Vietnam Investment Review interviewing lawyer in Vietnam Dr. Oliver Massmann on trends in Mergers and Acquisitions in Vietnam

1. How do you judge the M&A trends in Vietnam at the current time?

The M&A market in Vietnam since the beginning of this year is very active. Foreign investors tend to invest in public listed companies or companies with good brand in the market. Sectors that attract the most interest of foreign investors are finance, real estate, retail, consumer goods, etc.
The reason is that the investors are very optimistic about the development of Vietnam’s market. In addition, the Government has also made several successful attempts to improve the investment environment, including the consideration for the amendment of the Law on Securities, which is believed to bring better financial sources to the country.

2. What should foreign investors benefit from the trends and what should they be aware of?

The Government’s privatization of many state-owned enterprises this year together with the fact that many enterprises with large capitalization and of great interest to foreign investors in these sectors are now preparing for the public listing give foreign investors more investment choices. However, they should conduct a full due diligence on the target to make sure that their investment is secured and in compliance with Vietnam laws.

3. What are still the shortcomings of the M&A deals in Vietnam?

Transparency is a barrier to foreign investors. The local target companies do not adopt international accounting standards or the equivalent, or are not willing to disclose sensitive information to their potential partners. In certain cases, for example, in real estate development projects, under table expenses are of great concern to foreign investors, especially those from the US, EU, UK, Japan and Korea.

4. Many people keep worry of the loss for not only local brands but also the local culture with more foreign domination after the M&A. What are your opinions about the matter?

It should not be of great concern. Foreign investors when buying in local companies/ brands usually bring technology, high-quality management standards and capital, which local companies lack. This helps the local companies/ brands better compete in the market, especially in case of Vietnam’s deep integration into the world and regional economy. Moreover, culture is something that foreign investors have to adapt to be able to survive in Vietnam. The case of Grab and Uber is an example.

5. What is the forecast of the trend in the future? And how they will drive the market?

Leading enterprises with good financial capacity and high growth in the sectors will attract both foreign and domestic investment. It is noted that in 2018, there will be a number of state-owned enterprises privatized under the Prime Minister’s decision. These enterprises include Habeco, Vinamilk, etc. which is believed to be successfully privatized following the recent success of Sabeco, another state-owned enterprise in the beverage sector under the Ministry of Industry and Trade’s management.
In terms of capital sources, we can expect a cash flow coming from major Asian economies such as Japan, Korea, Singapore, Hong Kong and especially mainland China which increases their strong presence in the market.
We strongly believe that the equitisation of SOEs of a larger scale and with a strong determination from the top would play a key role in driving the market.

If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any other lawyer in our office listing. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

新規PPP関連法が立てうる、ベトナムのインフラ開発への道筋

著者:Giles T. Cooper

翻訳:志澤政彦(Masahiko Shizawa)

原文:https://blogs.duanemorris.com/vietnam/2018/06/19/will-a-new-ppp-law-pave-the-way-for-vietnams-infrastructure/

インフラというボトルネックに、ベトナムの急成長が直面している。政府には、今まさに必要な道路、鉄道、トンネルに資金を投下できるほどの予算がない。そこで専門家が目を向け始めているのは、民間セクターである。

この制約がある以上、非国家セクターの資金を輸送インフラ開発のため継続的に活用することが今すぐ必要となる。アジア開発銀行(ADB)によれば、2015年から2020年までの間のインフラへの投資のため、ベトナムは最大170億米ドルを必要とするだろうとのことである。

近年、ベトナム政府は官民連携(PPP)プログラムの下で投資プロジェクトに透明性を与えるよう進めてきた。PPPは、政府機関と民間投資家が協同してなす投資の一形態であり、インフラの建設、修復、運営、並びに管理、及び公共サービスの提供のために行われる。政府はPPPにより、開発目標達成のため民間セクターの効率性と専門性を活用することができる。

そうはいっても、そうしたプロジェクトの持続的な実施を阻む欠点や限界があり、現状で名乗りを上げるのに投資家は慎重を期している。

投資を勧奨する政令が提出されてきてはいる。しかし、その条件は魅力的とはいえず、そのようなプロジェクトに必要な柔軟性がないとの批判もある。PPP投資活動の主な規制は以前、PPP投資に関する政令15/2015/ND-CP号及び入札法の実施指針である政令30/2015/ND-CP号であった。

この国は、1990年から2016年までに総額162憶米ドルにも及ぶ84件のPPPプロジェクトを実施してきている。うち79%はエネルギー関連のものであった。 一方、2011年のPPPパイロットプログラムが制定されて以来、この法的枠組みを利用した新規PPPプロジェクトは一切登録されていない。

政府は最近、政令15/2015を改正し、ベトナムにおけるPPPプロジェクトの分野、投資条件、手続を特定した政令63/2018(政令63)を発行した。この新たな政令により、PPPプロジェクトにおける投資家の資本比率が20%にまで引き上げられる。政令63は2018年の6月に施行された。

これで十分といえるか

BOT(Build-Operate-Transfer)方式とBT(Build-Transfer)方式のプロジェクトに対する調査・監査結果によれば、そのほとんどにおいて、投資家選定の際の入札が限定され、低い競争性と透明性の欠如を招いたとのことである。また、プロジェクトの通知は未だにオープンな方法で実施されていない。

同時に、プロジェクト実施の管理は非効率的であり、建設作業の低質化等の様々な問題を引き起こしている。

これらの問題に対応して投資を促進するため、ベトナム国会は政府に、上記のような難点や法的制限を取り払うようなPPP関連法を作るよう求めた。

PPP関連法の成功に必要な3要素

  • 明確なリスク共有メカニズム

当局は未だ、政府がデベロッパーのため一定の最低収益を保証し、それに至らない場合に補填するようなリスク共有メカニズムを、明確に打ち出してきてはいない。この点は、プロジェクトがしばしば重大なリスクを伴うインフラの場合には特に重要である。規制の明確さにより投資家の信頼を得られるのではないだろうか。

現状のモデルでは、ほとんどのリスクを民間セクターに転嫁してしまっている。民間の投資家や事業者の誘致には、透明性のある政策枠組みと公平なリスク分配が鍵である。同様に、明確に定義されたプロジェクトの射程と期待できる金銭的な利益の適切な保証を伴った魅力的な取引のストラクチャーによって、PPPへの参加が奨励されるものと思われる。

