Duane Morris Vietnam

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

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

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

The key highlights of the Draft are as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist der Generaldirektor von Duane Morris Vietnam LLC.

Le 24 janvier 2025, le Premier Ministre a émis la décision n°232/QD-TTg, autorisant le projet pour l’établissement et le développement d’un marché du carbone au Vietnam (décision 232). En vertu de la décision 232, le marché des échanges des droits d’émission du carbone est censé être développé selon l’échelle de temps suivante :
• Entre la date d’adoption de la décision 232 et juin 2025 : développer (i) le cadre juridique de l’échange des droits d’émission de carbone et s’assurer des bases légales pour la mise en œuvre du programme pilote d’échange des droits d’émission de carbone ; (ii) les infrastructures nécessaires à la mise en œuvre du programme pilote d’échange des droits d’émission de carbone ; (iii) la capacité des parties concernés dans la gestion et la mise en œuvre d’un marché d’échange des droits d’émission de carbone.
• Entre juin 2025 et la fin de 2028 : de (i) continuer à développer les infrastructures nécessaires, le cadre juridique et la capacité des parties ; (ii) mettre en œuvre le programme pilote d’échange des droits d’émission de carbone. A ce stade, le programme pilote d’échange des droits d’émission de carbone se concentrera sur les crédits carbones et les quotas de gaz à effet de serre qui sont spécialement codés pour sécuriser les transactions. Avec l’aide d’un système de conservation du Vietnam Securities Depository et d’un règlement par l’intermédiaire de banques commerciales accréditées, la plateforme automatisée garantira des opérations fluides. Les parties autorisées à participer au marché du carbone sont (i) les grandes installations d’émission de gaz à effet de serre classées par le Premier ministre ; (ii) les organisations et les individus éligibles pour participer à l’achat et à la vente de crédits de carbone sur le marché d’échange des droits d’émission de carbone.
• A partir de 2029 : mettre officiellement en œuvre le marché d’échange des droits d’émission de carbone et développer tous les aspects pertinents.
La décision 232 prévoit également que le marché d’échange des droits d’émission de carbone sera mis en œuvre au niveau national grâce aux services de gestion fournis par la bourse de Hanoi. S’agissant du développement durable du marché de carbone au Vietnam, le Ministère des ressources naturelles et de l’environnement est chargé de prendre les devants et de se coordonner avec toutes les autorités pertinentes pour atteindre un tel objectif.
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Si vous avez des questions, n’hésitez pas à contacter le Dr. Oliver Massmann à l’adresse mail suivante : omassmann@duanemorris.com. Le Dr. Oliver Massmann est le directeur général de Duane Morris Vietnam LLC.

