Author: Dr. Oliver Massmann

On September 9, 2025, the Vietnamese Government issued Resolution No. 05/2025/NQ-CP to implement a five-year pilot program for the virtual assets market. This is a significant development for Vietnam, marking the first time a formal legal framework has been established for the issuance and trading of crypto assets. Key takeaways:
1. Asset Issuance: Only Vietnamese enterprises are permitted to issue virtual assets, and virtual assets can only be issued and offered to foreign investors and traded between the same. The assets issued must be backed by real underlying assets, and not by securities or fiat currencies. Virtual assets service providers are tasked with selecting the virtual assets to be traded.
2. Trading Restrictions: All issuance, trading, and payment activities involving virtual assets must be conducted in Vietnamese Dong (VND). Foreign investors must open a dedicated VND account at an authorized bank for all transactions.
3. Foreign Ownership Cap: While foreign investors are a key target, they are prohibited from holding more than 49% of the charter capital of any licensed service provider.
4. Market Regulation: The Ministry of Finance will oversee the pilot. Only entities licensed by the Ministry can provide services related to the virtual assets market. These service providers must meet rigorous requirements, including a significant minimum charter capital of VND 10 trillion (approx. USD 380 million) and a minimum of 65% institutional ownership.
5. Regulatory Compliance: Participants must strictly adhere to Vietnamese laws on anti-money laundering, counter-terrorism financing, cybersecurity, and data protection. Non-compliance could lead to severe penalties, including license revocation and criminal prosecution.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

On August 20, 2025, Party General Secretary To Lam signed Resolution 70-NQ-TW of the Politburo, a strategic directive aimed at ensuring Vietnam’s national energy security through 2030, with a forward-looking perspective toward 2045.

Building upon the groundwork established by Resolution 55-NQ/TW, which accelerated the expansion and diversification of the energy sector, Resolution 70 introduces updated priorities that reflect new international and domestic contexts. The focus shifts from merely ensuring sufficient power supply to providing energy that is high-quality, affordable, sustainable, climate-resilient, and integrated with global markets.

Key legal and policy highlights of Resolution 70 include:

• Facilitating Capital Inflows: Promotes equal access for private and international investors, targeting renewable energy, smart grids, new energy sources, and nuclear power. The Resolution advocates for reforms in finance, credit, and taxation policies, alongside incentives for green projects, energy storage, R&D, and domestic manufacturing. It also emphasizes mobilizing official development assistance (ODA), green bonds, and zero-emission target programs (JETP).
• Strengthening Contractual and Project Execution Frameworks: Mandates enhanced enforcement of Power Purchase Agreements (PPAs), resolution mechanisms for stalled projects, elimination of state-owned enterprise (SOE) payment delays, and encouragement of private investments in energy storage infrastructure such as batteries and LNG/fuel depots. New transmission pricing models are introduced to attract private capital.
• Renewable Energy Prioritization: Aims for renewables to constitute 25–30% of the primary energy supply by 2030, with the introduction of renewable energy certificate markets and system optimizations. It promotes diverse technologies including geothermal, ocean, tidal energy, hydrogen, ammonia, and offshore wind linked to hydrogen production. Special mechanisms will address legal and financial obstacles affecting stalled renewable projects. Biomass, co-generation, and waste-to-energy projects are encouraged without planning caps.
• Nuclear Power Development: Urges expedited implementation of the Ninh Thuận 1 and 2 nuclear power plants by 2030–2035, with opportunities for both SOEs and private sector participation, especially in small modular reactors.
• Energy Efficiency and Emissions Reduction: Establishes energy savings goals of 8–10% of total final consumption by 2030 and greenhouse gas reductions of 15–35% from energy-related activities, compared to business-as-usual scenarios.
• Human Resource Development: Calls for a comprehensive master plan to enhance high-quality workforce training in the energy sector, with a focus on nuclear energy. The target is 25,000–35,000 trained personnel, with active recruitment of international experts and overseas Vietnamese specialists.

On September 4, 2025, the Ministry of Industry and Trade (MOIT) Vice Minister Long chaired a conference emphasizing that while Resolution 70 establishes a critical strategic framework, the key challenge remains its effective implementation across all sectors.

This Resolution represents a significant legal and policy advancement aimed at unlocking substantial investment in Vietnam’s energy sector by addressing institutional bottlenecks and aligning energy development with sustainable, resilient, and international standards.

