Vietnam: Key Changes in Draft Telecoms Law regulating Data Centers, Cloud Computing, and Over-The-Top (OTT) Communication Services

The National Assembly of Vietnam is set to discuss the Draft Telecoms Law in May 2023 and finalize it in October 2023. The proposed law aims to expand the coverage of the existing legislation to include IoT devices, data centers, cloud computing businesses, and OTT communication services. It is worth noting that the draft law also applies extraterritorially to these new services.

Some of the noteworthy new requirements under the draft Telecoms Law include:

  • The definition of OTT communication services (also called “information communication service not using telecom number storage”) will only include standalone messaging or calling apps. Messaging or calling functions of social networks that are not essential to the service will not be included.
  • The draft law’s wording suggests that only standalone OTT messaging or calling apps will be viewed as OTT communication service. In other words, OTT messaging or calling functions of a social network, which are non-essential functions of another service, will not fall into this category.
  • Offshore service providers will be required to notify the Ministry of Information and Communications (MIC) of their contact point, notify users of emergency numbers, ensure access to emergency numbers, and waive fees for calls to emergency numbers.
  • The draft law considers OTT communication services as a telecom service. Therefore, any cross-border provision of telecom services must be based on a commercial agreement with a licensed Vietnamese telecom provider (Foreign service providers will have to contract with a local entity to provide services across borders into Vietnam). Additionally, the Vietnamese telecom provider that contracting with a foreign service provider will have to register the agreement form with a competent state authority.
  • Service providers of data center and cloud computing services will have to register through an online portal of the MIC and comply with a set of requirements that will be later specified by the Government. Other notable obligations include protecting users’ information, removing illegal content, and reporting illegal activities such as service abuse to local state agencies.

Implications for foreign service providers

Draft Telecoms Law, once passed, will have extra-territorial reach, i.e., it will impose obligations to not only domestic but also foreign service providers. Once brought into force, it can be expected to raise more compliance costs for the regulated businesses. The draft Law foresees several provisions that will require further guidance by the Government (via decrees and circulars) once the law is passed.

Update on Regulations of Personal Data Protection in Vietnam and What Local/Offshore Companies/Platforms need to know

The draft Personal Data Protection Decree (PDPD) was introduced in 2021 and was hailed as a significant step towards data privacy regulation in Vietnam, with the potential to be the Vietnamese counterpart to the GDPR as a new standard for data privacy in Vietnam.

Although the Vietnamese legal landscape on privacy has been shaped by various general and sector-specific rules such as the Civil Code, Criminal Code, Law on Information Technology, Law on Cyber Information Security, Law on Cybersecurity, and Decree 52 on E-commerce, these regulations lack uniformity and are potentially outdated, struggling to keep up with the pace of technological advancement. The introduction of the PDPD is thus much needed.

The PDPD is about to reach its final phase, more than two years since the first draft version came to public awareness. The legislative history of the PDPD highlights its critical and sensitive nature in the eyes of the Vietnamese policymakers.

Legislative history:

  • February 2021: The Ministry of Public Security published the first draft version of the PDPD for public consultation.
  • September 2021: A revised version of the draft PDPD was submitted to the Ministry of Justice for appraisal.
  • From October 2021 to early 2023: The draft PDPD was circulated back and forth between the Government, the National Assembly Standing Committee (NASC) and other State agencies for comments and approval.
  • February 2023 to date: The draft PDPD has recently obtained the NASC’s greenlight and is under the final technical process before being officially issued by the Government.


The prolonged legislative process can be attributed to the colossal impact of the decree on the rights of individuals, which necessitates thorough and careful consideration. Among other things, lawmakers have deliberated on conditions for cross-border data transfer, sensitive data processing, requirements for appointing a data protection officer and documenting a data processing impact assessment, etc. The PDPD is expected to be officialized in March or April 2023, and it will be the legal basis for the promulgation of the draft Decree on Penalties for Administrative Violations in Cybersecurity (PAVCD). The PAVCD can trigger the imposition of a GDPR-type penalty calculated based on corporate income for PDPD violation.

It is highly suggested that foreign companies promptly comply with applicable requirements regarding personal data protection to avoid the risk of facing adverse enforcement actions in future. In case adequate compliance is yet to be feasible, an exchange of notice with a competent authority explaining the situation will be preferred.

ECOVIS Vietnam Law named Attorney Nguyen Nhuan as Partner of the Firm

Ho Chi Minh City: ECOVIS Vietnam Law Firm is pleased to announce the promotion of Attorney Nguyen Nhuan to the position of Partner with the firm.