  • 為替レート保証

長期的な融資は外貨によってなされるものの、ベトナムのインフラプロジェクトの収益は現地通貨ベトナムドンによる。これだと、プロジェクトの収益性に負の影響をもたらす。新たなPPP関連法を成功に導くには、長期的な建設プロジェクトの中で投資家が同等の交換レートを確保できるよう、政府による兌換保証メカニズムを盛り込む改善が必要となろう。

海外への外貨送金の制限も縮小される必要があろう。

こうした障害や通貨変動のリスクは、投資家の信頼に大きな影響を与える。これらを取り除くことが、この国の継続的前進に必要な種類のプロジェクト誘致に重要であろう。

  • 金銭的インセンティブ

典型的な長期投資であるインフラプロジェクトには、投資家に巨大な建築に必要な20年から30年もの間の関与をさせるため、対価としての追加のインセンティブや収益の保証が必要となろう。

このリスクを相殺するために、政府は開発の波及的効果の一部を投資家に報いることを考えてもよいだろう。インセンティブがあれば、収益が交通の流れや将来の予測不可能な状況に依存するといった、インフラ開発に内在的な不確実性を減らすことができるだろう。

要するに、やる気のある投資家の誘致にベトナムが必要なのは、信頼できる政策及び規制、加えて投資家の信頼を得られるようなPPPに特化した政府部門といった、透明性、公平性、予測可能性を確保できる枠組みである。

ライフサイクルコスト、安全性、レジリエンス(強靭性)、そして環境への影響といったその他の要素も、考慮される必要がある。

ベトナムのインフラ開発への需要は揺るぐまい。しかし、現状の立法状況が実現可能または収益性のあるPPPプロジェクトに繋がるとはいえない。PPP関連法の上述のような点をクリアにすれば、透明性を向上し、この国に目を向けている事業体のリスクを減らし、もって状況の改善が見込めるだろう。

ベトナム投資に関する情報については、GTCooper@duanemorris.comよりGiles弁護士または当事務所の弁護士一覧の弁護士にお問い合わせください。Giles はドウェイン・モリス・ベトナム法律事務所の共同代表であり、ドウェイン・モリス・ホーチミン支所の支所代表です。

VIETNAM – RENEWABLE ENERGIES – Identifying the Amazing Development – what you must know:

In recent years, Vietnam has enjoyed one of the world’s most rapid economic growth rates with an average of more than 6% p.a. Such growth has transformed the country from one of the poorest in the world into a middle-income country. Vietnam has long recognised the important role of renewable energy (including solar power) in achieving energy security, sustainable development and stable growth rate.

The revised Power Development Plan for 2011-2020, vision to 2030 (revised PDP VII), adopted in 2016, is evidence of a growing appreciation of the role alternative sources of energy, targets a 7% share of electricity generated from renewable energy by 2020 and 10% plus by 2030. The revised PDP VII forecasts the electricity demand using an annual average growth rate at 10% from 2011 to 2030. The demand will increase from 86 TWh in 2010 to 265-278 TWh in 2020 and 572-632 TWh in 2030. The estimated installed capacity would be 60 GW in 2020 and 129.5 GW in 2030.

Vietnam has a wide range of primary energy sources such as crude oil, coal, natural gas and hydro power for economic development. However, Vietnam has experienced formidable risks for its economy to be based on fossil fuels. For example, in April 2015, thousands of residents blocked a national highway for more than 30 hours in a protest against pollution by the Vinh Tan 2 coal power plants. It seems most of the hydro resource potential for hydro power plants will be fully exploited soon. Those are just two examples of incidents that could significantly impact on the national power security power of Vietnam. Accordingly, Vietnam must reduce its reliance on less “environmentally friendly” primary fossil fuel, and promoting renewable energy promptly.

Since early 2017, there has been a surge of solar and wind projects approved by the Government after the promulgation of new feed-in-tariffs (“FITs”) for on-grid solar projects and other reforming policies to attract foreign and local investment on this green industry. We highlight below some developments for your reference:

Solar power projects – Amazing development!

Vietnam’s potential capacity for solar power is considered to be similar to Spain or China, but solar power projects capacity, prior to 2017, is extremely low (less than 10 MW). However, hundreds of solar power projects have been approved by the end of 2017. So far, the Ministry of Industry and Trade (“MOIT”) informed that the combined capacity of all approved solar power projects, which will operate prior to 30 June 2019, is over 3 GW.

First time, FIT for on-grid solar power projects

Decision No. 11/2017/QD-TTg dated 11 April 2017 of the Prime Minister on the mechanism for encouragement of the development of solar power projects in Vietnam (“Decision 11”) set for the first time the FIT of US cent 9.35 pWh for on-grid solar power projects.

Solar power purchase agreement (“PPA”) template has been firstly introduced together with Circular 16/2017/TT-BCT of the Ministry of Industry and Trade. It shows that the Government has given its full support for the development of solar power projects in Vietnam.

Direct PPA Pilot for Private Sectors

Generally, solar Direct PPA is an agreement made between the solar power generator and a corporate customer in which solar power is physically delivered and sold to the corporate customer for its operations. Since early 2017, MOIT has assigned ERAV to cooperate work with USAID and consultants to research international experience and feasible models for solar Direct PPA in Vietnam. ERAV expected that its consultants could prepare the final report on solar Direct PPA models within July 2018. MOIT planned the pilot could be implemented as early as the first quarter of 2019. The pilot could realise at least 300-500 MW private solar power plants under the Direct PPA model.

Wind

With more than 3,000km coastline and plenty of islands, Vietnam has a significant potential for wind energy with an average wind speed of more than 6m/s, surpassing that of all other Southeast Asian countries. From technical perspective, Vietnam’s potential for wind power development is estimated to be 27 GW.

However, Vietnam’s wind market is still in its infancy. Up to now, there have only been five wind farms in operation with total capacity of 197 MW, up 38 MW from 2016. Other 50 projects are under different phases of development. The Vietnamese government sets a target for wind development at 800MW by 2020, 2,000 MW by 2025 and 6,000 MW by 2030.

