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

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

New Labour Code № 10/2012/QH13 – the important and key regulations governing employment relationship has finally been issued on 18 June 2012, after several years of preparation and publicly divergent discussions on changes and improvements to be covered in this code.

Tags: Legal pointer, August 2012, Vietnam Read More

We discuss below the need for employers in Vietnam to adopt and register internal labor regulations (“ILRs”). ILRs are a regulatory platform governing, amongst other things, issues relating to disciplinary breaches in the workplace. The work rules and procedures contained in an employer’s ILRs form part of the contractual relationship between employer and employee if they are duly registered.

Tags: Vietnam, Legal pointer, March 2012 Read More

On 28 February 2011, the Ministry of Finance issued Circular 28/2011/TT-BTC (“Circular 28”) to provide guidance on the Law on Tax Management, and superseded Circular 60/2007/TT-BTC (“Circular 60”). Circular 28 details various changes on tax administration, e.g. tax declaration procedures, deadlines, form, supporting documents, etc.

In this Tax Pointer, we discuss procedures and dossiers under Circular 28 to apply for a tax exemption/reduction under a double taxation agreement (“DTA”) to which Vietnam is a signatory.

Tags: Vietnam, Tax Pointer, September 2011 Read More

In this month's Issue:

• MARITIME
• LABOR
• REAL ESTATE
• INFRASTRUCTURE
• STATE ENTERPRISES
• ARBITRATION

Tags: Vietnam, August 2011, July 2011 Read More

Reinsurance activities are being conducted more nowadays by Vietnamese insurance companies as a mechanism to manage and share risks. Reinsurance is a type of insurance whereby risks are managed by transferring such risks from an insurer to a reinsurer. The reinsurer and the insurer will enter into a reinsurance agreement and agree on conditions which the reinsurer would pay the insurer's losses. A reinsurance premium would be paid by the insurer to the reinsurer.

With the rise of reinsurance activities in Vietnam, understanding the tax implications and benefits under a double taxation agreement (“DTA”) can help foreign reinsurers minimize their tax burdens. In this Tax Pointer, we highlight the general tax implications, including value added tax (“VAT”) and corporate income tax (“CIT”), of reinsurance activities, as well as tax impact under a DTA to which Vietnam is a signatory.

Tags: Vietnam, August 2011 Read More

The Decree No. 46/2011/NĐ-CP (“Decree 46”) issued by Government on 17 June 2011 amending several provisions of the Decree 34/2008/NĐ-CP (“Decree 34”) regarding recruitment and administration of foreigners working in Vietnam modify conditions applicable to foreign workers and provide further details on the specific responsibilities of the relevant authorities. While attention has been captured by certain new requirements/limitations, it should be pointed out that Decree 46, to a certain extent, also creates favorable conditions.

Tags: Vietnam, August 2011 Read More

The opening of the Cambodia and Lao stock exchanges poses some questions with respect to the tax policy issues in relation to listing on these new stock exchanges. Devising a tax policy in relation to tax incentives for companies that newly list on the CSX and LSX is a complicated matter.

Tags: Thailand, Vietnam, Laos, Cambodia, August 2011 Read More

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Tags: Vietnam, August 2011 Read More

In this Month's Issue:

• LABOR
• POST
• SECURITY
• PUBLISHING INDUSTRY
  

Tags: Legal & Regulatory updates, Vietnam Read More

 

Tags: Legal pointer, Vietnam, June 2011 Read More