Although the Housing Law of 2014 created favorable conditions for foreigners to own houses here, buying a home is still no easy matter for foreigners given the legal complexity of the real estate sector in Vietnam.
From July 1, 2015, with the new Law on Investment (LOI) and new Law on Enterprises (LOE) coming into force, Vietnam changes its legal platform significantly for M&A transactions, especially for those with foreign investment elements. From a foreign buyer’s perspective, the legal framework becomes more transparent, simplified, shortened, and generally favouring those aspiring to become the target company’s controlling shareholder. The extent of improvement, however, may depend very much on how the new conditions for foreign investments are stipulated and implemented.
On 25 June 2015, the State Bank of Vietnam issued Circular No. 07/2015/TT-NHNN on bank guarantee which is considered as one of the most important documents regulating bank guarantee applied to domestic credit organizations, branches of foreign banks for foreign customers. The Circular is to replace the previous one, namely Circular No. 28/2012/TT-NHNN on 03 October 2012 issued by the State Bank of Vietnam on bank guarantee.
M&A is an essential component for business and the investment environment. In the real estate development sector, M&A is more essential since it may cleanse the obstacles in the market, and makes it more stable and flowing.
In light of the new Law on Investment that came into effect on July 1, the final draft decree implementing the law, as well as the draft circular implementing the decree, are now being prepared by the Ministry of Planning and Investment (MPI).
Recently Vietnam has become a favourite merger and acquisition (M&A) destination among foreign investors, particularly from Japan, Korea and Singapore. Popular sectors include real estate, food and beverages, retail, and to a lesser degree, manufacturing.
LNT’s Thai Binh Tran and Quang Dao Nguyen look at some of the issues raised by the Ministry of Construction’s Circular 03 which insists on a standardised approach to property contracts between individuals and real estate developers.
On May 14, the government issued Decree 42/2014/ND-CP regulating multi-level sales activities. Decree 42 took effect on July 1, 2014 and replaced Decree 110/2005/ND-CP. To detail certain provisions of Decree 42/2014/ND-CP, on July 30 the Ministry of Industry and Trade issued Circular 24/2014/TT-BCT, which will come into effect from September 15.
While investors’ interest in Vietnam has translated into healthy growth in mergers and acquisitions (M&As) and foreign direct investment (FDI), the potentially far reaching impact of the Competition Law is not understood by many players, writes Dr. Nguyen Anh Tuan from LNT & Partners.
LNT & Partners’ Hoang Nguyen Ha Quyen and Logan Leung take a look at the State Bank of Vietnam and Ministry of Finance’s new regulations outlined in Joint Circular 86/2014/TTLT-BTC-NHNNVN on managing the sale of insurance via the banking sector, which come into effect from September 1, 2014.
Public-private partnerships in Vietnam are currently regulated under governmental Decree 108/2009/ND-CP and prime ministerial Decision 71/2010/QD-TTg. This legal framework is currently in the process of being revised as the regulations attempt to address the current issues facing the country’s infrastructure sector. In relation to this aim, the Vietnamese government has recently issued its draft regulations on public-private partnership investment forms.
While investors’ interest in Vietnam has translated into healthy growth in M&As and foreign direct investment (FDI), the potentially far reaching impact of the Competition Law is not understood by many players, writes Dr. Nguyen Anh Tuan from LNT & Partners.