Vietnam – General – Page 32 – Duane Morris Vietnam

November 24, 2017November 24, 2017 by Dr. Oliver Massmann

Rechtsanwalt in Vietnam Dr. Oliver Massmann Solar Energie Handlungsplan um Deals mit dem neuen Stromkaufvertrag abschliessen zu koennen

Interview mit Dr. Oliver Massmann

Welche signifikanten Aenderungen bringt der neue PPA fuer den Solarenergie-Sektor?

Decision 11 fuehrt die Feed-in-Tariff (FiT) – Rate von 9,35 US Cents pro kWh ein. Die FiT Rate ist nur fuer Solarenergie-Projekte anzuwenden, welche ans Stromnetz angeschlossen werden sollen oder es bereits sind. Die Solarzellen muessen einen Wirkungsgrad, groesser als 15% besitzen. Die FiT Rate ist vom Wechselkurs zwischen dem VND und dem US-Dollar abhaengig. Die Rate bleibt waehrend des Jahres stabil. Jedoch wird sie von der vietnamesischen Staatsbank am letzten Arbeitstag des Jahres, fuer das folgende Jahr angepasst.

Mit dem Ergebnis, dass die finanzielle Planung einfacher wird und den Investoren gewisse Sicherheiten gewaehrt werden, wie zum Beispiel den Schutz vor Waehrungsfluktuation.

Welche Aspekte des neuen PPA haben sich im Vergleich zum Entwurf vom April 2017 veraendert?

Verglichen mit dem Entwurfs-PPA ist die FiT Rate jetzt in der finalen Version des PPA ausgegeben. Jetzt gibt es Referenz zu den Anpassungen der FiT im Fall von USD/VND Wechselkursfluktuationen.

Das Ministerium fuer Planung und Investitionen machte keine weiteren grossen Veraenderungen hinsichtlich der Schwaechen des Entwurfs vom April 2017.

Der Investor hat immer noch das groesste Risiko selbst zu schultern.

Ist der PPA bankfaehig?

Nein! Allgemein betrachtet ist der PPA in seiner finalen Version nicht bankfaehig.

Gibt es einen Weg den PPA bankfaehig zu machen?

Ja! Man kann den Solarenergie-PPA bankfaehig machen. Wir haben 20 Jahre Erfahrung mit dem Ausgestalten der Bankfaehigkeit fuer PPAs im Bereich der durch Gas und Kohle betriebenen Kraftwerke und im Windenergiebereich in Vietnam. Der Investor sollte alle Geschaeftskanaele nutzen und erfahrene Verhandlungsexperten zur Unterstuetzung einbinden, um den PPA bankfaehig zu machen. Es ist eine Sache der Verhandlung und Erfahrung in diesem Bereich. Decision 11 sichert Investoren die Moeglichkeit zur Verhandlung mit EVN zu. Der Preis bleibt, er ist nicht verhandelbar.

Abkommen, wie das EU – Vietnam Freihandelsabkommen (,,EVFTA“) oder die Trans-Pazifische Partnerschaft (,,TPP“), welches jetzt das Umfassende und Fortlaufende Abkommen der Trans-Pazifischen Partnerschaft genannt wird (,,CPTPP“), setzten einen grossen Meilenstein fuer die Bankfaehigkeit des PPA.

Das EVFTA wurde 2015 unterzeichnet und soll erwartungsgemaess bis 2018 von allen Mitgliedsstaaten unterzeichnet werden. Dann soll es wahrscheinlich 2019 in Kraft treten. Es wird erwartet, dass das EVFTA das BIP Vietnams erhoehen wird und die Wirtschaft von Vietnam liberalisiert. Ein weiterer Aspekt ist die Eliminierung von fast allen Zoellen (ueber 99% aller Tariflinien). Als Ergebnis wird es riesige Auswirkungen auf die Handelsentwicklung und das Interesse von Investoren geben.

Ein weiteres wichtiges Abkommen ist die CPTPP. Am 4. Februar 2016 wurde die TPP von 12 Staaten unterzeichnet. Die unterzeichnenden Staaten machten gemeinsam 28% des globalen Handels und 40% des weltweiten BIP aus. Jedoch hat US Praesident Trump zu Beginn des Jahres 2017 beschlossen, dass sich die USA von der TPP zurueckziehen wird. Die verbliebenden 11 Mitgliedsstaaten haben die Zukunft der TPP bei der APEC in Da Nang, Vietnam diskutiert und sind sich einig geworden, die TPP unter dem neuen Namen der CPTPP in Kraft zu bringen. Weiterhin beschlossen die Staaten ein neues Rahmenabkommen auszuarbeiten, welches Aenderungen zur vorherigen TPP mit sich bringen soll. Die groessten Veraenderungen wurden im Bereich des geistigen Eigentums durchgefuehrt. Der Schutz von Urheberrechten und der spezielle Schutz von Biologika oder Pharmazeutika beispielsweise wurde reduziert.

Dennoch bleibt der Anspruch der Marktzugriffsmoeglichkeiten dem der ersten TPP entsprechend. In bestimmten Mitgliedsstaaten muessen interne Verhandlungen stattfinden. Ferner brauchen die Staaten Zeit, um ihre Gesetze an die CPTPP-Regeln anzupassen. Die Verhandelnden haben sich das Unterzeichnen der ueberarbeitenden TPP fuer das erste Quartal in 2018 als Ziel gesetzt. Nach der Ratifizierung der CPTPP in mindestens 6 Laendern, tritt dieses in Kraft.

Mit der CPTPP wird Zugriff auf mehr Marktsektoren gewaehrleistet, als es durch die WTO der Fall ist. Genannt werden koennen hier z.B: Telekommunikation, Vertrieb von Waren, Herstellung und Verarbeitung. Trotzdem werden gewisse Restriktionen im Strom –und Energiesektor verbleiben, die im Folgenden noch diskutiert werden.

Durch das EVFTA und die TPP wird Vietnam Zugriff auf weiteste Teile des internationalen Marktes erhalten. Damit bekommt Vietnam die Moeglichkeit seine Import –und Exportraten (ein Anstieg um bis zu 37% bis 2025 wird erwartet) und die auslaendischen Investitionen zu erhoehen.

Ein weiteres notwendiges Instrument ist das Investor-State Dispute Settlement (ISDS), welches unter dem EVFTA und der TPP Anwendung finden wird. Dadurch erhalten Investoren das Recht, bei investitionsbezogenen Streitfaellen, Ansprueche im Investitionsland, mithilfe internationaler Schiedsgerichtsbarkeit einzuklagen. Die Schiedsgerichtsprozesse sollen oeffentlich gemacht werden um Transparenz bei Streitfaellen gewaehrleisten zu koennen. Bezueglich der TPP wurde der Geltungsbereich des ISDS auf ,,investment agreements“ (Investitionsvertraege) und ,,investment authorization“ (Investitionsbewilligung), in der Diskussion bei der APEC-Veranstaltung am 10. und 11. November 2017, reduziert.

Als Schlussbemerkung: Die Bankfaehigkeit des PPA wird durch die Wirkung des EVFTA und der TPP in den naechsten Jahren verbessert, wenn der legislative Rahmen dafuer geschaffen wird. Die Wirtschaft wird durch den Zugriff auf weitere Teile des globalen Marktes und durch weitere auslaendische Investitionen dynamischer werden. Mit der Durchfuehrung des ISDS bei der TPP werden die Investoren mehr Sicherheit in Bezug auf Streitschlichtung und fuer den Schutz vor den Risiken des internationalen Handels besitzen. Mit dem Ergebnis, dass Banken eher gewillt sein werden PPAs zu finanzieren.

