legal updates

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{"company_logo":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/Ardens%205.png","company_name":"Ardens","company_email":"lawyers@ardens.com.vn","company_phone":"+84 972 308 472","company_address":"Ground Floor, 43 Tran Quy Cap Street, Ward 12, Binh Thanh District, Ho Chi Minh City, Vietnam","company_fax":"","date_now":1767279430,"company_tags":["Law firm in Vietnam; M&A Lawyers; Incorporation in Vietnam; Liquidation Lawyers"],"search_keyword":null,"facebook_comment":"http:\/\/ardens.com.vn\/legal-updates","breadscrumb":[{"url":"http:\/\/ardens.com.vn","name":"Home","icon":"","active":false},{"url":"javascript:void(0)","name":"Legal updates","icon":"","active":true}],"list_products_tmp":[],"list_section":[{"id":634046,"name":"SECTION-90738","seo_name":"#w30s-section-634046","url":"#w30s-section-634046"},{"id":634049,"name":"SECTION-90739","seo_name":"#w30s-section-634049","url":"#w30s-section-634049"},{"id":634076,"name":"SECTION-91485","seo_name":"#w30s-section-634076","url":"#w30s-section-634076"},{"id":634075,"name":"SECTION-91487","seo_name":"#w30s-section-634075","url":"#w30s-section-634075"},{"id":634047,"name":"SECTION-90740","seo_name":"#w30s-section-634047","url":"#w30s-section-634047"}],"category_image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/Ardens%205.png","type_page":6,"id_page":439404,"widget_15868871":{"content_data":{"content":""}},"widget_15868875":{"content_data":[{"id":89944,"title":"American","code":"us","is_expires":false,"is_active":1}]},"widget_15868872":{"content_data":[]},"widget_15868874":{"content_data":{"content":" "}},"widget_14845855":{"content_data":{"content":""}},"widget_14845842":{"content_data":[{"id":727417,"name":"Amendments to Vietnam’s Law on Investment (2025 Update)","desc":"","content":"<\/p>\n\nVietnam has introduced certain amendments to the Law on Investment 2020<\/b>, reshaping the framework for investor selection, project approval, and conditional business sectors. These changes, effective from July 1, 2025<\/b>, reflect the country&rsquo;s evolving priorities in technology, infrastructure, and regulatory decentralization.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<ol>\n\t<li style=\"margin:0in 0in 8pt 0.5in\">Decentralization of Project Approval Authority<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/li>\n<\/ol>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">National Assembly<\/span><\/span><\/span><\/b>: The authority to approve nuclear power projects has been removed<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Prime Minister<\/span><\/span><\/span><\/b>: Several approval powers have been transferred to provincial People&rsquo;s Committees<\/b>, though the Prime Minister retains authority over nuclear power plants<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Provincial People&rsquo;s Committees<\/span><\/span><\/span><\/b>: Now responsible for approving large-scale projects, including:<\/span><\/span><\/span><\/span><\/span><\/span><\/span>\n\t<ul>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Resettlement projects affecting &ge;10,000 people in mountainous areas or &ge;20,000 in other regions.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Construction of airports, runways, international passenger terminals, and cargo terminals with capacity &ge;1 million tons\/year.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">New passenger air transport businesses.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Oil and gas processing projects.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Housing and urban development projects, regardless of land or population scale.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Industrial zones, export processing zones, and digital technology zones.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:6.0pt; margin:0in 0in 0in 0.5in\">Special seaports and Class I seaports.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<\/ul>\n\t<\/li>\n<\/ul>\n\n<ol start=\"2\">\n\t<li style=\"margin:0in 0in 8pt 0.5in\">Streamlined Procedures<\/span><\/span><\/span><\/span><\/span><\/span><\/strong><\/li>\n<\/ol>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Investment approval dossiers and procedures<\/span><\/span><\/span><\/b> (Articles 33 &amp; 36) will now follow Government regulations<\/b>, ensuring consistency and reducing administrative complexity.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Investment registration<\/span><\/span><\/span><\/b> (Article 36a) expands to include projects in:<\/span><\/span><\/span><\/span><\/span><\/span><\/span>\n\t<ul style=\"list-style-type:circle\">\n\t\t<li style=\"margin:0in 0in 8pt\">Industrial zones, export processing zones, high-tech zones, digital technology zones, free trade zones, and economic zones.