VIETNAM – LEGAL ALERT ON DECREE 69/2024/ND-CP ON ELECTRONIC AUTHENTICATION AND IDENTIFICATION

On June 25, 2024, the Vietnamese Government issued Decree 69/2024/ND-CP (Decree 69), effective from July 1, 2024, replacing Decree 59/2022/ND-CP. Decree 69 regulates electronic identification (e-ID) and authentication (EIA), with specific provisions for foreigners residing or having activities in Vietnam and enterprises operating in Vietnam.
I. Regulations on Electronic Identification for Foreign Individuals
1. Subjects eligible for EIA
– Foreign nationals aged 6 years and older who have been issued a permanent residence card or temporary residence card in Vietnam are eligible for a Level 1 EIA account and a Level 2 EIA account upon request (Article 7.2 Decree 69)
– Foreign nationals under 6 years old who have been issued a permanent residence card or temporary residence card in Vietnam are eligible for a Level 1 electronic identification account upon request (Article 7.2 Decree 69)
2. The IT infrastructure in Vietnam to do this registration
Vietnam’s IT infrastructure supports e-ID registration through the VNeID application and the national EIA system managed by the Ministry of Public Security (MPS). The system is integrated with the National Public Service Portal (NPSP) and ministerial/provincial information systems, enabling seamless online administrative procedures.
3. Step-by Step e-ID Registration for Foreign Nationals
Foreigners can register for e-ID accounts (Level 1 or Level 2) through the following steps:
• Level 1 e-ID Registration (Article 11.1 Decree 69):
o Use a mobile device to access VNeID.
o Enter passport or valid international travel document details, along with an email address or phone number (if available), and provide the required information following the instructions in the National Identification App.
o Take a portrait photo via the app and submit the registration request.
o The EIA management agency will verify the information and notify the result via VNeID, a registered mobile phone number, or an email address within 01 working day (Article 13.4(a) Decree 69)
• Level 2 e-ID Registration (Article 11.1 Decree 69):
o Visit the immigration management agency under the Ministry of Public Security or the provincial-level police department, present their passport or valid international travel document.
o Provide required information on the application form, including a registered mobile phone number, email address (if available), and any additional details requested for integration into the National Identification App.
o The receiving officer will enter the provided information into the electronic identification and authentication system, capture a facial image, and collect fingerprints for verification against the National Immigration Database.
o The immigration management agency will submit the request for an EIA to the EIA management agency.
o The EIA management agency will notify the registration result via the National Identification App, a registered mobile phone number, or an email address within 3 working days (if biometrics exist) or 7 working days (if not) (Article 13.4(a) Decree 69)
o Foreign nationals under 14 years old, those under guardianship, or those requiring representation must visit the immigration management agency under the MPS or the provincial-level police department along with their guardian or representative to complete the Level 2 electronic identification account registration process.
• Activation: Activate the e-ID account within 7 days of receiving the registration result via VNeID. If not activated, contact the EIA help desk for support. (Article 14.1 Decree 69)
• For Minors or Wards: Parents or guardians must use their registered mobile number to register Level 2 e-ID accounts at a police station or ID issuance location.(Article 11.1(d), 11.2(e) Decree 69)
Level 2 e-ID accounts allow access to more extensive online services, including national and specialized databases, compared to Level 1 accounts, which are limited to basic personal information verification.
4. Notes
– Existing Accounts Expiry: Accounts created by the NPSP and administrative procedure resolution systems at the ministerial and provincial levels for individuals will remain valid until June 30, 2024. (Article 40.3 Decree 69).
– Optional but Recommended: From July 1, 2024, e-ID registration is not mandatory for foreigners, as it is issued upon request (Article 7.2, Decree 69). However, foreigners are encouraged to register to facilitate access to digital administrative services, such as online public services, banking, or civil transactions.
– Practical Considerations: While the VNeID app supports online transactions, its utility is limited. Many services still require hard-copy documents (e.g., passports or residence permits), and the app may face delays or errors due to outdated updates. Vietnam’s digital infrastructure, though advanced, is not fully digitized, leading to challenges like inconsistent app performance, language barriers, and reliance on physical paperwork. Foreigners should register for better access to public services but carry original documents as a backup for these practical hurdles.
II. Regulations on Electronic Identification for Agencies and Organizations Operating in Vietnam
1. Subjects
Agencies and organizations established or registered to operate in Vietnam are granted electronic identification accounts of all levels (Article 7.3, Decree 69).
2. Procedures for Issuing Electronic Identification Accounts for Enterprises
– Online: The legal representative, head of the agency or organization, or an authorized individual uses their Level 2 electronic identification account to log into VNeID, submit required information, and request an electronic identification account with consent from other legal representatives (if applicable).
– In-person: The legal representative, head of the agency or organization, or an authorized individual submits the application form at the Electronic Identification and Authentication Management Agency or Identity Management Authority.
– Verification: The Electronic Identification Management Agency checks information in national database; if unavailable, further verification is conducted. Processing time is up to 3 working days if the organization’s information exists in national or specialized database and up to 15 working days if verification is required due to missing data. (Article 13.4 Decree 69)
– Notification: Results are sent via VNeID, mobile number, or email. If rejected, a formal notification is issued.
3. Notes
– Existing Accounts Expiry: Public service portal accounts for agencies/organizations shall expire on June 30, 2025 (Article 40.4, Decree 69).
– Optional but Recommended: From July 01, 2025, although not mandatory, businesses should register for e-ID for administrative efficiency.

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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Anwalt in Vietnam Dr Oliver Massmann Vietnam – rechtliche Darstellung zum Abschluss der neuen Verordnung zum Elektrizitätsgesetz

Um das neue Gesetz zum Elektrizitätsrecht Nr. 61/2024/QH15 – welches von der Nationalversammlung am 30. November 2024 beschlossen wurde – umsetzen zu können verabschiedete die Regierung am 3. März 2025 eine Serie an Verordnungen, namentlich
(i) Verordnung Nr.56/2025/ND-CP sie enthält detaillierte Beschreibungen über die Implementierung einer Anzahl von Artikeln des Elektrizitätsgesetzes in Bezug auf die Stromentwicklungsplanung, Stromnetzausbau, Investionen in Stromprojekte, und Ausschreibungen für Elektrizitätsprojekten (Verordnung 56),
(ii) Verordnung Nr.57/2025/ND-CP Regulierung von unmittelbaren Stromkaufmechanismen zwischen Erzeugern erneuerbarer Energien und Großverbrauchern von Storm (Verordnung 57),
(iii) Verordnung Nr.58/2025/ND-CP Bereitstellung von detaillierten Leitlinien für eine Anzahl von Artikeln des Elektrizitätsgesetzes in Bezug auf Entwicklung von erneuerbaren Energien und neuer Energie (Verordnung 58),
(iv) Verordnung Nr.61/2025/ND-CP mit detaillierten Leitlinien für eine Anzahl von Artikeln des Elektrizitätsgesetzes bezogen auf die Lizenz für Elektrizitätserzeuger (Verordnung 61).

