New regulations on industrial zones in Vietnam

On 22 May 2018, the Government issued Decree 82/2018 on industrial zones and economic zones in Vietnam. Decree 82/2018 replaces Decree 29/2008 as amended from 10 July 2018. The salient points of Decree 82/2018 are as follows:

  • An economic zone located in an area entitled to investment incentive policies is now entitled to be regarded as an area facing extreme socio-economic difficulties.
  • Decree 82/2018 introduces three new kinds of industrial zones which are supporting industrial zone, eco-industrial zone, and industrial-urban-service zone. Certain investment incentives will be available to supporting industrial zones and eco-industrial zones (e.g., land rental exemption, soft loans, or maximum land lease term). An industrial-urban-service area may include a residential and service area which must not exceed one third of the area size of the industrial zone. In addition, an exporting processing zone is now regarded as a type of industrial zone instead of being classified as a separate type of zone.
  • The amended definition of export processing enterprise (EPE) seems to suggest that an EPE does not need to export all of its products. Instead, an EPE only needs to be specializing in manufacturing exported products.
  • Decree 82/2018 allows an industrial zone to have separate dwelling facilities for foreign managers, chief officers and experts.

This post is contributed by Ha Kieu Anh, a trainee at Venture North Law.

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Written by Nguyen Quang Vu On In ,

New Amendments to Business Registration Regulations for Companies in Vietnam

A new Decree (Decree 108/2018) was issued on 23 August 2018 to provide various amendments to the existing business registration regulations under Decree 78/2015. Decree 108/2018 will take effect from 10 November 2018. Here are some notable changes:

  • Decree 108/2018 makes it clear, which is not in Decree 78/2018, that the following documents in the registration application are not required to have company stamp on them: enterprise registration application; notice of changes to enterprise registration; and decision, resolution, and meeting minutes.


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Vietnam’s New Cybersecurity Law 2018

A new Law on Cybersecurity (Luật an ninh mạng) (the CSL 2018) will come into effect from 1 January 2019 in Vietnam. Not only providing measures to secure the cyber-environment which to some extent has been regulated by the Law on Cyber-information Safety dated 19 November 2015, the CSL 2018 also includes various provisions to control the contents posted or published on the cyber-network. Below are some salient issues of the CSL 2018.

Scope of the CSL 2018

The CSL 2018 applies to all agencies, organizations and individuals involving in the protection of cybersecurity, which is broadly defined as the assurance that activities in cyberspace not causing harm to the national security, social order and safety, lawful rights and interests of agencies, organizations and individuals. In particular, the CSL 2018 will apply to overseas organisations, which have users residing in Vietnam such as Google or Facebook.

The CSL 2018 covers all networks of IT infrastructure, telecommunication, Internet, computer systems, databases, information processing, storage and controlling systems, and regulates activities of every enterprise providing services in cyberspace and Internet users including e-commerce, websites, online forums, social networking and blogs.

Operators of information system (Chủ quản hệ thống thông tin)

The CSL 2018 imposes various obligations on an operator of an information system. Under the  Law on Cyber-information Safety according to which, an operators of information systems means any agencies, organizations or individuals having directly managing authority to an information system.

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Vietnam’s new Competition Law 2018

A new Law on Competition (Competition Law 2018) will take effect from 1 July 2019 in Vietnam. Some key changes in the Competition Law 2018 are as follows:

  • Broader scope of application: The Competition Law 2018 now governs any activities whether by Vietnamese or foreign entity or individual which have or may have the “competition restraining impact” to Vietnam market. Competition restraining impact means impact which excludes, reduces, distorts or hinders competition in the market. Under the Competition Law 2018, the competition authority of Vietnam now has clear authority to deal with offshore activities and transactions which has impact on Vietnam market. In addition, the Competition Law 2018 now also apply to public service units such as hospitals, or schools which are technically not enterprises.

  • Besides the principle of honesty, companies are required to compete with each other in accordance with the principles of justice and fairness.

  • Relationship with other laws: Contrary to the old competition law, the new Competition Law 2018 will not prevail other laws in case such other laws have regulations on action in restraints of competition, form of economic concentration, activities of and dealing with unfair competition.

  • Under the new Competition Law 2018, a State agency is prohibited not only from forcing but also from “requesting or recommending” enterprises or individuals or organisations to perform or not to produce and sell specific goods, provide and use specific service, or produce and sell goods to or provide and use services of specific enterprises.

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Written by Nguyen Quang Vu On