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin:0in 0in 8pt\">Strategic technology infrastructure such as large-scale data centers, cloud computing, 5G and beyond, and other digital infrastructure<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<\/ul>\n\t<\/li>\n\t<li style=\"margin:0in 0in 8pt\">Environmental requirements are strengthened: investors must provide commitments on standards<\/b> and environmental impact forecasts<\/b> instead of preliminary assessments.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\n<ol start=\"3\">\n\t<li style=\"margin:0in 0in 8pt 0.5in\">Investment Duration<\/span><\/span><\/span><\/span><\/span><\/span><\/strong><\/li>\n<\/ol>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Projects outside economic zones: maximum 50 years<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Projects in difficult socio-economic areas, large-scale projects with slow capital recovery, high-tech infrastructure, or those eligible for special incentives: maximum 70 years<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\n<ol start=\"4\">\n\t<li style=\"margin:0in 0in 8pt 0.5in\">Transfer of Secondary Urban Projects<\/span><\/span><\/span><\/span><\/span><\/span><\/strong><\/li>\n<\/ol>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Secondary projects in urban areas launched before January 1, 2021<\/b>, with completed land-use rights and financial obligations, may now be transferred wholly or partially<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">The transferee inherits all rights and obligations, with approvals and adjustments granted under Government regulations.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\n<ol start=\"5\">\n\t<li style=\"margin:0in 0in 8pt 0.5in\">Expansion of Conditional Business Sectors<\/span><\/span><\/span><\/span><\/span><\/span><\/strong><\/li>\n<\/ol>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Newly added sectors<\/span><\/span><\/span><\/b>:<\/span><\/span><\/span><\/span><\/span><\/span><\/span>\n\n\t<ul style=\"list-style-type:circle\">\n\t\t<li style=\"margin:0in 0in 8pt\">Services related to crypto assets<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t\t<li style=\"margin:0in 0in 8pt\">Personal data processing services<\/span><\/span><\/span><\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<\/ul>\n\t<\/li>\n\t<li style=\"margin:0in 0in 8pt\">Removed sector<\/span><\/span><\/span><\/b>:<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Urban railway business.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\nImplications<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/p>\n\nThese amendments mark a strategic shift in Vietnam&rsquo;s investment landscape:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<ul>\n\t<li style=\"margin:0in 0in 8pt\">Decentralization<\/span><\/span><\/span><\/b> empowers provincial authorities, accelerating project approvals.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Technology focus<\/span><\/span><\/span><\/b> highlights Vietnam&rsquo;s ambition to attract investment in digital infrastructure and strategic technologies<\/b>.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">Flexibility in project duration and transfer rules<\/span><\/span><\/span><\/b> supports long-term, large-scale investments.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin:0in 0in 8pt\">New conditional sectors<\/span><\/span><\/span><\/b> align with global trends in digital assets and data governance<\/b>, while removing outdated categories.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n\nThis reform package signals Vietnam&rsquo;s intent to balance economic growth, technological advancement, and regulatory modernization<\/b>, positioning the country as a competitive destination for both traditional and digital-era investments.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nFor further information please contact us at Lawyers@ardens.com.vn<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<\/p>\n\n<\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/dau%20tu.jpg","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/dau%20tu.jpg","tags":["Vietnam Law on Investment; Corporate Law"],"count_view":99,"seo_name":"key-amendments-to-vietnams-law-on-enterprises-2025-update","date_update":1764904307,"date_created_format":1764897402,"meta_title":"Amendments to Vietnam’s Law on Investment 2025","meta_desc":"","meta_keyword":"Vietnam Law on Investment; Corporate Law","qr_code":"http:\/\/ardens.com.vn\/key-amendments-to-vietnams-law-on-enterprises-2025-update"},{"id":725163,"name":"Merger Filing – Overview of Requirements and Process","desc":"","content":"Merger filing requirement <\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/p>\n\nIn general, a merger filing (&ldquo;MF<\/b>&rdquo;) is triggered if a transaction (a) is considered as an economic concentration, and<\/u> <\/b>(b) meets the notification thresholds. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nEconomic Concentration<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/p>\n\n&ldquo;Economic concentration&rdquo; consists of, among others, shares acquisition in which a company (&ldquo;Purchaser<\/b>&rdquo;) acquires, directly or indirectly, all or a part of assets or contribution capital of another company (&ldquo;Target Company<\/b>&rdquo;) sufficient to control<\/u><\/b> such Target Company or one of its businesses. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nIn this regard, under the laws, &ldquo;control&rdquo; means the Purchaser will have controlling rights over the Target Company in one of the following cases: <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<ol>\n\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:8.0pt; text-align:justify; margin:0in 0in 0in 0.5in\">The Purchaser will hold more than 50% of the target company&rsquo;s charter capital or voting shares;<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:8.0pt; text-align:justify; margin:0in 0in 0in 0.5in\">The Purchaser owns or has the right to use over 50% of the target company&#39;s assets or assets in a specific business line.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:6.0pt; margin-right:0in; margin-bottom:8.0pt; text-align:justify; margin:0in 0in 8pt 0.5in\">The Purchaser has one of the following rights:<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ol>\n\n<ol style=\"list-style-type:lower-alpha\">\n\t<li style=\"margin-top:0in; margin-right:0in; margin-bottom:12.0pt; text-align:justify; margin:0in 0in 8pt\">Directly or indirectly making decisions on appointment, dismissal, or discharge (i) the majority or all the BOM members, (ii) the president of the Members&rsquo; Council, (iii) director, or general director of the Target Company;<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:0in; margin-right:0in; margin-bottom:0in; text-align:justify; margin:0in 0in 8pt\">Making decisions on revision or supplementation of the Target Company&rsquo;s corporate charter;<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:0in; margin-right:0in; margin-bottom:0in; text-align:justify; margin:0in 0in 8pt\">Making decisions on the Target Company&rsquo;s important business matters, including selection of organization of business operation; or selection of business lines, locations, and business approaches; or selection of modification to business size and\/or business lines; or selection of forms and methods of capital mobilization, allocation, and investment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ol>\n\nIf, after the transaction, the Purchaser has no right in item 3 above, MF shall not be triggered.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nIf the Purchaser has one of the rights in item 3 above, the Proposed Transaction shall be considered as an economic transaction. In such case, if the following notification threshold is met, the MF will be triggered. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nNotification thresholds<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/p>\n\nThe notification thresholds are based on (i) assets and revenue of Purchaser and Target Company in Vietnam market<\/u><\/b> and (ii) combined market share of the Purchaser, the seller and Target Company on relevant market. Specifically:<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<ol style=\"list-style-type:lower-alpha\">\n\t<li style=\"margin-top:6.0pt; text-align:justify; margin:0in 0in 8pt 0.5in\">If total assets of the Purchaser and group of affiliated enterprises of Purchaser, or<\/u><\/b> total assets of the Target Company and group of affiliated enterprises of Target Company in \n\tthe Vietnamese market<\/b> in the previous financial year is VND 3 trillion or more;<\/b><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:6.0pt; text-align:justify; margin:0in 0in 8pt 0.5in\">Total sales revenue\/total input purchase of the Purchaser and group of affiliated enterprises of Purchaser, or<\/u><\/b> total sales revenue\/total input purchase of Target Company and group of affiliated enterprises of Target Company in Vietnamese market <\/b>in the previous financial year is VND 3 trillion or more;<\/b><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"margin-top:6.0pt; text-align:justify; margin:0in 0in 8pt 0.5in\">Combined market share of the Purchaser, seller and Target Company in the relevant market in the previous financial year is 20% or more.