Duane Morris Vietnam

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.
However, today a process of privatization is underway and the goal is to reduce the state’s share of ownership step-by-step to at least 51% during 2021-2025 under Decision No. 986/QĐ-TTg dated August 8, 2018 of the Prime Minister approving the plan for development of Vietnamese banks up to 2025, vision to 2030.
As of December 1, 2022, the State’s 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 01/2014/ND-CP on purchase by foreign investors of shareholding in Vietnamese credit institutions. Decree 01 became effective on February 20, 2014 and replaced Decree 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 include 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 become a credit institution operating in the form of a shareholding company.
Foreign investor includes 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 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 a case of 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 as 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 in the Vietnamese credit institution within five years after becoming the 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 to transfer to modern technology, to develop banking products and services, and to raise its financial, managerial and operational capacity.
The shareholding ratio of any one foreign investor and its affiliates must not exceed 20 percent 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 one 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 none specific regulations on the rate of foreign ownership, the maximum rate of foreign ownership will be 49% of charter capital of such institution.
In a special case in order to implement restructuring of a credit institution which is weak and/or facing difficulties, in order to ensure 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 MoF is required to draft a Government’s 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 is 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 transfer, the foreign ownership ratio can reach up to 49%.
Nevertheless, a point worth noting is that Vietnam committed in EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement to: (i) increase the share ownership ratio of European investors to 49% in two Vietnamese banks (except the aforementioned 4 largest State-owned banks) in the next 5 years; and (ii) after 5 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. The EU-Vietnam Investment Protection Agreement is pending ratification by EU Member States.
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 has 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 26, 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 institution and foreign bank branches under the Law on Credit Institution, 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 03/2016/TT-NHNN and its amending circulars. Circular 12 has helped to improve the legal framework for 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 import of goods no longer requires 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, (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 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 purposes of the 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 head quarter, 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, the possible penalty for violations re: trading on gold bars without license is only 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 certificate of registration for forex agent and business operation license of gold of relevant parties may be also 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 Vietnam Stock Exchange (VSE) and its subsidiaries. The local regulator, the State Securities Commission, 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 2 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%.
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 1 year from the end of the offering.
On January 10, 2012, the MoF issued Decision No. 62/QD-BTC re: approval of project plan for 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 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 foreign-ownership threshold in Vietnam, and allow foreign companies to invest in government’s and companies’ 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 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 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 investors;
b) The private placement is only available to strategic investors and professional investors;
c) The transfer of privately placed shares, convertible bonds and warrant-linked bonds is limited to 03 years for strategic investors and 01 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 6 months between two private placements of shares, convertible bonds, warrant-linked bonds;
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 amendment and addition to the file.
Within 15 days from the date of receipt of the valid and compete file for registration, the State authority provides notification to the registering organization and publish 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 155/2020/ND-CP.
Conditions for listing on Vietnam Stock Exchange (which has two subsidiaries being Hanoi Stock Exchange and 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 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 2 years unless the applicant has made public securities offering or equitized;
c) ROE of the year preceding the application year shall be at least 5% and the business performance of 2 years preceding the application year is profitable; there are no debts that have been overdue for more than 1 year up to the application date; there is not 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 shall have 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 shall have commitment to keep holding 100% of the shares they are holding for 06 months from the first trading date of on the Stock Exchange and 50% of these shares for the next 06 months, not including the state-owned shares owned by these individuals;
f) The company and its legal representative have not face penalties for 02 years before the application date for the violations specified in Article 12 of the Law on Securities;
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 percent 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 is 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 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 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;
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 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 213/2012/TT-BTC governing foreign investors’ activities in Vietnamese securities market. Circular 213 became effective on February 15, 2013 and replaced Decision 121. On August 18, 2015, the MoF issued Circular 123/2015/TT-BTC governing foreign investment activities in 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 51/2021/TT-BTC of 2021.
Circular 51 provides detailed documents and procedure for foreign investors to operate in the Vietnam’s stock exchanges. The circular streamlines the procedures for market participation of foreign investors in the Vietnam’s stock market by reducing the amount of necessary documentation and simplify 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 7 working days to acknowledge in writing the notification on FOL.
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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.

Banking Sector:

Vietnam’s banking system is a multifaceted structure including banks, non-bank credit institutions, micro financial institutions, people’s credit funds, foreign banks, and representative offices of banks. Notably, certain banks in Vietnam have set limits on maximum foreign ownership, reflecting the nation’s commitment to controlling its financial institutions. This is particularly emphasized in international agreements such as the EVFTA, where Vietnam pledges to enhance its banking services.
Despite facing significant challenges in capital raising and risk management improvement, Vietnamese banks remain open to foreign investment, with foreign ownership reaching up to 30%. Additionally, EU investors can participate in two joint-stock commercial banks with ownership stakes of up to 49%, fostering competition.
The role of State banks in Vietnam’s commercial banking operations involves implementing safeguard mechanisms through various measures and tools. This regulatory approach aims to maintain stability and security within the banking sector.
The digital transformation of banks in Vietnam has brought both opportunities and risks. While digitalization enhances operational efficiency, it also poses cybersecurity and information safety concerns. Recognizing these risks, the Vietnamese government issued the Law on Cybersecurity 2018 and Resolution No. 100/NQ-CP, and the State Bank of Vietnam issued Circular to bolster cybersecurity measures.

Insurance Sector:

Vietnam’s insurance market has experienced substantial growth from 2016 to 2021, presenting enticing opportunities for European investors. The opportunities is that investors could hold the majority shares and have major influences in companies. Moreover, the Draft revised Law on Insurance Business permits subsidiary companies to invest in Vietnam, even if they may not satisfy the regulatory requirements.
The country is actively promoting digital transformation in the insurance sector, with the Ministry of Planning and Investment launching a program to support this initiative from 2021 to 2025. However, as with banking, the insurance industry faces cyber threats, prompting the Ministry of Public Security to draft a Decree on Penalties for Administrative Violations in Cybersecurity.
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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.

