With a view to promote the growth of the digital technology industry as a key contributor to the national economy, the Ministry of Information and Communications (the “MIC”) recently released the first draft of the Law on Digital Technology Industry (the “Draft DTI Law”) for public comments. On the basis of selectively inheriting relevant provisions of the Law on Information Technology (the “IT Law”) and other regulations, the Draft DTI Law aims to tackle various issues in the field of digital technology, with the potential to significantly impact businesses across various industries.

Vietnam’s National Assembly adopted on 24 June 2024 the amended Law on Organization of People’s Courts (the “Amended LOPC”), which will take effect on 1 January 2025 and replace the 2014 Law on Organization of People’s Courts. One of the significant changes introduced by the Amended LOPC is the establishment of the specialized court of first instance for intellectual property (the “Specialized IP Court”).

On 28 June 2024, the State Bank of Vietnam (“SBV”) issued Circular No. 23/2024/TT-NHNN (“Circular 23”), amending Circular No. 10/2016/TT-NHNN (“Circular 10”), to provide updated and detailed guidance on the provisions in Decree No. 135/2015/ND-CP (“Decree 135”) related to offshore indirect investment. Circular 23, which will take effect on 12 August 2024, introduces significant changes, particularly concerning offshore indirect investment activities of Vietnamese employees participating in the offshore employee’s stock ownership plans (the “ESOP”).

On 3 July 2024, the long-awaited Decree No. 80/2024/ND-CP (“Decree 80”) was issued by the Government with immediate effect, establishing a mechanism for the direct sale and purchase of electricity between renewable energy generators and large consumers. 

Key Takeaways

• Requirements for property developers have been updated to align with the new Law on Real Estate Business and the new Land Law.
• New incentives to attract developers of social housing.
• Developers must disclose the investment costs for building car parking lots.
• “Mini-apartments” will be granted House Ownership Certificates if they meet certain legal conditions.

On 11 June 2024, the Ministry of Finance published a Draft Law on Corporate Income Tax (the “Draft CIT Law”) introducing revolutionary reforms. One of the significant changes includes a transformation in how CIT is calculated for foreign entities engaged in capital transfer transactions in Vietnam.

15 May 2024 marks a transformative day for Vietnam’s financial landscape with the issuance of Decree No. 52/2024/ND-CP (“Decree 52”). This groundbreaking regulation is set to foster the development of payment products and services, addressing previous gaps and paving the way for a more robust, innovative financial ecosystem. 

Recently, the Ministry of Public Security (MPS) has submitted a proposed Draft Decree on Sanctioning Violations in the Cybersecurity Sector (the “Draft Decree”), which includes provisions addressing violations related to personal data protection within cyberspace. The Draft Decree consists of 4 Chapters and 51 Articles, structured on various explanatory reports integrating feedback and reviews from the legal framework concerning personal data protection.

There’s more to digital piracy in Vietnam. To some, it may just come across as the usual: streaming sites illegally delivering live sports, movies, music, videos, Japanese anime comic books and other pirated content to millions of visitors monthly. Among these are Phimmoi, Fmovies, 123movies, Aniwatch and Xoilac. Yet, many may not know that these pirate sites, whose operations are connected to Vietnam, are involved in organized crime.

In the context of increasingly active investment activities both inward and outward, Vietnam must adapt to global trends to remain attractive to potential investors. Recognizing this, the Ministry of Planning and Investment (the "MPI") has, after nearly three years of implementation, reviewed and revised, supplemented Circular No. 03/2021/TT-BKHDT dated 9 April 2021, prescribing templates for documents and reports related to investment activities in Vietnam, outward investment activities and investment promotion activities ("Circular 03").

In the realm of credit institutions (CIs) and public companies, good corporate governance is paramount to protect the legal rights and interests of shareholders and stakeholders, thereby fostering their trust and reliability. One of the cornerstones to enhance corporate governance is the role of independent directors (IDs), who offer impartial oversight and strategic consultation to the board of directors.

