Requirements concerning submission of notarized or certified true copies of several administrative formalities are about to take effect

On January 30, 2019, the Government promulgated the Decree No. 11/2019/ND-CP (in force from March 15, 2019) amending Decrees prescribing administrative formalities regarding requirements for submission of notarized or certified true copies of documents under the management of the Ministry of Culture, Sports and Tourism.

The Decree prescribes that persons implementing administrative procedures must submit certified true copies or must submit duplicate copies and present original copies for verification purposes if they wish to submit their documents in person; must submit certified true copies if they wish to submit documents by post, including:

- Enterprise registration certificates included in the application package for grant of dance hall licenses or karaoke licenses.

- Sample contract for use of artistic works or sample authorization letter of the art work owner included in the application package for permits for duplication of fine art works related to cultural famous persons, national heroes or father-figures. 

- Representative office establishment license included in the application package for amendments or modifications to a representative office establishment license.

-Thuvienphapluatvn-

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M&A makes up majority of foreign capital inflows

HCMC - Some US$6 billion out of US$7.63 billion in foreign investment capital pledged to HCMC last year came from capital contributions, share acquisitions and purchases of stakes from domestic businesses.

HCMC vice chairman Le Thanh Liem said at a conference in Binh Duong Province on February 14 that the pledged investment capital from foreign investors for HCMC last year picked up by 15.59% against the previous year. Of these, there were 1,060 new projects, with total registered capital of US$811.68 million, and 244 projects with additional capital of over US$835 million.

Last year also saw 3,283 cases in which foreign investors received approval to contribute capital, buy shares and contribute capital to domestic firms, with registered capital totalling US$5.99 billion.

With these results, HCMC received around 60% of foreign capital.

According to Liem, the 2014 investment law has provided a favorable legal corridor for foreign investors to proceed with mergers and acquisitions (M&As).

There have been continuous increases in the number and value of these investments, with only US$1.5 billion received in 2016, US$3.68 billion in 2017 and almost US$6 billion last year.

Liem noted that registered capital through M&As in HCMC had so far reached US$10 billion, 22% of the total foreign capital the city has attracted since 1988.

Also, in HCMC private investments are overwhelming foreign investments. Liem pointed out that the amounts of private capital and foreign direct investment (FDI) capital were almost the same, 29% and 29.5% in 2000, but 68.1% and 15.6% in 2015.

Regarding absolute values, private investments in the city have risen 33-fold, from VND7.4 trillion to VND250 trillion, whereas FDI capital has soared by 7.45 times, from VND7.6 trillion to VND56 trillion.

As shared by Liem, in the past, FDI businesses tended to dominate major property projects, which required heavy investment and advanced construction technology, but local businesses are now able to compete and even buy some projects owned by FDI firms.

On a national scale, Liem said that many economic groups have grown rapidly, dominated the markets and competed with FDI firms in areas where Vietnam is often weaker such as telecoms, automobile manufacturing and electronics manufacturing.

This, according to Liem, has confirmed the position and role of domestic firms in the new age.

However, Liem raised the issue of whether FDI attraction policies are no longer able to maintain their effectiveness as they once did.

He also highlighted the need to build a separate policy to attract special partners. “We have attracted many large investors to Vietnam, but what we have not been able to do is get multinational companies to base their headquarters or research and development wings in Vietnam.”

This is partly due to the fact that Vietnam’s investment environment is not ripe enough to be appealing and the country has yet to impose drastic measures to attract special partners, Liem added.

Last month, the Ministry of Planning and Investment coordinated with the Government Office; relevant ministries and agencies; and the governments of Haiphong, Bac Ninh and Hanoi to organize meetings on foreign investment attraction. These meetings, chaired by Deputy Prime Minister Vuong Dinh Hue, were intended to gather the opinions and proposals of local governments on foreign investment policies.

The meeting in Binh Duong on February 14 was attended by more than 650 representatives of the Central Economic Commission, ministries and agencies, governments of southern localities and authorities of economic zones, industrial parks, associations and investment organizations.

-TheSaigontime-

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Danang to call on investment in hi-tech, real estate after Tet

DANANG – The central coastal city of Danang plans to call for investment in 44 projects mostly in the fields of hi-tech and real estate after the Tet holiday, with each of them needing US$30,000 to US$400 million, according to a representative of the Danang Investment Promotion Agency.

