January 13, 2017January 16, 2017 by Dr. Oliver Massmann

Vietnam – Real Equitization Progress – Opening State Owned Enterprises up to Foreign Investors except for 11 Sectors

Decision No 58/2016/QD-TTg issued by the Government establishes 11 sectors in which the state will retain full ownership (103 SOEs):

Mapping measurement for military and national security purpose;
Industrial explosive material production and trading;
Transmission, system regulation and management of the national electricity distribution grids; multi-purpose hydropower, nuclear power of particularly importance for economy – society attached to defense and security,
Management of infrastructure system of national railway, urban rail invested by the State; running transportation of national rail, urban rail invested by the State;
Air traffic services, notification services of aeronautical information; search and rescue services;
Maritime security (excluding dredging, maintaining public navigable channels);
Public post;
Lottery business;
Publishing (not including printing and publishing publications sectors);
Printing, minting money, producing gold bars and golden souvenirs; and
Credit policy for economic and social development, securing banking system and credit institutions.

It also lists 137 SOEs in which state will retain ownership from below 50%, 50%-65% and over 65%. These SOEs will be equitized during 2016-2020 period. Among these SOEs include big names such as VNPT, Mobifone, Agribank, Electricity Corporations, Post Corporation of Vietnam, Oil & Gas Corporation of Vietnam, etc.

Sectors in which the state will retain ownership of over 65% (there are 4 companies in total) include:

Operation management of airports; operating flight area services;
Navigation information services, surveillance, aviation meteorological services;
Mineral mining of large scale according to current regulations on classification of mine scale;
Exploration, development and exploitation of oil and gas mines; and
Finance and Banking (excluding insurance, securities and fund management companies, finance companies and financial leasing companies).

Sectors in which the state will retain ownership of 50%-65% (there are 27 companies in total) include:

Production of basic chemicals;
Air carriage;
Enterprises whose market share is 30% or higher, having a role to ensure major balance of the economy and stabilize the market, operating in the following areas:
a) Rice wholesale;
b) Focal petroleum imports.
Production of cigarettes;
Provision of telecommunications services with network infrastructure;
Growing and processing rubber, coffee in strategic areas, mountainous and remote area linked to national defense and security;
Enterprises ensuring basic needs for the development of production and improving material life, spirit of ethnic minorities in mountainous, remote and isolated area;
Electricity retail business (consistent with the formation and development of the electricity market levels).

The publication of companies with state ownership will encourage the equitization process. Investors will find it much more easier to know which enterprises still allow for foreign investment. Yet, equitization of SOEs is raising many concerns due to the leaders’ fear of losing their employment to private investors.

The Government should improve information disclosure and lift the cap on the number of strategic shareholders in SOEs so that both the state and private investors find interest in the equitization process.

Clarified regulation on Foreign Ownership Limit

With an attempt to attract more foreign investment in the securities market and expedite the current equitization process, on 26 June 2015, the Government issued Decree No. 60/2015/ND-CP to relax foreign ownership limit in certain sectors.

However, Decree 60 has had a limited impact on the stock market. The complicated and inconsistent procedures restrain private initiatives and onerous requirement of hiring consultant and lawyers constitutes a significant drag for investors.

To encourage foreign capital inflow to the stock market especially for newly privatized SOEs, clear guidelines creating a transparent environment should be established. Indeed, a sustainable investment environment would be supported by a clear statement that the Law on Investment does not apply for public companies but the Law on Securities.

Moreover, enterprises not operating in sectors where there is explicit limit to foreign ownership in Vietnam laws or international agreements to which Vietnam is a party should be eligible to 100% foreign ownership.

In addition, all foreign-invested public companies or public investment funds must be treated the same as local entities, except for specific cases being explicitly stated in the Vietnamese legislation or international agreement to which Vietnam is a party.

Companies operating in the banking sector subject to equitization are quite limited. Foreign ownership should be raised, for instance, to 35% for banks in which the State is a majority shareholders, 49% for private banks and 100% for banks bought at 0VND by the state.

Transparent privatization schedule and enforcement

The privatization schedule as well as bid offers of each SOEs concerned should be publicly published. In order to ensure the equitization efficiency, the State should oblige privatized companies to strictly follow the schedule by imposing fine of 10% of the company’s net profit. Besides, by holding members of the board personally accountable for the company’s violation, the state would press the newly privatized company to meet with the Government’s schemes.

***

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

January 12, 2017 by Dr. Oliver Massmann

Rechtsanwalt in Vietnam Oliver Massmann PHARMAZEUTISCHER SEKTOR – AUSBLICK AUF DAS EU – VIETNAM FREIHANDELSABKOMMEN (EVFTA)

Vietnam hat große Fortschritte in der Qualität des pharmazeutischen und medizinischen Sektors gemacht. Durch Erhöhung des Etats im Gesundheitsbereich auf fünf bis sechs Prozent des Bruttoinlandsprodukts zählt Vietnam zu den Staaten mit den besten Ergebnissen in der ASEAN. Die Verabschiedung der Verordnung 19 / NQ-CP / 2015 über die nationale Wettbewerbsfähigkeit, der Verordnung 35 / NQ-CP / 2016 zur Unterstützung der Unternehmensentwicklung sowie des neuen Arzneimittelgesetzes vom 4. Juni 2016 mit Wirkung zum 1. Januar 2017 verbessert die Gesundheitswirtschaft im Hinblick auf den verbesserten Zugangs zu medizinischer Versorgung. Vereinbarungen wie das Freihandelsabkommen EU-Vietnam (EVFTA), die ASEAN-Wirtschaftsgemeinschaft (AEC) oder die transeuropäische Partnerschaft (TPP), in denen Vietnam Mitglied ist, werden die positiven Fortschritte in diesem Sektor weiter vorantreiben. Darüber hinaus werden Leitlinien für die Umsetzung des Arzneimittelgesetzes in den folgenden Monaten abgeschlossen sein, um die verbleibenden Fragen in sowohl örtlichen als auch ausländischen Industrien zu lösen.

Sicherstellung eines schnellen und nachhaltigen Zugangs zu moderner Medizin

Die Erwartungen, die sich aus den Gesetzesvorhaben ergeben, betreffen den nachhaltigen Zugang für vietnamesische Patienten zu innovativen Medizinprodukten und das öffentliche Beschaffungswesen für hochwertige Arzneimittel. Die Gründung von „Unternehmen mit ausländischen Investoren“ (im Folgenden: FIE, engl. Foreign Investment Enterprises) in Vietnam muss unterstützt werden, um die örtliche Industrie zu einer der zentralen pharmazeutischen Industrien der ASEAN zu entwickeln.

