Unclear de-listing grounds for listed companies in Vietnam

Under Decree 155/2020, from 1 January 2022, a listed company will be delisted if the financial statements of such company for three consecutive years are qualified by the company’s auditor. This is a new de-listing ground. Recently, the Ho Chi Minh City Stock Exchange (HSX) has decided to delist a company whose audited financial statements of 2019, 2020, and 2021 which are subject to qualifications by its auditors. The de-listing decision of HSX gives rise to several issues. In particular,

  • Decree 155/2020 is not clear whether regarding the three financial statements of the three- year periods described in the de-listing ground, (1) all three statements need to be all completed after 1 January 2022, (2) only the last statement need to be completed after 1 January 2022, or (3) all three statements need not to be completed after 1 January 2022.

DRAFT REGULATIONS ON INFORMATION DATA CENTER SERVICE

The Government is drafting a Decree to amend some articles of Decree 72/2013 on administrating, providing and using Internet services and online information (Draft Decree). The Draft Decree proposes several major changes of Decree 72, one of which is the expansion of the governing scope of Decree 72 to cover the service of information data center (dịch vụ trung tâm dữ liệu). Previously, there is no set of regulations governing this service.

Various new provisions on information data center service are included in the Draft Decree. For instance:

1. Certain definitions relating to information data center service are introduced, e.g.:

(a) Service of information data center (kinh doanh dịch vụ trung tâm dữ liệu) which is defined as a commercial activity to provide computing and storage capacity for technical infrastructure conducted by data centers, including: server rental services (dịch vụ cho thuê máy chủ), service of renting out data center’s space (dịch vụ cho thuê chỗ tại trung tâm dữ liệu), service of renting out data storage space (dịch vụ cho thuê chỗ lưu trữ dữ liệu), and cloud computing service (dịch vụ điện toán đám mây);

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:

Notice on mortgage over receivables in Vietnam

Mortgage over receivables (thế chấp khoản phải thu) is a very common type of mortgage in Vietnam. Article 33 of Decree 21/2021 provides that a mortgage over receivables does not require a consent by the obligor but such person must be notified by the secured party to know before implementing the obligations in accordance with agreement or law. Under the Civil Code 2015, only a transfer of rights (not mortgage of rights) need to be notified to the obligor. It is not clear if the notice requirement is a perfection requirement and what the consequence is if the notice about the mortgage over receivable is not made to the relevant obligor.