Author: 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.

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.

Q1 – Cases of work permit exemption
There are a number of cases of work permit exemption under Labor Code 2019 and Government’s Decree 152/2020/NĐ-CP dated 30 December 2020 (Decree 152), as amended by Decree No. 70/2023/NĐ-CP dated 18 September 2023.
We would like to generally summarize as below. We are pleased to comment and advise on a case by case basis subject to the comprehensive review of your specific circumstance.
No. Circumstances of work permit exemption
Legal basis
1 Owner or capital contributor of a limited liability company with a capital contribution value of at least 3 billion dong Article 154.1 Labor Code 2019 and Article 7.1 Decree 152
2 Chairperson or a member of the Board of Directors of a joint-stock company a capital contribution value of at least 3 billion dong
Article 154.2 Labor Code 2019 and Article 7.2 Decree 152
3 Manager of a representative office, project or the person in charge of the operation of an international organizations or a foreign non-governmental organization in Vietnam
Article 154.3 Labor Code 2019
4 Entering Vietnam for a period of less than 03 months to do marketing of a service.
Article 154.4 Labor Code 2019
5 Entering Vietnam for a period of less than 03 months to a resolve complicated technical or technological issue which (i) affects or threatens to affect business operation and (ii) cannot be resolved by Vietnamese experts or any other foreign experts currently in Vietnam.
Article 154.5 Labor Code 2019
6 A foreign lawyer who has been granted a lawyer’s practicing certificate in Vietnam in accordance with the Law on Lawyers.
Article 154.6 Labor Code 2019
7 In one of the cases specified in an international treaty to which the Socialist Republic of Vietnam is a signatory.
Article 154.7 Labor Code 2019
8 Getting married with a Vietnamese citizen and wishes to reside in Vietnam.
Article 154.8 Labor Code 2019
9 An intra-company transferee within 11 sectors in the schedule of commitments in services between Vietnam and WTO, including: business services, communication services, construction services, distribution services, educational services, environmental services, financial services, health services, tourism services, recreational and cultural services, and transport services.
Article 7.3 Decree 152
10 Entering Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management and execution of programs and projects using official development assistance (ODA) in accordance with regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries.
Article 7.4 Decree 152
11 Granted with a communication and journalism practicing certificate in Vietnam by the Ministry of Foreign Affairs as per the law.
Article 7.5 Decree 152
12 Sent by a foreign competent authority or organization to Vietnam to teach or to work as a manager or executive director at an international school under management of a foreign diplomatic mission or an intergovernmental organization; or of a facility established under an agreement to which Vietnam is a signatory.
Article 7.6 Decree 152
13 A volunteer as specified as an unpaid expat who voluntarily works in Vietnam to implement an international treaty to which the Socialist Republic of Vietnam is a signatory with certification of a foreign diplomatic mission or international organization in Vietnam.
Article 3.2 and Article 7.7 Decree 152
14 Entering Vietnam to hold the position of a manager, executive, expert or technical worker for a period of work of less than 30 days and up to 3 times a year.
Article 7.8 Decree 152
15 Entering Vietnam to implement an international agreement to which a central or provincial authority is a signatory as per the law.
Article 7.9 Decree 152
16 Student studying at a foreign school or training institution which has a probation agreement with an agency, organization or enterprise in Vietnam; or a probationer or apprentice on a Vietnam sea-going ship.
Article 7.10 Decree 152
17 A relative of a member of foreign representative body in Vietnam
Article 7.11 Decree 152
18 Obtaining an official passport to work for a regulatory agency, political organization, or socio-political organization.
Article 7.12 Decree 152
19 Being in charge of establishing a Vietnam-based commercial presence.
Article 7.13 Decree 152
20 Certified by the Ministry of Education and Training as a expat entering Vietnam to do the following work:
a) Teaching, researching;
b) Working as a manager, executive director, principal, vice principal of an educational institution proposed to be established in Vietnam by a foreign diplomatic mission or an intergovernmental organization. Article 7.14 Decree 152

Q2 – How to get work permit exemption certificate in Vietnam
We would like to summarize the step by step procedure to obtain a work permit exemption certificate as below.
Step 1 Obtaining Approval of demand on employing foreign employees
– Must be done at least 15 days before the expat’s commencement date.
– The employer shall prepare the registration form for its demand on using expats and submit the same with provincial PC/ DOLISA.
Step 2 Preparing and submitting documents for applying for work permit exemption certificate Application preparation:
– Request form for confirming the foreign employee is eligible for work permit exemption (standard form);
– Original or certified copy of Vietnam health check; or certified translation of the legalized health check if issued abroad;
– Original or certified copy of Pre-Approval of Demand on using foreign employees (obtained in step 1), if required;
– Certified copy of valid passport;
– Proof of eligibility for work permit exemption (01 original or 01 certified copy. Documents issued in foreign countries should be legalized and translated into Vietnamese and in accordance with regulations of Vietnam).
Application submission:
– Must be submitted to MOLISA or DOLISA at least 10 days before the expat’s commencement date.
Step 3 Receiving Result – After 5 working days of receiving full valid documents, MOLISA/ DOLISA shall issue a work permit exemption certificate or reject to issue the work permit exemption certificate with express reasons of rejection.
– Validity of a work permit exemption certificate is up to 2 years.
Note: There exist a couple of circumstance where a work permit exemption certificate is not required, e.g. an expat getting married with a Vietnamese citizen and wishes to reside in Vietnam. Should it be the case, the employer’s sole obligation is to submit a notice to DOLISA on the candidate description at least 3 days before the expat’s commencement date.

