How Attorneys in Hanoi Help Foreign Clients Navigate the Thriving Business Landscape

  Hanoi, the vibrant capital of Vietnam, is a city steeped in rich history and culture. In recent years, it has emerged as a dynamic hub for business and investment, drawing significant attention from both domestic and international investors. The city’s remarkable transformation into an economic powerhouse is underpinned by various strengths that make it a compelling choice for those looking to invest. We will explore the strengths of Hanoi as an investment destination, delve into the improvements in its business and investment environment, and shed light on how attorneys in Hanoi play a pivotal role in assisting foreign clients to confidently navigate this thriving landscape.

Strengths of Hanoi: A Beacon for Investment

Hanoi boasts several key strengths that position it as a premier destination for foreign investment. These factors combine to create a compelling case for businesses and investors seeking opportunities in Southeast Asia.

Strategic Location:

Hanoi’s strategic geographical location within Vietnam places it at the heart of the country’s economic activities. It serves as a gateway to the booming markets of the Asia-Pacific region. Proximity to major trading partners such as China, Japan, South Korea, and Singapore makes Hanoi an ideal hub for companies looking to expand their reach.

Stable Political Environment:

Vietnam, and by extension, which Hanoi being capital, has consistently maintained political stability. The government has implemented policies to support economic growth and attract foreign investment, providing a secure environment for businesses to thrive.

Robust Economic Growth:

Hanoi has been a key driver of Vietnam’s impressive economic growth. Its GDP continues to rise, supported by diversification across various industries. The city’s economic resilience is particularly attractive to foreign investors.

Infrastructure Development:

Hanoi has invested significantly in infrastructure development, including transportation networks, industrial zones, and technology parks. This commitment to improving infrastructure enhances the city’s connectivity and accessibility for businesses.

Thriving Tech Ecosystem:

Hanoi is home to a thriving technology ecosystem, with a focus on high-tech industries such as information technology and electronics. This environment encourages innovation and attracts tech-savvy investors.

Educational Excellence:

The city is host to a multitude of prestigious universities and research institutions. This rich educational landscape ensures a skilled and qualified workforce, which is essential for businesses seeking to establish a presence in the region.

Cultural Heritage:

Hanoi’s cultural heritage, with its historic sites, vibrant street markets, and diverse cuisine, adds a unique charm to the city. This cultural richness appeals to tourists and investors alike.

Evolving Business and Investment Environment

Over the years, Hanoi has made significant strides in improving its business and investment environment. These improvements have been instrumental in attracting foreign investors and fostering a conducive atmosphere for business growth.

Streamlined Administrative Procedures:

The government has simplified administrative procedures, reducing bureaucracy and red tape. This streamlining of processes has made it easier for businesses to register and operate in Hanoi.

Investment Incentives:

Hanoi offers a range of incentives to foreign investors, including tax breaks, land use rights, and import-export privileges. These incentives enhance the city’s competitiveness in attracting foreign capital.

Trade Agreements:

Vietnam’s participation in numerous international trade agreements has opened up access to global markets. Investors in Hanoi can leverage these agreements for their international expansion plans.

Intellectual Property Protection:

The protection of intellectual property rights has improved significantly. Stringent measures are in place to safeguard the interests of investors, fostering an environment of trust and security.

Financial Services:

Hanoi has a well-developed financial sector, with numerous banks, financial institutions, and investment funds. Access to financial services is crucial for businesses seeking capital and financial stability.

Role of Attorneys in Hanoi

Navigating the intricate landscape of foreign investment in Hanoi requires a deep understanding of local laws, regulations, and business practices. This is where attorneys in Hanoi come into play, serving as invaluable partners for foreign clients.

Legal Expertise:

Attorneys in Hanoi possess extensive legal knowledge of Vietnam’s regulatory framework and business laws. They are well-versed in international law and can provide expert guidance on compliance, contracts, and due diligence.

Market Insight:

These legal professionals have their fingers on the pulse of Hanoi’s business environment. They can offer insights into market trends, industry-specific challenges, and investment opportunities.

