Vietnam Loosen Laws on Casino and Gaming Allowing Vietnamese to Try Luck

On 16 Jan 2017, Vietnam Prime Minister issued Decree 03/2017/ND-CP on casino including investment conditions and procedures of foreign investment in service, tourism, and entertainment with casino, including investment registration of foreign investors, business operation license eligibility, and notable three-year pilot plan that allow the Vietnamese playing in the casino.

Vietnam Loosen Laws on Casino and GamingAllowing Vietnamese to Try Luck

Vietnam has allowed investment in the field of casino business and that foreign investors have been in Vietnam since 1995. But it is expected only when Vietnam law makers loosens the regulations on casino and gaming business allowing Vietnamese to come and try luck, foreign investors would be encouraged to invest in constructing real estate, entertainment projects providing services, tourism and entertainment with gaming and casino to serve the entertainment needs of the increasing population of Vietnam, and attract international tourists.

1. Vietnamese will be accepted at casino during three-year pilot
Casino will accept Vietnamese to try luck whom must be at least 18 years of age, with regular income from 10 million / month or more, and no close family ties with the casino business enterprises. Entrance tickets will be at around VND 1 mil (around USD 50) for 24 continuous hours per person or VND 25 million (around USD 1,200) per month per person.

2. Casino Operation
The casino enterprises can only provide casino in one location and such location must be separated from other business areas of entertainment.

3. Investment Registration and Business Operation License investing and operating Casino
Eligible investors wishing to invest and operate service, tourism and entertainment with casino have to make investment a minimum capital of USD 2 billion, and submit plans to manage the negative impacts of casino operations.

Investors meet investment conditions when being granted the investment registration, business certificate and operation license in casino; has disbursed at least 50% of total capital as regulated in the investment registration; layout area for casino business; employ proper casino operation manager; and have plans approved by the authority.

Decree 03/2017/ND-CP will become effective from 15 Mar 2017 and do not affect the organizations which have been granted permission.

Currently casino in Vietnam allows foreigners such as Do Son Casino in Hai Phong, Ho Tram Casino in Vung Tau, Casino Aristo International in Lao Cai, Silver Shore Casino in Da Nang, Casino Royal Quang Ninh, and projects Casino Hoi An, Casino Van Don, and Casino Phu Quoc.

Easing regulations on casino business will help prevent flyout capital of Vietnamese to visit casinos in neighboring countries such as Cambodia, Macao; help better manage the social order in the sensitive entertainment area in Vietnam and attract foreign tourists.

Furthermore, Vietnam hopes to further integrate regionally, and internationally, attract billions of dollars of foreign investment to sustain growth, and make tourism a key sector to further develop. However, Vietnam will also meet challenges arisen in management of smuggling, illegal transportation of foreign currency, gold, silver, precious stones, precious metals, money laundering, high-tech crime and terrorist financing. Further laws will be issued to cope with the changes along the way but the loosen of laws on casino and gaming is needed.

The  laws on  casino and gaming  will be only the beginning of an inevitable trend that attract investment in tourism and entertainment construction project.  The laws has been evolving and there will be changes in the coming time which ANT Lawyers in Hanoi, Da Nang and Ho Chi Minh City will monitor and provide relevant updates.

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Vietnam Restructures Electricity Sector with Vision into 2025

Vietnam has been increasingly needing energy for industry development and consumption and therefore investment in building plants are encouraged by governments in all forms, especially with sources from Public Private Partnership.

The nuclear energy has not been approved by Vietnam National Assembly in 2016.  Vietnam has now more depending on up-coming thermal coal power plant construction projects when the sustainable energy projects i.e. wind, solar are slowly initiated.

For most of the significant projects, the developers requires the foreign EPC contractors to provide equipment, engineering and constructions whom requires construction licenses to operation in Vietnam.  They also keep an eye on on the changes in the law in electricity and Vietnam development of energy sector to follow opportunities.

In 2016, Vietnam has issued decision on national power development into 2020.

With aim to grow the energy sector to meeting growing demands and publicly announce the plan to the interested parties, Vietnam government has now restructuring the power sector aiming to achieve the conversion of the power sector under the market mechanism in order to enhance business efficiency, enhance the publicity, transparency, equal competition in terms of international integration, ensuring the development of sustainable electricity systems, market development-oriented retail electricity in Vietnam according to the market mechanisms under the regulation of Government.

Restructure Electricity Sector 2016 – 2020

The period from 2016 to 2018

Privatize the power generation corporation of Vietnam electricity Group (EVN), Vietnam National Oil and Gas Group (PVN), Vietnam national coal – mineral industries holding corporation limited (Vinacomin). Vietnam Power Generation Corporation to be remained in the groups managed by EVN and the group hold at least 51% of the shares.