Das neue Arzneimittelrecht begünstigt die Gründung von FIE im pharmazeutischen Sektor, da es notwendig ist, Zugang zu den innovativsten Arzneimitteln und Techniken zu erlangen. Dennoch bleiben einige rechtliche Grauzonen, um den gleichen Zugang zum Pharmamarkt für ausländische und lokale Unternehmen zu gewährleisten. Tatsächlich wurden der ausländischen Repräsentanz – der am häufigsten gewählten Form ausländischer Pharmaunternehmen vor Ort – nicht die gleichen Rechte eingeräumt, wie anderen Unternehmen.

Zu verhindern, dass Repräsentanzen Verträge abschließen, Medikamente und Impfstoffen importieren, Medikamente im Inland veräußern, sowie jegliche gewinnbringende Tätigkeiten in Vietnam durchführen, erschwert unweigerlich Finanzinvestitionen, die Entwicklung lokaler Einrichtungen und den Technologietransfer. Um die Zahl der FIE zu erhöhen, sollten klare und praktisch anwendbare Leitlinien eingeführt werden.

Erleichterung der bürokratischen Verfahren

Die vietnamesische Regierung befreite auch einige pharmazeutische Produkte, wie Medikamente oder medizinische Geräte, von der Voraussetzung lokaler klinischer Studien. Zuvor mussten 2,5 bis 5-jährige lokale klinische Studien abgeschlossen werden, um eine Marktzulassung zu erhalten, weshalb die teilweise Lockerung dieser Voraussetzung ein wichtiger Schritt zu einem schnelleren Zugang zu modernen Arzneimitteln ist. Jedoch geht aus dem Gesetzestext nicht klar hervor, ob biologische Präparate und Impfstoffe ebenfalls von dieser Freistellung profitieren, insbesondere wenn eine solche Freistellung den Regeln des EVFTA widerspricht. Vietnam sollte einhalten, was in internationalen Abkommen zur Förderung des Vertrauens von Anlegern und der Unternehmensgründern versprochen wurde.

Weitere Hindernisse für die Niederlassung von Pharmaunternehmen sind die Lizenzvorgaben und die Visaverfahren, die alle fünf Jahre stattfinden. Ein kompliziertes Verfahren, da die Erneuerung zwischen 18 und 24 Monaten dauern kann, das aber nur 12 Monate vor dem Ende des bestehenden Visums begonnen werden kann.

In der Ausschreibung 09/2016 / TT-BYT des Gesundheitsministeriums vom 5. Mai 2016, mit Wirksamkeit seit dem 1. Juli 2016, sind Arzneimittel gelistet, die im Rahmen eines Ausschreibungsverfahrens beschafft werden müssen. Soweit hier eine klare Umsetzung erfolgen und das Verbot des Einsatzes ausländischer Produkte in der öffentlichen Beschaffung von Arzneimitteln aufgehoben werden würde, trüge dies dazu bei das Ziel eines universellen Zugangs zu medizinischer Versorgung und hochwertiger Medizin für jeden vietnamesischen Patienten zu erreichen.

Lösung von Problemen des Patentrechts

Gefälschte Medikamente sind ein ernstes Problem in Vietnam, dem man sich dringend annehmen muss. Die vietnamesische Gesetzgebung ist unzureichend, sofern es um die Regulierung des Patentrechts und des Datenschutzes geht. In internationalen Abkommen wurden viele Mechanismen geschaffen, um ein sichereres Umfeld für Investitionen zu gewährleisten, wie die Verabschiedung eines Patentrechtschutzes, von Vollstreckungsrecht oder von Datenschutzrichtlinien (im Folgenden RDP, engl. Regulatory Data Protection). Daher sollte Vietnam RDP einführen, sowie Geldbußen und Sanktionen bei Rechtsverstößen einrichten.

In Vietnam trägt derjenige die Beweislast, der einen Anspruch aus seinem geistigen Eigentum, oder eine Verletzung seines Datenschutzes geltend machen will. Darüber hinaus ist bei der Einreichung einer Patentanmeldung die Geheimhaltung nicht automatisch gewährleistet und muss explizit in das Arzneimittelpatentanmeldungsformular beantragt werden. Die Arzneimittelbehörde von Vietnam nimmt die Anträge entgegen und ist oft zurückhaltend, sich gegenüber den FIE zu verpflichten die Geheimhaltung zu gewähren. Diese Problematik stellt ein Hindernis für Investitionen in der pharmazeutischen Forschung und Entwicklung sowohl für ausländische und lokale Investoren dar.

Förderung der Entwicklung einer Krankenversicherung

Die Entwicklung hin zu einer Krankenversicherung wurde erst kürzlich aufgrund von Initiativen der Regierung begonnen. Dies zeigt die Bedeutung des Einsatzes öffentlicher Mittel für die Entwicklung des Gesundheitsbereiches, auch wenn deren Bedeutung bei den Gesundheitsfonds abnimmt. Tatsächlich übernehmen private Fonds die Führung in Investitionen im Gesundheitssektor, da diese sich gemeinsam mit dem Markt stetig ausbreiten. Die von der vietnamesischen Regierung unterzeichneten Abkommen werden mehr ausländische Privatanleger anziehen und private Fonds, die in der Branche dominieren.

Dennoch stützt sich das Krankenversicherungssystem in Vietnam vor allem auf Beitragszahlungen der Bevölkerung, und da ein Teil der Bevölkerung alternative und traditionelle Medizin gegenüber der westlichen Medizin bevorzugt, spricht dies gegen eine umfassende Krankenversicherung aller vietnamesischen Bürger.

Ausblick auf das EVFTA

Das EVFTA, das am 5. Dezember 2015 unterzeichnet und voraussichtlich bis Januar 2018 in Kraft treten wird, eröffnet neue Bedingungen und Möglichkeiten für sowohl den europäischen als auch den vietnamesischen Markt. Es beinhaltet spezifische Regelungen zu Im- und Export von Arzneimitteln. Zum Beispiel wird Vietnam gemäß Artikel 14.2 Kapitel 2 des Abkommens verpflichtet Rechtsinstrumente zu schaffen und umzusetzen, um die Gründung von FIE in Vietnam zu ermöglichen. Darüber hinaus verpflichtet dieser Artikel Vietnam, den FIE die Möglichkeit zu geben Arzneimittel, die direkt von ihnen importiert werden, zu veräußern auf direktem Weg, über Händler oder Großhändler, auch ohne den Nachweis eines Zertifikats für Gute Lagerungspraxis (GSP).

Soweit sich die vietnamesischen Gesetzgebung verantwortlich zeigen wird für die Anforderungen von Zulassung und die Zulassungsverfahren, würde dies einen nachweisbaren Einfluss des EVFTA begründen, da so die Gründung von FIE und deren erweiterter Tätigkeitsbereich gefördert würde. Daher steht zu erwarten, dass zugrundeliegende vietnamesischen Regelungen angepasst werden, um den EVFTA-Anforderungen gerecht zu werden und so in absehbarer Zeit einen liberalisierten Pharmamarkt zu schaffen.

