Vietnam: Decree 38

Freshfields'' partners Milton Lawson and Bui Thanh Tien discuss the implications of Decree 38 for foreign companies operating in Vietnam.

1. Introduction

Background

On 15 April 2003, the Government issued a long-awaited decree on the conversion of foreign-invested companies into shareholding companies.1 By way of background, foreign-invested companies in Vietnam, be they 100% wholly foreign-owned or joint ventures, are not companies divided by shares. Instead, the equity in a foreign-invested company is held by way of legal capital, the holders of which are identified in the Investment Licence of the company. This has various implications,...

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CONFERENCES

  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...