Attorney Nguyen Nhuan focus his practice in corporate, commerce and technology law. He was in charge of a number of FDI projects in the fields of energy, e-commerce, logistics, FinTech, EdTech, etc.

“We are delighted to have Nguyen Nhuan become a Partner with the firm. Nhuan has dedicated himself to the development of the firm, showing his exceptional abilities in solving complex legal matters for our clients.” said Mr. Vu Manh Quynh, Managing Partner of ECOVIS Vietnam Law.

Nguyen Nhuan graduated from the University of Law in Ho Chi Minh City. He is the member of the Bar of Ho Chi Minh City and the Bar Federation of Vietnam.

About ECOVIS Vietnam Law Firm:

ECOVIS Vietnam Law is the member of Ecovis International, a leading global consulting firm with its origins in Continental Europe. Ecovis International has around 9,300 people operating in 80 countries. Its consulting focus and core competencies lie in the areas of legal advice, accounting, auditing, tax and business consultation. In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.

ECOVIS Vietnam Law delivers full-services with market-leading strengths in foreign direct investment, financial services, real estate and technology sectors. Our services cover the full range of foreign investment, cross border business, structuring, financing, mergers & acquisitions, corporate governance and dispute resolutions.

ECOVIS Vietnam Law is a member of the German Business Association, the European Chambers of Commerce in Vietnam.

Economy in Vietnam and opportunities for foreign investors

Vietnam is attracting the attention of investors in the whole world when its market’s potential is highly appreciated by experts and national policies in the coming time brings promising development opportunities for enterprises. With the complicated situation of coronavirus pandemic, Vietnam even has become a more attractive choice for foreign investors thanks to excellent pandemic control and government support measures. 2021 is expected to be a year of spectacular recovery and development of Vietnam’s post-pandemic economy.

1. Vietnam’s economy in 2021

In 2021, the outbreak of Covid-19 pandemic has gravely wounded many countries’ economies leading to the global economic recession. Even while the economies are recovering around the end of 2020, the new waves of Covid-19 infections still threaten this recovery process.

Due to the economic integration process, Vietnam’s economy was not able to avoid the negative impacts and experienced a sharp decrease in most economic indicators. However, Vietnam still maintains a positive GDP growth of 2,91% and the inflation rate is within the allowed level of National Assembly. Vietnam’s stock market in the Covid-19 pandemic also recovered strongly, liquidity increased and was joined by new investors, raising capital for the economy of the stock market rose of 20%.

To obtain the above achievements, in addition to disease prevention and control which are timely, drastic and innovative, the Government used different fiscal and monetary policies to help private sectors overcome difficulties and boost the economic recovery momentum such as increasing the public spending, the disbursement of public, …

The positive economic outlook forecasts
Many forecasts of the largest financial institutions in the world predict that Vietnam’s economy will recover from 6% to 7% in 2021. Vietnam is assessed to experience positive economic growth based on the following factors: Firstly, the Government will keep promoting public investment and spending, implementing monetary – financial measures such as tax reduction, tax deferral, etc. in order to support enterprises and citizens to recover manufacturing and business. Secondly, the business environment in Vietnam in 2021 will be significantly improved as many laws come into effect (Enterprise Law, Investment Law, Environmental protection law, …). Vietnam has also concluded trade agreements with preferential commitments for investors and boost activities in the market. In addition, Vietnamese enterprises are expected to show their adaptability in the prolonged pandemic situation and maintain the supply chain stability.

In general, Vietnam still maintains macroeconomic stability and is in a V-shaped recovery trend. The Government set dual goals from the beginning of 2021 that protecting people’s health is the top priority task, at the same time, ensuring the normal social-economic activities, being not panic but still remaining vigilant. Vietnam’s economic outlook in the coming time looks bright.

2. Vietnam’s economic prospects for foreign investors

The US-China trade tension has led to the movement of capital among regions and countries, especially the tendency of capital flowing of international enterprises out of China. Currently, several of the world’s largest corporations plan to shift their production chain to Vietnam. For instance, LG Electronics moved its entire smartphone production line from South Korea to the northern city of Hai Phong, Vietnam; Panasonic Appliances Vietnam is preparing for being transferred to manufacture high-capacity refrigerators and large-capacity vertical washing machines from Thailand. Due to the impacts of the Covid-19 pandemic, this process occurs more vigorously. Many large contract manufacturers for electronics companies such as Foxconn, Luxshare, Pegatron, etc. also have plans to expand their investment in Vietnam.

