Asia Legal

After more than 2 years of applying Decree 90/2019/ND-CP regarding the regional minimum wage for employees working under labour contracts, recently, the Vietnamese Government promulgate Decree 38/2022/ND-CP to raise it by 6% which has come into effect on July 1, 2022. (Unit: VND/month) Table 1: Minimum wage per month for employees under new regulations This growth will affect the following labour issues which the employers should be aware of: 1.         Increase the employee salary The minimum wage is the lowest salary paid to the employees performing the simplest work in normal working conditions to ensure a minimum living standard for them and their families. Hence, the salary for each job must not be lower than the minimum wage [2] . If the employers are paying a salary lower than the regional minimum wage specified in Decree 38/2022/ND-CP to the employees from July 1, 2022, they are responsible for increasing the salary. O...

Mergers and Acquisitions (“M&A”) has long become a popular term. M&A transactions not only bring benefits to the parties involved, such as increasing the efficiency of business operations or reducing or eliminating competitive pressures from competitors but also become an effective channel for capital mobilization for the economy, promote the process of renovating the growth model, restructuring the economy, and equitizing state-owned enterprises. Despite being affected by the COVID-19 pandemic, the M&A market in Vietnam still has grown strongly with many successful deals. In the first 10 months of 2021 alone, the M&A market attracted USD 8.8 billion, up 17.9% compared to 2020 and 13.7% compared to 2019. [1]   M&A is not just a potential playground for domestic investors but also a good opportunity for foreign investors. This article analyzes each of the three most common types of M&A transactions in Vietnam: asset purchases, share/contribution purchases, an...

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...