Author: Vu Mai Trang

Vietnam: Remarkable changes in the new Law on Enterprises

October 27, 2020

By Trang Nguyen  – Associate | Attorney at Law

 

On June 17, 2020, the National Assembly officially passed a new Law on Enterprises (“New Law”) to replace the current Law on Enterprises. The New Law (effective from  January 1, 2021) is expected to make a breakthrough in improving the corporate governance, enhance the enterprise’s initiative and create favourable conditions for foreign-invested enterprises to operate in Vietnam.

Reduce business registration procedures

The New Law reducing a number of administrative procedures, including, among others, eliminating the procedure for reporting changes in the information of the enterprise’s manager and the procedure for notification of seal samples with the business registration office to post it publicly on National Business Registration Portal before using.

In addition, regarding the method of enterprise registration, apart from the direct registration method at the business registration authority, Article 26 of the New Law added two other registration methods, which are registration via postal service and registration through the electronic information network, with legal validity equivalent to a hard copy.

Supplemental provisions on the obligations of the legal representatives

The New Law requires the company’s charter to specify the quantity, managerial title and rights and obligations of each legal representative. In case the division of rights and obligations of each legal representative is not clearly specified in the charter, each legal representative of the enterprise will be considered a duly authorised representative of the enterprise before a third party and all the legal representatives are jointly liable for any damage caused to the enterprise in accordance with the laws.

Changing regulation on term of capital contribution with assets

The New Law introduces new regulation on the term for capital contribution with assets of members/ shareholders. In particular, the term for capital contribution of the members/ shareholders remain 90 days from the date of issuance of the Enterprise Registration Certificate, but for members/ shareholders contributing capital with assets, the time for transferring, importing assets contributed as capital, implementing administrative procedures to transfer the ownership of such assets will not be counted to ensure the feasibility of contributing capital with assets of such members/ shareholders.

Screenshot 2020-10-27 at 1.03.59 PM
Issuance of bonds

Under the New Law, limited liability companies and joint stock companies is allowed to issue bonds. Limited liability companies and joint stock companies that are not public companies shall carry out the procedures for a private offering of bonds according to the provisions of the New Law, while the private offering of bonds by public joint-stock companies, other organizations or the public offering of bonds will follow the law on securities. It is noted that only strategic investors and professional securities investors are entitled to buy, be transferred bonds via private placement.

Expanding rights and scope of shareholders

Rather than holding 10 percent or more of the total amount of ordinary shares for at least 06 consecutive months or a smaller percentage as stipulated in the charter, the New Law prescribed that a shareholder or group of shareholders will only need to own five percent or more of the total amount of ordinary shares or a smaller percentage as stipulated in the company’s charter without a minimum holding period to exercise their right of accessing information regarding the operation of the enterprise, except for documents related to trade secrets, business secrets.

However, the right to nominate members to the board of directors, board of supervisors still reserves for shareholders or groups of shareholders owning 10 percent or more of the total amount of ordinary shares, unless otherwise stipulated in the charter with a smaller ratio.

Non-voting depositary receipt

For the first time, the Non-Voting Depositary Receipt (NVDR) is recorded in the content of the enterprise law. It is considered one of the remarkable points of the New Law.

Essentially, NVDR enjoys same economic benefits and obligations as ordinary shares, with the exception of voting rights. It is expected that a subsidiary of the Ho Chi Minh City Stock Exchange (HOSE) will be established and purchase these ordinary shares from  companies, then issue NVDR’s to sell to investors in need. Detailed regulations shall be specified in the guiding decrees.

NVDR’s are expected to attract more indirect investment from foreign investors into companies with limited foreign ownership, but still ensures the target of state management as the investors owning NVDR’s do not have voting rights, and shall therefore  not interfere in the operations of companies.

The New Law also reforms certain provisions on converting private enterprises into limited liability companies, joint stock companies, partnerships and converting household-businesses into enterprises, etc.

https://www.inhousecommunity.com/article/vietnam-remarkable-changes-new-law-enterprises/?idU=1

Download PDF

THÔNG BÁO NGÀY TRỢ GIÚP PHÁP LÝ MIỄN PHÍ

24/09/2020

Công ty Luật TNHH bizconsult (sau đây gọi tắt là “bizconsult”) xin trân trọng thông báo về Ngày Trợ Giúp Pháp Lý miễn phí năm 2020.

