Don’t Trust a BCC

By |October 7th, 2019|Categories: Contract Law, Corporate and commercial, Inward Investment, M&A|Comments Off on Don’t Trust a BCC

A while ago I was working with another lawyer on an M&A deal. The target company was a Vietnamese entity that operated in a restricted sector. This meant that foreign ownership was limited. Our client was a foreign entity that had a Business Cooperation Contract with the Vietnamese entity that stated that the foreign entity would benefit when the Vietnamese entity was sold. As part of this BCC, the foreign entity had invested heavily in the Vietnamese entity. Now, come time to sell the Vietnamese [...]

Viettel Installs 5G Network in HCMC

By |September 23rd, 2019|Categories: Business News, Technology and Media, TMT-Technology, Media, Telecom|Comments Off on Viettel Installs 5G Network in HCMC

According to Dat Viet at VN Express International, Viettel, the military owned telecommunications company, has installed several 5G network broadcasting stations throughout Ho Chi Minh City and Hanoi. You can see the article here. This is a major turn around for Vietnam as they are intent on becoming one of the first countries in the world to roll out 5G services. This is especially important as the country works on its infrastructure to handle the influx of manufacturers from the US-China Trade War. I remember [...]

Cybersecurity Update

By |September 17th, 2019|Categories: Intellectual Property, International Trade, Technology and Media, TMT-Technology, Media, Telecom|Comments Off on Cybersecurity Update

Recently we prepared a special alert concerning the current draft decree governing the cybersecurity law that has caused so much controversy in the interwebs. One clause, the requirement for offshore companies to establish onshore domain hosting along with a branch/rep office is particularly controversial. Below I quote from our security alert on this issue, as there is now new guidance in a draft decree that will govern the law on Cybersecurity. It is interesting to note that instead of all firms, there is now a [...]

Delayed Projects Can be Cancelled

By |September 10th, 2019|Categories: Business News, Dispute Resolution, Property and Construction|Comments Off on Delayed Projects Can be Cancelled

I'm not going to point to specific articles, because I haven't kept track of them, but lately it's becoming apparent that Vietnam is nearing a purge of projects that have failed to realize. It's happened in the past, when a project is on the books for investment development and nothing happens, or very little happens. The government can step in and cancel the project as mere speculation. FDI is a serious business in Vietnam reaching upwards of hundreds of billions of dollars a year, and [...]

Independence Day

By |September 5th, 2019|Categories: constitutional, General|Comments Off on Independence Day

Hello all. This most recent Monday was September 2, 2019, the 74th anniversary of Vietnam's Independence Day. At the end of World War II, on the same day that the Japanese surrendered to the American troops in Japan, Ho Chi Minh stood on a pedestal in Hanoi and read the Declaration of Independence which he had written. This declaration was well aimed at the American side of the war, as it mimicked in many ways the American Declaration. Unfortunately, as three decades of war attest, [...]

In Laos

By |August 26th, 2019|Categories: General, International Trade, Inward Investment|Comments Off on In Laos

I try not to let my personal life interfere with this blog too much, though I do on occasion tell personal stories. I'm currently sitting in Laos Plaza Hotel in Vientiane, Laos, and wondering at the difference between Vietnam and Laos. While there is indeed some new construction here in Vientiane, it is nothing like what I see in Vietnam. There could hardly be a bigger difference. Laos is a small country with only about six million inhabitants, compared to Vietnam's 97 million. Ho Chi [...]

New Rules for Securities

By |August 19th, 2019|Categories: Banking and Finance, Securities and Capital markets|Comments Off on New Rules for Securities

Below is a summary of major changes contemplated in the securities law by the National Assembly. This is taken from a larger article that will be published later by our firm managing partner. A private joint stock company will become a public company if it has a paid-up charter capital of VND 30 billion or more, and at least 10% of its voting shares is owned by 100 or more investors who are not major shareholders in such company; or it has successfully conducted an [...]

Pharma Opening after EVFTA

By |August 12th, 2019|Categories: Business News, Intellectual Property, Pharmaceutical & Healthcare|Comments Off on Pharma Opening after EVFTA

The pharmaceutical industry is looking forward to major investment now that the European-Vietnam Free Trade Agreement has been signed. The EVFTA allows for investment in the pharma industry by European investors that may not have been allowed before, luring investors to a lucrative industry. For example, just this week Sanofi Vietnam became the first firm to directly import drugs from overseas. See article in Vietnam Investment Review, here. This signals a new phase of investment in the pharma industry. It has only been recently that [...]

