Foreign Investors May Be Allowed to Hold 60% Shares | ANT Lawyers

  A new decision has been proposed to the Prime Minister with a number of changes that encourage foreign investors to make investment in Vietnam and in the meantime improve the financial market to catch up with international standard.

ANT Lawyers’ foreign investment practice always follow the change in legal environment to assist our client with the best service. First, foreign investors could own up to 60% of total voting right shares of a listed company. The previous provisions only allow this ratio for strategic partners. Secondly, the foreign investors may hold maximum 49% total voting right shares. The previous provision is 49% of charter capital. Thirdly, for non-voting right shares, the foreign investors are not restricted to hold. Fourthly, for fund certificate, the foreign investors may hold 100% for both close and open funds while the previous provision only allows 49% and restricts the foreign –owned in open funds. Fifthly, foreign organizations business in securities may hold securities companies in Vietnam up to 100% Charter capital while in recent provision, maximum of 49% and 100% for the specific cases.

When the new Decision will have been officially issued, the securities market of Vietnam will be more open and attractive to foreign investors. As expected, impact will be increasing liquidation, opening the conditions to establish investment funds, changing the enterprise’s structure, developing the fund management companies, and as such developing the financial market with more options to invest and control the investment in Vietnam.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang.

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Notable Improvements in Vietnam Investment Law 2014 | ANT Lawyers

 Vietnam Investment Law 2014 taking effect from July 1st, 2015, replaces the Investment Law 2005 with notable improvements, especially the provisions on business registration in investment projects which foreign investors making investment in Vietnam or setting up business in Vietnam are welcome.

The new Vietnam Investment Law in 2014 has brought up the concept of “business investments” to replace the previous two concepts as “direct investment” and “indirect investment”.

Under the Investment Law 2005, prohibited investment sectors are generally and broadly defined i.e. detrimental to defense and security, national interests which are vague concepts subject to arbitrary explanation of the Vietnam State authorities. The prohibited business activities in the new regulations are listed down specifically. This change has been considered as a huge development which confirm that the foreign investors have the right to conduct investment in Vietnam in the segments not prohibited by law. The new law specifies 267 conditional investment areas which clearly define the restrictions in one document instead of referring to various laws. This shall also avoid different interpretations of the legal enforcement and application of the laws in Vietnam.

According to the Vietnam Investment Law 2005, regardless of the proportion of foreign invested capital, all projects involving foreign ownership are subject to investment certificate. Under the new law, only the projects of foreign investors or enterprises with foreign investment capital contributed 51% of charter capital or more must apply for new registration certificate for the project investment of foreign investment. This is a big step to attract and encourage investment for foreign investors investing in Vietnam through reducing the amount of administrative formalities which foreign investors had to go through.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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News on the Procedure of Marriage Registration with Foreign Element | ANT Lawyers

 Vietnam law recently has some new regulations on the procedure of marriage registration with foreign element in Vietnam.

According to the Civil Status Law, the changes in the marriage registration with foreign element entered into force on January 1st 2016.

The new Civil Status Law has strongly decentralized for local government with the provision that the District People’s Committee will settle all the civil registration with foreign elements (including the registration of marriage with foreign elements).

The allocation to the District’s People’s Committee to settle the marriage registration record with foreign element will prevent the situation that all marriage registration records are submitted at the Department of Justice causing overloading.

Regarding marriage registration procedure, the new law has also gave up the interview section, shortening the execution time of marriage registration procedure with foreign elements to about 15 days (down by half compared to before).

Other civil procedures are allocated to Commune People’s Committee. This regulation aims to maximize the capacity and responsibility of local authorities, towards long-term goal is to thoroughly competent decentralized the civil registration for local authorities when conditions allow.

Specify as follows:

Article 37. Competence in marriage registration

1. The District People’s Committee, where residence of Vietnam citizen conducts marriage registration between Vietnam citizen and foreigner; between Vietnam citizen resident in the country and Vietnam citizen residing abroad; between Vietnam citizens residing abroad together; between Vietnam citizen at the same time has foreign nationality and Vietnam citizen or foreigner.

2. In case of foreigner residing in Vietnam may request for marriage registration in Vietnam, the District People’s Committee where residents of one of the two parties will implement the marriage registration.

Article 38. The procedure for marriage registration

Both parties submitted the declaration in the prescribed form and the health certificate issued by the foreign or Vietnam competent medical organization, confirming that the person is not suffering from mental or other diseases which is not capable of receiving knowledge, mastering his behavior for civil status registration authority.

Foreigner, Vietnam citizen residing abroad have to submit proof of marital status, copy of passport or valid documents replacing passport.

Within 15 days of receipt of all documents as specified in Paragraph 1 of this Article, the civil servant is responsible for verification, if found eligible for marriage registration as stipulated by law, the Chamber of Justice will report to the Chairman of District People’s Committee to resolve.

In the process of marriage registration, both parties must present at the headquarter of the People’s Committee, the civil servant will consulting the two parties, if the parties voluntarily to register for marriage, the marriage will be noted in the civil status book, then two parties sign on the civil status book. Finally, both parties sign on the marriage certificate.

Chairman of the District People’s Committee awards the certificate of marriage for both parties.

The Government regulates to provide additional papers in the marriage registration record, the interview and verify the purpose of marriage when settling the marriage registration requirement; procedure for granting certificate of marital status for Vietnam citizen to get married with foreigner in the competent bodies of foreign countries in order to ensure the rights and legitimate interests of the parties.

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Some Notable Changes in Vietnam Enterprise Law from Jul 2015 | ANT Lawyers

 There have been a number of significant changes to the Vietnam law on enterprise to improve the business efficiency. Under this law, limited liability companies and joint stock companies may have one or more than one atlaw representative, of which at least one at-law representative resides in Vietnam. An enterprise shall ensure that at least one at-law representative resides in Vietnam. In case an enterprise has only one atlaw representative, such person must reside in Vietnam and shall, upon leaving Vietnam, authorize in writing another person to exercise the rights and perform the obligations of the at-law representative.

From July 01, 2015, enterprises may decide on the appearance, quantity and content of seal and before using a seal, an enterprise shall notify the seal specimen to the business registration agency for publicly posting on the national enterprise registration portal. These are significant contents as prescribed under the Law No. 68/2014/QH13 on Enterprises approved by the National Assembly on November 16, 2014. Another significant point is regulation on omission of business sectors in enterprise registration certificate. From July 01, 2015, enterprise name and identification number, head office address of the enterprise; charter capital and information of the at-law representative of the enterprise, information of the general partners for partnerships; of the enterprise owner for private enterprises… The at-law representative of an enterprise shall register the changes in the contents of the enterprise registration certificate within 10 working days after making the changes. After being granted an enterprise registration certificate, an enterprise shall publicly announce the enterprise registration on the National Enterprise Registration Portal within 30 days. This Law takes effect on July 1, 2015 and replaces the Law No. 60/2005/QH11 on Enterprises and June 20, 2013 Law No. 37/2013/QH13 amending and Supplementing Article 170 of the Law on Enterprises.

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