The current wind FIT is 1,614 dong/kwh (excluding VAT, equivalent to 7.8 UScents/kwh). The MOIT has proposed the Government to increase wind FIT for inland wind power plants to 8.77 UScent/ kWh for onshore projects and to 9.97 UScent/kWh for near shore wind projects. Vietnam also expects foreign investments on development of its poor grid infrastructure, creating reliable wind speed studies and wind speed towers to measure, and improving technology and skilled workforce.

Biomass

As the agriculture in Vietnam is widespread, the capacity for sustainable power production from biomass amounts to 150 million tons per annum, 700-780 MW for electricity generation alone can be reached.

The Government’s target is to increase the biomass power to 500 MW (0.6 pct. of electricity production) by 2020 and 2,000 MW (1.1 pct.) by 2030. Until now, there have been six sugar factories out of 40 selling electricity to the national grid with a total installed capacity of 76.5 MW. Thus, there is still much potential in the market and the investors should take advantage of locations close to agricultural vicinities and focus on high season (i.e., shortly after seasonal harvests) to have the most output.

For on-grid biomass power projects, EVN is to buy all of the plant’s biomass energy output at the current price of 1,220 VND/kWh (excluding VAT, about 5.8 UScent).

Market access in WTO, CPTPP and EVFTA

Currently, there is no foreign ownership restriction in energy sector in local laws or Vietnam’s international commitments. The foreign investor may choose among permitted investment forms: 100% foreign invested company, joint venture or public private partnership in the form of BOT contract. For your information, Vietnam ties in first place with Singapore in terms of market access liberalisation.

The recent conclusion of the EU- Vietnam FTA (EVFTA) negotiation and the signing of the CPTPP further opens the market to foreign investors. The investors now can bring their technology and know-how, especially those from countries with high level of development in renewable sectors such as Germany, to Vietnam with less market access barriers and being more secured. In particular, the CPTPP and the EVFTA make it possible that foreign investors could sue Vietnam’s Government for its investment related decisions according to the dispute settlement by arbitration rules. The final arbitral award is binding and enforceable without any question from the local courts regarding its validity. This is an advantage for investors considering the fact that the percentage of annulled foreign arbitral awards in Vietnam remains relatively high for different reasons.

Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any lawyers listed in our office listing if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Why you shouldn’t miss out on Vietnam’s industrial property market

Though comparatively young among its regional peers, Vietnam’s economy is turning up some exciting areas of opportunity. One of the most promising is the industrial property market, comprising industrial land, ready-built factories, warehouses and other logistics properties.

 

Slowly but surely, the country is moving from a labour-intensive to a capital-intensive economy, and over the next few years we will continue to see a shift towards the more value-added sector.

 

This means that the industrial sector will begin to incorporate more sophisticated requirements, demanding a higher level of expertise and technical equipment. At the moment, industrial parks remain sparse and there is no concerted effort to gather industries on a regional level.

 

However, Vietnam’s manufacturing and processing sector accounted for over 40 percent of the country’s foreign direct investment (FDI) last year, which surged to a record high of US$36 billion overall. This trend looks set to continue.

 

Get in on industry

 

Currently, the city of Hai Phong and province of Bac Ninh are the two localities boasting the highest number of industrial parks in the country. They are also the biggest draws for industrial investment in the northern economic region.

 

France’s FM Logistic, a leading warehouse supplier, recently launched a 5,000 sq.m logistics warehouse in Bac Ninh while purchasing an additional 50,000 sq.m in the north to build the first European-standard storage centre in Vietnam.

 

Other areas around the country are showing similar signs of strong development and investors would be wise to get in early.

 

In fact, the country’s largest supplier of industrial property, the BW Industrial Development JSC, debuted in the southern province of Binh Duong earlier this year. BW is a joint-venture between US private equity fund Warburg Pincus and Vietnam’s Investment and Industrial Development Corporation (Becamex IDC), with investment of over US$200 million.

 

Betting on the country’s booming manufacturing sector and rising domestic consumption, the company has bought land for eight projects in five localities around Vietnam, with a focus on developing institutional-grade logistics and industrial properties.

 

A well-connected hub

 

Among several notable advantages increasing Vietnam’s attractiveness to industrial investors, the country’s proximity to some of the world’s major sea trading routes offers huge opportunities to develop maritime transport, particularly for logistics services.

 

The country’s border with China makes it a promising option for manufacturers looking at alternative locations in Southeast Asia while operating costs in China continue to head upwards.

 

Additionally, the nation’s household income is likely to increase. According to recent research, Vietnam is expected to enjoy the strongest growth in the middle-income population bracket, with a Compounded Annual Growth Rate (CAGR) of 19 percent from 2018-2020, and an increase of 14 percent from the previous decade.

 

A young population coupled with growth in average income will boost purchasing power and help the country retain its spot as a top investment destination in Southeast Asia.

 

The fruits of free trade

 

Vietnam’s industrial real estate sector is also expected to get a helping hand once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into effect.

 

The passage of the deal has been smooth so far, and players both at home and abroad are already considering ways in which they can benefit from each other’s markets. Tariff cuts and streamlined regulations will precipitate a surge in investment, and a big slice will go into the industrial sector.

 

Acknowledging the oncoming wave of interest, the Prime Minister approved spending of up to US$921 million on infrastructure development around economic zones and industrial parks by 2020. This heavy investment has been earmarked for roads, drainage and water waste treatment facilities, as well as power infrastructure for industrial parks and clusters, hi-tech parks and hi-tech agricultural zones.

 

Major cities are also eyeing increased industrial attraction, especially from abroad. Under the development plan for Hanoi, the city will have nine more industrial parks on a total area of 2,360 hectares by 2020, an increase of 132 percent against current supply.

 

Easing the entry of foreign players to such parks would help in boosting occupancy. It remains to be seen whether the pledged cash will complete the connection of factories to road networks, as well as promote the growth of residential and commercial areas around the parks. If the strong demand is anything to go by, these requirements are likely to be met soon.

 

For these reasons, Vietnam is becoming more appealing to foreign manufacturers, their associated suppliers and supporting industries. Investor interest in the industrial market is on the up, in industrial zones as well as in income-producing industrial assets, build-to-suit opportunities and logistics-based warehousing.

 

Huge opportunities exist in Vietnam for both existing players and new manufacturing firms to snap up significant market share and get in on the ground floor. This area is certainly one to keep an eye on.