Q3 – How to obtain work permit in Vietnam
1. Cases where work permit is required
Except for exempted cases, foreign nationals working in Vietnam in one of the following forms must apply for a Work Permit (Article 2.1 Decree 152):
• Performing a labor contract.
• Internal transfer within an enterprise.
• Performing various contracts or agreements related to economics, commerce, finance, banking, insurance, science and technology, culture, sports, education, vocational education, and health.
• Service providers under contract.
• Offering services.
• Working for foreign non-governmental organizations or international organizations permitted to operate in Vietnam.
• Volunteers.
• Individuals responsible for establishing commercial presence.
• Managers, executive directors, specialists, and technical workers.
• Participating in the implementation of packages and projects in Vietnam.
• Family members of foreign representatives in Vietnam allowed to work in Vietnam according to international agreements to which Vietnam is a member.
 Some notes related to work permits:
1. The maximum duration of a work permit is 2 years, and in case of extension, it can only be extended once for a maximum duration of 2 years. (Article 155 of the Labor Code)
2. The duration of the labor contract for expats in Vietnam shall not exceed the duration of the work permit. (Clause 2, Article 151 of the Labor Code)
3. Expats must present their work permit upon request by a competent state authority. (Clause 1, Article 153 of the Labor Code)
4. One of the important conditions for reissuance and extension of the work permit is that it must still be valid. (Articles 12 and 16 of Decree 152). If an employer wants to extend a work permit for a expat, they must carry out the extension procedures at least 5 days and no more than 45 days before the expiration of the work permit. (Clause 1, Article 16 of Decree 152).
2. Procedures for the applicable of a work permit
 Implementation Steps:
Step Party in charge Work to do Authority Statutory Timeline
1 The employer Prepare and submit an application using standard form Ministry of Labor, War Invalids and Social Affairs or the local Department of Labor, War Invalids and Social Affairs At least 15 working days before the expat is expected to start working for the employer
2 Applicant (i.e. the employer/the expat/authorized person) Prepare and submit a dossier including:
– Written request for the issuance of a work permit for expat under standard form
– Health certificate
– Criminal record check of the expat
– Approval of Demand on using expats
– Notarized copy of the expat’s passport and visa
– Document proving the position of manager, executive director, specialist, technical worker, or teacher
– Two photos, size 4×6 cm, white background, no glasses
– Other related documents of the expat based on the specific form of working (i.e. document from foreign enterprise sending the expat, contracts specified the working of the expat, service contract duly executed between Vietnamese party and foreign party, certificate of foreign organization permitted to operate under the laws of Vietnam) Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs. At least 15 working days before the expat is expected to start working for the employer
3 Ministry of Labor, War Invalids and Social Affairs or local Department of Labor, War Invalids and Social Affairs Review the dossier and issue the work permit (where applicable) Ministry of Labor, War Invalids and Social Affairs or local Department of Labor, War Invalids and Social Affairs.
Within 5 working days from the date of receipt of a complete work permit application dossier.
In case the dossier needs supplementation or modification, a written response stating the reasons must be provided.
 Fees: As prescribed in Circular No. 85/2019/TT-BTC dated November 29, 2019, by the Ministry of Finance guiding the fees and charges under the authority of the Provincial People’s Council.
Q4 – If a foreigner is investor, how to get investor visa in Vietnam. Please inform required documents and process.
Pursuant to the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, dated 14 June 2014 (as amended and supplemented from time to time), there are four (4) types of Investor Visa in Vietnam:
Types
Validity Requirements Benefits
1 Visa ĐT1 Maximum 5 years – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 100 billion or more or investing in business lines benefitting from investment incentives, in administrative divisions benefitting from investment incentives decided by the Government. – Apply for a Vietnam temporary card which is valid for up to 10 years,
– Sponsor their spouse/children to get Vietnam TT visa if their visa is symbolized as DT1, DT2 or DT3, and

– Extend the visa following this visa extension instruction.
2 Visa ĐT2 Maximum 5 years – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 50 billion to less than VND 100 billion or investing in business lines benefitting from investment incentives treatment decided by the Government.
3 Visa ĐT3 Maximum 3 years – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 3 billion to less than VND 50 billion.
4 Visa ĐT4 Maximum12 months – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of less than VND 3 billion. N/A
We would like to generally summarize the licensing process as below.
We are pleased to comment and advise on a case by case basis subject to the comprehensive review of your specific circumstance.
INVESTOR RESIDING IN VIETNAM
INVESTOR NOT RESIDING IN VIETNAM
1. Application preparation
– 01 notarized copy of business license and/or investment license
– Written introduction of legal seal and signature of competent persons of the organization (NA16)
– 01 notarized copy of Investment Certification
– Original copy of a valid passport and a valid visa/temporary residence card
– Application form for Vietnamese visa and temporary residence extension.
1. Application preparation
– Official Request for examining and approving foreigners entering the country (form NA2 as defined in Circular No. 04/2015/TT-BCA dated 5 January 2015.
– 01 notarized copy of business license and/or investment license
– Written introduction of legal seal and signature of competent persons of the organization (NA16)
– 01 copy of the Foreign Investor’s passport
– 01 notarized copy of Investment Certification
2. Application submission
The documents then will be sent to one of the following addresses:
– Hanoi Immigration Authority: 44-46 Tran Phu Street, Ba Dinh District, Hanoi.
– Ho Chi Minh City Immigration Authority: 333-335-337 Nguyen Trai Street, District 1, HCMC
After that, the Investor shall receive a note on when to receive the result.
2. Application submission
The documents then will be sent to one of the following addresses:
– Hanoi Immigration Authority: 44-46 Tran Phu Street, Ba Dinh District, Hanoi.
– Ho Chi Minh City Immigration Authority: 333-335-337 Nguyen Trai Street, District 1, HCMC
The Investors’ Company shall scan the documents and send them to the foreign investors. The Investors then will need:
– a valid original passport with at least 2 blank pages.
– 02 4×6 images of themselves
– Copies of all the required documents as mentioned
– Visa Application Form
After that, so as to earn the Investor Visa, depending on the foreign investors, the documents can be turned in at:
– Embassy/Consulate of the Socialist Republic of Vietnam, or
– Registered Vietnam Entry border gate
The process would take place for approximately 5 working days since the Investors’ enterprise submits all the required documents.
Q5 – What to do after the issuance of work permit?
Employer and Expat to enter into Vietnam-law labor contract.
Term of labor contract must be in line with the term of the issued work permit.
The employer shall send the signed lab or contract to the competent authority that issued that work permit. The labor contract shall be the original copy or a certified true copy. Penalty of up to 6M VND (equivalent to US$ 250) shall apply in case of failure to follow this obligation.
Q6 – Is there an indefinite-term labor contract for expat employees?
Local employees: First fixed-term labor contract of up to 36 months -> Second fixed-term labor contract of up to 36 months -> Indefinite-term labor contract.
Expat employees: Multiple fixed term labor contracts. Term of labor contract must be in line with term of issued work permit.
Q7 – If the foreign investor is retired (> 60 years old), can he/she legally live in Vietnam by investor visa?
Yes.
The term ‘foreign investor’ as defined in clause 19 Article 3 of the Law on Investment dated 17 June 2020, are individual who are holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
As far as our awareness, there are no statutory restriction on age of foreign investor. As such, a foreign individual investor who is beyond the statutory retirement age can legally reside in Vietnam provided that he/she manages to obtain (i) a validly effective investor visa or (ii) a validly effective temporary resident card (TRC) marked with symbol ‘ĐT’.
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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.