To encourage the plant using the renewable energy to engage in the wholesale electricity market.

Orienting the National Load Dispatch Center to become one member limited liability company with independent profit and loss center to manage the system, the electricity market and metering activities.

The period from 2019 to 2020

Reduce the State capital in the power generation corporation, separate the Vietnam Power Generation Corporation from Vietnam Electricity Group, and guarantee the State capital ratio in the power generation companies.

Allow the BOT power plant, the large power plant having important meaning to involve in the wholesale electricity market. Ensure a fair, equality environment for investors.

Separate the cost of distribution and retailing of electricity to operate the retail electricity market.

Before the competitive wholesale electricity market officially implemented, complete the conversion of the National Load Dispatch Center into one member limited liability company.

Restructure Electricity Sector 2021 – 2025

Creating an environment for fair competition in the electricity retailing, separate the cost of distribution and retailing.

Privatize the power generation corporation, and retail activity ensuring the state’s capital ratio but not to private each company, or distribution activity.

Ensure the independence of the legal status, personnel, financial and interests between the power seller, and power buyer.

The Expected Changes of the Law on Electricity

The competent authority will revise the Vietnam Electricity Law and the related legal documents to propose the necessary amendments, to fit with the open market direction for the electricity industry in Vietnam, in order to avoid the legal entanglements for domestic as well as foreign investors.
Allows the plant using the renewable energy to have a options for preferential price mechanism or engage in the competitive wholesale electricity market.

Provide guidance on the cost separation on distribution and retailing of electricity, renew the mechanism of the retail price of electricity suitable for the market mechanisms under the state’s management.

Build a road map to transform the national load dispatch center to become one member limited liability company to complete the tasks independently and take responsibility.

The  laws on  electricity will be changed to attract investment of the private sector, boosting the industrial development of the country, which is always hunger for power to develop.  The changes of laws will be monitored by ANT Lawyers Energy and Project Department  in Hanoi, Da Nang and Ho Chi Minh City to provide clients with updates.

ANT Lawyers has law offices in Hanoi, Ho Chi Minh, and Da Nang City.  For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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How to Transfer Investment Capital into Bank Account Vietnam?

Foreign investors must transfer money in and out through the Direct Investment Capital Account (DICA) for investment capital contribution.

Transfer Investment Capital into Bank Account Vietnam

FDI enterprises, foreign investors participating in business cooperation contracts, foreign investors implementing investment activities in Vietnam in the direct foreign investment forms in accordance with current provisions of law on investment should comply with the provisions of the investment law when making investment and transfer the capital into Vietnam implementing FDI activities in Vietnam, through setting up company.

The capital contribution in cash of foreign investors and Vietnamese partners in FDI enterprises must be made through transferring to the DICA, either in foreign currencies or Vietnam dong, which are opened by FDI enterprises and foreign investors participating in a business cooperation contract at an authorized credit institution in order to perform the relevant transaction to the FDI activities in Vietnam.  From DICA account, the investor could then transfer into transaction bank accounts opened in a commercial banks in Vietnam.

The transfer of investment capital before being granted investment certificate into Vietnam and the transfer of capital abroad in case of not being granted investment certificate of foreign investors shall be complying with the provisions of the relevant regulations.

After being granted the investment certificate, the accounting of pre-establishment costs of FDI enterprises into equity or foreign loans is made on the basis of agreement between the involving parties, ensured to comply with current provisions of Vietnamese law and regulations on accounting, borrowing, repayment of foreign debts of enterprises and other relevant provisions of Vietnamese law and regulations. In case the foreign investors do not use all the investment capital transferred into Vietnam to satisfy the legal costs for the preparatory phase of investment, foreign investors can buy foreign currency and transfer the remaining investment capital abroad in foreign currency on the basis of the issuing records and documents evidencing investment capital transferred into Vietnam and the expenses incurred for investment projects in Vietnam.

In case foreign investors had moved investment capital into Vietnam to satisfy the legal costs for the preparatory phase of investment in Vietnam but were not granted the investment certificate by Vietnamese competent agencies, foreign investors are allowed to transfer the investment capital transferred abroad after deducting the expenses incurred in relation to the preparation of direct investment projects in Vietnam. The investment capital transferred abroad by foreign investors shall not exceed the maximum investment capital transferred into Vietnam and the amount of interest of non-term loans incurred (if any). Foreign investors are allowed to buy foreign currency and transfer abroad the investment capital transferred into Vietnam in accordance with valid documents proving the amount of investment capital transfer red into Vietnam and legitimate expenses incurred in relation to the preparation of investment projects in Vietnam.