Unsere Empfehlungen: Bisher ist die Bankfaehigkeit nicht in dem Masse gegeben, wie sie erwartet wurde. Sie sollten jedoch vor den kommenden Abkommen gewarnt sein, die grosse Auswirkungen auf das Wirtschaftswachstum und die Wirtschaft selbst haben werden. Wenn sich alles weiterhin in die richtige Richtung entwickelt wie es bisher der Fall ist, wird der PPA in der Zukunft bankfaehiger werden und es werden sich bessere Investitionsmoeglichkeiten daraus ergeben.

Wie wurde das Problem der Bankfaehigkeit in der Vergangenheit gehandhabt?

Die TPP und das EVFTA sind nicht die einzigen Abkommen, die die Bankfaehigkeit des PPA verbessern.

Vietnam und die USA unterzeichneten 1999 das Bilaterale Handelsabkommen (BTA), welches im Jahr 2001 in Kraft trat. Es war ein riesiger Erfolg und ein wichtiges Abkommen fuer die Wirtschaft von Vietnam. Es war die erste Oeffnung des vietnamesischen Marktes nach aussen und fuer die Schaffung neuer Geschaeftsmoeglichkeiten und fuer neue Standards von Finanzierungsprojekten wichtig.

Ein weiterer wichtiger Fakt ist der WTO-Beitritt Vietnams 2007. Dieser hat die Handelsbeziehungen zwischen Vietnam und anderen Nationen, durch das Entfernen von Handelsschranken und durch die Verpflichtung zur Nicht-Diskriminierung verbessert. Ferner war es ein politisches Zeichen, den Willen Vietnams fuer eine Integration in den internationalen Handel, durch das Aktzeptieren internationaler Handelsregeln, auszudruecken.

Fuer das Erfuellen der Verpflichtungen sind Anpassungen der Gesetze notwendig, um die Funktionsfaehigkeit und Effizienz der Projekte zu gewaehrleisten. In den letzten Jahren wurden viele wichtige Gesetze verabschiedet. Diese verhalfen zur Verbesserung der Bankfaehigkeit des PPA, z.B: das 2014 Investitionsgesetz, das 2014 Unternehmensgesetz, das 2012 Arbeitsgesetz, etc.

Zusaetzlich wurde 2011 das rechtliche Rahmenwerk fuer Windkraftprojekte eingefuehrt.

Unsere Empfehlungen: Sie sollten bestehende internationale Abkommen als Basis fuer Verhandlungen nutzen. Erinnern sie sich an vergangene erfolgreiche Faelle und behalten Sie die Schwierigkeiten der Projektentwicklung im Auge. Mit einer gut strukturierten Projektentwicklung ist es moeglich den PPA bankfaehig zu machen.

Was sind die Hauptprobleme des PPA fuer Investoren?

Mit den zahlreichen Solarprojekten, die nur auf wenige zentrale Standorte verteilt sind, sollte die Kapazitaet der vorhandenen Einrichtungen fuer die Stromaufnahme, Grund zur Sorge fuer den Transfer von Risiken zu den Stromerzeugern darstellen.

EVN besitzt eine Monopolstellung fuer den Vertrieb, Reparationen, Wartung, Inspektion und Durchfuehrung des Stromverteilungsnetzes.

Es besteht es grosses Risiko aufgrund des Mangels einer Garantie der Regierung ueber EVNs Zahlungsverpflichtung in Faellen, in denen die Energie produziert wird, aber EVN aufgrund technischer Schwierigkeiten den Strom nicht weiterleiten kann. Eine Loesung fuer die Ueberbrueckung dieser Garantieluecke kann die Nutzung des MIGA-Backup der Weltbank (Mulitlaterale Investitions Garantie Behoerde) oder die Unterstuetzung durch die Asean Entwicklungsbank darstellen.

Gruende fuer eine Stromverteilungstoerung kann z.B. sein: Faelle hoeherer Gewalt oder Vertragsbeendigungen. EVN kann die Einspeisung des Stromes in Faellen von Wartung oder Reparationen verweigern.

Circular 16 enthaelt keinerlei Garantien oder Kompensationen fuer die Investoren bei Eintritt der genannten Faelle.

Unsere Empfehlungen fuer die Vermeidung potenzieller Risiken:

Nehmen Sie sich vor dem Veto-Recht EVNs und den vietnamesischen Behoerden in Acht! Seien Sie geduldig. Entscheidungsprozesse in Vietnam gehen durch viele Stadien und brauchen ihre Zeit.

Es werden Konflikte zwischen den Investoren und EVN entstehen, da die Risiken auf den Investor verschoben werden. Welche Konfliktbewaeltigungsmoeglichkeiten beinhaltet der

PPA fuer Investoren?

Grundsaetzlich wird der PPA durch das vietnamesische Gesetz bestimmt. Er beinhaltet keine Regelungen fuer eine internationale Streitbeilegung.

Konflikte koennen dem Ministerium fuer Elektrizitaet und Erneuerbare Energien mitgeteilt werden. Wenn diese Option fehlschlaegt, koennen Investoren bei der Electricity Regulatory of Vietnam (ERAV) Hilfe ersuchen, oder Antrag bei einem vietnamesischen Gericht stellen.

Der PPA erlaubt nationale und offshore Schiedsgerichtsbarkeit. Jedoch liegt es in EVNs Haenden, ob diese Moeglichkeit im Einzelfall bestehen wird.

Unsere Empfehlungen fuer erfolgreiche Verhandlungen mit EVN: Sie muessen verstehen, wie EVN arbeitet und was deren Ziele sind. Seien Sie sich EVNs Monopolstellung im Energiesektor in Vietnam bewusst. Versuchen Sie nicht ,,das Rad neu zu erfinden“.

Ueberfordern Sie EVN nicht mit zu ambitionierten Intentionen hinsichtlich des Enwicklungsantrages. Sie koennten von zu vielen neuen Dingen veraengstigt sein. Verlassen Sie sich auf funktionierende erfolgreiche Strategien der Vergangenheit und stellen Sie Referenz zu erfolgreichen Projekte her.

Welche Sicht besitzt das MoIT hinsichtlich der Schwaechen des PPA?

Das MoIT ist sich der Schwaechen des PPA bewusst und weiss, dass der PPA Investoren nicht in der Art anziehen wird, wie es zur Energiebedarfsdeckung noetig waere und um Probleme hinsichtllich der Entwicklung erneuerbarer Energien bewaeltigen zu koennen.

Das MoIT weiss ferner, dass der Solarenergie-Sektor in Vietnam grosses Potenzial besitzt.

Letztendlich erwartet das MoIT das Anziehen kleiner Investitionsprojekte, bei denen die Bankfaehigkeit fuer Investoren nicht von all zu grosser Bedeutung ist.

Ist die Sicht des MoIT realistisch?

Unserer Meinung nach, ist die Sicht des MoIT nicht realistisch. Diese koennte zu unschaffbaren Projekten fuehren, aufgrund der bestehenden Risiken der finalen Version des PPA und durch die nicht vorhandenen versichernden oder unterstuetzenden Leistungen von Banken. Darueberhinaus haengt der Erfolg von Projekten, von dem Ergebnis der Verhandlung mit EVN ab.

Welche Ratschlaege koennen Sie zukuenftigen Investoren bezueglich der Projektentwicklung geben?

Nehmen Sie sich in Acht! Sie muessen das Projekt auf einer Schritt-fuer-Schritt Basis entwickeln und sich auf die Verhandlungen mit EVN vorbereiten, falls Sie sich entscheiden, in ein ans Stromnetz eingegliedertes Energieprojekt zu investieren.

Bitte werden Sie sich an den Autor Dr. Oliver Massmann unter omassmann@duanemorris.com wenn Sie Fragen haben. Dr. Oliver Massmann ist co-Generaldirektor von Duane Morris LLC.

Vielen Dank!

