 June 2020, and will be applied to enterprises having related transactions from the fiscal year 2019 onwards.

08 25 2020

On 3 July 2020, the Ministry of Information and Communications (the “MOIC”) issued Circular No. 13/2020/TT-BTTTT on determining process-qualified software product manufacturing activities (“Circular 13”), and replacing Circular No. 16/2014/2020 dated 18 November 2014 of the MOIC (“Circular 16”).

07 29 2020

With a view to further improve the regulatory framework for investment and businesses, and to make Vietnam a more attractive investment destination, on 17 June 2020, the National Assembly of Vietnam has passed Law No. 61/2020/QH14 on Investment (the "New Investment Law") and Law No. 59/2020/QH14 on Enterprises (the “New Enterprise Law”), which both will come into effect on 1 January 2021 and respectively replace Law No. 67/2014/QH13 on Investment (the “Current Investment Law”) and Law No. 68/2014/QH13 on Enterprises (the “Current Enterprise Law”). Some remarkable changes introduced under the New Investment Law and the New Enterprise Law are discussed below

07 28 2020

In compliance with Resolution No. 35/NQ-CP dated 16 May 2016 on enterprise development policy to 2020, the Government has promulgated Decree No. 163/2018/ND-CP on 4 December 2018 on issuance of corporate bonds (“Decree 163”). For the last two and a half years since its promulgation, Decree 163 has supported enterprises in capital mobilization to develop business activities. According to the Ministry of Finance, from 1 February 2019 to the end of 2019, enterprises nationwide have conducted 848 issue tranches of corporate bonds with the total raised capital of VND259.377 billion. The implementation of Decree 163, however, has shown certain limitations affecting the publicity and transparency of capital mobilization through corporate bonds, the stable development of a corporate bonds market, and rights and benefits of investors.

07 14 2020

Investment projects in the form of public-private partnership (“PPP”) have played a significant role in developing Vietnam’s infrastructure and large-scale construction projects. Following the Government’s report on PPP investment, there have been 336 PPP projects implemented over the last 20 years. However, the legal framework for PPP projects is scattered in different pieces of legislation, including the Law on Public Investment, the Law on Bidding, the Law on Pricing, and Government Decree No. 63/2018/ND-CP dated 4 May 2018 on investment in form of PPP (“Decree 63”). Furthermore, several regulations remain unclear, overlapping or inconsistent.

07 13 2020

Law No. 58/2020/QH14 on mediation and dialogue at courts has been adopted on 16 June 2020 by the National Assembly, creating a new mechanism to assist in the settlement of civil disputes and administrative complaints (the “Court Mediation Law”). It is due to take effect from 1 January 2021, and expected to provide an effective method to save time for dispute resolution. Notable points of the new law are discussed below.

07 10 2020

On 17 June 2020, the National Assembly has passed Law No. 62/2020/QH14 amending and supplementing a number of articles of the 2014 Law on Construction (the “Amended Construction Law”). The Amended Construction Law will be effective from 1 January 2021, except for a number of articles which will enter into force on 15 August 2020. The Amended Construction Law is expected to consolidate regulations across different specialized laws, and reduce administrative procedures for investors. The key points are addressed below.

06 25 2020

The Ministry of Industry and Trade (the “MOIT”) has recently proposed a new decree (the “Draft Decree”) to amend and supplement Decree No. 52/2013/ND-CP dated 16 May 2013 on e-commerce (as amended by Decree No. 08/2018/ND-CP dated 15 January 2018) (“Decree 52”). The Draft Decree will remedy identified deficiencies in regulations and deal with issues that have occurred during the implementation of Decree 52 such as the sale of fake goods in e-commerce trading floors; the control of e-commerce activities on social network platforms; the control of cross-border e-commerce activities; the management of foreign investment activities in Vietnamese enterprises doing business in e-commerce trading floors; etc. 

05 29 2020

The steadily rising manufacturing costs in China caused by the ongoing US – China trade war have left many manufacturers with little choice but to break down their manufacturing activities and relocate to other territories outside of China. With the addition of the COVID-19 pandemic, the urgency to reduce manufacturing costs and stabilize operations has become even more relevant. With these dual crises in mind, Vietnam emerges as one of the most attractive potential markets for relocation—with its relatively low labor costs, favorable investment conditions, affordable rent, a reliably growing economy, and success in restraining and controlling COVID-19.