 

For more information about Vietnam’s industrial sector, please contact Giles at GTCooper@duanemorris.com or any of the lawyers in our office listing. Giles is co-General Director of Duane Morris Vietnam LLC and branch director of Duane Morris’ HCMC office.

Location, location, location – 5 areas to watch in Vietnam

With the second fastest growing economy in the world after China, Vietnam offers investors an almost overwhelming range of ways to get in on its continuing success story.

 

From energy to real estate, transport to tourism, a multitude of areas are experiencing growth and attracting domestic and foreign investment. The push to ease regulations is set to continue, and the government is working to ensure an evermore fertile business climate. But with so many options, where is a good place to start?

 

Here are five spots currently generating some real excitement:

 

  1. Soc Trang

 

The Mekong Delta province of Soc Trang recently held an investment promotion conference and, with the backing of the Prime Minister, managed to rally investment pledges totalling nearly US$5.4 billion. The 47 projects are mainly focused on clean power generation, high-tech agriculture and tourism services.

 

With work already underway to reform and streamline administrative procedures, a new injection of cash could inspire even more growth over the coming years.

 

During the conference, the PM set out an aggressive development strategy for the province, underlining his vision that the coming decade would see Soc Trang expand its economy to achieve middle-income status.

 

Specifically, the province was urged to set its sights on high-tech agriculture adapted to climate change, clean seafood production and processing targeting high-value markets and eco-tourism linked with ‘smart’ agricultural models. To achieve this kind of sustainable development, provincial authorities will need to invest in human resources and education. Co-operative models between farmers, investors, banks and distributors will help the development of value chains and quality standards for agricultural products.

 

  1. Ninh Thuan

 

For those with eyes on the renewable energy sector, the province of Ninh Thuan is looking like a hot prospect. Construction on the country’s biggest solar power plant, with a capacity of 168 MWp and total investment of roughly US$194 million, commenced in the southern province early in June.

 

The plant is a project by Singapore’s Sunseap Group – a large provider of clean energy solutions – and is slated to cover an area of 186 hectares. Once operational in June 2019, the plant is expected to supply over 200 million kWh of electricity to the national grid annually.

 

Sunseap is not the only player taking advantage of the province’s valuable location and abundance of sunlight, with four other plants kicking of construction this year in Ninh Thuan. With backing from provincial leaders, the province aims to become a renewable energy hub, with the generation of 2,000 MW of solar power by 2020.

 

So far, the province has 15 wind power and 27 solar power projects, with designed capacity of nearly 800 MW and 1,808 MW, respectively.

 

  1. Ho Chi Minh City

 

With properties priced at a fraction of those in neighbouring Singapore and Thailand, Vietnam is drawing a number of real estate investors and becoming a popular destination for foreign buyers.

 

Interest in Ho Chi Minh City, in particular, has been growing among foreign buyers with a number of projects already for sale and some approaching completion in the next one to two years. Given the political stability of the government, some investors see Vietnam as having the possibility to grow like China.

 

Home prices in Vietnam have been rising over recent years, making a modest increase last year on the back of 6.8 per cent economic growth and rapid increase in direct foreign investments.

 

  1. Coastal hot spots

 

The hotel and hospitality sector is experiencing a resurgence in Vietnam, with many properties reporting strong occupancy rates and a large number of new operators entering the market, especially in coastal areas such as Da Nang and Nha Trang.

 

These sites were already known as popular destinations for both domestic and foreign tourists, with the number of international guests visiting the country reaching over 13 million last year. In the first four months of 2018, more than 5.5 million international guests visited Vietnam, an increase of 29.5 percent over the same period last year. As interest continues to mount, so too do opportunities for investors in the hospitality sector.

 

Thanks to the strong development of tourism infrastructure and improvements in accommodation, cities like Da Nang and Nha Trang now offer a wide selection of hotels, luxury resorts and beach villas to suit a range of budgets and preferences.

 

Condotels are a growing trend in this sector, and several developers have adopted this model as a method of refinancing. Experts forecast that up to 18,000 condotel units will be added to the market in the next two years in key tourism destinations, accounting for 60% of the total new supply.

 

With major groups such as Vingroup, Sungroup, FLC, Muong Thanh and Empire, as well as well-known international brands snapping up segments of Vietnam’s hospitality market, this area will be one to watch in the coming years.

 

  1. Quang Binh

 

The central province of Quang Binh has drawn up a list of 48 projects to be completed in the 2018-2020 period, with total expected value of over US$2.2 billion.

 

The projects are expected to cover more than 8,000ha of land, with a focus on tourism, trade and services, industry, and agriculture, as well as education and health care.

 

Of the projects, 14 are in tourism, including coastal and ecological tourism and resort complexes. These are considered high-value projects that will spur local job creation, boost the budget and foster tourism development in the province.

 

For more information about investing in Vietnam, please contact Giles at GTCooper@duanemorris.com or any of the lawyers in our office listing. Giles is co-General Director of Duane Morris Vietnam LLC and branch director of Duane Morris’ HCMC office.

ベトナム:インフラ開発のジレンマにグリーンボンドは効くか著者:Giles T. Cooper

翻訳:志澤政彦(Masahiko Shizawa)

原文:https://blogs.duanemorris.com/vietnam/2018/05/15/are-green-bonds-the-answer-to-vietnams-infrastructure-dilemma/ 

ベトナムを含む東南アジア諸国では、急成長とともに安定した資金源の確保が困難になってきた。

このことは、インフラ事業において顕著である。アジア開発銀行(ADB)の報告書によると、経済成長に伴い、2030年までにこの地域では2.8兆米ドルに相当する道路、橋梁、鉄道が必要になるとされている。

不安定さを増す政治情勢に直面している東南アジア諸国は、この先数年のインフラ開発の資金調達の選択肢としてより安全なものに目を向けている。「一帯一路」政策の下ですでに1兆米ドルものプロジェクトを支援してきた中国への過剰依存は、国内的解決策を経済が志向するにつれ、その規模が縮小されていくものであろう。従前に表明した境界線を踏み越えようとする中国の計画への恐怖は、資金の不正流用及び失敗したプロジェクトという具体的教訓と相まって、この地域周辺の国々に「一帯一路」の活用の再考を迫ってきた。

