[Legal Updates] The remarkable news in May 2020

LEGAL UPDATES

[Legal Updates] The remarkable news in May 2020

1| Our prominent legal articles in May, 2020

Under the impact of Covid-19, not only the tourism industry of Vietnam but also the world has suffered unprecedented heavy losses. However, this is an opportunity to conduct M&A transactions in the hospitality sector. Therefore, in May 2020, Apolat Legal has published a handbook which has the title “Cross-Border M&A activities in Vietnam: A glance in hospitality sector”. By our experience and evaluation in the progress of advisory for the clients who are the tourism real estate development and operating companies in Vietnam, we summarized some brief information and legal framework related to a M&A deal in the hospitality sector. To read the entire content of this handbook, please visit here.

Additionally, in May, 2020, our personnel had some remarkable, specifically:

  • Lawyer Dinh Quang Long with the Article “Business lines of foreign-invested enterprises”, provides some notable information for the foreign investors when investing in Vietnam. To read the entire article, please visit here.
  • LL.M Tran Chau Hoai Han with the Article “Overview about IP regulations under EVFTA in comparison with Vietnamese IP framework”, has provide some inconsistancies between EVFTA and Vietnamese laws in IP issues. To read the entire article, please visit here.

2| The remarkable news in May 2020

On May 29th, 2020, Prime Minister Nguyen Xuan Phuc signed Resolution No. 84/NQ-CP on tasks and solutions to continue to resolve the difficulties for manufactures and business, as well as enhance disbursement of public investment and ensure not only social order but also safety in the circumstance of the Covid-19 pandemic.

Some notable policies mentioned in Resolution No. 84 /NQ-CP, include:

  • To reduce 15% of the payable land rent of 2020 for enterprises, organizations, households and individuals that have stopped manufacture and business due to the impact of Covid-19 epidemic, being directly leased land by the State under the Decision, the Contract of the competent state authorities with the annual rent payment method;
  • To reduce 2% interest rates for direct loans, indirect loans for small and medium enterprises from the Small and Medium Enterprises Development Fund;
  • To allow experts, enterprises managers, investors, high-tech workers who are foreigners working in investment and business projects in Vietnam, to enter Vietnam to maintain the manufacture and business activities of the enterprises, if ensuring its compliance with the regulations on epidemic prevention and control. It is strictly forbidden to discriminate against foreigners living and working in Vietnam;
  • To extend the work permits for experts, enterprises managers, technical workers who are foreigners working in enterprises; and grant new work permits to experts, enterprises managers, technical workers who are foreigners to replace ones are not allowed to enter or not return to Vietnam.

Besides, the Government also provides policies that will be submitted to the Standing Committee of the National Assembly and the National Assembly for consideration and decision. The highlight is the 30% reduction in corporate income tax of 2020 for small and micro enterprises to support in the context of the Covid-19 pandemic.

The policies stated in Resolution No. 84/NQ-CP will be implemented by Ministries, central and local agencies.

3| The remarkable executed legislations in May, 2020

No. DOCUMENT TITLE EXECUTION DATE  EFFECTIVE DATE
1.      Decree No. 53/2020/NĐ-CP dated May 05th, 2020 on environmental protection fee on wastewater  05/05/2020 01/07/2020
2.      Decree No. 58/2020/NĐ-CP dated May 27th, 2020 on the rate of contribution to the occupational accident and disease insurance fund  27/05/2020 15/07/2020

 

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