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

Am 07. August 2025 erließ die Regierung das Dekret Nr. 219/2025/ND-CP zur Regelung der Beschäftigung ausländischer Arbeitnehmer in Vietnam („Dekret 219“), das die bisherigen Bestimmungen des Dekrets Nr. 152/2020/ND-CP und des Änderungsdekrets Nr. 70/2023/ND-CP ersetzt. Im Allgemeinen enthält das Dekret 219 relevante Bestimmungen, um hochqualifizierte Fachkräfte in prioritären Sektoren anzuziehen und sowohl Arbeitgebern als auch Arbeitnehmern eine klare Orientierung zu geben. Nennenswerte Bestimmungen sind folgende:

1. Vereinfachtes Verfahren für die Beantragung einer Arbeitserlaubnis: Das Dekret 219 fasst das zweistufige Verfahren, bestehend aus (i) der Beantragung der Genehmigung für den Bedarf an ausländischen Arbeitskräften und (ii) der Beantragung einer Arbeitserlaubnis, in einem einzigen, konsolidierten Verfahren zusammen. Dies reduziert den Verwaltungsaufwand erheblich. Infolgedessen beträgt die gesamte gesetzliche Bearbeitungszeit für einen Antrag auf Arbeitsgenehmigung nun 10 Werktage, was eine deutliche Reduzierung gegenüber der gesetzlichen Frist von etwa 20 Werktagen für die beiden Schritte vor der Zusammenführung darstellt.
2. Erweiterte Fälle für die Ausnahme von der Arbeitsgenehmigungspflicht: Das neue Dekret erweitert die Liste der Fälle, in denen ausländische Arbeitskräfte keine Arbeitserlaubnis benötigen. Nennenswerte Fälle sind:
• Kapitalgeber mit hohen Kapitaleinlagen: Eigentümer oder kapitalgebende Gesellschafter von Gesellschaften mit beschränkter Haftung sowie Vorsitzende oder Mitglieder des Vorstands von Aktiengesellschaften mit einer Kapitaleinlage von mindestens drei Milliarden VND.
• Fachkräfte aus prioritären Sektoren: Ausländische Experten und Arbeitskräfte, welche von den zuständigen Ministerien oder Volkskomitees der jeweiligen Provinz bestätigt bekommen haben, dass sie in strategischen Bereichen wie Finanzen, Wissenschaft und Technologie, Innovation und nationaler digitaler Transformation tätig sind.
• Kurzzeitbeschäftigungen: Ausländische Führungskräfte, Manager, Experten oder Techniker, die für kurzfristige Einstätze von weniger als 90 Tagen pro Kalenderjahr nach Vietnam einreisen, können nun einen Anspruch auf Befreiung von der Arbeitsgenehmigungspflicht haben.
3. Lockerung der Anforderungen für „Experten“ und „Techniker“: Die Bedingungen, um sich als „Experte“ oder „Techniker“ zu qualifizieren, wurden wie folgt gelockert:
• Experten: Jetzt ist ein Bachelor-Abschluss (oder höher) und mindestens zwei Jahre einschlägige Berufserfahrung erforderlich (zuvor drei Jahre). Für Beschäftigte in prioritären Entwicklungsbereichen ist nur ein Jahr Berufserfahrung erforderlich.
• Techniker: Die erforderliche einschlägige Berufserfahrung wurde von fünf Jahren auf drei Jahre reduziert.
4. Dezentralisierung der Zuständigkeit: Die Zuständigkeit für die Erteilung, erneute Ausstellung, Verlängerung und den Widerruf von Arbeitsgenehmigungen und Bescheinigungen über die Befreiung von der Arbeitsgenehmigungspflicht wird nun an die Volkskomitees auf Provinzebene übertragen.
5. Neue Vorschriften für Arbeitsgenehmigungsbefreiungsbescheinigungen: Das Dekret führt klare Verfahren für die erneute Ausstellung, Verlängerung und den Widerruf von Arbeitsgenehmigungsbefreiungsbescheinigungen ein.
• Eine Ausnahmegenehmigung kann einmalig um maximal zwei Jahre verlängert werden.
• Es wurden klare Gründe für einen Widerruf festgelegt, darunter die Ausübung von Tätigkeiten außerhalb des genehmigten Umfangs oder die Beendigung des Arbeitsauftrags.

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Bei Fragen oder für weitere Informationen zu den oben genannten Punkten wenden Sie sich bitte an Dr. Oliver Massmann unter omassmann@duanemorris.com. Dr. Oliver Massmann ist Generaldirektor von Duane Morris Vietnam LLC.