Le 4 février 2025, le dernier projet de loi amendée sur la faillite (« le Projet de loi ») a été publié par la Cour populaire suprême (« CPS ») pour consultation publique. Le Projet de loi est censé remplacer la loi actuelle sur la faillite n°51/2014/QH13 du 19 juin 2024 (« Loi sur la faillite de 2014 ») et introduit plusieurs changements significatifs qui pourraient impacter les procédures de faillite, se basant sur la mise en œuvre de la Loi sur la faillite de 2014 depuis son entrée en vigueur. La période initiale de consultation publique est établie jusqu’au 25 février 2025, et la date pour la soumission finale du projet est prévue pour fin mai 2025. S’agissant de la date d’entrée en vigueur du Projet de loi amendée, elle est prévue en 2026.
Les points essentiels du Projet de loi sont les suivants :
1. Les principes fondamentaux de la Loi sur la faillite
Les principes fondamentaux de la Loi sur la faillite ont été ajoutés dans le Projet de loi. Ces principes sont (i) la transparence dans les procédures de redressement et de déclaration de faillite, (ii) l’équité dans la répartition des actifs liés à la faillite, et (iii) la maximisation de la valeur des actifs liés à la faillite.
2. Les conditions pour l’insolvabilité :
Deux scénarios sont prévus par le Projet de loi en ce qui concerne les entités insolvables. Une entité insolvable, selon le Projet de loi, peut-être :
• Scénario 1 (récemment proposé) : les entités qui ne sont pas en mesure de payer des dettes arrivées à échéance depuis 6 mois, sauf en cas de force majeur ou d’obstacles objectifs.
• Scénario 2 (identique à la Loi sur la faillite de 2014) : les entités qui ne sont pas en mesure de payer des dettes arrivées à échéance depuis 3 mois.
Conformément au rapport annexé au Projet de loi (« le Rapport »), la période de 3 mois, initialement prévu dans la Loi sur la faillite de 2014 est considéré comme trop courte au regard du cycle de vie d’une entreprise, et la période de six mois est plus appropriée. Par conséquent, une nouvelle période de six mois est proposée par la CPS pour consultation publique.
3. Les tribunaux spécialisés en matière de faillite
Conformément au Projet de loi et au Rapport, pour se conformer à la nouvelle Loi sur l’organisation des tribunaux populaires datant de 2024, les tribunaux spécialisés sont chargés de traiter des affaires de faillite, et les juges doivent se concentrer sur l’accompagnement des parties dans la collecte de preuves. Cela représente un changement significatif par rapport à la Loi sur la faillite de 2014, qui désignent compétents en la matière des tribunaux de district et provinciaux. En vertu du Projet de loi, les tribunaux spécialisés seront chargés de traiter les affaires de faillite, tandis que les hautes cours populaires examineront les recours contre les décisions d’ouverture de la procédure de faillite et les déclarations de faillite des tribunaux spécialisés. La CPS examinera les recours contre les décisions des hautes cours populaires. Également, selon le Projet de loi, certaines tâches liées aux procédures de faillite, telles que la signification des documents, le dépôt des demandes, le paiement des frais, les réunions et les assemblées de créanciers, sont censées être gérées via une plateforme en ligne. Cette plateforme devrait être développée par la CPS dans un futur proche.
4. Les mesures de préservation des actifs
Le Projet de loi prévoit trois nouvelles mesures de préservation des actifs :
i. la suspension temporaire des paiements de dettes incompatibles avec le plan de redressement ;
ii. la cessation temporaire des paiements aux fonds de retraite et de décès ; et,
iii. la suspension temporaire des déplacements à l’étranger pour les représentants légaux.
5. Les procédures de médiation
La procédure de médiation est introduite par le Projet de loi en tant que nouvelle procédure en matière de redressement et de faillite. Elle prévoit que le liquidateur est chargé de mener la médiation sur le plan de redressement, les litiges et les plaintes relatifs aux actifs des entreprises et des coopératives, et il doit rendre compte des résultats de la médiation au juge.
6. Les nouvelles procédures de redressement
Dans la Loi sur la faillite de 2014, le redressement est prévu dans les procédures de faillite et est applicable aux entités insolvables.
Cependant, le Projet de loi introduit des procédures distinctes pour le redressement, les rendant applicables pour les entités susceptibles d’être insolvables. Il s’agit des entreprises qui, si elles s’acquittent de leurs dettes arrivées à échéance dans les 6 prochains mois ou des dettes déjà échues mais depuis moins de 6 mois à compter de la date de dépôt de la demande d’ouverture de procédures de redressement, verraient leurs activités gravement affectées.
Les procédures de redressement sont envisagées, généralement, de la manière suivante :
1ère procédure : un représentant autorisé soumet une demande auprès d’un tribunal spécialisé.
2ème procédure : dans les 3 jours suivant la date de réception de la demande d’ouverture des procédures de redressement, le président du tribunal spécialisé doit assigner un juge ou un panel de trois juges pour examiner la demande d’ouverture des procédures de redressement.
3ème procédure : dans les 3 jours suivants la date d’assignation, le juge désigné doit examiner la demande afin de déterminer si la prochaine procédure peut être accomplie ou si d’autres actions doivent être prises (par exemple : la modification de la demande, le transfert de la demande vers un autre tribunal spécialisé, le rejet de la demande).
4ème procédure : les négociations entre les entités à risque d’insolvabilité et les créanciers. Le résultat des négociations affectera directement la gestion du redressement par le tribunal spécialisé (par exemple, continuer la procédure ou non).
5ème procédure : le tribunal spécialisé accepte la demande et met en action la procédure de redressement.
6ème procédure : dans les 2 ou 3 mois suivant la date de mise en action, un plan de redressement doit être développé par toutes les parties concernées et ce plan doit être approuvé par l’assemblée des créanciers et mis en œuvre selon le scénario suivant :
i. Scénario 1 : exécution dans les 5 jours à compter de la date d’approbation par l’assemblée des créanciers.
ii. Scénario 2 : exécution selon le calendrier fixé par l’assemblée des créanciers. Dans l’hypothèse où les créanciers ne sont pas mis d’accord sur le calendrier, le plan de redressement devra être mis en œuvre dans les 3 jours à compter de la date d’approbation par l’assemblée des créanciers.
7. La demande de procédure de faillite
Selon le Projet de loi, les créanciers garantis peuvent maintenant déposer des demandes de faillite si les actifs garantis n’existent plus.
8. La faillite étrangère
Le Projet de loi prévoit que les tribunaux vietnamiens peuvent assister dans les procédures de faillite étrangère, par exemple en vérifiant, en faisant l’inventaire, en évaluant, en liquidant et en récupérant les actifs des entreprises concernées par ces procédures. De plus, des dispositions détaillées pour la reconnaissance et l’exécution des jugements de faillite rendus par des tribunaux étrangers ont été introduites. Le Projet inclut des dispositions notables sur l’autorité des tribunaux vietnamiens ainsi que dans certains cas où les décisions de faillite des tribunaux étrangers ne seront pas reconnues au Vietnam.
9. Les dispositions transitoires
Conformément à l’article 181 du Projet de loi sur la faillite, qui sert de disposition transitoire pour le traitement des affaires de faillite en cours, toute procédure de faillite engagée sous la Loi sur la faillite de 2014 mais n’ayant pas encore abouti à une décision de faillite par un tribunal compétent sera soumise à la nouvelle loi sur la faillite.
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Si vous avez des questions, n’hésitez pas à contacter le Dr. Oliver Massmann à l’adresse mail suivante : omassmann@duanemorris.com. Le Dr. Oliver Massmann est le directeur général de Duane Morris Vietnam LLC.

