Riccardo Verzella Senior associate (left) and Ho Ngoc Diep Legal advisor, D’Andrea & Partners Legal Counsel Some new innovations of the aforesaid regulations are more relevant compared to the previous FDI regime, and certain aspects may be further optimised with the aim of improving the ease of doing business in Vietnam for overseas investors. Market access rules were significantly improved under the amended LoI. Before its implementation, based on the previous law, the allowed business fields for foreign investors were only those expressly referred to in a permitted list as mentioned therein. Nevertheless, Vietnam has switched to the so-called “negative list” approach with the LoI: hence, currently, foreign investors may perform all the business activities not included in the Negative List for Market Access for Foreign Investors without differentiation from domestic investors. This innovation indeed removes uncertainty for foreign investors, widens their business … [Read more...] about Crafting complete enterprise and investment laws
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Making better decisions in real estate
Pham Viet Tuan-Associate, Indochine Counsel Many of the negative risks arise because of the complicated Vietnamese land laws, which prevent not only foreign investors but also local developers from developing projects. This article will give some hints on how they could properly tackle issues related to land in property project development through the contribution of land. In the Vietnamese real estate market, it is common for a property developer to have land but not the budget or experience/resources needed to develop the project. In this case, such developers might seek other ways to conduct their business plan. Some solutions may be to secure a loan facility from a bank; to cooperate with other developers who have experience/resources in the project development; or to call for financial aid from funds, and foreign/local investors or to issue bonds in the capital market. Each solution has its pros and cons. From a foreign perspective, project land is essential to project … [Read more...] about Making better decisions in real estate
Venture capital into innovative start-ups surges despite pandemic
New technology unicorns According to the Vietnam Innovation and Tech Investment Report 2021, venture investment totaled US$1.4 billion, four times that of 2020 and 60 percent more than the 2019 record of US$874 million. E-commerce and payment led the list with US$469 million and US$450 million respectively. The total number of transactions also increased significantly to reach 165 deals, up 57 percent compared to 2020. Last year also marked the appearance of two new technology unicorns - Momo (valued at nearly US$2 billion) and Sky Mavis (nearly US$3 billion), bringing the total number of unicorns in Vietnam to four. “This success affirms Vietnam's position as an emerging technology hub of the region,” stressed the report issued by the venture capital firm (Do Ventures Vietnam) and the Vietnam National Innovation Center (NIC). MoMo was one of two new technology unicorns in 2021 The total number of investment funds participating in Vietnam in 2021 grew 60 percent, … [Read more...] about Venture capital into innovative start-ups surges despite pandemic