A. Overview of Vietnam´s healthcare sector
There is no denying that Vietnam truly is an attractive investment destination in South East Asia. It has great potential to develop a qualitative, self-sustaining life science sector. An older demographic, a quickly growing middle class, and a rising influx of foreign workers are all elements that significantly and favorably impact the demand for high-quality healthcare services in Vietnam.
Improvements on the healthcare sector will lead to several benefits. With increasing focus on healthcare, manufacturing, service providers, clinical research organizations and others are being stimulated. As a result, small and medium-sized enterprises (SMEs) are boosted and exports could replace the need for foreign aid by attracting sustainable FDIs and PPPs.
Of particular importance for a positive development is the close cooperation between the major stakeholders from the private and public sector. In this process, certain core goals should be set. Significantly, it is important to ensure swift, sustainable access to medical treatment and to urgently improve the quality of the treatment process. High-quality domestic treatments not only improve patient satisfaction but also improve one’s own economy by counteracting outgoing medical tourism.
Furthermore, it should be ensured that the existing investors remain in Vietnam and new ones are pulled ashore. To do this, investors must be shown that the Vietnamese market does not contain undetected risks, but is stable and predictable. Further, integrate opportunities for collaborations and partnerships to develop local capability.
B. Outpatient: Home care and home-treatment
One major issue regarding Vietnam’s Healthcare sector is the limited capacity in hospitals. There is a gap between bed capacity and demand of inpatient treatment. The Ministry of Health has its hands full to counteract the overloading of hospitals. Even institutions with larger bed capacity have eventually set up a home care service to enhance the follow-up monitoring of chronic and long-term illnesses for patients that have been released from the hospital.
Patients in Vietnam are financially overburdened with the costs of treatment therefore affordable treatment is needed. This however, has to be reached without the loss of quality. Especially the indirect costs of healthcare, such as travelling, meals during hospitalization and loss of income during treatment put patients and their families under enormous financial pressure. Due to the overload situation at hospitals and the fact that home care service is not fully developed yet, patients tend to take care for themselves with the help of their family. This leads to potential additional health complications due to the lack of professional follow-up. Furthermore, patients will often have to come to the hospital eventually and in some cases, with more severe conditions.
As such, professional homecare programs should be further investigated and developed, with access to the programs should be simple for everyone. This is especially necessary for the chronically ill. Home care and home-treatment can help to reduce public spending on chronic diseases and thus spare the health budget.
C. Implementation
There are two major requirements for putting the homecare structure into practice. First, the creation of a straightforward, transparent legal framework that contain incentives for investors. This encourages multinational companies to invest and transfer their know-how and technology to Vietnam, improving the revenues and quality of the country health care sector. Second, to streamline the administrative process to shorten the process of delivering new, high-quality patient care solutions, and to respond to the growing need for a growing Vietnamese population for rapid and sustainable access.
D. Medical Devices Industry Code of Conduct
Background of the Code of Conduct for medical devices is the various risks associated with the industry, in particular unfair competition between industry players. The Code is intended to facilitate ethical interactions among members of society who develop, manufacture, sell, distribute or distribute medical technology in Vietnam and individuals and organizations that apply, recommend, buy or prescribe medical technologies in Vietnam. The content of the Code of Conduct should focus on 1) strict compliance with laws and regulations in the area; 2) prioritization of people and health and safety of patients and 3) promoting scientific and educational activities to best benefit the patient.
For multinational companies, the compliance area is usually very pronounced and strict. It is therefore particularly important to invest in an ethical business environment, especially when investing in high-risk jurisdictions. The commitment to uphold high ethical standards would certainly bring about long-term benefits for the health sector in Vietnam and attract more investors.
E. Outlook on Major Trade Agreements CPTPP, European Union – Vietnam Free Trade Agreement and European Union – Vietnam Investment Protection Agreement
In January 2017, US President Donald Trump decided to withdraw from the US’ participation in the TPP. In November 2017, the remaining TPP members met at the APEC meetings and concluded about pushing forward the now called CPTPP (TPP 11) without the USA. On 12 November 2018, Vietnam officially became the seventh member of the CPTPP.
The CPTPP targets to eliminate tariff lines and custom duties among member states on certain goods and commodities to 100%. An increase of trade will have great influence to the health- and medical sector. The agreement is suitable to support Public-Private Partnerships (PPPs), which could lead to a positive impact in development of innovative technologies of medical devices and facilitate the transfer of necessary know-how. Lower or no trade tariffs can lead to lower import costs for the essential components of medical devices. This, in turn, results in lower acquisition costs for the medical practices and hospitals, thus eventually lowering the treatment costs.
The annexes of the CPTPP (TBT chapter) deal with specific challenges of trading regarding pharmaceuticals, medical devices and technology products. The provisions require the Members to define what medical products are and when they are subject to the state laws, and this information have to be published. This requirement helps to ensure timely mitigation measures if a product application is not approved or is deemed deficient. Such increased transparency brings great benefits for all traders of medical devices, employees in the medical industry as well as for patients.
A specific example is before the CPTPP comes into force in Vietnam, Canada faced tariffs of 7% imposed by Vietnam regarding exports of life sciences products such as medicines in doses for retail sale. From 14 January 2019, these tariffs are fully eliminated. As a result, Canada and other countries are exporting more and more products to Vietnam, gradually improving the quality of Vietnam’s medical facilities.
One another notable major trade agreement is the European Union Vietnam Free Trade Agree-ment (EVFTA), which came into force on 1 August 2020. The EVFTA offers great opportunity to access new markets for both the EU and Vietnam and to bring more capital into Vietnam due easier access and reduction of almost all tariffs of 99%, as well as obligation to provide better conditions for workers. In addition, the EVFTA boosts the development of (almost) all econom-ic sectors in Vietnam. Both agreements promise great benefits for the health and medicine sec-tor. Under the EVFTA, Vietnam will abolish tariffs on 50% of EU pharmaceuticals as soon as the agreement comes into effect, while the remaining tariffs will be phased out over a period of 10 years. Before the EVFTA, the average tariff rate on pharmaceuticals imported from the EU to Vietnam, as per World Trade Organization regulations, was 2.26%, with 63% of these prod-ucts already benefiting from a zero tariff. Once the EVFTA is enacted, Vietnam’s tariffs on pharmaceutical goods from the EU will be largely eliminated within 11 years. Consequently, the average tariff rate will decrease from 2.26% to 0% by the 11th year. Certain tariffs will still be in place for specific pharmaceuticals imported into Vietnam after a period of 11 years, particu-larly for medicines categorized under HS Codes 3004, 3005, and select items in 3006, which include some drugs and medical devices. Additionally, under the EVFTA, the approval process for clinical trials has been made more efficient to facilitate faster access to new and innovative medications.
Both the CPTPP and the EVFTA include a chapter on Government Procurement, which deals with the requirement to treat foreign and domestic bidders equally when a government buys goods or requests for a service worth over the specified threshold. Vietnam undertakes to timely publish information on tender, allow sufficient time for bidders to prepare for and submit bids, maintain confidentiality of tenders. The GPA in both agreements also requires its Parties assess bids based on fair and objective principles, evaluate and award bids only based on criteria set out in notices and tender documentation, create an effective regime for complaints and settling disputes, etc. At the moment, Vietnam has implemented online bidding mechanism with easily accessible information for foreign investors.
The EVFTA comes with the European Union – Vietnam Investment Protection Agreement (EVIPA) that is being reviewed for ratification by EU Member States. Foreign investors are given high level of protection under the EVIPA. This agreement is a combination of the New York Convention 1958 and the ICSID 1965. The EVIPA, and CPTPP, make it possible for foreign investors to sue the Vietnamese Government for its investment related decisions. The final arbitral award is binding and enforceable without any question from the local courts regarding its validity.
At the moment, Vietnam has reserved the right to fulfill the commitment on Investor-State Dispute Resolution for 5 years from the effective date of the EVIPA. Nevertheless, Duane Morris Vietnam has the legal and technical tools to make such provisions work in favor of investors from now.
F. Lastest developments
After the entry of Vietnam into the international agreements (i.e. CPTPP, EVFTA), large M&A deals regarding the healthcare industry were carried out by relevant parties. In January 2024, Thomson Medical Group finalized its acquisition of FV Hospital, located in Ho Chi Minh, marking the largest healthcare merger in Southeast Asia since 2020. The total value of the transaction amounted to $381.4 million, comprising $359.6 million paid upfront and an additional $21.8 million to be disbursed upon FV Hospital reaching specific performance targets. Thomson Medical Group plans to fund this acquisition using its own resources along with borrowed funds. “FV Hospital will give us a strategic position in Vietnam” stated Mr. Kiat Lim, Vice President of Thomson Medical. FV Hospital was founded in August 2008 by Dr. Jean-Marcel Guillon and a team of French physicians with the aim of delivering internationally recognized medical services in Vietnam. The hospital features 220 beds and employs 950 medical staff, including doctors and nurses, and runs an outpatient clinic located on Nguyen Luong Bang Street in District 7, Ho Chi Minh City. In addition, the hospital provides care for patients from neighboring nations like Cambodia, Laos, and Myanmar.