05 22 2020

With social distancing over, Vietnam has started to move towards the “new normal” of post-COVID-19. This alert will hopefully help Vietnamese enterprises to prepare for recovery in this “new normal” and in taking the necessary steps to transition workforces back to work safely. 

05 21 2020

On 7 May 2020, the Department of Construction of Ho Chi Minh City (the “HCMC DOC”) issued Official Letter No. 4801/SXD-PTDT (the “OL 4801”) seeking opinions on the draft report to the People’s Committee of Ho Chi Minh City (the “HCMC PC”) on the proposed procedures for development of commercial housing projects in Ho Chi Minh City as directed by the Vice Chairman of the HCMC PC in Official Letter No. 2837/VP-DT (the “OL 2837”).

05 12 2020

Given the impact of Covid-19 and to support the business community, on 8 April 2020 the Government of Vietnam issued Decree No. 41/2020/ND-CP on extension of deadlines for payment of taxes and land rent (“Decree 41”), which took effect from the date of signing. Below is a summary of the key contents of Decree 41.

05 08 2020

The Ministry of Information and Communications (the “MIC”) has presented to the Government a draft decree dated 21 April 2020 on the amendment and supplementation of Decree No. 72/2013/ND-CP dated 15 July 2013, on the management, provision and use of internet services and cyber information (“Decree 72”) and Decree No. 27/2018/ND-CP dated 1 March 2018 amending Decree 72 (the “Draft Decree”). The Draft Decree propounds new definitions and combines the existing regulations in the governing sectors, including social networks and cross-border provision of public information. Accordingly, the Draft Decree empowers the management role of the Government authorities as well as details the obligations of relevant entities.

05 05 2020

On 24 March 2020, the Government issued Decree No. 35/2020/ND-CP (“Decree 35”) providing detailed regulations for implementation of the new 2018 Law on Competition (the “2018 Competition Law”), which took effect on 1 July 2019. This decree will come into force from 15 May 2020. The 2018 Competition Law and its guiding rules under Decree 35 would significantly impact the M&A sector in Vietnam, as they expand the scope of transactions which are subject to economic concentration review.

04 24 2020

On 1 April 2020, the Prime Minister of Vietnam issued Decision No. 447/QD-TTg declaring Coronavirus (Covid-19) as a national pandemic in Vietnam. In addition, Vietnamese government has imposed numerous measures to minimize the spread of the Covid-19 and mitigate the economic impact of the Covid-19 outbreak which include:

04 17 2020

On 3 February 2020, the Government of Vietnam has issued Decree No. 15/2020/ND-CP on administrative sanctions in the sectors of postal, communications, radio frequency, information technology and electronic transactions (“Decree 15”), which came into effect on 15 April 2020 and superseded Decree No. 174/2013/ND-CP (“Decree 174”). Decree 15 adds remarkable regulations on administering the use of a social network platform (“SNP”) and information transmitted thereon and clearly assigning obligations of SNP users as separate from a social network service provider (“SNSP”).

04 06 2020

The significant growth of ride hailing services in Vietnam has widely been considered a major breakthrough in the transportation industry. Nevertheless, it has not been formally regulated under the current laws of Vietnam and the operation of ride hailing services by cars has caused several obstacles in terms of management. 

01 06 2020

On 20 November 2019, the National Assembly of Vietnam issued a new Labor Code with the purpose of promoting the Vietnamese labor market and solving essential problems from practical implementation of the Labor Code 2012. It is intended to create a more flexible legal framework on employment and harmonize the legitimate rights and interests of employees and employers under the overall socio-economic development of Vietnam.

08 25 2019

Recently, an updated draft new Law on Securities (the “Draft Law”) has been released by the Ministry of Finance for public comments, with a view to further improve the regulatory framework for the securities market in Vietnam. The Draft Law if adopted will take effect from 01 January 2021, and shall replace the existing legislation, Law No. 70/2006/QH11 on Securities dated 29 June 2006 as amended in 2010 (the “Current Law”). This article discusses some major changes under the Draft Law as compared with the Current Law. 

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