Die Frage nach dem Umgang mit personenbezogenen Daten ist im Zeitalter der Digitalisierung aktueller als je zuvor. Es häufen sich die Fälle, in denen großen Unternehmen oder auch nationalen Regierungen vorgeworfen wird, personenbezogene Daten von Bürgern ohne deren Einwilligung zu verarbeiten. Auch Vietnam bildet hier keine Ausnahme.
Am 17. April 2023 hat die vietnamesische Regierung das Gesetz Nr. 13/2023/ND-CP über den Schutz personenbezogener Daten (PDPD) erlassen. Das lang erwartete und zugleich auch umstrittene Gesetz ist das erste Rechtsdokument mit umfassenden Bestimmungen zu personenbezogenen Daten und deren Schutz in Vietnam. Mit Ausnahme der zweijährigen Übergangsfrist für kleine und mittlere Unternehmen (KMU) gilt das PDPD seit dem 1. Juli 2023 für alle Unternehmen mit Sitz in/oder außerhalb Vietnams, die in Vietnam Tätigkeiten im Zusammenhang mit der Verarbeitung personenbezogener Daten ausüben. Im Folgenden werden einige Schlüsselbegriffe und Grundlagen der PDPD erläutert.
I. Die Grundlagen: Neues Gesetz über den Schutz personenbezogener Daten und die grenzüberschreitende Übermittlung von Daten
1. Begriffsbestimmung
Das Gesetz bezeichnet personenbezogene Daten als Informationen über eine Person in jedweder Form (Zeichen, Buchstaben, Zahlen, Bilder usw.), die die tatsächliche oder mögliche Identifizierung einer bestimmten Person betreffen, und unterteilt diese in zwei Kategorien: (i) allgemeine personenbezogene Daten wie Name, Geburtsdatum, Blutgruppe, Familienstand und – nicht zuletzt – Daten, welche die Aktivität oder den Aktivitätsverlauf einer Person im Cyberraum widerspiegeln; und (ii) sensible personenbezogene Daten, die sich auf die politische Meinung, die Gesundheit, finanzielle Informationen (Kreditgeschichte, Einkommensniveau …), soziale Beziehungen und Daten beziehen, die kraft Gesetzes als besonders schützenswert gelten und entsprechende Sicherheitsmaßnahmen erforderlich machen.
Die Verarbeitung personenbezogener Daten ist im weitesten Sinne definiert als ein oder mehrere Vorgänge betreffend solcher Daten, wie das Erheben, Erfassen, Analysieren, Speichern, die Veränderung, Offenlegung, Zugangsgewährung, das Auslesen, die Ver- und Entschlüsselung, die Bereitstellung, das Löschen bzw. die Vernichtung sowie andere damit zusammenhängende Vorgänge.
Der Begriff der automatisierten Verarbeitung personenbezogener Daten umfasst alle Formen der elektronischen Verarbeitung solcher Daten mit dem Ziel der Auswertung, Analyse und Vorhersage der Aktivitäten einer bestimmten Person, wie z.B. Gewohnheiten, persönliche Vorlieben, Zuverlässigkeit, Verhalten, Aufenthaltsort, Tendenzen, Fähigkeiten und andere Umstände.
Das PDPD kennt die Begriffe des „Verantwortlichen“ und des „Auftragsverarbeiters“ und weist damit deutliche Parallelen zur vertrauten EU-Datenschutzgrundverordnung (EU-DSGVO) auf, führt aber darüber hinaus auch den Begriff der „für die Kontrolle und Verarbeitung personenbezogener Daten verantwortlichen Stelle“ (Stellen) ein.
Der für die Verarbeitung personenbezogener Daten Verantwortliche ist dabei eine Einrichtung oder Person, die über die Zwecke und Mittel der Verarbeitung entscheidet; der Auftragsverarbeiter – eine Einrichtung oder Person, die Daten im Auftrag des Verantwortlichen aufgrund eines Vertrags oder einer Vereinbarung mit diesem verarbeitet. Die für die Kontrolle und die Verarbeitung personenbezogener Daten zuständige Stelle ist dagegen eine Einrichtung oder Person, die über die Zwecke und Mittel der Verarbeitung personenbezogener Daten entscheidet und diese zugleich direkt verarbeitet.
2. Einwilligung und Ausnahmen
Im Grundsatz macht das PDPD die Verarbeitung und Weitergabe personenbezogener Daten von der Erteilung einer Einwilligung durch den Betroffenen (Dateninhaber) abhängig und sieht lediglich fünf Ausnahmen von diesem Grundsatz vor:
• in Notsituationen zum Schutz des Lebens und der Gesundheit des Betroffenen oder anderer Personen;
• zwecks rechtmäßiger Offenlegung der Daten;
• im Falle der Verarbeitung durch die zuständigen öffentlichen Stellen für die Zwecke der Landesverteidigung und Landessicherheit, im Katastrophenfall und bei lebensbedrohlichen Krankheiten;
• zwecks Erfüllung vertraglicher Verpflichtungen des Betroffenen; und
• im Rahmen der Erfüllung von in Spezialgesetzen festgelegten Tätigkeiten öffentlicher Stellen.
Das Schweigen oder die fehlende Reaktion des Betroffenen auf eine Anfrage zur Verarbeitung personenbezogener Daten gilt nicht als Einwilligung. Zudem kann der Betroffene seine Einwilligung auf einen bestimmten Teil der Verarbeitung beschränken oder diese an Bedingungen knüpfen. Die Einwilligung des Betroffenen muss dabei in ausdruckbarer und kopierbarer Form erfolgen. Darüber hinaus ist sie nur wirksam, wenn der Betroffene sie freiwillig und unmissverständlich in Kenntnis (i) der Art der zu verarbeitenden personenbezogenen Daten; (ii) des Zwecks der Verarbeitung; (iii) der hierzu befugten Stellen; und (iv) seiner Rechte und Pflichten als Betroffener erteilt.
Bei sensiblen personenbezogenen Daten muss der Betroffene umfassend über die Natur der sensiblen Daten als solche informiert werden. Im Streitfall liegt die Beweislast bei dem Verantwortlichen bzw. der für die Kontrolle und Verarbeitung personenbezogener Daten verantwortlichen Stelle.
3. Hinzukommt, dass der Betroffene vor jeder Verarbeitung sensibler personenbezogener Daten zu benachrichtigen ist, es sei denn:
• dieser kennt den Inhalt der Verarbeitung und stimmt dieser zu;
• die Daten werden von einer zuständigen öffentlichen Stelle in Ausübung der ihr gesetzlich übertragenen Aufgaben verarbeitet;
• die Verarbeitung dient dem Schutz des Lebens und der Gesundheit des Betroffenen oder anderer Personen in Notsituationen;
• die Offenlegung der Daten beruht auf einer gesetzlichen Grundlage;
• die Verarbeitung personenbezogener Daten erfolgt durch die zuständige Regulierungs-/Aufsichtsbehörde im Falle eines Notstands zur Verteidigung des Staates sowie der öffentlichen Ordnung und Sicherheit, bei Katastrophen größeren Ausmaßes oder gefährlichen Epidemien; im Falle einer Bedrohung der Landesverteidigung und Landessicherheit, ohne dass der Notstand ausgerufen werden muss; zur Verhütung und Bekämpfung von Unruhen und Terrorismus, Straftaten und Rechtsverstößen gemäß den gesetzlichen Bestimmungen;
• die Verarbeitung dient der Erfüllung vertraglicher Verpflichtungen des Betroffenen gegenüber öffentlichen Stellen, Einrichtugnen oder Privatpersonen gemäß den gesetzlichen Bestimmungen;
• die Verarbeitung dient der Erfüllung gesetzlicher Aufgaben der Regulierungs-/Aufsichtsbehörden;
4. es handelt sich um die Anfertigung von Ton- und Bildaufnahmen an öffentlich zugänglichen Orten durch die zuständigen öffentlichen Stellen und deren Verarbeitung durch diese Stellen zum Schutz der öffentlichen Sicherheit und Ordnung sowie der berechtigten Interessen und Rechte von Einrichtungen und Privatpersonen gemäß den gesetzlichen Bestimmungen.
5. Im Übrigen ist der Verantwortliche bzw. die für die Kontrolle und Verarbeitung verantwortliche Stelle verpflichtet, den Betroffenen vor der Verarbeitung zu benachrichtigen, es sei denn, einer der folgenden Ausnahmefälle liegt vor:
• der Betroffene ist mit der Verarbeitung und deren Inhalt einverstanden;
• die Verarbeitung dient dem Schutz des Lebens und der Gesundheit des Betroffenen oder anderer Personen in Notsituationen;
• die Offenlegung der Daten beruht auf einer gesetzlichen Grundlage;
• die Verarbeitung personenbezogener Daten erfolgt durch die zuständige Regulierungs-/Aufsichtsbehörde im Falle eines Notstands zur Verteidigung des Staates sowie der öffentlichen Ordnung und Sicherheit, bei Katastrophen größeren Ausmaßes oder gefährlichen Epidemien; im Falle einer Bedrohung der Landesverteidigung und Landessicherheit, ohne dass der Notstand ausgerufen werden muss; zur Verhütung und Bekämpfung von Unruhen und Terrorismus, Straftaten und Rechtsverstößen gemäß den gesetzlichen Bestimmungen;
• die Verarbeitung dient der Erfüllung vertraglicher Verpflichtungen des Betroffenen gegenüber öffentlichen Stellen, Einrichtugnen oder Privatpersonen gemäß den gesetzlichen Bestimmungen;
• die Verarbeitung dient der Erfüllung gesetzlicher Aufgaben der Regulierungs-/Aufsichtsbehörden.
6. Die grenzüberschreitende Übermittlung personenbezogener Daten vietnamesischer Bürger muss die folgenden drei Voraussetzungen erfüllen:
• der Betroffene hat in die Übermittlung eingewilligt;
• die Originaldaten werden in Vietnam aufbewahrt;
• die Stellen (d.h. der für die Verarbeitung personenbezogener Daten Verantwortliche, der Auftragsverarbeiter, die für die Kontrolle und Verarbeitung verantwortliche Stelle bzw. Dritte), die personenbezogene Daten ins Ausland übermitteln, müssen eine Abschätzung der Folgen dieser Übermittlung vornehmen (sog. Transfer Impact Assessment, „TIA“).
Das PDPD verpflichtet die übermittelnden Stellen, das TIA dem Ministerium für öffentliche Sicherheit – Abteilung für Cybersicherheit und Bekämpfung von High-Tech-Kriminalität innerhalb von 60 Tagen ab dem Zeitpunkt der Verarbeitung vorzulegen. Obwohl es sich hierbei – aus Sicht der adressierten Unternehmen – um eine neue Verpflichtung handelt, dürfte deren Umsetzung nicht nur für diese, sondern auch für die zuständigen Aufsichtsbehörden zeitaufwändig sein.
7. Rechtsfolgen von Verstößen gegen die Datenschutzvorschriften:
• Geldstrafen in Höhe von 50 Millionen bis 100 Millionen VND;
• Strafen nach dem vietnamesischen Strafgesetzbuch;
• Zusätzliche Sanktionen: Aussetzung der Verarbeitung personenbezogener Daten für einen Zeitraum von bis zu drei Monaten, Entzug des Rechts, die vom Datenschutzausschuss erteilte schriftliche Genehmigung zur Verarbeitung sensibler personenbezogener Daten und zur grenzüberschreitenden Übermittlung von Daten zu verwenden, Erzwingung der Zahlung von aus der Begehung von Verstößen stammenden Geldbeträgen.
Bei wiederholten Verstößen gegen die Vorschriften zum Schutz personenbezogener Daten kann zusätzlich zu den oben genannten Strafen ein Bußgeld in Höhe von bis zu 5 % des Gesamtumsatzes des datenverarbeitenden Unternehmens verhängt werden.
II. Vietnams Verpflichtungen im Rahmen von EVFTA und CPTPP
Datenschutz und verwandte Themen spielen eine Schlüsselrolle bei der Gestaltung der digitalen Wirtschaft. Das PDPD ist eines von mehreren Rechtsinstrumenten, die in Vietnam entwickelt wurden, um das Land näher an internationale Standards heranzuführen. Es ist jedoch das erste umfassende Regelwerk im Bereich des Schutzes personenbezogener Daten.
Die Verpflichtungen Vietnams zum Datenschutz im Rahmen des CPTPP werden hauptsächlich in Kapitel 14 (elektronischer Geschäftsverkehr) behandelt. Artikel 14.11 legt fest, dass die grenzüberschreitende Übermittlung von Daten zulässig sein muss, es sei denn, ihre Verhinderung dient einem legitimen Ziel der öffentlichen Ordnung, vorausgesetzt, dass die Maßnahme zur Verhinderung nicht in einer Weise angewandt wird, die ein Mittel zur willkürlichen oder ungerechtfertigten Diskriminierung oder eine verschleierte Beschränkung des Handels darstellen würde, und dass sie die Übermittlung von Informationen nicht stärker einschränkt, als es zur Erreichung dieses Ziels erforderlich ist. Artikel 14.13 legt für jede Vertragspartei die gleichen Voraussetzungen hinsichtlich der Lokalisierung von Daten fest.
Während Kapitel 8 des EVFTA Fragen des Handels, des elektronischen Geschäftsverkehrs sowie Dienstleistungensfragen abdeckt, enthält es keine unmittelbaren Verpflichtungen zu Fragen des elektronischen Geschäftsverkehrs, des Datenschutzes oder der Datenlokalisierung, mit der einzigen Ausnahme, dass es zur Bildung eines Ausschusses aufruft, der einheitliche Grundsätze und Regelungen in Bezug auf diese Bereiche entwickeln soll.
III. Vorläufige Hinweise zur praktischen Handhabung
Das PDPD erlegt den Stellen, die personenbezogene Daten verarbeiten, eine Reihe von Verpflichtungen auf. Daher ist es für Arbeitgeber/Unternehmen (der „Arbeitgeber“ oder das „Unternehmen“) von entscheidender Bedeutung, diese zu berücksichtigen und in die internen Vorschriften und Verträge/Vereinbarungen mit Dritten aufzunehmen.
1. Interne Arbeitsvorschriften und Arbeitsverträge
So ist beispielsweise erforderlich, dass der Arbeitgeber alle relevanten Verpflichtungen in Bezug auf personenbezogene Daten seiner Angestellten, Mitarbeiter, Vorstandsmitglieder usw. sowie in Bezug auf die Kunden, Mitglieder und deren Mitarbeiter in die internen Arbeitsregeln/Kodizes und in den Tarifvertrag (falls vorhanden) aufnimmt. Dadurch soll sichergestellt werden, dass seine Angestellten und Mitarbeiter die Verpflichtungen in Bezug auf personenbezogene Daten einhalten.
Andernfalls besteht ein erhebliches Risiko, dass der Arbeitgeber die volle Verantwortung für die unrechtmäßige Verarbeitung und Offenlegung personenbezogener Daten durch seine Mitarbeiter trägt, ohne über die erforderlichen Instrumente zu verfügen, um gegen solche Verstöße vorzugehen. Darüber hinaus ist es ratsam, in den Arbeitsverträgen eindeutig festzulegen, dass die Arbeitnehmer die vom Arbeitgeber festgelegten sowie die kraft Gesetzes geltenden Vorgaben zum Schutz personenbezogener Daten einhalten müssen.
Es empfiehlt sich auch, in den jeweiligen Arbeitsverträgen klarzustellen und zu vereinbaren, dass der Arbeitgeber personenbezogene Daten des Arbeitnehmers, wie z.B. Steuerdaten, Lebenslauf, Gesundheitsdaten, für die Zwecke des Arbeitsverhältnisses weiterverarbeiten darf. Hierdurch können künftige Klagen von Arbeitnehmern wegen unzulässiger Verarbeitung personenbezogener Daten durch den Arbeitgeber mit hoher Wahrscheinlichkeit vermieden werden. Wir beraten Sie auf Wunsch ausführlich vorbehaltlich der endgültigen Fassung des Gesetzes.
2. Verträge/Vereinbarungen mit Kunden/Mitgliedern
Unternehmen und Arbeitgeber sollten alle gegenwärtigen und zukünftigen Verträge/Vereinbarungen mit Kunden/Mitgliedern überdenken, neu verhandeln und überarbeiten, um sicherzustellen, dass sie zur Verarbeitung/Offenlegung bestimmter personenbezogener Daten berechtigt sind, und dass die betroffenen Kunden/Mitglieder ihre Einwilligung zu einer solchen Offenlegung/Verarbeitung erteilen. Unternehmen sollten – auf Wunsch mit unserer Unterstützung – eine detaillierte Liste sowie Verfahren für die Erhebung, Speicherung, Offenlegung und sonstige Verarbeitung personenbezogener Daten von Kunden/Mitgliedern erstellen.
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Bei Fragen können Sie gerne Dr. Oliver Massmann unter omassmann@duanemorris.com kontaktieren. Dr. Oliver Massmann ist geschäftsführender Direktor von Duane Morris Vietnam LLC.

