Methods of direct investment into Vietnam

With the strong competitive advantages of geography, natural resources, and an abundant labor force, Vietnam is one of the leading investment destinations in Southeast Asia, attracting a large amount of capital each year. Despite being affected by the COVID-19 pandemic, in 2021, total newly registered, adjusted, and paid-in capital for share purchase by foreign investors reached about USD 31.15 billion, an increase of 9.2% compared to the same period in 2020, focusing mainly on some sectors, namely processing and manufacturing, electricity production and distribution, real estate business, wholesale and retail [1] . To be able to achieve this impressive figure, the Government of Vietnam has developed many policies to support investors, helping them to access the Vietnamese market easily and effectively. In order to help foreign investors easily find the right methods to maximize the benefits of direct investment in Vietnam while still complying with relevant laws, we have published thi

The integrity of data message from a legal perspective (Part 3)

In Vietnam, electronic documents, emails, telegraphs, faxes,… which are familiar forms and can be easily collected and evaluated the integrity, electronic data is a much more comprehensive and diverse concept. The definition of electronic data specified in Clause 1, Article 99 of the Criminal Procedure Code 2015 may refer to: ” Electronic data is a   symbol, letter, digit, image, sound or similar form created, stored, transmitted or received by electronic means”.   Electronic data is collected from electronic media, computer networks, telecommunication networks, online, and other electronic sources collectively referred to as the electronic environment. Electronic data is invisible and immaterial because the electronic environment is a “virtual” environment. In addition, non-border or territorial electronic data may be initiated in one country while such data is stored in another (e.g., online gambling cases in Vietnam but the server system that stores gambling data is all abroad). Wit

The integrity of data message from a legal perspective (Part 2)

In the previous article, it has been stated that the hidden contents and information is part of a data message and must also be kept intact from the time such data message is initialized for the first time. However, there are many practical cases where users may print files and documents that contain the displayable contents of a data message into paper copies to sign, stamp and then scan such paper copies again, save them in different formats/extensions or simply take pictures to send to each other. How can we ensure that the content of data messages remains intact during the above-mentioned conversion process? 1.   The data message has the same value as the original b)     The content of the data message is accessible and usable in its complete form as needed. According to Clause 2 Article 13 of the Law on E-Transactions, one of the requirements to ensure the validity as the original of a data message is that its content can be accessed and used in its complete form when needed. The

The integrity of data message from legal perspective (Part 1)

Recently, most parties involved in electronic transactions have been expressing an outstanding interest in the integrity of   data messages   since it is considered one of the important criteria to determine the value as evidence and the value as the original of such   data messages. According to the definition in the Law on Electronic Transactions 2005 : “Data message is information created, sent, received and stored by electronic means”.  In a guiding resolution of the Judicial Council of the Supreme People’s Court, electronic data messages used in electronic transactions must be formatted according to the provisions of the law on electronic transactions and the guidance of the Supreme People’s Court, by forms such as electronic data exchange, electronic documents, electronic mail, telegram, telegraph, fax and other similar forms. This article shall be divided into parts to thoroughly evaluate the integrity of the data message, which is the basis for determining (i) the original valu

ESOP of non-public companies in Vietnam

In recent years, Employee Stock Ownership Plan (" ESOP ") is becoming a popular solution for Vietnamese enterprises in their human resources strategy. The issuance of shares under ESOP (" ESOP Shares ") by the public company is subject to regulations of Law on Securities, which shall not be applied to the non-public company. This article expresses some relevant respects of issuing ESOP Shares by the non-public company in compliance with current Vietnamese Law. Conditions of ESOP Shares issuance While the public companies planning to issue ESOP Shares shall closely comply with provisions of Decree No. 155/2020/ND-CP promulgated by the Government on 31 December 2020 guiding on the execution of Law on securities (hereinafter referred to as " Decree 155/2020 "), the non-public company shall not be subject to. Although conditions for ESOP Shares issuance of the non-public company are absent in Law on Enterprises as well as other legal documents, the non-public

9 reasons why foreign investors should invest in Vietnam

In Southeast Asia, Vietnam is considered an attractive destination for the investors from various countries. According to the statistics of the Foreign Investment Department (Ministry of Planning and Investment), upto August 20, 2020, there have been 32,539 valid projects with a total registered capital of nearly 381.2 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 223.1 billion USD, equal to 58.5% of total valid registered capital with Korea being ranked first, Japan second, followed by Singapore, Taiwan and Hong Kong.  “To illustrate the above, Asia Legal lists out 9 reasons why the foreign investors (Hereinafter referred to as “the Investors”) select Vietnam as their potential investment destination:” First,  Vietnam has a particularly favorable geographical position with the possession of a long coastline (3,260 km) and many deep-water seaports, as well as a gateway to international goods trade by sea. Besides, the mainland is b

Investment incentives – In what cases the foreign investors are eligible for when investing in Vietnam?

Currently, the Government of Vietnam has issued various investment incentive policies for the purpose of attracting foreign investors to invest in Vietnam. Therefore, when the foreign investors implement an investment project in an area eligible for investment incentives in accordance with the law of Vietnam, they will be entitled to one of the following incentives [1] : Corporate income tax incentives, including application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution; exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax. Exemption from import tax on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes in accordance with regulations of law on import and export tax; Exemption from and reduction of land levy and land rents; Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.