The document provides summaries of recent legal and business developments in Vietnam across various sectors, as follows: 1) Deal update on the sale of a 10% interest in an infrastructure company for $37 million. 2) New decrees tightening regulations around gifts to authorities and alcohol consumption, including a zero tolerance policy for drinking and driving. 3) Amendments to insurance laws defining auxiliary insurance services and requiring providers to meet standards by November 2020. 4) Updates on foreign home ownership, banking laws around foreign investment accounts, environmental impact assessments, fintech peer-to-peer lending, and new support for SMEs regarding legal assistance.

1. ASIA COUNSEL INSIGHTS
August 2019
Asia Counsel Insights provide an
overview of the key trending legal
and business issues in Vietnam and
how they may impact your
business. Please enjoy your read.
Deal Update:
• Acted for VI Group on the sale
of its 10% interest in
Gemadept Corporation, a
infrastructure and logistics
company listed on the Ho Chi
Minh City Stock Exchange to
Sumitomo Corporation for
approximately USD37million.
Anti-Bribery
Gifts to the authorities
On 1 July 2019, the Government
issued Decree No. 59/2019/ND-CP on
detailed implementation of a
number of articles of the Law on Anti-
corruption.
This Decree confirms State authorities,
departments and civil servants are
prohibited from receiving gifts from
organisations and individuals over
whom they are involved in
management or settlement of tasks
for.
Decree 59 provides an additional
provision that if such State authorities
and civil servants cannot refuse the
gifts, they must report this to their
superiors. Cash gifts will then be
confiscated and added to the State
budget. Non-cash gifts will be valued
then sold at auction with the
proceeds to be added to the State
budget.
Decree 59 came into effect on 15
August 2019.
Alcohol Safety
Control of harmful effects of alcohol
The law on preventing and fighting
harmful effects of alcohol and beer
was adopted by the National
Assembly of Vietnam on 14 June
2019.
The law has tightened regulations on
alcohol consumption. It is now
expressly prohibited from consuming
alcohol during working hours
(including lunch and other breaks)
for officials, public employees and
employees working for
organizations, officers, enlistees, non-
commissioned officers, soldiers and
persons working for People's Armed
Force, and students.
It is illegal to drive after having
consumed any alcohol. Previously it
was permitted to drive after drinking
as long as it was below the regulated
limit. This zero tolerance policy on
drink driving is hoped to stop the
increase in traffic accidents due to
alcohol.
The Law will take effect on 1 January
2020.
Insurance
Amendment to Law
On 14 June 2019 Law No. 42 was
passed amending (amongst others)
the Law on Insurance Business.
The amendments to the law address
insurance auxiliary services for the first
time defining those as: (i) insurance
consultancy, (ii) insurance risk
assessment, (iii) insurance calculation
(actuarial services), (iv) insurance loss
assessment and (v) insurance
indemnity settlement support.
The law stipulates auxiliary insurance
service providers must meet the
standard insurance business
conditions, such as having qualified
staff. In addition, responsibilities are
provided such as confidentiality of
customer information must be
maintained and professional
indemnity insurance for each type of
insurance auxiliary service must be
obtained.
Those organizations currently
providing insurance auxiliary services
must satisfy these conditions by 1
November 2020 otherwise they will not
be permitted to provide such services.
About Asia Counsel
Asia Counsel is a dynamic international corporate and commercial law firm dedicated to serving clients in Vietnam. Our partners have over ten years of
experience in working on complex and challenging matters in Vietnam. We are committed to helping clients achieve their business strategies and providing
outstanding legal services.
If you have any questions on any of the items discussed above, please do not hesitate to contact us.
