Deal Update:

• Acted for VI Group on the sale of its 10% interest in Gemadept Corporation, a infrastructure and logistics company listed on the Ho Chi Minh City Stock Exchange to Sumitomo Corporation for approximately USD37million.

Alcohol Safety

Control of harmful effects of alcohol 

The law on preventing and fighting harmful effects of alcohol and beer was adopted by the National Assembly of Vietnam on 14 June 2019.

The law has tightened regulations on alcohol consumption. It is now expressly prohibited from consuming alcohol during working hours (including lunch and other breaks) for officials, public employees and employees working for organizations, officers, enlistees, noncommissioned officers, soldiers and persons working for People’s Armed Force, and students.

It is illegal to drive after having consumed any alcohol. Previously it was permitted to drive after drinking as long as it was below the regulated limit. This zero tolerance policy on drink driving is hoped to stop the increase in traffic accidents due to alcohol.

The Law will take effect on 1 January 2020.

Insurance

Amendment to Law

On 14 June 2019 Law No. 42 was passed amending (amongst others) the Law on Insurance Business.

The amendments to the law address insurance auxiliary services for the first time defining those as: (i) insurance consultancy, (ii) insurance risk assessment, (iii) insurance calculation (actuarial services), (iv) insurance loss assessment and (v) insurance indemnity settlement support.

The law stipulates auxiliary insurance service providers must meet the standard insurance business conditions, such as having qualified staff. In addition, responsibilities are provided such as confidentiality of customer information must be maintained and professional indemnity insurance for each type of insurance auxiliary service must be obtained.

Those organizations currently providing insurance auxiliary services must satisfy these conditions by 1 November 2020 otherwise they will not be permitted to provide such services.

For more information, click HERE.