On 30 December 2023, the Ministry of Industry and Trade (the “MOIT”) issued the draft Circular on the method to determine the electricity generation price and Power Purchase Agreements (the “PPAs”) to replace Circular No. 57/2020/TT-BCT dated 31 December 2020 (the “Draft Circular”). Overall, the Draft Circular regulates the methods for determining the electricity price and PPAs alongside the procedures for the inspection of PPAs.

In further details, the Draft Circular provides some of the notable provisions as follows:

1. To determine the electricity generation price, the reasonable costs of the investor and an internal rate of return not exceeding 12% must be considered. The electricity price encompasses many elements, including the particular connection bidding price and the PPA price, which are determined and agreed upon using the procedures outlined in the Draft Circular. Also, according to the Draft Circular, fees, and payments such as value-added tax, water resource tax, and environmental service fees are not included in the price of energy (except from those that are already included in the electricity pricing plan).
2. During the negotiation process for electricity price for the signing of the PPA, the parties are allowed to agree to a temporary price to use until the parties can mutually decide on a price to submit to the MOIT for its inspection, provided that the temporary price is not higher than the price bracket regulated by the MOIT.
3. To inspect PPAs, it is regulated that the parties entering into a PPA must submit the finalized PPA alongside with relevant application documents to the Electricity Regulatory Authority of Vietnam (the “ERAV”) for the ERAV to check and provide relevant opinions related to the PPA. Within 30 days from the date the ERAV opines on the PPA, the parties are responsible to duly execute the PPA.
4. The electricity generation price under the current PPA will be applied to power plants for the next years until the end of their economic life, provided that the PPA has expired but the plant has not yet reached the end of its economic life. The economic life of each type of power plant is clearly detailed in the Draft Circular.
5. The fixed price of power plants that have reached the end of their economic life is determined based on the principle of making sure the plant recovers costs associated with producing electricity and conducting business. Additionally, the time to calculate the price of electricity generation is determined by taking into account the major equipment repair cycle and a reasonable profit margin agreement. Apply the written consent from the governmental functional units if there is a document from those units authorizing the price calculation time.

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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.

Seit der Aufnahme offizieller bilateraler Beziehungen im Jahr 1995 haben sich die USA und Vietnam zu verlässlichen Partnern entwickelt, die eine von gegenseitigem Respekt geprägte Freundschaft verbindet. Die ehemaligen Feinde haben inzwischen ihre zunehmend aktive und umfassende Kooperationsbeziehung zu einer soliden Partnerschaft in den Bereichen Politik, Wirtschaft, Sicherheit und interpersoneller Austausch ausgebaut.

1993 – Aufhebung des Handelsembargos

Seit dem Sieg des kommunistischen Nordens über Südvietnam im Jahr 1975 hatten die USA ein Handelsembargo gegen Vietnam verhängt, das erhebliche negative Auswirkungen auf den Handel in Vietnam hatte. Im Rahmen des Handelsembargos war es allen US-Bürgern und -Unternehmen untersagt, Waren aus Vietnam aus- oder einzuführen sowie Finanz- und Handelsgeschäfte zu tätigen.