Other deals were also made after Vietnam’s entry into international agreements, namely (i) the comprehensive strategic partnership agreement between American International Hospital and Raffles Medical group, (ii) acquisition of 51% of shares in Trung Son Pharma by South Korean pharmaceutical group Dongwha Pharm, (iii) Japan’s ASKA Pharmaceutical Group spending VND180 billion ($7.4 million) to increase its ownership in Ha Tay Pharmaceutical JSC, (iv) Adamed’s acquisition of 100% of shares in Dat Vi Phu Pharmeceuticals JSC, (v) US private equity firm KKR’s acquisition of majority stake in Medical Saigon Group, (vi) CVC Capital’s purchase of Phuong Chau International Hospital for USD116 million.

Vietnam’s healthcare industry continues to attract foreign investment, in line with the country’s commitments under all relevant international agreements. Foreign investors have multiple avenues for engaging in Vietnam’s healthcare sector, such as establishing entirely foreign-owned hospitals or clinics, creating joint ventures with local partners, or entering into business cooperation agreements with domestic entities. The minimum required investment capital varies based on the specific type of healthcare project; for instance, it is set at USD 20 million for hospitals, USD 2 million for general clinics (polyclinics), and USD 200,000 for specialized treatment facilities. These investment prospects underscore Vietnam’s dedication to promoting collaboration and innovation in healthcare services while encouraging international partnerships to improve the sector’s growth and accessibility.

For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

Am 24. Januar 2025 erließ der Premierminister den Beschluss Nr. 232/QD-TTg, mit dem das Projekt für die Einrichtung und Entwicklung des Kohlenstoffhandelsmarktes in Vietnam genehmigt wurde (Beschluss 232). Gemäß Beschluss 232 soll der Kohlenstoffhandelsmarkt nach folgendem Zeitplan entwickelt werden:
• Ab dem Datum des Erlasses des Beschlusses 232 bis Juni 2025:Entwicklung (i) des rechtlichen Rahmens für den Kohlenstoffhandel und Sicherstellung der rechtlichen Grundlagen für die Umsetzung des Pilotprogramms für den Kohlenstoffhandel; (ii) der notwendigen Infrastruktur für den Betrieb des Kohlenstoffhandelsmarktes; (iii) der Fähigkeiten der relevanten Parteien für den Betrieb und die Umsetzung des Kohlenstoffhandelsmarktes.
• Von Juni 2025 bis Ende 2028: (i) Fortsetzung der Entwicklung der notwendigen Infrastruktur, des Rechtsrahmens und der Fähigkeiten der relevanten Parteien; (ii) Umsetzung des Pilotprogramms für den Kohlenstoffhandelsmarkt. In dieser Phase wird sich das Pilot Trading Programm auf Kohlenstoffgutschriften und Treibhausgaszertifikate konzentrieren, die speziell für sichere Transaktionen codiert sind. Mit Hilfe eines Verwahrungssystems der vietnamesischen Wertpapierverwahrungsstelle und der Abwicklung über zugelassene Geschäftsbanken wird die automatisierte Plattform einen reibungslosen Ablauf gewährleisten. Zur Teilnahme am Kohlenstoffhandelsmarkt sind folgende Parteien berechtigt: (i) vom Premierminister eingestufte große Treibhausgasemissionsanlagen; (ii) Organisationen und Einzelpersonen, die am Kauf und Verkauf von Kohlenstoffzertifikaten auf dem Kohlenstoffhandelsmarkt teilnehmen können.
• Ab 2029: Offizielle Einführung des Kohlenstoffhandelsmarktes und Entwicklung aller relevanten Aspekte.
Im Beschluss 232 heißt es außerdem, dass der Kohlenstoffhandelsmarkt im Inland eingerichtet wird, wobei die Börse von Hanoi die Verwaltung übernimmt. Was die nachhaltige Entwicklung des Kohlenstoffhandels in Vietnam betrifft, so ist das Ministerium für natürliche Ressourcen und Umwelt damit beauftragt, die Leitung zu übernehmen und sich mit allen zuständigen Behörden abzustimmen, um dieses Ziel zu erreichen.
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Bei Fragen und für weitere Einzelheiten steht Ihnen Dr. Oliver Massmann unter omassmann@duanemorris.com gerne zur Verfügung. Dr. Oliver Massmann ist der Generaldirektor von Duane Morris Vietnam LLC.

On 24 January 2025, the Prime Minister issued Decision No. 232/QD-TTg approving the project for establishment and development of carbon trading market in Vietnam (Decision 232). According to Decision 232, the carbon trading market is set to be developed with the following timeline:
· From the issuance date of Decision 232 until June 2025: To develop (i) the legal framework for carbon trading and to ensure the legal grounds for the implementation of pilot carbon trading program; (ii) the necessary infrastructure to serve the purpose of operating the carbon trading market; (iii) the capability of relevant parties in the operation and implementation of carbon trading market.