Effective from September 15, 2025, Decree 210/2025/ND-CP establishes a comprehensive legal framework to facilitate investment by startup investment funds in innovative startups in Vietnam, enhancing capital access for these enterprises. This article outlines the key provisions of Decree 210, highlighting its significance in fostering a secure investment environment for startups and venture capital funds.

Decree 210 formally recognizes convertible investment instruments, enabling investment funds to provide capital to startups through mechanisms that can later be converted into equity or capital contributions. Prior to this decree, investors often relied on convertible loans or restructured preferred shares under existing enterprise regulations to inject capital into startups. The absence of a clear legal framework posed potential risks. The introduction of these provisions represents a significant advancement, reducing uncertainty and enhancing investor confidence.

The decree also introduces provisions allowing investment funds to negotiate preemptive rights to acquire new shares in subsequent funding rounds of startups. This regulation aligns with common practices in venture capital and startup ecosystems, ensuring that investors can protect their legitimate interests by maintaining their proportional ownership in future capital raises.

Decree 210 establishes specific guidelines to ensure the safe and transparent operation of investment funds and startups:
1. Fund Composition and Legal Status: An investment fund may consist of 2 to 30 investors and does not have legal entity status. This flexible structure is well-suited to the experimental and smaller-scale nature of early-stage venture capital funds.
2. Investment Limits: The total capital invested by a fund in a single startup may not exceed 50% of the startup’s charter capital post-investment. This restriction aims to prevent excessive control by a single investor and encourages startups to diversify their funding sources.
3. Prohibition on Cross-Investment: The decree strictly prohibits innovative startup investment funds from investing in other similar funds. This measure enhances financial transparency, mitigates risks associated with capital recycling, and prevents speculative financial structures.

To maintain the focus on fostering innovation, Decree 210 imposes specific limitations on the activities of startup investment funds:
• Funds are prohibited from engaging in commercial lending or guaranteeing loans.
• Investment in listed securities, bonds, or fund certificates on the stock market is not permitted.
• Funds are barred from promising guaranteed returns when raising capital from investors.

These restrictions underscore the decree’s intent to prioritize venture capital investments that support innovation and creativity, rather than purely financial or speculative objectives.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

On 7 August 2025, the Government issued Decree No. 219/2025/ND-CP regulating foreign worker working in Vietnam (“Decree 219”) to replace previous regulations outlined in Decree No. 152/2020/ND-CP and the amending Decree No. 70/2023/ND-CP. In general, Decree 219 outlines relevant provisions to attract high-quality talent in priority sectors, and provide clear guidance for both employers and employees. Notable provisions are as follows:
1. Streamlined Work Permit Application Process: Decree 219 integrates the two-step process of (i) seeking approval for the demand to use foreign labor and (ii) applying for a work permit into a single, consolidated procedure. This significantly reduces administrative burden. As a result, the total statutory processing time for a work permit application is now 10 working days, a significant reduction compared to the statutory timeline of about 20 working days for the two steps before integration.
2. Expanded Cases for Work Permit Exemption: The new decree expands the list of cases where a foreign worker is exempt from a work permit. Notable cases include:
• High-Value Capital Contributors: Owners or capital-contributing members of limited liability companies, and Chairpersons or members of the Board of Management of joint-stock companies, with a capital contribution of VND 3 billion or more.
• Priority Sector Professionals: Foreign experts and workers confirmed by relevant ministries or provincial People’s Committees to be working in strategic fields such as finance, science and technology, innovation, and national digital transformation.
• Short-Term Work: Foreign managers, executives, experts, or technicians entering Vietnam for short-term assignments of less than 90 days per calendar year are now eligible for exemption.
3. Relaxation of Requirements for “Experts” and “Technicians”: The conditions to qualify as an “expert” or “technician” have been eased as follows:
• Experts: Now require a bachelor’s degree (or higher) and at least 2 years of relevant work experience (down from 3 years). For those in priority development sectors, only 1 year of experience is needed.
• Technicians: The required relevant work experience has been reduced from 5 years to 3 years.
4. Decentralization of Authority: The authority for issuing, re-issuing, extending, and revoking work permits and work permit exemption certificates is now transferred to provincial-level People’s Committees.
5. New Rules for Work Permit Exemption Certificates: The decree introduces clear procedures for the re-issuance, extension, and revocation of work permit exemption certificates.
• An exemption certificate may be extended once for a maximum period of two years.
• Clear grounds for revocation have been established, including working outside the certified scope or termination of the work assignment.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