Im Folgenden stellen wir Ihnen die ausschlaggebenden Punkte der oben dargelegten Verordnung vor.
1- Verordnung 56
1. Voraussetzungen für die Aufnahme in den Masterplan:
Die folgenden Stromprojekte sind von den Anforderungen für die Aufnahme in einen Masterplan befreit:
– Selbsterzeugende und Eigenverbraucher von erneuerbaren und neuen Energiequellen die entweder Netz-verbunden bei einer niedrigen Spannung von ≤ 1kV sind oder keiner Verbindung zum Netz haben
– Netz-verbundenen Stromquellen welche nicht ausgestattet sind mit Exportsystemen
– Stromquellen die überschüssig generierte Hitze aus dem Eigenverbrauch nutzen, unabhängig davon, ob sie verbunden oder nicht verbunden sind zum nationalen Stromnetz, solange kein Strom verkauft wird an das Stromnetz
– Stromquellen, die nicht an das nationale Stromnetz angeschlossen sind oder nicht an dieses verkaufen, außer für den Fall des Stromimports oder -exports (z.B. Stromquellen für den privaten Verkauf und Ankauf)
– Stromnetze von ≤ 1kV Spannungslevel.
2. Der Bieterprozess für die Investorenauswahl
– Anwendbare Projekte: Gas-zu-Strom Projekte, Kohlkraftwerkprojekte und erneuerbare Energien Projekte (einbezogen sind Solarenergie, Windenergie, Wasserkraftenergie, und Energie aus Biomasse), diese sind einbezogen in den nationalen oder regionalen Masterplan und haben ≥ 02 interessierte Investoren.
– Elektrizitätsverbraucher: Vietnam Electricity (EVN) (oder ihre autorisierten Einheiten) und ihre fünf Strom Gesellschaften.
– Bieter Dossier: Folgende Informationen sind unter anderem in dem Bieterdossier enthalten:
o Elektrizitätsverbraucher.
o Bericht der vorläufigen Studie über die Durchführbarkeit.
o Entwurf Stromverkaufsvertrags (PPA).
o Durchgangsmechanismus und Langzeitvertrag über Mindeststromerzeugungsmechanismus als Investitionsgarantiemechanismus.
– Bewertungskriterien für die Entwicklung der Effektivität der Stromindustrie:
o Für die Bewertung der Effektivität, wird die Bewertung des Bieters in Bezug auf den Stand der Entwicklung der Stromindustrie zwischen 80% und 90% des Prozentsatzes der Punktevergabe zur Bestimmung des Gewinners beisteuern.
o Stromtarife für Projekte mit Tarif Rahmenbedingungen vorgegeben vom MOIT: Der festgelegte oberste Tarif muss in diesen Fall geringer oder gleichhoch zu dem obersten Tarif sein, welcher spezifiziert im Bieter Dossier ist. Die Bieter müssen einen Stromtarif vorschlagen, welcher niedriger oder gleichhoch zu dem obersten Tarif für den Stromkäufer ist, und der gewinnende Bieter muss den PPA-Tarif aushandeln.
o Beiträge zu dem staatlichen Budget für Projekte, die keinen Tarifrahmen haben vom MOIT: Der jährliche Mindestbeitrag zu dem staatlichen Budget (unabhängig von der rechtlichen Verpflichtung der Investoren gegenüber dem staatlichen Budget); der Bieter muss einen Betrag vorschlagen, welcher höher oder gleichhoch ist zu dem Betrag im Bieter Dossier.
– PPA-Diskussion und Umsetzung:
o Genehmigung des Berichts der Durchführbarkeitsstudie (FS): Innerhalb von 15 Monate (für Wasserkraft, Gas-zu-Strom, Kohlekraftwerk-, und Windkraftwerkprojekte) oder sechs Monate (für Biomassekraft und Solarstrom Projekte) seit des Umsetzungszeitpunkts des Projektvertrages.
o PPA-Verhandlungen und Umsetzung: laut der Ergebnisse des Bieterwettbewerbs und der Genehmigung des FS-Bericht, muss der erfolgreiche Bieter innerhalb von drei Monate von dem Tag an, an dem der Stromkäufer einen gültigen Antrag vorlegt, einen PPA abschließen.
– Übergangsbestimmungen: Stromerzeugungsprojekte die bereits Bestandteil des Masterplans sind werden auch weiterhin umgesetzt durch die zuständigen Behörden. Diese Projekte sollen in den Provinzplan aktualisiert oder aufgenommen werden, nachdem Inkrafttreten dieser Verordnung.
2- Verordnung 57
Verordnung 57 ersetzt Verordnung Nr.80/2024/ND-CP, welche von der Regierung am 3. Juli 2024 erlassen wurde und Bestimmungen über Mechanismen für den direkten Stromhandel zwischen erneuerbarer Energie Erzeugern und Großverbrauchern von Elektrizität enthält (Verordnung 80) mit den folgenden beachtenswerten Bestimmungen:
1. Modelle von Direktstromkäufen: Ähnlich zu Verordnung 80, regelt Verordnung 57 (i) das private Direktleitungsmodell, in welchem Erzeuger erneuerbarer Energien Strom direkt an Großverbraucher über private Stromleitung verkaufen, und (ii) nach dem netzgebundenen Modell erfolgt der Verkauf und Ankauf von Elektrizität über das Netz.
2. Wichtige Änderungen: Verordnung 57 ersetzt die Verordnung 80 und übernimmt ausgewiesene Mechanismen aus der Verordnung 80. Die Verordnung 57 führt Änderungen ein, um die Durchsetzbarkeit der DPPA-Mechanismen zu verbessern.
– Anwendungsbereich für zugelassene erneuerbare Energiequellen: Energieerzeuger von Biomasse werden in Verordnung 57 aufgenommen als regulierte Erzeuger erneuerbarer Energie.
– Großverbraucher von Elektrizität: Während nur industrielle Verbraucher unter der Verordnung 80 erfasst wurden, werden in der Verordnung 57 auch Unternehmen als eine Art Großverbraucher definiert, die Ladesäulen für Elektrofahrzeuge anbieten.
– aufgenommen, die Ladestationen für elektrische Fahrzeuge anbieten.
– Teilnahmebedingungen:
o Für Großverbraucher von Elektrizität, welche Elektrizität seit 12 Monate oder mehr verbrauchen: Der durchschnittliche Energieverbrauch über die letzten 12 Monate (kalkuliert basierenden auf dem gesamten Energieverbrauch des Stromanbieters oder ihrer autorisierten Einheiten) darf nicht geringer als der Schwellenwert des Mindeststromverbrauchs für Großverbraucher von Elektrizität sein, wie sie in den Vorschriften des Ministerium für Industrie und Handel („MOIT“) für den Wettbewerbs ausgerichteten Strommarkt festgelegt sind.
o Für Großverbraucher von Elektrizität, welche Elektrizität seit weniger als 12 Monate verbrauchen: Der durchschnittliche Energieverbrauch wird bestimmt durch den prognostizierten Energieverbrauch, welcher von einem Stromanbieter (oder ihrer autorisierten Einheiten) erworben wurde, und muss den Mindestverbrauchsschwellenwert für Großverbraucher erreichen oder übersteigen, wie sie in den Vorschriften des MOIT aufgestellt sind.
– Limitierungen für Überschussstrom durch Dachsolarpanelen: Überschüssig erzeugter Strom von Dachsolarpanelen, welcher direkt an Großverbraucher von Elektrizität verkauft wird, darf nicht mehr als 20% der gesamten Stromerzeugung überschreiten. Der Preis für den Überschussstrom wird anhand des durchschnittlichen Elektrizitätspreises am Markt vom vorherigen Jahr berechnet, so wie er von dem Stromnetz- und Strommarktbetreibern gemeldet wurde. Der Preis darf nicht höher sein als die Preisstruktur für Freiflächen Solaranalagen.
