Asia Counsel Vietnam Insights: May 2021
Asia Counsel Insights provide an overview of the key trending legal and business issues in Vietnam and how they may impact your business. Please enjoy your read.
Deal Update:
• Advising a UK based investment fund on its investment in a rooftop solar portfolio in Vietnam.
• Advising G Group and G Pay on their Series A investment by KB Securities.
New Decree on Investment Law: On 26 March 2021, Decree 31/2021/ND-CP Guiding the Implementation of the Law on Investment (“Decree 31”) was adopted by the Government to replace Decree 118/2015/ND-CP (“Decree 118”). Notable updates from Decree 31 include: Foreign Investment Sector Restrictions Decree 31 provides a list of business sectors that are subject to investment restrictions, which includes:
(i) a list of prohibited business sectors.
(ii) a list of conditional business sectors for foreign investors.
Prohibited sectors now include 25 business sectors (such as press activities and private investigation services). Conditional business sectors include 58 business sectors (including advertisement, education and logistics services). The market approach conditions for foreign investors are posted in the National Investment Portal (vietnaminvest.gov.vn). Any business lines that are not included in the list (such as management consultancy) are open 100% foreign ownership on the same conditions as domestic Vietnamese investors Any business sectors that are not committed under international treaties to which Vietnam is a party, are subject to Vietnamese domestic laws. If Vietnamese law is silent on restrictions for a specific business sector, foreign investors will be treated on the same terms as local entities and will therefore, no longer need to obtain ministerial opinions (as per the previous regulations). Furthermore, non-WTO-member foreign investors are entitled to receiving the same investment conditions as WTO member foreign investors, unless stated otherwise in any applicable law or treaty.
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