The new investment law in Vietnam aims to create a more attractive investment environment by streamlining procedures, consolidating conditional business sectors, and removing the requirement for an investment registration certificate for M&A transactions. This will reduce burdens and unexpected requirements for investors. The law fits within Vietnam's efforts to integrate into the global economy through trade agreements and reforms to improve competitiveness by reducing administrative procedures and adopting international standards. However, the effectiveness of the new law remains to be seen pending implementing decrees.

1. Lawyer in Vietnam Oliver Massmann Core Features of new
Investment Law for Investors
1) In your opinion, what are the most important features of the new investment law
from an investor’s perspective?
It is considered as the most-investor friendly investment law ever in Vietnam. It provides clearer
investment procedure timeline, consolidated conditional business sectors, defined capital ratio to
be qualified as foreign investors which determines which licensing procedure applies. Notably, it
explicitly states that there would be no investment registration certificate required for M&A
transaction.
2) What impact do you expect these to have? How effective do you think this law will
be?
The investment environment will become more attractive. Investors would face less burdens and
unexpected statutory requirements. A new wave of M&A is expected to come. However, the real
effectiveness of this law would need to be assessed at a later stage when the implementing
decrees are issued. As long as these documents have not been adopted, positive changes that the
new investment law is said to bring are just theoretical.
3) How does this law fit in with the current investment climate of Vietnam, and the
growth and development path the country is taking?
Vietnam is making great efforts to integrate into the world’s economy. The EU-Vietnam FTA is
at the final stage whereas the TPP is also expected to be concluded soon. The Government of
Vietnam is fiercely improving the business and investment environment and making great
attempts to achieve key economic indicators of top regional countries until 2016. Resolution No.
19/NQ-CP/2015 of the Government dated 12 March 2015 has set out the Government’s strong
commitments and positive changes to improve the business environment and strengthen the
economy’s ability to compete in 2015 and 2016 by pushing for reforms to reduce time-
consuming and burdensome administrative procedures; enhancing governmental offices’
transparency and accountability; and adopting international standards. These positive changes
could be seen clearly in the tax, insurance and customs related sectors.
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you
have any questions or want to know more details on the above. Oliver Massmann is the General
Director of Duane Morris Vietnam LLC.

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