Lawyer in Vietnam Dr. Oliver Massmann - Mergers & Acquisitions in Vietnam - 2...Dr. Oliver Massmann
The document discusses mergers and acquisitions (M&A) in Vietnam. It provides an overview of the key laws and regulatory authorities governing M&A transactions in Vietnam. It also summarizes the current state of the M&A market, with foreign direct investment remaining strong. The most active market sectors recently include manufacturing, renewable energy, and real estate. The document predicts that privatization of state-owned enterprises, trade agreements, and Vietnam's growing economy will most influence M&A activity in the next two years.
LAWYER IN VIETNAM - VIETNAM - Mergers & Acquisitions Country Comparative GuideDr. Oliver Massmann
There are three key points in the document:
1. There is no single law regulating M&A in Vietnam. Relevant rules are contained in several laws governing corporate, investment, and securities issues enforced by various regulatory authorities.
2. Vietnam remains an attractive market for foreign investment. Major sectors of M&A activity recently include manufacturing, energy, and consumer retail. Privatization of state-owned enterprises and trade liberalization are driving factors.
3. Acquiring a publicly traded company in Vietnam typically involves purchasing shares, a merger, or asset acquisition. There are disclosure and approval requirements, including reviews by regulatory authorities.
VIETNAM - FOREIGN INVESTMENT CERTAIN TO COME - HUNGCAO interviewing Dr. Olive...Dr. Oliver Massmann
Foreign investment in Vietnam's banking and financial sector declined last year due to the pandemic but is expected to increase again this year as the economy recovers. M&A activity slowed last year due to travel restrictions and economic uncertainty but some deals still occurred, especially involving Japanese investors. Foreign capital and investment have helped improve Vietnamese banks' technology and governance, though hurdles like divergent regulatory interpretations and foreign ownership limits remain challenges for foreign investors.
Vietnam has significant mineral resources and mining plays an important economic role, however the industry is dominated by inefficient state-owned enterprises (SOEs). To improve competitiveness and address budget deficits, Vietnam aims to privatize SOEs through equitization (partial privatization). The state-owned Vinacomin corporation controls over 95% of coal production but has been slow to equitize, delaying the country's economic restructuring goals and limiting foreign investment. Privatizing SOEs could boost Vietnam's economy but progress has been slower than planned.
VIETNAM — Mergers and Acquisitons — Market overview — Vietnamnews interviewi...Dr. Oliver Massmann
The document summarizes an interview with Dr. Oliver Massmann about mergers and acquisitions (M&A) in Vietnam during the Covid-19 pandemic. Some key points include:
- Notable M&A deals during the pandemic include the merger of VinCommerce into Masan and the acquisition of shares in Vinhomes by KKR and Temasek. Real estate, banking, logistics and healthcare were the most active industries.
- Growth drivers for M&A include free trade agreements expanding opportunities, new laws simplifying procedures, and a younger Vietnamese government willing to integrate globally.
- Challenges include difficulties reviewing targets due to Covid-19 impacts, adjusting prices, delays from
VIETNAM – LATEST GUIDE TO CONTRACT MANUFACTURING AND TOLLING AGREEMENTSDr. Oliver Massmann
1) Under Vietnamese law, drop shipping is considered an alternative form of import and is not subject to tax exemptions or reductions. There are no special regulations for drop shipping supplies. Capital equipment imported as fixed assets may be exempt from import taxes if they meet certain conditions.
2) While ownership of inventory, capital equipment, or acting as a purchasing agent could potentially create risks of a permanent establishment, establishing a representative office could help avoid this.
3) Tax incentives are available for certain encouraged investments based on location, business lines, employment levels, and export percentages. Operating as a cost plus contract manufacturer does not preclude incentives.
Lawyer in Vietnam Dr. Oliver Massmann - Mergers & Acquisitions in Vietnam - 2...Dr. Oliver Massmann
The document discusses mergers and acquisitions (M&A) in Vietnam. It provides an overview of the key laws and regulatory authorities governing M&A transactions in Vietnam. It also summarizes the current state of the M&A market, with foreign direct investment remaining strong. The most active market sectors recently include manufacturing, renewable energy, and real estate. The document predicts that privatization of state-owned enterprises, trade agreements, and Vietnam's growing economy will most influence M&A activity in the next two years.
LAWYER IN VIETNAM - VIETNAM - Mergers & Acquisitions Country Comparative GuideDr. Oliver Massmann
There are three key points in the document:
1. There is no single law regulating M&A in Vietnam. Relevant rules are contained in several laws governing corporate, investment, and securities issues enforced by various regulatory authorities.
2. Vietnam remains an attractive market for foreign investment. Major sectors of M&A activity recently include manufacturing, energy, and consumer retail. Privatization of state-owned enterprises and trade liberalization are driving factors.
3. Acquiring a publicly traded company in Vietnam typically involves purchasing shares, a merger, or asset acquisition. There are disclosure and approval requirements, including reviews by regulatory authorities.
VIETNAM - FOREIGN INVESTMENT CERTAIN TO COME - HUNGCAO interviewing Dr. Olive...Dr. Oliver Massmann
Foreign investment in Vietnam's banking and financial sector declined last year due to the pandemic but is expected to increase again this year as the economy recovers. M&A activity slowed last year due to travel restrictions and economic uncertainty but some deals still occurred, especially involving Japanese investors. Foreign capital and investment have helped improve Vietnamese banks' technology and governance, though hurdles like divergent regulatory interpretations and foreign ownership limits remain challenges for foreign investors.
Vietnam has significant mineral resources and mining plays an important economic role, however the industry is dominated by inefficient state-owned enterprises (SOEs). To improve competitiveness and address budget deficits, Vietnam aims to privatize SOEs through equitization (partial privatization). The state-owned Vinacomin corporation controls over 95% of coal production but has been slow to equitize, delaying the country's economic restructuring goals and limiting foreign investment. Privatizing SOEs could boost Vietnam's economy but progress has been slower than planned.