FDI flows are expected to considerably increase when the Covid-19 pandemic is well-controlled, which makes the year 2021 potential for FDI flows. Besides the movement of capital flows of large investors, small-scale FDI projects will take advantage of the free trade agreements which Vietnam has signed to continue to enter Vietnam this year.

Regarding investment opportunities, the process of supply chain shifting from abroad, the industrialization and urbanization in the future are the factors supporting the strong development of the power industry, production of basic building materials and agricultural product manufacturing industry. This is the industry group benefiting from the promotion of the Government’s public investment. In addition, enterprises providing auxiliary services for the trade flows between Vietnam and other countries within the framework of the signed free trade agreements are also attractive targets for investors, the group of ports – logistics is a typical example. Many opportunities are opened for enterprises which apply new technologies thanks to the Government’s supporting policies and tax incentives for investors. Resolution No. 52 on digital transformation shows that the application of more advanced technology to production, business and the digitization in Vietnam’s economy is inevitable and irreversible.

The final highlight in 2021 is enterprises that have “their own sectors” related to looking for foreign strategic partners, mergers and acquisitions and new listings …

3. The reasons for FDI companies to invest in Vietnam:

Vietnam has become one of the attractive investment destination for foreign investors due to the following outstanding factors:

Firstly, Vietnam has deeply and broadly integrated into the world economy through continuously signing trade agreements with major countries and regions all over the world. These agreements will provide benefits to the market in general and foreign investors in particular. Specifically, when the EVFTA between Vietnam and the European Union takes effect, it will apply the tariff reduction for goods imported and exported between Vietnam and member countries between the parties together with a 10-year roadmap for tariff elimination. Vietnam also committed to creating a more favorable environment for the sector of trade in services and investment such as banking services, insurance, and telecommunications. In order to develop e-commerce between Vietnam and the EU, electronic transactions will be exempt from import tax. In addition, the Regional Comprehensive Economic Partnership Agreement (“RCEP”) signed between the members of ASEAN and six FTA partners: India, China, Japan, South Korea, Australia, New Zealand also made specific commitments on trade liberalization in goods, implementing the non-tariff barrier measures. Under this Agreement, customs procedures are applied in a simple and transparent manner. The agreement is likely to create the largest free trade area in the world and establish the new supply chains due to its commitment to opening markets for goods, services, investment, application of Rule of Origin in the geographical region of RCEP, creating an export market which is stable, long-term for ASEAN countries. In addition, investors also have accessed favorable conditions when Vietnam has signed Double Taxation Avoidance Agreements to exempt or reduce tax payable in Vietnam for residents in the member countries or deduct the tax amount paid in member countries by residents in Vietnam.

Secondly, by a variety of regulations which benefit enterprises have been changed and enacted in the New Enterprise Law, New Investment Law and Resolution 52 on digital transformation of the economy, administrative procedures are simplified and investment conditions are also reduced. The Government will decide the application of special incentives and investment supports to encourage investment projects which have great economic impacts. Technology development policies are concerned and promoted by the Government, investment incentives are applied to some sectors.

Thirdly, Vietnam is a potential and large market with political stability and is one of the most successful countries in the world at containing pandemic. With a population of nearly 100 million people, exploiting the domestic market of Vietnam is also considered as a potential business and investment strategy. In particular, while the tightening of trading conditions is applied in many countries due to the political changes and the impact of epidemics, enterprises can take advantage of the domestic market to mitigate the negative effects from outside.

Fourthly, the labor force of Vietnam is young, abundant and well-qualified while the labor cost is considered to be quite competitive in the region.

Fifthly, Vietnam is strategically located in the center of Asia, the flight time from Vietnam to major economic centers such as China, Singapore, Japan, South Korea, Taiwan and ASEAN countries is very short;

The Vietnam market has gradually attracted the attention and interest of foreign investors around the world due to its strengths in economy, society and politics. Therefore, Vietnam will be a worthy destination for investors and FDI companies to invest in at present.

Policy on change and investment of infrastructure of Ho Chi Minh City and the satellite provinces

Ho Chi Minh City and the provinces: Dong Nai, Binh Duong, Long An, Ba Ria – Vung Tau of the southern key economic region are now urban areas focused on investment and development by the Government of Vietnam; make a target to become the most dynamic economic region in the country with the population of this urban area expected to reach 20-22 million people by 2020, the proportion of the urban population is expected to be about 77% of the total population.

