- HM&P: Vietnam International Law Firm
- HM&P: Vietnam International Law Firm
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- https://hmplaw.vn/
Investment
In this article, we will analyze in detail and clarify the legal requirements, prerequisites, and dossiers and application process for participating in the Regulatory Sandbox for Peer-to-Peer Lending solutions in Vietnam according to the latest regulations of the Government and relevant guidelines of the State Bank of Vietnam (SBV).
The industrial park model is formed and developed in association with the context and requirements of the periods of implementation of the economic development strategy. According to a report by the Department of Management of Economic Zones, Ministry of Planning and Investment (now the Ministry of Finance), as of July 2024, Vietnam has 301 industrial parks ("IPs") that have been put into operation, attracting a large amount of investment capital, especially capital inflows from foreign direct investors.
In order to promote technology capital contribution activities in Vietnam, and at the same time minimize risks for parties, it is necessary to improve both the legal framework and the enforcement mechanism. Here are some of the recommendations of HM&P Law Firm ("HM&P") for this activity:
Resolution No. 68-NQ/TW dated 4 May 2025 of the Politburo on private sector development requires the timely formulation and improvement of laws as well as breakthrough mechanisms and policies to promote private sector growth in priority areas, particularly investment in research and development, the application of science and technology, innovation, and digital transformation. This is defined as a national strategy with the ambition of reaching regional and global levels, while fostering innovative entrepreneurship and legitimate wealth creation based on a strong and widespread foundation of indigenous technological advancement.
It can be seen from Resolutions 57 and 68 that placing technology at the core of development in the coming period is a strong and irreversible “mandate” for the nation and the business community in the new era. In this paper, we discuss a specific aspect within the broader field of technology development in Vietnam, focusing on the topic: The legal framework for capital contribution by technology in the new context of Vietnam.
In the course of efforts to integrate into the global economy, the Law on Investment 2020 is expected to be a major step forward to simplify procedures, promote business freedom and attract foreign investment (FDI). This law, which came into effect on January 1, 2021, has brought many positive reforms, such as cutting some conditional business lines, strengthening the decentralization of authority, and special investment support. However, after nearly 5 years of implementation, it has been shown that regulations on conditional business lines are still the biggest "bottleneck", hindering the business environment, reducing Vietnam's competitiveness compared to other countries in the ASEAN region.
With the massive flow of foreign investment capital into Vietnam, Vietnam's stock market is one of the hot spots that strongly attracts resources of investors in the world. Along with that, the demand for establishing commercial presences in Vietnam is increasing, in which, the establishment of representative offices of foreign securities companies and fund management companies in Vietnam is considered the first step and the foundation for expanding business activities in the future. In the context of the continuous improvement of the legal system on securities and investment in order to approach international standards, the establishment of a representative office in Vietnam allows foreign securities companies and fund management companies to promptly grasp legal changes. at the same time, build strategic relationships with domestic regulatory agencies, financial institutions and potential investors.
Vietnam's Investment Law 2020 has served as an important foundation in shaping the country's investment landscape, promoting economic growth and integration with global trends. However, as Vietnam faces the complex challenges of a rapidly changing global economy, technological advancements, and domestic development priorities, the Government has recognized the need to amend this law.
Under the direction of the Prime Minister on February 11, 2025, the State Bank is tasked with developing legal documents to legislate some contents of this Resolution, ensuring the inheritance and promotion of achieved results. In particular, strengthening bad debt management and risk diversification is the central goal of the process of amending the Law on Credit Institutions 2024. In fact, the Law on Credit Institutions 2024 has not overcome the limitations and fully met the requirements for handling bad debts. Therefore, the amendment aims to establish a synchronous bad debt settlement mechanism and create a solid legal corridor for credit institutions in the coming time. The Draft Amendment to the Law on Credit Institutions 2024 (the "Draft") is gathering public comments so that it can be promulgated and implemented soon in the near future.
Upon termination of outward investment activities, Vietnamese investors must terminate the investment project and complete the liquidation of this project in accordance with the law of the country receiving the investment. After that, the investor transfers all the remaining revenues (if any) from the liquidation. In Vietnam, the investor must carry out the procedures for invalidationof the outward investment registration certificate at the agency that has issued this certificate.
In the context of strong globalization, participation in Free Trade Agreements (FTAs) has become one of the important strategies to help countries, including Vietnam, expand their markets and improve their international competitiveness. As of 2024, Vietnam has signed a total of 13 major FTAs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU - Vietnam Free Trade Agreement (EVFTA), and FTAs with ASEAN, Korea, Japan, and many other partners. However, many Vietnamese companies have yet to take full advantage of these FTAs.
After more than six years of implementation, it can be said that Government Decree No. 86/2018/ND-CP regulating foreign investment cooperation in the education sector ("Decree No. 86") has achieved remarkable results in creating a legal framework for foreign individuals and organisations to participate in the development of Vietnam's education system. However, Decree No. 86 has also revealed some shortcomings, with some provisions incompatible with practice and others not fully in line with newly enacted laws.
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