· From June 2025 to the end of 2028: To (i) continue developing the necessary infrastructure, and legal framework, and capability of relevant parties; (ii) implement the pilot program for carbon trading market. At this stage, the pilot trading program will concentrate on carbon credits and greenhouse gas allowances that are specially coded for safe transactions. With the help of a custodial system from the Vietnam Securities Depository and settlement through accredited commercial banks, the automated platform will guarantee smooth operations. Parties allowed to participate in the carbon trading market are (i) large greenhouse gas emission facilities as classified by the Prime Minister; (ii) organizations and individuals eligible to participate in buying and selling carbon credits on the carbon trading market.

· From 2029: To officially implement the carbon trading market and develop all relevant aspects.
It is also stated under Decision 232 that the carbon trading market will be implemented domestically with the management services provided by the Hanoi Stock Exchange. Regarding the sustainable development of the carbon trading in Vietnam, the Ministry of Natural Resources and Environment is tasked with taking the lead and coordinating with all relevant authorities to achieve such a goal.

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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.

The State Bank of Vietnam (Ngan hang Nha nuoc Viet Nam, SBV) is the central bank of Vietnam. It is a ministry-level body under the administration of the government. The SBV governor is a member of the cabinet. The prime minister and the parliament of Vietnam (National Assembly) act jointly to nominate the governor of the SBV. The SBV’s principal roles are to:
• Support monetary stability and implement monetary policies.
• Support institutions’ stability and supervise financial institutions.
• Support banking facilities and recommend economic policies to the government.
• Support banking facilities for financial institutions.
• Manage the country’s foreign exchange reserves.
• Manage foreign exchange and gold trading activities.
• Manage the borrowing and repayment of foreign loans, the provision of loans to foreign parties and recovery of foreign debts.
• Print and issue bank notes.
• Supervise all commercial banks’ activities in Vietnam.
• Lend State money to commercial banks.
• Join the Ministry of Finance in issuing government bonds and government-guaranteed bonds.
• Act as an agent for the State Treasury in organizing bids and in issuing, depositing and making payment for treasury bonds and bills.
• Be in charge of other roles in monetary management and foreign exchange rates.
In 1990, the bank system was reorganized. This process led to a separation of the SBV from other commercial banks and was the start of the establishment of the private banking sector. A small number of major state-owned commercial banks still dominate Vietnam’s banking sector.
According the Decision No. 22/2021/QD-TTg on classifying State-owned enterprises and state-owned enterprises undergoing divestment in the 2021 – 2025 period, the State will continue to hold at least 65% charter in state-owned commercial banks.
Up to date, based on publicly available information, the State ownership ratios in 4 largest state-owned commercial banks are as follows: (i) 80.9% in BIDV; (ii) 74.8% in Vietcombank; (iii) 64.46% in Vietinbank; and (iv) 100% in Agribank.
Foreign ownership restrictions for Vietnamese credit institutions
On January 3, 2014, the government adopted Decree No. 01/2014/ND-CP on the purchase by foreign investors of shareholding in Vietnamese credit institutions. Decree 01 became effective on February 20, 2014 and replaced Decree No. 69/2007/ND-CP on purchase by foreign investors of shareholding in Vietnamese commercial banks.
In Decree 01, Vietnamese credit institutions, which may offer shares, include:
• shareholding credit institutions (i.e., a credit institution established and organized in the form of a shareholding company and includes shareholding commercial banks, shareholding finance companies and shareholding finance leasing companies); and
• credit institution currently converting its legal form from a credit institution operating in the form of a limited liability company to a credit institution operating in the form of a shareholding company.
Foreign investors include foreign organizations (institutions) and foreign individuals. Foreign organizations include:
• organizations established and operating under the laws of a foreign country and any branch of such institutions overseas or in Vietnam; and
• an organization, closed-ended fund, members’ fund or securities investment company established and operating in Vietnam with a foreign capital contribution ratio above 49%. Foreign individual means any person who does not hold Vietnamese nationality.
Decree 01 defines that shareholding ownership (shareholding) includes direct and indirect ownership. However, Decree 01 does not explain clearly the scope of direct and indirect ownership.
In the case of the purchase of shareholding by a foreign investor in a Vietnamese credit institution resulting in such foreign investor’s ownership of shares below 5% charter capital of the Vietnamese credit institution, a prior approval of the SBV is not required. In other cases, any acquisition by foreign investors of shareholdings in a Vietnamese credit institution requires the prior approval of the SBV.
The shareholding ratio of any one foreign individual must not exceed 5% of the charter capital of one Vietnamese credit institution. The shareholding ratio of any one foreign organization must not exceed 15% of the charter capital of one Vietnamese credit institution.
Any foreign investor that is an organization owning 10% or more of the charter capital of any one Vietnamese credit institution is not permitted to assign the shareholding it owns to any other organization or individual within a minimum three-year period from the date of ownership of 10% or more of the charter capital in such credit institution.
The shareholding ratio of any one strategic foreign investor must not exceed 20% of the charter capital of one Vietnamese credit institution. The investor may not transfer its shares to the Vietnamese credit institution within five years after becoming a foreign strategic investor in the Vietnamese credit institution.
A strategic investor is defined as a foreign organization with financial capacity and whose authorized person provides a written undertaking to have a close connection regarding long-term interests with the Vietnamese credit institution and to assist the latter in transferring to modern technology, developing banking products and services, and raising its financial, managerial and operational capacity.
The shareholding ratio of any one foreign investor and its affiliates must not exceed 20% of the charter capital of one Vietnamese credit institution. The total shareholding ownership of all foreign investors must not exceed 30% of the charter capital of any Vietnamese commercial bank.
