In this issue we present Cambodian regulations and information touching on the following:

• The maintenance of reserve requirement against commercial banks’ deposits and borrowings
• Management of importation of non-processed diamonds and exportation of processed diamonds in the implementation of the Kimberley Process Certification Scheme 
• Creation of commission for preparing mechanism of health service payment
• Paid holidays for the year 2013 by the Ministry of Labor and Vocational Training
• Promulgation of the Law on Approval on the Agreement between the State of Qatar and the Government of the Kingdom of Cambodia concerning the Regulation of Manpower Employment in the State of Qatar

Tags: November 2012, Cambodia, Legal & Regulatory updates Read More

Vietnam’s rich retail potential is being tapped with many firms pocketing healthy profits. Nguyen Thi Oanh, a senior DFDL legal and tax advisor, reviews Vietnam’s legal system and emphasises the need to perfect current regulations.

With a young population and bright long-term economic prospects, Vietnam remains an attractive destination for foreign retailers. One sign is how familiar names such as Parkson, BigC and Lotte have been continuously expanding their activities in Vietnam, while other large international chains like Aeon (Japan) and BerliJucker (Thailand) have been preparing to enter Vietnam.

Tags: Vietnam, November 2012 Read More

Burma’s Union Parliament has finally passed a much awaited foreign investment law, which has now been signed into law by President Thein Sein (the “MFI Law”) and published in local newspapers on November 3, 2012. Tags: November 2012, Myanmar Read More

Indian investment in the emerging economies of the Mekong region has been rising since 2000, influenced by recent policy changes in Cambodia, Laos, Myanmar, Thailand and Vietnam. The existence of untapped natural resources and improving investor confidence in these countries has contributed to the upward trend.

Tags: India Desk, November 2012 Read More

Pursuant to Sub- Decree № 146 dated 27 December 2005 (“SD 146”), many Economic Land Concessions (“ELCs”) have been granted to investors in the agro-industrial sector.

Tags: November 2012, Cambodia, Legal pointer Read More

In this issue we present Cambodian regulations and information touching on the following:

• Organization and Functioning of the Secretariat of Telecommunication Regulator of Cambodia (TRC)
• Adjustment to the Commission for Dealing with strikes and demonstrations
• Creation of a Steering Committee for Reviewing the Implementation of the United Nations Convention Against Corruption (UNCAC) in Cambodia
• Amendment to the Sub-Decree № 160 ANKr.BK, dated 23 September 2009, on the Increasing Work Effectiveness of the Disciplinary Council of the Supreme Council of Magistracy

Tags: October 2012, Cambodia, Legal & Regulatory updates Read More

During the 6 years since the enactment of the Law on Enterprises No. 60/2005/QH11 dated 29 November 2005 and the Law on Investment No. 59/2005/QH11 dated 29 November 2005 (Law on Investment), DFDL has assisted a large number of foreign clients in the establishment of foreign invested enterprises in Vietnam as well as in the acquisition of shares or contribution of capital in previously 100% owned local Vietnamese companies. In the process of advising our clients as to the official licensing regulations and procedures, we, and of course our clients, have been confronted with several inconsistences in the interpretation and application of the relevant licensing regulations.

Tags: Vietnam, Legal pointer Read More

The VAT imposition on interest income generated by non-credit institutions is further confirmed by the Government in Letter 608/VPCP-KTTH dated 4 February 2012, in reply to the request of the Ministry of Finance (“MoF”) and the State Bank of Vietnam (“SBV”). The Letter outlines that interest income generated by non-credit institutions is subject to VAT as the Government does not encourage non-credit institutions to engage in and generate income from credit activities.

Tags: Tax Pointer, October 2012, Vietnam Read More

In this article, we review the implementation of the Governmental decrees on recruitment and administration of foreign employment in Vietnam and the recent actions of the Vietnamese authorities ostensibly demonstrating the adoption of a more stringent approach to the application of the decrees.

Tags: Legal pointer, Vietnam Read More

The Vietnam-Singapore DTT has generally been considered to provide advantageous benefits compared with other treaties. This favorable treatment has made Singapore a preferred location for investment vehicles for investment into Vietnam.

The changes under the second Protocol reduce the existing advantages available under the Vietnam-Singapore DTT. These changes include the restriction on the availability of the capital gains tax exemption, the criteria for the length of period for the determination of a permanent establishment for the provision of services, and certain other confirmations and clarifications.

Tags: september 2012, Singapore, Vietnam, Tax Pointer Read More