Am 4. Februar 2025 wurde der neueste Entwurf des geänderten Konkursgesetzes („Entwurf“) vom Obersten Volksgerichtshof („SPC“) zur öffentlichen Stellungnahme veröffentlicht. Der Entwurf soll das geltende Konkursgesetz Nr. 51/2014/QH13 vom 19. Juni 2014 („Konkursgesetz 2014“) ersetzen und führt mehrere wesentliche Änderungen ein, die sich auf die Konkursverfahren auswirken können, die auf der Umsetzung des Konkursgesetzes 2014 ab seinem Inkrafttreten bis heute basieren. Die erste Frist für öffentliche Stellungnahmen läuft bis zum 25. Februar 2025 und der voraussichtliche Termin für die Vorlage des endgültigen Entwurfs ist COB Mai 2025, während das geänderte Konkursgesetz voraussichtlich 2026 in Kraft treten wird.
Die wichtigsten Punkte des Entwurfs sind folgende:
1. Grundlegende Prinzipien für das Konkursrecht
Der Entwurf wurde um Grundsätze für das Konkursrecht ergänzt. Es handelt sich um folgende Grundsätze: (i) Transparenz bei den Sanierungsverfahren und der Konkurserklärung; (ii) Fairness bei der Aufteilung der Konkursmasse; und (iii) Maximierung des Wertes der Konkursmasse.
2. Bedingungen für die Insolvenz:
Der Entwurf sieht zwei Szenarien für insolvente Unternehmen vor. Demnach sind insolvente Unternehmen nach dem Entwurf entweder
Szenario 1 (neu vorgeschlagenes Szenario): Unternehmen, die nicht in der Lage sind, fällige Schulden für sechs (06) Monate ab dem Fälligkeitsdatum zu bezahlen, außer in Fällen höherer Gewalt oder objektiver Hindernisse.
Szenario 2 (wie im Konkursgesetz 2014): Unternehmen, die drei (03) Monate ab dem Fälligkeitsdatum nicht in der Lage sind, fällige Schulden zu begleichen.
Laut dem dem Entwurf beigefügten Bericht („Bericht“) wird der Zeitraum von 3 Monaten des Konkursgesetzes 2014 als zu kurz für den Lebenszyklus eines Unternehmens angesehen, und der Zeitraum von 6 Monaten sollte besser geeignet sein. Daher wird vom ASP eine neue Frist von 6 Monaten vorgeschlagen, zu der die Öffentlichkeit Stellung nehmen kann.
3. Spezialisierte Konkursgerichte
Dem Entwurf und dem Bericht zufolge werden gemäß dem neuen Gesetz über die Organisation des Volksgerichts aus dem Jahr 2024 alle Konkursfälle von spezialisierten Gerichten bearbeitet, und die Richter werden sich darauf konzentrieren, die Parteien bei der Beweiserhebung zu unterstützen. Dies ist eine wesentliche Änderung gegenüber dem geltenden Konkursgesetz von 2014, das Gerichte auf Bezirks- oder Provinzebene für die Bearbeitung von Konkursfällen vorsieht. Dem Entwurf zufolge werden die Fachgerichte mit der Bearbeitung von Fällen betraut, während (i) das Oberste Volksgericht den Antrag gegen die Entscheidungen über (i1) die Einleitung des Konkursverfahrens und (i2) die Konkurserklärung der Fachgerichte prüft; und (ii) das SPC den Antrag gegen die Entscheidungen der Obersten Volksgerichte prüft. Darüber hinaus sieht der Entwurf vor, dass relevante Aufgaben im Zusammenhang mit Konkursverfahren wie die Zustellung von Dokumenten, die Einreichung von Anträgen, die Zahlung von Gebühren, Sitzungen und Gläubigerversammlungen über eine Online-Plattform abgewickelt werden sollen. Es ist zu erwarten, dass eine solche Plattform in naher Zukunft vom SPC entwickelt wird.
4. Maßnahmen zur Vermögenserhaltung
Der Entwurf sieht drei (03) neue Maßnahmen zur Vermögenserhaltung vor:
(i) vorübergehende Aussetzung von Schuldenzahlungen, die nicht mit dem Sanierungsplan vereinbar sind;
(ii) vorübergehende Einstellung von Zahlungen an Renten- und Sterbekassen; und
(iii) die vorübergehende Aussetzung von Auslandsreisen für gesetzliche Vertreter.
5. Mediationsverfahren
Das Mediationsverfahren wird in dem Entwurf als neues Verfahren für das Sanierungs-/Konkursverfahren eingeführt. Demnach ist der Konkursverwalter dafür verantwortlich, über den Sanierungsplan, Streitigkeiten und Beschwerden im Zusammenhang mit den Vermögenswerten von Unternehmen und Genossenschaften zu vermitteln und dem Richter die Ergebnisse der Vermittlung mitzuteilen.
6. Neue Sanierungsverfahren
Nach dem aktuellen Konkursgesetz 2014 ist die Sanierung in das Konkursverfahren integriert und gilt für insolvente Unternehmen.
Der Entwurf führt jedoch gesonderte Rehabilitationsverfahren ein, die für insolvenzgefährdete Unternehmen zur Verfügung stehen, d.h. für Unternehmen, deren Geschäftsbetrieb stark beeinträchtigt wird, wenn sie fällige Schulden innerhalb der nächsten sechs Monate oder bereits fällige Schulden, jedoch nicht mehr als sechs Monate ab dem Datum des Antrags auf Einleitung eines Rehabilitationsverfahrens, begleichen müssen.
Das Ablauf des Sanierungsverfahrens ist im Allgemeinen wie folgt geregelt:
1. Schritt. Bevollmächtigter reicht Antrag beim Fachgericht ein.
2. Schritt. Innerhalb von drei Arbeitstagen nach Eingang des Antrags auf Eröffnung des Rehabilitationsverfahrens beauftragt der Vorsitzende des Fachgerichts einen Richter oder einen aus drei Richtern bestehenden Spruchkörper mit der Entscheidung über den Antrag auf Eröffnung des Rehabilitationsverfahrens.
3. Schritt. Innerhalb von drei Arbeitstagen nach dem Zuweisungsdatum prüft der zugewiesene Richter den Antrag, um festzustellen, ob das nächste Verfahren durchgeführt werden kann oder ob andere Maßnahmen seitens der betroffenen Parteien ergriffen werden müssen (d. h. Änderung des Antrags, Verweisung des Antrags an ein anderes Fachgericht, Rückgabe des Antrags).
4. Schritt. Verhandlung zwischen dem von Insolvenz bedrohten Unternehmen und seinen Gläubigern. Das Ergebnis der Verhandlung wirkt sich unmittelbar auf die Behandlung des Sanierungsverfahrens durch das Fachgericht aus (d.h. Fortsetzung oder Aussetzung des Verfahrens).
5. Schritt. Das Fachgericht nimmt den Antrag an und leitet das Rehabilitationsverfahren ein.
6. Schritt. Innerhalb von 2 oder 3 Monaten nach Beginn des Verfahrens muss von allen Beteiligten ein Sanierungsplan ausgearbeitet werden, der von der Gläubigerversammlung gebilligt und nach dem folgenden Szenario durchgeführt wird:
Szenario 1: Innerhalb von fünf (5) Jahren ab dem Datum der Genehmigung durch die Gläubigerversammlung.
Szenario 2: Innerhalb des in der Gläubigerversammlung festgelegten Zeitrahmens. Falls sich die Gläubigerversammlung nicht auf einen Zeitplan einigen konnte, wird der Sanierungsplan innerhalb von drei (3) Jahren ab dem Datum der Genehmigung durch die Gläubigerversammlung durchgeführt.
7. Antrag auf Konkursverfahren
Dem Entwurf zufolge können gesicherte Gläubiger nun einen Konkursantrag stellen, wenn keine gesicherten Vermögenswerte mehr vorhanden sind.
8. Ausländischer Konkurs
Der Entwurf sieht vor, dass vietnamesische Gerichte bei ausländischen Konkursverfahren Unterstützung leisten können, z.B. bei der Überprüfung, Inventarisierung, Bewertung, Liquidierung und Wiedererlangung der Vermögenswerte von Unternehmen, die für ausländische Konkursverfahren relevant sind. Darüber hinaus enthält der Entwurf detaillierte Bestimmungen zur Anerkennung und Vollstreckung ausländischer Gerichtsurteile zu Konkursen. Der Entwurf enthält bemerkenswerte Bestimmungen wie die Zuständigkeit der Gerichte in Vietnam und bestimmte Fälle, in denen Konkursentscheidungen ausländischer Gerichte in Vietnam nicht anerkannt werden.
9. Übergangsbestimmungen
Gemäß Artikel 181 des Entwurfs des Konkursgesetzes, der als Übergangsbestimmung für die Behandlung laufender Konkursverfahren dient, unterliegen alle Konkursverfahren, die nach dem Konkursgesetz 2014 eingeleitet wurden, aber noch nicht das Stadium der Ausstellung einer Konkursentscheidung durch ein zuständiges Gericht erreicht haben, dem neuen Konkursgesetz.
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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.