Im Jahr 1993 wurde das Handelsembargo schließlich aufgehoben und damit der Grundstein für die Förderung der Zusammenarbeit und Annäherung zwischen den beiden Staaten gelegt, was auch weitere Fortschritte bei der Aufarbeitug der gemeinsamen Geschichte ermöglichte. Auch wenn die Vereinigten Staaten noch keine uneingeschränkten Beziehungen zu Vietnam aufgenommen haben, so wurden doch rechtliche Beschränkungen abgebaut. Multilaterale Organisationen und die meisten anderen Länder außer den USA haben ihre Beziehungen zu Vietnam wieder uneingeschränkt aufgenommen. US-Vertreter des Privatsektors, einschließlich Unternehmen, Nichtregierungsorganisationen, aber auch vietnamesischstämmige US-Bürger haben sukzessive Beziehungen zu Vietnam aufgebaut. Optimistische Veränderungen in der vietnamesischen Außen- und Innenpolitik haben ebenfalls zu einer breiteren Akzeptanz Vietnams in der internationalen Gemeinschaft beigetragen. Dies schuf letztlich die Grundlage für weitere Reformen und eine positive wirtschaftliche Entwicklung Vietnams.

1995 – Aufnahme diplomatischer Beziehungen durch den ersten US-Botschafter Pete Peterson und seine vietnamesische Ehefrau Vy

Weitere Schritte zur Normalisierung der Beziehungen zwischen den USA und Vietnam wurden mit der im Januar 1995 angekündigten Eröffnung von – in der Folge zu Botschaften aufgewerteten – Verbindungsbüros in den Hauptstädten beider Länder eingeleitet. 1997 wurde Pete Peterson zum ersten US-Botschafter in Vietnam seit 1975 ernannt und damit die Normalisierung der diplomatischen Beziehungen zwischen Vietnam und den USA offiziell besiegelt.

Beide Länder akzeptierten die gemeinsame Vergangenheit und schlugen ein neues Kapitel in der Geschichte ihrer bilateralen Beziehungen auf, um die Schaffung günstiger Rahmenbedingungen für die Erhaltung des Friedens und den Ausbau ihrer Wirtschaften voranzutreiben.

Die Strategie der Normalisierung jener Beziehungen und der Förderung der Zusammenarbeit mit Vietnam entspringt – aus US-amerikanischer Sicht – zum einen den innenpolitischen Bedürfnissen der USA und ist zum anderen Teil der Anpassung ihrer globalen Strategie nach dem Kalten Krieg im Allgemeinen und in Bezug auf den asiatisch-pazifischen Raum sowie Südostasien im Besonderen.

2001 – Das bilaterale Handelsabkommen als Wegbereiter für den Beitritt Vietnams zur Welthandelsorganisation

Am 13. Juli 2000 unterzeichneten die USA und Vietnam ein bilaterales Handelsabkommen (das sog. U.S.-Vietnam Bilateral Trade Agreement, „BTA”). Das BTA markiert einen wichtigen Schritt auf dem Weg zur vollständigen Normalisierung der Handelsbeziehungen zwischen den USA und Vietnam, da es die gegenseitige Meistbegünstigung zwischen den beiden Ländern wiederherstellt und Vietnam dazu verpflichtet, eine breite Palette marktorientierter Wirtschaftsreformen durchzuführen. Im Rahmen des Abkommens verlängern die USA den vorübergehenden Meistbegünstigungsstatus Vietnams. Im Gegenzug führt Vietnam eine Reihe von Maßnahmen zur Marktliberalisierung und zur Reform des bestehenden Handels- und Investitionssystems durch, um gleiche und faire Wettbewerbsbedingungen für US-Unternehmen und -Produkte in Vietnam zu schaffen.

Das BTA gilt zugleich als Sprungbrett für den Beitritt Vietnams zur Welthandelsorganisation („WTO”), da es bereits viele ihrer Grundprinzipien aufgreift, darunter das Meistbegünstigungsprinzip, das Inländerbehandlungs- und das Transparenzprinzip, den Abbau von Handelshemmnissen mittels Verhandlungen, die Förderung eines fairen Wettbewerbs sowie die Förderung von Entwicklung und Wirtschaftsreformen. Mit dem anschließenden Beitritt Vietnams zur WTO im Jahr 2006 gewährten die USA Vietnam einen dauerhaften Meistbegünstigungsstatus. Dies verschaffte Vietnam Zugang zum US- Markt und brachte erhebliche wirtschaftliche Vorteile mit sich, bedingt durch die damit einhergehende Verbesserung der Handelsbedingungen und die effizientere Ressourcenallokation im Land.

Das BTA beinhaltet sieben umfassende Kapitel, die sich mit dem Handel mit Waren und Dienstleistungen, den Rechten an geistigem Eigentum, der Entwicklung von Investitionsbeziehungen, der Erleichterung des Geschäftsverkehrs sowie mit Bestimmungen über Öffentlichkeit und Transparenz befassen und ein eigens dafür vorgesehenes Rechtsbehelfsregime umfassen. Im Zuge der Umsetzung des BTA verzeichneten beide Länder ein bemerkenswertes Wachstum ihrer Ausfuhrumsätze. Im Jahr 2002, kurz nach der Unterzeichnung des BTA, öffnete sich der US-amerikanische Markt für vietnamesische Waren, was einen Ausfuhrumsatz von 16,5 Milliarden US-Dollar generierte und einem Anstieg von fast 10 Prozent im Vergleich zum Vorjahr entsprach. Im Zeitraum von 2001 bis 2008 stiegen die vietnamesischen Exporte in die Vereinigten Staaten kontinuierlich an und erreichten im Jahr 2008 – trotz der Unterbrechung infolge der Finanzkrise 2007 – einen Spitzenwert von fast 12,610 Millionen US-Dollar. Zwischen 2010 und 2018 blieb der Handel zwischen den beiden Ländern beständig und verzeichnete eine durchschnittliche Wachstumsdynamik von 116 %. Das BTA spielte auch eine Schlüsselrolle bei der Förderung von US-Investitionen in Vietnam, wobei sich das registrierte, aus den USA einfließende ausländische Direktinvestitionskapital bei Inkrafttreten des BTA im Jahr 2002 auf 200,1 Millionen US-Dollar belief. Somit hat das BTA die Handels- und Investitionsbeziehungen zwischen Vietnam und den Vereinigten Staaten insgesamt spürbar intensiviert.

September 2023 – Ausbau der Beziehungen zwischen den USA und Vietnam zu einer umfassenden strategischen Partnerschaft

Unlängst, am 10. September 2023, unterzeichneten die Staats- und Regierungschefs beider Länder während des Besuchs von US-Präsident Joe Biden in Vietnam eine Gemeinsame Erklärung zum Aufbau einer umfassenden strategischen Partnerschaft. Sie deckt ein breites Spektrum an Kooperationsbereichen ab, darunter Wirtschaft, Handel und Investitionen. Während der zehnjährigen Umsetzungsphase der umfassenden Partnerschaft haben Vietnam und die USA wiederholt die Bedeutung der Stärkung des bilateralen Handels sowie der Zusammenarbeit bei wichtigen Themen wie Werbung für Finanzdienstleistungen, Informationssicherheitsprodukte sowie Handelsangelegenheiten im Zusammenhang mit weißen Schlachtnebenerzeugnissen und Maisrückstandspulver hervorgehoben.

Die Beziehungen zwischen den USA und Vietnam – Blick in die Zukunft

In Anbetracht der jüngst erfolgten Aufwertung der Beziehungen zwischen Vietnam und den USA zu einer umfassenden strategischen Partnerschaft werden die Handelsbeziehungen zwischen den beiden Nationen die Öffnung eines rechtlichen Korridors erleben. Erstens werden weitere zusätzliche Dialogmechanismen – einschließlich solcher für den politischen Dialog zwecks weiterer Festigung der bilateralen Handelsbeziehungen, ermöglicht durch den vietnamesisch-US-amerikanischen Handels- und Investitionsrat (Vietnam-US Trade and Investment Council – „TIFA”) – eingerichtet. Zweitens streben beide Länder eine – auf Energiewende, Umweltschutz und nachhaltige Entwicklung ausgerichtete – Politik im Geiste einer Entwicklungszusammenarbeit an. Dieser Ansatz erfordert einen behutsamen Transfer moderner Technologien unter genauer Einhaltung der Transparenzvorschriften auf Grundlage des BTA. Im Energiesektor sollen die USA Vietnam bei der Durchführung einer erfolgreichen Energiewende unterstützen. Dabei geht es in erster Linie um – u.a. politisch-strategische – Beratung, die Vietnam bei der Entwicklung geeigneter Strategien für die zukünftige Entwicklung erneuerbarer und sauberer Energien voranbringen soll. Im Fadenkreuz der Initiative stehen darüber hinaus die Unterstützung und Zusammenarbeit mit vietnamesischen Unternehmen. Im Hinblick auf den Handel beabsichtigen beide Staaten, gemäß Artikel 4 des BTA verstärkt Handelsförderungsinitiativen sowie Ausstellungen zu organisieren und Verbindungen zwischen den jeweils zuständigen Institutionen herzustellen. Auch diese konzentrierten Bemühungen haben die Erleichterung des Zugangs vietnamesischer Unternehmen zum US-Markt zum Ziel.