VIETNAM — Mergers and Acquisitons — Market overview — Vietnamnews interviewi...Dr. Oliver Massmann
The document summarizes an interview with Dr. Oliver Massmann about mergers and acquisitions (M&A) in Vietnam during the Covid-19 pandemic. Some key points include:
- Notable M&A deals during the pandemic include the merger of VinCommerce into Masan and the acquisition of shares in Vinhomes by KKR and Temasek. Real estate, banking, logistics and healthcare were the most active industries.
- Growth drivers for M&A include free trade agreements expanding opportunities, new laws simplifying procedures, and a younger Vietnamese government willing to integrate globally.
- Challenges include difficulties reviewing targets due to Covid-19 impacts, adjusting prices, delays from
VIETNAM – LATEST GUIDE TO CONTRACT MANUFACTURING AND TOLLING AGREEMENTSDr. Oliver Massmann
1) Under Vietnamese law, drop shipping is considered an alternative form of import and is not subject to tax exemptions or reductions. There are no special regulations for drop shipping supplies. Capital equipment imported as fixed assets may be exempt from import taxes if they meet certain conditions.
2) While ownership of inventory, capital equipment, or acting as a purchasing agent could potentially create risks of a permanent establishment, establishing a representative office could help avoid this.
3) Tax incentives are available for certain encouraged investments based on location, business lines, employment levels, and export percentages. Operating as a cost plus contract manufacturer does not preclude incentives.
VIETNAM – INVESTMENT IN THE HEALTHCARE AND MEDICAL DEVICE SECTORSDr. Oliver Massmann
Vietnam's healthcare sector has great potential for development as improvements attract foreign investment and boost small- and medium-sized enterprises. However, limited hospital capacity and high treatment costs burden patients. Developing home care programs could help reduce costs and complications by allowing professional monitoring of chronic illnesses outside hospitals. To implement expanded homecare, Vietnam needs a transparent legal framework to incentivize investment and streamlined administration. Major trade agreements like the CPTPP and EVFTA aim to improve medical device and technology trade by eliminating tariffs and increasing transparency, which could lower treatment costs over time. Foreign investors are also provided strong protections under agreements like the EVIPA.
Lawyer in Vietnam Dr. Oliver Massmann Public Mergers and Acquisitions 2020Dr. Oliver Massmann
The M&A market in Vietnam remains attractive, with foreign investment reaching $38 billion in 2019. Major deals include SK Group investing $1 billion in VinGroup and KEB Hana acquiring a 15% stake in Vietnam Development Bank. Obtaining control of a public company can be done through share/capital acquisitions, mergers, or asset acquisitions. Hostile bids are increasing but still less common than recommended bids due to limited public information. M&A activity is regulated through various laws governing corporations, investments, securities, and competition.
Lawyer in Vietnam Oliver Massmann - Vietnam - Country Guides: Securities and ...Dr. Oliver Massmann
The State Bank of Vietnam (SBV) is the central bank that oversees monetary policy and regulates the country's banking sector. It supervises all commercial banks in Vietnam and manages foreign exchange. While several major state-owned banks still dominate, Vietnam's banking system has undergone privatization with the goal of reducing state ownership to 51% over time. Foreign ownership of Vietnamese banks is also permitted but restricted, with limits on ownership percentages by individual foreign investors and the total foreign ownership of any single bank. The SBV and related laws and regulations govern foreign exchange activities, foreign borrowing, and the management of offshore loans in Vietnam.
VIETNAM – COVID 19 – FORCE MAJEURE - HOW YOU CAN PREPARE FOR FORCE MAJEURE – ...Dr. Oliver Massmann
The document discusses force majeure and contractual obligations in Vietnam in light of the coronavirus outbreak. It provides details on how force majeure is defined under Vietnamese law, notes that contracts can specify force majeure events, and outlines steps companies can take in response like reviewing force majeure clauses in contracts, providing timely notice of force majeure, and considering alternative ways to fulfill obligations or mitigate effects. The document also discusses "material adverse change" clauses and recommends precautionary measures companies should take during this period.
Lawyer in Vietnam Dr. Oliver Massmann - DOING BUSINESS IN VIETNAM - What in-h...Dr. Oliver Massmann
The document provides an overview of doing business in Vietnam presented by Dr. Oliver Massmann of Duane Morris Vietnam LLC. It discusses Vietnam's strong economic growth, integration into regional trade agreements, attractive investment environment including tax incentives, and labor market. Specific topics covered include Vietnam's GDP, exports, free trade agreements like CPTPP and EVFTA, sectors seeing foreign investment, procedures for investment and M&A, and taxation. The presentation encourages investors to take advantage of opportunities in Vietnam.
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH - Issues and Solutions - ...Dr. Oliver Massmann
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH
- Issues and Solutions - Impact of the Key Trade Agreements
CPTPP, EUVNFTA and Investment Protection Agreement
EU-VIETNAM FREE TRADE AGREEMENT AND INVESTMENT PROTECTION AGREEMENT – MOST LI...Dr. Oliver Massmann
The document summarizes key aspects of the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). It discusses the following key points:
1) The EVFTA was signed in 2019 and provides for the elimination of over 99% of tariffs between the EU and Vietnam. This will significantly increase market access for goods and services.
2) The EVIPA establishes an investment tribunal for settling disputes between investors and states and ensures fairness and independence in the dispute resolution process.
3) Once ratified, the agreements are expected to boost economic growth in both the EU and Vietnam through increased trade and investment opportunities across various sectors.