Thực hiện nội dung tại Thông báo số 399/TB-ĐLSHN ngày 14/09/2020 của Đoàn Luật sư thành phố Hà Nội về việc tổ chức Trợ giúp pháp lý miễn phí hưởng ứng ngày truyền thống Luật sư Việt Nam và ngày pháp luật năm 2020, bizconsult tổ chức Ngày Trợ Giúp Pháp Lý miễn phí cho mọi tổ chức, cá nhân có nhu cầu trợ giúp pháp lý trong các lĩnh vực liên quan đến pháp luật, trừ lĩnh vực kinh doanh, thương mại, với thông tin cụ thể như sau:

Thời gian:

Từ 8h30 đến 12h30, thứ Năm ngày 08/10/2020.

Địa điểm:

Trụ sở Công ty Luật TNHH bizconsult, số 20 Trần Hưng Đạo, phường Phan Chu Trinh, quận Hoàn Kiếm, thành phố Hà Nội.

Lĩnh vực thực hiện trợ giúp pháp lý:

Lao động; Bảo hiểm; Hôn nhân gia đình; Quy trình và thủ tục khởi kiện trong lĩnh vực dân sự (trừ vụ việc kinh doanh, thương mại) tại Tòa án nhân dân.

Liên hệ

Mọi thắc mắc xin vui lòng liên hệ Ms. Trang (039.413.9468) hoặc Mr. Kiên (0978.952.461) để được hướng dẫn chi tiết.

Công ty Luật TNHH bizconsult mong muốn mang những kiến thức, trí tuệ, tâm huyết và sự hiểu biết pháp luật của mình để phục vụ cho cộng đồng xã hội, góp phần vào sự phát triển của Liên đoàn Luật sư Việt Nam nói chung và Đoàn luật sư TP Hà Nội nói riêng.

Download PDF

The Law on Investment 2020

Đăng ngày 10/08/2020.

Lưu ý: “bài viết này chỉ phát hành tiếng Anh cho tạp chí nước ngoài Asian – Mena Counsel”

The current economic situation in Vietnam has revealed various disadvantages and loopholes in the legal framework, especially under the backbone law on investment. Though, the Law on Investment 2014 (LOI 2014) has been in effect for six years, new regulations are needed to create a more transparent, favourable and sustainable investment environment. On June 17, 2020, the National Assembly of Vietnam adopted the Law on Investment (LOI 2020), which will take effect from January 1, 2021 with the following salient changes:

List of prohibited and conditional business lines

Debt collection services has been added to the list of prohibited business lines as numerous service providers have abused this business activity to extort properties or to manipulate in the black lending market, causing public and security disorder.

For the list of conditional business lines, the LOI 2020 removes 22 business lines that are deemed to have no direct impact on national defence and security, social morality and public health, or which are already controlled by technical regulations and standards. Most popular businesses no longer belonging to the conditional list include franchising, logistics services, commercial arbitration, debt trading services, shipping agency service, medical equipment inspection service and aesthetic plastic surgery services. In contrast, it supplements a number of business activities to the list including insurance auxiliary activities, fishing vessel registry, architectural services, piping water supply service, data centre services, electronic identification and authentication services, provision of payment service without using customers’ payment accounts, among others.

Concretise market access commitment to foreign investors

Market access commitments are now specifically addressed under the LOI 2020. In particular, the government must officially issue a list of business lines not open to foreign investors or which imposed conditions. Accordingly, foreign investors who wish to engage in business lines limited to foreign investors shall meet the conditions of: (i) foreign ownership room, (ii) statutory investment forms, (iii) scope of investment activities; (iv) capacity of foreign investors and business partners participating in investment activities and other regulatory conditions. For all other business activities, foreign investors are equal with domestic investors in all respects. New regulations on detailed list limited to foreign investors under LOI 2020 may improve the transparency and feasibility in applying Vietnam’s market opening commitment under the next-generation FTAs.

Favourable mechanism for innovative start-ups

The definition of innovative start-up investment project is given as a project implementing ideas based on the exploitation of intellectual property, technology, new business models and rapid growth potential. Such projects are entitled to investment incentives. Foreign investors who set up medium- and small-sized innovative start-ups are not required to submit investment project nor obtain an Investment Registration Certificate for the purpose of setting up enterprises.