On 3 March 2025, the Government issued Decree No. 58/2025/ND-CP providing guidance on the Law on Electricity pertaining to development of renewable energy power and new energy power (“Decree 58”), replacing Decree No. 135/2024/ND-CP regulating policies and mechanisms to encourage the development of self-production and self-consumption rooftop solar power (“Decree 135”). Decree 58 focuses on incentives for new energy projects, mechanisms for self-production and self-consumption rooftop solar (“RTS”) power projects, and development of offshore wind power projects.
I. Mechanisms for self-production and self-consumption RTS power projects
1. Self-production and self-consumption: Similar to Decree 135, mechanisms and policies under Decree 58 are provided for the development of self-production and self-consumption RTS power installed on the roofs of various constructions including individual residences, offices, industrial zones, clusters, export processing zones, high-tech parks, economic zones, production facilities, and business establishment. Self-production and self-consumption RTS power, according to Decree 58, refers to electricity produced and consumed by an organization or individual to meet their demands.
2. Principles for development of self-production and self-consumption RTS power systems:
• The implementation of the construction and project development must be in compliance with all applicable regulations on investment, construction, land, environment, safey, firefighting and prevention;
• During the RTS power system’s investment and construction phase, imported and used solar panels and DC-to-AC converters are strictly prohibited.
3. Models: According to Decree 58, developers of self-production and self-consumption RTS power systems 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. Depending on whether or not they are connected to the national power grid and whether or not they have extra power production that they may sell to EVN, RTS power systems must meet a variety of standards as set out in Decree 58.
4. Mechanism for RTS power system not being connected to the grid: RTS power system in this case is not subject to the requirement of the electricity operation permit and is able to be developed without any limitation regarding its capacity. Prior to installation, the developer must inform the relevant power units and the provincial Department of Industry and Trade (DOIT) of the RTS power system’s installed capacity and location. They must also notify the provincial authorities responsible for construction, fire safety, and firefighting of the RTS power system’s installation.
5. Grid-connected RTS power system:
• RTS power systems with a capacity of less than 100kW: Developers must notify the DOIT and local construction and fire prevention and firefighting competent authorities. Developers can choose whether surplus electricity is imported into the national grid. A zero-export device must be installed if surplus electricity is not fed into the national grid.
• RTS power systems with a capacity from 100 kW to under 1,000 kW: Apart from the procedures as set out for RTS power system being less than 100kW, developers must further notify EVN and may sell the surplus electricity of no more than 20% of its actual installed capacity if the capacity has not exceeded the total capacity allocated to its local province/city under the national power development plan and its detailed implementation plan.
• RTS power systems with a capacity of 1,000 kW or more: Developers must register with the DOIT to obtain the development registration certificate. The electricity operation permit is required if the developers sell the surplus electricity to the grid. When the total capacity exceeds the capacity allocated to such province/city under the national power development plan and its detailed implementation plan, the developer must additionally follow the regulated procedure for supplementing its project to the national power planning. A zero-export device must be installed if surplus electricity is not fed into the national grid.
6. Batter energy storage system (“BESS”): According to Decree 135, installing BESS is advised for developers in order to guarantee reliable and secure power system operations.
II. Incentives for new energy power projects
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.
III. 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.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

On 3 July 2024, the Government issued Decree No. 80/2024/ND-CP regulating the direct power purchase mechanism (“DPPA”) between renewable energy generators and large power consumer (“Decree 80”), marking the first legal instrument ever to regulate such a matter. On 3 March 2025, the Government issued Decree No. 57/2025/ND-CP to replace Decree 80 to be in line with the amended Law on Electricitry (“Decree 57”).