Lawyer in Vietnam Dr. Oliver Massmann DOING BUSINESS IN VIETNAMDr. Oliver Massmann
This document provides an overview of Duane Morris, a law firm with offices around the world including Vietnam, and discusses investing and Vietnam's legal system. It summarizes Vietnam's economy in 2018, the forms of investing in Vietnam including establishing entities and business cooperation contracts, and provides highlights of Vietnam's tax system and incentives for foreign investment.
Lawyer in Vietnam Oliver Massmann Transfer Pricing in Mergers and Acquisitio...Dr. Oliver Massmann
The document discusses transfer pricing issues that arise in mergers and acquisitions (M&A) in Vietnam. Specifically, it notes that if the agreed transfer price in an acquisition is less than the book value of the seller's equity, the licensing authority may refuse to approve the acquisition. It also discusses unclear tax regulations regarding capital gains tax on offshore acquisitions. This lack of clarity creates uncertain financial obligations for investors and can impact deal timelines. The document recommends harmonizing interpretations of transfer pricing and clarifying regulatory frameworks on tax liabilities from M&A transactions in Vietnam.
The Trans Pacific Partnership Agreement – Commitments above WTO Level - An A...Dr. Oliver Massmann
The Trans-Pacific Partnership Agreement (TPP) aims to liberalize trade and investment and address new trade issues among 12 Pacific Rim countries that account for 40% of global GDP. It establishes a free trade zone with commitments beyond the World Trade Organization (WTO) level, including further tariff reductions, opening services sectors, strengthening investment protections, and setting dispute settlement procedures. Vietnam would significantly benefit from the TPP, with projections of a 13.6% boost to GDP by 2025. Finalization of the agreement took many rounds of tough negotiations, and it will take effect once 6 countries ratifying 85% of the bloc's GDP approve it, which is projected for 2018.
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:Dr. Oliver Massmann
The document provides an overview of public-private partnerships (PPPs) in Vietnam and makes recommendations to promote the country's PPP program. It summarizes that Vietnam passed new PPP decrees in 2015 but faces challenges developing projects, including a lack of capacity and coordination among government agencies. It recommends developing a visible pipeline of priority projects, improving government capacity through training, and streamlining regulations to address inconsistencies and gaps regarding key issues like viability gap funding, land rights, and dispute resolution.
Lawyer in Vietnam Oliver Massmann Capital Markets and Privatization THE BREAK...Dr. Oliver Massmann
The document discusses key issues facing foreign investors in Vietnam's capital markets. It summarizes:
1) The group welcomes Vietnam's privatization of state-owned enterprises (SOEs) but emphasizes the need for transparency and compliance with regulations to ensure success.
2) Decree 60/2015 increasing foreign ownership limits is appreciated but implementation is hindered by the lack of a foreign investment sector list and unclear application of the 2014 Investment Law.
3) Overlapping draft decrees on pension funds from the Ministry of Finance and Ministry of Labour need to be consolidated to expedite establishment of these funds.
This document discusses barriers to the free movement of goods, capital, services, and people within the East African Community (EAC) common market. It identifies specific restrictions in the laws and regulations of EAC member states that inhibit the free flow of these factors of production between countries. Over 50 non-tariff barriers to trade in goods and at least 63 measures inconsistent with the free movement of services were identified. Restrictions on capital flows are also common, affecting the majority of capital operations that should be liberalized under the common market protocol. While economic integration has increased intra-regional trade volumes, full implementation of the common market remains incomplete due to the various legal and regulatory restrictions maintained by EAC member states.
LAWYER IN VIETNAM OLIVER MASSMANN VIETNAM M&A IN 2016 AND 2017 OUTLOOKDr. Oliver Massmann
This document summarizes Oliver Massmann's presentation on M&A trends in Vietnam in 2016 and the outlook for 2017. Some key points from the presentation include:
- Major foreign investors in Vietnamese M&A deals in 2016 came from Thailand, Japan, Korea, the US and Europe as they prepared for new trade agreements.
- Retail and real estate were the most active sectors in terms of deal value. Notable M&A deals included Central Group's acquisition of Big C Vietnam and TTC Holdings' acquisition of Metro Vietnam.
- Drivers of M&A activity in Vietnam in 2016 included the new Investment Law, Enterprise Law and implementing decrees which simplified procedures, as well as new trade agreements like the
Lawyer in Vietnam Dr. Oliver Massmann PHARMACEUTICAL SECTORDr. Oliver Massmann
The document discusses several key issues regarding Vietnam's pharmaceutical sector and outlook on major trade agreements. It notes that while Vietnam has high universal healthcare coverage, accessibility to new pharmaceuticals is low at only 6% availability. This has led to estimated $2 billion in annual medical tourism outbound costs. Major trade agreements like the TPP 11 and EUVNFTA are expected to help address issues like this by eliminating tariffs, ensuring fair competition and investment, and creating a legal framework that allows foreign invested enterprises to operate more efficiently in Vietnam's pharmaceutical market. The document also highlights ongoing issues like inconsistencies in regulations around seminars and clarification needed on foreign enterprise rights that further trade agreements and amendments could help resolve.
VIETNAM - TRANSPORTATION AND LOGISTICS – WHAT YOU MUST KNOW:Dr. Oliver Massmann
The document discusses transportation and logistics issues in Vietnam. It summarizes that Vietnam's economy relies on efficient transportation and logistics to support its manufacturing sector and trade. It then outlines several key issues and recommendations to streamline customs procedures and specialized inspections. These include increasing customs de minimis thresholds, further implementing the National Single Window system, simplifying inspection processes for textiles and used machinery, and clarifying tax policies for bonded warehouses. Addressing these issues could accelerate trade, reduce costs, and help Vietnam compete globally as a manufacturing and logistics hub.