Die wichtigsten Punkte:

– Beschränkungen der Rechte von Repräsentanzen und das komplexe Registrierungsverfahren dürften die Neugründungen von pharmazeutischen FIE einschränken.

– Regelungen des Patentrechts zum Schutz der Antragsteller und ihre Patente würden die Forschung und Entwicklung fördern und die Schaffung innovativer pharmazeutischer Produkte in Vietnam beschleunigen. Außerdem muss das Problem nach gefälschten Medikamenten dringend bekämpft werden.

– Die Entwicklung der Krankenversicherung ist begrenzt durch dessen Finanzierungssystem und durch das Misstrauen, das manche Menschen in die westliche Medizin haben. Die Einführung eines Rücktrittsrechts bei Medikamenten und medizinischen Dienstleistungen würde dazu beitragen, diese zu fördern.

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

Vielen Dank!

January 10, 2017 by Dr. Oliver Massmann

Letter to Mr. Donald Trump – Trans-Pacific Partnership – Don’t drop your Slice of the Pie

From Oliver Massmann – General Director of Duane Morris Vietnam LLC

Dear Mr. Trump,

With respect to your recent statement that you will withdraw from the Trans-Pacific Partnership (TPP) right on day one of your office, we kindly request you to reconsider the possibility of your ratification of the TPP.

Dropping the TPP means that the U.S will lose access to government procurement of other TPP countries which amounts to USD1.492 trillion. The high standard of the government procurement chapter in the TPP can nowhere be found in existing international agreements. Moreover, it could take the U.S another decade to reach a bilateral agreement with government procurement standard as high as in the TPP. It is of utmost importance for the U.S to save time, jobs, and of course, billions of dollars by ratifying the TPP instead of negotiating a new one.

We believe the following facts will help with your decision and clearly show how TPP would help you to make America great again. What may interest you is the extremely high number of government procurement in the TPP country members from which America could benefit.

As you may already know, the population of the TPP countries exceeds 494 million people as of July 2015. The TPP countries account for 44.8 percent of U.S. total exports and 37.6 percent of U.S. general imports in 2014. By cutting over 18,000 taxes in regards to TPP, there would be a great benefit for American im- and exporters by enabling them to enter new markets.

As the U.S. international trade commission estimates, the U.S. exports of goods and services to the world would expand by USD27.2 billion by 2032 due to the TPP, while U.S. imports would expand by USD48.9 billion.

In the following table the data of each TPP country is listed to show you the procurement market American investors may get access:

	GDP (USD)	Government procurement’s percentage of GDP (%)	Total value of Government procurement (USD)
Australia	1.56 trillion	12.44	194,064,000,000
Brunei	11.47 billion	4.1	470,270,000
Canada	1.827 trillion	13.34	243,721,800,000
Chile	179.9 billion	2.9	5,217,100,000
Malaysia	305.3 billion	25	76,325,000,000
Mexico	1.261 trillion	5.16	65,067,600,000
New Zealand	185.8 billion	14.56	27,052,480,000
Peru	192.6 billion	17.6	33,897,600,000
Singapore	274.1 billion	9.74	26,697,340,000
Vietnam	171.4 billion	12.84	21,000,000,000 -22,000,000,000
Japan (ratified TPP)	4.92 trillion	16.22	798,024,000,000

Note: Data taken during the period of 2006-2017

As shown above government procurement of the TPP states is $1.492 trillion in total!

And those are old numbers. Most of the countries are states with strong economic growth. The sum may be much higher now.

How could America not want to get a slice of this fat pie?

The great advance of the TPP will be that even the three countries Vietnam, Malaysia and Brunei which have not agreed to coverage of their government procurement ever before and are currently not covered by an existing U.S. Free Trade Agreement or the Government Procurement Agreement of the WTO (GPA), have undertaken to do so. This is a key export opportunity for U.S. goods producers and services companies. Currently Chinese companies profit the most. 90% of power, mining, manufacturing, ferrous and chemical projects of state-owned companies in Vietnam are awarded to Chinese contractors. China State Construction Engineering Corp. (CSCEC) keeps winning important contracts although it has a poor track record and has even been blacklisted by the World Bank due to bribery charges. With TPP that market would be open to US companies which probably would be welcomed.

Some Asian-Pacific and other countries have formal policies in place disadvantaging foreign tenderers. TPP will make it possible for the first time that an American cooperation could sue for example the Republic of Vietnam or Malaysia. The procedural and legal changes regarding government procurement will enable U.S. exporters to reach markets that were closed before and compete more effectively.

In addition Canada has agreed to replace the commitments in NAFTA and update them to the level of TPP. The new level of GPA is based upon the WTO 2014 guidance and provides stronger commitments than the NAFTA.

America cannot wait until bilateral agreements might be settled!

12 years have already passed since the first negotiations on TPP started. As international agreements like NAFTA (4 years), COMESA (16 years) or SAFTA (9 year) require a lot of time to be settled, bilateral agreements will do so as well. And there is no guarantee of success. In fact it is rather unlikely. Countries like Malaysia, Brunei and Vietnam took huge steps by agreeing to a regulation of government procurement. How long a bilateral agreement would take, may be shown by the European Union – Vietnam Free Trade Agreement (EVFTA) which took 4 years before it was concluded. However, the EVFTA does not reach the standard of the TPP regarding the Chapter on Government Procurement. The creation of a fair, transparent, predictable and non-discriminatory market should not be postponed. The level of GPA might be as high as never before. It is extremely unlikely that a better agreement could be negotiated but more likely that the U.S. will be replaced by China or Russia. Japan’s Prime Minister Shinzō Abe already stated that China would be a possible replacement. But not only Japan would turn towards China. Negotiations of Australia, New Zealand, Vietnam, Malaysia, Singapore, Brunei regarding an FTA with China already began.

Skipping this agreement would cost America billions of money and would cut off American jobs. Negotiating bilateral agreements would cost America many years, billions of Dollars and it is highly unlikely that it would reach a GPA standard that would be even close to TPP.

Is America’s interest able to wait?

The answer is NO!

Sincerely,

Oliver Massmann

*Should you require any supporting evidence for the statements above, we will provide them immediately.