南シナ海の領域問題をめぐる政治的緊張及び増加傾向にある国際的な保護主義を前に、ベトナムのような国々は将来的な資金調達を自前で行う途を探る方向でいる。この地域全般で国家予算への負担は増加傾向にあり、この先数年で強く求められる成長のため投下すべき他の資金元を探そうとしている。一つの提案は、「グリーンボンド」の発行促進である。

「グリーンボンド」について知らなければならないこと

グリーンボンドは債券の一つであるが、発行者によって調達された資金は「グリーン」なプロジェクト、つまり、環境に配慮し、気候への懸念を考慮に入れたものに割り当てられる。グリーンボンドの発行が特に利益になるセクターは、再生可能エネルギー、インフラ、および建設業界である。

道路、橋梁、トンネル、そして鉄道の建設には、地域的及び全国的な気候に多大な負担をかけてしまう。そのため、環境フットプリントの低減を志向するプロジェクトの優先度は最も高い。

環境に配慮したプロジェクトに資金調達を集中させることに加えて、グリーンボンドは発行者の持続可能な開発への取り組みの深さを強調する意義もある。さらに、発行者はグリーン・ベンチャーにのみ投資をする特定のグループのグローバル投資家にアクセスできるようになる。国外のプレーヤーによるグリーンな投資への注目が高まっている中、資本調達のコスト削減にも貢献しうる。

ベトナムにとって意味するものとは

ドイツの開発機構であるGIZによれば、現在の炭素依存的成長からより持続可能な道筋へと移行し、その約束草案(Intended Nationally Determined Contribution、INC)に向けた行動をとるため、ベトナムは2020年までにおよそ307億米ドルを必要としている。

グリーンな成長のための資金のうち30%程度は国家予算、すなわち中央と各省の予算及び政府開発援助、からの拠出が見込まれているが、残りは民間セクターから供給されることとなるとみられる。

ベトナム政府が2011年から2020年の期間について承認したベトナム・グリーン成長戦略(Vietnam Green Growth Strategy, VGGS)の下では、資本市場がその目標達成のカギとなるだろう。グリーンボンドが死活的な役割を果たすのは、まさにこの点においてである。グリーンなプロジェクトや事業体のため特別に資金調達を行い、グリーンな商品のデリバティブの流通の素地を作り、さらに民間セクターの投資を持続可能な開発のため活用することになる。

国外からの関心としては、ベトナムのグリーンボンドの発行により、持続可能な開発、再生可能エネルギー、そして環境に配慮した成長を志向している国際投資家の誘致が期待されている。世界中の投資家が、気候変動の課題やエネルギーの移行につき、前にも増して注視している。環境問題を考慮に入れた投資ツール、特に開発途上国におけるものについて要求する投資家は、増加の一途を辿っている。

この地域で、ベトナムが持続可能な資金調達の見通しを見据えている唯一の国というわけではない。アセアン・グリーンボンド基準(ASEAN Green Bonds Standards、AGBS)が2017年11月に開発・実行され、アセアンでのグリーンボンドの発行に共通の基準が制定された。マレーシア、シンガポール、インドネシアの会社は、すでにアセアン・グリーンボンドと称された債券を発行している。

これらのグリーンボンドの発行によって調達された資金は、再生可能エネルギー、廃棄物処理、グリーンな建築物やインフラといった、持続可能性の要件を満たしたプロジェクトに配分され、さらに統合、連帯、アセアン全体の成長といった共通の目標に貢献するものである。何よりも、地域のリーダーたちは将来世代の犠牲のもとに成長は成り立たないことに気づいてきている。AGBSのような新たな取り組みが、環境に配慮した投資への資源の分配を促進するだろう。

成長不全を来しているグリーンな成長

2020年までに達成されるべき指標の一つは、グリーンボンド市場を、現在およそ90兆米ドルのグローバル債券市場の少なくとも1%にまで拡大することである。これを現実のものとするため、ソブリン債発行者は断固たる決断をする必要がある。

流動性の欠如、債券の構造の限定的な多様性、及び確実に収益の見込めるプロジェクトの定期的で大きな流れの不在といったものが、未だにアジアの現地通貨によるグリーンボンド市場の特徴である。

加えて、社会的責任を果たそうとしている投資家からの恒常的な要求はまだ限定的であり、この市場の成長の可能性を阻んでいる。

そうはいっても、ソブリン債発行者が環境を整備し、強力な枠組みが適用される限り、現地通貨でのグリーンボンド市場の成長の見込みは大きい。制約となりうるのは、確実に収益の見込めるグリーンな投資の数と大きさであろう。

もしベトナムが「グリーンボンド」の動きを十全に活用しようとするなら、上述したような方法での資金の注入が解決策を示してくれるだろう。それは、インフラ事業における資金調達の穴を埋め、より速い拡張に向けた基礎を固め、そして、これまで長い間痛めつけてきた環境には休息をもたらすものであるはずだ。

ベトナムのグリーンボンドに関する情報については、GTCooper@duanemorris.comよりGiles弁護士または当事務所の弁護士一覧の弁護士にお問い合わせください。Giles はドウェイン・モリス・ベトナム法律事務所の共同代表であり、ドウェイン・モリス・ホーチミン支所の支所代表です。

Vietnam – Solar Power Breaking News – Possible Extension of deadline for Feed in Tariff (9.35 USD cent per KW) – what you must know:

The current solar Feed-in-Tariff for on-grid projects in Vietnam is 2,086 Vietnamese dong/kWh (equivalent to 9.35 UScents/kWh) (VAT excluded). According to Decision 11/2017/QD-TTg, this solar FIT applies for projects which come into operation before 30 June 2019 and within 20 years from the commercially operational date (“COD”) (i.e., the date when the solar plant is ready to sell electricity to the buyer – EVN).

However, from our informal high level contact within the MOIT recently, it is very likely that the solar FIT of US9.35 cents/kWh will continue to apply beyond the original COD (i.e. 30 June 2019). The deadline shall be likely extended for another half a year or another year for solar projects across Vietnam, except for projects in Ninh Thuan. This policy is not yet formally adopted but very likely will be publicized at the end of this year.