Fazit

Insgesamt hat die Entwicklung der Beziehungen zwischen Vietnam und den USA zu einer Ausweitung und Vertiefung der Umsetzung des BTA geführt, die verschiedene neue Aspekte wie Umweltschutz und nachhaltige Entwicklung, die Einhaltung von Standards für eine “grüne Produktion”, die Schaffung “sauberer und nachhaltiger” Lieferketten und die Stärkung von Handelsförderungsmaßnahmen umfasst. Unter den Bereichen, die in der Gemeinsamen Erklärung hervorgehoben werden, nimmt der Handels- und Investitionssektor zweifellos eine besondere Stellung ein.
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Bei Fragen können Sie gerne Dr. Oliver Massmann unter omassmann@duanemorris.com kontaktieren. Dr. Oliver Massmann ist geschäftsführender Direktor von Duane Morris Vietnam LLC.

After establishing formal bilateral relations in 1995, the U.S. and Vietnam have become reliable partners with a friendship based on mutual respect. From former enemy into partners, the U.S. and Vietnam have an increasingly active and comprehensive cooperative relationship, and have developed into a solid partnership in the fields of politics, economy, security, and people-to-people exchanges.

1993 – lifting trade embargo

The US had imposed a trade embargo on Vietnam since the communist victory over South Vietnam in 1975, leaving a detrimental impact on trade in Vietnam. Under the trade embargo, all U.S. citizens and businesses were barred from exporting or importing any goods from Vietnam, and financial and commercial dealings were also prohibited.

In 1993, the trade embargo was finally lifted, setting a basis to promote cooperation and familiarity between the U.S. and Vietnam, also allowing further advances in resolving matters in the past. Although the United States has not established full relations with Vietnam, legal restrictions have lessened. Multilateral organizations and most countries other than the United States have re-established full relations with Vietnam. U.S. private sector interests, including businesses, NGOs, and Vietnamese-Americans, had established growing ties with Vietnam. Optimistic changes in Vietnam’s foreign and domestic policies have also led to broader acceptance of Vietnam by the international community. This set up a foundation for ongoing reforms and positive economic trends in Vietnam.

1995 – establishing diplomatic relations with first U.S. Ambassador Pete Peterson and his Vietnamese wife Ms Vy

Additional steps toward normalizing U.S – Vietnam relations have continued through the January 1995 announcement as the U.S. and Vietnam were opening liaison offices in each other’s capitals, which was then upgraded to embassy status. In 1997, Pete Peterson was appointed as the first U.S. Ambassador to Vietnam since 1975.

This set an official normalized diplomatic relations between Vietnam and the U.S. The countries accept the past and open a new chapter in the history of the bilateral relationship, aiming to create favorable conditions to focus on maintaining peace and developing the economy.

Looking from the U.S. perspective, the strategy of normalization of relations and promotion of cooperation with Vietnam both stem from the internal needs of the U.S. and is a part of the adjustment of global strategy after the Cold War in general, with the Asia-Pacific and Southeast Asia region in particular.

2001 – the Bilateral Trade agreement which paved the way to Vietnam’s accession to the WTO

The U.S. and Vietnam signed a bilateral trade agreement (BTA) on July 13, 2000, which went into force on December 10, 2001. The BTA is a major step forward in fully normalizing U.S. – Vietnam commercial relations, as it restores reciprocal MFN treatment between the two countries, and commits Vietnam to undertake a wide range of market-oriented economic reforms.

Under the agreement, the U.S. extends temporary MFN status to Vietnam. In return, Vietnam undertakes a wide range of market-liberalization measures, committed to reform its trade and investment regime to provide a much more level and fair “playing field” for U.S. companies and products in Vietnam.

The BTA is also considered a stepping stone towards Vietnam’s accession to the WTO as the Vietnam-U.S. BTA already contains many fundamental principles of the WTO, which cover MFN treatment, national treatment, transparency, lowering trade barriers through negotiations, promoting fair competition, and encourage development and economic reform. When Vietnam joined the WTO in 2006, the U.S. granted Vietnam permanent MFN status. The US granting MFN status to Vietnam gives Vietnam access to the U.S. market and gains economic benefits from improving Vietnam’s terms of trade and the efficiency of resource allocation in the country.

The BTA encompasses seven comprehensive chapters that address Trade in Goods, Trade in Services, Intellectual Property Rights, Development of Investment Relations, Business Facilitation, Regulations on Publicity and Transparency, and Right to appeal. Throughout the BTA’s implementation, both countries experienced remarkable growth in export turnover. In 2002, upon the BTA’s signing, the US market commenced accepting Vietnamese goods, resulting in an export turnover of US$16.5 billion, indicating an almost 10% surge from 2001. From 2001 to 2008, Vietnam’s exports to the United States consistently increased, peaking at nearly US$12.610 million 2008, despite the interruption caused by the 2007 financial crisis. In the period of 2010 to 2018, trade between the two nations remained stable, sustaining growth momentum at an average rate of 116%. The BTA also played a significant role in attracting investment from the United States to Vietnam, with registered US FDI capital amounting to US$200.1 million when the BTA first took effect in 2002. Overall, the BTA has notably bolstered trade and investment ties between Vietnam and the United States.

September 2023 – elevating U.S – Vietnam relations to a Comprehensive Strategic Partnership

Recently, on September 10, 2023, during the visit of US President Joe Biden to Vietnam, the leaders from two countries have signed the Joint Statement on Elevating U.S – Vietnam Relations to a Comprehensive Strategic Partnership. The Joint Statement covers a wide range of cooperation fields, including economic – trade – investment.

Throughout the 10-year period of implementing the Comprehensive Partnership, Vietnam and the United States have reiterated the significance of bolstering bilateral trade, and collaborating to address key concerns, including financial services advertising, information security products, as well as trade matters related to white offal and corn residue powder.

U.S – Vietnam relations – The path ahead

In light of the recent elevation to a Comprehensive Strategic Partnership between Vietnam and the US, trade relations between the two nations will witness the opening of a legal corridor. Firstly, more additional dialogue mechanisms will be established, including policy dialogues facilitated through the Vietnam-US Trade and Investment Council (“TIFA”) to reinforce bilateral trade relations. Secondly, both countries are orienting toward a policy focused on energy transition, environmental conservation, and sustainable development, following the trend of cooperative development. This approach requires the careful transfer of modern technology, adhering meticulously to regulations promoting transparency based on the BTA. Within the energy sector, the U.S will assist Vietnam in executing a successful energy transition. Primarily, this entails guidance and policy advice to enable Vietnam in formulating suitable policies for the development of renewable and clean energy for the future. Additionally, support or collaboration with Vietnamese businesses is sought after as part of this initiative. Regarding commerce, both states intend to arrange increased trade promotion initiatives, exhibitions, and establish connections with pertinent agencies in accordance with Article 4 of the BTA. This concerted effort aims to facilitate Vietnamese businesses’ access to the U.S market.

Conclusion

In general, the advancement of Vietnam-US relations has led to the broadening and deepening of the BTA’s implementation, encompassing various new aspects such as environmental conservation, sustainable development, adherence to “green production” standards, the establishment of a “clean and sustainable” supply chain, and bolstering trade promotion efforts. Among the fields highlighted in the Joint Statement, the trade and investment sector holds particular significance, receiving heightened attention.

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

On 26 November 2023, the Government’s Office has issued official letter No. 9305/VPCP-CN to provide Deputy Prime Minister’s instruction and comments on the 3rd draft of the Plan for Implementation of National Power Development Plan (PDP8). In brief, the Deputy Prime Minister urged the Ministry of Industry and Trade (MOIT) again to double check and update the final Plan in line with Prime Minister’s instructions and relevant energy policy and resubmit the final draft to the Prime Minister by 30 November 2023. It is expected that the final Plan will be adopted within December 2023.

FYI, on 24 November 2023, the MOIT had submitted official letter No. 8356 re: draft Plan for Implementation of PDP8 and explanation to address the below requirements from the Prime Minister:

1. The draft Plan shall fully address all key issues and requirements on adequate power supply and national energy security;
2. The draft Plan shall include feasible solutions for implementation;
3. The draft Plan shall forecast relevant risks and create a plan for managing risks; and
4. The draft Plan shall address action plan for adoption of relevant policies and mechanisms for implementation of projects.

