ASEAN Framework Agreement on Services

On 11 November 2018, Vietnam and other Member States of ASEAN signed the Protocol to Implement the Tenth Package of Commitments under the ASEAN Framework Agreement on Services (Protocol).

Under the Protocol Vietnam has committed to give preferential treatment to investors from the ASEAN Member States in certain certain service sectors, including: freight transport (CPC 7222 – establishment of a joint venture with up to 51% of foreign ownership), building-cleaning services (CPC 874 – which is not committed under the WTO Commitments) and cleaning services (CPC 97001, CPC 97013 and CPC 97014 – which are not committed under the WTO Commitments).

The Protocol took effect on 9 February 2019 in Vietnam

Corporate

Fund for development of small and medium enterprises (SME)

Decree 39/2019/ND-CP on the organization and operation of a state fund for development of SMEs (“Decree 39”) was issued on 10 May 2019. The fund is established by the
state to support SMEs in lending and financing on a preferential basis, including an interest rate at a 20% discount to existing market rates.

To borrow from the fund an SME must meet certain conditions, including:

• be an SME (ie., total capital is no more than VND100 billion and total annual revenue no more than VND300 billion in preceding year);
• have owner’s equity of at least 20% of the total investment capital.

Decree 39 will come into force on 1 July 2019.

For more information, please click HERE.