On 4 February 2025, the latest Draft of the Amended Law on Bankruptcy (“Draft”) was published by the People’s Supreme Court (“SPC”) for public comments. The Draft is prepared to supersede the current Law on Law on Bankruptcy No. 51/2014/QH13 dated 19 June 2014 (“Bankruptcy Law 2014”) and introduces several significant changes that may impact the bankruptcy procedures based on the implementation of the Bankruptcy Law 2014 from its effective date until now. The initial public comments period is set to last until 25 February 2025 and the expected date for submission of the finalized draft is COB May 2025 while the expected effective date for the amended law on bankruptcy is 2026.

The key highlights of the Draft are as follows:

1. Fundamental principles for the law on bankruptcy
Fundamental of the law on bankruptcy was added to the Draft. The principles are (i) transparency in rehabilitation procedures and declaration of bankruptcy; (ii) fairness in dividing bankruptcy assets; and (iii) maximization of the value of bankruptcy assets.

2. Conditions for Insolvency:
Two scenarios are set out in the Draft with regarding to insolvent entities. Accordingly, an insolvent entities, under the Draft, can be either
Scenario 1 (newly proposed scenario): Entities being unable to pay due debt for six (06) months from the due date, except for cases of force majeure or objective obstacles.
Scenario 2 (same as the Bankruptcy Law 2014): Entities being unable to pay due debt for three (03) months from the due date.
According to the report attached to the Draft (“Report”), the period of 3 months of the Bankruptcy Law 2014 is considered to be too short for a life cycle of an enterprise and the period of 6 months should be more suitable. Thus, a new period of 6 months is proposed by the SPC for further comments by the public.

3. Specialized Bankruptcy Courts
According to the Draft and the Report, to comply with the new Law on Organization of People’s Court dated 2024, specialized courts are regulated to handle all bankruptcy cases, and judges will focus on guiding parties in evidence collection. This is a significant change from the current Bankruptcy Law 2014, which designates district or provincial-level courts to manage bankruptcy cases. According to the Draft, the specialized courts will be tasked with handling cases while (i) people’s high court will review the request against the decisions on (i1) commencement of bankruptcy procedures and (i2) declaration of bankruptcy of the specialized courts; and (ii) SPC will review the request against the decisions of the people’s high courts. Further, according to the Draft, relevant tasks regarding bankruptcy procedures such as serving documents, submitting applications, paying fees, meetings and creditors’ meeting are regulated to be handled via online platform. Such platform is expected to be developed by the SPC in the near future.

4. Asset Preservation Measures
Three (03) new measures for assets preservation measures are provided in the Draft as follows:
(i) temporary suspension of debt payments inconsistent with the rehabilitation plan;
(ii) temporary cessation of payments to pension and death funds; and
(iii) temporary suspension of foreign travel for legal representatives.

5. Mediation Procedures
Mediation procedure is introduced in the Draft as a new procedure for the rehabilitation/bankruptcy procedures. Accordingly, the liquidator is responsible for mediating on the rehabilitation plan, disputes, and complaints related to the assets of enterprises and cooperatives, and reporting the mediation results to the judge.

6. New Rehabilitation Procedures
Under the current Bankruptcy Law 2014, rehabilitation is integrated into the bankruptcy proceedings and is applicable to insolvent entities.
However, the Draft introduces separate procedures for rehabilitation, making them available to entities at risk of being insolvent – businesses that, if it undertakes the payment of due debts within the next 06 months or debts that have already become due but not more than 06 months from the date of filing a request to initiate rehabilitation procedures, will severely affect its business operations.
The procedures for rehabilitation are set out, generally, as below:
1st Procedure. Authorized representative to submit an application to the specialized court.
2nd Procedure. Within 03 working days from the date of receipt of the request to open rehabilitation procedures, the Chief Justice of the specialized court shall assign a Judge or a Panel of Judges consisting of 03 Judges to resolve the request to open rehabilitation procedures.
3rd Procedure. Within 03 working days from the assignment date, the assigned Judge shall review the application to determine whether the next procedure can be carried out or other actions from relevant parties (i.e. amendment of the application, transfer of application to another specialized court, return of application) must be taken.
4th Procedure. Negotiation between the entities at risk of being insolvent and its creditors. The result of the negotiation will directly affect the handling of rehabilitation of the specialized court (i.e. to continue handling or to suspend the case).
5th Procedure. Specialized Court to accept the application and to commence the rehabilitation procedure.
6th Procedure. Within 2 or 3 months from the commencement date, a plan for rehabilitation must be developed by all relevant parties and such a plan must be approved in the creditors’ meeting and carried out according to the following scenario:
Scenario 1: Within five (5) years from the approval date of the creditors’ meeting
Scenario 2: Within the timeline as set out in the creditors’ meeting. In case the creditors’ meeting could not agree on a timeline, the plan for rehabilitation will be carried out within three (3) years from approval date of the creditors’ meeting.