Navigating Regulations:

Foreign investors often encounter complex regulatory requirements when entering a new market. Attorneys in Hanoi can help streamline the process, ensuring compliance with all legal obligations.

Risk Mitigation:

Understanding and mitigating risks is paramount in any business venture. Attorneys can assess potential risks, develop risk management strategies, and provide legal solutions to protect their clients’ interests.

Cultural Bridge:

Attorneys in Hanoi act as cultural intermediaries, bridging the gap between foreign investors and local partners. Their knowledge of local customs and business etiquette can be instrumental in building successful partnerships.

Dispute Resolution:

In the event of disputes or conflicts, attorneys play a crucial role in dispute resolution and legal representation. Their expertise can help clients navigate the legal system effectively.

Network Building:

Attorneys in Hanoi often have extensive networks within the business and legal communities. They can connect foreign clients with potential partners, suppliers, and investors, facilitating business expansion.

Due Diligence:

Conducting thorough due diligence is essential before making any investment. Attorneys can assist in conducting due diligence investigations to assess the viability of an investment opportunity

Hanoi’s strengths as an investment destination, coupled with its evolving business and investment environment, make it an attractive choice for foreign investors. Attorneys in Hanoi play a pivotal role in ensuring that foreign clients can confidently navigate the complex landscape of foreign investment. Their legal expertise, market insights, and ability to mitigate risks contribute to the success of businesses seeking to establish a presence in this thriving city. With the guidance of knowledgeable attorneys, foreign investors can unlock the vast potential that Hanoi has to offer, contributing to the city’s continued economic growth and development.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/library/how-attorneys-in-hanoi-help-foreign-clients-navigate-the-thriving-business-landscape.html

Vietnam Trademark Registration to Protect IP Rights

  Considering Vietnam trademark registration activities, the subject holder must comply with certain conditions to fulfill its trademark registration rights.

Vietnam trademark registration under IP Law in Vietnam

According to Law on Intellectual Property:

-Organizations and individuals may register marks to be used for goods they produce or services they provide.

-Organizations and individuals that conduct lawful commercial activities may register marks for products they are marketing but produced by others, provided that the producers neither use such marks for their products nor object to such registration.

-Lawfully established collective organizations may register collective marks to be used by their members under regulations on use of collective marks. For signs indicating geographical origins of goods or services, organizations that may register them are collective organizations of organizations or individuals engaged in production or trading in relevant localities. For other geographical names or marks indicating geographical origins of local specialties of Vietnam, the Vietnam trademark registration must be permitted by competent state agencies.

-Organizations with the function of controlling and certifying the quality, properties, origin or other relevant criteria of goods or services may register certification marks, provided that they are not engaged in the production or trading of these goods or services. For other geographical names or marks indicating geographical origins of local specialties of Vietnam, the Vietnam trademark registration thereof must be permitted by a competent state agency.

-Two or more organizations or individuals may jointly register a mark in order to become its co-owners on the following conditions: i) This mark is used in the names of all co-owners or used for goods or services which are produced or traded with the participation of all co-owners; ii) The use of this mark causes no confusion to consumers as to the origin of goods or services.

If the subject falls into one of the cases mentioned above, they will have the right to register the mark at the National Office of Intellectual Property. After the subject condition has been met, consideration should be given to the condition that a mark can be protected as a trademark. In particular (i) It is a visible mark in the form of letters, words, drawings or images including holograms, or a combination thereof, represented in one or more colors; (ii) It is capable of distinctive goods or services of the mark owner from those of other subjects.

However, there are some exceptions even when the mark satisfies those two conditions. For example, marks identical with or confusingly similar to national flags or national emblems; or marks identical with or confusingly similar to emblems, flags, armorial bearings, abbreviated names or full names of Vietnamese State bodies, political organizations, socio-political organizations, socio-politico-professional organizations, social organizations or socio-professional organizations or with international organizations, unless permitted by such bodies or organizations shall not be protected as a trademark.