Deemed foreign investors

Previously, the threshold to consider a foreign-invested economic organisation (EO) as a foreign investor was 51 percent or more of charter capital of target company held by (a) foreign investors; or (b) EO which 51percent or more of its charter capital is owned by foreign investors; or (c) foreign investors and EO stated in (b) jointly. Consequently, such EO must satisfy the investment conditions and comply with investment procedures applicable to foreign investors when participating in incorporation of another EO or acquiring interest in an existing EO or investing in the form of BCC. The LOI 2020 deceases this threshold to 50 percent to comply with controlling ratio under newly adopted revised Law on Enterprise.

Cases where M&A approval is required

The LOI 2020 specifies instances where foreign investors must obtain M&A approval before acquiring an ownership interest in the target company as follows:

  1. an increase of foreign ownership in the target company engaging in business lines included in the lists set limited to foreign investors;
  2. an increase of foreign ownership in the target company from under 50 percent to exceeding 50 percent of the charter capital;
  3. an increase of foreign ownership in the target company which already exceeds 50 percent of the charter capital; or
  4. the target company is using land located at sea-islands, borderlands and coastal areas and other areas having an effect on national security and defence.

The change is expected to overcome ambiguity of the provisions on cases requiring M&A Approval under the LOI 2014.

Mechanism for selecting investors for implementing investment project

To ensure the uniformity and consistency of the legal system, the LOI 2020 clarifies principles, respective conditions applied for each method of selection of investors for implementing land-use project, including: (i) auction for land use rights; (ii) bid for investor selection; (iii) approval of investor.

https://www.inhousecommunity.com/article/law-investment-2020/

Download pdf version

The Law on Investment 2020

August 10, 2020

The current economic situation in Vietnam has revealed various disadvantages and loopholes in the legal framework, especially under the backbone law on investment. Though, the Law on Investment 2014 (LOI 2014) has been in effect for six years, new regulations are needed to create a more transparent, favourable and sustainable investment environment. On June 17, 2020, the National Assembly of Vietnam adopted the Law on Investment (LOI 2020), which will take effect from January 1, 2021 with the following salient changes:

List of prohibited and conditional business lines

Debt collection services has been added to the list of prohibited business lines as numerous service providers have abused this business activity to extort properties or to manipulate in the black lending market, causing public and security disorder.

For the list of conditional business lines, the LOI 2020 removes 22 business lines that are deemed to have no direct impact on national defence and security, social morality and public health, or which are already controlled by technical regulations and standards. Most popular businesses no longer belonging to the conditional list include franchising, logistics services, commercial arbitration, debt trading services, shipping agency service, medical equipment inspection service and aesthetic plastic surgery services. In contrast, it supplements a number of business activities to the list including insurance auxiliary activities, fishing vessel registry, architectural services, piping water supply service, data centre services, electronic identification and authentication services, provision of payment service without using customers’ payment accounts, among others.

Concretise market access commitment to foreign investors

Market access commitments are now specifically addressed under the LOI 2020. In particular, the government must officially issue a list of business lines not open to foreign investors or which imposed conditions. Accordingly, foreign investors who wish to engage in business lines limited to foreign investors shall meet the conditions of: (i) foreign ownership room, (ii) statutory investment forms, (iii) scope of investment activities; (iv) capacity of foreign investors and business partners participating in investment activities and other regulatory conditions. For all other business activities, foreign investors are equal with domestic investors in all respects. New regulations on detailed list limited to foreign investors under LOI 2020 may improve the transparency and feasibility in applying Vietnam’s market opening commitment under the next-generation FTAs.

Favourable mechanism for innovative start-ups

The definition of innovative start-up investment project is given as a project implementing ideas based on the exploitation of intellectual property, technology, new business models and rapid growth potential. Such projects are entitled to investment incentives. Foreign investors who set up medium- and small-sized innovative start-ups are not required to submit investment project nor obtain an Investment Registration Certificate for the purpose of setting up enterprises.

Deemed foreign investors

Previously, the threshold to consider a foreign-invested economic organisation (EO) as a foreign investor was 51 percent or more of charter capital of target company held by (a) foreign investors; or (b) EO which 51percent or more of its charter capital is owned by foreign investors; or (c) foreign investors and EO stated in (b) jointly. Consequently, such EO must satisfy the investment conditions and comply with investment procedures applicable to foreign investors when participating in incorporation of another EO or acquiring interest in an existing EO or investing in the form of BCC. The LOI 2020 deceases this threshold to 50 percent to comply with controlling ratio under newly adopted revised Law on Enterprise.