On 28 November 2023, Vietnam’s National Assembly passed the new Law on Real Estate Business (the “2023 REB Law”), which will take effect on 1 January 2025. The new law is expected to address the shortcomings of the existing Law on Real Estate Business of 2014 (as amended in 2020) (the “2014 REB Law”) and ensure alignment with the other relevant laws, such as the new Housing Law, the new Land Law, and the 2020 Investment Law. This article briefly summarizes some of the most worth mentioning new regulations and changes in the 2023 REB Law, along with their rationale. 

During the 13-year application period, the Law on Credit Institutions 2010, as amended in 2017 (the “2010 CI Law”) played an important role in shaping the regulatory landscape governing the activities of credit institutions, encompassing both management mechanisms and safeguards for the legal system’s integrity.

On 24 November 2023, the National Assembly passed the Law on Telecommunications No. 24/2023/QH15 (the “2023 Telecom Law”) to replace the Law on Telecommunications No. 41/2009/QH12, as amended in 2017 and 2018 (the “2009 Telecom Law”) which has been considered impractical and no longer suitable for the new development trend. The issuance of the 2023 Telecom Law has been voted as the most prominent ICT (Information and Communications Technology) event in 2023 by the ICT Press Club due to its far-reaching impact on the upcoming national digital transformation. This article will discuss some worth-noting new points introduced under the 2023 Telecom Law.

With the rapid development of digital technology, numerous concepts have proliferated in the virtual world, among which, virtual assets stand out as a prominent one. In practice, while some countries have recognized their legal validity, Vietnam has yet to officially acknowledge virtual assets. It appears as a commonly circulated asset in Vietnam while lacking legal status and specific identification provisions, leading to various loopholes and challenges for transactions and practical enforcement. The circumstance is deemed inappropriate and out of step with global trends as well as the era of digital technology development.

On its journey towards privacy empowerment, Vietnam has recently taken a monumental leap with the official launch of the National Portal for Personal Data Protection (NPDP). This event, following the enactment of Decree No. 13/2023/ND-CP on Personal Data Protection (Decree 13), marks a significant milestone in Vietnam’s commitment to securing privacy and fending legitimate rights of its citizens as data subject, immersing in the global trend of data protection.

On 8 November 2023, the State Bank of Vietnam ("SBV") issued Official Letter No. 8631/NHNN-CSTT ("OL 8631") to address several questions related to some provisions of Circular No. 39/2016/TT-NHNN dated 30 December 2016, which as amended and supplemented by Circular No. 06/2023/TT-NHNN dated 28 June 2023 (“Circular 39”) that regulates lending activities of credit institutions, foreign bank branches (collectively referred to as “CIs”) with respect to their customers.

On 22 June 2023, the Vietnam National Assembly officially passed the new Law on Electronic Transactions No. 20/2023/QH15 (the “2023 ET Law”), which will supersede the current Law on Electronic Transactions No. 51/2005/QH11 dated 29 November 2005 (the “2005 ET Law”) and take effect from 1 July 2024.

On September 18, 2023, the Government issued Decree No. 70/2023/ND-CP ("Decree 70"), amending and supplementing Decree No. 152/2020/ND-CP dated December 30, 2020, which regulates foreign employees working in Vietnam and the recruitment and management of Vietnamese employees working for foreign entities or individuals in Vietnam. Decree 70 took immediate effect upon issuance, except for the section regarding job postings as mentioned in Section 3, which is scheduled to become effective on January 1, 2024.

On November 6, 2023, the Vietnam Competition Commission (VCC) issued Decision 287/QD-CT, conditionally clearing an M&A transaction involving Kido Foods and Nutifood, both well-recognized brands in Vietnam. This decision is particularly notable, as it seemingly marks the VCC’s first conditional approval of economic concentration since its establishment in April 2023. Furthermore, the decision’s full-text public release is a noteworthy development. This step is especially significant in light of the Competition Law, which generally requires the national competition authority to publish complete versions of its decisions, a mandate that has been effective for more than four years.