November 20, 2017 by Dr. Oliver Massmann

Vietnam – Solar Energy – Action plan for getting deals done with the new Power Purchase Agreement

Interview with Dr. Oliver Massmann\

1. Which significant changes does the new PPA contain for the solar energy sector?

Decision 11 introduces the Feed-in-Tariff (FiT) rate of UScents 9.35 per kWh. The FiT rate is only applicable for on-grid solar power project with efficiency of solar cells greater than 16% or with efficiency of the modules greater than 15%. The FiT rate depends on the currency exchange rate of the Vietnamese Dong and the US-Dollar. The rate remains the same throughout the whole year. It is adjusted by the Vietnamese State Bank on the last working day of the year for being used in the following year.

As a result, the financial planning is easier and it grants certain security for investors such as protection against currency fluctuation.

2. Which aspects in the new PPA have changed compared with the draft PPA from April 2017?

Compared with the draft PPA, the FiT rate is now indicated in the final version and there is reference to the adjustment of the FiT in case of USD/VND exchange rate fluctuation.

The MoIT made no big changes regarding the shortcomings of the draft of the PPA from April 2017.

The investor still has to bear the biggest risk.

3. Is the PPA bankable?

No, in general the PPA is not bankable in its final version.

4. Is there a way to make it bankable?

Yes, it is possible to make the PPA bankable. We have 20 years of experience making PPAs bankable for gas and coal fired power plants and wind energy plants in Vietnam. The investor should use all business channels and experienced negotiators to make the PPA bankable.

It is a matter of negotiation and experience. Decision 11 is granting investors the possibility to negotiate the conditions with EVN. The price remains fixed.

Agreements such as the EU – Vietnam Free Trade Agreement (“EVFTA”) or the Trans-Pacific Partnership (“TPP”), which is now called the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (“CPTPP”), lay a big milestone for making the PPA bankable.

The EVFTA was signed in 2015 and is expected to be ratified by all member countries by 2018. It is probably going to take effect in 2019. It is estimated to generate an increasing GDP and to liberalize the economy of Vietnam. Another aspect is the elimination of almost all custom duties (over 99% of all tariff lines). As a result, there will be a huge impact on trade development and the interest of investors.

Another important agreement is the CPTPP. On 4^th February 2016 the TPP was signed between 12 countries. The signing nations made up 28% of the global trade and 40% of the global GDP. However, at the beginning of 2017, the US President Trump decided to withdraw from the TPP. The remaining 11 member states discussed the future of the TPP in APEC event in Da Nang, Vietnam and agreed to push ahead with the TPP but now under the name of CPTPP. Furthermore, the states agreed to work out a new framework agreement, which includes changes to the previous TPP agreement. The largest amendment was made in the field of intellectual property, for example, easing the protection of copyright or the special protection of biologics and pharmaceuticals.

However, the level of market access is still the same as in the first TPP. For some countries, further negotiations have to take place and they need time to adapt their laws to the CPTPP rules. The negotiators have set the goal of signing the revised TPP by the first quarter of 2018. After 6 countries have ratified the partnership, it will come into effect.

With the CPTPP, market access to more sectors will be opened than the WTO such as telecommunication, distribution of goods, manufacturing and fabrication. However, there will remain a few restrictions in the power/energy sector as discussed below.

As a result of the EVFTA and the TPP, Vietnam will get access to a huge part of international markets. This gives Vietnam the possibility to increase the amount of imports and exports (estimated up to 37% higher until 2025) and to improve foreign investments.

Another essential instrument is the Investor-State Dispute Settlement (ISDS)[N1] which is going to be applied under the EVFTA and the TPP. Under that provision, for investment related disputes, the investors have the right to bring claims to the host country by means of international arbitration. The arbitration proceedings shall be made public as a matter of transparency in conflict cases. In relation to the TPP, the scope of the ISDS was reduced by removing references to “investment agreements” and “investment authorization” as result of the discussion about the TPP’s future on the APEC meetings on 10^th and 11^th November 2017.

As a conclusion, the bankability of the PPA will get enhanced as a consequence of the EVFTA and TPP in the next few years if the legislative framework is being reformed in the right direction. The economy will become more dynamic because of access to other markets and further foreign investments. With the implementation of the ISDS in the TPP, investors will be more secured in relation to dispute resolution and protection against the risks of international trading. As a result, banks will be more willing to finance PPAs.

Our recommendations: For now, the bankability of the PPA is not as it is expected. But you should be aware of the upcoming agreements which will lead to a big impact on the economy growth and the economy itself. If everything is improving in the right direction as it is now, the PPAs will be more bankable in the future and there will be better investment opportunities.

5. How was the bankability issue handled in the past years?

The TPP and the EVFTA are not the only agreements regarding the bankability of the PPA.

Vietnam and the USA signed the Bilateral Trade Agreement (BTA) in 1999 which was implemented in 2001. It was a huge success and very important agreement for the economy of Vietnam. It was the first opening of the Vietnamese market and important for the creation of more business opportunities and new standards for financing projects.

Another important fact was Vietnam’s accession to the WTO in 2007. This has improved trade relations between Vietnam and other countries by removing trade barriers and the commitment to non-discrimination. It was also a political sign to show Vietnam’s will to get integrated in the international trade by accepting international trading rules.

To be able to fulfill the commitments, it is necessary to make legislative adjustments and adopt laws that ensure the viability and efficiency of the projects. In the last years, many important laws have been introduced. They have helped to enhance the bankability of the PPA, for example, the 2014 Investment Law, 2014 Enterprise Law, 2012 Labor Law, etc.

In addition, in 2011, the legal framework for wind power projects was introduced.

Our recommendation: You should use existing international agreements and local laws as the bases for negotiation. Remember to rely on existing precedents and keep in mind that there are some difficulties for project development. But with a well-structured project development, it is still possible to getting a bankable PPA done.

6. What are the main risks of the PPA for investors?

With many solar projects currently focused on a few central locations, the capacity of existing facilities to absorb power must be a cause of some concerns given the PPA’s transfer of such risk to power producers.

EVN holds a monopoly of distribution, repair, maintenance, inspection and examination of the grid.

There is a big risk because of the lack of the government’s guarantee for EVN’s payment obligation in cases energy is provided from the producer but cannot be transmitted due to interruption of EVN’s grid connection. One solution for bridging that guarantee gap can be the use of the MIGA backup from the Worldbank (Multilateral Investment Guarantee Agency) or backup from the Asean Development Bank.

Reasons for the interruption can be, for example: force majeure or termination of contracts. EVN can refuse transmitting the energy in cases of maintenance or repairing.

Circular 16 does not contain any guarantee or compensation for investors in these cases.

Our recommendations for avoiding potential risks: Be aware of veto rights of EVN and Vietnamese authorities. You have to be patient because the decision making process in Vietnam goes through many levels and takes time.

7. There will be conflicts between the investors and EVN because of the shift of risks to the investors. Which means of conflict resolution does the PPA grant to investors?

In general, the PPA is governed by the Vietnamese law.

The PPA does not provide for international arbitration as a means of dispute resolution.

Conflicts can be submitted to the Department of Electricity and Renewable Energy. If this option fails, investors can seek help at the Electricity Regulatory Authority of Vietnam (ERAV) or with application to a Vietnamese court.

The PPA implicitly allows the involvement of domestic and offshore arbitration. However, whether it can be a prior agreement with EVN in the PPA or only until there is an arising dispute simply lies in the hands of EVN.

Our recommendations for successful negotiations with EVN: You have to understand how EVN is working and what their targets are. Be aware of their monopoly position in the energy sector in Vietnam. Don’t try “to reinvent the wheel”!

Do not overexert them with too ambitious intentions related to the development proposal. They might be afraid of so many new things. Rely on workable precedent strategies and make reference to successful projects.