January 9, 2017January 9, 2017 by Dr. Oliver Massmann

PHARMACEUTICAL SECTOR IN VIETNAM – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEMENT (EVFTA)

Vietnam has made great progress in the quality of the pharmaceutical and medical sector. By dedicating 5 – 6 % of Gross Domestic Product to healthcare expenses, Vietnam is among countries with the best outcomes in ASEAN. The adoption of Resolution 19/NQ-CP/2015 on national competitiveness, Resolution 35/NQ-CP/2016 on supporting the development of enterprises and the new Pharmaceutical Law dated June 4, 2016 effective from January 1^st 2017, improves the healthcare industry in terms of improved access to medical care. Agreements such as the EU-Vietnam Free Trade Agreement (EVFTA), the ASEAN Economic Community (AEC) or the Trans-Pacific Partnership (TPP) to which Vietnam is a member, will further enhance positive progress in the sector. Besides, guiding documents to implement the Pharmaceutical Law will be completed in the following months to resolve remaining issues in both local and foreign industries.

Ensuring a fast and sustainable access to innovative medicine

The expectations arising from the new legislation concern the sustainable access for Vietnamese patients to innovative medical products and the Government procurement ensuring high-quality medicines. The establishment of Foreign Invested Enterprises (FIEs) in Vietnam must be supported in order to guide the local industry into being a core pharmaceutical industry in ASEAN.

The new pharmaceutical law favors the establishment of FIEs in the pharmaceutical sector since it is necessary for accessing the most innovative drugs and techniques. Nevertheless, some grey areas remain as to ensure same access to the pharma market for foreign companies and local ones. Indeed, representative offices, the most common form of presence for pharmaceutical companies, are not given the same rights as other entities.

Depriving representative offices of their rights to contract, to import pharmaceutical drugs and vaccines and to sell them domestically, and even to conduct any profit-generating activities in Vietnam, inevitably impedes financial investment, development of local facilities and technology transfer. In order to greatly increase the number of FIES, clear and practical guidelines should be implemented.

Facilitating administrative procedures

The Vietnamese Government also exempted Local Clinical Trial requirements for some pharmaceutical products such as drugs or medical equipment. Local Clinical Trials required a 2.5 to 5 year-time to obtain a market authorization and their suppression in part is a great step to a faster access to innovative medicines. However, the text is unclear as to whether biologics and vaccines are entitled with this exemption especially when such an exemption would be contradictory to the EVFTA. Vietnam should respect what it has committed in international agreements to promote investors’ trust and companies’ establishment.

Another obstacle for Pharma companies’ establishment deals with license and visas registration taking place every five years; a heavy procedure when the renewal process can take from 18 to 24 months and must be started only 12 months prior to the expiry of the existing visa.

Circular 09/2016/TT-BYT issued by the Ministry of Health on May 5 2016 and effective from July 1 2016, establishes lists of drugs which must be procured through tender process. If clearly implemented and added to exclusion of the ban on foreign products in Government Procurement for originator medicines, this would help reach the goal of a universal access to medical care and quality medicines for all Vietnamese patients.

Solving Intellectual Property rights issues

The counterfeit medicine is a grave issue that needs to be embraced urgently. Vietnamese legislation is insufficient in terms of regulations on intellectual property and data protection rights. International standards have set up many mechanisms to preserve a safer environment for investment such as adoption of patent protection, an enforcement system or Regulatory Data Protection (RDP). Therefore, Vietnam should set up a mechanism of automatic granting of RDP as well as real raise fines and sanctions in case of infringements.

In Vietnam, rights holders (intellectual property, data protection) bear the burden of proof when claiming an infringement. Besides when submitting an application for patent protection, secrecy is not automatically ensured and must be explicitly added in the drug registration form. The Drug Administration of Vietnam receives the applications and is often quite reluctant to grant data protection for FIEs. Those issues constitute a drag for investment in the pharmaceutical Research and Development sector for both foreign and domestic investors.

Encouraging Health insurance development

Development of health insurance is quite new and launched thanks to Government’s initiatives. This explains the importance of public funds in the development of the healthcare sector and yet they represent a decreasing part in the funds. Indeed, private funds are taking the lead in investment in health sector as they are expanding along with the market. The agreements signed by the Vietnamese Government will attract more foreign private investors and accentuate private funds dominating facet over the industry.

Nevertheless health insurance system in Vietnam mostly relies on contribution of the people and, since a part of the population entrusts natural and traditional medicine over western medicine, this goes against a universal health cover for all Vietnamese people.

Outlook on the EVFTA

The EVFTA signed on December 5, 2015 and expected to entry into force by January 2018, is establishing new requirements and opportunities for both the European and Vietnamese market. It includes a specific part on the import and export of pharmaceutical products. For instance Article 14.2 Chapter 2 of the agreement requires Vietnam to create and implement legal instruments to allow FIEs’ establishment in Vietnam. In addition, this Article also requires Vietnam to allow FIEs to sell pharmaceuticals legally imported by them directly or through distributors or wholesalers who are not required to have a Good Storage Practice (GSP) certificate or directly.

If the Vietnamese legislation is responsible for certification requirements and process, the EVFTA creates a real influence as it encourages establishment of FIEs and their extended scope of activities. Therefore we can expect that Vietnamese Regulations will be adjusted to meet with EVFTA requirements thus creating a more liberalized pharmaceutical market in a foreseeable future.

Most important issues

– Restrictions on the rights of representative offices together with the complex registration process are likely to restrain the inflow of pharmaceutical FIEs.

– Regulations on Intellectual Property Rights protecting applicants and their patents would encourage the Research and Development sector and accelerate the creation of innovative pharmaceutical products in Vietnam. Besides, the question of counterfeit medicine must be solved urgently.

– Development of health insurance is limited by its financing system and by the mistrust some people put in the western medicine. Implementing reimbursement of some medicines and medical acts would help encourage it.

***

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

Thank you very much!

January 4, 2017 by Dr. Oliver Massmann

Vietnam – Automotive Industry – What Must Be Done Urgently:

“RECOMMENDATIONS TOWARDS DEVELOPMENT OF AUTOMOTIVE SUPPLY CHAIN AND INTEGRATION OF LOCAL COMPANIES BY FDI COMPANIES IN VIETNAM – OUTLOOK ON THE EU VIETNAM FREE TRADE AGREEMENT (EVFTA)

The Vietnamese vehicle market is not one of the biggest in ASEAN. Up to now, the domestic demands were provided with local suppliers, but due to the AFTA tariff elimination in 2018 and the import of vehicle manufactured in ASEAN (Thailand, Indonesia) in a foreseeable future, the development of local industry could be slowed down.

The development of the automotive supply chain in Vietnam implies the expansion of the domestic market and more precisely the increase of the domestic demands and suppliers. The supply chain involves multi-layered suppliers, as thousands of parts are needed to manufacture vehicles.

