New Draft Investment & Enterprise Laws for Vietnam
In June the National Assembly of Vietnam passed new investment and enterprise laws which will go into effect on January 1, 2021. Draft decrees have been released to the public which indicate potential wording,though it should be noted that final wording and content could change by January first. I came across briefs on both law revisions published by Baker-McKenzie, and have summarized what seems most relevant below.
Link to Baker-McKenzie brief: https://insightplus.bakermckenzie.com/bm/mergers-acquisitions_5/vietnam-new-investment-law-and-draft-guiding-decree
The biggest change to the investment law is that Vietnam will apply controls on foreign investment only on industries specifically identified in their conditional and prohibited lists. After this law is passed,businesses investing in industries not on the conditional or prohibited lists will be subject to the same requirements as domestic investors. Such requirements may still include permits, licenses, certificates, etc. The B-M brief includes the complete list of prohibited and conditional industries.
The investment law also includes new incentives for investors in high-tech sectors. Again, these are detailed in B-M’s brief.
Link to Baker-McKenzie brief: https://insightplus.bakermckenzie.com/bm/mergers-acquisitions_5/vietnam-new-enterprise-law
The changes to the enterprise law seem less significant and fall in three broad categories (listed below). More detail is provided in the B-M brief.
- Support for digital signature & process, to make sure they stand on equal footing with paper processes.
- Minor changes to governance structure for Joint Stock Companies.
- Minor changes to classification of State-Owned Enterprises.