Aeo system for self assessment of customs dutyM S Siddiqui
(1) The Authorized Economic Operator (AEO) system allows traders who meet certain compliance standards to benefit from expedited customs procedures and self-assessment of duties. (2) It is based on frameworks by the World Customs Organization and World Trade Organization to facilitate trade while maintaining customs controls. (3) Bangladesh is working to establish an AEO program with technical assistance to modernize its customs practices in line with international standards and promote legitimate trade.
VIETNAM – INVESTMENT IN THE HEALTHCARE AND MEDICAL DEVICE SECTORSDr. Oliver Massmann
Vietnam's healthcare sector has great potential for development as improvements attract foreign investment and boost small- and medium-sized enterprises. However, limited hospital capacity and high treatment costs burden patients. Developing home care programs could help reduce costs and complications by allowing professional monitoring of chronic illnesses outside hospitals. To implement expanded homecare, Vietnam needs a transparent legal framework to incentivize investment and streamlined administration. Major trade agreements like the CPTPP and EVFTA aim to improve medical device and technology trade by eliminating tariffs and increasing transparency, which could lower treatment costs over time. Foreign investors are also provided strong protections under agreements like the EVIPA.
Lawyer in Vietnam Dr. Oliver Massmann Public Mergers and Acquisitions 2020Dr. Oliver Massmann
The M&A market in Vietnam remains attractive, with foreign investment reaching $38 billion in 2019. Major deals include SK Group investing $1 billion in VinGroup and KEB Hana acquiring a 15% stake in Vietnam Development Bank. Obtaining control of a public company can be done through share/capital acquisitions, mergers, or asset acquisitions. Hostile bids are increasing but still less common than recommended bids due to limited public information. M&A activity is regulated through various laws governing corporations, investments, securities, and competition.
Lawyer in Vietnam Oliver Massmann - Vietnam - Country Guides: Securities and ...Dr. Oliver Massmann
The State Bank of Vietnam (SBV) is the central bank that oversees monetary policy and regulates the country's banking sector. It supervises all commercial banks in Vietnam and manages foreign exchange. While several major state-owned banks still dominate, Vietnam's banking system has undergone privatization with the goal of reducing state ownership to 51% over time. Foreign ownership of Vietnamese banks is also permitted but restricted, with limits on ownership percentages by individual foreign investors and the total foreign ownership of any single bank. The SBV and related laws and regulations govern foreign exchange activities, foreign borrowing, and the management of offshore loans in Vietnam.
VIETNAM – COVID 19 – FORCE MAJEURE - HOW YOU CAN PREPARE FOR FORCE MAJEURE – ...Dr. Oliver Massmann
The document discusses force majeure and contractual obligations in Vietnam in light of the coronavirus outbreak. It provides details on how force majeure is defined under Vietnamese law, notes that contracts can specify force majeure events, and outlines steps companies can take in response like reviewing force majeure clauses in contracts, providing timely notice of force majeure, and considering alternative ways to fulfill obligations or mitigate effects. The document also discusses "material adverse change" clauses and recommends precautionary measures companies should take during this period.
Lawyer in Vietnam Dr. Oliver Massmann - DOING BUSINESS IN VIETNAM - What in-h...Dr. Oliver Massmann
The document provides an overview of doing business in Vietnam presented by Dr. Oliver Massmann of Duane Morris Vietnam LLC. It discusses Vietnam's strong economic growth, integration into regional trade agreements, attractive investment environment including tax incentives, and labor market. Specific topics covered include Vietnam's GDP, exports, free trade agreements like CPTPP and EVFTA, sectors seeing foreign investment, procedures for investment and M&A, and taxation. The presentation encourages investors to take advantage of opportunities in Vietnam.
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH - Issues and Solutions - ...Dr. Oliver Massmann
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH
- Issues and Solutions - Impact of the Key Trade Agreements
CPTPP, EUVNFTA and Investment Protection Agreement
EU-VIETNAM FREE TRADE AGREEMENT AND INVESTMENT PROTECTION AGREEMENT – MOST LI...Dr. Oliver Massmann
The document summarizes key aspects of the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). It discusses the following key points:
1) The EVFTA was signed in 2019 and provides for the elimination of over 99% of tariffs between the EU and Vietnam. This will significantly increase market access for goods and services.
2) The EVIPA establishes an investment tribunal for settling disputes between investors and states and ensures fairness and independence in the dispute resolution process.
3) Once ratified, the agreements are expected to boost economic growth in both the EU and Vietnam through increased trade and investment opportunities across various sectors.
Lawyer in Vietnam Dr. Oliver Massmann DOING BUSINESS IN VIETNAMDr. Oliver Massmann
This document provides an overview of Duane Morris, a law firm with offices around the world including Vietnam, and discusses investing and Vietnam's legal system. It summarizes Vietnam's economy in 2018, the forms of investing in Vietnam including establishing entities and business cooperation contracts, and provides highlights of Vietnam's tax system and incentives for foreign investment.
Lawyer in Vietnam Oliver Massmann Transfer Pricing in Mergers and Acquisitio...Dr. Oliver Massmann
The document discusses transfer pricing issues that arise in mergers and acquisitions (M&A) in Vietnam. Specifically, it notes that if the agreed transfer price in an acquisition is less than the book value of the seller's equity, the licensing authority may refuse to approve the acquisition. It also discusses unclear tax regulations regarding capital gains tax on offshore acquisitions. This lack of clarity creates uncertain financial obligations for investors and can impact deal timelines. The document recommends harmonizing interpretations of transfer pricing and clarifying regulatory frameworks on tax liabilities from M&A transactions in Vietnam.