We will keep you informed with the updated progress on this Plan for Implementation of PDP8.

***

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 issue of personal data processing is getting hotter than ever in this digital age with increasing cases where large conglomerate or even national governments being accused of utilizing citizen’s personal data without consent. This trend makes no exception in Vietnam.

On 17 April 2023, Decree No. 13/2023/ND-CP on personal data protection (PDPD) was officially issued by the Vietnamese Government. The long-awaited and controversial decree is set to be the first ever legal document with comprehensive regulations on both personal data and its protection in Vietnam. With an exception being the grace period of 2 years for SMEs, after 1 July 2023, the PDPD will be applicable to all entities located in Vietnam and/or outside Vietnam but directly conducting activities in relation to the processing of personal data in Vietnam. We outline below some key terms and foundation of the PDPD:

I. The Basic: New Decree on Personal Data Protection and Cross-Border Provision of Data

1. Definition

Personal data means data about an individual under all forms (symbol, letter, number, image, etc.), or relating to the identification or possible identification of a particular individual. Personal data is comprised of two tranches: (i) Basic personal data includes name, date of birth, blood type, marriage status and most notably, data that reflects activity or history of activity of an individual on cyberspace; and (ii) Sensitive personal data concerning political opinion, health, financial details (credit history, income level…), social relationships and data considered by laws as specific and require necessary security measures.

Personal data processing is broadly defined as one or more acts having an impact on personal data, including collection, record, analysis, storage, change, disclosure, access right, extraction, withdrawal, encryption, decryption, delivery, deletion, cancelation and other related acts.

Automatic personal data processing is defined as a form of personal data processing carried out by electronic means to evaluate, analyze and predict the activities of a specific person, such as habits, preferences, level of trust, behavior, location, trends, capacity and other circumstances.

Similar to the famous EU’s General Data Protection Regulation, the PDPD introduces the concept of “Personal data controller” and “Personal data processor” and a whole new concept of “Personal data controlling and processing entity” (Entities).

Personal data controller refers to an organization or individual that decides purposes and means of processing personal data. Personal data processor refers to an organization or individual that processes data on behalf of the Personal data controller via a contract or agreement with the Personal data controller. Meanwhile, Personal data controlling and processing entity refers to an organization or individual that jointly decides purposes and means, and directly processes personal data.

2. Consent and Exception

Generally, the PDPD strictly regulates that a data owner must give his/ her consent prior to any processing and disclosing such data, except for the five following limited cases:
• Under emergency situations to protect life and health of the data owner or others;
• Lawful disclosures;
• Processing by competent state authorities for national defense and security, disasters, fatal disease;
• Contractual obligations; and
• Activities of state authorities as stipulated under specified laws.

When requesting to process personal data, the data owner’s silence or unresponsiveness does not constitute approval. The data owner can agree only to a part of the request or approve the request with attached conditions. The data owner’s consent must be displayed in a format that is printable and copy-able in writing. Also, consent is only valid in case the data subject clearly and voluntarily knows (i) the type of personal data to be processed; (ii) the purpose of data processing; (iii) the allowed entities to process personal data; and (iv) their rights and obligations.

With regard to sensitive personal data, the data owner must be fully informed of the nature of the data to be processed. In case of dispute, the burden of proof lies on the data processor.

3. Prior to any processing activity regarding sensitive personal data, the data owner must be notified, except when:

• The data owner knows and fully consents to the contents;
• The personal data is processed by the competent state agency with a view to serving operations by such agency as prescribed by law;
• The personal data shall be processed to protect the life and health of the data subject or others in an emergency situation;
• Disclosure of personal data is in accordance with the law;
• Processing of personal data by competent regulatory authorities in the event of a state of emergency regarding national defense, security, social order and safety, major disasters, or dangerous epidemics; when there is a threat to security and national defense but not to the extent of declaring a state of emergency; to prevent and fight riots and terrorism, crimes and law violations according to the provisions of law ;
• The personal data shall be processed to fulfill obligations under contracts the data subjects with relevant agencies, organizations and individuals as prescribed by law;
• The personal data shall be processed to serve operations by regulatory authorities as prescribed by relevant laws;
• Competent agencies and organizations making audio and video recording and process personal data obtained from audio or video recording activities in public places in order to protect national security, social order and safety, legitimate rights and interests of organizations and individuals as prescribed by law.

4. Personal data processors have an obligation to notify the data owner prior to their processing, except for the following:

• The data owner has fully agreed with the contents and activities of processing personal data;
• The personal data shall be processed to protect the life and health of the data subject or others in an emergency situation;
• Disclosure of personal data in accordance with the law.
• Processing of personal data by competent regulatory authorities in the event of a state of emergency regarding national defense, security, social order and safety, major disasters, or dangerous epidemics; when there is a threat to security and national defense but not to the extent of declaring a state of emergency; to prevent and fight riots and terrorism, crimes and law violations according to the provisions of law ;
• The personal data shall be processed to fulfill obligations under contracts the data subjects with relevant agencies, organizations and individuals as prescribed by law;
• The personal data shall be processed to serve operations by regulatory authorities as prescribed by relevant laws;

5. Cross-border transfer of personal data of Vietnamese citizens must satisfy all following three conditions:

• The data owner consented the transfer;
• Original data is stored in Vietnam;
• A personal data transfer impact assessment records shall be provided by the Parties transferring data abroad (including Personal data controllers, Personal data processors and controllers, Personal data processors, third parties).

The PDPD requires the Entities to make available and submit the dossier on personal data protection impact to the Department of Cyber Security and High-Tech Crime Prevention in case of processing personal data and transferring personal data abroad within a timeframe of 60 days from the processing date. While it is clearly a new obligation applicable to the Entities, the implementation of such obligation is anticipated to be time-consuming for both organizations and relevant state authorities.

6. Penalties for violation of personal data protection rules:

• Monetary fines range from VND 50 million to VND 100 million;
• Penalties under Criminal Code;
• Additional penalties: Suspend the processing of personal data up to 3 months, deprive the right to use written consent issued by the Personal Data Protection Committee to process sensitive personal data and cross-border transfer of data, forcible payment of money gained from committing acts of violation.

Multiple violations of personal data protection regulations by a personal data processor in Vietnam can result in a maximum penalty of 5% of total revenue of the data processor in addition to the aforementioned penalties.

II. Vietnam’s Commitments under the EVFTA and the CPTPP

Data protection and relevant issues play an important part in shaping digital economy. The PDPD is one of several legal instruments that have been developed in Vietnam so that it can be more aligned with international standards. The PDPD is the first consolidated set of regulations concerning personal data protection.

Vietnam’s commitments on data privacy under the CPTPP is mainly discussed under Chapter 14 (E-commerce). Article 14.11 provides that data must be allowed to be transferred cross-border except in cases where to prevent such would serve a legitimate public policy objective, provided that the measure “is not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade; and does not impose restrictions on transfers of information greater than are required to achieve the objective.”. Article 14.13 imposes the same conditions on data localization on each party to the agreement.

While Chapter 8 of the EVFTA covers issues of trade, services, and e-commerce, it does not contain any immediate commitments on issues of e-commerce, data protection, or data localization other than that it calls for the formation of a committee to develop unified principles and regulatory regimes as far as these are concerned.

III. Preliminary Guidance on Practical Handling

The PDPD provides several obligations of the party processing and disclosing personal data, thus it is critical for employers/ enterprises (the “Employer” or “Enterprise”) to consider and adopt all those obligations into its internal rules and contracts/ agreements with third parties.

1. Internal Labor Rules and Labor Contracts

It is required for the Employer to adapt all relevant obligations in relation to personal data over its employees, staff, directors, etc. as well as those in relation to the Employer’s customers, members and their staff into the Employer’s internal labor rules/ codes and collective labor agreement (if any). This is to ensure that its employees and staff shall comply with those personal data related obligations.

Otherwise, there is a very high risk that the Employer shall be fully responsible for the unpermitted processing and disclosing made by its employees without necessary tools to address such violations. In addition, it is advisable to state clearly in the labor contracts with the employees that they must comply with requirements on personal data protection promulgated by the Employer and the applicable law.

In addition, it is advisable to negotiate and agree with the employees in the relevant labor contracts about the possible data processing made by the Employer again such employees’ personal data for the purpose of employment such as tax information, CVs, health information, etc. This would very likely prevent the future claims from the Employer’s employees over unpermitted processing of employees’ personal data. We will advise in detail if desired subject to the final Decree.

2. Contract/ Agreement with Customers/ Members

It is advisable for the Enterprise and Employer to consider, renegotiate and update all current and future contracts/ agreements between the Enterprise and its customers/ members that the Enterprise and Employer is entitled to disclose/ process a specific list of personal data and the customers/ members agree to give consents for such disclosure/ processing. The Enterprise should, with our support if desired, build a clear list and procedure for collecting, storing, disclosing and otherwise processing personal data of customers/ members.