Cases where M&A approval is required

The LOI 2020 specifies instances where foreign investors must obtain M&A approval before acquiring an ownership interest in the target company as follows:

  1. an increase of foreign ownership in the target company engaging in business lines included in the lists set limited to foreign investors;
  2. an increase of foreign ownership in the target company from under 50 percent to exceeding 50 percent of the charter capital;
  3. an increase of foreign ownership in the target company which already exceeds 50 percent of the charter capital; or
  4. the target company is using land located at sea-islands, borderlands and coastal areas and other areas having an effect on national security and defence.

The change is expected to overcome ambiguity of the provisions on cases requiring M&A Approval under the LOI 2014.

Mechanism for selecting investors for implementing investment project

To ensure the uniformity and consistency of the legal system, the LOI 2020 clarifies principles, respective conditions applied for each method of selection of investors for implementing land-use project, including: (i) auction for land use rights; (ii) bid for investor selection; (iii) approval of investor.

https://www.inhousecommunity.com/article/law-investment-2020/

Download pdf version

VIETNAM: RELEASE OF LONG-AWAITED GUIDANCE ON COMPETITION LAW

Lưu ý: “bài viết này chỉ phát hành tiếng Anh cho tạp chí nước ngoài Asian – Mena Counsel”

July 10, 2020

The long-waited guidance on the Competition Law — the Decree 35/2020/ND-CP (Decree 35) — was issued on March 24, 2020 with effect from May 15, 2020, and casts light on certain prominent provisions of the Competition Law, such as economic concentration.

Under the Competition Law, economic concentration includes, among other things, acquisition of a company to the extent of controlling or dominating the acquired company or its business line. Decree 35 now further defines “controlling or dominating” as:

  • holding up to 50 percent voting right shares, or 50 percent total assets related to any or all business line, of acquired company; or
  • having right to, directly or indirectly, appoint or remove majority of member(s) or chairman of the board, or chief executive officer, or amend the charter, or decide critical issues, of acquired company.

Under Decree 35, the thresholds that trigger mandatory pre-merger notification include:

  • involved party’s total assets in the Vietnam market exceeding VND3,000 billion in the preceding fiscal year;
  • involved party’s total turnover exceeding VND3,000 billion in the preceding fiscal year;
  • the value of the transaction exceeding VND1,000 billion (not applicable in case of transaction outside the territory of Vietnam); or
  • combined market share exceeding 20 percent in preceding fiscal year.

These thresholds are more stringent for transactions involving credit institutions, securities or insurance companies, in particular:

  • involved parties’ total assets in the Vietnam market exceeding VND15,000 billion;
  • involved credit institutions’ total assets exceeding 20 percent of the whole credit institution system;
  • turnover of involved insurance companies exceeding VND10,000 billion, or of involved securities companies exceeding VND3,000 billion;
  • involved credit institutions’ turnover exceeding 20 percent of the whole credit institution system;
  • value of transaction involving credit institution exceeding VND3,000 billion or 20 percent of credit institution system’s total charter capital in the preceding fiscal year; or
  • the combined market share exceeding 20 percent in preceding fiscal year.

Screenshot 2020-06-10 at 3.53.27 PM

After the 30 days upon the pre-merger notification filling, an economic concentration transaction may be implemented if it falls under either of below cases, among others:

  • the combined market share is below 20 percent;
  • the combined market share exceeds 20 percent but post-merger aggregate of square number of each involved parties’ market shares is less than 1,800;
  • the combined market share exceeds 20 percent, and post-merger aggregate of square number of each involved parties’ market shares exceeds 1,800, but the amplitude increase of the aggregate of square number of each involved parties’ market shares between pre-merger and post-merger is below 100; or
  • involved parties in relevant supply/manufacturing chain have 20 percent combined market share.

Otherwise, an economic concentration shall undergo an official review to determine whether it may cause significant competition-restraining impact and subsequently should be banned. The official review shall base on, among others, market share combination, threat to cause or reinforce market power, ability to increase ability for correlation or collusion, relationship between involved parties in the manufacturing and supply chain, competition advantage, ability to increase price or profit margin ratio.

In addition, Decree 35 also introduces various criteria in determining the significant competition-restraining impact on market of a cartel conduct, including, among others, development of market share of involved parties, barriers to market access or expansion, restriction on research, development and technological innovations, increase of costs and time for customers to purchase goods or services.