– Preisrahmen: Wie für die privaten Elektrizitätsmodelle, darf der Verkaufspreis von Elektrizität nicht den Höchstpreis des Preisrahmens übersteigen. Gleichzeitig muss der Überschussstrom, welcher durch erneuerbare Energien erzeugt wird und an die Vietnam Electricity Group, Stromanbieter, oder Elektrizitätsunternehmen verkauft wird, einen vorherigen abgestimmten Preis zwischen den Parteien entsprechen. Dieser darf den Höchstpreis innerhalb des Preisrahmens für die bestimmten Art der Stromquelle nicht übersteigen.
3- Verordnung 58
Verordnung 58 ersetzt Verordnung Nr.135/2024/ND-CP, welche am 22.Oktober 2024 beschlossen wurde von der Regierung über Strategien, welche die Entwicklung von selbstproduzierenden und selbstverbrauchenden Dachsolarpanelen anregen soll (Verordnung 135) und die folgenden Bestimmungen enthält:
1. Anreize für erneuerbare Energien Projekte:
o Befreiung von Seegebietsbenutzungsgebühren während der Zeit der Bauarbeiten, jedoch dürfen diese drei Jahre nach Start der Bauarbeiten nicht übersteigen. Es werden 50% dieser Gebühren erlassen für Bauarbeiten, die bis zu neun Jahre dauern;
o Gebühren für die Landnutzung oder Landpacht werden vollständig erlassen, wenn die Bauarbeiten seit Beginn drei Jahre nicht übersteigen. Nach dem Befreiungszeitraum können Gebühren reduziert werden im Einklang mit Bestimmungen des Rechts für Investitionen und Land;
o Für langfristig vereinbarte Verträge beträgt die Mindeststromerzeugung 70% innerhalb des Zeitraums der Rückzahlung des Kredits. Der Zeitraum von höchstens 12 Jahren darf jedoch nicht überstiegen werden, außer eine abweichende Vereinbarung wurde zwischen dem Investor und dem Stromabnehmer getroffen. Diese Handhabung findet keine Anwendung, wenn das betroffene Projekt die Mindestabnahmemenge aufgrund von Gründen auf der Projektseite oder wegen Ladungsnachfrage oder technischen Problemen des Stromsystems nicht erfüllen kann;
2. Erneuerbare Energien Projekte die qualifiziert sind für Anreize:
o Erneuerbare Energie Projekte welche zu 100% grünen Wasserstoff, 100% grünen Ammoniak oder einer Mischung dieser beiden produziert werden;
o Projekte welche Elektrizität in das nationale Stromnetz einspeisen;
o Das erste Projekt für jegliche Art neuer Energie.
3. Mechanismen und Strategien für Eigenproduktion und Eigenverbrauch von Dachsolarpanelprojekten: Ähnlich zu Verordnung 135, beinhaltet Verordnung 58 zwei verschiedene Modelle für Dachsolarpanelprojekte. Hierbei können die Entwickler entscheiden, ob sie die Solarpaneele an das Stromnetz anschließen wollen oder nicht. In dem Fall, dass sie an das Stromnetz angeschlossen werden, können sie bis zu 20% der erzeugten Elektrizität der Solarpanels an Vietnam Elektrizität (EVN) im Gegenzug für den erzeugten Überschussstrom verkaufen.
4. Entwicklung von Offshore-Windkraftprojekten:
– Anwendbare Projekte: Offshore-Windkraftprojekte, welche eine Genehmigung durch die zuständige Behöre haben und vor dem 1. Januar 2031.
– Für ausländische Investoren geltende Bedingungen:
o Erfahrung: Ausländische Investoren müssen mindestens ein Offshore-Windkraftprojekt investiert und betrieben haben welches in Vietnam oder sonst wo Strom produziert;
o Finanzielle Leistungsfähigkeit: Ausländische Investoren müssen durch ihr Eigenkapital mindestens 15% des insgesamt veranschlagten Investitionskapitals des Projekts erbringen. Ferner muss das Eigenkapital zu den Kapitalbeiträgen des Projektes mindestens 20% beitragen;
o Beteiligung von inländischen Unternehmen: Inländische Unternehmen müssen mindestens 5% des Gesellschaftskapitals oder der gesamten stimmberechtigten Aktien halten der wirtschaftlichen Organisation, die das Offshore-Windkraftprojekt umsetzen. Bei den inländischen Unternehmen kann es sich auch um staatlich Unternehmen handeln oder Unternehmen, an denen ein staatliches Unternehmen mit 100% Gesellschaftskapital beteiligt ist und wiederum 50% des Gesellschaftskapital hält oder die gesamten stimmberechtigten Aktien. Für Offshore-Windkraftprojekte die Elektrizität exportieren, ohne das nationale Stromnetz zu nutzen, müssen die inländischen Unternehmen mehr als 50% des Eigenkapitals halten;
o Zustimmung der Behörden: Ausländische Investoren müssen eine schriftliche Genehmigung des Verteidigungsministeriums, des Ministeriums für öffentliche Sicherheit, und des Ministeriums für Auswärtige Beziehungen haben; und
o Verpflichtung zur Nutzung von nationalen Ressourcen: sie müssen sich verpflichten inländische Arbeitskräfte, Güter und Leistungen von inländischen Anbietern zu nutzen. Es muss sichergestellt sein, dass sie einen fairen Wettbewerb führen im Bezug zu Preis, Qualität, Fortschritt und Verfügbarkeit.
4- Verordnung 61
Verordnung 61 ersetzt Verordnung Nr.137/2013/ND-CP, welche von der Regierung am 21. Oktober 2013 erlassen wurde und eine Leitlinie für das Elektrizitätsgesetz von 2004 und die Verordnung Nr.08/2018/ND-CP vom 15. Januar 2028 vorgab, sowie die Verordnung von Nr.17/2020/ND-CP vom 05. Februar 2020 (Verordnung 137) änderte und ergänzte. Zusammenfassend übernimmt Verordnung 61 die relevanten Bestimmungen der Verordnungen 137 im Bezug zur Strombetreiberlizenz und den diesbezüglichen Verfahren. Außerdem enthält Verordnung 61 Regelungen zur Förderung erneuerbarer Energiequellen zur Angleichung an das Elektrizitätsgesetz. Demzufolge sind nach Verordnung 61 folgende Projekte von der Pflicht zur Einholung einer Strombetreiberlizenz befreit:
o Stromprojekte für den Eigenverbrauch, kein Verkauf von Elektrizität an andere Organisationen und Einzelpersonen:
a) Keine Kapazitätsbegrenzung für Projekte, die nicht an das nationale Stromnetz angeschlossen sind;
b) Installierte Kapazität unter 30 MW für Projekte die an das nationale Stromnetz angeschlossen sind.
– Projekte mit einer installierten Kapazität von unter 01 MW für Stromprojekte welche Elektrizität an Organisationen oder Einzelpersonen verkaufen sind befreit von der Elektrizitätsbetreiberlizenz im Strombetreibersektor.
– Elektrizitätsunternehmen in ländlichen, Berg-, Grenz- und Inselregionen welche Elektrizität bis zu einer Kapazität von 100 kVA von dem Verteilernetz erwerben, um dieses direkt an Elektrizitätsnutzer in ländlichen, Berg-, Grenz- und Inselregionen zu verkaufen sind befreit von der Elektrizitätsbetreiberlizenz.

Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist der Generaldirektor von Duane Morris Vietnam LLC.

VIETNAM – POWER – ENERGY SECURITY – DECREE 100 – PROVIDING FOREIGN INVESTORS BEST PRACTICE CONDITIONS FOR INVESTMENT

On 8 May 2025, the Government issued Decree No. 100/2025/ND-CP on amending and supplementing a number of provisions of Decree No. 56/2025/ND-CP dated 3 March 2025 (“Decree 56”) on a number of articles of the Law on Electricity on electricity development planning, electricity network development plans, electricity project investment and construction, and bidding for investor selection in electricity business projects (“Decree 100”). Decree 100 introduces a legal framework for domestic gas and LNG power projects to ensure energy security and to improve operational efficiency of Vietnam’s energy sector. As the key change, Decree 100 amends Article 15 of Decree 56 to provide a mechanism to ensure the consumption of domestically exploited natural gas sources; principles of transferring fuel prices to electricity prices and long-term minimum contract electricity output for gas-fired power projects:

• Mechanism regarding domestic gas power projects: Maximum dispatch priority is determined by grid demand and gas availability. This applies to projects that begin operations before 1 January 2036. This priority remains in in effect until domestic gas is no longer used by the plant. In case the domestic supply is inadequate, flexible fuel options are available.

• Mechanism regarding LNG power projects: A minimum contract volume of 65% of the average yearly production is guaranteed. This guarantee is valid for debt repayment for a maximum of ten years after the date of operation. After the initial period, contract volumes are negotiable. This mechanism applies to projects whose operations begin prior to 1 January 2031.

Following the methodology of PDP8, Decree 100 was issued to facilitate the energy transition, balance the needs for energy security, and provide investors with realistic timetables for planning and execution.

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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

The Hanoi Times interviewing Dr. Oliver Massmann on the Law on Capital and Foreign Direct Investment Outlook

1. What are the most significant legal or regulatory innovations introduced in the 2024 amended Law on the Capital that specifically enhance Hanoi’s competitiveness in attracting high-quality FDI?

The 2024 Law on the Capital (“2024 Law”) introduced certain legal innovations to attract high-quality FDI as follows:
o Pilot State-backed Venture Capital Fund: Hanoi is provided the authority to pilot a venture capital fund to utilize State budget resources to support high-tech enterprises, science and technology firms, and startups.
o Autonomy: The 2024 Law granted Hanoi greater fiscal autonomy, including increased borrowing limits and revenue retention, enabling the city to fund major infrastructure projects relevant to FDI.
o Regulatory Flexibility: Hanoi now has the authority to enact regulations and policies tailored to its unique economic and social needs, allowing for more responsive and investor-friendly environments.
o Simplified licensing procedures: The 2024 Law introduces the digitalization of licensing procedures and simplifications of licensing procedures in Hanoi.

2. The amended Law introduces the ability for Hanoi to establish a state-backed venture capital fund targeting high-tech and innovative startups. From a legal and investor perspective, how feasible and attractive is this instrument for foreign investors?

I do believe that the State-backed venture capital fund is very attractive for foreign investors since the fund provides investors with access to early-stage capital for high-tech and innovative startups, potentially leading to high returns. Further, investors may benefit from the backing of the state, which can offer stability and credibility to ventures. Overall, the fund is a promising instrument for investors seeking to engage in Hanoi’s high-tech sector.

3. What tax incentives or land-use concessions under the amended Law could serve as game-changers for strategic foreign investors, particularly those in high-tech, clean energy, or infrastructure sectors?

The newly introduced Corporate Income Tax (CIT) incentives with a preferential rate of 7% for 33 years for large-scale high-tech investments can act as a game-changer for high-tech investors. Also, according to the 2024 Law, investors in high-tech parks may receive exemptions from land lease fees and reimbursement for land clearance expenses. These incentives can attract foreign investors in high-tech sectors to make their moves in Hanoi.