<\/b><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ol>\n\nIf any of the above threshold is met, the MF will be triggered.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nTimeline for MF<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/p>\n\nMF takes 37 days at laws. However, from our experience, the total timeline for an MF will be around 3 ~ 4 months due to the large volume of information to be collected and the review process practice of the authority.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\nOfficial appraisal<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/p>\n\nIf, according to assessment of the authority, the combined market shares<\/b> of the seller, Purchaser and Target Company in the relevant market falls into the following cases, the transaction will be allowed to conduct, otherwise, official appraisal will be triggered: <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n<ol style=\"list-style-type:lower-alpha\">\n\t<li style=\"text-align:justify; margin:0in 0in 8pt 0.5in\">Less than 20%; <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"text-align:justify; margin:0in 0in 8pt 0.5in\">20% or more, with the sum of the squared market shares of the enterprises after the economic concentration in the relevant market being less than 1,800;<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"text-align:justify; margin:0in 0in 8pt 0.5in\">20% or more, with the sum of the squared market shares of the enterprises after the economic concentration in the relevant market being 1,800 or more, and the increase in the sum of the squared market shares before and after the economic concentration being less than 100; and<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\t<li style=\"text-align:justify; margin:0in 0in 8pt 0.5in\">The enterprises are related within a chain of production, distribution, or supply, or their business activities are inputs to or complementary to each other, with market share of less than 20% in each relevant market.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ol>\n\nThe official appraisal takes 90~<\/span><\/span><\/span>150 days at laws. In practice, this process may take 3~6 months. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/Merger.jpg?t=1763103553","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/Merger.jpg?t=1764900995","tags":["Merger Filing in Vietnam"],"count_view":30,"seo_name":"merger-filing-overview-of-requirements-and-process","date_update":1756715608,"date_created_format":1763103608,"meta_title":"Merger Filing","meta_desc":"","meta_keyword":"Merger Filing in Vietnam","qr_code":"http:\/\/ardens.com.vn\/merger-filing-overview-of-requirements-and-process"},{"id":725161,"name":"Key Updates Under the Amended Enterprise Law 2025","desc":"","content":"<\/p>\n\nEffective from 1 July 2025<\/strong>, the Amended Enterprise Law introduces several significant changes that impact both enterprises and investors in Vietnam. These updates aim to enhance transparency, improve corporate governance, and address long-standing regulatory gaps. Below is a summary of the most notable developments.<\/p>\n\n1. Introduction of the &ldquo;Beneficial Owner&rdquo; Concept<\/p>\n\nOne of the most important additions is the formal recognition of the &ldquo;Beneficial Owner&rdquo;<\/strong>&mdash;defined as an individual who ultimately owns or controls an enterprise, excluding those acting solely as representatives of the State in wholly state-owned enterprises or in joint-stock\/multi-member limited liability companies under the Law on Management and Use of State Capital.<\/p>\n\nIdentification Criteria<\/p>\n\nAn individual is deemed a beneficial owner if they meet either of the following conditions:<\/p>\n\n<ul>\n\t<li>Ownership Threshold<\/strong>: Directly or indirectly hold at least 25% of the charter capital<\/strong> or 25% of total voting shares<\/strong> of the enterprise. Indirect ownership includes holding such interests through intermediary organizations.<\/li>\n\t<li>Control Rights<\/strong>: Possess the authority to approve key corporate decisions, such as:<\/li>\n<\/ul>\n\n<ul>\n\t<li>Appointment or removal of most or all members of the Board of Management or Board of Members;<\/li>\n\t<li>Appointment or dismissal of the legal representative, Director, or General Director;<\/li>\n\t<li>Amendments to the company charter;<\/li>\n\t<li>Changes to the company&rsquo;s organizational structure;<\/li>\n\t<li>Decisions on reorganization or dissolution.