In respect of competition dispute settlement, Decree 35 gives further detail on requirements on evidence collection, usage and examination. Decree 35 further provides for procedure on implementing certain interim injunctions during competition investigation.

https://www.inhousecommunity.com/article/vietnam-release-long-awaited-guidance-competition-law/

Download pdf version

Vietnam: Release of long-awaited guidance on Competition Law

July 10, 2020

The long-waited guidance on the Competition Law — the Decree 35/2020/ND-CP (Decree 35) — was issued on March 24, 2020 with effect from May 15, 2020, and casts light on certain prominent provisions of the Competition Law, such as economic concentration.

Under the Competition Law, economic concentration includes, among other things, acquisition of a company to the extent of controlling or dominating the acquired company or its business line. Decree 35 now further defines “controlling or dominating” as:

  • holding up to 50 percent voting right shares, or 50 percent total assets related to any or all business line, of acquired company; or
  • having right to, directly or indirectly, appoint or remove majority of member(s) or chairman of the board, or chief executive officer, or amend the charter, or decide critical issues, of acquired company.

Under Decree 35, the thresholds that trigger mandatory pre-merger notification include:

  • involved party’s total assets in the Vietnam market exceeding VND3,000 billion in the preceding fiscal year;
  • involved party’s total turnover exceeding VND3,000 billion in the preceding fiscal year;
  • the value of the transaction exceeding VND1,000 billion (not applicable in case of transaction outside the territory of Vietnam); or
  • combined market share exceeding 20 percent in preceding fiscal year.

These thresholds are more stringent for transactions involving credit institutions, securities or insurance companies, in particular:

  • involved parties’ total assets in the Vietnam market exceeding VND15,000 billion;
  • involved credit institutions’ total assets exceeding 20 percent of the whole credit institution system;
  • turnover of involved insurance companies exceeding VND10,000 billion, or of involved securities companies exceeding VND3,000 billion;
  • involved credit institutions’ turnover exceeding 20 percent of the whole credit institution system;
  • value of transaction involving credit institution exceeding VND3,000 billion or 20 percent of credit institution system’s total charter capital in the preceding fiscal year; or
  • the combined market share exceeding 20 percent in preceding fiscal year.

Screenshot 2020-06-10 at 3.53.27 PM

After the 30 days upon the pre-merger notification filling, an economic concentration transaction may be implemented if it falls under either of below cases, among others:

  • the combined market share is below 20 percent;
  • the combined market share exceeds 20 percent but post-merger aggregate of square number of each involved parties’ market shares is less than 1,800;
  • the combined market share exceeds 20 percent, and post-merger aggregate of square number of each involved parties’ market shares exceeds 1,800, but the amplitude increase of the aggregate of square number of each involved parties’ market shares between pre-merger and post-merger is below 100; or
  • involved parties in relevant supply/manufacturing chain have 20 percent combined market share.

Otherwise, an economic concentration shall undergo an official review to determine whether it may cause significant competition-restraining impact and subsequently should be banned. The official review shall base on, among others, market share combination, threat to cause or reinforce market power, ability to increase ability for correlation or collusion, relationship between involved parties in the manufacturing and supply chain, competition advantage, ability to increase price or profit margin ratio.

In addition, Decree 35 also introduces various criteria in determining the significant competition-restraining impact on market of a cartel conduct, including, among others, development of market share of involved parties, barriers to market access or expansion, restriction on research, development and technological innovations, increase of costs and time for customers to purchase goods or services.

In respect of competition dispute settlement, Decree 35 gives further detail on requirements on evidence collection, usage and examination. Decree 35 further provides for procedure on implementing certain interim injunctions during competition investigation.

https://www.inhousecommunity.com/article/vietnam-release-long-awaited-guidance-competition-law/

Download pdf version

BẢN TIN PHÁP LÝ – THÁNG 06, 2020 – TÓM TẮT DỰ THẢO NGHỊ ĐỊNH QUY ĐỊNH VỀ CƠ CHẾ THỬ NGHIỆM CÓ KIỂM SOÁT HOẠT ĐỘNG CÔNG NGHỆ TÀI CHÍNH (FINTECH) TRONG LĨNH VỰC NGÂN HÀNG

Đăng ngày 23/06/2020

Mới đây, Ngân hàng Nhà nước ban hành Dự thảo Nghị định quy định về cơ chế thử nghiệm có kiểm soát hoạt động công nghệ tài chính (Fintech) trong lĩnh vực ngân hàng để lấy ý kiến. Trong bối cảnh công nghệ tài chính phát triển nhanh chóng kéo theo nhiều rủi ro tiềm ẩn, bản dự thảo có thể được coi là một trong những viên gạch đầu tiên, đặt nền móng cho việc xây dựng khuôn khổ pháp lý cho hoạt động Fintech tại Việt Nam.