In order to meet the needs of socio-economic development, contribute to the urban environment landscape and improve the quality of life for the people, the Government of Vietnam has set out policies on change and investment of infrastructure of Ho Chi Minh City and satellite provinces in the period 2020-2030.

1. Objectives:

  • Developing a modern and synchronous transport infrastructure system;
  • Reduce traffic congestion, reduce traffic accidents;
  • Have high connectivity, while at the same time having regional, inter-regional and local connectivity;
  • Have links between modes of transport, which will create a smooth and convenient transportation network.

2. Some important infrastructure investment projects:

2.1. Ring Road No. 3:

Be an urban expressway project for vehicles with a speed of 100 km/h, with a total length of nearly 97.7 km, passing through the territory of 08 districts in 04 provinces and cities: Ho Chi Minh City (District 9, Cu Chi, Hoc Mon and Binh Chanh); Dong Nai Province (Nhon Trach); Binh Duong province (Di An, Thuan An); Long An Province (Ben Luc). [1]

Objectives: Connecting regions, connecting industrial parks and urban areas of the southern key economic region; settling cargo transportation, reducing pressure on inner-city routes, improving circulation through radial road junctions, promoting socio-economic development of the whole region.
Project status: Under construction.

According to the progress approved by the Prime Minister on September 28, 2011, the section of Ring Road No. 3 going through the provinces of Dong Nai, Binh Duong, Long An, Ho Chi Minh City will be completed before 2020, but up to now, only 16.3 km of the section passing through Binh Duong province is completed (accounting for 17.92%). Meanwhile, the remaining 3 sections, including the Tan Van – Nhon Trach (Dong Nai), is 34.3km long; Binh Chuan (Binh Duong) – Highway 22 (HCMC) is 17.5km long; 29.2km long section of national highway 22 – Ben Luc (Long An) has not been constructed yet.

2.2. Ring Road No. 4:

Be an urban expressway project for vehicles with a speed of 100 km/h with a total length of 197.6 km, passing through 12 districts in 05 provinces and cities: Ba Ria – Vung Tau Province (Tan Cang); Dong Nai province (Long Thanh, Trang Bom and Vinh Cuu); Binh Duong province (Tan Uyen and Ben Cat); Ho Chi Minh City (Cu Chi and Nha Be); Long An province (Duc Hoa, Ben Luc, Can Duoc, Can Giuoc). [2]

Objectives: to clear the traffic flow from the southwestern region, reduce the load and limit traffic congestion on the inner-city roads of Ho Chi Minh City; creating favorable conditions to connect provinces in the southern key economic region, connecting the Mekong Delta region with the Southeast region with the Hiep Phuoc port area, Long An port, contributing to promoting traffic goods, facilitating the development of port services.
Project status: Under construction.

2.3. Urban railway:

Be a project system of roads including 8 urban railway lines with a total length of 169 km, 1 tram line 12.8 km and 2 single-track lines 43.7 km long. [3]

08 urban railway lines include:

  • Route 1: Ben Thanh – Suoi Tien;
  • Route 2: Northwest Urban (Cu Chi) – Highway 22 – Tay Ninh Bus Station – Truong Chinh – (branch to Tham Luong Depot) – Cach Mang Thang Tam – Pham Hong Thai – Le Lai – Ben Thanh – Thu Thiem;
  • Route 3a: Ben Thanh – Pham Ngu Lao – Cong Hoa 6-way crossroads – Hung Vuong – Hong Bang – Kinh Duong Vuong – Tan Kien Depot – Tan Kien station;
  • Route 3b: Cong Hoa 6-way crossroad – Nguyen Thi Minh Khai – Xo Viet Nghe Tinh – Highway 13 – Hiep Binh Phuoc;
  • Route 4: Thanh Xuan – Ha Huy Giap – Nguyen Oanh – Nguyen Kiem – Phan Dinh Phung – Hai Ba Trung – Ben Thanh – Nguyen Thai Hoc – Don Dan – Nguyen Huu Tho – Hiep Phuoc Urban Area;
  • Route 4b: Gia Dinh Park Station (Line 4) – Nguyen Thai Son – Hong Ha – Tan Son Nhat International Airport – Truong Son – Hoang Van Thu Park – Lang Cha Ca Station (Line 5);
  • Route 5: New Giuoc bus station – Highway 50 – Tung Thien Vuong – Phu Dong Thien Vuong – Ly Thuong Kiet – Hoang Van Thu – Phan Dang Luu – Bach Dang – Dien Bien Phu – Saigon bridge;
  • Route 6: Ba Queo – Au Co – Luy Ban Bich – Tan Hoa Dong – Phu Lam Roundabout.