The Trans Pacific Partnership Agreement – Commitments above WTO Level - An A...Dr. Oliver Massmann
The Trans-Pacific Partnership Agreement (TPP) aims to liberalize trade and investment and address new trade issues among 12 Pacific Rim countries that account for 40% of global GDP. It establishes a free trade zone with commitments beyond the World Trade Organization (WTO) level, including further tariff reductions, opening services sectors, strengthening investment protections, and setting dispute settlement procedures. Vietnam would significantly benefit from the TPP, with projections of a 13.6% boost to GDP by 2025. Finalization of the agreement took many rounds of tough negotiations, and it will take effect once 6 countries ratifying 85% of the bloc's GDP approve it, which is projected for 2018.
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:Dr. Oliver Massmann
The document provides an overview of public-private partnerships (PPPs) in Vietnam and makes recommendations to promote the country's PPP program. It summarizes that Vietnam passed new PPP decrees in 2015 but faces challenges developing projects, including a lack of capacity and coordination among government agencies. It recommends developing a visible pipeline of priority projects, improving government capacity through training, and streamlining regulations to address inconsistencies and gaps regarding key issues like viability gap funding, land rights, and dispute resolution.
Lawyer in Vietnam Oliver Massmann Capital Markets and Privatization THE BREAK...Dr. Oliver Massmann
The document discusses key issues facing foreign investors in Vietnam's capital markets. It summarizes:
1) The group welcomes Vietnam's privatization of state-owned enterprises (SOEs) but emphasizes the need for transparency and compliance with regulations to ensure success.
2) Decree 60/2015 increasing foreign ownership limits is appreciated but implementation is hindered by the lack of a foreign investment sector list and unclear application of the 2014 Investment Law.
3) Overlapping draft decrees on pension funds from the Ministry of Finance and Ministry of Labour need to be consolidated to expedite establishment of these funds.
This document discusses barriers to the free movement of goods, capital, services, and people within the East African Community (EAC) common market. It identifies specific restrictions in the laws and regulations of EAC member states that inhibit the free flow of these factors of production between countries. Over 50 non-tariff barriers to trade in goods and at least 63 measures inconsistent with the free movement of services were identified. Restrictions on capital flows are also common, affecting the majority of capital operations that should be liberalized under the common market protocol. While economic integration has increased intra-regional trade volumes, full implementation of the common market remains incomplete due to the various legal and regulatory restrictions maintained by EAC member states.
LAWYER IN VIETNAM OLIVER MASSMANN VIETNAM M&A IN 2016 AND 2017 OUTLOOKDr. Oliver Massmann
This document summarizes Oliver Massmann's presentation on M&A trends in Vietnam in 2016 and the outlook for 2017. Some key points from the presentation include:
- Major foreign investors in Vietnamese M&A deals in 2016 came from Thailand, Japan, Korea, the US and Europe as they prepared for new trade agreements.
- Retail and real estate were the most active sectors in terms of deal value. Notable M&A deals included Central Group's acquisition of Big C Vietnam and TTC Holdings' acquisition of Metro Vietnam.
- Drivers of M&A activity in Vietnam in 2016 included the new Investment Law, Enterprise Law and implementing decrees which simplified procedures, as well as new trade agreements like the
Lawyer in Vietnam Dr. Oliver Massmann PHARMACEUTICAL SECTORDr. Oliver Massmann
The document discusses several key issues regarding Vietnam's pharmaceutical sector and outlook on major trade agreements. It notes that while Vietnam has high universal healthcare coverage, accessibility to new pharmaceuticals is low at only 6% availability. This has led to estimated $2 billion in annual medical tourism outbound costs. Major trade agreements like the TPP 11 and EUVNFTA are expected to help address issues like this by eliminating tariffs, ensuring fair competition and investment, and creating a legal framework that allows foreign invested enterprises to operate more efficiently in Vietnam's pharmaceutical market. The document also highlights ongoing issues like inconsistencies in regulations around seminars and clarification needed on foreign enterprise rights that further trade agreements and amendments could help resolve.
VIETNAM - TRANSPORTATION AND LOGISTICS – WHAT YOU MUST KNOW:Dr. Oliver Massmann
The document discusses transportation and logistics issues in Vietnam. It summarizes that Vietnam's economy relies on efficient transportation and logistics to support its manufacturing sector and trade. It then outlines several key issues and recommendations to streamline customs procedures and specialized inspections. These include increasing customs de minimis thresholds, further implementing the National Single Window system, simplifying inspection processes for textiles and used machinery, and clarifying tax policies for bonded warehouses. Addressing these issues could accelerate trade, reduce costs, and help Vietnam compete globally as a manufacturing and logistics hub.
Aeo system for self assessment of customs dutyM S Siddiqui
(1) The Authorized Economic Operator (AEO) system allows traders who meet certain compliance standards to benefit from expedited customs procedures and self-assessment of duties. (2) It is based on frameworks by the World Customs Organization and World Trade Organization to facilitate trade while maintaining customs controls. (3) Bangladesh is working to establish an AEO program with technical assistance to modernize its customs practices in line with international standards and promote legitimate trade.
The Handbook on Customs Clearance (hereinafter referred to as the “Handbook”) is presented by the General Department of Customs and Excise (hereinafter referred to as the “GDCE”) in collaboration with Mr. Hiroshi Suzuki, CEO/Chief Economist, Business Research Institute for Cambodia (BRIC) under the Asian Development Bank’s technical assistance framework to Support Trade Facilitation for the Implementation of ASEAN Economic Community (AEC). The main purpose of this handbook is to disseminate information in order to increase public awareness on goods clearance procedures in Cambodia. All the information on the Handbook, however, is merely a collection and summary interpretation of some existing laws and regulations relating to customs clearance processes and doesnot necessarily reflect the views and policies of the GDCE or the Cambodian Government.
In this regard, the GDCE would like to reaffirm that the Handbook would not be used as any reference for judicial process, and the GDCE will not accept any liability, obligation or responsibility whatsoever for any errors, omissions from, misstatements or misrepresentations which has accidentally occurred during the compilation of this Handbook. In the meantime, the GDCE reserves the right to omit, suspend
or edit all information in the Handbook at any time to meet the evolving circumstances without giving any reason or prior notice.
