Investment in Vietnam: New Laws and Regulations

WEBINAR EUROCHAM | INVESTMENT IN VIETNAM: NEW LAWS AND REGULATIONS

(Last Updated On: October 8, 2021)
Investment in Vietnam: New Laws and Regulations

Investment in Vietnam: New Laws and Regulations

WHO ARE BEING TREATED AS FOREIGN INVESTORS?

Who are being treated as foreign investors?

 

MARKET ENTRY CONDITIONS FOR FOREIGN INVESTORS

Market access conditions applied to foreign investors are the same as those applied to domestic investors, except for the case specified in the List of business lines prohibited or restricted to foreign investors.

PRINCIPLESEXPLANATION
Prohibited or not allowed for market
entry
Mentioned in the list of business lines that is prohibited or not allowed for market access
Entry with some
certain conditions and restrictions
Shall satisfy some conditions in accordance with Vietnam’s commitment in International treaties; and/or Vietnam domestic Laws and Regulations
No commitment and No domestic restrictionAllowed to access market same as the domestic investors

 

INVESTMENT LAWS AND REGULATIONS

Law on Investment 2020Decree 31/2021/ND-CP
Principles and policies on market entry and doing business investment activitiesDetailed procedures and guidance on Investment
Formalities of InvestmentDetailed conditions for investment; prohibited business line; restricted business line.
Conditions to get Investment certificatesDetailed procedures to implement, amend or terminate investment project
Investment promotion and incentivesPrinciples and subjects to enjoy investment incentives and support.

 

Law on Enterprise 2020Decree 01/2021/ND-CP on Enterprise registration
Principles and policies on company establishment, and management, restructuring, dissolution, default of EnterpriseDetailed dossier, procedures for establishment registration of enterprises, branches, representative office, business location
3 common forms for an FDI company: LLC, JSC, Partnership and relevant dependent unit like branches, representative office, business locationInter agency coordination of implementation: enterprise registration employment declaration social insurance participant code invoice use registration
Rights and Obligations of company’s legal representative owners, corporate governancePromote online services and e payment between the applicant and state agencies
Regulations of restructuring, dissolution, bankruptcyDetailed procedures to apply for restructuring, dissolution, bankruptcy

 

LABOR CODE AND REGULATIONS FOR FOREIGN WORKERS

Labor Code 2019Decree 152/2020/ND-CP on foreign workers
Principles and policies on employment standards; rights, obligations, responsibilities of employer and employee; grassroot at workplace and trade union; other direct relations with regards to the employmentElaboration of regulations on foreign employees
Labor contract; contract termination; labor disciplineQualifications for being deemed as experts; managers; executives or technical workers…
Foreign employees in Vietnam: Condition precedent to work; condition for recruitment; work permits and exemptions.Detailed procedures for employer to apply for getting approval on The demand of using foreign employees
Labor’s grassroots; Trade unionDetailed procedures to apply for work permits
Working hours; rest time; annual and holiday leave; retirement ageThe validity period of work permit; related procedures and conditions for extension, re grant, new issuance

 

TAX MANAGEMENT AND TRANSFER PRICING

Law on Tax Management 2019Decree 132/2020/ND-CP on the management of Enterprise having affiliate transaction
Principles and policies on administering different type of taxes, other receivables of state budgetPrinciples, methods, procedures to identify the factor composing the price in affiliate transaction
Applications to use electronic invoices, electronic vouchers…Identify parties having affiliate relations
Rights and obligations of taxpayersRights and obligations of taxpayers in affiliate transaction
Tax registration, declaration, payment, impositionPrinciples of analysis and comparison
Procedures of declaration
Information exchange mechanism

 

COMMERCIAL LAWS

Commercial Law 2005Law on Foreign Trade 2017Law on Competition 2018
All Commercial activities conducted in VietnamPrinciples and policies on foreign trade management, development of foreign trade activities; dispute resolutions…Principles and policies on anti competitive practices, economic concentration that causes or may cause anti competitive effects on the market of Vietnam; unfair competition practices.
Type of trader; rights and obligations of trader in some kinds of commercial activitiesExport Import; transit, temporary import and re export; temporary export and re import management activities and related techniques of inspection on goodsPrinciples of identifying the Related market, Market shares; market dominant
Some kind of commercial business, such as: sales of goods, export import, mercantile exchange, business promotion, franchising, commercial intermediary activities, logistics…The implementation of International treatiesThe prohibition of some anti competitive agreements; unfair competition
Provisions of Commercial contracts and mechanism of dispute resolutionSafeguard and trade remedies; anti dumping; measures; countervailing dutiesThe forms of economic concentration under M&A practices, joint ventures; and the procedures of reporting economic concentration
Procedures of dispute resolution at Government levelCompetition legal proceedings; and State management

 

LAW ON INTELLECTUAL PROPERTIES

Law on Intellectual Properties 2005Amended Law on Intellectual properties 2009
Principles and regulations on the copyright and its related rights, the rights on industrial properties, the rights on plant seeds and the protection for those rights.Some minor changes on the copyright; rights of industrial properties; plan seeds ownership;
Conditions and procedures to apply for the Protection of Intellectual properties rightsThe implementation on the principles of First to file
Civil proceedings on IP protectionThe punishment and penalties towards some infringement of
IP rights.
The implementation of some commitments in IP international treaties (TRIPS; UOPV)

 

LAW ON IMMIGRATION

Law on Immigration 2014Amended Law on Immigration 2020
Types, validity and conditions of application for VISA, Temporary Residence Card, Permanent Residence CardChanging the type of VISA without leaving Vietnam in some circumstances
The procedures to apply for VISA, TRC, PRCResidence terms for tourists
The procedure to enter, reside, exit, or transit in VietnamThe application of E VISA
Inter agency coordination to resolve the applicationVISA exemption for coastal economic zones

 

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Read more:

  1. Investment in Vietnam: Market entry procedures
  2. Investment in Vietnam: Restructuring – Acquiring and Selling a company
  3. Investment in Vietnam: New Laws and Regulations
  4. Investment in Vietnam: Managing the required compliances for a company
  5. Investment in Vietnam: Managing the required compliances for an foreign employee


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