Since the local industry is composed of smaller businesses, fewer economies of scale are made and it appears more difficult for both local and foreign suppliers to meet the quality/cost/delivery (QCD) requirements. In addition, other requirements such as Research and Development (R&D) are necessary to keep up with the market, the purchasers’ needs and to maintain a continuous growth of sales.

Nevertheless, not all requirements are expected from suppliers, as it depends on their position in the supply chain. Currently, Vietnamese suppliers have to meet QCD requirements but, as they are not always fulfilled, local production still relies on imported parts. The development of local production may not prosper without resolving first the issue of insufficient capability of local suppliers.

Thus, regarding the changes Vietnam is about to face, market policies such as registration tax should be upheld and policies on local production should be clarified. A task force devoted to policies improvement would hasten the process.

Moreover, knowledge of foreign suppliers’ knowledges could benefit local ones and should be promoted through technology assistance and cooperation organization. By sharing foreign expertise with local suppliers, we obtain a win-win solution: foreign suppliers or original equipment manufacturers win in terms of competitiveness and local suppliers win in terms of knowledge.

Outlook on the EVFTA

The EVFTA signed on December 2nd 2015 opens new opportunities for both Vietnamese and European markets. As European companies are among leaders in the automotive industry, Vietnam offers a unique opportunity to extend to a promising market in South East Asia. Indeed, domestic demands are growing and expected to rise from 300,000 to 1,5 million cars sold by 2025. This can be explained by Vietnam’s young population – half is under thirty years old – and constant need of new industrial products. Human resource is one of Vietnam’s great advantages due to its young population and fast-growing middle class.

The most important issues

– Local suppliers are not ready yet to take over the automotive supply chain and still need foreign suppliers to teach them the know-how and to meet with the standard requirements.

– The policies are not conceived to promote local production and should be reviewed to open the market even more before the AFTA enters into force (2018).

– Competition within the ASEAN will shake the local production and it is important for Vietnam to oblige domestic suppliers to meet with strict requirements as to prevent foreign and local demands from turning to foreign suppliers.

***

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

Thank you!”

January 3, 2017 by Dr. Oliver Massmann

Vietnam Guidance on Import of Used Goods – Relaxation of Import Duties for Finance Leasing Companies

DIFFICULTIES AS TO THE IMPORT OF USED GOODS AND RELAXATION ON IMPORT DUTY FOR FINANCE LEASING COMPANIES IN VIETNAM –

OUTLOOK ON THE EUROPEAN UNION – VIETNAM FREE TRADE AGREEMENT (EVFTA)

Circular No. 23/2015/TT-BKHCN on promulgating the import of used machinery, equipment and manufacture lines, issued by the Minister of Science and Technology on November 13 2015 (Circular 23) sets up conditions on the import of Used Equipment. As the conditions of machinery under 10 years of age and in compliance with standards of safety, energy saving and environment protection, were too strict for foreign projects, a list of exemptions approved by competent authorities has been established. Circular 23 needs to be clarified concerning the criteria – of exemption, of compliance with the National Technical Regulations and National Standards – which Used Equipment imported in Vietnam must satisfy.

Three recommendations can be articulated: if the Used Equipment is imported for new or expanded investment projects, the Circular should define precisely the competent authority to issue the certification list and guide the import procedure. Moreover, the Ministry of Science and Technology should promulgate more detailed provisions on safety and energy saving and environment protection. Finally, officials in charge of examination of standards should be dispatched prior to the shipment.

Part 1 of Official Letter 504/TXNK-CST issued by the Import-Export Department of Customs General Department on March 22 2016 (Letter 504) stated that Decree 39/2014/ND-CP of the Government dated 7 may 2014 was not applicable to goods imported by a finance leasing company to an export processing enterprise (EPE). This means that a declaration and the payment of the import duties in compliance with the laws are needed. Nevertheless, Letter 504 points out that the procedure is different from the one to create fixed assets for the EPE. The EPE bears the duty to declare and pay for the import in order to use the finance leasing assets, even though it is already included in the leasing contract and that it should be exempted of it.

An exemption of import duty for the leased equipment imported by an EPE is necessary, as it was stated in the previous Letter 16587/BTC-CTCHQ of the General Customs Department on November 29 2013. Official Letter 4463/BTC-TCHQ issued on April 4 2016 recognizes the effectiveness of Letter 16587 in part, in spite of Letter 504, but its coverage is limited.

In case of agreements to purchase the machinery at the end of the finance leasing, the equipment becomes a fixed asset of the lessee. It is easier to raise the import duty on goods imported to create fixed assets to the EPE. If the procedure to import leasing goods is carried by an EPE, it should be exempted through a Letter amending Letter 504.

The taxes on assets imported for leasing should be equal to those paid when carried by the EPE itself. The applicable Decree 39/2014/ND-CP does not have specific regulations for finance leasing assets contrary to the previous Decree 16/2001/ND-CP. It should be reintroduced so a more practical regulation on import of goods under finance leasing contract prevails.

Another issue deals with the payment of the taxes related to Incoterms’ conditions on import of goods into Vietnam’s territory. Under Circular 103/2014/TT-BTC guiding the tax liability of foreign entity doing business in Vietnam, a Foreign Contractor Tax (FCT) including Value Added Tax (VAT) on input and output and Corporate Income Tax (CIT) must be applied. Pursuant to the circular, if a foreign entity sells goods under Incoterms rules, it is responsible for any risk relating to goods delivery in Vietnam. Nonetheless, the transportation and delivery of goods is mostly carried out by transportation agencies. The foreign entities do not benefit from transportation but must pay the CIT from the goods and services receivable by the buyer. Moreover, in case of import with a delivery duty paid (DDP) condition, the buyer will pay the VAT output when it should be at the expense of the seller. There may be some difficulties for the buyer to be refunded.

The calculation of the FCT should be reviewed to ensure the true purpose of the FCT : the responsibility of the seller at any risk until the goods are delivered. Besides, regulations for the deduction of VAT import for the seller under DDP conditions should be considered.

One of the concern deals with the restriction on import of used equipment. The provisions of Circular 23 are explicit: machinery over 10 years cannot be imported, unless it constitutes an exemption listed by a competent authority. Through this regulation, importers must provide certificate of the age and manufacturing standard of Used Equipment, facing bigger costs and complications since pieces of Used Equipment can be of different ages.

Besides, this regulation prevents enterprises from repairing their machinery and is not realistic regarding external factors such as: quality of the equipment, time of use, maintenance, repairing conditions etc. A newer but lower quality equipment would be preferred leading to bigger costs of repair, energy and finally to a higher impact on the environment.

Two cases of exemption are stipulated in Circular 23 to import Used Machinery over 10 years of age. The first one is the equipment belonging to an investment project with a decision of the competent authority on investment policies plus an investment registration certificate issued in accordance with the Law on Investment. The second one occurs when an enterprise has to import a piece of machinery older than 10 years, to sustain its manufacturing or business operation. It needs then the cooperation of the Ministry of Science and Technology to consider the firm’s proposal and document. More details to implement these procedures should be given.

Outlook on the EVFTA

The FTA is expected to enter into force on January 2018. This agreement will eliminate almost all tariff lines (99%) however, a few steps should be planned in advance for its implementation. For the first six years, 65% of the import duties on EU exports will be liberalized, the remaining duties being eliminated over the next ten years. For a few sensitive products, EU duties will be eliminated over a seven-year period.

These provisions prove the Vietnam’s tendency to open to new markets with deeper integration. Thus Vietnam will attract more quality investment from the EU and this will probably impact its legislation and regulations, such as the regulation on import of Used Equipment for instance. Indeed, the cooperation and the proximity with the EU will probably bring closer the Vietnamese and the European Laws.

Most important issues

– With the regulation on Used Equipment, investors may hesitate to invest because of the higher costs induced.

– The taxation deriving from this regulation remains unclear and not quite appropriate.

– The relevant regulations must be amended as the EVFTA will enter into force.

***

Thank you!

December 30, 2016January 5, 2017 by Dr. Oliver Massmann

VIETNAM – GUIDANCE FOR FOREIGN INVESTORS: Sectors/sub-sectors in which representative offices and branches of foreign traders allowed to establish

According to Vietnam’s WTO Services Specific Commitments, the 2005 Commercial Law of Vietnam, Decree No. 07/2016/ND-CP dated January 25, 2016 of the Government detailing the Commercial Law regarding representative offices and branches of foreign traders in Vietnam, the following sectors/ subsectors are those in which representative offices and branches of foreign traders are allowed to establish in Vietnam:

Regarding Representative Office:

Sectors	Sub-sectors
Business services
Professional Services	Legal services
	Accounting and auditing and bookkeeping services
	Taxation services
	Architectural services
	Engineering services
	Integrated engineering services
	Urban planning and urban landscape architectural services
	Veterinary services
Computer and Related Services
Research and Development Services
Rental/Leasing Services without Operators	Relating to aircraft
Rental/Leasing Services without Operators	Relating to other machinery and equipment
Other Business Services	Advertising services
	Market research services
	Management consultant services
	Services related to management consulting
	Technical testing and analysis services
	Services incidental to agriculture, hunting and forestry
	Services incidental to mining
	Services incidental to manufacturing
	Related scientific and technical consulting services
	Maintenance and repair of equipment
Communication services
	Courier Services
	Telecommunication Services
	Audio-visual Services
Construction and related engineering services
	General construction work for building
	General construction work for civil engineering
	Installation and assembly work
	Building completion and finishing work
	Other
Distribution services
	Commission agents’ services
	Wholesale trade services
	Retailing services
	Franchising services
Educational services
	Secondary education services
	Higher education services
	Adult education
	Other education services
Environmental services
	Sewage Services
	Refuse disposal services
	Other services (Cleaning services of exhaust gases & Environmental impact assessment services)
Financial services
	Insurance and Insurance-Related Services
	Banking and Other Financial Services
	Securities
Health related and social services
	Hospital services
	Medical and dental services
Tourism and travel related services
	Hotel and restaurant
	Travel agencies and tour operator services
Recreational cultural and sporting services
	Entertainment services
	Electronic games business
Transport services
	Maritime Transport Services
	Internal Waterways Transport
	Air Transport Services
	Rail Transport Services
	Road Transport Services
	Services Auxiliary to all Modes of Transport

*Please note representative offices are dependent units of foreign enterprises established according to the laws of Vietnam and are not allowed to engage in any direct profit-making activities.

Regarding branch of foreign traders:

No.	Sectors/ sub-sectors
1	Legal services
2	Computer and related services
3	Management consultant services
4	Services related to management consulting
5	Construction and related engineering services
6	Franchising service
7	Financial services: – Insurance and insurance-related services – Banking and other financial services – Securities services

***

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

Thank you very much!

December 15, 2016 by Dr. Oliver Massmann

VIETNAM – CASINO AND GAMING – BREAKING NEWS – VIETNAMESE MAY GAMBLE !

The final draft of the casino decree (‘Casino Decree’) has been passed by the Ministry of Justice and Government’s Office. It is now on the table of the Politburo and Prime Minister for their comments, which are as always, the most important. It is expected that the Casino Decree will be issued during Christmas 2016 or early 2017.

For many reasons, the text of the Casino Decree has not been made public. The Ministry of Finance has been successful in keeping the draft Casino Decree under secrecy. Again, whether Vietnamese residents are permitted to enter casinos in Vietnam is a big question that may wait for decision of the highest level of Vietnam’s political system.

The Ministry of Public Security (MPS) has proposed a draft decree that lists casino as a conditional business which is subject to license of the MPS with respect to social orders. A very interesting point is that the draft decree only prohibits Vietnamese from playing on gaming machines. It is important to note that no such prohibition is mentioned with respect to Vietnamese’s playing in casinos. This may give a hint that Vietnamese may enter casinos if they are ‘permitted’. This fact corresponds to provisions of the new Penal Code that makes it very clear that only ‘illegal’ gambling is punished.

So, though not 100% sure, more likely that Vietnamese may enter casinos and gamble but with specific conditions in 2017.

At present, pending the issuance of the Casino Decree, all projects on casino are put on hold. we will follow up and keep you updated.

THANK YOU!

Oliver Massmann

December 6, 2016December 6, 2016 by Dr. Oliver Massmann

La clause La Plus Importante De Tout Contrat Commercial Au Vietnam – Mettez Votre Clause De Résolution Des Conflits En Ordre !

1. Pourquoi l’arbitrage est un choix sensé

Cet article montre clairement aux entreprises étrangères la nécessité des clauses de résolution des conflits et assiste le choix des alternatives appropriées aux tribunaux civils vietnamiens.

Les inconvénients des tribunaux vietnamiens

La plupart des contrats d’Amérique du Nord et d’Europe précisent dans les détails les obligations de toutes les parties et ils seront regardés attentivement pour l’effectivité de ses clauses. La force exécutoire du contrat est néanmoins largement considérée comme allant de soi.

D’autre part, les contrats entre investisseurs étrangers etentités vietnamiennes ou ayant une référence au Vietnam qui établissent la compétence des juridictions vietnamiennes, devraient toujours préciser la question : « quelle institution devra se prononcer quel que soit le conflit et dans quelle langue et selon quel droit applicable ? »

Dans cette circonstance, sans clause de résolution des conflits, les juridictions vietnamiennes seront compétentes pour tout conflit. Mais les parties concernées doivent prendre en compte les particularités des cours vietnamiennes en comparaison avec les tribunaux occidentaux appliquant la règle de droit. D’après Transparency International, le risque de corruption des décisions demeure et presque un cinquième des ménages interrogés ayant été devant un juge ont déclaré avoir payé au moins une fois des pots-de-vin (Baromètre Général de Corruption, 2011). Beaucoup d’entreprises évitent donc d’avoir affaire aux juridictions vietnamienne, l’existence des pots-de-vin les en décourageant (Intégrité Globale 2011 ; USAID sur la compétitivité des provinces vietnamiennes Index 2011). Malgré le risque persistent et fâcheux de corruption et malgré des efforts d’amélioration, la justice vietnamienne continue de lutter contre d’autres problèmes. Beaucoup de juges vietnamiens manquent de pratique juridique adéquate et sont désignés grâce à leurs liens personnels avec les chefs du Parti ou d’après leurs opinions politiques, comme le révèle l’étude menée en 2012 par le ministère des affaires étrangères américain. Des salaires très faibles ainsi que des mandats de cinq ans devant être renouvelés par désignation, accentuent la dépendance du judiciaire à la sympathie du Parti Communiste et à la corruption. De plus, se pose le problème récurrent de l’incompatibilité entre la règle de droit et le système du parti unique, exclusifs l’un de l’autre de par l’absence de séparation des pouvoirs en pratique (Andersson 2012). Le terme de règle de droit, dans sa traduction vietnamienne, signifie règles d’état, soit règles du Parti Communiste gérant l’unique parti d’état. Tenant compte de ces faits, soumettre les éventuels conflits à la juridiction vietnamienne n’est pas conseillable, d’autant que la possibilité de corruption, de pression politique et d’incompétence des juges doit être prise en compte. Il est important de noter que, tel que dans les pays avec un système d’indépendance judiciaire et un attachement profond à la règle de droit, les sociétés peuvent préférer soumettre les affaires sensibles à l’arbitrage plutôt que de voir leurs affaires commerciales devenir de notoriété publique.

Les avantages de l’arbitrage

Le centre d’arbitrage adéquat assure indépendance des décisions et compétence professionnelle. Il est normalement possible de choisir un groupe d’arbitres que les parties reconnaissent comme fiable dans la clause, ce qui peut conduire à une meilleure acceptation de la décision arbitrale. Il est important d’envisager les candidats à l’arbitrage d’après leur compétence dans le domaine de l’entreprise. La majorité des centres d’arbitrage proposent des experts renommés pour certains domaines particuliers.

2. Quelle cour d’arbitrage est la plus adaptée ?

Choisir la bonne cour d’arbitrage est un élément essentiel dans la constitution de la clause de résolution des conflits. Une entreprise peut choisir entre une cour arbitrale vietnamienne, comme par exemple le Centre International d’Arbitrage Vietnamien (VIAC), ou une cour arbitrale à l’étranger telle que le Centre International d’Arbitrage de Singapour (SIAC). Pour choisir le lieu du procès, les éléments suivants doivent être soigneusement pris en compte :

La taille du projet

Pour les projets les plus importants avec un investissement total dépassant plus ou moins 5 millions de dollars, le choix d’une cour arbitrale internationale est généralement recommandé. A ce stade, il est probable que le problème de la pression financière (voir infra) soit négligé. Une décision arbitrale internationale a plus de chances d’être acceptée par les deux parties, puisque l’absence de compétence de l’arbitre ainsi que la moindre possibilité de pression politique peuvent ainsi être éliminées.

L’emplacement des biens saisissables – les risques d’exécution des sentences arbitrales étrangères

Un autre élément déterminant est l’emplacement des biens du partenaire contractant pouvant être saisis en exécution de l’éventuelle sentence arbitrale. Si les biens sont principalement situés au Vietnam, la décision d’une cour arbitrale internationale doit être appliquée – ce qui est plus compliqué que d’exécuter une sentence nationale. En effet, le Vietnam est devenu membre de la Convention de New York sur la reconnaissance et l’exécution des décisions arbitrales étrangères de 1958 (NYC) en 1995, et dès lors les sentences arbitrales étrangères des 149 états membres doivent normalement être appliquées. Cependant, il y a un risque de délai notable dans l’exécution de la décision, puisqu’il est requis de formuler une demande auprès du Ministère de la Justice avec des explications approfondies, et de comparaitre au tribunal dont la décision est susceptible d’appel, en exécution de la sentence arbitrale. En outre, la cour vietnamienne d’application des décisions peut rejeter la sentence. D’après l’article V de la NYC, cela est possible dans le cas où une sentence arbitrale viole le droit national ou l’ordre public. Le Code Civil vietnamien s’y réfère via les « principes de lois vietnamiennes », et la justice vietnamienne en a retenu une interprétation large (Tam Shu Ching et al. 2012). Dans un cas, par exemple, la sentence arbitrale d’une société étrangère avait été rejetée au motif qu’il manquait un permis de construire (Tyco Services Singapore Pte Ltd vs Leighton Contractors Vietnam).

La pression du coût

Il faut également prendre en compte la différence de prix entre un arbitrage national et un arbitrage à l’étranger. Pour un conflit mettant en jeu environ 4 millions de dollars, par exemple, le coût de l’arbitrage au VIAC s’élève à environ 62 000$ si un arbitre est assigné à l’affaire, tandis que le coût atteint 117 000$ au SIAC. Non seulement les coûts d’arbitrage à l’étranger sont considérablement plus élevés, mais cette option peut créer des coûts supplémentaires pour les parties, tels que des frais de déplacement pour les parties, les témoins et les avocats. Par ailleurs, les honoraires des avocats des cours internationales sont souvent plus importants que ceux des avocats vietnamiens (Shouzhi et al. 2009). Cette même constatation s’applique aux opinions d’experts et autres professionnels. Le risque d’un litige onéreux risque de pousser une entreprise avec moins de liquidités à accepter un accord même défavorable. Dès lors, un arbitrage moins coûteux est souvent plus bénéfique aux entreprises avec de moindres ressources financières.

La complexité et la spécialité de l’objet du contrat et les problèmes éventuels

Les cours arbitrales vietnamiennes, telles que VIAC, ont une grande compétence juridique. Toutefois l’arbitrage national ne peut pas proposer des experts de renommée internationale tels que le sont ceux des tribunaux étrangers. La raison principale tient du coût peu élevé des charges d’un arbitre au Vietnam. Aussi les décisions concernant des transactions financières très complexes ou les contrats portant sur un domaine très spécialisé, sont plus à mêmes d’être acceptées par les parties si ces dernières choisissent un arbitre plus coûteux avec une expertise reconnue.

Les entreprises publiques (cachées)

Quand les entreprises publiques sont impliquées, il est conseillé d’intégrer une clause d’arbitrage étranger. Cela assure un arbitrage indépendant de toute forme de pression de l’entreprise publique. En théorie, le problème d’exécution de la décision demeure, cependant le développement actuel tend à montrer qu’une sentence en faveur d’une entreprise renforce sa position vis-à-vis de ses partenaires. La même chose s’applique pour les entreprises publiques : les sociétés qui sont de facto influencées par le gouvernement, par exemple ceux qui se partagent la propriété via les filiales des entreprises publiques. Le caractère public, « state-owned », du partenaire contractuel doit toujours être apprécié avec prudence.

Cas spécial : la propriété intellectuelle

Dans des cas particuliers, concernant la propriété intellectuelle, les contrats doivent s’assurer qu’aucune mesure provisoire officielle ne soit rendue caduque par la clause d’arbitrage. Les cours arbitrales peuvent elles aussi rendre des mesures provisoires. Dans ce cas, une clause d’ouverture est à envisager au lieu où les cours et autorités vietnamiennes telles que le Bureau de Management du Marché, émettent en temps normal des mesures provisoires plus efficaces.

Choice of jurisdiction

Juridictions vietnamiennes

Arbitrage au Centre d’Arbitrage International du Vietnam (VIAC)

Arbitrage à l’étranger

souvent déconseillées

projets de moins de 5 millions $

projets supérieurs a 5 millions $

Seulement dans les cas particuliers de propriété intellectuelle, une clause d’ouverture peut être ajoutée dans la clause de résolution des conflits e.g. pour faire réaliser une mesure provisoire par une autorité telle que le Bureau de Management du Marche

les biens saisissables de l’associé contractant sont situés au Vietnam

pour des questions juridiques moins complexes

le contrat a trait à plusieurs domaines juridiques e.g. le droit de la consommation
le partenaire contractuel n’est pas une entreprise publique
capacité financière propre limitée, la pression du coût peut être une menace

les biens saisissables de l’associé contractant sont situés à l’étranger

pour des questions juridiques plus complexes

le contrat a trait à des domaines nécessitant des professionnels spécialisés

le partenaire contractuel est une entreprise publique

capacité financière propre plus importante, la pression du coût n’est pas une menace

Aucune clause de résolution Clause de résolution Clause de résolution des

des conflits nécessaire des conflits nécessaire ! conflits nécessaire !

3. Comment la rédiger ?

La loi vietnamienne admet explicitement les clauses de résolution des conflits dans les contrats commerciaux dans la Loi 54/2010 sur l’arbitrage commercial (« LCA »). Une clause de résolution des conflits efficace retire la compétence des tribunaux vietnamiens sur l’affaire en question et établit la compétence du tribunal arbitral désigné. La LCA suit le modèle de loi de la CNUDCI comme standard international pour les règles procédurales, d’autant que la volonté du législateur est d’adopter une position pro-arbitrage.

Une fois que la décision est prise de savoir quel tribunal d’arbitrage retenir pour les litiges issus du contrat, les points suivants doivent être clarifiés :

La loi applicable: elle doit être choisie en toute liberté dans les cas comprenant un élément étranger d’après l’article !$ de la LCA. La loi applicable choisie pourra influencer le choix des arbitres, s’ils ont une expérience juridique sur ce droit national en particulier.

La langue de la cour : Cela est choisi librement selon l’article 10 de la LCA.

Le nombre d’arbitres : Plusieurs arbitres peuvent rendre une décision plus équilibrée en tant que formation collégiale. Les couts de l’arbitrage vont néanmoins être accrus en conséquence.

Le choix nominatif d’un arbitre : Cela est important dans le cas où des experts seront nécessaires à l’affaire.

La clause de résolution des conflits devient effective lorsque les requis des articles 16, 18 et 19 de la LCA sont remplis, soit à travers un accord écrit.

Conclusion

La question de savoir s’il faut ou non une clause de résolution des conflits dans les contrats au Vietnam se répond par un oui net. Toutefois, décider au bon moment de la résolution d’un litige peut s’avérer très complexe, puisqu’un certain nombre de facteurs doivent être pris en considération. On peut espérer que la LCA pro-arbitrage de 2010 tienne ses promesses dans sa mise en pratique, et que la justice vietnamienne exécute de façon fiable les décisions arbitrales internes autant qu’internationales. Ainsi serait émis un signal positif à l’égard des investisseurs étrangers qui auraient des réserves dans le fait d’engager un litige au Vietnam.

—

Oliver Massmann est un associé dans le bureau d’ Hanoï du cabinet américain international Duane Morris LLP. Il est spécialisé dans les domaines de fiscalité internationale des sociétés et sur les projets d’eau ou d’énergie, sur les affaires liées aux compagnies pétrolières et gazières et de télécommunications, la privatisation et transformation d’entreprise (pour les entreprises publiques), les fusions-acquisitions et les affaires commerciales de clients multinationaux désirant investir ou établir une entreprise au Vietnam. Massmann est un arbitre officiel du Centre d’Arbitrage International du Vietnam. Oliver Massmann est le Directeur Général de Duane Morris Vietnam LLC.
Il est joignable par mail : omassmann@duanemorris.com

December 2, 2016 by Dr. Oliver Massmann

Vietnam – Wind Power Breaking News – One of the first foreign financed Wind PPAs signed – Duane Morris advised on this transaction – What you must know

EAB New Energy GmbH (“EAB”), a German privately held SME with business activities around the world (Asia, Latin America, South Africa), engaged Duane Morris Vietnam LLC to advise on one of the very first privately financed Wind Energy Power Purchase Agreements for a wind power project in Vietnam – the “Mui Dinh” wind project (SPV el-wind Mui Dinh LLC) with a total investment value at final stage of about 60 Million USD.

EAB, in close co-operation with its subsidiary in Vietnam – WPV Wind Power Vietnam LLC, has received the Construction Permit for the wind power plant in Ninh Thuan province and will start the wind farm construction works in due course. Duane Morris Vietnam LLC advised EAB in the negotiation of the Wind Power Purchase Agreement with the Electricity of Vietnam (“EVN”) to connect into to the national electricity and sell electricity to EVN (the “Project”). The Wind Power Purchase Agreement was signed on 01 February 2016. This is one of the first signed Wind Power PPA in Vietnam and EAB is one of the first foreign companies with this success.

Given the fact that Vietnam’s wind energy potential is highly appreciated by investors in comparison to its ASEAN neighbours, and very good for building large wind power plants, the success of this Project is considered to pave the way for development of another 40 wind power development in Vietnam, roughly 513,360 megawatts.

This is the beginning of a sizeable privately financed wind energy sector in Vietnam.

Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you want to know more details on the above or need our assistance in your project. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.