The total shareholding ownership of all foreign investors in any one Vietnamese non-banking credit institution shall be implemented in accordance with the law applicable to public companies and listed. When there are no specific regulations on the rate of foreign ownership, the maximum rate of foreign ownership will be 49% of the charter capital of such institution.
In a special case, in order to implement restructuring of a credit institution that is weak and/or facing difficulties, in order to ensure the safety of the credit institution system, the Prime Minister may, on a case-by-case basis, make a decision on the total shareholding ratio of any one foreign organization or any one foreign strategic investor, and the total level of shareholding of foreign investors in any weak shareholding credit institution which is restructured, in excess of the limits described above.
Under the Government’s instruction in 2018, the Ministry of Finance (MoF) is required to draft a Government decree to allow foreign ownership ratio in commercial banks in Vietnam up to 50%. However, this decree would only be finalized and adopted in the fourth quarter of 2019. However, at the time of writing, the Government has not published any decrees allowing for the 50% rate that foreign investors consider very attractive. Further, according to the latest draft of the decree amending Decree 01, for certain banks categorized as credit institutions required to receive transfers, the foreign ownership ratio can reach up to 49%.
Nevertheless, a point worth noting is that Vietnam committed in the EU-Vietnam Free Trade Agreement to: (i) increase the share ownership ratio of European investors to 49% in two Vietnamese banks (except the aforementioned four largest State-owned banks) in the next five years; and (ii) after five years, there will be no limitation on foreign ownership ratio in Vietnamese commercial banks for European financial institutions.
The Agreements were signed in June 2019 and the EU-Vietnam Free Trade Agreement came into force on August 1, 2020..
Foreign exchange regulations
The Ordinance on Foreign Exchange, which was enacted by the Standing Committee of the National Assembly in December 2005 and became effective in June 2006, and amended on March 18, 2013, regulates currency exchange activities in Vietnam. The government promulgated Decree No. 70/2014/ND-CP to provide guidelines for both the Ordinance on Foreign Exchange and its amendments on March 18, 2013.
Decree 70 became effective on September 5, 2014 and replaced Decree No. 160/2006/ND-CP dated December 28, 2006 to provide detailed implementation of the ordinance.
Decree 70 governs the foreign exchange activities of residents and non-residents in current transactions, capital transactions, foreign loan borrowing, use of foreign currency and provision of foreign exchange services, the foreign currency market and rates of exchange, and the management of import and export of gold in Vietnam.
With regards to foreign loan borrowing, the government has also promulgated Decree No. 219/2013/ND-CP dated December 21, 2013 on the management and repayment of offshore loans that are not guaranteed by the government. Decree 219 became effective on February 15, 2014 and replaced Decree No. 134/2005/ND-CP on the same subject.
Decree 219 governs all businesses that are incorporated under the Enterprises Law, credit institutions and foreign bank branches under the Law on Credit Institutions, and cooperatives and unions of cooperatives established and operating under the Law on Cooperatives.
Offshore loans under Decree 219 include loans from non-residents under loan agreements, deferred payment commodities sale and purchase agreements, entrusted loan agreements and debt instruments issuance agreements that are not guaranteed by the government. In general, foreign borrowing must comply with the regulations of, and is subject to, registration with the SBV.
However, Decree 219 does not state clearly that requirements and types of loans should be registered, or any licensing/registration procedures. These issues have been addressed by the SBV’s guidelines i.e., Circular No. 12/2022/TT-NHNN dated September 30, 2022, providing certain guidelines on foreign exchange control in relation to foreign borrowing activities. Circular 12 came into effect on November 15, 2022 and replaced Circular No. 03/2016/TT-NHNN and its amending circulars. Circular 12 has helped to improve the legal framework for the management of the borrowing and repayment of enterprises in general and enterprises not guaranteed by the government. Some highlights of the Circular 12 are:
Loans made in the form of deferred payment for the import of goods no longer require registration with the SBV. However, the opening and use of bank accounts and remittance activities must comply with the requirements of Circular 03.
Loans subject to registration with the State Bank include: (i) mid-term and long-term foreign loans, except foreign loans arising from issuance of letter of credit of credit institutions or branches of foreign banks ; (ii) short-term foreign loans having a principal payment period extended for which the total term is more than one year; and (iii) short-term foreign loans which are not renewed but loans’ outstanding principal amounts have not been fully repaid prior to or within 30 working days after one year from the date of first loan withdrawal.
Circular 12 has also extended the timeline to register the offshore loans and amendments to the registered offshore loans, from 30 days (as previously stipulated in Circular No. 03/2016/TT-NHNN) to 30 working days from the signing date of the loan agreement or amendment agreement, giving more time for the borrower to prepare to lodge the application dossiers to the SBV for the registration of offshore loans or the registration of any amendments to the registered offshore loans.
A borrower that is not a foreign-invested enterprise must open a bank account for the purpose of a foreign loan at the authorized banks in Vietnam. For foreign invested enterprises, they may choose to use a direct investment capital account (DICA) for the purpose of receipts and expenditures, with respect to the medium or long-term offshore loan(s). A DICA can be utilized by the borrower for the same purpose, regarding the short-term loan(s) in addition to its current offshore loan account(s).
If the schedule of loan disbursement, repayment or interest payment changes by less than 10 days from the schedule already registered with the SBV, the borrower must only notify the changes on the Website for management of foreign loans and repayments that are not guaranteed by the Government (www.sbv.gov.vn or www.qlnh-sbv.cic.org.vn), and does not need to register the changes with the SBV. However, if the schedule changes by more than 10 days, then reregistration with the SBV is required.