4. To what extent do the procedural simplifications (such as streamlined customs or licensing mechanisms) under the new Law address long-standing bureaucratic hurdles that have deterred foreign investment in Hanoi?

I have practiced law in Vietnam for more than 25 years, and the licensing procedure indeed is one of the main hurdles for foreign investors investing in Hanoi. The 2024 Law introduced more straightforward procedures for investment registration and licensing with clear guidelines to improve predictability and reduce the risk of arbitrary decision-making. Foreign investors can now refer to the mentioned provisions under the 2024 Law to deal with licensing authorities to support their cases. In my opinion, the procedural simplifications can address the long-standing concerns and enhance Hanoi’s appeal as an investment destination.

5. The Law grants Hanoi greater fiscal autonomy, including increased borrowing limits and revenue retention. From your experience advising multinationals, how might this expanded fiscal space influence investor confidence and the city’s capacity to fund major infrastructure projects relevant to FDI?

Greater fiscal capacity allows for more robust investment in infrastructure, giving Hanoi more capacity to fund major infrastructure projects. Also, the enhanced creditworthiness under the 2024 Law provides Hanoi with the ability to manage and retain revenue, improving Hanoi’s credit profile, potentially leading to better financing terms for investors. A more autonomous fiscal environment can also lead to more consistent and reliable policy implementation, reducing investment risks. These factors collectively enhance Hanoi’s attractiveness as a destination for foreign investment.

6. How does the amended Law align with Vietnam’s broader national strategy to attract FDI amid shifting global supply chains and emerging regional competition in Southeast Asia?

The law supports the development of high-tech parks and innovation hubs, in line with Vietnam’s goal to become a leader in technology and innovation in Southeast Asia. Moreover, the increased fiscal autonomy enables Hanoi to invest in infrastructure and human capital, addressing key factors that influence foreign investors’ decisions. The introduction of targeted incentives, such as tax breaks and land-use concessions, positions Hanoi as a competitive destination for strategic foreign investors. These measures demonstrate Hanoi’s commitment to supporting Vietnam’s national objectives and enhancing its position in the global investment landscape.

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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

VIETNAM – NATIONAL ELECTRICITY DEVELOPMENT PLAN UNTIL 2030 – What you must know:

On 15 April 2025, the Prime Minister issued Decision No. 768/QD-TTg approving the adjustment of the national electricity development plan for the 2021 – 2030 period with a vision to 2050 (Decision 768). Decision 768 outlines the newly adopted demand forecast and provides more support towards the net-zero goal of Vietnam by 2050. Please find below the key takeaways of Decision 768:
1. Development of industrial ecosystems
By 2030, two interregional industrial centers for renewable energy will have been established in the northern, south-central, and southern areas.
By 2035, 5,000–10,000 MW of electricity is expected to be exported to Malaysia, Singapore, and other nearby markets.
2. Power structure by 2030:
The total capacity of power plants serving domestic demand (exclusive of exports) will be 183,291 – 236,363 MW, comprising:
– Onshore and nearshore wind: 26,066 – 38,029 MW (14.2% – 16.1%).
– Offshore wind: 6,000 – 17,032 MW to be commissioned during 2030–2035, with the possibility of earlier deployment if conditions are favorable and costs are appropriate.
– Solar: 46,459 – 73,416 MW (25.3% – 31.1%)
– Biomass: 1,523 – 2,699 MW
– Hydropower: 33,294 – 34,667 MW (14.7% – 18.2%)
– Nuclear: 4,000 – 6,400 MW to be commissioned during 2030–2035
– Storage sources: 10,000 – 16,300 MW (5.5% – 6.9%)
– Coal-fired: 31,055 MW (13.1% – 16.9%)
– Domestic gas-fired: 10,861 – 14,930 MW (5.9% – 6.3%)
– LNG-fired: 22,524 MW (9.5% – 12.3%)
– Flexible power sources: 2,000 – 3,000 MW (1.1% – 1.3%)
– Pumped-storage hydropower: 2,400 – 6,000 MW
– Imports: 9,360 – 12,100 MW from Laos and China (4.0% – 5.1%)
3. Orientation towards 2050:
The total capacity of power plants serving domestic demand (exclusive of exports) will be 774,503 – 838,681 MW, comprising:
– Onshore and nearshore wind: 84,696 – 91,400 MW (10.9%)
– Offshore wind: 113,503 – 139,097 MW (14.7% – 16.6%)
– Sola: 293,088 – 395,646 MW (35.3% – 37.8%)
– Biomass: 4,829 – 6,960 MW
– Hydropower: 40,624 MW (4.8% – 5.2%)
– Nuclear: 10,500 – 14,000 MW (1.4% – 1.7%)
– Storage sources: 95,983 – 96,120 MW (11.5% – 12.4%)
– Coal-fired: 0 MW (0%), coal will no longer be used for power generation
– Domestic gas-fired and conversion to LNG: 7,900 MW (0.9% – 1.0%)
– Domestic gas-fired converted to run entirely on hydrogen: 7,030 MW (0.8% – 0.9%)
– LNG-fired with CCS: 1,887 – 2,269 MW (0.2% – 0.3%)
– LNG-fired co-fired with hydrogen: 18,200 – 26,123 MW (2.3% – 3.1%)
– LNG-fired converted to run entirely on hydrogen: 8,576 – 11,325 MW (1.1% – 1.4%)
– Flexible power sources: 21,333 – 38,641 MW (2.8% – 4.6%)
– Pumped-storage hydropower: 20,691 – 21,327 MW
– Imports: 14,688 MW from Laos and China (1.8% – 1.9%)
– Participation in DPPA and new energy production is expected to take up about 30–60% of total electricity output from renewable energy, or higher, depending on the status of market development.
Electricity exports will be maintained at around 10,000 MW, possibly higher.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Lawyer in Vietnam Dr. Oliver Massmann – Franchising – A strategy as a key to success in Vietnam for franchisors