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

1. What are the three central/federal government entities that have conducted the largest procurements by volume in Vietnam in the last three years? Please, list the three procuring entities in the order of importance.
In my experience, the three largest procuring entites are Ministry of Health, Ministry of Industry and Trade, Ministry of Transport

Procuring Entity Sector – Ministry of Health
1.1 Please identify the most common sector purchased by the procuring entity
Goods

Procuring Entity Sector – Ministry of Industry and Trade
1.1 Please identify the most common sector purchased by the procuring entity
Goods

Procuring Entity Sector – Ministry Transport
1.1 Please identify the most common sector purchased by the procuring entity
Works

1.2 Is any of the three procuring entities that you have selected a State-Owned Enterprise or an Independent Authority?
Yes

1.3 Does any of these SOEs or Independent Authorities have a specific public procurement regulatory frame work compared to the other centralized/federal procuring entities?
Yes

2. Please provide a list of laws, regulations, and other binding materials (including guidelines and manuals) that regulate public procurement in Vietnam.
• Law No. 43/2013/QH13 on Bidding (Law on Bidding)
• Law No. 49/2014/QH13 on Public Investment
• Law No. 64/2020/QH14 on Investment in the form of Public – Private Partnership
• Law No. 03/2022/QH15 amending and supplementing some of articles of Law on Public Investment, Law on Investment in the form of public-private partnership, Law on Investment, Law on Housing, Law on Bidding, Law on Electricity, Law on Enterprises, Law on Consumption Tax Special and the Law on Execution of Civil Judgments.
• Decree No. 95/2020/ND-CP guiding the procurement under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
• Decree No. 09/2022 ND-CP amending and supplementing some articles of Decree No. 95/2020/ND-CP guiding the implementation of procurement under the CPTPP, the EVFTA and the UKVFTA
• Decree No. 63/2014/ND-CP detailing the implementation of several provisions of the Bidding Law on the selection of contractor
• Decree No. 25/2020/ND-CP detailing the implementation of several provisions of the Bidding Law on the selection of investors
• Decree No. 21/2022/TT-BKHDT detailing the preparation of bidding documents for non-consulting services for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Decree No. 20/2022/TT-BKHDT detailing the preparation of bidding documents for consulting services for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular 09/2022/TT-BYT detailing the sample invitation to bid for procurement of herbal ingredients and traditional medicines at public health facilities
• Circular 12/2022/TT-BKHDT detailing the preparation of bidding documents for the procurement of goods for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular No. 15/2022/TT-BKHDT detailing the preparation of bidding documents for construction and installation for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular 08/2022/TT-BKHDT detailing the provision and posting of information on bidding and contractor selection on the National Procurement Network System
• Circular No. 09/2022/TT-BGTVT guiding some contents on methods and criteria for evaluating bids for investor selection under the public-private partnership method and the form of a build-operate-transfer contract in the transport sector
• Circular No. 23/2021/TT-BGTVT guiding the formulation, approval and publication of the list of projects; methods and criteria for evaluating bids and bidding for selection of investors in specialized aviation service works at airports and aerodromes
• Circular 22/2021/TT-BGTVT detailing methods and criteria for evaluating bids to select investors to implement projects on dredging seaport waters and inland waterways in combination with product recovery
• Circular No. 06/2020/TT-BKHDT guiding the implementation of Decree No. 25/2020/ND-CP detailing the implementation of a number of articles of the Law on Bidding on investor selection
• Circular 15/2020/TT-BYT promulgating the List of drugs for bidding, the List of drugs for concentrated bidding, and the List of drugs eligible for price negotiation.
• Circular No. 14/2020/TT-BYT promulgating some contents in bidding for medical equipment at public medical facilities
• Circular 15/2019/TT-BYT regulating on drug bidding at public health facilities
• Circular No. 10/2015/TT-BKHDT detailing the contractor selection plan
• Circular No. 19/2015/TT-BKHDT detailing the preparation of appraisal report during the contractor selection period
• Circular No. 23/2015/TT-BKHDT detailing the preparation of evaluation report of bid dossier
• Circular No. 16/2016/TT-BKHDT guiding the preparation of pre-qualification dossier, bidding dossier for the investor carrying land use projects

3. Specific instruments applicable to a sector (goods, services or works):
• Decree No. 21/2022/TT-BKHDT detailing the preparation of bidding documents for non-consulting services for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Decree No. 20/2022/TT-BKHDT detailing the preparation of bidding documents for consulting services for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular 09/2022/TT-BYT detailing the sample invitation to bid for procurement of herbal ingredients and traditional medicines at public health facilities
• Circular 12/2022/TT-BKHDT detailing the preparation of bidding documents for the procurement of goods for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular No. 15/2022/TT-BKHDT detailing the preparation of bidding documents for construction and installation for bidding packages within the scope of the CPTPP, the EVFTA and the UKVFTA
• Circular No. 23/2021/TT-BGTVT guiding the formulation, approval and publication of the list of projects; methods and criteria for evaluating bids and bidding for selection of investors in specialized aviation service works at airports and aerodromes
• Circular 22/2021/TT-BGTVT regulating on methods and criteria for evaluating bids to select investors to implement projects on dredging seaport waters and inland waterways in combination with product recovery
• Circular 15/2020/TT-BYT promulgating the List of drugs for bidding, the List of drugs for concentrated bidding, and the List of drugs eligible for price negotiation.
• Circular No. 14/2020/TT-BYT promulgating a Circular stipulating a number of contents in bidding for medical equipment at public medical facilities
• Circular 15/2019/TT-BYT regulating on drug bidding at public health facilities

4. Does the regulatory framework establish value thresholds for determining procedural or regulatory aspects of the procurement process?
Yes (Articles 2.2 and 3.2, Law on Bidding)

5. Is there an operational central electronic public procurement (e-procurement) portal in Vietnam?
Yes (https://muasamcong.mpi.gov.vn)
6. Is the central e-procurement portal used by all the procuring entities?
Yes

7. Please complete the table below based on the features available in the central electronic public procurement portal
Yes, fully digitized Yes, but hard copy documents must be submitted No

Registering as a vendor x
Accessing notices on procurement opportunities x
Accessing bidding documents x
Asking a procuring entity for clarifications x
Submitting tenders x
Submitting bid security with electronic validation x
Bid opening x
Virtual workspace to manage tender procedures (including operative tools for members of the evaluation committee) x
Notification of decisions (clarifications, awards, contract signing, etc.) x
Accessing award decisions (including their rationale) x
Submitting performance guarantee with electronic validation x
Contract signing x
Accessing contracts x
Accessing contract amendments x
Submitting invoices to the procuring entity x
Module for framework agreement management x
E-catalogue of approved suppliers x
Green catalogue x
E-reverse auction module x
E-contract management and implementation module x
Receiving payments from the procuring entity x
Applying for vendor eco-certifications/eco-labels x
Access to specifications, standards, or criteria for eco-labels and environmentally preferable goods and services x

8. Are the features supported by the central e-procurement portal available for procurements of goods, works, and services?
Yes

9. For the following types of data, please select if there is a data portal that provides open access to such information in machine readable format:
Yes No
Data on tenders (including description, dates, category of spending, estimated value, contracting authority, and identification of bidders) x
Data on tenders (including description, dates, category of spending, estimated value, contracting authority, and identification of bidders) x
Data on suppliers x

10. Link to the webpage with data
https://muasamcong.mpi.gov.vn/web/guest/contractor-selection?render=index

11. Are there any main procuring entities for which data on contracts and tenders is not published on the open access data portal?
No.

12. Are gender-disaggregated data on firms that have participated in tenders collected by the central e-procurement portal?
No.

13. Does the regulatory framework require procuring entities to use standard bidding/tender documents when preparing a tender?
Yes, but with some exception.

14. Circumstances the use of model bidding/tender documents is not required.
Based on sector of procurement (Article 4, Circular No. 08/2022/TT-BKHDT)

15. Do these standard bidding documents contain sustainability clauses?
Yes, in all model documents

16. Does the regulatory framework define minimum content requirements for procurement plans?
Yes. (Article 35, Law on Bidding)

17. Do the minimum content requirements for procurement plans include a gender dimension?
No.

18. According to the regulatory framework, which of the following tools must be used when a procuring entity prepares to estimate the contract value of the new procurement opportunity?
Regulations are silent on this matter

19. Is there a legal mandate for the development and implementation of special programs to engage innovative and emerging suppliers?
No.

20. Does the regulatory framework establish open procurement as a default method for tendering a contract?
Yes, but with some exception.