8. Which view does the MoIT hold regarding the shortcomings of the PPA?

The MoIT knows about the shortcomings of the PPA and is aware about the fact that the PPA will not attract investors to meet the power demand or to solve problems regarding the development of renewable energy.

The MoIT also knows that the solar energy sector in Vietnam has a lot of potentials.

Finally, the MoIT expects to attract smaller investment projects where bankability is not really an issue for the investors.

9. Is the view of the MoIT realistic?

In our opinion, the MoIT’s view is not realistic. It may lead to unfeasible projects because of the existing risks of the final version of PPA and without assurance for supportive services from a bank. Furthermore the success of projects depends on the result of the negotiation with EVN.

10. Which advice can you give to future investors regarding their project development?

Be aware! You have to take care of your project on a step-by-step-base and get well prepared for the negotiations with EVN when you decide to invest in an on-grid power project.

***

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.

Thank you!

November 17, 2017 by Dr. Oliver Massmann

VIETNAM – BOOM TIME – The Trans Pacific Partnership Agreement now becomes the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership – What is next?

Overview on the Trans Pacific Partnership Agreement (TPP) – now the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP)

The TPP was originally known as the Trans- Pacific Strategic Economic Partnership concluded in 2006 among Singapore, New Zealand, Chile and Brunei (P-4 agreement) as a means to promote trade liberalization in the Asia- Pacific Region. As its name indicates, the original purpose of the agreement was only to address economic issues. As the number of participating countries in the P-4 agreement increased, starting with the United States in September 2008 and other countries to follow being Australia, Peru, Vietnam, Malaysia, Canada, Mexico and Japan until July 2013, the agreement is agreed to be “a comprehensive, next-generation regional agreement that liberalizes trade and investment and addresses new and traditional trade issues and 21st-century challenges” by TPP Trade ministers. In June 2015, the United States approved the trade promotion authority for President Obama. The Agreement finally becomes as it is today through tough negotiation rounds, while the last round in Atlanta in September 2015 was considered the most intensive one. The TPP was already concluded on 06 October 2015. However, in January 2017, right after President Trump took his office, the United States formally expressed its withdrawal from the agreement, leaving other 11 parties with the decision to continue the agreement without the United States or not. In November 2017, during APEC meeting in Da Nang, Vietnam, ministers from 11 countries decided to push ahead with the TPP with its new name – CPTPP with only 20 items suspended out of an around 5000-page document, mainly in the Intellectual Property chapter.

CPTTP will help Vietnam make good use of international cooperation opportunities, balance relationships with key markets, approach larger markets including Japan and Canada, boost import-export, reduce import deficit, and attract foreign investment. In addition, CPTTP will also help Vietnam’s economy allocate its resources more effectively, enabling active supports to the processes of restructuring, innovation and improving regulations, and improve administrative reforms.

What makes CPTPP the template for next-generations trade agreements – What are beyond the WTO?

Freer trade zone

Commitments in Trade in goods

Tariff and non-tariff barriers are reduced and removed substantially across all trade in services and goods under the CPTPP. Import tariffs are reduced for 100% goods traded among member states, with more than 90% being eliminated immediately when the Agreement takes effect. The CPTPP also covers issues which have never been addressed in the WTO, including export duties, import duties for re-manufactured goods, market access for re-furbished goods, stricter regulations on import and export licensing, monopolies and goods in transit.

Lower tariff barriers from the CPTPP will give Vietnam greater access to large consumer markets in Japan, Canada and Australia. The potential positive effect on trade could be transformative, with estimates that the CPTPP will boost Vietnam’s exports by over 37% until 2025.

Commitments in Trade in services and Investment

All 11 member states give consent to a liberalized trade in this area. More sectors are opened in the CPTPP compared with the WTO, such as telecommunications, distribution and manufacturing sectors.

In addition, besides incorporating basic WTO principles (national treatment (NT), most-favored nation treatment (MFN), market access, and local presence), the CPTPP takes a negative approach, meaning that their markets are fully open to service suppliers from other CPTPP Parties, except otherwise indicated in their commitments (i.e, non-conforming measures). In order to make such reservations, the member state must prove the necessity of such preservation and negotiate with other member states. If approved, the non-conforming measures are only limited to such list, except for measures in certain sensitive sectors which are included in a separate list. Member states are only allowed to adopt policies that are better than what they commit (ratchet principle). The CPTPP also includes obligations on removal of performance requirements (i.e., no conditions on local content requirements, export conditions, use of certain technology, location of the investment project, etc.) and reasonable requirements on senior management and board of directors. Notably, the CPTPP Chapter on Investment for the first time makes it very clear and transparent concerning the MFN principle, that countries operating in multi-state regime must give foreign investors the best investment conditions of all states, regardless of the state where the investment takes place. Investors are also allowed to petition against the Government from the investment registration stage.

Textiles

Textiles are among Vietnam’s core negotiating sectors. According to suggestions by the United States, negotiations on textiles were conducted separately from negotiations on market access for other goods. To be qualified for CPTPP preferential tariff treatment, the CPTPP applies the yarn-forward principle, meaning textile products must be produced in CPTPP countries from yarn forward. However, the CPTPP includes exceptions that allow (i) certain materials to be sourced from outside CPTPP (“Short supply list”), (ii) certain manufacturing phases (for example, dying, weaving, etc.) to be conducted outside CPTPP; and (iii) one country to be able to use non-CPTPP materials in exchange for its export of certain textile goods to another country.

Government procurement

The CPTPP makes a list of government entities and agencies whose procurement of a particular̉ goods and services at a particular amount must be subject to public tender. This chapter includes NT and MFN principles, removes tender conditions favoring local tenders such as using local goods or local suppliers, conditions on technology transfer or two-way trade and investment, etc. These rules require all parties, especially Vietnam, in the context of China’s bidders predominantly win the bids with cheap offer price but low-quality services, to reform their bidding procedures and protect their own interests by disqualifying tenders with poor performance and low capacity.

Investor-State Dispute Settlement

The CPTPP aims at protecting investors and their investment in the host country by introducing requirements on non-discrimination; fair and equitable treatment; full protection and security; the prohibition of expropriation that is not for public purpose, without due process, or without compensation; the free transfer of funds related to investments; and the freedom to appoint senior management positions regardless of nationality. For the first time investors may sue the Government for its violation of investment-related commitments.

CPTPP also includes procedures for arbitration as means of settling disputes between investors and the host state. It covers new provisions compared with existing agreements such as transparency in arbitral proceedings, disclosure of filings and arbitral awards, and participation of interested non-disputing parties to make amicus curiae submissions to a tribunal. Arbitral awards are final, binding and fully enforceable in CPTPP countries.

Application of the CPTPP and older/ existing agreements

Member states of the CPTPP acknowledge existing rights and obligations of each member under existing international agreements to which all CPTPP member states are parties (for example, the WTO Agreement, NAFTA, or bilateral agreements) or at least two member states are parties. In case there is any consistency between a provision of the CPTPP and a provision of another agreement to which at least two CPTPP member states are parties, these parties will consult with each other to reach a mutually satisfactory solution. Please note that the case where an agreement provides more favourable treatment of goods, services, investments or persons than that provided for under the CPTPP is not considered as an inconsistency.

Implementation deadline of the CPTPP

Brunei, Canada, Malaysia and Vietnam still have some outstanding issues, so further negotiations are necessary. Canada and Japan will also have to agree on auto rules in the CPTPP. However, negotiators have set the goal of signing the CPTPP in the first quarter of 2018. After that, all 11 countries will have to ratify it before it can come into effect.

***

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. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

THANK YOU !