7. Application for bankruptcy procedures
According to the Draft, secured creditors can now file bankruptcy requests if secured assets no longer exist.

8. Foreign Bankruptcy
Under the Draft, Vietnamese courts can assist with foreign bankruptcy proceedings, e.g., verify, inventory, value, liquidate and recover the assets of enterprises relevant to foreign bankruptcy proceedings. Further, detailed provisions for recognizing and enforcing foreign courts’ judgments on bankruptcy are introduced in the Draft. The Draft introduces notable provisions such as authority of courts in Vietnam and certain cases where bankruptcy decisions of foreign courts are not recognized in Vietnam.

9. Transitional provisions
According to Article 181 of the draft Bankruptcy Law, which serves as a transitional provision for handling ongoing bankruptcy cases, any bankruptcy case initiated under the Bankruptcy Law 2014 but not yet reaching the stage of issuance of a bankruptcy decision by a competent court will be subject to the new law on bankruptcy.

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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.

Dr. Oliver Massmann is a registered International Arbitrator and holding a German judge degree. He has worked as an arbitrator in international arbitration and mediation centers in Asia and Europe for over 25 years.
With more than two decades of practicing law as an International Arbitrator, Dr. Oliver Massmann has advised for wide variety of multinational businesses from all parts of the world, counseling many leading foreign and local investors in Vietnam.
1. Why arbitration makes sense
This article shows foreign businesses the necessity of dispute resolution clauses quite plainly and provides assistance in choosing appropriate alternatives to the Vietnamese civil courts.
Disadvantages of Vietnamese courts
Most contracts in North America and Europe specify in detail all of the parties’ obligations and will be closely watched for the effectiveness of its clauses. The contract’s legal enforceability, however, is widely regarded as a given.
On the other hand, contracts between foreign investors and Vietnamese entities or with a reference to Vietnam that establishes Vietnamese jurisdiction should always specify the question “what institution will decide any disputes and in which language and what national law is to be applied?”
In this circumstance, without a dispute resolution clause, Vietnamese courts will have jurisdiction over a possible dispute. However, interested parties must consider the particularities of Vietnamese courts in comparison to Western rule-of-law courts. According to Transparency International, the risk of corrupted decisions remains, and almost one-fifth of surveyed Vietnamese people (aged 18 – 65) believe that judges are involved in corruption (Global Corruption Barometer 2017). Many businesses therefore avoid Vietnamese courts, as the existence of bribes deters them (USAID’s Vietnam Provincial Competitiveness Index 2021). Besides the unfortunately persistent risk of corruption, the Vietnamese judiciary, despite improvement efforts, continues to struggle with additional problems: Many Vietnamese judges lack adequate legal training and are appointed through personal contacts with party leaders or based on their political views, as a 2012 study by the United States Dept. of State revealed. Extremely low judicial salaries and short office terms of five years that must be renewed through a new appointment amplify the judiciary’s dependence on the Communist Party’s sympathy and on bribes. Furthermore, there is the systemic problem that rule-of-law and a single-party-system are mutually exclusive, due to the practical lack of separation of powers (Andersson 2012). The term rule-of-law in its Vietnamese translation means rules of the state, therefore rules of the Communist Party running the single-party state. Considering these factors, putting potential disputes into the hands of the Vietnamese judiciary is not advisable, because the possibility of corrupted decisions and political pressure or incompetent judges must still be taken into account. It is also important to note that, similar to other countries with an independent court system and a strong emphasis on the rule-of-law, companies may prefer to see delicate affairs arbitrated, rather than see their commercial disputes become a matter of public record.
Advantages of arbitration
The right arbitration center provides independent decisions and professional competence. It is usually possible to select a pool of arbitrators trusted by both parties in the clause, which might lead to a wider acceptance of a possible arbitrational decision. It is important to consider arbitrator candidates based on their expertise in the relevant business field. Most arbitration centers provide renowned experts for certain fields of work.
2. Which arbitration court is right?
Selecting an appropriate arbitration venue is a key component in designing any dispute resolution clause A company may decide upon a Vietnamese arbitrational court, for instance the Vietnamese International Arbitration Centre (VIAC), or an offshore arbitrational court, such as the Singapore International Arbitration Centre (SIAC). To decide which venue is the best fit, the following factors must be carefully considered:
Project size
For major projects with an investment sum of more than roughly US$ 5 million, choosing an international arbitration court is generally recommended. At this level, the problem of cost pressure (see infra) is likely to be neglected. An international tribunal’s decision is also more likely to be accepted by the parties, as a lack of competence on the arbitrator’s part and any (remote) possibility of political pressure on the arbitrators is therefore eliminated.
Location of seizable assets – enforcement risks of foreign arbitrational awards
Another major factor is the location of the contractual partner’s assets that may be seized when enforcing a possible arbitrational award. If the assets are mainly located in Vietnam, a foreign arbitrational court’s decision must be enforced there – a tougher task than enforcing a domestic award. Indeed, Vietnam became a member of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (NYC) in 1995, and therefore foreign arbitrational awards of the 149 member states can generally be enforced. However, there is a risk of a substantial delay in completing enforcement, as an application to the Ministry of Justice and further explanations and a court
date leading to an appealable decision are necessary for enforcement. Furthermore, the competent Vietnamese enforcement court may reject the arbitrational award. According to Article V of the NYC, this is possible in the case of an arbitrational award’s violation of domestic laws or public orders. The Vietnamese Civil Code refers to this as the “principles of Vietnamese laws”, and the Vietnamese judiciary has made broad use of it (Tam Shu Ching et al. 2012). With more than 50% of domestic verdicts being set aside, it shows that the courts in Vietnam have somehow not been friendly with and not positively supported the arbitration tribunal. In one case, for example, rejecting the arbitrational award of a foreign company was based on a missing construction permit (Tyco Services Singapore Pte Ltd v Leighton Contractors Vietnam).
Pressure of cost
One should take into consideration that the costs of on- and offshore arbitration differ widely. For a value in dispute of approximately US$4 million, for instance, the cost of arbitration at the VIAC is roughly $62,000 if one arbitrator is assigned to the case, as opposed to about U$117,000 at the SIAC. Not only are the costs for an offshore arbitration substantially higher, but that option can create additional costs for parties, such as travel expenses for parties, witnesses and lawyers. Furthermore, the hourly rates of local lawyers at the international arbitration court are usually higher than the rates of Vietnamese lawyers, (Shouzhi et al. 2009). The same applies to expert’s opinions and other experts. The risk of expensive litigation can put less liquid companies under pressure to accept even unfavorable settlements. Therefore, the cheaper onshore arbitration can often be more beneficial to companies with fewer financial resources.
Complexity and specialty of the subject matter of the contract and potential issue
Vietnamese arbitration courts, such as VIAC, have a high legal competence. But domestic arbitrational courts cannot yet provide internationally recognized experts on the same level as foreign tribunals. The main reason for this is the comparatively low fee of an arbitrator in Vietnam. Decisions regarding business transactions of high complexity or contracts focusing on highly specialized fields are more likely to be mutually accepted if the parties choose a more expensive foreign arbitrator with special expertise.
(Hidden) state-owned enterprises
When state-owned enterprises are involved, an offshore arbitration clause should be used. This ensures that the arbitrator handling the case is free of any authoritarian exertion of influence by the state-owned party. In theory, the follow-up problem of the enforcement of judgment in Vietnam remains, but the current development shows that the positive award strengthens a company’s negotiating position with the business partner. The same applies to hidden state-owned enterprises – companies that are de facto influenced by the government, for instance those that share ownership through state-owned enterprises’ subsidiaries. The contractual partner’s status as “state-owned” should always be considered very carefully.
Special case: Intellectual property
In special cases, where intellectual property is concerned, the contracts must ensure that no official interim measures are cut off by the arbitration clause. Arbitration courts are also able to issue interim measures. But as the case arises, an opening clause should be considered where Vietnamese courts or authorities such as the Market Management Bureau normally provide more effective interim relief.
Choice of jurisdiction
Vietnamese jurisdiction Onshore Arbitration at Offshore Arbitration
Vietnam International Arbitration Center (VIAC)
generally advised against project size under US$5M project size over US$5M
Only in special cases regarding seizable assets of the contractual seizable assets of the contractual
intellectual property, an opening clause partner are located in Vietnam partner are located abroad
can be considered to be implemented less complex legal questions more complex legal questions
into a dispute resolution clause, e.g. making applicable interim contract affects more general contract affects legal fields measures/injunctions through authorities legal fields, e.g. purchase law that require a decision from like the Market Management Bureau highly specialized legal professionals

