Month: March 2025

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.

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.

To provide detailed provisions guiding the new Law No. 61/2024/QH15 on Electricity passed by the National Assembly on 30 November 2024 (“Electricity Law”), on 3 March 2025, the Government issued a series of Decrees, namely

(i) Decree No. 56/2025/ND-CP providing detailed guidance on the implementation of a number of articles of the Electricity Law regarding power development planning, power grid expansion, investment in power projects, and bidding for electricity projects (“Decree 56”),
(ii) Decree No. 57/2025/ND-CP regulating direct power purchase mechanism between renewable energy generators and large electricity users (“Decree 57”),
(iii) Decree No. 58/2025/ND-CP providing detailed guidance on a number of articles of the Electricity Law regarding the development of renewable energy and new energy (“Decree 58”),
(iv) Decree No. 61/2025/ND-CP providing detailed guidance on a number of articles of the Electricity Law regarding the Electricity Operation License (“Decree 61”).

We would like to present the key highlights of the above-mentioned Decrees as below:

1- Decree 56

1. Requirements for master plan inclusion:
The following power projects are exempt from the requirements for master plan inclusion:
• Self-production and self-consumption renewable and new energy sources either grid-connected at a low voltage level of ≤ 1kV or not connected at all
• Grid-connected power sources equipped with zero-export systems
• Power sources using excess heat generated from the manufacturing lines for self-consumption, whether connected or not connected to the national grid, as long as there is no sale of power output to the power system
• Power sources not connected to or selling power output to the national power system, except for the cases of power imports and exports (e.g., power sources only for private sale and purchase)
• Power grids of ≤ 1kV voltage level.