In order to register for protection of a trademark, the registrant that file Vietnam trademark registration should pay attention to the subject matter and the conditions for the trademark to be protected in order to avoid being refused at the registration authority because of the failure to meet the conditions for the subject or the conditions for protection.

About ANT Lawyers, trademark registration agent in Vietnam

IP Attorney at ANT Lawyers, a licensed IP agent in Vietnam shall be providing the advice to client to help the clients evaluate and file Vietnam trademark registration and other IP related services.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/library/vietnam-trademark-registration.html

Laws Applicable in International Commercial Contract Dispute. Why Important?

  As Vietnam further integrates into the global economy, the demand for trading with Vietnam from traders from many countries around the world has been increasing proportionately. Naturally, the number of international trade disputes between parties of the contracts would also increase. It has been witnessed by commercial contract dispute lawyers in Vietnam that many foreign traders have not paid enough attention to contract issues, specifically the dispute clauses and the law that applies when there is a contract dispute with the thought that disputes rarely happen and parties trust each other while doing business.

Why It Is Important To Have Dispute Mechanism In Place?

In fact, contract disputes are risks that needs to be taken into account. Although trust of doing business between parties are important but events that cause disputes can come from unexpected and unpredictable factors. For example, price changes, product volume changes, product quality issues, personnel, transportation, weather, and seasonal matters can also be factors that affect contract performance.

To ensure their best interests in the event of a dispute, when doing business in Vietnam foreign traders should  consult with commercial contract dispute lawyers in Vietnam to learn about the applicable law agreement at the time of contract conclusion and have mechanism in place to resold potential disputes.

1.What is an International Trade Contract?

An international commercial contract is a legal form of international commercial acts, an agreement between traders to establish, change, and terminate the rights and obligations of the parties in carrying out commercial activities. international.

2.Sources of Law Applicable in International Commercial Contract Disputes?

The parties can choose:

International Treaty

An international treaty is an international agreement signed in writing between countries and subjects of international law and governed by international law. The regulated content of international trade law includes: goods, services, intellectual property and investment with foreigners.

For example: When signing an international goods sale contract, the parties can choose the applicable law as the 1980 Vienna Convention on the Sale of Goods (CISG).

National Law

National law is a system of written or unwritten legal norms established or recognized by the state to regulate legal relations between subjects of law arising within the territory or jurisdiction of a state. that family.

When entering into an international commercial contract, the parties can choose national law as the law applicable to the contract (it can be the national law of one of the parties or the country where the contract is executed). 

International Trade Practices

International trade practices are common principles of behavior that have been established for a long time in the practice of international trade activities.

Some international trade practices are widely used today such as: UCP (used in L/C payments), INCOTERMS (used in international goods sales),…

3.Principles of Choice of Law to Apply in International Commercial Contract Disputes

Principle of Respecting the Agreements of the Parties – “Lex Voluntatis”

The parties to the contract have the freedom to choose the applicable law in contract disputes. In case a dispute arises, the dispute resolution body must respect this decision of the parties. The dispute resolution body can only request the parties to use other sources of law in cases where the law chosen by the parties cannot or is not sufficient to resolve the arising dispute.

Applicable Law Can Be International Treaties, National Laws, And International Trade Practices

The principle of respecting the agreements of the parties will only be limited in cases where the contract subject is real estate, labor contracts, or consumer contracts that affect the minimum rights of workers and consumers or the court’s choice of law affects public policy.

The Principle Of Choice Of Law Has The Closest Relationship With Contracts

This principle will only be applied in cases where the two parties do not have an agreement on applicable law or the applicable law is insufficient to resolve contractual disputes.

In international treaties as well as national laws, there are provisions regulating how to determine the source of law that has the closest relationship with the contract. Vietnamese law has regulations on how to determine the applicable law in some specific contracts as follows:

-Disputes over sales contracts: The law has the closest relationship to where the seller resides if it is an individual or where it is headquartered if it is a legal entity.