contractual partner is not a contractual partner is
(hidden) state-owned enterprise a (hidden) state-owned enterprise

own financial strength is smaller, own financial strength is
cost pressure can be a thread higher, cost pressure is
not a thread
no dispute resolution clause necessary dispute resolution clause necessary! dispute resolution clause necessary!
3. How it is done
Vietnamese law allows dispute resolution clauses in commercial contracts explicitly through the Law 54/2010/QH12 on Commercial Arbitration, (“LCA”). An effective dispute resolution clause withdraws Vietnamese courts’ jurisdiction of the particular case and establishes the appointed arbitral tribunal’s jurisdiction. The LCA follows the UNCITRAL model law as an international standard for procedural rules, and the lawmakers’ intention is indeed arbitration-friendly. Once the decision is made regarding whether and where an arbitration tribunal should be used for disputes arising from the contract, the following points should be cleared:
• Applicable law: The applicable law can be chosen freely in cases with a foreign element according to Article 14 Nr. 2 LCA. The chosen applicable law should also influence the selection of arbitrators, as they should have a legal background in the particular national law.
• Court’s language: This can be freely selected according to Article 10 Nr. 2 LCA.
• Number of arbitrators: Several arbitrators might give a more balanced-out decision as a collegial formation. Arbitration costs will however rise accordingly.
• Appointing a particular arbitrator: This is important in cases that require experts:
The dispute resolution clause becomes effective if the requirements of Articles 16, 18 and 19 LCA are met, e.g. through a written agreement.
Making use of the dispute settlement mechanism under the EU – Vietnam Investment Protection Agreement (“EVIPA”) and the Comprehensive and Progressive Trans-Pacific Partnership (“CPTPP”)
For any investment-related dispute (i.e. expropriation without compensation, investment discrimination), an investor of a party is allowed to bring such dispute against the Government of the other party to the Investment Court for settlement. In case either of the disputing parties disagrees with the decision of the Tribunal, it can appeal it to the Appeal Tribunal. While this is different from the common arbitration proceeding, it is quite similar to the 2-level dispute settlement mechanism in the WTO (Panel and Appellate Body). We believe that this mechanism could save time and cost for the whole proceedings. The final arbitration award is binding and enforceable without the local courts’ review of its validity. The Government of Vietnam has to fully implement this commitment within five years from the entry into force of the EVIPA. For your information, as of February 2023, there have been 11 out of 27 EU members having ratified the EVIPA. It means we need to wait until the remaining 16 EU members have ratified the agreement for it to take effect and trigger the deadline for direct enforcement of arbitral award by the Government of Vietnam.
While the CPTPP allows the same mechanism for an investor of a party to challenge the Government of the other party, it does not include the 5-year transitional period as in the EVIPA. In other words, the enforcement of arbitral award under the CPTPP would follow the NYC rules. However, we believe that the Government of Vietnam will soon revise the current local arbitration regulations to ensure its commitment under the EVIPA. Investors under the CPTPP could then take advantage of such improvement.
We believe that the investor-to-state dispute settlement (“ISDS”) under both the EVIPA and the CPTPP brings the highest level of enforceability and bankability when they are well designed in commercial contracts in Vietnam.
Conclusion
The question of whether or not to have a dispute resolution clause in contracts in Vietnam can be answered with a clear yes. However, deciding on the right place for dispute resolution can involve much complexity, as a number of factors must be thoroughly taken into account.
In addition, investors do not need to wait until the entry into force of the EVIPA or the amendment of local arbitration laws to benefit from the ISDS mechanism. We can assist you to include the ISDS clause in your commercial contracts now so that your contracts have the highest level of enforceability and bankability. Please contact us for more details on how we can include it per the contact details right below.
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Dr. Oliver Massmann is a Partner of U.S.-based international law firm Duane Morris LLP. He is the General Director of Duane Morris Vietnam LLC. Dr. Oliver Massmann practices in the area of corporate international taxation and on power/water projects, matters related to oil and gas companies and telecoms, privatization and equitization, M&A, and general commercial matters for multinational clients in relation to investment and doing business in Vietnam.
Dr. Oliver Massmann can be reached at omassmann@duanemorris.com;

Chancen und Herausforderungen
Vietnam hat sich in den letzten Jahren als einer der dynamischsten Wirtschaftsräume Südostasiens etabliert. Mit einem starken Wirtschaftswachstum, einer wachsenden Mittelschicht und einer zunehmend investorenfreundlichen Politik bietet das Land attraktive Möglichkeiten für internationale Unternehmen. Doch wer in Vietnam Geschäfte tätigen oder investieren möchte, sollte sich mit den rechtlichen Rahmenbedingungen, steuerlichen Aspekten und kulturellen Besonderheiten vertraut machen.