Some key provisions:
Similar to Decree 80, Decree 57 introduces two separate DPPA models:
1. Model 1 – Private Wire Model: this model envisions the sale of power from a renewable energy generator with large power consumer through a power private wire (not connected to the national power grid). There is no requirement on application/registration for joining this Model but large power consumer shall report the execution of power purchase agreement with the renewable energy generator to local provincial People’s Committee, competent local power company, and competent system operator. Renewable energy generators include owners of energy, solar, wind, biomass, small hydro power plants as well as rooftop solar systems.
2. Model 2 – Grid-connected Model: this Model envisions the sale and purchase of power under a forward contract between large power consumer and renewable energy generator. To implement this Model: (x) large power consumer shall sign a forward contract with renewable generator, (y) renewable energy generator shall sign a contract with Electricity of Vietnam (EVN) for selling power to spot market (i.e., VWEM – Vietnam Wholesale Electricity Market) and (z) large power consumer shall sign a retail power purchase contract with EVN or its subsidiary (e.g., local power company) for receiving the power from the local power company. Renewable energy generator shall own a renewable energy plant of at least 10 MW. This Model requires registration of participation with competent system operator and will subject to the approval and guidance from the competent system operator for proceeding.
Analysis in details:
1. Scope of Regulations
The main subjects under Decree 57 are:
• Renewable energy generator owning power plants from solar energy, wind, small hydropower, biomass, geothermal, ocean waves, tides, ocean currents, and other forms of renewable energy, together with rooftop solar power system granted with electricity operating license or rooftop solar power system being exempted from such a license.
• Large power consumer being organizations or individuals using electricity for production purposes or engagement in the business of charging services for traffic vehicles who purchase electricity from power corporations, power companies, and electricity retailers connecting and providing voltage levels from 22kV or higher.
2. Conditions for large electricity consumers to participate in DPPA mechanism:
• 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.
3. General principles
The two models for DPPA mechanism are regulated to be implemented under the following principles:
• Private wire:
(i) Parties: This form must be implemented between renewable energy generation units and large power consumer where the DPPA is mutually agreed between the parties;
(ii) PPA: The PPA between the parties is mutually agreed with core contents being in line with Decree 57. The electricity sale price is negotiated by both parties and does not exceed the maximum price of the electricity generation price frame of the corresponding type of electricity source.;
(iii) 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.
(iv) Procedures: Regarding relevant procedures, upon the renewable energy generation unit’s obtainment of relevant approvals/licenses and the execution of the PPA between the parties, the large electricity user must report the PPA to the provincial People’s Committee, the competent local power company and competent system operator.
• Grid-connected:
(i) Parties: The parties to this form of DPPA mechanism are renewable energy generators and large electricity user/electricity retailer through forward contracts. To implement the above forward contract: (x) large power consumer shall sign a contract with a forward contract with renewable generator, (y) renewable energy generator shall sign a contract with Electricity of Vietnam (EVN) for selling power to spot market (i.e., VWEM – Vietnam Wholesale Electricity Market) and (z) large power consumer shall sign a retail power purchase contract with EVN or its subsidiary (e.g., local power company) for receiving the power from the local power company. Renewable energy generator shall own a renewable energy plant of at least 10 MW.
(ii) PPA: Subject to the specific method of implementation of grid-connected mechanism, the contents of the PPA will contain specific contents as regulated in Decree 57. The same principle applies for the electricity sale price.
(iii) Procedures: Subject to the specific method of implementation of grid-connected mechanism, specific procedures will apply, according to Decree 57. Generally, this Model requires registration of participation with competent system operator and will subject to the approval and guidance from the competent system operator for proceeding.
4. Spot electricity market price:
Regarding grid-connected form of electricity trading, Decree 57 provides detailed regulations on the selling of renewable electricity generation units through spot electricity market and the trading with EVN as follows: According to relevant regulations, the spot electricity market price is the total electricity market price formed according to each transaction cycle of the spot electricity market and is determined by the sum of the market electricity price and the market capacity price. In particular, the market electricity price and market capacity price are determined according to the Regulations on operating the competitive wholesale electricity market issued by the MOIT.
We – Duane Morris Vietnam – are following up closely with the implementation of this Decree 57 and any new progress will be updated in a timely manner.
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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.

1. How will Trump’s tariffs affect Vietnam’s export performance? Compared with the 46% tariff rate announced in April, would you consider 20% a favourable outcome from Vietnam’s perspective?
DMVN: While the imposition of 20% tariff will undoubtedly present challenges, Vietnam’s export performance is expected to remain strong due to its strategic approach and unmatched international integration. The new 20% tariff on Vietnamese exports to the US is certainly a more favorable outcome compared to the initially proposed 46%.
This reduction is a testament to the Vietnamese Government’s proactive and skillful negotiations. Furthermore, the tariffs also apply to a wide range of other countries, which could help level the playing field. To mitigate the negative effects, Vietnamese businesses are already diversifying their export markets, leveraging free trade agreements with the European Union (EVFTA) and other partners.