Circular 12 also allows notification to SBV (instead of change registration) with regards to certain corporate changes of information that has been registered with SBV such as change (increase or decrease) in the amount of capital withdrawal, repayment of principal, interest, and fees within 100 currency units of the foreign loan currency compared with the corresponding content as previously certified by the SBV, change of address of the borrower within the province/city where it has headquarter, or change of trade names of the relevant banks who provide account services, etc.
The government issued Decree No. 88/2019/ND-CP on November 14, 2019 on sanctions of administrative violations in the field of monetary and banking operations. Decree 88 became effective on December 31, 2019 and replaced (i) Decree No. 96/2014/ND-CP dated December 12, 2014; (ii) Decree No. 95/2011/ND-CP dated December 20, 2011; and (iii) Decree No. 202/2004/ND-CP dated December 10, 2004 on sanctions of administrative violations in the field of monetary and banking operations.
This decree was said to loosen forex and gold trading and relevant activities in Vietnam. According to this decree, monetary penalties in relation to gold and forex trading, price listing/payment/advertising in forex/gold, etc. were significantly reduced i.e., from VND 600 million (approximately $26,000) to VND 250 million (approximately $11,000). For instance, potential penalty for violations re: trading on gold bars without a license is only a warning for the first time getting caught or a possible penalty for violations re: forex activities conducted by credit organizations without licenses may be up to VND 250 million (approximately $11,000) which is about 3 times less than the amount stated in Decree 96. On another note, forex/gold relevant to trading violations may be confiscated and the certificate of registration for forex agent and business operation license of gold of relevant parties may be suspended or revoked.
Developments in securities regulation
In early 2007, the first Securities Law of Vietnam (No. 70/2006/QH11, 2007) came into effect, which consisted of 11 chapters and 136 articles (as amended on November 24, 2010). The Securities Law primarily covers domestic issues of Vietnam dong-denominated securities and is, therefore, limited to public issues of securities and does not apply to the private placement of unlisted securities. The term “securities” covers a wide range of valuable instruments, including:
• Stocks.
• Bonds.
• Warrants.
• Certificates.
• Put and call options.
• Futures contracts, irrespective of their form.
• Investment capital contribution contracts.
Specifically, the Securities Law governs:
• Public offerings of securities.
• Listings.
• Dealing.
• Trading.
• Investment in securities.
• Securities services.
The establishment and regulation of securities companies and investment funds
The Securities Law 2019’s area of application considers the systems for trading of listed securities and the systems for trading of unlisted securities, organized and run by the Vietnam Stock Exchange (VSE) and its subsidiaries. The local regulator, the State Securities Commission (SSC), controls and supervises these systems; however, they are independent legal entities. The SSC is a State body that the Ministry of Finance oversees.
The Government and the MoF have issued several decrees, decisions and circulars to implement the Securities Law. Under the Securities Law, publicly offered securities in Vietnam have to be denominated in VND. A joint-stock company must satisfy the following requirements to offer its shares publicly for the first time, among others:
a) the contributed charter capital is at least 30 billion VND on the offering date according to the accounting books;
b) the company has profit over the last two years and has no accumulated loss on the offering date;
c) there is a plan for issuance and use of capital generated by the offering ratified by the General Meeting of Shareholders;
d) at least 15% of its voting shares have been sold to at least 100 non-major shareholders. If the issuer’s charter capital is 1.000 billion VND or above, the ratio shall be 10%; and
e) before the offering date, the major shareholders have made a commitment to hold at least 20% of the issuer’s charter capital for at least one year from the end of the offering.
On January 10, 2012, the MoF issued Decision No. 62/QD-BTC re: approval of the project plan for the restructuring of securities companies. This decision was known as a key in the master plan to renovate the stock market/sector, insurance market and securities companies which have been submitted to the Party Politburo by the MoF. According to this decision, securities companies shall be evaluated based on the available capital/risk/accumulated losses index and categorized into three groups (normal, control and special control).
The decision does not provide any clear restructuring plan but promulgates certain controlling methods and penalties applicable to securities companies not satisfying the required available capital/risk index such as disclosure/report requirements, supervising or license withdrawal. On February 28, 2019, the Prime Minister issued Decision No.242/QD-TTg, approving the plan for restructuring.
Decree No. 155/2020/ND-CP was issued on December 31, 2020 to provide guidelines for Securities Law 2019 and the Law amending certain articles of the Securities Laws on offers for sale of securities, listing, trading, business and investment in securities, and services in relation to securities and securities market. This decree abolished Decree No. 58/2012/ND-CP dated July 20, 2012 and Decree No. 60/2015/ND-CP dated June 26, 2015.
Decree 155 does not limit foreign ownership applicable to public companies engaging in business lines that do not have a foreign-ownership threshold in Vietnam, and allows foreign companies to invest in government and company bonds in Vietnam.
Public offerings
To open the procedure for public offering it is necessary to file an application in the form of a registration statement, which includes:
• The prospectus.
• The audited financial statements for the preceding two fiscal years.
• The issuer’s constitutional documents and relevant corporate resolutions.
The main contents of a prospectus are prescribed in Circular No. 120/2020/TT-BTC dated December 31, 2020 of the MoF providing guidance on the listing of securities on stock exchanges. Foreign investors should be aware of the lack of fixed standards for financial statements and accounting in Vietnam, which can result in inconsistencies in financial reporting and quality levels.
Private placements
A private placement is defined in the Securities Law 2019 as an arrangement for offering securities to less than one hundred investors, not including professional securities investors or for offering to professional investors only.