<\/li>\n<\/ul>\n\nThis provision is designed to capture individuals who exercise control through nominee arrangements<\/strong>, ensuring transparency across all layers of ownership.<\/p>\n\n2. Mandatory Disclosure of Beneficial Ownership<\/p>\n\nEnterprises are now required to declare their beneficial owners<\/strong> at the time of business registration and to update this information<\/strong> whenever changes occur. Existing enterprises must disclose such information upon their next amendment to enterprise registration details.<\/p>\n\nAdditionally, companies must maintain internal records<\/strong> of beneficial ownership and provide such information to competent authorities upon request.<\/p>\n\n3. Definition of &ldquo;Market Price&rdquo; for Shares and Capital Contributions<\/p>\n\nThe amended law introduces a clearer definition of &ldquo;market price&rdquo;<\/strong>, which is critical for transactions involving share transfers and capital valuation.<\/p>\n\nFor Non-Listed Shares:<\/p>\n\n<ul>\n\t<li>The most recent market transaction price;<\/li>\n\t<li>A price mutually agreed upon by the buyer and seller;<\/li>\n\t<li>A valuation conducted by a licensed valuation firm.<\/li>\n<\/ul>\n\nFor Listed Shares:<\/p>\n\n<ul>\n\t<li>The average trading price over the 30 days<\/strong> preceding the valuation date;<\/li>\n\t<li>A mutually agreed price;<\/li>\n\t<li>A valuation by a licensed valuation firm.<\/li>\n<\/ul>\n\nThis clarification provides a more transparent and consistent basis for valuing both listed and non-listed equity, addressing prior ambiguities&mdash;especially for private companies.<\/p>\n\n4. Charter Capital Reduction via Redeemable Preference Shares<\/p>\n\nPreviously, while the concept of redeemable preference shares<\/strong> was recognized, the law lacked a mechanism for reducing charter capital when such shares were refunded. This created uncertainty for both enterprises and regulators.<\/p>\n\nThe 2025 amendment now explicitly allows charter capital reduction<\/strong> when a company returns contributed capital to holders of redeemable preference shares, either upon request or under conditions specified in the share certificates and company charter. This change strengthens legal certainty and enhances investor confidence by formalizing exit rights.<\/p>\n\nConclusion<\/p>\n\nThe Amended Enterprise Law 2025 marks a significant step forward in aligning Vietnam&rsquo;s corporate governance framework with international standards. By introducing the concept of beneficial ownership, clarifying valuation principles, and addressing gaps in capital management, the law enhances transparency and legal certainty for both domestic and foreign investors.<\/p>\n\nEnterprises should proactively review their internal governance structures, shareholding arrangements, and compliance procedures to ensure alignment with the new requirements.<\/p>\n\n<\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/company.jpg?t=1763102129","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/company.jpg?t=1764900995","tags":["Enterprises law","Investment law"],"count_view":27,"seo_name":"key-updates-under-the-amended-enterprise-law-2025","date_update":1759307608,"date_created_format":1763102200,"meta_title":"Enterprises law, Investment law","meta_desc":"","meta_keyword":"Enterprises law, Investment law in Vietnam","qr_code":"http:\/\/ardens.com.vn\/key-updates-under-the-amended-enterprise-law-2025"},{"id":725160,"name":"Key Regulatory Challenges in Corporate Inversion for Overseas Listing","desc":"","content":"Corporate inversion&mdash;where a Vietnamese company restructures to establish an offshore holding entity for the purpose of listing on a foreign stock exchange&mdash;has become an increasingly strategic move for accessing global capital. However, this process is subject to a complex regulatory framework in Vietnam, particularly under the Law on Investment and its implementing regulations. Below are the key legal and procedural issues that investors must navigate:<\/p>\n\n1. Offshore Investment Registration Certificate (OIRC)<\/strong><\/p>\n\nAny direct offshore investment requires an OIRC issued by the Ministry of Planning and Investment (MPI). In practice, the application process can be lengthy and unpredictable, especially when the investment capital reaches or exceeds VND 20 billion, triggering the need for the State Bank of Vietnam (SBV)&rsquo;s opinion and potentially In-Principle Approval (IPA) from higher authorities.