2. How might Trump’s tariff policies affect FDI flows into Vietnam, particularly in light of the 40% tariffs on transshipment? Compared with other ASEAN countries, what are Vietnam’s unique strengths?
DMVN: The 40% tariff on transshipment is a significant measure aimed at preventing the rerouting of goods. However, Vietnam is well-positioned to handle this challenge. This policy may actually incentivize legitimate companies to invest in manufacturing with a higher local content, rather than simply using Vietnam as a transit point. This could lead to a higher quality of FDI in the long term.
Compared to other ASEAN countries, Vietnam’s unique strengths are numerous:
• Political Stability with the private sector at the heart of its development: Vietnam’s stable government and commitment to a pro-business environment, thanks to Resolution 68 issued recently, provide a secure foundation for long-term investment.
• Strategic Location: Its proximity and land border with China make it a natural hub for manufacturing and supply chain diversification.
• Strong Workforce: Vietnam has a large, young, and increasingly skilled labor force with competitive wages.
Unmatched international integration: The country has a robust network of free trade agreements, including the CPTPP and EVFTA, which opens up access to many international markets.

3. How about Chinese investment? Do you anticipate an increase of Chinese investment?
DMVN: I do anticipate an increase in Chinese investment, as the country continues to be a key player in the regional supply chain. Chinese companies are increasingly investing in manufacturing facilities in Vietnam to produce goods that can be exported without being subject to US tariffs on Chinese-made products. While this trend has been ongoing, the new US tariffs on transshipment will likely encourage a greater focus on investments that involve substantial manufacturing and local value-add within Vietnam. This will ultimately benefit the Vietnamese economy by creating jobs and strengthening our manufacturing base.

4. In recent years, have you observed any trends or shifts in foreign investment into Vietnam—either in terms of sectors, source countries or investment strategies?
DMVN: In recent years, we have observed several key trends and shifts in foreign investment into Vietnam. First of all, there is a clear trend towards investment in high-tech manufacturing, particularly in semiconductors, electronics, and advanced components, as well as renewable energy, where I have seen billions of dollars being committed to be invested in Vietnam. This aligns with Vietnam’s policy to attract higher-value and high-quality investment. Also, while traditional investors from Singapore, South Korea, and Japan remain strong, there is a growing interest from other nations and regions seeking to diversify their supply chains. Notably, foreign investors, especially Chinese investors, are increasingly targeting the development of industrial parks, warehouses, and logistics networks, recognizing the need to support the country’s growing manufacturing and export capabilities.