Investieren in Vietnam: Voraussetzungen und Prozesse
Ausländische Investoren sind in Vietnam willkommen, unterliegen jedoch bestimmten Vorschriften. Unternehmen müssen in der Regel ein Investitionsregistrierungszertifikat (IRC) sowie eine Unternehmensregistrierungsbescheinigung (ERC) beantragen. Diese können mittlerweile digital beantragt werden, was den Markteintritt deutlich erleichtert. Je nach Investitionsform – ob Unternehmensgründung, Durchführung eines Investitionsprojekts, Geschäftskooperationsverträge oder der Erwerb von Kapital oder Aktien – gibt es spezifische Anforderungen.
Investoren müssen unter anderem finanzielle Leistungsnachweise, detaillierte Geschäftspläne und Investitionspläne sowie juristische Dokumente einreichen. Während kleinere Investitionsprojekte innerhalb von 15 Werktagen genehmigt werden können, benötigen größere Projekte eine politische Genehmigung, die bis zu 35 Werktage in Anspruch nehmen kann.

Wirtschaftsabkommen und Marktvorteile
Vietnam profitiert von einer Vielzahl internationaler Handelsabkommen, die den Markteintritt für ausländische Unternehmen erleichtern. Besonders das EU-Vietnam Freihandelsabkommen (EVFTA) und das Umfassende und Fortschrittliche Abkommen für die Transpazifische Partnerschaft (CPTPP) sind von großer Bedeutung. Sie senken Zölle, erleichtern den Handel und schaffen einen rechtlichen Rahmen für Investoren.
Ein weiterer wichtiger Faktor ist die Investor-Staat-Streitbeilegung (ISDS), die Investoren hohe rechtliche Sicherheit bietet. Nach dieser Bestimmung haben Investoren bei Streitigkeiten im Zusammenhang mit Investitionen das Recht, Ansprüche im Wege eines internationalen Schiedsverfahrens gegenüber dem Gastland geltend zu machen. Die Schiedsverfahren in Konfliktfällen werden aus Gründen der Transparenz öffentlich gemacht. Der endgültige Schiedsspruch ist bindend und vollstreckbar, ohne dass seine Gültigkeit von einem vietnamesischen Gericht überprüft wird. Die Regierung Vietnams muss diese Verpflichtung innerhalb von fünf Jahren nach Inkrafttreten des EVIPA vollständig umsetzen.

Steuern, rechtliche Rahmenbedingungen und Finanzierung
Unternehmen in Vietnam unterliegen verschiedenen Steuerarten; darunter fällt die Köperschaftssteuer, die Mehrwertsteuer und spezielle Abgaben für ausländische Unternehmer. Die Steuersätze sind wettbewerbsfähig, und bieten zahlreiche steuerliche Anreize für ausländische Investoren.
Kleine und mittelständische Unternehmen (KMU) stellen den Großteil der vietnamesischen Wirtschaft dar. Sie tragen erheblich zur Wirtschaftsleistung bei, haben jedoch oft Schwierigkeiten Kredite zu erhalten. Um dem entgegenzuwirken, hat die Regierung spezielle Förderprogramme wie den KMU-Entwicklungsfonds und den Kreditgarantiefornds ins Leben gerufen.
Die vietnamesischen Banken bewerten die Kreditwürdigkeit indes anhand von Unternehmensgröße, Eigenkapitalrendite und Sicherheiten.
Des Weiteren existiert in Vietnam der Schutz des geistigen Eigentums (IPR). Dieser umfasst Urheberrechte, Patente, Marken und geografische Angaben.

Markteintritt und Vertrieb: Herausforderungen und Chancen
Wer in Vietnam Waren vertreiben möchte, benötigt eine Geschäftslizenz sowie spezielle Genehmigungen für bestimmte Produktkategorien wie Lebensmittel, Chemikalien oder Druckerzeugnisse. Zudem bestehen branchenspezifische Vorschriften, die vor Markteintritt beachtet werden müssen.
Der vietnamesische Markt zeichnet sich durch eine steigende Nachfrage nach internationalen Produkten aus, insbesondere in den Bereichen Technologie, Konsumgüter und Luxusartikel. Dennoch sollte der Vertrieb sorgfältig geplant werden, da lokale Netzwerke und persönliche Kontakte eine entscheidende Rolle spielen.

E-Commerce in Vietnam: Ein wachsender Markt
Der vietnamesische E-Commerce-Sektor wächst rasant. Plattformen wie Tiki, Lazada, Shopee und Sendo dominieren den Onlinehandel und bieten Unternehmen vielfältige Möglichkeiten, ihre Produkte direkt an vietnamesische Verbraucher zu verkaufen. Besonders beliebt sind E-Wallets, Banküberweisung und Nachnahme als Zahlungsmethoden.
Ein erfolgreiches Onlinegeschäft erfordert jedoch eine durchdachte Strategie – Vietnamesen legen großen Wert auf einen guten Kundenservice und flexible Rückgaberechte.

Arbeitsmarkt und Personalmanagement
Die Beschäftigung von ausländischen Fachkräften in Vietnam unterliegt strengen Vorschriften. Unternehmen müssen eine Arbeitserlaubnis und ein Arbeitsvisum beantragen, die in der Regel bis zu zwei Jahre gültig sind. Auch für vietnamesische Arbeitnehmer existieren klare gesetzliche Regelungen zu Arbeitszeiten, Mutterschutz, Urlaubsansprüchen und Sozialversicherungen.
In Vietnam spielen Hierarchie und persönliche Beziehungen eine große Rolle. Geschäftsleute legen Wert auf Respekt gegenüber älteren oder ranghöheren Personen; persönliche Treffen sind oft wichtiger als schriftliche oder digitale Kommunikation und erleichtern überwiegend die Zusammenarbeit sowie den Abschluss der Geschäfte.

Fazit: Vietnam als attraktiver Wirtschaftsstandort
Vietnam bietet zahlreiche Chancen für Investoren und Unternehmen, sei es im traditionellen Handel, im E-Commerce oder in der Industrie. Die Kombination aus einer wachsenden Wirtschaft, internationalen Handelsabkommen und einer jungen, technologieaffinen Bevölkerung macht das Land zu einem attraktiven Ziel für Geschäftsaktivitäten.
Wer in Vietnam investieren möchte, sollte sich jedoch gründlich mit den rechtlichen und kulturellen Besonderheiten auseinandersetzen. Eine gute Vorbereitung, fundierte Marktanalysen und der Aufbau lokaler Netzwerke sind der Schlüssel zum Erfolg in diesem dynamischen Markt. Daher ist es ratsam eine in Vietnam ansässige Anwaltskanzlei zu beauftragen, die Sie berät und unterstützt.

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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.