November 10, 2017 by Dr. Oliver Massmann

CASINO BUSINESS UNDER STRICT REGULATIONS

On 20 January 2017, the Government issued a long-awaiting casino business decree No. 03/2017/ND-CP (Casino Decree). Although the issuance of the Casino Decree after almost 10 years of waiting opens a promising market to casino industry, foreign investors have been very hesitant and in the waiting mode for further clarification documents from competent authorities. Finally after more than six months since the Casino Decree’s effective date, on 05 October 2017, the Ministry of Finance issues Circular No. 102/2007/TT-BTC (Casino Circular) guiding the Casino Decree. The Casino Circular helps complete the regulatory framework for casino business in Vietnam and put the young industry in momentum growth.

Local Vietnamese eligible for gambling

Local Vietnamese will be permitted to gamble at specific casinos approved by competent authority on a 3-year trial basis (i.e. – calculating from the first day opening of the authorized integrated resorts). According to the public media, only 02 casinos are open to Vietnamese individuals on a 3-year piloting scheme, which are located within complex resorts in Phu Quoc District, Kien Giang Province (South Vietnam) and Van Don District, Quang Ninh Province (North Vietnam). A small likelihood that Ho Tram Resort would join the list.

Local players are permitted to enter casinos if they essentially satisfy the following conditions: (i) 21 years old or above; (ii) monthly salary of VND10 million or more (equivalent to approximately US$440); (iii) paying entrance fee of VND1 million (US$44)/24 hours/ person or VND25 million (USD1,100)/ month/ person; and (iv) not being objected in writing by siblings, spouses and/or biological and adopted parents to play at casinos. However, these conditions, especially the monthly income requirement, are complicated to prove and were not previously dealt with in the Casino Decree. The Casino Circular then substantiates this requirement as below:

– Having documents (tax declarations/ confirmation by tax authorities) proving taxable income at level 3 or above pursuant to the Law on Personal Income Tax;

– Notarized house/ assets lease contract, where the total monthly rent is VND 10 million or above;

– Notarized bank savings book or bank statement of savings with a term of one year or more and having monthly interest from VND10 million or above;

– Other documents proving that the usual monthly income of players being VND 10 million or above; or

– In case a single document mentioned above is not sufficient to prove the VND10 million monthly income, players can submit several documents to prove such total monthly income.

Casinos under strict supervision of tax authorities

Casino-operating enterprises must arrange a place in the casino with necessary means and equipment for state authorities to perform the casino management and surveillance directly or via electronic equipment and camera system. Transactions under supervision are monetary transactions and/ or tokens related ones. These transactions must also be recorded ad reported to the tax authorities.

In addition, state authorities also supervise, either directly or via electronic and camera system, the inventorying and calculation of transactions performed at cashier area and/ or areas for counting and storing cash and tokens.

Foreign currency control in casino business

Casino-operating enterprises must exchange Vietnamese Dong or other currencies for tokens and vice versa for players.

The exchange rates for Vietnamese Dong or other currencies to tokens and vice versa must be based on the purchasing rates on the transaction date announced by the licensed bank where the casino-operating enterprise’s specialized foreign currency account is opened. In case the transaction date falls on days off or public holidays, the exchange rates must be based on the rates announced on the previous transaction date.

A casino-operating enterprise may accept bank cards of players to exchange for tokens when they play in the casino. The transaction must be in Vietnamese Dong.

In case the Vietnamese players win the prizes, they are only allowed to receive the prize in Vietnamese Dong (whether in cash or by bank transfer). This is not the case for foreign players where they can also receive the prize in foreign currency.

Conclusion

The issuance of the Casino Decree and the Casino Circular timely open Vietnam’s young casino industry to attract foreign investment and limit foreign currency loss to other neighbouring countries. According to recent statistics, Vietnam loses about USD800 million in tax revenue annually from gamblers who cross the border to Cambodia. This is even more critical as many countries in the region already allows casino business such as Macau, Singapore, Philippines, Korea and recently Japan. In such scenario, the Vietnam Government still has a lot to do in order to not only retain Vietnamese players in the market but also attract foreign players who are already familiar with other casinos in the region.

***

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

Thank you very much!

October 23, 2017 by Dr. Oliver Massmann

Lawyer in Vietnam Dr. Oliver Massmann – Solar Power – Payment mechanism from Vietnam Electricity (former Electricity of Vietnam, EVN) to Solar IPP – What you must know:

1. The periodicity of payment for energy sales by client (EVN) to IPP

The IPP and EVN will together read the metering result on a monthly basis on a mutually agreed date to determine the power delivered and received in a month. The IPP will record the result in writing and send it together with the invoice to EVN within 10 working days from the result reading date. The payment deadline for EVN is within 15 working days from the receipt of the IPP’s invoice.

2. Frequency of price adjustment such that payment in VND reflects equivalent USD value

It is not clear in both Decision 11 and Circular 16, but we understand that the adjustment will be made at the time of payment for grid connected projects. For on-grid rooftop projects, the adjustment is made annually. Provision have been included in previous power project documents.

3. Mechanism for price adjustment (e.g. is applicable price adjustment is weighted average of adjustment period such that seller is not exposed to changes to VND/USD exchange rate).

For on-grid projects, the adjustment is made at the time of payment. For on-grid rooftop projects, the adjustment is made annually. It means that the FiT for on-grid rooftop projects remains the same in a year. The FiT for on-grid rooftop projects for the next year will be adjusted based on the announced VND/USD exchange rate on the last working day of the preceding year.

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.

THANK YOU !

October 4, 2017 by Dr. Oliver Massmann

VIETNAM – MAIN ISSUES RESTRAINING INFRASTRUCTURE DEVELOPMENT AND OUTLOOK ON THE EUROPEAN UNION-VIETNAM FREE TRADE AGREEMENT (EVFTA)

Vietnam’s ability to continue expanding its economy is linked to competitiveness. It is clear that supporting institutional regulatory reform and infrastructure development will ensure economic growth in the country. In practice, this approach is feasible by promoting public-private partnership (PPP). This goal includes a long-term investment in infrastructure that harmonizes PPP investors and Vietnamese Government’s interests.

By way of illustration, State-owned enterprises (SOEs) remain dominated in Vietnam. However, due to budget pressure, the government is committed to reform SOEs. Accelerating the development of foreign investment requires new approach to create a favorable legal framework for PPP. The issuance of a long awaited Decision 58/2016/QD-TTg (Decision 58) on classification of SOEs, is expected to facilitate the process.

Another key aspect to consider is SOE equitization for revenue reasons. In 2016, the State received approximately USD800 million from equitization and allocated some of these funds to reduce budget deficit.[1] Although the equitization process started in 1992, only around 2,600 firms have been equitized in the first 13 years of that program.[2] Meanwhile, the goal during 2014-2015 was to equitize 432 SOEs.[3] According to Decision 58, it is expected to rearrange 103 SOEs and equitize 137 SOEs within 2016-2020 period.

The historic poor performance of SOEs equitization is about to change gradually. Furthermore, there are some questions to address from the investors perspective since the State plans to retain ownership from below 50% (in 106 enterprises), 50%- 65% (in 27 enterprises) and above 65% (in 4 enterprises) by 2020 across different sectors.

Despite the efforts to enhance investments in infrastructure and energy, many issues related to the implementation of current regulations that affect transparency and enterprise value remain unresolved, namely:

Share price

Currently share price as determined by the Government must be market price. There are cases when market price is determined based on the listed price or transaction price in the UpCom market. However, such market price determination is not fair and accurate when the shares are sold to strategic shareholders due to the nature of the participants in the securities markets (i.e., participants are mainly financial institutions and speculators) as well as the minority percentage of listed stock compared with the total shares of the listed companies. Indeed, share price when sold to strategic shareholders must be the lowest successful bid price in an IPO. In addition, share price of joint stock companies listed on UpCom market must not be within the price range of that securities code on the transfer date.

Public-private partnership (PPP)

Implementation of Decree 15 on PPP has shown certain limitations. Opening a new chapter of PPP requires further work in understanding strategic factors that make PPP effective and ensure that key risk minimizing solutions are undertaken properly.