<\/p>\n\n2. In-Principle Approval (IPA) Requirements<\/strong><\/p>\n\nCertain offshore investment projects must obtain IPA from either the National Assembly or the Prime Minister, depending on their nature and scale:<\/p>\n\n<ul>\n\t<li>National Assembly approval<\/strong> is required for:\n\n\t<ul>\n\t\t<li>Projects with offshore investment capital of VND 20,000 billion or more;<\/li>\n\t\t<li>Projects involving special mechanisms or policies requiring legislative endorsement.<\/li>\n\t<\/ul>\n\t<\/li>\n\t<li>Prime Minister approval<\/strong> is required for:<\/li>\n<\/ul>\n\n<ul>\n\t<li>Projects in sensitive sectors (e.g., banking, insurance, securities, media, telecommunications) with capital of VND 400 billion or more;<\/li>\n\t<li>Other projects with offshore investment capital of VND 800 billion or more.<\/li>\n<\/ul>\n\nThe IPA process involves multiple layers of ministerial review and can significantly delay transaction timelines while introducing regulatory uncertainty.<\/p>\n\n3. OIRC Amendments Triggered by Share Transfers<\/strong><\/p>\n\nAny change in offshore investment capital&mdash;including share transfers in the offshore holding company (HoldCo)&mdash;requires an amendment to the OIRC. This applies regardless of whether the offshore entity is listed or unlisted. Consequently, post-listing share transactions may still be subject to Vietnamese regulatory oversight, complicating the expected flexibility of offshore equity dealings.<\/p>\n\n4. Restrictions on Foreign-Invested Enterprises (FIEs)<\/strong><\/p>\n\nFIEs (entities with over 50% foreign ownership) face stricter capital sourcing rules. Unlike local enterprises, FIEs must fund offshore investments solely from their equity capital, excluding amounts already allocated for domestic operations. Retained earnings from offshore projects cannot be reinvested directly but must first be repatriated to Vietnam, limiting reinvestment flexibility.<\/p>\n\n5. Share Swaps and Offshore Structuring<\/strong><\/p>\n\nVietnamese investors may use domestic shares, capital contributions, or investment projects to acquire equity in offshore entities. While this principle is generally accepted, using such assets to establish a new offshore company remains legally ambiguous and uncommon. The OIRC process for share swap structures is more complex and may raise additional legal and procedural hurdles.<\/p>\n\n6. Frequent OIRC Amendment Triggers<\/strong><\/p>\n\nUnder current regulations, even minor changes&mdash;such as project location, reinvestment of retained earnings, or adjustments to investment capital&mdash;can trigger the need to amend the OIRC. For projects requiring IPA, this may involve renewed approval from the National Assembly or Prime Minister. For others, MPI approval is required, often with input from SBV and other authorities, adding to the administrative burden.<\/p>\n\n7. Ongoing Reporting and Compliance Obligations<\/strong><\/p>\n\nInvestors must comply with extensive post-licensing requirements, including:<\/p>\n\n<ul>\n\t<li>Reporting to MPI, SBV, MOF, and Vietnam&rsquo;s overseas representative offices;<\/li>\n\t<li>Submitting reports after receiving foreign investment approval;<\/li>\n\t<li>Quarterly and annual reports;<\/li>\n\t<li>Reports following tax finalization in the host country.<\/li>\n<\/ul>\n\n8. Profit Repatriation Requirements<\/strong><\/p>\n\nProfits from offshore investments must be repatriated to Vietnam within six months of the host country&rsquo;s tax finalization report, unless retained for reinvestment. Any delay must be pre-approved by MPI and SBV and must not exceed 18 months. Reinvestment of profits requires either an OIRC amendment or a new OIRC if applied to a new project.<\/p>\n\nConclusion<\/strong><\/p>\n\nWhile corporate inversion offers strategic advantages for overseas listing, Vietnamese investors must carefully assess the regulatory landscape. From OIRC procedures and IPA thresholds to capital sourcing and post-investment obligations, each step involves legal complexity and potential delays. Early planning and proactive legal structuring are essential to mitigate risks and ensure compliance.<\/p>\n\n<\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/chung%20khoan.jpg","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/chung%20khoan.jpg","tags":["Oversea listing"],"count_view":23,"seo_name":"key-regulatory-challenges-in-corporate-inversion-for-overseas-listing","date_update":1763108122,"date_created_format":1763101810,"meta_title":"","meta_desc":"","meta_keyword":"Oversea listing from Vietnam","qr_code":"http:\/\/ardens.com.vn\/key-regulatory-challenges-in-corporate-inversion-for-overseas-listing"},{"id":725159,"name":"Non-Solicitation of Employees in Commercial and Employment Contracts under Vietnamese Law","desc":"","content":"<\/p>\n\n1. Non-Solicitation Clauses in Commercial Contracts<\/strong><\/p>\n\nUnder Vietnamese law, non-solicitation of employee clauses&mdash;where parties agree not to poach or recruit each other&#39;s employees&mdash;are generally permissible when included in commercial contracts. There is no statutory prohibition against such provisions in the context of business-to-business agreements. In fact, the Civil Code of Vietnam affirms that any agreement or commitment between parties is legally valid and binding, provided it does not contravene the law or violate social ethics.<\/p>\n\nFrom a practical standpoint, non-solicitation clauses are commonly found in various commercial arrangements, such as service contracts, joint ventures, outsourcing agreements, and strategic partnerships. These clauses are often used to protect human resources and prevent unfair competition, especially in industries where talent mobility is high.<\/p>\n\nBased on our professional experience, we have not encountered any court decisions in Vietnam that invalidate non-solicitation clauses in commercial contracts. This suggests that, in practice, such provisions are generally respected and enforceable, assuming they are clearly drafted and mutually agreed upon.<\/p>\n\n2. Non-Solicitation Clauses in Employment Relationships<\/strong><\/p>\n\nThe legal treatment of non-solicitation clauses becomes more nuanced when they are applied within the context of employment relationships&mdash;specifically between an employer and its employees. In such cases, it is advisable to include the non-solicitation clause in a separate agreement (such as a non-disclosure agreement or post-employment covenant), rather than embedding it directly within the labor contract.<\/p>\n\nThis distinction is important because labor contracts are governed by the Labor Code, which prioritizes the protection of employee rights. If a non-solicitation clause is inserted into a labor contract, it may be subject to scrutiny under labor law principles, particularly the employee&rsquo;s statutory right to freely choose employment and work location, as guaranteed by Vietnamese labor legislation.<\/p>\n\nBy contrast, when the non-solicitation clause is executed as part of a separate civil agreement&mdash;outside the scope of the labor contract&mdash;it is treated under the Civil Code framework. This allows the parties greater flexibility to negotiate and define the terms, provided the agreement does not breach legal prohibitions or offend public morality. This approach has been tested and upheld by Vietnamese courts, including in a published court precedent, which recognized the validity of such civil agreements between employers and employees.<\/p>\n\nConclusion<\/strong><\/p>\n\nIn summary, non-solicitation clauses are legally viable in Vietnam when properly structured. In commercial contracts, they are widely accepted and enforceable. In employment contexts, careful drafting and separation from the labor contract are essential to ensure compliance with labor laws and to preserve enforceability. As always, legal advice should be sought to tailor these clauses to the specific business context and to mitigate potential risks.<\/p>\n\n<\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/lao%20dong.jpg","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/lao%20dong.jpg","tags":["employment law"],"count_view":43,"seo_name":"non-solicitation-of-employees-in-commercial-and-employment-contracts-under-vietnamese-law","date_update":1740816922,"date_created_format":1763101427,"meta_title":"employment law","meta_desc":"","meta_keyword":"employment law","qr_code":"http:\/\/ardens.com.vn\/non-solicitation-of-employees-in-commercial-and-employment-contracts-under-vietnamese-law"},{"id":725158,"name":"Clarifying the Scope of Small-Scale Real Estate Business under the 2023 Law and Decree 96","desc":"","content":"Under the Law on Real Estate Business, entities and individuals wishing to engage in real estate activities must establish a business enterprise, cooperative, or cooperative union with registered real estate business lines&mdash;except in cases classified as &ldquo;small-scale business.&rdquo;<\/p>\n\nWhile the concept of &ldquo;small-scale business&rdquo; is not new&mdash;it was introduced under the previous law&mdash;the updated Law on Real Estate Business 2023, along with its implementing regulation, Decree No. 96\/2024\/ND-CP (&ldquo;Decree 96&rdquo;), offers more detailed guidance on its scope and application.<\/p>\n\nSpecifically, the law categorizes small-scale business into two distinct groups, each subject to different eligibility criteria:<\/p>\n\n(a)<\/strong> Individuals conducting small-scale real estate transactions; and \n(b)<\/strong> Organizations or individuals selling, leasing, or lease-purchasing houses, buildings, or floor space not for business purposes, or doing so below a defined threshold (&ldquo;Below Small-Scale Business&rdquo;).