Securities Law 2019 as amended by Law No. 56/2024/QH dated November 29, 2024 on amendents to Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management and Use of Public Property, Law on Tax Administration, Law on PIT, Law on Natural Reserves, and Law on Penalties for Administrative Violation provides conditions for a private placement made by public companies as follows:
a) there is a decision of the General Meeting of Shareholders to ratify the plan for issuance and the plan for use of capital generated by the private placement with specific criteria and quantity of investor, number of shares, offer prices or rules for determination thereof;
b) the private placement of shares or convertible bonds is only available to strategic investors and professional investors; the private placement of warrant-linked bonds is only available to professional investors;
c) the transfer of privately placed shares, convertible bonds and warrant-linked bonds is limited to three years for strategic investors and one year for professional investors from the ending date of the private placement, except for transfer between professional investors, transfer under an effective court judgment or decision, arbitral decision and transfer due to inheritance as prescribed by law;
d) there is an interval of at least six months between two private placements of shares, convertible bonds, warrant-linked bonds; and
e) the ratio of holding of shares, conversion of bonds into shares and execution of warrants by foreign investors is conformable with law.
If an application file is incomplete and invalid, the competent State authority shall, within five days from the date of receipt of the application file for registration of a private placement of shares, provide its opinion in writing requesting the issuing organization to amend the file. The date of receipt of the valid and complete file shall be the date on which the issuing organization completes the amendment and addition to the file.
Within 15 days from the date of receipt of the valid and complete file for registration, the State authority provides notification to the registering organization and publishes on its website the private placement of shares of the registering organization. The issuing organization shall, within 10 days from the selling tranche completion date, submit a report on the results of the private placement to the competent State authority on the standard form annexed to Decree No. 155/2020/ND-CP.
Conditions for listing on the Vietnam Stock Exchange (which has two subsidiaries being Hanoi Stock Exchange and the Ho Chi Minh Stock Exchange)
A company may have its shares listed if:
a) it is a joint stock company whose contributed charter capital at the time of listing application is at least 30 billion VND according to the latest audited financial statement and its net worth is at least 30 billion VND according to the weighted mean of buying price of shares in the latest public offering as prescribed by this Decree, or the average reference price of shares traded on UPCOM over the last 30 sessions before the application is submitted or the weighted mean of buying price in the first offering of the equitized enterprise;
b) the GMS has approved the listed; shares have been traded on UPCOM for at least two years unless the applicant has made a public securities offering or equitized;
c) ROE of the year preceding the application year is at least 5% and the business performance of two years preceding the application year is profitable; there are no debts that have been overdue for more than one year up to the application date; there is no accumulated loss according to the latest audited annual financial statement or examined mid-year financial statement in case the application is submitted after ending date of the period covered by the mid-year financial statement;
d) unless the enterprise is equitized, the applying organization has at least 15% of voting shares being held by at least 100 shareholders other than major shareholders; in case the organization’s charter capital is at 1000 billion VND or over, the ratio shall be 10%;
e) shareholders that are individuals, organizations represented by President of the Board of Directors, members of the Board of Directors, Chief Controller, Controllers, General Director/Director, Deputy Director/Deputy General Director, chief accountant, Financial Director and people holding equivalent managerial positions have a commitment to keep holding 100% of the shares they are holding for six months from the first trading date on the Stock Exchange and 50% of these shares for the next six months, not including the state-owned shares owned by these individuals;
f) the company and its legal representative have not faced penalties for two years before the application date for the violations specified in Article 12 of the Law on Securities; and
g) there is a securities company that provides listing advisory services unless the applying organization is a securities company.
Registration at Vietnam Stock Exchange (VNX)
Companies wishing to register to list securities must lodge an application file for registration for listing with the VNX. An application file for registration to list shares shall comprise the following key documents, among other things:
• general meeting of shareholders’ approval;
• register of shareholders, as entered one month prior to the date of lodging the application;
• prospectus;
• undertaking of certain shareholders such as members of the board of management or board of controllers, the director (general director), deputy director (deputy general director) and the chief accountant of the company, etc. to hold 100% of the shares they own for six months from the date of listing and 50% of this number of shares for the following six months;
• certificate from the Securities Depository Centre confirming registration by the institution and deposit of the shares at such Centre; and
• written consent from the State Bank in the case of a shareholding credit institution.
The VNX/HOSE/HNX shall approve or refuse to approve an application for registration for listing within 30 days from the date of receipt of a complete and valid application file, and in a case of refusal shall specify its reasons in writing.
Decree No. 155/2020/ND-CP dated December 31, 2020 on foreign ownership in stock market
In April 2009, the Prime Minister issued Decision 55/2009/QD-TTg governing the purchase and sale of “securities in Vietnam’s stock market”. It stipulates the difference between local investors and foreign investors, in accordance with foreign-invested local investment funds. It also states the 49% rule. This means that local investment funds and local securities investment companies are considered foreign investors if foreigners hold more than 49% of the interest of a corporation.