For solar projects in Ninh Thuan, the COD deadline extension will be longer (i.e. for another one and a half year from 30 June 2019). This is due to the fact that, in Ninh Thuan province, nuclear energy development has been stopped and the Government would like to develop solar energy there to support the province’s economic development.The special policy for solar projects in Ninh Thuan will be coming very soon, according to our MOIT contact. He informed us that the Deputy Prime Minister has already approved this special policy for Ninh Thuan and all await formal procedures.

We will closely monitor to update on any further changes.

Please contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have questions on the topic or any other lawyer in our office listing. Dr. Oliver Massmann is the General Director of Duane Morris LLC.

VIETNAM – THOMSON REUTERS INTERVIEWING DR. OLIVER MASSMANN ON INITIAL PUBLIC OFFERINGS (IPO)

1. Why has there been so much IPO activity in Vietnam of late? What has been driving it?

The investors are very optimistic about the development of Vietnam’s market. Vietnam’s GDP in Q1/2018 is 7.4%, the highest rate in the past 10 years. In addition, there is growing middle class with great purchasing power. The World Bank predicts that the middle class will account for 26% of Vietnam’s population by 2026, double than the current statistics. The Government has also made several attempts to improve the investment environment.

2. How is this resulting in the legal work that the law firm is seeing out of Vietnam? What kinds of clients are you advising, and what kinds of advice are they requesting?

When the investors are new to the market, they will need legal advice to secure their investment and comply with Vietnam laws. We see this a great chance to improve our business and show our expertise in the sector. Most of our clients are from the US and Europe, who would like to take advantage of the upcoming free trade agreements such as the EU- Vietnam FTA and the CPTPP and expand their business to other neighboring countries. We mainly advise clients on due diligence of the partner, how to structure the investment and the best cooperation form.

3. What are some of the key trends you have seen among Vietnamese IPOs? How are these different from other markets in Asia/Southeast Asia?

In my view, the Government of Vietnam is more than ever expected to get money to cover its huge investment and regular payment expenses. This would serve as a key engine for a new waive of equitisiation of large State owned enterprises, especially after the successful placement of Sabeco’s shares.
In a short term, the cash flow may come to portfolio of SCIC’s list including major manufacturing companies but, in a long run, we may expect a come-back of banks, retails and real estate’s shares.
In terms of capital sources, we can expect a cash flow coming from major Asian economies such as Japan, Korea, Singapore, Hong Kong and especially mainland China which increases their strong presence in the market.
When it comes to how the IPO market of Vietnam may differ from the rest of Asia/Southeast Asia, we strongly believe that the equitisation of SOEs of a larger scale and with a strong determination from the top would play a key role in driving the market.

4. What industries are seeing the most activity – and can expect to see the most activity going forward? Why?

Financial (with major focus on real estate) sector, banking, consumption services and power sectors have been and will see further significant growth. The reason is in Q2/2018, many enterprises with large capitalization and of great interest to foreign investors in these sectors are now preparing for the public listing.

5. What are your predictions for the Vietnam IPO market in the immediate future?

The Vietnam IPO market will continue the growth. Leading enterprises with good financial capacity and high growth in the sectors will attract both foreign and domestic investment. It is noted that in 2018, there will be a number of state-owned enterprises privatized under the Prime Minister’s decision. These enterprises include Habeco, Vinamilk, etc. which is believed to be successfully privatized following the recent success of Sabeco, another state-owned enterprise in the beverage sector under the Ministry of Industry and Trade’s management.

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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any lawyer in our office listing if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General of Duane Morris Vietnam LLC.

Vietnam – Regulatory Framework for Fintech and Blockchain Applications Announced

In its 5th session that closed on 15 June 2018, Vietnam’s 14th National Assembly passed 7 bills, including the controversial Cybersecurity Law. When the laws are revised, it is game on for law firms, but crucial is  action before the laws are passed.

Vietnam’s bureaucrats who draft the laws are open to exchanging information with experts from the business community. Last week, I talked with the Minster of Justice and other officials in preparation for the coming legal framework for fintech, blockchain, cryptocurrencies, and ICOs. Ministry of Justice officials announced that new legislation on virtual assets is planned within the year. Likewise, the State Bank of Vietnam is preparing a fintech “regulatory sandbox” – an environment where generally strict banking laws and other compliance requirements are eased for start-ups and new R&D projects to conduct proof-of-concept work. The Ministry of Science and Technology and other authorities are also working hard on related regulations in their respective fields.

Vietnam is beyond the point of “if” and “when” to regulate blockchain technology and applications – it has entered the “how” phase. Balancing the Cybersecurity Law and other national security measures with the opportunity to become a leading hub of the 4th Industrial Revolution might not be easy, but while legislation is pending, businesses can play a part in shaping Vietnam’s blockchain law.

For more information, please contact Manfred Otto at  MOtto@duanemorris.com or any other lawyer you are regularly communicating with at Duane Morris.

 

Vietnam – Secteur de l’immobilier – Problèmes actuels et solutions pour l’investissement et les perspectives sur les principaux accords commerciaux CPTPP et EUVNFTA

A. INTRODUCTION
Le cadre juridique pour le secteur de l’immobilier au Vietnam est défini par la loi sur le commerce immobilier de 2014 (LREB), la loi sur les logements résidentiels de 2014 (LRH) (tous deux en vigueur depuis le 1er juillet 2015). La LREB est régi par le décret n ° 76/2015 / ND-CP, la LRH est respectivement guidé par le décret n ° 99/2015 / ND-CP. En outre, le décret n ° 01/2017 / ND-CP, attendu depuis longtemps, a été rendu public le 6 janvier 2017 et modifie trois décrets régissant la loi foncière de 2013.
Les dispositions des règlements mentionnés ont attiré plus d’investissement dans le marché immobilier au Vietnam. Ils ont réduit les obstacles à l’investissement et élargi l’accès aux propriétés au Vietnam.
B. ENJEUX
Cependant, tous les problèmes ne sont pas encore résolus.
1. Retard dans la délivrance du certificat d’utilisation des terres (LURC) pour les investisseurs étrangers
La délivrance du certificat de droit d’utilisation des terres aux étrangers est une exigence essentielle pour le développement de projets sur des terres achetées. L’article 75 du décret n ° 95/2015 prévoit l’obligation pour le Département de la construction de délivrer la “Liste des projets interdits de propriété étrangère”. Cependant, la liste n’est pas encore publiée. Par conséquent, le ministère des Ressources naturelles et de l’Environnement s’abstient de délivrer des permis de conduire étrangers aux étrangers.
En conclusion, la Liste des projets interdits de propriété étrangère devrait être publiée dès que possible afin que les étrangers qui achètent des terres au Vietnam puissent obtenir le LURC et soient en mesure de développer leurs projets.
2. Que sont les « entreprises à capitaux étrangers » ?
La LREB, la loi foncière et la loi sur l’investissement de 2014 (LOI) régissent les « entreprises à capitaux étrangers ». Il reste des incertitudes sur ce terme.
La LREB ne fournit aucune définition des entreprises à capitaux étrangers. En outre, la loi foncière prévoit que les entreprises conjointes, les entreprises à capital 100% étranger et les entreprises vietnamiennes dont les étrangers achètent des actions, les fusionnent et les acquièrent sont considérées comme des entreprises à capitaux étrangers sans aucune indication quant au pourcentage de propriété. En vertu de la loi sur l’investissement, une organisation économique dont les investisseurs étrangers sont membres ou actionnaire doit être une entreprise à capitaux étrangers si la part de l’étranger dans l’organisation économique est égale à 51% ou plus. D’autre part, les organisations ayant des membres ou des actionnaires étrangers détenant moins de 51% ne sont pas classées comme des entreprises nationales en vertu de la Loi sur l’investissement.
Cependant, cette question est cruciale en raison du traitement différent des entreprises à capitaux étrangers et des entreprises nationales. Par exemple, les entreprises nationales peuvent transférer des droits d’utilisation des terres sous forme de division, alors que cela est interdit aux entreprises à capitaux étrangers.
En outre, le document n ° 386 / BXD-QLN (28 février 2017) publié par le Ministère de la construction indique que la LREB n’a pas besoin de fournir des dispositions relatives aux entreprises à capitaux étrangers comme l’a déjà fait la lettre d’intention. Cependant, le Document 386 n’indique pas que la LREB peut adopter la même définition d’entreprise à capitaux étrangers, le terme reste ambigu en vertu de la LREB.
3. Restrictions sur les sources de capital
En raison de la limitation des sources de capital pour le logement résidentiel par la LRH, les promoteurs étrangers ne peuvent plus obtenir de prêts auprès d’établissements de crédit offshore et d’institutions non-crédit. Cette mesure réduit la capacité et l’opportunité de lever des capitaux efficacement et la compétitivité pour les développeurs étrangers. Même si, il n’est pas nécessaire de limiter les possibilités de mobiliser des capitaux auprès de sources légitimes.
4. Changement des droits d’utilisation des terres en cas d’acquisition d’actions / d’apport en capital
L’article 2.27 du décret 01/2017 prévoit l’obligation pour les entreprises de céder des droits d’utilisation du sol ou d’enregistrer des changements dans le terrain et les biens attachés au terrain lorsqu’il y a un changement d’utilisateur foncier en cas d’acquisition d’actions ou de contribution droits d’utilisation inclus. En cas d’acquisition de terres, la terre reste toujours avec la même entreprise. De plus, le processus d’attribution peut imposer des obligations financières. Cette question peut entraîner des difficultés pour les investisseurs lorsqu’ils acquièrent des actions ou apportent du capital dans des entreprises.
5. Approbations d’investissement
L’approbation principale pour les développements résidentiels est une décision d’investissement de principe (IID) ou l’approbation de principe de l’investissement (IAA). En outre, un investisseur souhaitant établir une société au Vietnam a besoin d’un certificat d’enregistrement d’investissement (IRC).
a. Circonstances nécessitant un IID :
L’article 32 de la loi sur l’investissement régit l’exigence de l’IID qui ne s’applique qu’aux projets dans lesquels les promoteurs reçoivent des droits fonciers de l’État directement par attribution ou location de terres sans enchères, appels d’offres ou transferts. En outre, la loi foncière stipule que la seule façon dont les promoteurs peuvent recevoir des terres de l’État est d’attribuer ou de louer des terres. En conséquence, il est incertain de quelle manière le promoteur peut recevoir des terres par transfert.
b. Approbation de l’investissement pour la contribution en capital au titre des droits d’utilisation des sols:
Dans le cadre d’une coentreprise entre un investisseur national et un investisseur étranger pour développer des projets de logements résidentiels, l’investisseur national apportera du capital sous forme de droits d’utilisation des terres. Dans ce cas, l’IID n’est requis que dans les cas d’attribution ou de location de terrains par l’Etat sans appel d’offres ou transfert. Il n’est pas certain que l’IIA sera requis en cas d’appel d’offres ou de transfert.
En vertu de la loi sur la construction de 2014, le promoteur doit obtenir le permis de construction avant de pouvoir commencer le projet. Il n’est pas clair si l’IIA est nécessaire pour obtenir le permis de construire. Cette exigence pourrait entraîner un manque de capacité à mener le projet dans les cas où l’obtention de l’IIA a échoué.
D’un autre côté, si l’IID est requis, le développeur aura plus d’assurance en raison de la possibilité d’obtenir l’IID avant que le droit d’utilisation des terres soit apporté.
c. Contourner les approbations d’investissement
Comme mentionné ci-dessus, la Loi sur l’investissement fournit l’exigence de l’IRC en dehors de l’IID et de l’IIA. Pour les projets nécessitant l’IID, l’IRC sera automatiquement délivré après 5 jours ouvrables à compter de la délivrance de l’IID. Le contenu de l’IID est similaire à l’IRC et aucun document supplémentaire n’est nécessaire pour l’émission de l’IRC. Par conséquent, l’IRC n’est pas nécessaire lorsque le IID est émis.
Pour les projets nécessitant l’IIA, le développeur doit d’abord obtenir l’IRC, puis mettre en place l’entreprise avant d’obtenir l’IIA. Comme mentionné ci-dessus, le développeur est incapable de développer le projet dans les cas d’échec de l’obtention de l’IIA. En outre, l’IIA et l’IRC traitent avec les autorités et leurs approbations et l’IIA est délivré sur la base de l’approbation de planification au 1/500, de sorte que la nécessité de l’IRC n’est pas requise.
6. Contribution du capital sous forme de droit d’utilisation des terres
La loi foncière et la loi sur les entreprises de 2014 prévoient la possibilité de verser des droits d’utilisation des terres par des individus d’une terre à titre de capital à une entreprise pendant une certaine période.
En vertu de l’article 80 du décret no 43/2014 / ND-CP (15 mai 2014) relatif à l’orientation de la loi foncière, la contribution en capital sous forme de droits d’utilisation des terres prend fin en cas de décès du contributeur individuel. En conséquence, si le contributeur de capital est en train de disparaître, l’accord de contribution en capital sera résilié, ce qui affectera le LURC de l’entreprise et de ses droits d’utilisation des terres. D’autre part, la loi sur les entreprises de 2014 stipule que si une personne apporte des terres en tant que capital, l’entreprise aura le droit sur la terre.
Par conséquent, l’article 80 du décret no 43/2014 / ND-CP a causé de la confusion et de l’incertitude chez les promoteurs au cas où ils envisageraient de recevoir des droits d’utilisation des terres de particuliers.
7. Conduite d’affaires immobilières sur des terrains apportés en capital
En vertu de la Loi foncière, les entreprises à participation nationale et étrangère ont le droit de recevoir une contribution en capital sous forme de droits d’utilisation des terres. Cependant, il n’y a aucune disposition dans la LREB concernant les contributions en tant que capital pour les organisations et les individus. Par conséquent, les organisations n’ont pas le droit de recevoir une contribution en capital au titre des droits d’utilisation des terres pour développer des projets immobiliers. Cela provoque des inégalités et une concurrence déloyale dans le secteur immobilier.
C. PERSPECTIVES SUR LES PRINCIPAUX ACCORDS COMMERCIAUX CPTPP (TPP 11) ET EUVNFTA
En janvier 2017, le président américain Donald Trump a décidé de retirer les Etats-Unis de l’accord TPP. En novembre 2017, les membres restants du TPP se sont rencontrés lors des réunions de l’APEC et ont conclu à la promotion de l’actuel CPTPP (TPP 11) sans les États-Unis. L’accord doit être signé par tous les États membres au premier trimestre de 2018. Ensuite, il doit être ratifié dans chaque État membre avant d’entrer en vigueur.
Les effets du TPP 11 promettent de grands avantages pour le secteur immobilier au Vietnam. Le TPP 11 vise à éliminer les lignes tarifaires et les droits de douane entre les États membres sur certains biens et produits à 100%. Cela rendra le marché vietnamien plus attractif et pourrait inciter les entreprises étrangères à s’installer au Vietnam pour construire des entrepôts, des bureaux, installer des usines ou même investir dans le secteur immobilier car le marché devient plus dynamique avec le TPP.
Un autre accord commercial important est l’accord EUVNFTA entre l’Union européenne et le Vietnam. L’EUVNFTA offre une excellente opportunité d’accéder à de nouveaux marchés pour l’UE et le Vietnam. Cela aidera à apporter plus de capitaux au Vietnam. En outre, l’EUVNFTA stimulera les secteurs les plus économiques au Vietnam. Les établissements dans d’autres secteurs économiques au Vietnam auront un impact sur le secteur immobilier en raison de son association avec ces secteurs tels que la santé, la technologie ou l’éducation.
En outre, le Règlement des différends entre investisseurs et États (ISDS) garantira les normes les plus strictes de sécurité juridique, d’applicabilité et de protection pour les investisseurs. Nous alertons les investisseurs pour qu’ils utilisent ces standards! Nous pouvons vous conseiller sur la meilleure façon de le faire! Il va être appliqué dans le cadre du TPP 11 et de l’EUVNFTA. En vertu de cette disposition, pour les litiges liés aux investissements, les investisseurs ont le droit d’introduire des demandes d’indemnisation auprès du pays hôte au moyen d’un arbitrage international. La procédure d’arbitrage doit être rendue publique par souci de transparence dans les cas de conflit. En ce qui concerne le TPP, la portée de l’ISDS a été réduite en supprimant les références aux « accords d’investissement » et aux « autorisations d’investissement » suite à la discussion sur l’avenir du TPP lors des réunions de l’APEC les 10 et 11 novembre 2017.
D’autres titres sont assortis de l’Accord sur les marchés publics (GPA) qui fera partie du TPP 11 et de l’EUVNFTA.
Le GPA dans les deux accords, traite principalement de l’exigence de traiter les soumissionnaires ou les soumissionnaires nationaux avec du capital d’investissement et les soumissionnaires vietnamiens également quand un gouvernement achète des biens ou des demandes de service valant au-delà du seuil spécifié. Le Vietnam s’engage à publier en temps opportun les informations sur l’offre, à laisser suffisamment de temps aux soumissionnaires pour préparer et soumettre leurs offres, maintenir la confidentialité des offres. Le GPA dans les deux accords exige également que ses Parties évaluent les offres sur la base de principes objectifs et équitables, évaluent et attribuent les offres uniquement sur la base des critères énoncés dans les avis et les documents d’appel d’offres, créent un régime efficace pour les plaintes et règlement des différends.
Cet instrument assurera une concurrence loyale et des projets de développement de qualité et efficaces.
D. CONCLUSION
Les problèmes mentionnés affectent la compétitivité dans le secteur immobilier. Les restrictions données, les obligations supplémentaires pour les investisseurs étrangers, l’absence de directives claires sur les règlements d’application constituent des obstacles pour les investisseurs qui cherchent à investir dans ce secteur au Vietnam. Compte tenu des engagements du gouvernement à assurer la croissance et les problèmes mentionnés ci-dessus, il est nécessaire de créer des lignes directrices claires pour éliminer la confusion pour les investisseurs et les acheteurs immobiliers. En outre, les principaux accords commerciaux à venir auront un impact important sur le développement du secteur immobilier au Vietnam. D’un autre côté, le gouvernement vietnamien doit encore améliorer l’environnement juridique pour assurer la mise en œuvre des accords.

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Si vous avez des questions sur ce qui précède, n’hésitez pas à contacter Dr. Oliver Massmann à l’adresse suivante : omassmann@duanemorris.com. Dr. Oliver Massmann est le directeur général de Duane Morris Vietnam LLC.
Merci beaucoup!