2. Bidding process for investor selection
• Applicable projects: Gas-to-power projects, coal-fired power projects, and renewable energy projects (including solar power, wind power, hydropower, and biomass power), which are included in the national or provincial power master plans and have ≥ 02 interested investors.
• Electricity consumer: Vietnam Electricity (EVN) (or its authorized units) and its five Power Corporations.
• Bidding dossier: Information included in the bidding documents, among others, includes the following:
• Electricity consumer.
• Pre-feasibility study report of the project.
• Draft Power Purchase Agreement (PPA).
• Pass-through mechanism and long-term minimum contract power output mechanism as investment guarantee mechanisms.
• Evaluation criteria for power industry development effectiveness:
• For the effectiveness assessment, the bidder evaluation score with regard to the level of power industry development will contribute between 80% and 90% of the score allocation percentage for determining the winner.
• Power tariff for projects with a tariff framework issued by the MOIT: The defined ceiling tariff for this case is required to be lower or equal to the ceiling tariff specified in the bidding dossier. The bidders are required to propose a power tariff lower or equal to the ceiling tariff for the power purchaser and the winning bidder to negotiate the PPA tariff.
• Contributions to the state budget for projects lacking a tariff framework from the MOIT: The minimum annual contribution to the State budget (regardless of the investor’s legal obligations to the State budget); the bidder must propose an amount that is higher or equal to the amount specified in the bidding dossier.
• PPA discussion and implementation:
• Approval of the feasibility study (FS) report: Within 15 months (for hydropower, gas-to-power, coal-fired, and wind power projects) or six months (for biomass power and solar power projects) from the execution date of the project contract.
• PPA negotiation and execution: According to the bidding outcomes and the sanctioned FS report, within three months from the day the successful bidder presents a valid application to the power buyer.
• Transitional provisions: Power projects already included in the master plan with a capacity scale included in the power supply network development plan at the provincial level under Decree 56 will continue to be implemented in accordance with the decisions approved by the competent authorities. These projects shall be updated in the provincial plan or the plan to implement the provincial plan when establishing or adjusting the provincial plan after this Decree takes effect.
2. Decree 57
Decree 57 replaces Decree No. 80/2024/ND-CP issued by the Government on 3 July 2024 on mechanisms for direct power trading between renewable energy generators and large electricity consumers (“Decree 80”) with the following notable provisions:
1. Models of direct power purchase: Similar to Decree 80, Decree 57 regulates (i) the private wire model where renewable energy generators sell electricity to large electricity consumers through a private power wire, and (ii) the grid-connected model where the sale and purchase of electricity are implemented via the grid.
2. Key changes: While Decree 57 replaces Decree 80 and inherits the mechanisms as set out in Decree 80, Decree 57 introduces the following amendments to enhance the enforceability of the DPPA mechanism:
• Scope of eligible renewable power sources: Biomass energy generators are added to Decree 57 as regulated renewable energy generators
• Large electricity consumers: While only industrial consumers are defined under Decree 80, businesses providing electric vehicle charging services are defined in Decree 57 as one type of large electricity consumers.
• Participation conditions:
• For large electricity consumers who have been using electricity for 12 months or more: The average overall electricity usage over the past 12 months (calculated based on the total electricity acquired from a Power Corporation or its authorized entities) cannot be less than the minimum electricity consumption threshold for large electricity users as outlined in the regulations governing the operation of the competitive electricity market issued by the Ministry of Industry and Trade (“MOIT”).
• For large electricity consumers who have been using electricity for less than 12 months: The average overall electricity usage is determined by the projected electricity demand acquired from a Power Corporation (or its authorized entities) and must meet or exceed the minimum consumption threshold for large electricity consumers as outlined in the regulations governing the competitive wholesale electricity market established by the MOIT.
• Limit on surplus power from rooftop solar: Surplus electricity from renewable generators with rooftop solar systems selling directly to major electricity users must not surpass 20% of the total electricity produced. This surplus electricity is also determined at the average market electricity price from the prior year, as reported by the electricity system and market operator. It must not go beyond the highest cost of the ground-mounted solar energy pricing structure
• Pricing framework: As for the private wire model, the selling price of electricity must not exceed the maximum price within the price framework. Similarly, the surplus electricity output from renewable energy generation units sold to Vietnam Electricity Group, Power Corporations, or Electricity Companies shall have its output and selling price agreed upon by both parties but must not exceed the maximum price level within the price framework for the corresponding type of power source.
3. Decree 58
Decree 58 replaces Decree No. 135/2024/ND-CP issued by the Government on 22 October 2024 on policies encouraging the development of self-production and self-consumption rooftop solar power (“Decree 135”) and introduces the following provisions:
1. Incentives provided for new energy projects:
• Exemption from sea area usage fees during the basic construction period but not exceeding 03 years from the date of commencement of construction. 50% reduction in sea area usage fees for a period of 09 years after the exemption period of the basic construction period;
• Exemption from land use fees and land rent during the basic construction period but not exceeding 03 years from the date of commencement of construction. After the exemption period of the basic construction period, the exemption and reduction of land use fees and land rent shall be implemented in accordance with the provisions of law on investment and land;
• The minimum long-term contracted electricity output is 70% within the loan principal repayment period but not exceeding 12 years unless the investor and the electricity buyer have another agreement. This mechanism shall not be applied in cases where the project fails to generate the minimum committed output due to reasons from the project side or due to load demand or technical conditions of the power system that cannot consume all the output;
2. New energy projects qualified for incentives:
• New energy projects produced from 100% green hydrogen, 100% green ammonia, or 100% mixture of green hydrogen and green ammonia;
• Projects supplying electricity to the national power system;
• The first project for each type of new energy.
3. Mechanisms and policies for self-production and self-consumption rooftop solar (“RTS”) power projects: Similar to Decree 135, Decree 58 provides two models for RTS power projects where developers can opt to either connect or not to connect their RTS power system to the grid. In the case of connection to the grid, no more than 20% of the RTS power system’s installed capacity may be sold to Vietnam Electricity (EVN) in exchange for the surplus power produced.
4. Development of offshore wind power projects:
• Applicable projects: Offshore wind power projects with in-principle investment policy approval issued by competent authorities before 1 January 2031.
• Conditions applied to foreign investors:
• Experience: Foreign investors must have at least invested and developed one offshore wind power project that is operating and generating power in Vietnam or elsewhere;
• Financial capability: Foreign investors must have their capital in the project accounting for at least 15% of the project’s total estimated investment capital, and their equity ratio on the capital contribution to the project being at least 20%;
• Participation of domestic enterprises: Domestic enterprises must hold at least 5% of the charter capital or total voting shares in the economic organization implementing the offshore wind power project. The domestic enterprises can be State-owned enterprises or enterprises in which a State-owned enterprise with 100% of the charter capital holds more than 50% of the charter capital or total voting shares. Additionally, for offshore wind power projects that export electricity without using the national power system, the domestic enterprises must hold more than 50% of the charter capital;
• Authorities’ consensus: Foreign investors must obtain written consensus from the Ministry of National Defense, the Ministry of Public Security, and the Ministry of Foreign Affairs; and
• Commitment to using domestic resources: They must commit to using domestic human resources, goods, and services from domestic suppliers, ensuring fair competition in terms of price, quality, progress, and availability.
4. Decree 61
Decree 61 replaces Decree No. 137/2013/ND-CP issued by the Government on 21 October 2013 providing guidance for the Electricity Law 2004, as amended and supplemented by Decree No. 08/2018/ND-CP dated 15 January 2018 and Decree No. 17/2020/ND-CP dated 5 February 2020 (“Decree 137”). Generally, Decree 61 inherits the relevant provisions of Decree 137 on the Electricity Operation License and the procedures with respect to the Electricity Operation License. Decree 61 also provides provisions to promote renewable energy sources and to align with the Electricity Law. Accordingly, according to Decree 61, the following projects are exempt from the requirements of an Electricity Operation License:
• Power projects for self-use, not selling electricity to other organizations or individuals:
a) No capacity scale limit for projects not connected to the national power system;
b) Installed capacity under 30 MW for projects connected to the national power system.
• Projects with installed capacity under 01 MW for power projects selling electricity to other organizations or individuals are exempted from electricity operation licenses in the power generation sector.
• Electricity businesses in rural, mountainous, border, and island areas that buy electricity with a capacity of less than 100 kVA from the distribution grid to sell electricity directly to electricity customers in rural, mountainous, border, and island areas are exempted from electricity retail licenses.