-Service supply contract disputes: The closely related law is the law of the country where the service provider resides if it is an individual or the place of establishment if it is a legal entity. This regulation is similar to a contract for the sale of goods.

-Disputes on contracts for transfer of use rights or transfer of intellectual property rights: The applicable law must be the law of the country where the recipient resides if it is an individual or the place of establishment if it is a legal entity.

Although in the field of intellectual property rights protection there seems to be no conflict of laws.  However, in contracts for transfer of rights to use or transfer of intellectual property rights, conflicts of law may occur.

Choosing the applicable law of the recipient’s country of residence is appropriate to Vietnam’s circumstances, because at present and in the future, Vietnam will probably still be the country receiving the right to transfer more intellectual property objects.

Labor Contract Disputes: The law that has a close relationship is the law could be where the employer registers. 

-Consumer Contract Disputes: The law with the closest relationship is the law where the consumer resides. The purpose of this is to protect consumers and avoid unfairness in the legal status of the parties if a dispute arises.

-Contract disputes involving real estate: The applicable law will be the law of the place where the real estate is located. Vietnam has such regulations for the purpose of protecting national security.

How Commercial Contract Dispute Lawyers in Vietnam Could Help?

Commercial contract dispute lawyers in Vietnam play a crucial role in assisting foreign traders when it comes to choosing the applicable law in international commercial contracts. Here’s how they can help:

1. Legal Expertise

Commercial contract dispute attorneys in Vietnam possess a deep understanding of international contract law, including the relevant treaties, conventions, and legal frameworks. They can provide expert advice on which laws might be applicable to a specific international commercial contract.

2. Assessment of Contractual Terms

Commercial contract dispute lawyers in Vietnam carefully review and assess the terms of the commercial contract to determine if there are any provisions related to the choice of law. If the contract includes a choice-of-law clause, lawyers help interpret and enforce it appropriately.

3. Conflict of Laws Analysis

In the absence of a choice-of-law provision, commercial contract dispute attorneys in Vietnam conduct a conflict of laws analysis to determine which jurisdiction’s laws should apply. They consider factors such as the location of the contracting parties, performance of the contract, and the subject matter of the agreement.

4. International Conventions and Treaties

Commercial contract dispute lawyers in Vietnam are well-versed in international conventions and treaties related to commercial contracts. They guide foreign traders on the applicability and advantages of conventions such as the United Nations Convention on Contracts for the International Sale of Goods (CISG) or regional agreements that may impact the choice of law.

5. Customization to Business Needs

Commercial contract dispute lawyers in Vietnam work closely with foreign traders to understand their business objectives, the nature of the transaction, and any industry-specific considerations. This allows them to tailor the choice-of-law provision to align with the unique needs of the business.

6. Drafting and Reviewing Contracts

Commercial contract dispute lawyers in Vietnam assist in drafting and reviewing commercial contracts to ensure that choice-of-law clauses are clear, specific, and in compliance with relevant legal standards. A well-drafted clause can help prevent disputes related to the applicable law.

7. Dispute Resolution Considerations

Commercial contract dispute attorneys in Vietnam consider not only the choice of law but also the implications for dispute resolution mechanisms. They may advise on whether to include arbitration clauses and, if so, which international arbitration rules or institutions are most suitable for the specific contract.

8. Enforcement of Foreign Judgments

In the event of a dispute, commercial contract dispute lawyers in Vietnam assist in navigating the process of enforcing foreign judgments in Vietnam or vice versa. They guide foreign traders on the legal procedures and requirements for recognition and enforcement.

9. Alternative Dispute Resolution (ADR)

Commercial contract dispute lawyers in Vietnam may encourage the use of alternative dispute resolution methods such as mediation or arbitration. They can help parties agree on a neutral jurisdiction for arbitration and navigate the complexities of international arbitration proceedings.

10. Updates on Legal Developments

Commercial contract dispute lawyers in Vietnam stay informed about changes in international trade laws and regulations. They provide foreign traders with updates on any legal developments that may impact the choice of law in their contracts.

