vietnam

New Amendments to the Law on Laws 2015 in Vietnam

Những sửa đổi, bổ sung mới của Luật Ban hành văn bản quy phạm pháp luật 2015 tại Việt Nam

The National Assembly passed some amendments to the Law on Laws 2015 on 18 June 2020 which will become effective on 1 January 2021 (LPLD 2020). This legal update summarizes the new amendments.

Amendments to the interest expense cap under Decree 20/2017

In June 2020, the Government adopted Decree 68/2020 amending the rules on interest expense cap under Decree 20/2017. Under Decree 20/2017, the total interest expense which can be deductible for the purpose of calculating corporate income tax of a company must not exceed 20% of the company’s EBITDA. The restriction has caused massive objection from Vietnam enterprises since Decree 20/2017’s purpose is to regulate tax arising from related transactions but not to regulate corporate income tax in general.

Proof of origin under EU - Vietnam Free Trade Agreement (EVFTA)

Following our previous customs update on the EU -Vietnam Free Trade Agreement, the EVFTA officially took effect on 01 August 2020. However, pending approval by the Government of the decree regulating the special preferential export-import duty tariff schedule under the EVFTA, the General Department of Customs has issued Official letter 5575/TCHQ-GSQL dated 21/8/2020 guiding provincial customs authorities on procedures to accept proofs of origin.

New Law on Public Private Partnership

On 18 June, the National Assembly passed the Law on Public Private Partnership (PPP) which will come into effect from 1 January 2021 (except for Article 101.6 which halts the application of the BT contract form from 15 August 2020). While the new PPP Law shows the government’s strong commitment in attracting private sector investment to the country’s core infrastructure sectors, it also introduces certain fundamental changes to current PPP/BOT practices which will likely be of concern to foreign investors and lenders.

30% corporate income tax cut in 2020 - Newsbrief

The National Assembly has ratified a Resolution on reduction of 30% CIT payables in 2020, which will come into effect after 45 days from the signing date and apply to 2020 tax year.

Merger filling requirement arising from enforcement of security over shares or capital contribution under Vietnamese Competition Law - Legal Update

Yêu cầu thông báo tập trung kinh tế phát sinh từ việc xử lý tài sản bảo đảm là cổ phần và phần vốn góp theo Luật Cạnh Tranh của Việt Nam

Enforcement of security over shares or capital contribution by a lender, which results in a change of control of the borrower, may be considered as an economic concentration and subject to merger filing requirements under the Competition Law 2018. This could pose a serious timing problem for the lender.

A U-Turn About Preemptive Rights Of Existing Shareholders In Joint Stock Companies In Vietnam

Thay Đổi Toàn Diện Đối Với Quyền Ưu Tiên Mua Của Cổ Đông Hiện Hữu Trong Công Ty Cổ Phần Ở Việt Nam

The provisions on private placement of shares by non-public joint stock company under the new Enterprise Law 2020 now requires a non-public joint stock company planning to conduct a private placement of shares.

Rules of Origin under EU - Vietnam Free Trade Agreement

On 15 June, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT setting out rules of origin under the EU - Vietnam Free Trade Agreement. Circular 11 set out the criteria for originating products under the EVFTA, Certificate of Origin Form EUR.1 as well as guidance on product specific rules, cumulation of origin, application and inspection of origin of goods.

Vietnam’s Ratification of EVFTA and EVIPA

On 8 June 2020, Vietnam’s National Assembly passed resolutions on the ratification of the EVFTA and the EVIPA. While the EVFTA addresses matters relating to cross-border investments between Vietnam and the 28 state members of the European Union (the “Party”/”Parties”), the EVIPA establishes procedures for dispute resolution if the commitments under the EVFTA are not met.

