Waiver Of Refund Guarantees For House Purchase Contracts

Under the Law on Real Estate 2014, a real estate developer must provide a bank guarantee to any house buyer to secure for the developer’s obligations to refund all advance payment received from the buyer if the developer fails to deliver the house to such buyers on time. The refund guarantee is intended to provide additional protection to house buyers but it also adds additional costs to the transaction. There are several structures for a developer and a house buyer may employ to avoid the requirement for a refund guarantee. But each of the structures carry certain legal risks. In particular,

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Written by Nguyen Quang Vu On In

Acquisition Registration in Vietnam – Scope of Application

Under the Investment Law 2014 and Decree 118/2015, an Acquisition Registration will be required:

  • if a foreign investor or a deemed foreign investor acquires any percentage of ownership interest in a target company, which involves in business subject to a FIE Condition; or
  • if a foreign investor or a deemed foreign investor acquires ownership interest in a target company, which does not involve in any business subject to a FIE Condition but the proposed acquisition results in (1) the aggregate ownership interest held by foreign investors or Deemed Foreign Investors in the target company being equal to or exceeding 51%; or (2) the aggregate ownership interest held by foreign investors or deemed foreign investors in the target company, which already exceeds 51%, increasing.
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Written by Nguyen Quang Vu On In ,

Working overtime in Vietnam

Some basic rules about working overtime in Vietnam are:

  • Normal working time is limited to 8 hours per day and 48 hours per week.
  • The aggregate overtime should not exceed 300 hours per year.
  • Night working time is from 22:00 to 6:00.
  • Overtime payment is exempt from personal income tax.

The table below provides for the overtime rate that an employer must pay an employee if the employee is working overtime.  The rate is calculated over salary paid during normal working hour.

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Written by Nguyen Quang Vu On In