21. Circumstances exceptions to the general rule of using open procurement are provided in the regulatory framework.
Based on the value of procurement and based on the entity conducting the procurement (Articles 21, 22, 23, 24, 26, 26, Law on Bidding)

22. Does the regulatory framework designate specific tendering procedures for innovation procurement?
No

23. Does the regulatory framework provide incentives for preparing bids with environmentally-friendly components?
No.

24. Does the regulatory framework impose any participation or award restrictions on foreign firms?
Yes, in some public tenders

25. If the restrictions apply only in some public tenders, please identify the parameter in which these restrictions are applicable:
Sector (Article 15, Law on Bidding).

26. Does the regulatory framework require foreign firms to have partnerships with domestic firms to be eligible to participate in a tender?
Yes, in some public tenders (Article 5.1(h), Law on Bidding)

27. Does the regulatory framework require foreign firms to own (fully or partially) subsidiaries in the domestic economy to be eligible to participate in a tender?
No. (Article 5.1, Law on Bidding)

28. Does the regulatory framework prohibit splitting contracts for the purpose of circumventing thresholds for open tendering?
Yes (Article 89.6(k), Law on Bidding)

29. According to the regulatory framework, which of the following documents need to be made publicly available?
Yes, for all contracts Yes, except for low value contracts No
Procurement plans x
Tender notices x
Tender documents (project specific) x
Award decisions Yes x
Contracts x
Contract amendments x
Subcontractors x

30. Please provide the legal basis for all the key materials listed in the table above:
Article 8, Law on Bidding; Article 9, Law on Investment in the form of Public – Private Partnership

31. Does the regulatory framework set a minimum timeframe between advertisement of a tender notice and a submission deadline?
Yes, for all procurement procedures (Article 12.1(b), Law on Bidding)

32. According to the regulatory framework, how should clarification requests from potential bidders be communicated?

Required to communicate answers to all bidders (Article 77.1, Law on Bidding; Article 51.4, Decree No. 35/2021/ND-CP; Article 14.2(c), Decree No. 63/2014/ND-CP)

33. In practice, how many days would usually pass between bid opening, and contract signing (i.e., the time in which all tenderers, participants and relevant parties are notified of the award decision and the awardee can start implementing the contract) for the following scenarios:
Days to complete a procurement of a works contract in an open procedure valued above the threshold for international procurement: 210
Days to complete the procurement of a services contract in a restricted procedure with limited competition, valued below the threshold for international procurement: 210
Days to complete the prequalification of supplier: 0
Days to complete an electronic auction: 45
Days to complete a Framework agreement with a competitive second stage: 0

34. Does the regulatory framework establish criteria for identifying abnormally low bids?
Yes, but only in some procurement procedures (Articles 117.6 and 117.9, Decree No. 63/2014/ND-CP)

35. According to the regulatory framework, which award criteria must be used in bid evaluations for high-value procurement?
Lowest price, Project life cycle cost, Total cost of ownership, Value for money, Most economically advantageous tender, Sustainability (Article 12, Decree 63; Articles 39 – 41, Law on Bidding)

36. Please indicate whether Lowest price must be used for some or all procurement sectors.
No, applicable to some.

37. Please indicate whether Project life cycle cost must be used for some or all procurement sectors.
No, applicable to some.

38. Please indicate whether Total cost of ownership must be used for some or all procurement sectors.
No, applicable to some.

39. Does the regulatory framework explicitly recommend the preference to use Most Economically Advantageous tender criteria over lowest price criteria?
Yes, but only in some procurement procedures
.
40. According to the regulatory framework, should the procuring entity provide a reference price in tender documents?
Yes, but only in some procurement procedures.

41. Does the regulatory framework include gender-specific provisions that promote gender equality in public procurement?
Yes (Article 14.3, Law on Bidding)

42. Does the regulatory framework outline a designated procedure for awarding contracts based on a framework agreement where contracts are awarded following a competitive two-stage process?
No, only one stage is competitive (Article 65, Law on Bidding)

43. Which of the small and medium-sized enterprise preferential treatment approaches are included in the regulatory framework?
None (Article 6 Decree No. 63/2014/ND-CP, Article 14.2.c Bidding Law)

44. Does the regulatory framework mandate communication of an award decision?
Yes, to all bidders (•Articles 42.3, 43.2, 11.8(d), 11.8(dd), Law on Bidding)

45. Is there a mandatory standstill period between the public notice of award and contract signing to allow unsuccessful bidders challenge the decision?
No.

46. Does the regulatory framework establish a timeframe within which a procuring entity must process a payment once an invoice is received?
Yes, for all contracts (Articles 94, 95, 96, 97, 98, Decree No. 63/2014/ND-CP)

47. Does the regulatory framework allow firms to claim interest on late payments (or any similar contractual penalty) if the government does not pay within the legally established timeframe?
Yes (Article 94.1, Decree No. 63/2014/ND-CP)

48. How often does the government pay late payment interest (or any similar contractual penalty) in the event that it fails to meet the payment deadline?
Government often pays late payment interest.

49. Does the regulatory framework designate a specialized and independent authority to receive procurement challenges filed by firms on decisions issued by the procuring entities?
Yes, specialized (Articles 91 and 92, Law on Bidding)

50. Does an aggrieved bidder have the right to appeal decisions on challenges made by the authority that receives procurement challenges?
Yes (Articles 92.1(c), 92.2(c), 92.3(c), 92.4(c), Law on Bidding)

51. Are there any legally binding time limits to resolve a procurement challenge?
Yes, for all types of challenges (Article 92, Law on Bidding)

52. Is there a legal recourse for an aggrieved bidder experiencing delays in either challenge or review processes?
Yes, for all types of challenges (Articles 91.1(b) and 91.2, Law on Bidding)

***

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

1. What new domestic law or regulation enacted in 2023 has been the most impactful on clients?
By the first half of 2023, the Vietnam National Assembly has passed several laws. These include the Law on Protection of Consumers’ Rights (LPCR), the Revised Law on Bidding, the Law on E-transactions, the Law on Prices, and the Cooperative Law. These legal instruments have had a substantial impact in strengthening Vietnam’s legal framework. Notably, two key instruments, the LPCR and the Law on Bidding, are anticipated to notably affect our clients. The LPCR, which was enacted on June 20th, 2023, and is set to be effective from July 1st, 2024, includes new protective measures for vulnerable consumers, and an expanded list of prohibited acts. Therefore, clients should pay more attention when entering into contracts with their customers. This might involve incorporating the new regulations of the LPCR into contracts or undertaking a comprehensive review and revision of the company’s model contracts accordingly. Meanwhile, the Revised Law on Bidding is expected to shed more light on international bidding and criteria for accessing bids and selecting winning bidders. Thanks to more bidding transparent procedures in the new Bidding Law, bidding in Vietnam is more predictable and attractive to foreign investors.

2. What Asia-Pacific issues, such as China’s economic recovery, supply chain tensions, monetary policy, productivity, geopolitical issues, etc., have been the most significant?
By the end of 2022, China’s Zero Covid was lifted, resulting in its economic recovery and thus having a significant impact on Vietnam’s economy. The primary impact is reestablishment of the supply chain between Vietnam’s retailers and those in China. This reconnection includes the import of input materials from China, such as technology linkages, textile linkages. Furthermore, Vietnamese tourism will recover thanks to the Chinese tourist flow into Vietnam. For your information, Chinese tourists accounted for one third of international travelers to Vietnam before COVID-19 pandemic took place. China’s new policy may also impact Vietnam’s regulatory framework, resulting in a shift towards more stringent regulations concerning e-transactions and cross-border trade.

3. What international law or regulatory change has had the most impact?
In recent time, Vietnam has signed numerous new generation Free Trade Agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam Free Trade Agreement (EVFTA), etc. These new-generation FTAs contain Vietnam’s unprecedented commitments. They have encouraged and accelerated the institutional reforms in order to improve the legal environment in compliance with Vietnam’s commitments. As a result, they help Vietnam become a competitive economy, attract foreign investments, technology and other important resources for development. With regards to investment-related dispute settlement mechanism, under the EVFTA, an investor is allowed to bring such dispute to the Investment Court for settlement (Investor-state dispute settlement mechanism- ISDS). The final arbitration award is binding and enforceable without the local courts’ review of its validity. This is an advantage for European investors as the fact shows that the percentage of applications for enforcement of foreign arbitral awards being rejected by the Vietnamese courts is notably high for various reasons. Under the CPTPP, for the first time investors of a party may sue the Government of the other party for its violation of investment-related commitments when the investors make investment in that party. It covers new provisions compared with existing agreements such as transparency in arbitral proceedings, disclosure of filings and arbitral awards, and participation of interested non-disputing parties to make amicus curiae submissions to a tribunal. Arbitral awards are final, binding and fully enforceable in CPTPP countries.
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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.