Project status: Under construction, expected to run the whole Route No. 1 by the end of 2021 and commercial operation from 2022.

2.4. Can Gio Bridge and Cat Lai Bridge:

Can Gio Bridge Project is an investment project to build a bridge over Soai Rap river, connecting the two districts of Nha Be and Can Gio in Ho Chi Minh City.

Objective: to replace Binh Khanh ferry, connect the southern city area with Can Gio district, meet the traffic demand in the area and facilitate the promotion and development of the project of sea reclamation and urban tourism. Can Gio.

Cat Lai Bridge Project is an investment project to build a bridge over Dong Nai River, connecting District 2, Ho Chi Minh City with Nhon Trach District, Dong Nai Province.

Objective: to replace and alleviate traffic congestion at Cat Lai ferry and the development of Nhon Trach district will develop rapidly.
Project status: on-going, expected to be completed by 2025

2.5. Long Thanh airport:

Long Thanh airport project is an investment project to build an international airport in Long Thanh district, Dong Nai province, about 40 km east of Ho Chi Minh City; There are 4 large and modern terminals with a total capacity of serving 100 million passengers/year. [4]

Objective: To take care of 80% of the total number of international passengers including transit passengers on international flights and 20% domestic passengers, to reduce congestion at Tan Son Nhat Airport; carry out the transit function in Southeast Asia, able to compete with major airports in the world, can receive A380-800 or equivalent aircraft, with a capacity of 100 million passengers/year and 5 million tons of goods/year.

Project status: Expected to complete and put into operation phase 1 from 2025.

[1] Decision No. 1697/QD-TTg of the Prime Minister dated September 28, 2011 approving the detailed planning of Ring Road 3 – Ho Chi Minh City
[2] Decision No. 1698 / QD-TTG of the Prime Minister dated September 28, 2011 approving the detailed planning of Ring Road 4 – Ho Chi Minh City
[3] Decision No. 568 / QD-TTg of the Prime Minister dated April 8, 2013: Approving the adjustment of transportation development planning of Ho Chi Minh City to 2020 and vision after 2020
[4] Decision No. 909 / QD-TTg of the Prime Minister dated June 14, 2011

Vietnam’s immigration policy – Update on March 2021

1. Continue to postpone immigration approval:

Vietnam will continue to postpone entry for foreigners from 22 March 2020 to limit the spread of COVID-19. However, the Government of Vietnam still allows certain subjects to enter Vietnam when the following conditions are satisfied:

1.1. Subjects that are allowed to enter

  • Foreigners carrying passports for diplomatic and official duty purposes and their family members;
  • Experts, investors, business managers, highly skilled workers and their family members;
  • Foreign students studying in Vietnam;
  • Foreign relatives of Vietnamese citizens;
  • Vietnamese citizens

1.2. Conditions for entry

  • Entry approvals issued by the Provincial People’s Committee and the Immigration Department of Vietnam;
  • Register the quarantine period at designated locations by competent authorities or hotels, accommodation facilities with self-pay expense;
  • A negative certificate of RT-PCR for SARS-CoV-2 issued by a competent medical authority within 03 days prior to boarding;
  • Get an RT-PCR test immediately upon entry at the quarantine site.

2. Centralized quarantine period for at least 14 days

  • Centralized quarantine from 14 days – 21 days after entry;
  • Quarantine at an authorized accommodation establishment;
  • The health authority has the power to make other decisions from time to time.

3. Automatic visa extension

The Immigration Department of Vietnam announces an automatic visa extension until March 31, 2021 for foreigners entering under the visa exemption program, e-visa or tourist visa since the 1st March.

This measure applies to persons who enter Vietnam from March 1, leaving the country without any penalty or paperwork until March 31, 2021.

The Regional Comprehensive Economic Partnership (RCEP – signed on November 25, 2020) and its impacts to Vietnam’s economy.

The RCEP Agreement is considered as the largest free trade agreement in the world, accounting for nearly 30% of global GDP and 30% of the world’s population. The RCEP Agreement is expected to create many new opportunities for businesses in the member countries.

Vietnam is one of the members participating in the discussion and signing of the agreement, along with 9 other ASEAN member countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand) and 5 countries partners (China, Japan, Korea, Australia and New Zealand).