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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.

On 20 February 2025, the National Assembly passed Resolution No. 170/2024/QH15 providing special mechanisms and policies to remove obstacles for projects and land under the conclusions of inspections, examinations, and verdicts in Ho Chi Minh City, Da Nang City, and Khanh Hoa Province (“Resolution 170”). Resolution 170 introduces special mechanisms to handle violations relating to land use terms, land prices, land use fees, and land rent calculations where investors are allowed to continue the use of land, land prices are calculated based on specific milestones and timeline, and land use terms are determined specifically under the following inspection conclusions and reports:
· Inspection Conclusion No. 2852/KL-TTCP dated 2 November 2012 of the Government Inspectorate;
· Inspection Conclusion No. 269/KL-TTCP dated 16 September 2019 of the Government Inspectorate;
· Inspection Conclusion No. 250/KL-TTCP dated 11 September 2020 of the Government Inspectorate;
· Inspection Conclusion No. 757/KL-TTCP dated 13 May 2021 of the Government Inspectorate;
· Report No. 332/BC-TTCP dated 9 December 2020 of the Government Inspectorate.
According to Resolution 170, only obstacles caused by State authorities or State authorities and investors will be considered to be handled under this resolution.

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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 has so far been spared tariffs by the Trump administration despite a large foreign trade deficit; so goes the assumption…
1. This is not entirely true as to some aspects. Trump imposes worldwide 25 percent steel and aluminum tariffs. While several countries received exemptions from the 2018 steel and aluminum tariffs, Vietnam was never granted one. As a result, Vietnamese steel and aluminum exports were already subject to a 25 percent and 10 percent tariff, respectively. From March 12, the aluminum tariff will increase to 25 percent, while the steel tariff will remain unchanged.
· Vietnam was the US’s fifth largest source of steel in 2024, rising from ninth place in 2023. In 2024, US imports of steel mill products for domestic consumption from Vietnam skyrocketed by 143.4 percent on the previous year to reach 1.2 million metric tons, valued at US$1.13 billion, per data from the ITA. Almost 75 percent was composed of flat carbon and alloy steel. Vietnam also exports a smaller amount of aluminum to the US. In 2024, Vietnam’s total exports of aluminum products for domestic consumption to the US dropped by 1.7 percent from 2023 to 35,593 metric tons, valued at US$142.9 million.
It is important to note that Vietnam’s steel and aluminum exports to the US were already subject to tariffs of 25 percent and 10 percent, respectively. In 2018, during Trump’s first term, the US imposed Section 232 tariffs on steel and aluminum imports from all countries, citing national security concerns. While some countries later received exemptions, tariffs on many Vietnamese steel products have remained in place ever since.
• As a result, the impact on Vietnam’s steel exports to the US is likely to be limited, especially given that exports have continued to grow rapidly despite the tariff. The tariff hike could even benefit Vietnamese exporters by leveling the playing field with other countries, which will now face the same 25 percent tariff. Notably, major US steel suppliers such as Canada and Mexico, which were previously granted exemptions, will now be subject to the tariff.
• By contrast, Vietnamese aluminum exports to the US are more vulnerable. The tariff rate will increase by 15 percentage points, posing a greater challenge—especially since Vietnam exports smaller quantities of aluminum, and shipments had already declined in 2024 compared to the previous year, even before the tariff increase.
• However, the global steel and aluminum markets are likely to experience significant shifts due to these tariffs. If the US achieves Trump’s stated goal of expanding its domestic steel and aluminum industries, major US suppliers will seek new markets for their products, intensifying competition for Vietnamese exports.
2. Generally, as the Deputy Minister of Industry and Trade of Vietnam recently confirmed, Trump’s recent tariffs on imports from major trading partners will alter the flow of global trade, and Vietnam will not be exempt from the impact but Vietnam expects no major damage as the government is closely monitoring the global development for the following reasons:
(i) Vietnam has conveyed messages to the U.S. about Vietnam’s desire to maintain and build a harmonious, sustainable, and mutually beneficial economic and trade relationship;
(ii) Vietnam has no policies that seek to harm U.S. workers and its national security;
(iii) Vietnamese goods exported to the U.S. mainly compete with third countries, not directly with U.S. businesses in their domestic market. Vietnam exports provide U.S. consumers with access to affordable goods.
(iv) Vietnam pursues a free trade policy, with minimal tariff disparities for U.S. goods. In the future, this gap may narrow further as Vietnam aims to reduce Most Favored Nation tariffs on various products.
(v) The two countries have established a policy dialogue mechanism under the Vietnam–U.S. Trade and Investment Framework Agreement. Additionally, the government has proactively tasked ministries and sectors to review obstacles and develop solutions to address U.S. concerns.
(vi) Vietnam will facilitate U.S. investors’ participation in the development of key industries in Vietnam. Priority areas include major energy projects such as new energy, hydrogen, and nuclear power. This also lays the groundwork for increased imports of liquefied gas, fuels, machinery, equipment, and technology from the U.S.
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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.