At last, in order to ensure full compliance with existing laws and regulations, the GDCE would like to recommend readers to further verify with the related existing legal documents with number and date as indicated in all parts of the Handbook, before acting upon it.
Introduce by www.vietxnk.com
A look at intra-group loans and safe harbour rules in CyprusChristos Theophilou
Christos Theophilou and Demis Ioannou of Taxatelier present a case study of how the Cypriot tax authorities use safe harbour rules in determining arm’s-length interest rates. The article appears in International Tax Review, published by Euromoney PLC.
Road transport convention and bbin mvaM S Siddiqui
The best available system is the UN TIR Convention overseen by the International Road Transport Union (IRU). Without such a mechanism, the MVA could not be operational. BBIN need a collective decision to accede to the TIR Convention can play an important role in the harmonization of trade and transport standards that facilitate cross border trade flows. TIR may be a convention to remove non-tariff barriers with the sincere efforts of the member countries.
The new Union Customs Code (UCC) implemented by the European Union in 2016 aims to simplify and standardize customs procedures. It changes rules around authorized economic operators, valuation, tariff classification, registered exporters, bonded warehouses, and representation. While intended to facilitate trade, the UCC requires businesses to comply with new electronic filing requirements and other mandatory rules. Logistics providers like Damco are affected and can provide advice to help clients navigate the changes brought by the new code. The UCC will continue being phased in through 2020 as member states standardize national laws and customs systems become fully digital.
Notification v circular, excise v customs:
Factory sealing of containers
Notification 19/2004-CE(NT) provides the procedure for exporting goods under claim for rebate of excise duty under Rule 18 of the Central Excise Rules 2002. The said notification provides an option to the manufacturer-exporter, under paragraph 3(a)(i), to either self-seal his consignment at the factory or have it sealed by the central excise officers. On the other hand, administrative circulars of the CBEC require that exports under ‘free shipping bills’ (in which no export incentives are claimed) are to be self-sealed by the exporter. In a circular dated 8 September 2011 the CBEC has again reiterated that “the facility/ option of examination and sealing of export containers by the Central Excise Officers at the place of dispatch is available to both manufacturer- exporters (except when the export is on free Shipping Bill) and merchant-exporter in respect of the goods exported in terms of Rule 18 or 19 of the Central Excise Rules, 2002.” See http://cbec.gov.in/excise/cx-circulars/cx-circulars-11/952-2k11cx.htm.
Self-assessment in customs – more responsibility on the importer or exporter
Electronic declaration of imports or exports has been part of the EDI system, and there were regulations under which such declarations were accepted. Now a new set of regulations is proposed, in line with self-assessment. The new draft regulations, now up on the CBEC site, are commensurate with the general trend towards shifting the responsibility to the importer / exporter. The form of declaration is much longer and asks for much more information from the importer / exporter. See the draft circular at http://www.cbec.gov.in/draft-circ/draft-electronicbill.htm
The document provides an overview of the Vietnam-Chile Free Trade Agreement (VCFTA), including its history, context and timeline. Some key points:
- VCFTA was signed in 2011 and took effect in 2014, creating opportunities to boost economic ties between Vietnam and Chile.
- It aims to eliminate tariffs - Vietnam committed to cutting tariffs on 87.8% of items within 15 years, while Chile will eliminate tariffs on 99.62% of Vietnam's exports within 10 years.
- The agreement has led to significantly increased bilateral trade, with Vietnam now running a trade surplus after years of deficits prior to the agreement. Main exports to Chile include footwear, textiles, electronics and seafood
Mutual recognition of authorized economic operatorM S Siddiqui
AEO is considered as an important tool for facilitation of the customs and trade processes for Customs and for traders, the contribution of trade facilitation to the establishment of open markets and to the creation of long-standing opportunities for investment and, consequently, economic growth and mutual recognition agreements (MRAs) MRA "open the doors" to and for other countries.
M CASA weekly 14 44- 2012 Inernational Customs Law and its Importnace for Tra...CINEC Campus
This document summarizes key points about customs law and trade facilitation in Sri Lanka. It discusses how customs plays an important role in trade and revenue collection. It outlines the structure of the Revised Kyoto Convention, which aims to standardize customs policies and procedures worldwide. It then discusses current trends in Sri Lanka, including infrastructure development and efforts to attract more investment. However, it questions whether Sri Lanka has sufficiently reduced constraints on investors, such as complex customs processes, to fully realize these goals. The next part of the article will continue this discussion.
This document discusses the taxability of commissions received by airline agents under value-added tax (VAT) laws. It analyzes key concepts related to VAT such as tax point, place of supply, taxable supply, and taxable value. It argues that while commissions may be excluded from the taxable value of airline tickets, this does not mean they are exempt from VAT. The document examines agency relationships in the airline industry and how commissions fit within the normal VAT practices. It ultimately suggests that commissions should be subject to VAT if the applicable tax laws do not clearly exempt them.
The experience of the other countries doesn’t support the fear of NBR officials. This conception of officials is a challenge of introduction of PCA in Bangladesh.
With the ratification of the TFA in 2016, Bangladesh has obligation to introduce PCA in the customs rule. The relevant SRO should be issues as early as possible.
Customs4trade Customs and Trade management softwarePavel Malei
CAS is an end-to-end solution for customs and trade management. It’s designed by and for customs experts in order to drive efficiency in a time-critical and complex customs and trade landscape. CAS is a Software-as-a-Service solution, which means it is kept up-to-date with changing legislation and tariff measures automatically. It can easily be integrated with your ERP/WMS data and administration.
