VCI Legal | The Legal Points

VCI LEGAL contributes the Legal Chapter for VIETNAM COUNTRY REPORT 2017 Oxford Business Group Our firm has 4 full versions of the Legal Chapter posted on our website, including: English ,  Vietnamese ,  Japanese  &  Korean . Please feel free to contact us to receive a pdf file of this Legal Chapter.

On 14th November 2016, the Government of Vietnam issued Decree 153/2016/ND-CP providing regional minimum wages applied for employees working under an employment contract (" Decree 153 ") to replace Decree 122/2015/ND-CP dated 14th November 2015. According to Article 3.1 of Decree 153, the regional minimum wages for employees working under an employment contract shall be as follows: For Area I, the regional minimum wage is 3,750,000 VND/month (an increase of 250,000VND); For Area II, the regional minimum salary is 3,320,000 VND/month (an increase of 220,000 VND); For Area III, the regional minimum wage is 2,900,000 VND/month (an increase of 200,000 VND); For Area IV, the regional minimum wage is 2,580,000 VND/month (an increase of 180,000 VND).

On July 1, 2016, the Government issued Decree No. 86/2016/ND-CP setting out regulatory conditions for securities trading and investment enterprises (“ Decree 86 ”). Some notable provisions of Decree 86 are as follows: 1. Certain conditions for foreign organizations to acquire more than 51% of the charter capital of a securities company in Vietnam: (a)      A foreign organization purchasing shares exceeding 51% of the charter capital of a Vietnamese securities company shall seek (i) its own internal approvals and (ii) approvals from the General Meeting of Shareholders, Members’ Board or Owners of Vietnamese securities company to perform such acquisition; (b)     Only owner equity or other legitimate capital funds of the foreign organization is permitted to be used for the share purchase; the acquirer must not be subject to foreign ownership limits provided under the laws of Vietnam 2. Securities companies can be...

Circular No.35/2016/TT-NHNN (“ Circular 35 ”), replacing Circular No. 29/2011/TT-NHNN on safety and confidentiality in the provision of banking services on the internet, was issued by the State Bank of Vietnam on 29th December 2016 and takes effect on 1st July 2017. Circular 35 features some notable changes, as follows: A bank or credit institution’s IT infrastructure which provides Internet Banking (“ IB ”) services shall have intellectual property protection: If there is a failure to provide support, or the service provider is unable to upgrade new versions, there must be a plan for upgrading or replacement. A number of specific technical requirements shall be applied to the network system, communications, security, confidentiality and the IB application. For example, a bank or credit institution shall control the source code of the IB application by implementing minimum checking requirements; and to appoint specific individuals to manage the source code of the IB application;...

On January 16th 2017, the Government issued Decree No. 03/2017/ND-CP (“ Decree 03 ”) on casino business. I.                  Notable regulations under Decree 03 1.                 Vietnamese citizens can gamble in casinos Upon the issuance of Decree 03, Vietnamese are only allowed to play in two casinos in Phu Quoc (Kien Giang) and Van Don (Quang Ninh) under a pilot project. Now, Vietnamese citizens can enter casinos and gamble with certain conditions. 2.                 Certain conditions for Vietnamese players Vietnamese players must satisfy the following legal and financial conditions: (i)                They must be at least 21 years...

Circular 22/2016/TT-BCT (“ Circular 22 ”) was issued on October 3, 2016 come into effect from November 15, 2016 by the Ministry of Industry and Trade to replace Circular 21/2010/TT-BCT, regarding the implementation of origin rules of ASEAN Trade in Goods Agreement (“ ATIGA ” ). Circular 22 was issued within the context of ASEAN countries having agreed on amendments to the origin rules chapter of ATIGA, including:  (i) the list of technology commodities in keeping with the HS codes of 2012 , and (ii)  the C/O issuance and inspection procedures amended for the application of digital C/O (Form D) . In order to include the above international commitments of Vietnam into domestic legal framework, Circular 22 provides the following crucial changes: 1. Appendix IV:  the list of technology commodities is in keeping with the HS codes of 2012. The new list is composed of 441 HS codes, whereas the previous one contained 411 HS codes, ie. there are supplemental 30 HS c...

Dear Sirs and Madames, VCI Legal would like to convey our best regards to you, who have cooperated and worked with us for the past few years and would like to informs you that the telephone codes of Ho Chi Minh City and Hanoi will be changed by adding an extra number “2” in front of the current provincial code started from  June 17, 2017 (this Saturday).  In particular, the detail contacts including phone number and fax number of VCI Legal are changed as follows: Sincerely, About VCI Legal: VCI Legal is an international award-winning, full service business law firm in Vietnam. The firm provides a wide range of advisory services and has gained a strong reputation for successfully handling corporate, commercial, financial and contentious matters. The firm’s practice areas which have been highly recommended by various international magazines and agencies include: Corporate/M&A, Banking and Finance, Capital Markets, Insurance, FDI, cross-border transactions, Comp...

After years of delays & extension of deadlines, on 24 February 2017, the Government issued Decree No. 22/2017/ND-CP ( “Decree 22” ) on commercial mediation, which came into effect on 15 April 2017. Decree No. 22 provides in detail the principles, conditions, and procedures of commercial mediation as an alternative dispute resolution method, as well as the conditions for establishment of mediation centers in Vietnam. This article looks at mediation before Decree 22 was issued and examines the fundamental principles of mediation, the rules of mediation, enforcement of a mediation award and finally, provides some analysis in light of Vietnam’s legal framework. 1. Mediation before the issuance of Decree 22 1.1. In the Court rooms Mediation is mandatory in civil litigation proceedings at the National Court except for civil cases which are excluded if the subject matter relates to State property or is contrary to the laws or social ethics. The mediation award shall be recognized ...