1. Định nghĩa Cơ chế thử nghiệm công nghệ tài chính (Fintech)

Theo định nghĩa tại Dự thảo, Cơ chế thử nghiệm Fintech (sau đây gọi tắt là Cơ chế thử nghiệm) là một cơ chế pháp lý được thiết lập bởi Chính phủ trong đó cho phép các tổ chức tín dụng, công ty cung ứng giải pháp Fintech và tổ chức đổi mới sáng tạo khác được thực hiện thử nghiệm trực tiếp các sản phẩm, dịch vụ Fintech trong môi trường được kiểm soát và giám sát chặt chẽ bởi các cơ quan quản lý có liên quan.

2. Đối tượng và các lĩnh vực được tham gia Cơ chế thử nghiệm

Ba nhóm đối tượng có liên quan tới hoạt động Fintech trong lĩnh vực ngân hàng dự kiến được tham gia thử nghiệm bao gồm các tổ chức tín dụng, công ty Fintech/Công ty cung ứng giải pháp Fintech hợp tác với ngân hàng; Công ty Fintech/Công ty cung ứng giải pháp Fintech độc lập. Các lĩnh vực Fintech được tham gia Cơ chế thử nghiệm là thanh toán, tín dụng, cho vay ngang hàng (P2P Lending), hỗ trợ định danh khách hàng; giao diện lập trình ứng dụng mở (Open API), các giải pháp ứng dụng công nghệ đổi mới sáng tạo như Blockchain, các dịch vụ khác hỗ trợ hoạt động ngân hàng (chấm điểm tín dụng, tiết kiệm, huy động vốn…).

Giải pháp Fintech của các đối tượng xin tham gia thử nghiệm phải đáp ứng toàn bộ các tiêu chí:

  • Là giải pháp mà hoàn toàn chưa có hoặc một phần chưa có quy định pháp lý điều chỉnh;
  • Là giải pháp Fintech sáng tạo lần đầu tiên được áp dụng tại Việt Nam hoặc giải pháp Fintech được ứng dụng cho dịch vụ mới, có tính sáng tạo cao góp phần đem mang lại lợi ích cho người sử dụng dịch vụ tại Việt Nam, đặc biệt là các giải pháp hỗ trợ và thúc đẩy mục tiêu mở rộng phổ cập tài chính;
  • Là giải pháp được thiết kế quản lý rủi ro tốt, không có hoặc ít có khả năng gây ra tác động xấu tới các tổ chức tài chính nói riêng và cả hệ thống tài chính nói chung; có phương án xử lý, khắc phục các rủi ro xảy ra trong quá trình thử nghiệm;
  • Là giải pháp đã được công ty cung ứng giải pháp hoặc tổ chức tín dụng thực hiện các biện pháp đánh giá phù hợp và chính xác chức năng, công dụng và tính hữu ích;
  • Là giải pháp có tính khả thi và tính thương mại cao, có kế hoạch cung ứng ra thị trường cụ thể sau khi hoàn thành thử nghiệm;
  • Là giải pháp không tiềm ẩn rủi ro gây bất ổn đến thị trường tài chính – ngân hàng nói riêng và nền kinh tế nói chung.

3. Phạm vi thử nghiệm

Thời gian thử nghiệm các giải pháp Fintech là 01-02 năm tùy từng giải pháp và lĩnh vực cụ thể, tính từ thời điểm được Thủ tướng Chính phủ chấp thuận thử nghiệm. Tùy thuộc vào các giải pháp Fintech cụ thể, Ngân hàng Nhà nước sẽ thảo luận với tổ chức tham gia thử nghiệm để quyết định phạm vi cho hoạt động của các giải pháp bao gồm đồng thời 1 trong 3 yếu tố sau: Về địa lý, về hạn mức giao dịch và về số lượng khách hàng tham gia sử dụng dịch vụ.