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

The first ever non-Vietnamese speaker to address the National Assembly shares guidance for Vietnam’s reform path
With more than 25 years of experience in Vietnam, Dr. Oliver Massman has not only played a key role in advancing major trade agreements like the EVFTA but also delivered insightful analysis on legal reform, the investment climate, and Vietnam’s integration strategy amid a turbulent global economy.
On a day in June 2016, in the National Assembly Hall in Hanoi, Dr. Oliver Massmann, Partner at Duane Morris Vietnam, stood at the podium, ready for a remarkable moment. He was the first foreigner ever invited to speak before the National Assembly, and even more notably, his speech was delivered entirely in Vietnamese.
Behind this significant occasion lies a long journey of integration, not only in language but also in legal perspectives, with a profound understanding of Vietnamese institutions, culture, and people.
The focus of his speech – the impact of the Trans-Pacific Partnership Agreement (TPP) on Vietnam’s economy – demanded not only expertise but also finesse in communication, dialogue, and persuasion.
For Dr. Massmann, this was not merely a personal honor but a testament to the belief that the connection between Vietnam and the global community can begin with mutual respect and be forged through genuine understanding, beyond mere formalities.
Dr. Oliver Massmann is one of the most prominent international legal experts in Vietnam, with over 25 years of experience as a foreign lawyer.
He holds a PhD in International Business Law, is a member of the Berlin Bar Association, holds a Judge’s degree in Germany, and is licensed to practice in Vietnam.
He served as the Chief Advisor to the European Commission during the implementation of the Vietnam – EU Free Trade Agreement (EVFTA). He is also an international arbitrator and an expert in cross-border finance and investment.
01. Unforgettable Moment And Tear At The National Assembly Hall
What brought you to Vietnam? What inspired you to remain in this S-shaped land for so long? After over three decades, how does Vietnam today differ from your initial impression when you first arrived in 1991?
I have a Vietnamese adopted brother named Khoa, who has been living with me in Germany for nearly a decade. During that period, Khoa repeatedly invited me to visit his homeland, Vietnam, but truthfully, I was never intrigued.
Everything shifted when we attended a Vietnamese New Year reunion in Germany. For the first time, I saw Vietnamese women wearing traditional Ao Dai. That moment left a lasting impression on my mind, and at that instant, I knew I had to visit Vietnam.
Indeed, the initial allure came from the gorgeous Vietnamese women. But it was the mindset and the people here that kept me here for so long. The Vietnamese have a quality I particularly admire: They live practically yet with genuine sincerity.
When I first arrived in Vietnam, I felt like a “giant” in the midst of the city. Hailing a taxi was nearly impossible, high-rise buildings were absent, and the infrastructure was quite basic. But what stood out most vividly was a society actively developing, with resilient, diligent people who never ceased their efforts.
“Over three decades have passed, and it feels as though I am living in an entirely different country. Vietnam now boasts skyscrapers, luxury cars cruising along the boulevards, and big corporations achieving regional prominence. As for me – now I am merely a “bald” German, living humbly in the heart of a modern, vibrant, and promising Vietnam.” – Dr. Oliver Massmann
Your address in Vietnamese before the National Assembly and your instruction on European law at the Ministry of Justice demonstrate your profound integration into the Vietnamese legal landscape. Can you share about this memory? Was mastering Vietnamese a challenge for you?
I have countless memorable moments from participating in official events, but one stands out as unforgettable: the moment I received a round of applause in the National Assembly Hall after delivering my speech entirely in Vietnamese.
Many people approached me afterward, offering positive feedback. It was an incredibly special moment, and though I am not easily emotional, I was truly overwhelmed. I shed tears right then.
I have studied numerous languages in my life, and as a German – a language already notorious for its complexity among European tongues – I must confess: Vietnamese is the most challenging language I have ever tackled.
“Vietnamese is completely distinct from other language system that I have ever encountered, and mastering it mastering it for me is like… hitting the jackpot” – Dr. Oliver Massman
For the first time in my life, I needed to hire someone to assist me in learning a language. It was a challenging yet motivating journey. And I treasure every moment of it, as each moment was a memorable experience.
02. “The Golden Key” To Elevating Vietnam’s Role In The Global Value Chain
In your view, what are the strengths and weaknesses of Vietnam’s legal framework compared to the European Union (EU) or the US in the fields of investment and trade? Can you provide specific examples to support your observations?
In my view, Vietnam truly excels in its efforts toward international integration. Over recent years, Vietnam has made remarkable strides in aligning its trade legal framework with global standards.
A notable example is the tariff reduction policy: Vietnam has introduced a clear, binding, and transparent tariff reduction roadmap – something not all Bilateral agreements achieve.
Specifically, under the Vietnam – EU Free Trade Agreement (EVFTA), over 99% of tariffs on goods from the European Union will be eliminated within a decade, providing a solid foundation for European companies to develop long-term investment strategies in Vietnam.
However, when compared to well-established legal systems like those of the European Union or the United States, Vietnam’s legal framework still has shortcomings.
In my opinion, certain laws in Vietnam are drafted with overly vague language, or the judicial system lacks the necessary independence.
I believe that if Vietnam aims to enhance its competitiveness in attracting high-quality FDI flows, particularly from developed economies like Europe and the United States, institutional reform must go beyond mere documentation. Vietnam needs to prioritize implementation, increase transparency, reform the judiciary, and standardize legal processes across the system.
Vietnam has recently issued Resolution 68/NQ-TW to foster private economic development and expedite administrative reform. In your view, what tangible changes can this resolution bring to institutional reform?
