Category: Vietnam – General

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

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

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

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

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

On June 25, 2024, the Vietnamese Government issued Decree 69/2024/ND-CP (Decree 69), effective from July 1, 2024, replacing Decree 59/2022/ND-CP. Decree 69 regulates electronic identification and authentication (EIA), with specific provisions for foreigners residing or having activities in Vietnam. This alert outlines key points for foreigners regarding electronic ID (e-ID) registration, procedures, and the availability of Vietnam’s IT infrastructure to support this process.
1. Subjects eligible for EIA
– Foreign nationals aged 6 years and older who have been issued a permanent residence card or temporary residence card in Vietnam are eligible for a Level 1 EIA account and a Level 2 EIA account upon request (Article 7.2 Decree 69)
– Foreign nationals under 6 years old who have been issued a permanent residence card or temporary residence card in Vietnam are eligible for a Level 1 electronic identification account upon request (Article 7.2 Decree 69)
2. The IT infrastructure in Vietnam to do this registration
Vietnam’s IT infrastructure supports e-ID registration through the VNeID application and the national EIA system managed by the Ministry of Public Security (MPS). The system is integrated with the National Public Service Portal (NPSP) and ministerial/provincial information systems, enabling seamless online administrative procedures.
3. Step-by Step e-ID Registration for Foreign Nationals
Foreigners can register for e-ID accounts (Level 1 or Level 2) through the following steps:
• Level 1 e-ID Registration (Article 11.1 Decree 69):
o Use a mobile device to access VNeID.
o Enter passport or valid international travel document details, along with an email address or phone number (if available), and provide the required information following the instructions in the National Identification App.
o Take a portrait photo via the app and submit the registration request.
o The EIA management agency will verify the information and notify the result via VNeID, a registered mobile phone number, or an email address within 01 working day (Article 13.4(a) Decree 69)
• Level 2 e-ID Registration (Article 11.1 Decree 69):
o Visit the immigration management agency under the Ministry of Public Security or the provincial-level police department, present their passport or valid international travel document.
o Provide required information on the application form, including a registered mobile phone number, email address (if available), and any additional details requested for integration into the National Identification App.
o The receiving officer will enter the provided information into the electronic identification and authentication system, capture a facial image, and collect fingerprints for verification against the National Immigration Database.
o The immigration management agency will submit the request for an EIA to the EIA management agency.
o The EIA management agency will notify the registration result via the National Identification App, a registered mobile phone number, or an email address within 3 working days (if biometrics exist) or 7 working days (if not) (Article 13.4(a) Decree 69)
o Foreign nationals under 14 years old, those under guardianship, or those requiring representation must visit the immigration management agency under the MPS or the provincial-level police department along with their guardian or representative to complete the Level 2 electronic identification account registration process.
• Activation: Activate the e-ID account within 7 days of receiving the registration result via VNeID. If not activated, contact the EIA help desk for support. (Article 14.1 Decree 69)
• For Minors or Wards: Parents or guardians must use their registered mobile number to register Level 2 e-ID accounts at a police station or ID issuance location.(Article 11.1(d), 11.2(e) Decree 69)
Level 2 e-ID accounts allow access to more extensive online services, including national and specialized databases, compared to Level 1 accounts, which are limited to basic personal information verification.
4. Notes
– Optional but Recommended: e-ID registration is not mandatory for foreigners, as it is issued upon request (Article 7.2, Decree 69). However, foreigners are encouraged to register to facilitate access to digital administrative services, such as online public services, banking, or civil transactions.
– Practical Considerations: While the VNeID app supports online transactions, its utility is limited. Many services still require hard-copy documents (e.g., passports or residence permits), and the app may face delays or errors due to outdated updates. Vietnam’s digital infrastructure, though advanced, is not fully digitized, leading to challenges like inconsistent app performance, language barriers, and reliance on physical paperwork. Foreigners should register for better access to public services but carry original documents as a backup for these practical hurdles.
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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. What are the most significant legal or regulatory innovations introduced in the 2024 amended Law on the Capital that specifically enhance Hanoi’s competitiveness in attracting high-quality FDI?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

KEY ELECTRICITY PRICE:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1- Decree 56

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

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

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