Comparison: Investment inside vs. outside an industrial park/industrial cluster in Vietnam

As Vietnam is on its way to become a new global manufacturing hub, many investors now consider the country as a new destination for their manufacturing business. However, finding the right location to implement the proposed project may be a vexed question.

In general, the following options are available for the investor:

  • Option 1: Acquisition of land inside industrial manufacturing-oriented zones, which include industrial park (IP) and industrial cluster (IC); and

  • Option 2: Acquisition of land outside the industrial manufacturing-oriented zones.

In this article, we discuss and compare the available options based on specific criteria and from both legal and practical perspectives to assist investors in making their best decision.

With respect to the industrial manufacturing-oriented zones, the law distinguishes between IP and IC based on certain criteria. In addition, the legal frameworks applied to investment in the IP and IC may sometimes be different. Accordingly, doing investment inside the IP and IC will be discussed separately as two potential options, where applicable.

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Foreign ownership limits in Business Cooperation Contracts in Vietnam

In certain business sectors (e.g., film projection service, or road transportation services), Vietnam undertakes to allow foreign investors to invest though setting up a joint venture or a business cooperation contracts (BCC) with capital contribution not exceeding certain limits. However, it is not clear if the ownership limit provided in these commitments apply to investment through a joint venture only or to both investment through joint ventures and BCCs.

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Written by Nguyen Quang Vu On In ,

Legal Framework On E-Learning Businesses In Vietnam

The recent years have witnessed a rapid growth of the e-learning market in Vietnam, especially since the Covid-19 outbreak. Despite that, a clear legal framework for e-learning business under Vietnamese laws is still unavailable. This post will discuss some legal issues concerning the provision of e-learning services.

Mode of delivery

In general, e-learning business could be provided to students via two main modes:

  • Non-interactive mode, where students will pay to have access to learning materials prepared by the service providers (e.g., pre-recorded lectures, books, etc.), and there is no live interaction between students and teachers. The students are expected to self-study the materials provided by the service provider; and

  • Interactive mode, where in addition to access to study materials, students will pay to attend online classes held by teachers, and there is live interaction between students and teachers.

    During the Covid-19 pandemic, e-learning via interactive mode has grown substantially and become a favorite choice for students and their parents. However, the legal framework regulating e-learning via interactive remains undeveloped as the laws only regulate education services via traditional methods.

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Written by Nguyen Quang Vu On In ,

New Decree On Industrial Zone In Vietnam

On 28 May 2022, the Government issued Decree 35 on management of industrial zones (IZ) and economic zones (Decree 35/2022) to replace Decree 82/2018 on the same matters (Decree 82/2018). Decree 35/2022 will be in effect from 15 July 2022.

Decree 35 introduces several significant changes as compared with Decree 82/2018 which are expected to create a more simplified legal framework for investors making investment in IZ projects.

1. New models of IZ

Decree 35/2022 introduces two new models of IZ, including:

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