The above limitation of 49% was removed on September 1, 2015 under Decree No. 60/2015/ND-CP, i.e., generally, there is no limitation on foreign ownership ratio except for “conditional” sectors. In particular, the limitation would be subject to the WTO commitments or other specific domestic law (e.g., the 30% cap in the banking sector). Under Decree 155, the above limitation is elaborated as follows:
Maximum foreign ownership ratio in a public company:
a) If the business lines of the public company are regulated by a treaty to which Vietnam is a signatory, the treaty shall apply;
b) If the business lines of the public company are regulated by regulations of law which specify foreign ownership ratio, these regulations shall apply;
c) If the business lines of the public company are on the list of restricted market access, regulations on the foreign ownership ratio of each category shall apply. If foreign ownership ratio limits are not specified in such regulations, the maximum foreign ownership ratio in the company shall be 50% of charter capital;
d) If the public company does not fall into any of the cases specified in Points a, b, c, there is no maximum limit for the foreign ownership ratio;
e) In case the public company has multiple business lines that are subject to different foreign ownership ratio limits, the foreign ownership ratio must not exceed the lowest limit among them; and
f) In case the public company imposes a foreign ownership ratio limit that is lower than that specified in Points a, b, c, d and e, it must be approved by the GMS and specified in its charter.
Foreign investors may invest without limits into debt instruments of the Government, government-backed bonds, municipal bonds, corporate bonds, fund certificates, shares of investment companies, derivative securities, DRs and secured warrants unless otherwise prescribed by relevant laws.
Circular No. 51/2021/TT-BTC dated June 30, 2021
At the end of 2008, two years after the first Securities Law, the SSC and the MoF enacted Decision 121/2008/QD-BTC to make the market more interesting for foreign investment as well as to penalize those who disobey the Securities Law. Decision 121 governed the activities of foreign investors in the Vietnamese securities market.
On December 6, 2012, the MoF adopted Circular No. 213/2012/TT-BTC governing foreign investors’ activities in the Vietnamese securities market. Circular 213 became effective on February 15, 2013 and replaced Decision 121.
On August 18, 2015, the MoF issued Circular No. 123/2015/TT-BTC governing foreign investment activities in the Vietnamese securities market (became effective on October 1, 2015), to guide Decree 60 and replace Circular 213. On 16 August 2021, Circular 123 was replaced by Circular No. 51/2021/TT-BTC of 2021.
Circular 51 provides detailed documents and procedures for foreign investors to operate in Vietnam’s stock exchanges. The circular streamlines the procedures for market participation of foreign investors in Vietnam’s stock market by reducing the amount of necessary documentation and simplifying the procedure. For example, the circular removes the need to translate documents into Vietnamese by allowing them to be submitted in English.
The circular sets out that foreign investors are required to apply for the Securities Trading Code (STC) before trading shares, bonds or other types of securities under the securities market regulations.
Notification procedure on foreign ownership limits (FOL)
Circular 155 requires that public companies are responsible for determining the applicable FOL. Following the determination of the FOL which is applicable to them, companies must file a notification dossier with the State Securities Commission (SSC). This dossier includes: (i) extracted information on business lines as uploaded on the National Business Registration Portal and the electronic address linking to such information; and (ii) Minutes of Meeting and the Resolution of the Board of Management approving the unrestricted FOL (if the company does not wish to maintain an FOL) or Minutes of Meeting and the Resolution of the General Shareholders’ Meeting approving and the charter providing for the specific FOL (if the company wishes to maintain FOL).
The SSC will have seven working days to acknowledge in writing the notification on FOL.
Futher Amendment to Securities Law 2019 under Law No. 56/2024/QH15
On 29 November 2024, the National Assembly of Vietnam adopted Law No. 56/2024/QH15, amending several provisions of, among others, Securities Law 2019 (“Amendment Law”).
The Amendment Law came into effect on 1 January 2025, with some provisions on professional securities investors and eligibility of public companies taking effect on 1 January 2026.
Under the Amendment Law, any foreign investors—regardless of business type, capital, or operating history—automatically qualifies as a professional securities investor (PSI). Consequently, foreign investors are no longer required to undergo the PSI status verification process.
Only institutional PSIs are permitted to buy and trade privately placed and unlisted bonds. Individual PSIs may only trade and transfer privately issued if they meet one of the following conditions: (a) the bonds have credit ratings and secured assets; or (b) the bonds have credit ratings and be underwritten by credit institutions.
New Law on Credit Institutions
On 18 January 2024, the National Assembly adopted Law on Credit Institutions No. 32/2024/QH15 (“CI Law”) which took effect from 1 July 2024 and replaced the Law on Credit Institutions No. 47/2010/QH12.
The law reduces the permiitted ownership stakes for Vietnamese organisational shareholders (including indirect shareholders) from 15% of the charter capital of the credit institution to 10% and for individual shareholders and related persons from 20% to 15%. For shareholders whose shareholdings are higher than the new limit mentioned above, they are allowed to retain their shareholding but are not allowed to increase their shareholding until they have complied with the limit above, except when the increase is due to the distribution of dividend by shares.
The CI Law stipulates a 5-year roadmap for commercial banks and foreign banks to gradually reduce credit limits for a single customer (from 15% to 10% of their equity) and groups of single customers and related persons (from 25% to 15%) to minimise the concentration risk. The law also requires non-bank credit institutions to limit their credit exposure to not exceed 15% of their equity for a single customer or 25% for a group of single customers and related persons, starting July 1st, 2024.
The CI Law allows certain new business lines in the regulations on business activities of credit institutions. In particular, commercial banks and foreign bank branches are entitled to act as security agent on behalf of lenders that are international financial institutions, foreign credit institutions, local credit institutions and foreign bank branches.
This country profile was kindly provided by Dr. Oliver Massmann, general director of Duane Morris Vietnam LLC. Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions.