PROPOSED AMENDMENTS TO INVESTMENT REGULATIONS (Vietnam)

Author: Long Nguyen

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.10 (April, 2019)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction
The current legal framework for business investment in Vietnam is generally governed by two laws. The Law on Investment (“LOI”) governs the investment aspect while the Law on Enterprises (“LOE”) governs the organizational structures of the enterprise implementing the investment projects.

The current versions of these two laws were issued on 26 November 2014 by the National Assembly of Vietnam and came into effect from 1 July 2015.

After few years of implementation, it has been observed that certain provisions of these laws have not been conducive to business investment and therefore should be amended. In addition, new issues regarding business investment have arisen which should be governed by these laws. For these reasons, there has been a proposal to amend these laws. The proposed amendments are expected to be submitted to the National Assembly in its meeting to be held at the end of 2019 and if such amendments are approved, they will come into effect from 1 July 2020.

Certain amendments which may have some effect on foreign investment as included in the latest draft amendments to the LOI and LOE (hereinafter referred to as “LOI Draft” and “LOE Draft” respectively) publicly disclosed on 4 April 2019 are discussed below.

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