In summary, commercial contract dispute lawyers in Vietnam serve as invaluable partners for foreign traders by offering legal expertise, ensuring compliance with international laws, and helping navigate the complexities of choosing the applicable law in international commercial contracts.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/commercial-contract-dispute-lawyers-in-vietnam.html

Possible Anti-dumping Investigation on Imported Wood Fiberboard from Thailand and China 2024

  On July 29, 2024, the Trade Remedies Authority (TRAV), the investigation agency received a dossier from a company representing the domestic manufacturing sector (the petitioner), requesting an anti-dumping investigation on imported wood fiberboard from Thailand and China.

Possible Anti-dumping Investigation on Imported Wood Fiberboard

On August 13, 2024, TRAV confirmed that the dossier was complete and compliant with the legal requirements for trade remedies, marking the formal initiation of the process.

Within 45 days from the date of dossier confirmation, the TRAV will assess the dossier and submit its recommendations to the Minister of Industry and Trade for a decision on whether to initiate an anti-dumping investigation.

This evaluation phase is critical in ensuring that the allegations meet the legal thresholds for proceeding with a formal investigation.

The assessment will cover two main aspects:

Legitimacy of Representation: TRAV will determine whether the organization or individual submitting the complaint is a legitimate representative of the domestic manufacturing industry, as defined under the Foreign Trade Management Law.

Evaluation of Evidence: TRAV will evaluate the evidence provided to ascertain whether the imported goods are being dumped. This includes analyzing whether the dumping is causing or threatening to cause significant injury to the domestic industry or is substantially hindering its establishment.

To assist in the thorough evaluation of the dossier and protect the rights and interests of domestic enterprises, TRAV has requested that domestic manufacturers and businesses involved in similar goods submit the following information:

• Company details;
• The company’s position on the matter (support, opposition, or neutral);
• Any additional documents or evidence deemed relevant to the case.

The deadline for submitting this information is August 30, 2024.

Procedures for Possible Anti-dumping Investigation on Imported Wood Fiberboard

Once a decision is made to initiate an investigation, the following timeline typically applies in a standard anti-dumping case:

Preliminary Investigation

The investigation phase begins immediately after the decision is made. The Investigation Agency has up to 90 days to conduct a preliminary investigation. This period can be extended by another 60 days if necessary. During this phase, the agency collects data, reviews responses from involved parties, and may conduct on-site verifications.

Preliminary Determination

Based on the findings of the preliminary investigation, the agency will issue a preliminary determination, either imposing provisional anti-dumping duties or concluding that no provisional measures are needed. This step usually takes place within 180 days of the initiation of the investigation.

Final Investigation

After the preliminary determination, the investigation enters the final stage, which includes further data collection, hearings, and additional verifications. The Investigation Agency has 150 days to complete this final investigation. However, this can be extended by up to 90 days if the complexity of the case requires it.

Final Determination

The final determination is issued at the conclusion of the investigation, typically within 12 to 18 months of the start of the investigation. This determination may result in the imposition of definitive anti-dumping duties, which can last for five years, or in a decision not to impose duties if the evidence does not support the case.

Post-Determination Review

After the imposition of duties, interested parties can request a review of the anti-dumping measures. These reviews are generally conducted annually and are intended to determine whether the duties should be maintained, modified, or terminated.

Considerations for Possible Anti-dumping Investigation on Imported Wood Fiberboard

Cooperation from Foreign Exporters and Domestic Producers

Throughout the process, foreign exporters, domestic producers, and importers are encouraged to cooperate with the Investigation Agency by providing detailed responses to questionnaires and participating in hearings. Lack of cooperation may result in the application of adverse facts available, potentially leading to higher anti-dumping duties.

Public Interest Consideration

In some cases, the agency may also assess the public interest in imposing anti-dumping measures, considering factors such as the impact on consumers, downstream industries, and the overall economic effects.