In a world of constant economic uncertainty, foreign investors seem to view Vietnam as a promising land. This is particularly true in the franchise sector. Vietnam is enjoying an unprecedented level of attention from the international franchise industry, especially from the opening of its retail market to foreign investors since January 1, 2008, in connection with the state’s WTO commitments. Another reason is the country’s rapid economic growth, which according to the Viet Nam Food and Drink Report continues to eclipse the growth of most Southeast Asian economies. Vietnam is also valued by potential international and local franchisors against the background of a stable political situation and its rapidly growing consumption-oriented young population, of which the average age is 30 years old. The emerging urban middle class has a rising disposable income and an insatiable hunger for quality products and Western brands.
The delayed development of franchising in Vietnam is another reason. Franchising, for example, is a business model based essentially on intellectual property, with Vietnam historically having a fairly underdeveloped judiciary and providing inadequate intellectual property protection to protect the rights of franchisors and franchisees. While the no-longer in-effect Intellectual Property Law 2005 (revised 2009) and Decree No. 35/2006/ND-CP Governing Franchises have expanded the legal framework for safeguarding intellectual property and franchise rights, the protection and enforcement of intellectual rights remains property is critical and challenging for franchisors. The recently effective Intellectual Proper Law 2022 has somewhat dealt with challenging and outstanding issues in franchising market. However, in order to capitalize on both their own intellectual property values and the potential Vietnamese market, franchisors need to be sure of a sound strategy that aims to protect and enforce equally adequately. The expanding domestic franchise market, which includes leading local brands such as Trung Nguyen Coffee, Highlands Coffee, Pho 24, as well as international brands such as KFC, Lotteria, Starbucks, McDonald’s suggests that with proper due diligence, professional advice and persistence, the challenges are not insurmountable.
A strategy for a franchisor should include:
1 Registration of Intellectual Property and Related Rights. The rights must be entered early in view of the first-to-file principle.
2 Trademarks. All franchised trademarks must be registered with the State Intellectual Property Office. Registering a trademark provides the basis for taking action against franchise counterfeiters.
3 Copyright. Copyrights arise originally from the creation of a work. While it is not necessary to register copyright in a work, filing with the Copyright Office makes it easier for the franchiser to establish proof of ownership and allows for any direct enforcement of rights.
4 Company name. A company name is a name under which a company or individual conducts business. Although registration of the name is not required as rights can be directly established through the lawful use of a company name, registration of the name as a trademark is recommended when deemed appropriate.
5 Domain names. A domain name identifies an Internet address. Franchisers should register their domain names with Vietnam’s state Internet Center to avoid unauthorized use on the Internet.
6 Business Secrets/ Know-How
A trade secret (such as the recipe for Coca Cola) is any business or technical knowledge that is not available to the public. Trade secrets are protected in Vietnam as long as they are of economic value, are not common knowledge or are easily traceable and the owner tries to keep them secret. Given that the franchiser bears the burden of proving that the trade secret has been kept under wraps, they are regularly difficult to protect. Confidentiality agreements and the design of access restrictions for employees serve equally as proof of confidentiality and authorization.
7 Due diligence. An analysis of a potential franchisee by the franchisor before an agreement is entered into pays off. Proper audits are mandatory to ensure strict compliance with the franchise agreement.
8 Franchise agreements
Before signing the franchise contract, the franchisor should insist that the contract negotiations be flanked by a non-disclosure agreement. The franchise agreement must be made in writing and in the Vietnamese language. This language restriction, however, does not apply to a franchise agreement under which a Vietnamese franchisor grants a franchise in a foreign country. The franchise agreement should cover all aspects of the obligations and provide watertight protection of intellectual property rights, including the limits of the rights of use that are transferred to the franchisee. It would also be advisable to include a clause providing for mediation or arbitration in the event of a disagreement rather than recourse to local general jurisdiction.
9 Registration of Franchising Business
A franchise agreement need not be registered to be effective. However, franchises from overseas, from an export processing zone, a non-tariff area, or a separate customs area need to be registered with the Ministry of Industry and Trade (“MOIT”) before becoming active. An offshore franchisor has only to register its franchising business once.
The franchising agreement itself need not be included in the registration dossier, except if necessary to register the licensing of intellectual property rights that are associated with a franchised business and fall within the regulations on intellectual property.
The franchisor must provide the prospective franchisee with the Franchise Description Document in the prescribed form by the MOIT and a copy of the form of the franchise agreement at least 15 working days prior to the execution of a franchise agreement, unless the parties agree otherwise. The Franchise Description Document is a part of the registration dossier for registering franchising business with the MOIT.
10 Workers
In any case, a reasonable personnel policy should ensure that the use of intellectual property by employees after they have left the company is excluded. Vietnamese employment contracts provided by franchisors or franchisees should contain restrictive covenants regarding intellectual property as well as trade secrets and confidential information. The importance of the brand should be conveyed through the training of the staff.
Against the background of developing commercial legal protection and the growth of the local and international franchise market of 20-30% annually expected by industry experts, the time seems ideal for companies and entrepreneurs to invest in this dynamic but comparatively underdeveloped market.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

VIETNAM: LEGAL ALERT – ELECTRICITY PRICE FRAMEWORK FOR SOLAR POWER PLANTS APPROVED

On 10 April 2025, the Ministry of Industry and Trade (“MOIT”) issued Decision 988/QĐ-BCT, which sets forth the electricity price framework applicable to solar power plants for the year 2025. This framework, issued by the MOIT, ensures transparency and consistency in pricing, serving as the foundation for agreements between power generation units and Electricity of Vietnam (“EVN”).

KEY ELECTRICITY PRICE:

The electricity price framework for 2025, applicable specifically to solar power plants, outlines the maximum allowable tariffs across regions and plant types. Below are the detailed provisions:

1. Ground-Mounted Solar Power Plants (Without Battery Storage Systems):
• Northern Region: Maximum price of 1,382.7 VND/kWh (excluding VAT).
• Central Region: Maximum price of 1,107.1 VND/kWh (excluding VAT).
• Southern Region: Maximum price of 1,012.0 VND/kWh (excluding VAT).
2. Floating Solar Power Plants (Without Battery Storage Systems):
• Northern Region: Maximum price of 1,685.8 VND/kWh (excluding VAT).
• Central Region: Maximum price of 1,336.1 VND/kWh (excluding VAT).
• Southern Region: Maximum price of 1,228.2 VND/kWh (excluding VAT).
3. Ground-Mounted Solar Power Plants (With Battery Storage Systems):
• Northern Region: Maximum price of 1,571.98 VND/kWh (excluding VAT).
• Central Region: Maximum price of 1,257.05 VND/kWh (excluding VAT).
• Southern Region: Maximum price of 1,149.86 VND/kWh (excluding VAT).
4. Floating Solar Power Plants (With Battery Storage Systems):
• Northern Region: Maximum price of 1,876.57 VND/kWh (excluding VAT).
• Central Region: Maximum price of 1,487.18 VND/kWh (excluding VAT).
• Southern Region: Maximum price of 1,367.13 VND/kWh (excluding VAT).
TECHNICAL PARAMETERS FOR BATTERY STORAGE SYSTEMS:

To calculate maximum prices for solar power plants with battery storage systems, the following requirements apply:
• Capacity: At least 10% of the installed capacity of the solar power plant.
• Storage/Discharge Duration: 2 hours.
• Charging Power Output Ratio: 5% of the plant’s total output.
This legal update signals a significant step forward in aligning Vietnam’s renewable energy sector with standardized pricing mechanisms and broader energy policy goals. Power generation units and stakeholders in the energy industry should review these provisions and ensure compliance in their operations.

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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Anwalt in Vietnam Dr. Oliver Massmann im Interview mit Frau Jennifer Spatz Frankfurter Allgemeine Zeitung (FAZ) – Hanois Bambus-Diplomatie ist in Washington gescheitert

Vietnamesen haben bisher geglaubt, einen Weg durch den Zoll-Dschungel zu finden. So war zuletzt der Stahlexport in die USA gestiegen. Doch nun plant der US-Präsident 46 Prozent an Einfuhrabgaben, mehr als für fast jedes andere Land.
Vietnam treffen die neuen reziproken Zölle von US-Präsident Donald Trump in Höhe von 46 Prozent hart. Ein Drittel des vietnamesischen Bruttoinlandseinkommens hängt am US-Export. Das Land hat mittlerweile das drittgrößte Außenhandelsdefizit gegenüber den USA, exportiert also deutlich mehr als es importiert – was den amerikanischen Präsidenten Donald Trump regelmäßig erzürnt hat. Die Politik hat sich dementsprechend schon vor dem Liberation Day darüber besorgt gezeigt, dass sich viele US-Investoren auf einmal aus dem Markt zurückziehen könnten.
„Daher haben sie versucht, diplomatisch vorzusorgen und wohlwollende Botschaften zu senden“, erklärt Oliver Massmann. Der Partner der US-Kanzlei Duane Morris lebt und arbeitet seit mehr als 25 Jahren in Vietnam. „Das Land verfolgt seit Jahrzehnten eine ‘Bamboo-Diplomacy’, wie die Leute sie hier nennen. Sich mit möglichst vielen anderen Staaten anfreunden, flexibel und widerstandsfähig sein und vor allem: rasant wachsen.“
Um die USA zu beschwichtigen, ist ihnen der südostasiatische Staat in mehreren Bereichen entgegengekommen. Mitte Februar hatte der Minister für Industrie und Handel, Nguyen Hong Dien, angekündigt, dass Vietnam bereit sei, mehr Agrargüter aus den USA zu importieren. Um das Handelsdefizit zu schmälern, sollen auch LNG-Exporte nach Vietnam diskutiert worden sein. Und um die Führungsspitze zu besänftigen, hat Vietnams Premierminister Pham Minh Chinh außerdem den Weg für einen landesweiten Einsatz des Satelliten-Internets Starlink von Trump Intimus Elon Musk geebnet. Starlink will der Multimilliardär Mukesh Ambani zeitgleich auch nach Indien holen.
Einer der größten Stahllieferanten der USA
Eine Sonderbehandlung habe Vietnam auch vor den neuen Zöllen dadurch allerdings nicht bekommen: „Die USA hatten beispielsweise 2018 viele Länder von der damaligen Erhöhung der Stahl- und Aluminiumzölle ausgenommen – nicht aber Vietnam“, sagt Massmann. Importeure zahlen seitdem auf vietnamesischen Stahl 25 Prozent Zoll. Dem Handel hat das bisher keinen Abbruch getan, der Stahlexport ist im Vergleich zu 2018 trotz der Handelshemmnisse sogar deutlich gestiegen. Vietnam ist gemessen am Warenwert heute der sechstgrößte Stahllieferant der USA; bezogen auf die Menge liegt Vietnam inzwischen sogar vor Deutschland auf Platz fünf.
Trotz mangelnder Sonderbehandlung gehörte das Land außerdem zu den Profiteuren der US-Zollpolitik in Trumps erster Amtszeit. Viele Unternehmen waren aus China nach Vietnam geflüchtet oder hatten Vietnam als Transitstaat für Exporte genutzt, um den US-Strafzöllen gegen China zu entgehen. Die reziproken Zölle heben diesen Vorteil nun auf – und strafen dadurch ein weiteres Mal China ab. Ob sich die Lieferketten aus Vietnam zukünftig in die Nachbarländer verlagern könnte, bleibt abzuwarten. Auch Malaysia wird mit Abgaben von 24 Prozent belegt, Indonesien mit 32 Prozent und Kambodscha sogar mit 49 Prozent. In Washington ist Vietnam also mit seiner Bambus-Diplomatie vorerst gescheitert – und es ist fraglich, ob die florierenden Handelsbeziehungen zwischen den beiden Staaten die hohen reziproken Zölle unbeschadet überleben werden.
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Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist der Generaldirektor von Duane Morris Vietnam LLC.