Bankability is a crucial issue during the project structuring phase. The requirements for a project to be bankable differ from sector to sector or by jurisdictions. However, there are common factors that render the project bankability and raise its risk exposure such as restrictions on mortgaging land use rights to foreign lenders, complex investment approvals to investors (e.g., land acquisition process), and payment ability of an SOE off-taker. Therefore, practical preferential policies should be issued to strengthen PPP investment.

In addition, investment in the form of PPP is more complex than public investment. However, in the management of PPP projects, public investment laws and regulations have currently been applied, resulting in lengthy investment procedures. Furthermore, there is a problem regarding the limited resources allocated to authorized state agencies (ASAs). It is expected that Decision 522 on managing and using project development fund raised by Asia Development Bank and Agence française de développement (AFD) will help to support the ASAs in preparing for the project development.

With regard to infrastructure projects, the current legislation allows some flexibility regarding the use of incentives under the Investment Law. Nevertheless, the principle of the PPP framework is to develop highly-efficient projects through loans from private investors such banks or credit institutions and thus releasing the State from financial burdens. If local companies borrow from commercial state banks, this will not meet the PPP principle. In addition, the limited attractiveness of PPP framework also deter local and foreign non-State banks from offering loans.

It is worth considering a risk allocation framework that harmonizes with the general principle that risks should be allocated to parties that are in the best position to manage them or make reasonable determination of that risk.

Power project developments

One issue is project implementation timeline in Circular 43/2016/TT-BCT. Specifically, this legal instrument requires project development commitments from investors and requirements to seek the MOIT’s approval when there are delays in the project implementation. According to Circular 43, if a BOT project falls behind the agreed timeline, the adjustments will only be approved under limited exceptions such as (i) force majeure events; (ii) the misconduct of competent authorities or (iii) the misconduct of a third party. In practice, the schedule agreed between the MOIT and investors is difficult to meet as a result of complex project preparation process as well as involvement of many related parties.

Outlook on the EVFTA

The market access commitment in the EVFTA goes largely beyond both those in the WTO and other FTAs ratified by Vietnam, thereby giving EU enterprises the best possible access to the Vietnamese market. Accordingly, provisions on SOEs are considered the most ambitious disciplines that Vietnam has ever reached. Such rules will put private enterprises on an equal level with enterprises where the Government is the owner. Under the EVFTA, EU companies will be permitted to bid for contracts in infrastructure, power distribution, railway and healthcare projects the same as Vietnamese bidders.

Conclusion

Investment in infrastructure is considered as a strategic measure to reach sustainable development in Vietnam. Indeed, the government has improved the legal framework to support PPP model and privatization of energy and power sectors. However, it needs a much clearer plan in improving the quality of new regulations in order to ensure a fair and transparent process. Furthermore, the equitization progress seems to be disappointing since only 52 SOEs were equitized in 2016. In this context, to ensure the equitization efficiency, it is urgent to address the impact of these remaining issues on project’s viability and aim at the highest level of risk management. Finally, Decision 58 represents a good opportunity for EU companies to engage in large- scale PPP projects. However, investors need to carefully conduct a due diligence before any investment.

***

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.

Thank you!

September 18, 2017 by Dr. Oliver Massmann

VIETNAM SOLAR POWER – THE FIRST OFFICIAL PPA – VIETNAM INVESTMENT REVIEW INTERVIEWING DR. OLIVER MASSMANN

1. Could you point out for me the good point of this solar PPA?

While the previous draft solar PPA does not require the Feed-in-Tariff (FiT) conversion between USD and VND be according to the exchange rate at the time of payment, this newly issued solar PPA repeats the language in Decision No. 11/2017/QD-TTg (Decision 11) that the FiT will be adjusted according to the fluctuation in the VND/USD exchange rate. This is consistent with what is stipulated in Decision 11.
In addition, I note that while the FiT for power output from on-grid projects is adjusted according to the fluctuation in the VND/USD exchange rate, meaning at any time during the year, it is not the same for rooftop projects. Instead, the mentioned FiT for excessive power output generated from rooftop projects remains the same throughout the first year of operation, and the new FiT for the next year will be adjusted based on the announced VND/ USD exchange rate of the last working day of the previous year.

2. Are there any concerns of investors that the solar PPA has not solved?

The rights of the investors are not fully protected in the following cases:
– when EVN is in the process of installing equipment, or making repairs, replacement, inspection or examination of the grid connection of the seller’s power plant;
– when the transmission grid or the distribution grid connected to EVN’s grid has a problem or grid equipment directly connected to EVN’s transmission grid or the distribution grid has a problem; and
– when EVN’s grid needs support to recover after the incident in accordance with the provisions of operation of the national power system and the standards, technical regulations of the electric industry.
– allocation of feeding points into the grid
It is quite risky for the producer if the output is ready to be fed to the grid but the connection is not available to do so. Absent a clear indication of whether the Solar PPA is a ‘take or pay” agreement, investors will find it difficult to secure and ensure the profits and revenue of their projects.
• No international arbitration dispute resolution clause
• No Government guarantee to enhance the credit of EVN as the sole off-taker;
• No provision addressing the risks of changes in applicable laws; and
• The Solar PPA is required to follow a specific template, which is not bankable.

3. Is this PPA solar bankable or not?

This PPA is not bankable due to reasons specified in 2).

4. In your opinion, how Vietnam government should do in order to reach their target for solar power capacity in the coming to time?

There is an increasing interest of foreign investors in the sector, proven by the fact that there are many solar projects with total capacity of 10,000 MW registered with the MOIT. However, not many of them have submitted the pre-feasibility study to the MOIT for consideration. There are many reasons behind this, but the most important ones are the lack of Government guarantee of EVN’s payment obligation in the PPA and currency hedging. Thus, the Government should consider a mechanism where EVN has to fulfil its payment obligation and the investors are ensured that they will be able to remit their profits abroad in foreign currency.

***
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.
Thank you!

September 14, 2017 by Dr. Oliver Massmann

Vietnam – Solar Power Taking Off – PPA Breaking News- The text of the PPA is issued – How to work with it:

Following the issuance of Decision No. 11/2017/QD-TTg of the Prime Minister on mechanism for encouragement of development of solar power in Vietnam (Decision 11), on 12 September 2017, the Ministry of Industry and Trade officially released Circular No. 16/2017/TT-BCT guiding Decision 11 (Circular 16). Circular 16 is aimed at providing regulations on formulation, approval and amendment of the national as well as provincial power master plan. In addition, the solar Power Purchase Agreement (Solar PPA), which is of great interest for many foreign investors, is also provided in Circular 16 as a mandatory template for future on-grid and rooftop solar power projects with only minor changes expected to be permitted during the contract negotiations.

In essence, the Solar PPA is almost the same as current applicable PPAs for renewable projects. This creates bankable issues for solar projects and a hindrance to foreign investors planning an investment in the sector.

Feed-in-Tariff (FiT)

Circular 16 repeats the solar FiT for power output from on-grid projects and excessive power output generated from rooftop projects specified in Decision 11 to be VND2,086/kWh or US 9.35 cents/kWh. This FiT only applies to on-grid projects and rooftop projects coming into commercial operation before 30 June 2019 and will remain within 20 years from the commercial operation date. We note that while the FiT for power output from on-grid projects is adjusted according to the fluctuation in the VND/USD exchange rate, meaning at any time during the year, it is not the same for rooftop projects. Instead, the mentioned FiT for excessive power output generated from rooftop projects remains the same throughout the first year of operation, and the new FiT for the next year will be adjusted based on the announced VND/ USD exchange rate of the last working day of the previous year.