4. Đăng kí tham gia Cơ chế thử nghiệm

Tổ chức tín dụng, công ty Fintech/công ty cung ứng giải pháp Fintech phải thực hiện việc đăng kí khi tham gia Cơ chế thử nghiệm, hồ sơ đăng kí bao gồm: (1) Đơn đăng kí tham gia cơ chế thử nghiệm Fintech; (2) Giấy phép thành lập hoặc giấy chứng nhận đăng kí doanh nghiệp và không đang trong quá trình chia, tách, hợp nhất, sáp nhập, chuyển đổi, giải thể, phá sản theo quyết định đã được ban hành; (3) Văn bản mô tả về Cơ cấu tổ chức và quản lý điều hành đối với Giải pháp Fintech đăng kí thử nghiệm; (4) Đề án mô tả Giải pháp Fintech.

Ngân hàng Nhà nước là cơ quan đầu mối tiếp nhận, thẩm định hồ sơ, tham mưu, trình Thủ tướng Chính phủ cấp hoặc thu hồi giấy chứng nhận tham gia Cơ chế thử nghiệm.

5. Quy định về giám sát rủi ro, tổng kết đánh giá và xác nhận tốt nghiệp các tổ chức tham gia thử nghiệm

Kết thúc thời gian thử nghiệm, các tổ chức tham gia thử nghiệm phải xây dựng báo cáo tổng kết, bao gồm các thông tin: Sản phẩm đầu ra thử nghiệm, các chỉ số đánh giá thử nghiệm về thành công hay thất bại của giải pháp và kết quả thử nghiệm; báo cáo sự cố và giải quyết khiếu nại của khách hàng và bài học rút ra từ việc thử nghiệm. Ngân hàng Nhà nước căn cứ báo cáo tổng kết và quá trình giám sát trình Thủ tướng Chính phủ phương án xử lý bao gồm dừng tham gia thử nghiệm; cấp giấy chứng nhận hoàn thành thử nghiệm hoặc gia hạn thử nghiệm. Việc được cấp giấy Chứng nhận hoàn thành thử nghiệm là căn cứ để các tổ chức triển khai chính thức ra thị trường. Đồng thời kết quả triển khai thử nghiệm dịch vụ cũng là căn cứ để các cơ quan nhà nước triển khai xây dựng hoàn thiện cơ sở pháp lý phù hợp với từng loại dịch vụ và công nghệ Fintech.

Download pdf version

LEGAL UPDATE – JUNE 2020 – SUMMARY OF THE DRAFT DECREE ON CONTROLLED TESTING MECHANISM FOR FINANCIAL TECHNOLOGY ACTIVITIES (FINTECH) IN THE BANKING SECTOR

June 23, 2020

Recently, the State Bank of Vietnam (SBV) issued a Decree on Controlled Testing Mechanism for Financial Technology Activities (Fintech) in the banking sector for public opinion. In the context of fast-growing financial technology entailing many potential risks, the draft decree can be considered as one of the first bricks, laying the foundations for building a regulatory framework for Fintech in Vietnam.

1. Definition of Controlled Testing Mechanism for Financial Technology Activities (Fintech)

According to the draft decree, the Fintech Testing Mechanism (hereinafter referred to as the Testing Mechanism) is a legal mechanism established by the Government that allows credit institutions, Fintech solution companies and innovative organization to directly conduct Fintech product and services testing in an environment that is strictly controlled and monitored by the relevant regulatory agencies.

2. Subjects and fields allowed to participate in the Testing Mechanism

Three group of subjects involved in Fintech activities in the banking sector are expected to be allowed to participate in the test include: credit institutions (credit institutions) as prescribed in the Law on Credit Institutions 2010; Fintech company/Fintech solution provider cooperating with banks; Fintech company/independent Fintech solution provider. Fintech fields participating in Fintech testing mechanism includes: payment; credit; peer-to-peer lending (P2P Lending); customer identification support; open application programming interface (Open API); innovative application technology solutions such as Blockchain; other services supporting banking activities (such as credit scoring, savings, capital mobilization, etc.).

To be approved to participate in the Fintech Testing Mechanism, the subjects must meet all the following criteria:

  • Being a solution that does not yet exist or is partially unregulated;
  • Being an innovative Fintech solution applied for the first time in Vietnam or a Fintech solution applied for a new, highly innovative service that contributes to the benefit of service users in Vietnam, especially solutions to support and promote the goal of expanding financial universalization;
  • Being a well-designed risk management solution that does not have or is likely to have a negative impact on financial institutions in particular and the financial system in general; have a plan to handle and overcome risks occurring during the testing process;
  • Being a solution that is implemented by Fintech companies/Fintech solution providers or credit institutions with appropriate and accurate assessment of functions, utilities and usefulness;
  • Being a feasible and commercial solution, with a plan to provide specific markets after the completion of the testing process;
  • Being a solution that contains no potential risk of destabilizing financial markets – banks in particular and the economy in general.