By adhering to this timeline and procedure, the Trade Remedies Authority ensures a fair and transparent process in addressing anti-dumping allegations and safeguarding the domestic industry from unfair trade practices.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/anti-dumping-investigation-on-imported-wood-fiberboard.html

7 Powerful Insights Banking Lawyers in Vietnam Need to Know in the Law on Credit Institutions

  Following up and grasping the complexities of banking laws is a challenging task, particularly in a rapidly evolving financial landscape in Vietnam which the laws are constantly on the way to improve. For banking lawyers in Vietnam, following the lates update of law in various sectors and particularly in banking and finance sector is important.

The issuance of the Law on Credit Institutions 2024 recently introduces a number of changes to banking regulations, leading to implications for financial institutions, shareholders.

How such particular changes would be interpreted into implications for financial institutions, shareholders and other impacts if any will be discussed in the following.

Understanding How the New Law Will Impact the Financial Sector

For banking and finance lawyers, the Law on Credit Institutions introduces a host of new legal frameworks designed to stabilize the banking sector and ensure that credit institutions (CIs) operate within safer, more transparent parameters.

We will go through breakdown of some important legal changes, giving some insights that stakeholders better understand how these changes will affect .

From stricter rules on insurance sales to reduced credit limits, stakeholders must understand and update their operation practice to mitigate risks.

The new law is designed to curb unethical practices, improve financial stability, and prevent the manipulation of credit institutions by major shareholders.

A New Era in Vietnam

Imagine a more secure and transparent financial sector in Vietnam, where banks operate under clear, stringent guidelines, limiting risk while fostering growth. For banking lawyers in Vietnam, the Law on Credit Institutions offers both challenges and opportunities.

On one hand, the law imposes stricter controls on banks, placing a higher burden of responsibility on banking lawyers in Vietnam to ensure compliance.

On the other hand, it opens new avenues for legal services, as banks and financial institutions will increasingly rely on legal experts to help them understand and implement these regulatory requirements.

The Law on Credit Institutions 2024 deals with everything from shareholder transparency to debt handling, and credit allocation.

It’s a reform that will deal with many aspects of banking law, making it a focus area for banking lawyers in Vietnam.

With this new legislation, Vietnam’s financial sector is expected to enter a new era of sustainability, transparency, adaptability.

Key Insights for Banking Lawyers in Vietnam

The Prohibition of Non-Compulsory Insurance Sales

One of the most significant changes in the Law on Credit Institutions is the prohibition of linking the sale of non-compulsory insurance to the provision of banking services. Accordingly, credit institutions are now not allowed to “force” customers into purchasing non-mandatory insurance products when offering loans or other banking services.

For banking and finance lawyers, this regulation underscores the need to ensure their clients—especially those in the banking industry—adhere to this law.

However, the law doesn’t explicitly outline what constitutes “force,” leaving some room for interpretation. This ambiguity requires banking and finance lawyers to assist their clients develop clear, transparent procedures for offering insurance products, ensuring they don’t inadvertently violate the law.

Given the potential for banks to still somehow be interpreted as to pressure clients into buying insurance, banking and finance lawyers must advocate for more explicit regulations and guidelines from the State Bank of Vietnam to ensure fairness.

Expanded Information Disclosure Requirements for Shareholders

Another critical change in the Law on Credit Institutions is the expansion of information disclosure requirements for shareholders. Shareholders who own 1% or more of a credit institution’s charter capital must now provide detailed information about themselves and any related entities. This provision aims to prevent cross-ownership and manipulation by large shareholders, promoting greater transparency.

For banking lawyers in Vietnam, this represents both a challenge and an opportunity. Legal professionals must guide their clients—whether they are banks or shareholders—on the importance of adhering to these new disclosure requirements. It is also crucial for banking and finance lawyers to understand how these regulations will impact corporate governance structures within credit institutions, ensuring compliance while safeguarding the interests of their clients.