Christian Schaefer
Managing Partner
E christian@asia-counsel.com
Minh Duong
Partner
E minh@asia-counsel.com
Asia Counsel Vietnam Law Company Limited, Deutsches Haus, Level 15, 33 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City

2. ASIA COUNSEL INSIGHTS
August 2019
Vietnam Fact Box
Foreigners are entitled to own
apartments under the Law on
Housing and Decree
99/2015/ND-CP However, the
issuance of the certificate of
land use right and ownership of
houses and other property
attached to land (LURC) has
been stagnant due to the lack
of official mechanisms to
enforce such right. From 2018
to 2019, the Departments of
Construction in Hanoi City and
Da Nang have provided lists of
projects designated for
foreigners (17 projects in
Danang and 214 projects in
Hanoi) to facilitate issuance of
the LURC to foreigners that
purchase apartments.
Banking
Direct Investment Capital Account
(“DICA”)
The State Bank of Vietnam issued
Circular 06/2019/TT-NHNN. Under
Circular 06 a DICA must be
opened by:
(i) foreign investors, if: they
participate in a BCC; or directly
carrying out a PPP (without
setting up a project enterprise);
(ii) foreign invested enterprises
(including those established
with foreign capital, and those
receiving foreign capital after
establishment if the foreign
shareholding will be 51% or
more on completion).
Circular 06 also sets specific cases
where the DICA must be used. For
M&A transactions a foreign
invested enterprise is required to
have a DICA if the above
conditions are meet and if the
transaction is: (i) between a
resident and non-resident funds
must flow a DICA; and (ii) between
two residents or two non-residents
funds flow is not required to be
made via the DICA. Circular 06
takes effect on 6 September 2019.
Environment
Environment Impact Assessment
Report
Decree 40/2019/ND-CP dated May 13,
2019 on amendments to decrees on
guidelines for the law on environment
protection provides that project owner
shall submit the environment impact
assess (“EIA”) report to competent
authority for assessment before the
following points of time:
• Mineral extraction projects: before
competent authority carries out
the assessment to issue or modify
the license;
• Projects of oil and gas exploration
and extraction: before
competent authority carries out
the assessment and grants
approval for the exploration plan,
oil field development plan;
• Construction projects: before
competent authority carries out
the assessment of feasibility study
report, economic-technical
reports or basic design,
construction drawing design;
• Other projects: before decision on
approval for the project is
granted.
Decree 40 took effect on 1 July 2019.
Fintech
Peer to peer lending (P2P Lending)
On 8 July 2019, the State Bank of Vietnam
(SBV) issued official letter No.
5228/NHNN-CSTT regarding P2P lending
to credit institutions.
According to the SBV, P2P lending is
designed and developed on the basis of
digital technology to directly connect
borrowers with lenders without going
through financial intermediaries. The SBV
confirms that Vietnam does not have a
legal framework for P2P lending but does
not expressly say it is illegal and
prohibited. As such, the SBV
recommends credit institutions pay
attention if they engage in P2P lending:
• To consider requesting P2P lending
companies to publish fully,
transparently and truthfully information
about transaction contents between
credit institutions and P2P lending
companies transmitted to borrowers
and related parties.
• To be cautious in signing and
implementing cooperation
agreements with P2P lending
companies to ensure the agreement,
signing and performance of such
cooperation agreements are in
accordance with law.
Enterprise
SME Legal Assistance
Decree No. 55/2019/ND-CP on providing legal assistance for small and medium-sized
enterprises (SMEs) was issued on 24 June 2019 by way of providing accessible sources
of legal information and assistance with legal advice.
The relevant authorities will create, manage and maintain a law database to provide
useful legal information for SMEs. This will also include: (i) providing a website with legal
updates and links to legal resources; (ii) establishing a legal assistance programs for SME
to provide legal information and legal advice through legal questions submitted by
SMEs. SMEs will be able to apply for financial assistance in obtaining legal advice from
consultants: 100% of service fees on legal consulting service (cap VND 3 million per
year) for micro-enterprises; up to 30% of service fees (cap VND5 million per year) for
small sized enterprises; up to 10% of service fees (cap VND 10 million per year) for
medium sized enterprises. Decree 55 took effect on 16 August 2019 and supersedes
the Government’s Decree No. 66/2008/ND-CP dated May 28, 2008.