3. Scope of testing

The testing time for Fintech solutions is 1-2 years depending on the specific solutions and fields, counting from the time the Prime Minister approves the trial. Depending on the specific Fintech solutions, the SBV shall discuss with the testing organizations to decide the scope for the operation of the solutions, including at the same time or one of three factors: geography, transaction limit and number of customers participating in the service.

4. Registration for participation in the Testing Mechanism 

Credit institutions, Fintech companies/Fintech solution providers must carry out the registration when participating in the Testing Mechanism, the registration dossier includes: (1) Application for participation in Fintech Testing Mechanism; (2) Establishment license or incorporation registration certificate and not in the process of division, separation, consolidation, merger, conversion, dissolution or bankruptcy under an issued decision; (3) Written description of the organizational structure and executive management of the Fintech Solution registered for testing; (4) Scheme describing Fintech Solution.

The SBV is the focal point to receive, appraise dossiers, advise and submit to the Prime Minister for granting or withdrawal of certificates of participation in the Testing Mechanism.

5. Provisions on risk monitoring, reviewing and certifying test completion for organizations

At the end of the testing period, organizations participating in the test must develop a summary report, including information: test output, test evaluation of success or failure of the solution and test results; incident reports and customer complaints, handling and lessons learned from testing. The SBV shall base on the summary report and monitoring process to submit to the Prime Minister the next solution, including: ceasing the test, certifying the test completion or extending the test period. The issuance of the certificate of testing completion is the basis for organizations to officially deploy the solution to the market. At the same time, the results of service testing are also set the ground for state agencies to develop and complete suitable legal framework to each type of Fintech service and application.

Download pdf version

Cập nhật một số thương vụ do đội ngũ luật sư của Bizconsult tư vấn đàm phán thành công

Ngày 15/06/2020

Bizconsult trân trọng giới thiệu ba trong số nhiều thương vụ thành công do các luật sư của chúng tôi tham gia hỗ trợ, tư vấn, đàm phán:

  • Tư vấn một doanh nghiệp hoạt động trong lĩnh vực nhà hàng – khách sạn đàm phán và kí kết thành công Hợp đồng Quản lý Khách sạn (HMA) và Hợp đồng Dịch vụ Kĩ thuật (TSA) với Tập đoàn Khách sạn Rosewood.
  • Tư vấn một công ty 99% vốn đầu tư Nhật Bản đạt được thỏa thuận M&A và Giấy phép kinh doanh cho thuê thiết bị văn phòng.
  • Tư vấn Tập đoàn Lotus đàm phán và kí kết thành công Hợp đồng Liên doanh với công ty NIPPON SUISAN KAISHA (Nhật Bản).

Đội ngũ Luật sư tư vấn về Hợp đồng và Mua bán – Sáp nhập của Bizconsult thực hiện thành công những thương vụ nêu trên bao gồm Cộng sự Cấp cao Huỳnh Hoàng Sang và Cộng sự Nguyễn Trọng Tín dưới sự dẫn dắt của Luật sư Thành viên Cấp cao Lê Hồng Phong. Chúng tôi hân hạnh được đóng vai trò là người đồng hành cùng với khách hàng, đàm phán thành công các thương vụ, đạt được nhiều thỏa thuận chiến lược bất chấp những khó khăn của thị trường sau Đại dịch.

Highlights of successful deals recently consulted by bizconsult’s team

June 15, 2020

Bizconsult proudly highlights three of many successful deals that we have consulted recently:

  • “Advising a hotel owner to successfully negotiated and signed Hotel Management Agreement (HMA) and Technical Services Agreement (TSA) with Rosewood”
  • “Advising a 99% foreign invested company (Japan) to obtain M&A Approval and Trading License for engaging in office equipment leasing”
  • “Advising a local group Lotus Group to successfully negotiated and concluded a JV agreement with NIPPON SUISAN KAISHA, LTD (Japan)”

Bizconsult’s deal and contract team led by Partner Phong Le and mainly supported by Senior Associate Sang Huynh and Associate Tin Nguyen. We are delighted to have worked closely with our clients – providers in many key service sectors to successfully deliver these transactions despite the current challenging post-epidemic economic environment.