EuroCham’s new Chairman, Mr Alain Cany, opened the luncheon and made his first official welcome to guests and members. He promised to continue advocating for European business in Vietnam; as well as recognising the critical role of Sector Committees in contributing to EuroCham’s success.
The Labour Code includes a number of changes that impact workplaces. These include labour contracts; crisis management; Decree 145 on labour code implementation; severance and retrenchment allowance; and labour regulations.
Mr. Lourney then discussed updates to Work Permits, including several exemption categories under Decree 152; Work Permit process and procedures; and how foreign currency and employment contracts work.
Turning to the Law on Tax Administration, Mr. Lourney discussed changes to taxation lodgements and general administration; the taxation of cross-border e-commerce activities; new anti-avoidance provisions and increased penalties for taxation enforcement; and tax rates and residency.
Ms. Giang Nguyen and Ms. Huong Tran, Senior Associates from Allens, then took the stage to present Vietnam’s new Law on Investment and Law on Enterprises.
Firstly, the new Law on Investment provides a new approach to market entry for foreign investors, which is more transparent and convenient. In regard to M&A approval, the conditions previously have only included considerations of the market approach, national defence and security, and Law on Land. However, there are now new circumstances in which M&A approval is required, more documents are required in application dossiers, and there are changes in procedures to obtain M&A approval.
A few questions were raised in regard to working long-term in Vietnam as foreigners during the pandemic, how to obtain residence permits for spouses, and how the new laws will impact on bringing in foreign experts and investment to Vietnam.
Mr. Lourney, Ms. Giang Nguyen, and Ms. Huong Tran took turns answering the questions raised by the audience. Mr. Lourney explained there are two types of permits for foreigners and their spouses and explained the process of how to apply for them to the audience.
Meanwhile, Ms. Giang Nguyen and Ms. Huong Tran discussed how travel restrictions may affect investment into Vietnam, but stressed that we need to wait for some time to see the new law take effect before we can make conclusive analysis.