Changes to long-term visa rules for foreign directors/managers in Vietnamese companies

Under the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, which came into effect on 1 January 2015, a “foreign investor” (nhà đầu tư nước ngoài) may be granted a long-term visa (or temporary resident permit) of up to five years. The problem is, however, that many foreign investors in Vietnam are companies, not individuals. Technically, the individual representatives of such foreign companies are not considered as foreign investors and are therefore not qualified for long-term visas to stay in Vietnam. In the past, individual representatives of foreign companies which invest in Vietnam may obtain a long-term visa on the ground that they enter into Vietnam to implement investment projects. Such regulations are now no longer valid. Accordingly, foreign directors/managers in Vietnamese companies who have obtained a long-term visa on the ground that they are representatives of foreign investors in the Vietnamese companies may now need to obtain a shorter visa on the ground that they are employees or staffs of the Vietnamese companies.

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Updated rules on divestment of State capital in Vietnamese State-owned enterprises

In Decision 58/2016, the new Prime Minister has pushed for much further divestment of State capital in existing State-owned enterprises (SOEs) in various sectors. In general, Decision 58/2016 reduces the industries where the State must maintain a minimum level of ownership interest and, more importantly, publishes a list of about 240 SOEs where the State may sell down its ownership interest by 2020. In comparison with Decision 37/2014:

New choice of foreign governing law in a contract with Vietnamese counterparty

From 1 January 2016, the Civil Code 2015 introduces a new set of rules regarding choice of governing law in a civil contract signed with a Vietnamese counterparty. In particular, parties to a contract in which there is at least one party is foreign individual or foreign “legal person” may agree to choose foreign governing law in the contract except in the following cases, among other things:

Coal import rights of coal-fired power producers in Vietnam.

In Official Letter 2719 in October 2016, the Generate Directorate of Energy (GDE) notifies the General Department of Customs that coal-fired power producers who want to directly import coal must obtain an approval by the Prime Minister. The GDE’s notification relies on two grounds:

Vietnam Business Law