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VIETNAM - CUSTOMS REFORM AND WTO TRADE FACILITATION AGREEMENT (“TFA”) - HOW CPTPP AND EVFTA CAN EFFECT CHANGE
1. VIETNAM - CUSTOMS REFORM AND WTO TRADE FACILITATION AGREEMENT (“TFA”)
- HOW CPTPP AND EVFTA CAN EFFECT CHANGE
Every day I ride a boat along the Saigon River between Districts 1 and 2 when I am in Ho Chi Minh
City. Monday through Friday, it is full of container barges moving containers to and from major
distribution points. Saturdays and Sundays, however, are basically void of such traffic. I wondered to
myself “why?” With the amount of import/export volume funneling through this major artery to trade, how
could the weekends shut-down the volume of traffic this much? After reading the law on customs and the
various other regulations and laws concerning Vietnamese customs and procedures, it became clear that a
substantial portion of customs clearing and private transportation services did not operate on weekends;
and if they did, it was sporadic. It would seem logical to assume that since worldwide shipping did not stop
transport vessels in the middle of the sea because it was the weekend that major backlogs would occur on
Fridays, Saturdays, and Sundays, hindering efficient clearance of goods. Mondays would be very intensive
days for customs services and transportation.
The infrastructure for Vietnamese ports is growing and several large projects are already underway to
accommodate the increased volume of shipping that is occurring.[1] Ports in Ho Chi Minh City are the
main gateway for the region, accounting for 67 percent of the total throughput of all Vietnamese
ports.[2] The enhanced infrastructure to absorb extensive increases to shipping volume is necessary and
critical for Vietnam’s economic growth sustainability; however, it is the responsibility of customs to
expeditiously accept and clear those goods for shipment to their destinations within Vietnam. Many
developing (and, by the way, some developed) nations and economies have struggled with customs
efficiencies for this new operational environment, and Vietnam is no different. The WTO TFA (Trade
Facilitation Agreement; hereafter referred to as “TFA”) which entered into force 22 February 2017 was
partly enabled to assist developing nations in streamlining their customs functions to facilitate a smoother,
easier, trade process through a provision of assistance and support for capacity building for implementation
of Section I [of the TFA].[3] Section I of the TFA includes Article 7 (Release and Clearance of Goods)
and Article 9 (Movement of Goods Intended for Import Under Customs Control). How has Vietnam been
addressing the concerns raised by these articles of the TFA and how do the CPTPP (Comprehensive and
Progressive Trans Pacific Partnership; 2018) and EVFTA (European Union—Vietnam Free Trade; 2019)
agreements add-to, or reduce, these concerns?
Article 7 of TFA
This Article provides standards for different factors that affect the release and clearance of goods such as
expedited shipments, perishable goods, electronic payments, and pre-arrival processing. Article 7.3 calls
for a separation of release of the imported goods from final determination of customs duties, taxes, fees,
and charges. The article states that members shall allow importers to obtain release of their goods, under a
guarantee, if required, prior to the final determination and payment of customs duties, taxes, fees and
charges where the final determination is not done prior to, upon arrival or as rapidly as possible after
arrival.[4] This is a wonderful measure for importers (to have their goods released with a very limited
delay) and also for customs-efficiency as customs can receive legal guarantees of importers paying the final
determination of any incurred fees at a later date. This can have the effect of rapidly clearing goods from
2. customs intake/staging locations to create inventory space for more goods. Any reduction in delay of
release of goods is a good thing, and according to a global trade report, full TFA delivery will help…”save
1.5 days of customs clearance for imported goods, down 47% from the present average and nearly 2 days
of customs clearance for exported ones, down 91%.”[5] Vietnam’s logistics’ costs account for 16% to 17%
currently [2018] of GDP, with 30-40 percent of that cost associated with custom’s clearances.[6]
In response to this concern—and under Article 7.3 of the TFA—Vietnam turned to CPTPP to address
it. Under recently published Decree No. 57/2019/ND-CP (26 June 2019) governing Export/Import
preferential tariffs under CPTPP, “…Within 1 year from the date of…export declarations, the customs
declarant shall submit all documents proving that the goods satisfy the regulations specified…”[7] This
mirrors the intent of TFA Article 7.3 and directly compliments it. Now, member states of CPTPP have
increased flexibility in submitting any further documentation requested of Vietnam Customs instead of
having those goods held and delayed for clearance until they were obtained. This is a great example of
Vietnam aggressively pushing their regulatory changes forward to comply with TFA and CPTPP.
Article 9 of TFA
This article attempts to prevent bottleneck issues from occurring (mainly in developing or under-developed
countries) at a customs port of entry by requiring member states to allow a customs-declarant to move goods
from a customs port of entry to another customs office within the same customs territory (under customs
control), and permit that declarant to clear them at the destination rather than at the port of entry. It is a
straight-forward and fairly simple sounding statement; however, in practice, it is riddled with complexities.
Vietnam’s law on customs[8] delineates authority for customs responsibilities between 1) General
Department of Customs; 2) Customs Departments of Provinces; and 3) Sub-department of Customs Sub-
Departments, Customs control teams and equivalent units. Additionally, under Article 16 (5) of same, “The
arrangement of manpower and working time must meet the requirements of import, export, exit, entry and
transit activities.” Furthermore, Article 23 (4) requires, “Customs authorities…to carry out formalities for
goods on public holidays and weekends and overtime hours in order to ensure timely loading and unloading
of imported and exported goods…in conformity with practical conditions of customs operating locations
[emphasis added]”. On paper, this would indicate a fully-developed system for expediting customs
clearances and/or processes for clearing goods through a port of entry to another custom’s operations area
for clearance seven days a week (and the customs law does further state that unless a shipment requires a
physical inspection for certain agricultural or health reasons, it should be expedited to a different clearance
location).