1. Contents of the Agreement:

The RCEP Agreement consists of 20 chapters and appendices with main content on commitments in trade in goods and services, intellectual property, e-commerce and dispute resolution, …

Some important points:

  • Remove according to the roadmap non-tariff barriers, simplify customs procedures;
  • Establish common quarantine and technical standards;
  • Establish general rules of Intellectual Property;
  • Unify and harmonize common rules of origin (Instead of applying 5 sets of rules of origin of the current 5 FTA agreements with partner countries)

2. Impact on the Vietnamese market

RCEP has associated the three major economies in Asia through an FTA (China, Japan and South Korea) and allows to strengthen the regional supply chain for trade in goods.

The implementation of RCEP is expected to bring many benefits to Vietnamese enterprises and enterprises of the signatory countries:

2.1. Benefits for domestic businesses

  • Establish a large, stable and long-term consumer market;
  • Facilitate production scale expansion and export orientation;
  • Create new opportunities for businesses to develop in fields such as telecommunications, information technology, textiles, footwear and agriculture, …
  • Access to the production and export of products sourced from many countries within the block and be able to take advantage of the same preferential tariff rates.
  • Increasing competitiveness of input materials, diverse choices of quality and price
  • Get better protection against non-traditional trademarks and many industrial designs in the region,
  • Online business has been made easier because of the clear legal framework;

2.2. Benefits for foreign investors:

  • Business and investment conditions were loosened, unnecessary procedures were abolished
  • Take advantage of the preferential tariff when exporting into Vietnam market
  • Get better protection against non-traditional trademarks and many industrial designs in the region,…
  • Expand the online business and having a clear legal protection mechanism; …

The new Law on Enterprises and Law on Investment effective from 1 January 2021 and their impacts.

From 2021, foreign investors in Vietnam will do business in a more favorable environment due to the effectiveness of the Law on Enterprise 2020 and the Law on Investment 2020. The new regulations will lead to benefits for enterprises to enter the market as well as govern corporate and protect investors.

1. Law on Enterprise No. 59/2020/QH14

  • Regarding market entry procedures, the Enterprise Law 2020 will remove seal-related procedures and allow enterprise to use and manage seals, use digital seals. Additionally, business registration becomes easier due to a system of completely online application or by post to save time, costs and resources when investors set up enterprises in Viet Nam.
  • Regarding corporate governance, the new Enterprise Law enhances the rights of shareholders by allowing shareholders to sue managers to protect their interests. The requirements for convening the General Meeting of Shareholders are also lowered to protect minority shareholders.
  • The Enterprise Law 2020 allowing the issuance of non-voting depository receipts (NVDRs) has contributed to product diversification for the stock market and expansion of the investment environment for foreign investors when investing in enterprises, especially those in business lines that limit the foreign ownership ratio.

2. Law on Investment No. 61/2020/QH14

  • Some administrative procedures are reformed and simplified. For example: abolishing regulation on the Prime Minister’s approving investment policies for projects with capital size from VND 5,000 billion, simplifying procedures for implementing investment projects, and expanding investor’s autonomy during the project implementation (rights to transfer, merge, consolidate or split the project …)
  • Eliminating 22 conditional business sectors. In addition, foreign investors can easily know their market access conditions according to the list of conditional market access business sectors for foreign investors. When the enterprise is not in a case where the market conditions are required or investors have not yet been allowed to access the market, foreign investors will be able to access the market as domestic investors instead of waiting for state agencies to carry out the procedures to consult the ministries. related departments.
  • Adding a number of occupations, forms and subjects of investment incentives, cases of special investment incentives. The Law on Investment 2020 also sets out the principles and conditions for investors to receive investment incentives that incentives are applied for a limited time and on the basis of project implementation results of investors. Therefore, in order to receive the incentives, investors shall meet the conditions during the incentive period.
  • Concerning about national defence and security issues and environment. When businesses are established in security- sensitive areas, or border towns, coastal areas will be considered security and defence conditions. For projects using outdated technology, potentially causing environmental pollution, resource intensive and project transfer without reimbursement, investment projects will not be extended. Foreign investors, when investing in Vietnam, also need to pay attention to technological and environmental issues to avoid the case of not extending their investment project activities.

With the positive changes in Enterprise Law and the Investment Law, enterprises need to understand and know how to apply the new law effectively, in the right direction, especially in corporate governance to organize operations. effective action and protect the interests of investors. Enterprises also need to pay more attention to the environment, resources and technology when implementing their investment projects.