Half of the 44 projects are in the information-technology and hi-tech sectors and will be executed in Danang Hi-Tech Park.

The city is seeking investors for a solar energy project which needs US$150 million to US$400 million, and a US$200-million project to manufacture semiconductor materials for electronic parts and circuits. A 60-hectare urban area project and Truoc Dong Lake ecological zone covering 100 hectares of land are also in need of investment capital.

Apart from that, the city plans to resume work on the delayed projects that have yet to be licensed for investment, including a No.2 software park project covering over 50 hectares. Singapore's firm Sembcorp proposed injecting over US$90 million into the project long ago, but it has been awaiting word from the ministries of Foreign Affairs, Public Security, and National Defense as it is located in a maritime boundary area.

Meanwhile, Matrix Holdings Limited from Hong Kong wants to build a racetrack and horse training and multiplication center in the city, with total capital of US$200 million. An appropriate site is still being sought for it.

Further, Danang will prioritize foreign direct investment in digital, biotechnology, hi-tech agricultural projects, meaning that projects that apply outdated technologies and harm the environment will not be accepted. Investors from Japan, South Korea and Europe are preferred.

-Thesaigontimes-

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Multimodal Transport Business Regulations in Vietnam

On October 16th, 2018, Vietnam Government issued Decree No. 144/2018/ND-CP amending, supplementing the decrees on multimodal transport. Under the law of Vietnam, multimodal transport (“MT”) is the transportation of goods performed with at least two different modes of transport under the multimodal transport contract from an original place to a place designated for delivery, the carrier is liable for the entire carriage. MT business includes: International multimodal transport (“IMT”) and Domestic multimodal transport (“DMT”).

The new decree eliminates and simplifies regulations on IMT business conditions and abolishes DMT business as a conditional business line. In fact, DMT including many transportations such as transport by sea, air,… is governed by specialized laws on each transport, hence it is not necessary to stipulate additional business conditions when conducting the combined transport.

Regarding the conditions of IMT business, the new Decree no longer differentiates between domestic and foreign enterprises as in the past, all enterprises therefore must meet the followings:

(1) Maintaining a minimum amount of assets equivalent to SDR 80,000 or provide an equivalent guarantee or an alternative of financial character as regulated by laws;

(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.

In addition, in order to facilitate member state of the ASEAN Framework Agreement on Multimodal Transport or another international treaty on multimodal transport to which Vietnam is a signatory, new regulations are stipulated as follows:

(1) Having a registration certificate of international multimodal transport or another document of equivalent validity issued by the competent national body of its country;

(2) Having a liability insurance policy for multimodal transport operator or an equivalent guarantee.

The licenses to provide international multimodal transport service issued by competent authorities of Vietnam before the date of entry into force of this Decree are still valid until their expiration dates.

With the role of supporting trading activities, modern transports need to meet the increasingly complex requirements of the domestic and international transport market, which not only deliver goods but also connect the transport process into an uninterrupted transport chain to ensure a faster and safer transport process.

Transport lawyers at ANT Lawyers, the law firm in Vietnam have always following up the legal development on transportation to provide our clients with regular update on the matters.

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Foreign investment in Vietnam surges

HCMC - New foreign investment approvals in Vietnam during the year to January 20 reached US$1.9 billion, rocketing by 51.9% year-on-year, according to the latest report by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

As of January 20, up to 226 new projects obtained investment certificates, with total registered capital of some US$805 million, surging by 81.9% year-on-year. In addition, 72 foreign-invested projects won approval to inject an additional US$340.2 million, equal to 74.5% of the figure in the same period last year.

In addition, foreign investors acquired local company shares worth US$761.8 million in 489 transactions, surging 114% over the year-ago period.

According to the Foreign Investment Agency, foreign investors injected capital into 18 sectors, of which the manufacturing and processing sector was the most attractive, receiving a total of US$1.19 billion, making up 62.4% of the fresh capital.

The science and technology sector came in second, with US$185.8 million, followed by the real estate sector, with US$179.1 million.

Japan remained Vietnam’s largest investor this month, with US$364 million, accounting for 19% of the total. South Korea ranked second, with US$349.1 million, and the third largest investor was China, with US$307.8 million.