In application, it can vary greatly by whoever is the customs authority in charge of the inspection
location. Decree 08/2015/ND-CP (Ministry of Finance) Article 29 (2) states, “Head of the Customs
Authority who is in charge of…inspection [places] shall make a decision on any change to the level or form
of physical verification and bear responsibility for their decision.” This gives the customs director of a
facility broad authority, but thanks to the last clause of the sentence, “…bear responsibility for their
decision”, many customs officials will be hesitant to use that discretion in fear of making a “wrong”
decision; therefore, they most likely will physically hold and inspect every shipment coming into their zone
3. of control. One facility operating in that fashion can bottleneck an entire section of the
country. Additionally, the provincial customs authority or facility director has broad discretion in
determining the “practical conditions” to conform to. In Vietnam, it is doubtful a customs facility director
will require personnel to facilitate customs procedures during “Tet” (Vietnamese New Year); therefore, for
one week little customs activity occurs at that location.
Indeed, many issues that are problematic to the law on customs were supposedly being addressed by
Circulars 38 and 39 (issued in 2018). In fact, on 10 July 2019 a $21.7 million USAID Trade Facilitation
Program was granted to support the Government of Vietnam to adopt and implement a risk management
approach to customs and specialized inspection agencies, which will strengthen the implementation of the
World Trade Organization's Trade Facilitation Agreement [TFA].[9] The General Department of Vietnam
Customs (GDVC) organized six consultative workshops to gather feedback and recommendations on
amending Circular 38 and Circular 39 - regulation guidance on Vietnam’s Customs Law. The workshops
would help identify the challenges and practical compliance-burdens faced by import-export businesses in
relation to implementation of the circulars.[10] It is evident that between the many iterations of decrees,
circulars, directives, and laws regarding customs and procedures, every agency and business involved in
the process is confused.
Decision 15 (12 May 2017) provides a clear example of the confusion customs officials and businesses
encountered[11]; chiefly, that it did not specify what is considered the “entry gate” for carrying out customs
procedures? Was it the place that goods were imported to, or the port listed on the bill of
lading? Businesses (and officials) were receiving conflicting information and backlogs inevitably
ensued.[12] Decision 23, recently issued 27 June 2019, addressed this issue and specifically identifies the
proper port of entry for each type of transport.[13] CPTPP and EVFTA also affected Decision 23 in that it
amended the type of goods requiring specific inspection procedures to comply with CPTPPs input-
materials-for-production provision, and also EVFTAs (and CPTPPs) stricter requirements regarding
potentially environmentally-hazardous materials.[14]
With the myriad regulations affecting customs, how can either the CPTPP or EVFTA assist Vietnam in
resolving the predicament? Statutorily, the EVFTA already has. It mirrors portions of the TFA (such as
creating trade facilitation committees), but also goes one step further in requiring Vietnam to comply with
Article 2.12, in which Vietnam “…shall administer in a uniform, impartial and reasonable manner all its
laws, regulations, judicial decisions and administrative rulings pertaining to…issues
affecting…distribution, transportation…warehousing inspection…or other use of goods for customs
purposes.” This section of the EVFTA is forcing Vietnam to take a hard look at their current system, and
streamline and consolidate all their varying regulations concerning customs administration for
efficiency. A quick solution Vietnam can implement now to help alleviate physical storage problems is
EVFTA Article 2.15 which allows foreign pharmaceutical companies to establish their own warehouses
inside Vietnam.[15] If Vietnam declares those warehouses as “customs operational locations”, that would
free-up other customs warehousing space for other inventory.
Private Sector Must Be Engaged
4. Outside of the regulatory environment, private businesses have a crucial role in relieving bottlenecks. Even
if everything flows smoothly and correctly through the government customs process and goods are cleared,
it takes private businesses to physically move those goods out to make room for others. If the trucking
company hired to move containers does not “work” on weekends, is short-staffed, can’t find anyone to
work, drivers call out sick, etc., those containers do not move—they sit there. Many of the transport barges
moving along the Saigon River are private contractors. You can see their entire family lives and works on
that barge. If that barge does not want to work that day, it is not going to work. While most of the port
terminal operations are conducted by State-owned enterprises (SOEs), they still struggle with general
employment issues that affect port operations and add to the bottleneck issue as well.
Government can provide a statutory environment for success, but without private enterprise completing the
circle, nothing will be resolved. Perhaps an incentive system for non-traditional work days for private
contractors can help the situation; better screening of potential employees; requirements specifically
spelled-out; any and all solutions need to be examined. The bottom-line is while regulatory efficiency is
needed to allow for the legal and operational environment to flow seamlessly, the private sector must close
the loop.
Summary
There is a regulatory quagmire surrounding Vietnam’s customs arena. The TFA is intended to assist
developing and under-developed nations (primarily) with their trade processes to better facilitate trade on
a global level so that all parties benefit. Vietnam’s growing economy and role as a Southeast-Asian trade
hub are requiring substantial changes to current regulations and processes. Only a few examples of the
many that could be given show that while Vietnam is making strides with reform, they need to accelerate
that change. It cannot be haphazardly done, though. It must be structured, reasonable, and determined with
both governmental and private sector collaboration. Vietnam followed that exact process for obtaining
CPTPP and EVFTA. Those agreements should be the primary guiding documents for Vietnam to reform
their customs legislation to, as they will affect Vietnam’s economic growth exponentially. They can
provide the framework for statutory solutions to many of the customs issues Vietnam faces; however,
without private-sector buy in, those statutory solutions cannot be efficiently implemented. The entire
customs-cycle must be embedded into the mindset and carried out at the individual level for there to be a
truly systemic change.
Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any other
lawyers in our office listing if you have any questions or want to know more details on the above. Dr. Oliver
Massmann is the General Director of Duane Morris Vietnam LLC.
THANK YOU !