The law is a significant step towards increasing transparency in Vietnam’s banking sector, but it also imposes greater responsibilities on banking and finance lawyers to ensure accurate and timely disclosure of information. By helping their clients adhere to these requirements, banking and finance lawyers can play a pivotal role in fostering a more transparent and fair banking system.

Reduced Shareholding Limits for Shareholders

The Law on Credit Institutions introduces stricter limits on the amount of shares a single shareholder or related entity can hold in a credit institution. Under the new law, a shareholder may not own more than 10% of a credit institution’s charter capital, and no more than 15% when combined with related entities.

For banking lawyers in Vietnam, this change will necessitate a review of their clients’ current shareholding structures. Those with shares exceeding the new limits must adjust their holdings or risk being non-compliant. This provision is intended to limit cross-ownership and reduce the risk of market manipulation by large shareholders.

Banking and finance lawyers must now assist their clients in restructuring their shareholdings, ensuring they comply with the law while minimizing disruptions to their operations. Moreover, they must keep an eye on potential legal challenges that could arise from these changes, as shareholders may seek to contest the law’s restrictions on their rights.

Simplification of Credit Procedures for Small Loans

In an effort to streamline credit processes, the Law on Credit Institutions introduces simplified procedures for granting small loans. Credit institutions are now only required to verify the legal purpose of the loan and the borrower’s financial capacity for smaller loans, rather than the more extensive documentation previously required.

This change presents both opportunities and challenges for banking lawyers in Vietnam. On one hand, simplifying credit procedures could help economic activity by making it easier for individuals and small businesses to access credit. On the other hand, it places more responsibility on banking and finance lawyers to ensure that their clients properly evaluate the risks associated with these loans and maintain compliance with the law’s requirements.

Additionally, banking lawyers in Vietnam must assist their clients in establishing clear guidelines for monitoring the use of these smaller loans, ensuring that they are used for their intended purposes. This will help credit institutions control the risk of default while maintaining compliance with the law.

Early Intervention in Weak Credit Institutions

The Law on Credit Institutions introduces new provisions for early intervention in weak credit institutions, with the aim of stabilizing the banking system before problems escalate. This proactive approach gives regulators more tools to step in when a credit institution shows signs of financial instability.

For banking lawyers in Vietnam, this means that legal professionals will need to identify the criteria for early intervention and the legal processes involved. They must also be prepared to advise their clients—whether they are the institutions themselves or related entities—on possible interventions would be implemented.

This new framework places greater emphasis on the role of banking lawyers in Vietnam in safeguarding the stability of the banking system. By helping their clients understand and comply with these early intervention measures, banking lawyers in Vietnam can help prevent financial crises before they occur.

Gradual Reduction of Credit Limits

The law also introduces a gradual reduction in credit limits, starting in 2026. Credit institutions must begin reducing their exposure to individual borrowers and related entities, with the limits decreasing each year until 2029.

This is a significant change for banking lawyers in Vietnam, as it will require legal professionals to help their clients adjust their lending practices in accordance with the new limits. Credit institutions that currently have large exposures to individual borrowers will need to diversify their lending portfolios, and banking lawyers in Vietnam will help advising them on how to do so.

This change is intended to reduce the risk of financial instability by limiting the concentration of credit in the hands of a few large borrowers. For banking lawyers in Vietnam, this presents an opportunity to guide their clients towards more sustainable lending practices, ensuring compliance with the law while mitigating risk.

New Rules for Handling Bad Debts and Secured Assets

The Law on Credit Institutions introduces new rules for handling bad debts and secured assets, including the sale of bad debts and the transfer of real estate projects used as collateral. These changes aim to create a more transparent and efficient process for resolving bad debts, helping credit institutions recover their losses.

For banking lawyers in Vietnam, this presents an opportunity to provide valuable legal services to clients involved in debt recovery and asset sales. Legal professionals will need to understand the new rules for transferring secured assets and handling bad debts, ensuring that their clients comply with the law while maximizing their recovery.

ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/insights-banking-lawyers-in-vietnam-need.html