-Thesaigontime-

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The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 28 730 86 529.

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Vietnam needs to create an enabling environment for private players to drive the next wave of energy investments, the World Bank said.

In the report titled "Maximizing Finance for Development in Vietnam’s energy sector" issued Monday, the bank called for a new approach to financing electricity and gas investments to fit the country’s changing macroeconomic and sectoral contexts.

"Given the limited fiscal space (official developmental assistance capital) and the reduction of concessional financing available going forward (due to Vietnam’s recent middle-income status), it will be important for Vietnam to step up mobilizing alternative capital resources for the electricity and gas sectors," Ousmane Dione, the bank’s country director for Vietnam, said .

The Government should comprehensively address the constraints currently impeding the flows of domestic and cross-border private capital into two of the most strategic segments of the Vietnamese economy, electricity and gas, he added.

Franz Gerner, the World Bank’s lead energy economist, said: "We observe a large interest from private investors to participate in the vast growing energy market in Vietnam, especially in renewables and LNG development."

"They are willing to invest as long as the projects are well-structured and bankable," he said. "What investors need is a transparent and stable regulatory environment which incorporates a proper risk-sharing mechanism among all parties."

Vietnam’s electricity sector would require on average $10 billion annually frontloaded through 2030, higher than the average of $8 billion in 2011–15, according to the bank.

The envisaged expansion of the gas sector requires total investment of around $20 billion between 2015 and 2035.

- evnexpress-

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Meeting with Victor Schachter on Jan 18th, 2019 on Development of Mediation & ADR in Vietnam

On January 18th, 2019, ANT Lawyers’ representatives Mr. Tuan Nguyen, and Ms. Thuy Do received Mr. Victor Schachter – the Founder and the President of The Foundation for Sustainable Rule of Law Initiatives (FSRI) at ANT Office Building, A9 Xuan Phuong Garden, Tran Huu Duc Street, Nam Tu Liem District, Hanoi. FSRI is a non-governmental organization which provides training, education and counseling to a range of legal providers in developing countries, including courts, judges, lawyers and mediators, with the goal of building sustainable mediation programs which achieve timely, fair and peaceful resolution of disputes.

At the meeting, Mr. Schachter emphasized the importance of mediation: “More and more big companies have been using mediation to win-win solution, they don’t want to destroy their relationship to resolve their problems”, which has been seriously taken note by Mr. Nguyen.

On the occasion of Mr Schachter’s visit, he has been informed by Mr Nguyen about the newly set up mediation center in Vietnam, the Vietnam Effective Commercial Mediation Center (VEMC) which license has been granted by Ministry of Justice in 2018. Mr Schachter spent time to visit the mediation facility including the training room, mediation rooms for joint meeting and private meeting and suggested some modifications according to his experience from the US’s mediation practice. VEMC will operate under the Decree No. 22/2017/ND-CP dated on February 24th, 2017 of the Government on Trade Mediation. This is the fifth mediation center of Vietnam established and operated since the Decree No. 22/2017/ND-CP officially took effect.

Since 2012, Mr Tuan Nguyen has been made aware of mediation and its benefits. He has been attending many training since and most recently been accredited by CEDR and Ministry of Justice as mediator.

Recognizing the rise in number and complexity in commercial dispute, the 2015 Civil Procedure Code has a new chapter on recognizing mediation. In February 2017, the Government issued Decree 22/2017/ND-CP officially legalizing commercial mediation. In addition, the Vietnam Government also has been focusing on developing mediation as alternative dispute resolution by piloting court-annexed mediation centers in Hai Phong and expanding to Hanoi, Ho Chi Minh City, Da Nang, Bac Ninh, Khanh Hoa, Long An. The results and experience of the project will be an important basis for developing and promulgating the Law on Mediation and Dialogue at the Court. A written record of successful mediation results shall be recognized and enforced in accordance with the civil procedure law. This is an advantage of mediation activity in Vietnam to encourage parties to participate in resolving trade disputes by mediation.

End the end of the meeting, both Mr Schachter and Mr Nguyen promised to continue working on initiative to promote mediation and ADR service in Vietnam through training, conferences and technical assistance.

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