EVN’s rights and obligations as the sole off-taker

EVN is delegated to purchase all power output generated from solar power projects pursuant to terms and conditions of the Solar PPA within 20 years.

It is noteworthy that the Circular 16 and the Solar PPA list out certain circumstances where EVN is not obliged to purchase power as negotiated with the seller, for example:

when EVN is in the process of installing equipment, or making repairs, replacement, inspection or examination of the grid connection of the seller’s power plant;
when the transmission grid or the distribution grid connected to EVN’s grid has a problem or grid equipment directly connected to EVN’s transmission grid or the distribution grid has a problem; and
when EVN’s grid needs support to recover after the incident in accordance with the provisions of operation of the national power system and the standards, technical regulations of the electric industry.

Unfortunately, the current Solar PPA does not include provisions protecting the interests of the seller in the abovementioned circumstances. It is quite risky for the producer if the output is ready to be fed to the grid but the connection is not available to do so. Absent a clear indication of whether the Solar PPA is a ‘take or pay” agreement, investors will find it difficult to secure and ensure the profits and revenue of their projects.

Dispute resolution

The Solar PPA allows either party to the agreement to bring the dispute to local courts for litigation and other energy-related state bodies of Vietnam (General Directorate of Energy and the Electricity Regulatory Authority of Vietnam) for mediation and resolution.

The Solar PPA does not provide for international arbitration to be an option to resolve the dispute. This could be a great concern for foreign investors, especially those of large utility scale projects.

Other key issues of concern

No Government guarantee to enhance the credit of EVN as the sole off-taker;
No provision addressing the risks of changes in applicable laws; and
The Solar PPA is required to follow a specific template, which is not bankable.

Conclusion

Although these abovementioned bankability issues remain in the Solar PPA as the same for other renewable energy PPAs, we have assisted our clients on different large scale power projects, also in the Renewable Energy sector and managed to win bankable PPAs with EVN. We strongly believe that our track record experience will help investors and the same will be done for the Solar PPA.

***

September 13, 2017 by Dr. Oliver Massmann

Rechtsanwalt in Vietnam Dr. Oliver Massmann DAS TRANSPAZIFISCHE PARTNERSCHAFTSABKOMMEN VERPFLICHTUNGEN ÜBER DEM LEVEL DER WTO – EINE ANALYSE

Überblick über das Transpazifische Partnerschaftsabkommen (TPP)

Das TPP wurde ursprünglich bekannt als „Trans-Pacific Strategic Economic Partnership“, das 2006 zwischen Singapur, Neuseeland, Chile und Brunei als „P-4-Abkommen“ abgeschlossen wurde als Mittel zur Förderung der Handelsliberalisierung im asiatisch-pazifischen Raum. Wie der Name schon sagt, war der ursprüngliche Zweck der Vereinbarung nur, ökonomische Fragen zu betreffen. Da die Zahl der teilnehmenden Länder in der P-4-Vereinbarung gestiegen ist, beginnend mit den Vereinigten Staaten im September 2008 (welche aber 2017 wieder terminiert haben) und anderen Ländern, wie Australien, Peru, Vietnam, Malaysia, Kanada, Mexiko und Japan bis Juli 2013 zu folgen, wird die Vereinbarung vereinbart “Eine umfassende, regionale Vereinbarung der nächsten Generation, die Handel und Investitionen liberalisiert und neue und traditionelle Handelsfragen und Herausforderungen des 21. Jahrhunderts anspricht” von den TPP-Handelsministern. Im Juni 2015 genehmigten die Vereinigten Staaten die Handelsförderungsbehörde für Präsident Obama. Die Vereinbarung endlich wird so, wie es heute durch harte Verhandlungsrunden ist, während die letzte Runde in Atlanta im September 2015 als die intensivste war. Die Verhandlungen zum TPP wurden bereits am 06. Oktober 2015 abgeschlossen. Im Februar kuendigten die USA das TPP worauf alle anderen Staaten sich einigten, das Schicksal des TPP im November 2017 endlich zu beschließen, wobei jetzt schon klar ist, dass die Mehrheit der Unterzeichnerstaaten das abkommen ratifizieren will (TPP11).

Der erfolgreiche Abschluss der TPP-Verhandlungen fügt Vietnam einer Gemeinschaft von 11 Nationen hinzu, die 28% des weltweiten Handels ausmacht.

Vietnam wäre der größte Profiteur dieses Handelspaktes. Das BIP in Vietnam würde eine sich zusätzlich um 13,6% steigern. Nach dem Weltwirtschaftsforum wird Vietnam voraussichtlich im Vergleich zu anderen TPP-Volkswirtschaften, RECP-Volkswirtschaften und RCEP-Volkswirtschaften die bedeutendste Veränderung des BIP im Jahr 2025 (d.h. 28,2%) aufweisen. Die Reallöhne von Vietnam werden bis 2025 ebenfalls voraussichtlich um 10,5% ansteigen, so dass Malaysias als zweithöchstes Einkommensaufsteigerland aus den TPP-Mitgliedern weit hinter sich gelassen werden wird.

Das TTP wird Vietnam dabei helfen, internationale Kooperationsmöglichkeiten zu nutzen, die Beziehungen zu den wichtigsten Märkten auszugleichen, sich größeren Märkten zu nähern, darunter Japan, Kanada, den Im- und Export zu steigern, das Import-Defizit zu reduzieren und ausländische Investitionen zu vergrößern. Darüber hinaus wird TTP auch dazu beitragen, dass die Wirtschaft Vietnams ihre Ressourcen effektiver nutzt und aktive Unterstützung der Prozesse der Umstrukturierung, der Innovation und der Verbesserung der Vorschriften ermöglicht und die Verwaltungsreformen verbessert.

Was macht das TPP zur Vorlage für kommende Vereinbarungen – Welche Verpflichtungen liegen außerhalb des WTO-Niveaus?

Die freiere Handelszone

Verpflichtungen im Handel mit Waren

Tarif- und nichttarifgebundene Handelshemmnisse werden im gesamten Handel mit Dienstleistungen und Waren im Rahmen des TPP erheblich reduziert und entfernt. Einfuhrzölle werden zu 100% für Waren reduziert, die zwischen den Mitgliedsstaaten gehandelt werden, wobei mehr als 90% sofort bei Abschluss des Abkommens beseitigt werden. Das TPP umfasst auch Fragen, die in Abkommen der WTO noch nicht angesprochen wurden, einschließlich der Ausfuhrabgaben, der Einfuhrzölle für Wiederverkäufe, des Marktzugangs für neu gestaltete Waren, strengere Vorschriften für Einfuhr- und Ausfuhrlizenzen, Monopole und Waren im Transit. Niedrigere Tarifbarrieren aus dem TPP geben Vietnam einen größeren Zugang zu großen Verbrauchermärkten in den USA, Japan, Kanada und Australien. Die potenziellen positiven Auswirkungen auf den Handel könnten transformativ sein, mit Schätzungen, dass das TPP die Ausfuhren Vietnams um über 37% bis 2025 steigern wird. Bemerkenswerterweise schloss Vietnam im August auch das Freihandelsabkommen mit der EU ab und ist somit dabei, Freihandelsabkommen mit drei seiner vier größten Exportziele – der EU, Japan und den USA – abzuschließen.

Verpflichtungen im Handel mit Dienstleistungen und Investitionen

Alle 12 Mitgliedsstaaten eröffnen die Möglichkeit eines liberalisierten Handels in diesem Bereich. Mehrere Sektoren werden im TPP im Vergleich zur WTO eröffnet, wie z.B. Telekommunikation, Vertrieb und Fertigung.