Merger filling requirement arising from enforcement of security over shares or capital contribution under Vietnamese Competition Law

Yêu cầu thông báo tập trung kinh tế phát sinh từ việc xử lý tài sản bảo đảm là cổ phần và phần vốn góp theo Luật Cạnh Tranh của Việt Nam

Enforcement of security over shares or capital contribution by a lender, which results in a change of control of the borrower, may be considered as an economic concentration and subject to merger filing requirements under the Competition Law 2018. This could pose a serious timing problem for the lender.

Alert on Immigration - July 2020

As of 14 July 2020, Vietnam’s Ministry of Health informed a total of 373 cases of Covid -19 where 95% of affected patients have recovered and no dead recorded. Further, Vietnam has no new community infected case for nearly 3 months and has set up a nationwide new-normal-operation. In terms of the economy, Vietnam reported a 1.81 percent GDP growth in the first half of 2020, which is the lowest since 2011 as advised by the General Statistics Office.

Changes to the Law on Enterprises

On 17 June, the National Assembly passed the amended Law on Enterprises (new LOE) which will be effective from 1 January 2021 and replace the existing 2014 LOE.

Rules of Origin under EU - Vietnam Free Trade Agreement - July 2020 Update

Quy tắc xuất xứ hàng hóa trong Hiệp định thương mại tự do Việt Nam và Liên minh Châu Âu

On 15 June, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT setting out rules of origin under the EU - Vietnam Free Trade Agreement. Circular 11 set out the criteria for originating products under the EVFTA, Certificate of Origin Form EUR.1 as well as guidance on product specific rules, cumulation of origin, application and inspection of origin of goods.

RHTLaw Vietnam July 2020 Legal Updates: Amended Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; New Law on Tax Administration

Law 51/2019/QH14 on Entry, Exit, Transit and Residence of Foreigners in Vietnam; Law 38/2019/QH14 dated 13 June 2019 on Tax Administration: 1) Law No. 51/2019/QH14 provides for following remarkable updates on requirements relating to visas for foreigners, 2) Law No. 38/2019/QH14 shall replace Law No. 78/2006/QH11 (and its amendments) from 1 July 2020 and gives effect to notable amendments.

Is joint chairmanship in a joint stock company (JSC) allowed under Vietnamese law?

Đồng Chủ Tịch Trong Một Công Ty Cổ Phần (CTCP) Có Được Cho Phép Theo Pháp Luật Việt Nam?

New Criteria Of Anti-Competitive Agreements In Vietnam Under The Competition Law 2018

Tiêu Chí Mới Của Thỏa Thuận Hạn Chế Cạnh Tranh Tại Việt Nam Theo Luật Cạnh Tranh 2018

Governing law of an arbitration agreement in the absence of an express choice in Vietnam

Pháp luật điều chỉnh thỏa thuận trọng tài trong trường hợp không được lựa chọn rõ ràng tại Việt Nam

Issuance of Decree No.68/2020/ND-CP to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP regarding interest expenses of enterprises engaging in transactions with related parties

Quy định về Nghị định 68/2020/NĐ-CP mới ban hành sửa đổi, bổ sung Khoản 3 Điều 8 Nghị định 20/2017/NĐ-CP quy định về chi phí lãi vay đối với các doanh nghiệp có giao dịch liên kết

The Vietnamese Government has recently issued the Decree No. 68/2020/ND-CP in order to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP with regards to the deductibility of interest expenses for calculation of Corporate Income Tax. Decree 68/2020/ND-CP will take effective from tax year 2019 onward.

Letters of Credit (L/C) is subject to Value Added Tax (“VAT”)

Dịch vụ thư tín dụng (L/C) chịu thuế Giá Trị Gia Tăng (“GTGT”)

On 22 April 2020, the General Department of Taxation (“GDT”) issued Official Letter No. 1606/TCT-DNL to provincial tax departments confirming that the letter of credit service is subject to VAT according to the Law on VAT and the Law on Credit Institution.

Update on Vietnam Social Insurance

The Government issued Decree 58/2020/ND-CP on 27 May 2020 guiding employer's contribution to the Social Insurance Fund for occupational diseases and accident. Decree 58 comes into effect on 15 July 2020.