VTV INTERVIEWING DR OLIVER MASSMANN ON DATA AND DIGITAL ECONOMY

1. Recently, General Secretary To Lam emphasized that Vietnam is entering the dawn of the digital age and data plays an important role in the digital economy. What is your opinion on the development direction of Vietnam’s data economy as well as the article by General Secretary To Lam?
I truly believe that the development direction set out by General Secretary To Lam is both timely and visionary. His article underscores the critical role of data as a new economic resource, which, in my opinion, is comparable to oil in the industrial era.
Vietnam’s recognition of data as a strategic asset reflects a forward-looking approach, aligning with global digital transformation trends. The direction outlined in his article sets the foundation for a modern data economy that values both innovation and sovereignty.
I also want to note that Vietnam is making remarkable progress as it steps into the digital age. Recently, important documents were issued by competent authorities on cybersecurity and data, namely the Law on Data, the Decree on personal data protection, the Decision approving the National Data Strategy until 2030, and the Resolution on breakthroughs in science, technology, innovation, and national digital transformation.
2. What solutions does Vietnam need to implement for the data economy to truly develop (perfecting the legal system, facilitating the development of database infrastructure, public-private partnership, capital investment, human resource training, etc.)?
I am a lawyer, so I will first focus on the legal system of Vietnam. I think Vietnam must refine its laws to clarify some key elements like data ownership, cross-border data transfer, data storage, consent mechanisms, and data sharing across sectors. To attract more investment, legal certainty is crucial for both domestic and foreign investors. It is also worth noting that Vietnam’s international integration is unmatched and should be utilized to develop the legal framework on data.
Second, I believe that investment in localized cloud infrastructure and data centers should be prioritized by the government to further develop national database systems. Incentives and tax benefits could promote investment in sectors as mentioned. Also, the data economy demands a workforce with strong skills in data science, cybersecurity, AI, and digital ethics. Education and training programs should be structured and provided to meet this demand, in partnership with universities and international tech companies.
3. In your opinion, how can the data economy contribute to Vietnam’s economic growth target in the near future and beyond?
The data economy can be a transformative engine for Vietnam’s growth in several ways. When it comes to technologies, data-driven technologies such as AI, IoT, and automation can boost productivity across manufacturing, agriculture, logistics, and services. Further, the focus on the development of data can support the rise of digital platforms, fintech, e-commerce, and smart city solutions, generating high-income jobs and exportable services.
Also, with the ongoing reshuffling of the government’s human resources, I think that data initiatives can enhance public service, optimize policy planning, and accelerate the process of reshuffling the government.
Last but not least, a transparent data environment will attract tech giants to invest in Vietnam. If effectively developed, the data economy could contribute significantly to Vietnam’s GDP growth and its ambition to become an upper-middle-income country by 2030 and a high-income country by 2045. This growth is not only sustainable but also contributes to building a knowledge-based economy. With a dynamic spirit and the right strategies, Vietnam has the potential to become a successful model of digital economic development on the global stage, shaping a bright future.
4. What is your opinion on Vietnam’s economic activities in the first 3 months of the year?
Vietnam’s economy in Q1 has shown resilience despite global uncertainties like trade wars, supply chain disruption, and so on. According to public sources, the country’s GDP is expected to grow by nearly 8% in the first quarter, creating a solid foundation for economic growth throughout the year.
Key indicators suggest positive momentum in exports, foreign investment, and industrial production. Notably, the recovery in tourism and consumer demand signals strong domestic market potential. Looking at the first three months, I believe that 2025 will be another successful year for Vietnam.
5. What is your opinion on Vietnam’s simplification of visa procedures/elimination of visas to create favorable conditions and attract more foreign businesses/investors to Vietnam?
Visa simplification is a pragmatic – thực dụng – and strategic move as it can significantly boost investor confidence and create a more business-friendly environment.
By simplifying entry procedures and expanding visa exemptions, Vietnam enhances its competitiveness as a destination for investment, tourism, and talent. It sends a clear message that Vietnam is ready to open up and compete on the international stage. However, it is essential to balance this openness with strong security measures and regulatory oversight to ensure that the benefits of increased international engagement do not come at the cost of national security or effective border control. If managed well, these reforms could drive substantial long-term economic growth.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

VIETNAM – RESTRUCTURING GOVERNMENT- Asia Business Law Journal interviewing Dr Oliver Massmann

1. What have your clients been asking you about the restructuring, and what have you been advising them?

Answer: Many clients doing business in different sectors have approached us about this restructuring. Personally, I believe that this restructuring heavily impacts all sectors in Vietnam on different levels. Our advice provided to impacted clients varies because each client has their own problems. For example, with clients having problems with the court’s procedures due to the restructuring, we advised them that they should follow up closely with the restructuring and seek support from other competent authorities to accelerate the process if the process is delayed.

2. What are the biggest legal challenges businesses might face during this transition?

Answer: On 1 March 2025, the restructuring impacting Ministries and agencies under the Government was finalized and, as a result, there are now 14 Ministries instead of 18 Ministries like before with the merger of some then-important Ministries, including the Ministry of Planning and Investment and Ministry of Labor, Invalids and Social Affairs. I think the implementation of contracts with provisions on certain competent authorities impacted by this restructuring will be the biggest challenge for businesses, especially for provisions on merging authorities (i.e., Ministry/Department of Planning and Investment, district-level courts, Ministry/Department of Labor, Invalids and Social Affairs, Ministry/Department of Information and Communications) since these authorities no longer exist. Administrative procedures handled by impacted competent authorities could also pose a threat to the day-to-day activities of businesses in Vietnam since they can be delayed or changed in terms of location or timeline due to the restructuring. Also, with regulations of the law whereby businesses’ obligations are tied directly with certain merging authorities, entities will have to face difficulties in fulfilling their obligations during this period.

3. In your experience, which industries will be most impacted by the shifting regulatory responsibilities? Why?

Answer: I think industries will face different difficulties in this transitional period, and it is hard to assess the most impacted industry. Taking the merger of the Ministry of Finance and the Ministry of Planning and Investment for example, all enterprises established and operating under the Enterprise Registration Certificate issued by the local Department of Planning and Investment are now heavily impacted because their managing authority no longer exists without any further guiding documents. For this reason, all of their contracts and licenses will face difficulties with their validity and related procedures.

4. What are the potential consequences of eliminating district-level courts on commercial dispute resolution? Will businesses need to prepare for longer case durations at higher courts?

Answer: Longer case durations at higher courts is indeed one of the major potential consequences. Also, according to the new Law on Organization of People’s Court, cases already being handled by district-level courts can also potentially be transferred to other courts (i.e., higher courts or specialized courts). However, I believe that guiding documents will soon be issued by the Supreme Court to address the issue related to the elimination of district-level courts. Note that according to Conclusion 127-KL/TW dated 28 February of the Central Committee, the Central Committee will receive opinions from relevant stakeholders until 7 April 2025 on this matter. For the time being, all we can do is follow the new developments of this matter closely.
5. Current business licenses remain valid until they expire or certain changes occur. However, businesses may need to update registrations and obtain new permits under the restructured system. What should companies do now to stay compliant, and what considerations should they discuss with their counsel to avoid risks?

Answer: To my understanding, no compliance-related penalty should be given to businesses for violations resulting from this restructuring. I would say that businesses need to work with their counsels to proactively approach both their old and their new managing authorities to work out the best solutions going forward and to follow up closely with any changes of laws directly relating to their positions.

6. What advice do you have for companies currently operating in Vietnam and those considering establishing in the country?

Answer: For companies in Vietnam, my piece of advice is to consult your counsel closely and keep doing what you are doing. And, if you intend to invest in Vietnam, please do it as soon as possible. With this restructuring going on, I still believe that Vietnam is a dreamland for opportunity with its unmatched international integration and support from the authorities. While this restructuring can pose some compliance-related threats to businesses in Vietnam, businesses will enjoy a never-before friendly environment for investment after the restructuring since the ultimate achievement of this restructuring is to create effective and efficient operations of competent authorities.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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