Sharp and the Trade War

By |August 5th, 2019|Categories: Business News, International Trade|Comments Off on Sharp and the Trade War

Sharp, the Japanese electronics giant, has announced plans to build a manufacturing site here in Vietnam according to Nikkei Asia here. This is the latest news in the continuing trade war between the United States and China, and provides an opportunity to examine the impacts of the trade war on a country like Vietnam. Much has been written about the benefits brought to the country by the trade war, particularly the increase in manufacturing as international producers switch their sites from tariffed China to other [...]

Call for More Technology Transfer in Vietnam

By |July 24th, 2019|Categories: Business News, International Trade, Technology and Media|Comments Off on Call for More Technology Transfer in Vietnam

As reprinted in Vietnam+, here, the Vietnam News Agency has called for increased technology transfer to production companies in Vietnam. The call sites dismal numbers of high tech usage by manufacturers in Vietnam stating that nearly 60% of manufacturers are using technology that is outdated while only 2% use high technology. This is disturbing, especially in light of news from Nintendo, Samsung, and other high tech industrial giants of their moving of manufacturing to Vietnam. Will Vietnam be ready? It's hard to tell. The pre-planning strategy [...]

Cashless Payments Improve

By |July 15th, 2019|Categories: Banking and Finance, TMT-Technology, Media, Telecom|Comments Off on Cashless Payments Improve

In the article on Vietnam Investment Review, here, news of Vietnam's increasing independence from cash and gold is welcome. I'll let you read the article, but much of the information contained therein is to boast of the boost in mobile payments and ATM transactions. Mobile payments are cashless payments made using a mobile device, usually a cell phone, rather than the traditional credit card or cash. This means that Vietnamese are taking part in a hundreds of billions of dollars worth of worldwide transactions. This [...]

Vietnam’s Corporate Governance Tested

By |July 11th, 2019|Categories: Business News, Securities and Capital markets, TMT-Technology, Media, Telecom|Comments Off on Vietnam’s Corporate Governance Tested

Bui Quang Huy is in trouble. The former CEO of tech company Nhat Cuong General Technical Services is wanted by police for smuggling and now money laundering. He apparently invested money earned from the smuggling of electronics across the border into a subsidiary company and used that to hide the fact that he was syphoning funds. The story, here, tells of a corrupt and ambitious gathering of like minds. Eight arrests have been made so far, though the take is in the hundreds of millions [...]

EVFTA Signed in Hanoi

By |July 1st, 2019|Categories: Business News, Dispute Resolution, International Trade|72 Comments

The Europe-Vietnam Free Trade Agreement (EVFTA) was signed by representatives of both parties on Sunday in Hanoi. While this is not the final step for execution of the agreement, this is a major milestone and will, more than likely, lead to adoption by the EU. In this article, here, Nicolas Audier discusses the benefits of the EVFTA in much more depth than I possibly could as he has been involved with the negotiations in his role with the EUCHAM here in Vietnam. In this article, [...]

Vinfast Roars to Life

By |June 24th, 2019|Categories: Business News, Corporate and commercial, International Trade, Inward Investment|5 Comments

Last week Vinfast, a subsidiary of Vinagroup, began manufacturing the Vinfast line of automobiles. The line begins with a standard hatchback and a sedan, two vehicles that are priced around 17,000USD. This is cool. For a couple of reasons is this cool. First, car purchases in Vietnam are up 22% year on year since 2018. This means that there are more cars reaching the road even though there are still severe import taxes on foreign made vehicles. If Vinfast delivers a quality vehicle, it is [...]

Tax Authorities On Top of Tech

By |June 12th, 2019|Categories: Banking and Finance, Business News, Taxation, Technology and Media, TMT-Technology, Media, Telecom|4 Comments

With this article in Vietnam Investment Review, here, the government proves that it is capable of keeping pace with technological advancement in at least one department, that of tax collection. The article examines the fact that Grab, a ride hailing app company, has surpassed Vinasun in tax contributions. It outlines the concerns that were raised initially, primarily the fact that Grab may not be amenable to easy tax collection, one of the arguments raised by the taxi union to fight what has been a major blow [...]

Duc Receives External Counsel Award

By |June 4th, 2019|Categories: Business News, Indochine Counsel News|3 Comments

Indochine Counsel is very happy to announce that our Managing Partner, Dang The Duc, has received the “Commended External Counsels of the Year for Vietnam 2019”. He received the award in Hong Kong on Thursday, May 30, 2019 and was part of the In-House Community celebration that followed. Dang The Duc (you can see his profile and contact information here) has been the managing partner of Indochine Counsel since its founding in 2006. He was one of the founding partners and has received numerous awards [...]

Legal Guide for Vietnam

The material contained in this Legal Guide to Investment in Vietnam is intended to inform readers of general legal developments in Vietnam…

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