<\/p>\n\nAccording to Article 7.1 of Decree 96, individuals under category (a) must meet the following conditions:<\/p>\n\n<ul>\n\t<li>(i)<\/strong> Their activities must not trigger the requirement to establish an investment project under construction and housing laws;<\/li>\n\t<li>(ii)<\/strong> The value of each contract must not exceed VND 300 billion (&ldquo;Value Threshold&rdquo;);<\/li>\n\t<li>(iii)<\/strong> The number of transactions must not exceed 10 per year. Notably, if only one transaction is conducted annually, the Value Threshold does not apply.<\/li>\n<\/ul>\n\nHowever, the interpretation of condition (i) remains unclear. Articles 30.2, 54, and 57 of the Housing Law suggest that individuals may construct houses for sale, lease, or hire-purchase provided the projects do not fall into the following categories:<\/p>\n\n<ul>\n\t<li>Multi-story houses (two floors or more) with apartments designed for sale, lease-purchase, or rental;<\/li>\n\t<li>Multi-story houses with 20 or more rental apartments.<\/li>\n<\/ul>\n\nThis interpretation, however, is subject to debate and has yet to be confirmed in practice, leaving uncertainty around when an individual&rsquo;s housing project would require formal investment approval.<\/p>\n\nIn addition to condition (i), individuals must also comply with the Value Threshold and transaction limit. Yet, ambiguity remains around the definition of &ldquo;10 transactions&rdquo;&mdash;whether it refers to contracts, buyers, or other metrics&mdash;leaving room for administrative discretion.<\/p>\n\nFor category (b), the criteria are similar but differentiated between individuals and organizations:<\/p>\n\n<ul>\n\t<li>Individuals<\/strong> must not be subject to investment project requirements under construction and housing laws;<\/li>\n\t<li>Organizations<\/strong> must ensure each contract does not exceed VND 300 billion and must limit transactions to no more than 10 per year. Again, if only one transaction occurs annually, the Value Threshold is waived.<\/li>\n<\/ul>\n\nThe uncertainties surrounding these provisions mirror those discussed under category (a). As the new law and Decree 96 have only recently come into force, many aspects remain untested. It is therefore crucial to closely monitor how regulatory authorities interpret and enforce these rules in practice<\/p>\n\n<\/p>\n","image_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/files\/real%20estate%202.jpg","image_thumb_url":"http:\/\/ardens.com.vn\/datafiles\/69122\/upload\/thumb_files\/real%20estate%202.jpg","tags":["Real estate law in Vietnam"],"count_view":35,"seo_name":"clarifying-the-scope-of-small-scale-real-estate-business-under-the-2023-law-and-decree-96","date_update":1763108122,"date_created_format":1763101166,"meta_title":"Real estate law in Vietnam","meta_desc":"","meta_keyword":"Real estate law in Vietnam","qr_code":"http:\/\/ardens.com.vn\/clarifying-the-scope-of-small-scale-real-estate-business-under-the-2023-law-and-decree-96"}],"content_pagging":{"firstCurrentItem":1,"lastCurrentItem":6,"total":8,"limit":6,"currentPage":1,"total_page":2,"pages":[{"active":false,"disable":true,"type":"first","page":1,"url":"javascript:void(0)"},{"active":false,"disable":true,"type":"prev","page":1,"url":"javascript:void(0)"},{"active":true,"disable":false,"type":"page","page":1,"url":"javascript:void(0)"},{"active":false,"disable":false,"type":"page","page":2,"url":"http:\/\/ardens.com.vn\/legal-updates?check_timer=1&check_type=0&page=2"},{"active":false,"disable":false,"type":"next","page":2,"url":"http:\/\/ardens.com.vn\/legal-updates?check_timer=1&check_type=0&page=2"},{"active":false,"disable":false,"type":"last","page":2,"url":"http:\/\/ardens.com.vn\/legal-updates?check_timer=1&check_type=0&page=2"}]}},"widget_14845847":{"content_data":{"content":"More"}},"widget_14845982":{"content_data":{"content":"Trang Binh Law Company Limited (Ardens) is a law firm in&nbsp;Vietnam, established and operating under the Operating License No.: 41.02.4548\/TP\/DKHD issued by the Department of Justice of Ho Chi Minh City,&nbsp;Vietnam<\/p>\n"}},"widget_14845984":{"content_data":{"content":"contact"}},"widget_14845988":{"content_data":{"content":"newsletters"}},"widget_14845991":{"content_data":{"content":"Register"}},"widget_14827393":{"content_data":{"content":""}},"widget_14827395":{"content_data":{"content":"Send contact information"}},"widget_14827409":{"content_data":{"content":"Send<\/span>"}},"widget_14827410":{"content_data":{"content":"Reset Form<\/span>"}},"category_desc":"","title_page":"Legal updates"}