Darüber hinaus nimmt das TPP neben der Einbeziehung von grundlegenden WTO-Grundsätzen (nationale Behandlung (NT), Meistbegünstigung (MFN), Marktzugang und lokaler Präsenz) einen negativen Ansatz ein, so dass ihre Märkte für Dienstleister voll offen sind. Andere TPP-Parteien, soweit diese in ihren Verpflichtungen nichts anderes eingegangen sind (d.h. nicht- konforme Maßnahmen). Um solche Vorbehalte zu erheben, muss der Mitgliedsstaat die Notwendigkeit einer solchen Erhaltung und Verhandlung mit anderen Mitgliedsstaaten nachweisen. Bei der Genehmigung sind die nicht-konformen Maßnahmen nur auf solche Listen beschränkt, mit Ausnahme von Maßnahmen in bestimmten sensiblen Sektoren, die in einer separaten Liste enthalten sind. Die Mitgliedstaaten sind nur berechtigt, Maßnahmen zu ergreifen, die bereits besser sind als das bestehende (Ratchet-Prinzip). Das TPP schließt auch Verpflichtungen zur Beseitigung von Leistungsanforderungen ein (d.h. keine Bedingungen für lokale Anforderungen an Inhalte, Exportbedingungen, Nutzungen bestimmter Technologien, Standort des Investitionsprojekts usw.) und angemessene Anforderungen an die Geschäftsleitung und den Vorstand. Bemerkenswert ist, dass das TPP-Kapitel über Investitionen erstmals sehr klar und transparent im Hinblick auf das MFN-Prinzip ist, dass die Länder, die im Mehrstaatsregime tätig sind, den ausländischen Investoren die besten Investitionsbedingungen aller Staaten geben müssen, unabhängig von dem Staat, in dem die Investition findet statt. Investoren sind auch berechtigt, gegen die Regierung von der Investitionsregistrierung Anträge zu stellen.

Textilien

Textilien gehören zu den wichtigsten Handelswaren Vietnams. Nach Vorschlägen der Vereinigten Staaten wurden die Verhandlungen über Textilien getrennt von Verhandlungen über den Marktzugang für andere Güter geführt. Um für die TPP-Präferenzzollbehandlung qualifiziert zu sein, wendet das TPP das Stoff-Verarbeitungs-Prinzip an, d.h. Textilprodukte müssen in TPP-Ländern aus Stoffen vorbereitet werden. Allerdings enthält das TPP Ausnahmen, die es erlauben, dass (i) bestimmte Materialien von außerhalb TPP bezogen werden (“Short supply list”), (ii) bestimmte Fertigungsphasen (z.B. Färben, Weben usw.), die außerhalb von TPP durchgeführt werden sollen; Und (iii) ein Land, um Nicht-TPP-Materialien im Austausch für die Ausfuhr bestimmter Textilwaren in ein anderes Land verwenden zu können.

Staatliche Logistik

Das TPP macht eine Liste von Regierungsstellen und Agenturen, deren Logistik von bestimmten Waren und Dienstleistungen in einem bestimmten Betrag der öffentlichen Ausschreibung unterliegen muss. Dieses Kapitel enthält NT- und MFN-Prinzipien, entfernt bevorzugte Bedingungen, die lokale Ausschreibungen wie die Verwendung lokaler Güter oder lokaler Lieferanten, Bedingungen für den Technologietransfer oder den Zwei-Wege-Handel und die Investition usw. begünstigen. Diese Regelungen erfordern die Mitarbeit aller Parteien, insbesondere Vietnams, in Bezug auf Chinas Vorreiterstellung durch die vielen Angebote mit niedrigem Angebotspreis, aber qualitativ minderwertigen Dienstleistungen, ihre Gebotsverfahren zu reformieren und ihre eigenen Interessen zu schützen, indem sie die Angebote mit schlechter Leistung und geringer Kapazität disqualifizieren.

Streitbeilegung zwischen Investoren und Staaten

Das TPP zielt darauf ab, Investoren und ihre Investitionen in das Gastland zu schützen, indem sie Anforderungen an die Nichtdiskriminierung einführt; eine gerechte Behandlung einfordert; einen vollen Schutz und Sicherheit wahrt; das Verbot der Enteignung, das nicht für den öffentlichen Zweck, ohne ordnungsgemäßen Prozess oder ohne Entschädigung ist; die freie Übertragung von Mitteln im Zusammenhang mit Investitionen; und die Freiheit, Führungspositionen unabhängig von der Nationalität zu ernennen.

Das TPP enthält auch Verfahren für die Schiedsgerichtsbarkeit als Mittel zur Beilegung von Streitigkeiten zwischen Investoren und dem Aufnahmestaat. Es deckt neue Bestimmungen im Vergleich zu bestehenden Vereinbarungen wie Transparenz in Schiedsverfahren, Offenlegung von Einreichungen und Schiedssprüchen und die Beteiligung interessierter nicht streitender Parteien, um amicus curiae (lat. für: unabhängige Sachverständige) Entscheidungen zu erhalten.

Vereinbarkeit des TPP und älterer / bestehender Vereinbarungen

Die Mitgliedsstaaten des TPP erkennen die bestehenden Rechte und Pflichten jedes Mitglieds im Rahmen bestehender internationaler Vereinbarungen an, zu denen alle TPP-Mitgliedsstaaten Parteien sind (z.B. WTO-Abkommen, NAFTA oder weitere bilaterale Abkommen) oder von den mindestens zwei Mitgliedsstaaten Parteien sind. Im Falle einer Kollision zwischen einer Bestimmung des TPP und einer Bestimmung einer anderen Vereinbarung, auf die mindestens zwei TPP-Mitgliedsstaaten Parteien sind, werden diese Parteien miteinander eine gemeinsame zufriedenstellende Lösung erreichen. Bitte beachten Sie, dass der Fall in dem eine andere Vereinbarung eine günstigere Behandlung von Waren, Dienstleistungen, Investitionen oder Personen als die Behandlung des TPP vorsieht, nicht als Inkonsistenz angesehen wird.

Frist der Umsetzung des TPP

Am 04. Februar 2016 trafen sich die Handelsminister in Neuseeland, um das Abkommen zu unterzeichnen, damit es in den einzelnen Mitgliedstaaten im nächsten Schritt vor dem Inkrafttreten des Abkommens ratifiziert wird. Die TPP wird nicht wirksam, wenn nicht mindestens sechs Länder, die 85% des BIP des Blocks ausmachen, es ratifizieren. Laut dem Vietnamesischen Minister für Industrie und Handel, Herrn Vu Huy Hoang, wird erwartet, dass das TPP im Jahr 2018 in Kraft tritt auch ohne die USA! Dies wird auf dem APEC Treffen im November 2017 entschieden.

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Bitte zögern Sie nicht, Herrn Rechtsanwalt Dr. Oliver Massmann unter omassmann@duanemorris.com zu kontaktieren, sofern Sie Fragen haben oder mehr darüber erfahren möchten. Dr. Oliver Massmann ist der Geschäftsführer von Duane Morris Vietnam LLC.

Vielen Dank!

September 5, 2017September 6, 2017 by Dr. Oliver Massmann

Vietnam Wind Power is taking off – The new Feed in Tariff – what you must know:

Decision No. 37 of the Prime Minister on supporting regime for wind power projects provides an FIT of 7.8 UScent/ kWh. This FIT applies to two current projects in operation in Binh Thuan, namely Phu Lac and Binh Thuan No. 1. For Bac Lieu near shore wind project, the FIT follows a special financial regime, being 9.8 UScent/kWh. However, with the current FIT, the Ministry of Industry and Trade (MOIT) opines that it will be difficult for these plants to recover their investment capital.

Thus, the MOIT has recently proposed the Government to increase wind FIT for inland wind power plants to 8.77 UScent/ kWh and to 9.97 UScent/kWh for near shore wind projects. This proposal is expected to attract more investors in the market as well as create incentive for current projects whose pre-feasibility reports have been approved by the MOIT to come into real operation.

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

Thank you very much!