In my view, Resolution 68/NQ-CP, enacted by the Vietnamese Government in May 2024, reflects the Government’s resolute commitment to bolstering the private economy sector, aiming to transform it into a “growth engine” for the economy.
“Resolution 68/NQ-CP could mark Vietnam’s most significant reform since Doi Moi, aiming to establish a genuinely market-oriented economic framework” – Dr. Oliver Massman
I hope that Resolution 68 will drive systemic changes, anchored by four key pillars.
The first is “Dismantling the entrenched ‘asking-giving’ mechanism”. The Resolution upholds the principle that enterprises are entitled to operate in all sectors not prohibited by law. Any business restrictions or conditions must be transparently regulated, grounded in clear legal foundations, and serve the public interest.
The second is “Streamlining administrative procedures”: The goal is to reduce the time required for processing licenses, approvals, and the delivery of public services.
Next is “Advancing digital government services”: By 2026, I expect all administrative procedures related to business activities to be fully digitized via the National Public Service Portal, helping to minimize direct interactions and accelerate processing.
Finally, “Ensuring equal treatment for private enterprises”: Ministries, agencies, and state-owned enterprises are mandated to eliminate informal discrimination against the private sector, particularly in accessing land, credit, and other resources for development.
From your experience as a Key Advisor in the implementation of the Vietnam – EU Free Trade Agreement (EVFTA) for the 2021–2023 period, what do you believe are the critical legal reforms Vietnam should prioritize in the near future?
From my direct experience, I believe Vietnam should focus on three primary legal reform areas: public bidding, dispute resolution mechanisms, and customs – trade procedures.
First, to fully comply with Chapter 9 of the EVFTA on Government Procurement (MSCP), I suggest Vietnam revise and enhance the Law on Bidding, not only to boost transparency but, more crucially, to create meaningful opportunities for EU contractors to access the market – beyond mere formalities.
Second, the commercial arbitration system and law enforcement mechanisms require substantial improvements in efficiency and independence. This is a vital factor in building investor confidence within an increasingly competitive legal landscape.
Finally, despite the EVFTA’s significant tariff reduction benefits, Vietnam’s Law on Customs needs updates to incorporate more streamlined customs processes and fully adopt electronic certification—in alignment with the WTO Trade Facilitation Agreement (TFA) and expectations from the European Union.
In your view, what advantages does Vietnam currently have to attract foreign investment?
In terms of geographic position, Vietnam lies at the crossroads of regional trade routes, bordering China and Southeast Asian countries, with the advantage of accessing deep-water ports in the South China Sea.
Moreover, with an average age under 32 and labor costs significantly lower than those in China or Thailand, Vietnam boasts an abundant and highly trainable workforce.
Last but not least, I believe Vietnam’s stable political system consistently sends positive signals and offers attractive incentives for investors, such as tax exemptions and land use rights.
Given the US’s increasing reciprocal tariffs, Vietnam is facing pressure from global trade dynamics. In your view, what strategy should Vietnam develop to mitigate negative impacts and sustain its role in the international supply chain?
In my view, Vietnam must swiftly implement both defensive and proactive trade strategies to navigate fluctuations in the global trade environment.
First, Vietnam should maximize international integration to diversify its export markets. Vietnam can more effectively leverage the Vietnam – EU Free Trade Agreement (EVFTA), the Vietnam-UK Free Trade Agreement (UKVFTA), and the Regional Comprehensive Economic Partnership Agreement (RCEP).
In particular, the European Union, with its $18 trillion economy, represents a promising market for Vietnam’s agricultural and technological products.
In the long term, coordinated investment in strategic infrastructure – such as logistics, seaports, and railways – is a “critical” factor to ensure the supply chain remains resilient against geopolitical risks or international transport disruptions.
Finally, given the US’s explicit concerns about transshipment and violations of rules of origin, I recommend that Vietnam strengthen its traceability system in line with Circular 05/2018/TT-BCT, while enhancing customs inspection and supervision to avoid being labeled a “third transit” point in the global trade chain.
EVFTA is considered a “golden door” helping Vietnam delve further into the EU market. In your view, how can this Agreement assist Vietnam in repositioning itself on the multipolar global trade map? And from your experience, how long does it usually take for such advantages to truly come into effect?
I believe it is difficult to fully assess the strategic significance of the Vietnam – EU Free Trade Agreement (EVFTA) in Vietnam’s path of future development.
This is not merely a trade agreement aimed at tariff elimination, but also a framework promoting legal harmonization, sustainable development, intellectual property rights protection, public procurement, and investment protection.
EVFTA may be considered a “reference framework” guiding Vietnam’s global economic integration, particularly with high-standard markets such as the EU.
This Agreement has allowed Vietnam to be seen as a strategic production and export hub for European companies seeking alternatives to China, especially in fields like electronics, textiles, furniture, and green technology.
“If Vietnam focuses on fulfilling its commitments and efficiently executing the EVFTA provisions, it could achieve deep integration into the EU’s value chain within the next five years.” – Dr. Oliver Massmann.
Having accompanied and observed Vietnam’s development journey for over 30 years, Dr. Oliver Massmann is not only a witness but also a contributor to legal reform, economic integration, and international investment promotion in Vietnam.
It can be seen that from the EVFTA’s implementation to Vietnam’s negotiations with international corporations, Dr. Oliver Massmann’s involvement has helped demonstrate Vietnam’s solid foundation for advancing its position in the global value chain.
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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.