Legal Updates & Publications

On 1 April 2024, the Prime Minister of Vietnam issued Decision 262/QD-TTg approving the plan to implement the National Electricity Development Plan for the period 2021 – 2030 (PDP8 Implementation Plan). The highly anticipated PDP8 Implementation Plan provides details of important power source projects as the industry’s investment priorities until 2030.

Under Vietnam law, entities that have legal rights to use land and/or own assets attached to land (Legitimate Owner/s) may be granted a certificate, subject to the provisions of the prevailing land laws and/or construction laws from time to time (generally referred to as “Certificate”). 

Beginning 1 July 2024, the Law on Credit Institutions No. 32/2024/QH15 passed by the National Assembly on 18 January 2024 (New Law on Credit Institutions) will replace the currently effective Law on Credit Institutions No. 47/2010/QH12 (Current Law on Credit Institutions). 

In response to the Resolution on the Global Minimum Tax which has taken effect from 1 January 2024, a draft decree on the establishment, management, and use of an investment support fund has been recently released for public comments and consultation. We present the key highlights of the Draft Decree in this legal update. 

The updated edition of our Arbitration Guide provides an incisive analysis of the current state of commercial arbitration practice and trends on the recognition and enforcement of foreign arbitral awards and setting aside applications in Vietnam, presenting crucial insights and the latest developments that are essential for legal practitioners and businesses operating in the region.

In its 6^th meeting session in November 2023, the 15^th National Assembly of Vietnam voted and passed the Amended Law on Real Estate Business (Amended LREB) and the Amended Law on Residential Housing (Amended LRH). These laws, which will come into effect starting 1 January 2025, together with an Amended Land Law currently being considered and expected to be voted on in 2024 (Amended Land Law), will form a new set of key laws regulating the Vietnam real estate market. 

In Vietnam, the land titles system is fundamentally different to the land titles systems of many jurisdictions worldwide, although there are some similarities. Under the Constitution of Vietnam and relevant Vietnamese law, all of the land in Vietnam is owned by all of the citizens of Vietnam collectively, and the people have appointed the State to administer all of the land of Vietnam on behalf of the people. The holding of land use rights is recorded in a State-issued certificate, known as a “Certificate of Land Use Rights and Ownership of Residential Houses and Other Assets Attached to Land” (a LURC).

On 1 October 2023, the Supreme People’s Court issued Decision 364/QD-CA announcing seven cases that are now considered precedents in Vietnam. 

 

The National Assembly of Vietnam officially approved the Amended Telecommunications Law with a vote of 468 out of 472. It is expected to come into force on 1 July 2024, superseding the current Law on Telecommunications No. 41/2009/QH12. The Amended Telecommunications Law is a significant step towards Vietnam’s fast-growing digital infrastructure development as it adapts the regulatory framework in accordance with evolving international practices and trends in the telecommunications and IT sectors. In this legal update, we highlight some of the key changes that will have a significant impact on businesses and investors in the technology and telecommunications sectors in Vietnam. 

In a landmark series of judgments, the Vietnamese Courts have ushered in a transformative era for FIDIC-modeled dispute resolution mechanisms within the construction sector. This shift confirms a party’s prerogative to commence arbitration directly, bypassing the obligatory processes of disputes board and amicable settlement. The Courts have also avoided the common pitfall of reviewing arbitral awards on the merits.

On 29 November 2023, the National Assembly of Vietnam passed the Resolution on the Global Minimum Tax (GMT Resolution) with a near-unanimous approval (462/463). The GMT Resolution will take effect from 1 January 2024. This resolution officially ushers in a new era of corporate taxation in Vietnam, particularly with respect to the country's economic trajectory and its growing role in global trade. 

A recent development has come to light with a draft decree prepared by the Ministry of Industry and Trade for the issuance by the Government. This decree aims to establish a regulatory framework for the development of self-consumption RTS systems in Vietnam. In this legal update, we will explore the key provisions of the draft decree and its potential implications for RTS development in the country.

In this case analysis, our authors discuss (based entirely upon facts, matters, and circumstances which are already a matter of public record) the key substantive and procedural aspects of SPNC’s claims against RDH, the SIAC arbitral award, the first instance Court decision to refuse to recognise the SIAC award, and ultimately the appeal Court decision to recognise the SIAC award for enforcement in Vietnam.

Our legal analysis discusses Vietnam’s Commercial Law and the ways in which it is sometimes manipulated to impact adversely on share sale and purchase transactions in Vietnam. Our authors explore whether or not the Commercial Law was intended to regulate share sale and purchase transactions and the manner in which it is sometimes deployed by share sale and purchase participants in ways that are unlikely to have been envisaged by its authors.

With Vietnam’s economic trajectory comes the increasing interest in major projects and transactions, and therefore also the risk of disputes among contracting parties.

On 20 June 2023, the National Assembly of Vietnam passed the Law on Protection of Consumers’ Rights, which will come into force on 1 July 2024, superseding the current Law on the Protection of Consumers’ Rights No. 59/2010/QH12