Along with that, foreign investors are allowed to transfer abroad the charter capital, direct investment capital upon termination of operations (due to ending, the liquidation or the dissolution of the enterprise before maturity), interest and foreign loans, profits and other lawful income relating to operations of FDI activities in Vietnam through the DICA. In case FDI enterprises and foreign investors participating in business cooperation contracts have to close the DICA due to ending, liquidation, dissolution which lead to the termination of FDI activities in Vietnam or conduct investment capital transfer resulting in alteration of the initial legal person of FDI enterprises, foreign investors are allowed to use their DICA, either in foreign currency or in Vietnam dong, opened at authorized credit institutions in order to transfer direct investment capital and legitimate income abroad legally.

Moreover, FDI enterprises and foreign investors can use legitimate income sources in Vietnam dong or foreign currency gained from operations of FDI activities in Vietnam to perform re-investment activities in Vietnam. Simultaneously, they also have the right to use such income sources to purchase foreign currency at an authorized credit institution and transfer abroad within 30 days since the date of buying foreign currency.

The credit institutions have the right to require FDI enterprises and foreign investors to provide legal records and proofs relating to the FDI activities in Vietnam. They are also responsible for regulating, inspecting and storing the documents appropriate with the revenue and expenditure transactions of the DICA of foreign investors to ensure the revenue and expenditure transactions are made complying with the stipulations of this Circular and in accordance with the relevant provisions of the Vietnamese law and regulations; and selling foreign currency to foreign investors to transfer abroad on the basis of foreign currency balances of credit institutions.

The  laws on  investment in Vietnam will continue be adjusted to encourage investment into various sectors of the economy.  The changes of laws will be monitored by ANT Lawyers Foreign Investment Practice  in Hanoi, Da Nang and Ho Chi Minh City to provide clients with updates.

Source: Antlawyers.vn

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Foreign investors could promote and participate in aviation and aviation related services in Vietnam through setting up representative office, setting up company, engaged in business cooperation contract or joint venture.

Civil aviation industry in Vietnam has really developed in the last 20 years. Until now, many Vietnam domestic airlines provide aviation services such as Vietnam Airline, Vietjet Air, Jetstar Pacific, etc that brings more choices to customers as well as business and investment opportunities to Vietnam and foreign investors.

Aviation and Aviation Support Service in Vietnam

The foundation of aviation and aviation support services are governed under Civil Aviation Act 2006 which was amended in 2014.

The differences of aviation and aviation support service?

Most of us are aware of aviation throughout use them for our demand to travel or transport goods. Air transport operations include two type of air transportation business and general aviation business. In detail, air transport business is the transportation of passengers, baggage, cargo and postal items by air for the purpose of profit, and general aviation business is general aviation activities. Air transport service business is conditional business activity that requires plans to ensure availability of aircraft for operations, organizational apparatus, business plans, development strategies and capital requirements. Depending on the scale of business operation of air transport enterprise, capital requirements is significant. Because of the typical elements of aviation especially air transport service, participants in the air transportation business have to sufficient financial resources as well as capacity management and administration.On the other hand, aviation support service include air navigation service business; airport service business; aviation staff training, coaching and mentoring service business; services relating to design, manufacture, maintenance, testing of aircraft, engines, propellers and equipment thereof within Vietnam and so on. Those are also the conditional business activities depending on the type of service that requires different conditions for the strategic plan, organizational structure, capital requirement or foreign ownership of the charter capital. For example aviation staff training, coaching and mentoring service business requires investor to ensure requirements concerning the facilities, equipment, components and lecturers as well as about training courses, training or coaching materials.

Opportunities of aviation and aviation support service?

As a country with over 90 million people like Vietnam along with the development of economy and the increasing of Vietnamese’s life quality, the aviation service business is growing because of demand hence aviation support service business is also developing in natural way. Vietnam has increasingly created favorable conditions for not only organizations and individuals of Vietnam but also foreign investors to cooperate and invest in civil aviation.

The aviation support services have been fairly common in the world, but not really developed in Vietnam especially services relating to design, manufacture, maintenance aircraft therefore when domestic enterprises have demand, they frequently hire service abroad. Besides, aviation staff training, coaching and mentoring service requires foreign experts. There are significant opportunities for foreign investors who have knowledge, skill and experience in this field to access and provide aviation support services to domestic and international airlines in Vietnam.

Vietnam has been investing heavily in airport infrastructures expansion preparing for growing of airlines fleets and frequency which means more opportunities for aviation and aviation related services are opening.  The law in aviation and aviation related services are continuously changing.  ANT Lawyers in Hanoi, Da Nang and Ho Chi Minh City continue to follow and provide update to its clients in legal aspect of aviation and aviation related services in particular and transportation in general in Vietnam for the legal understanding, compliance and business cooperation and investment purpose in regulatory and policy research, contract review, dispute in transactions or employment matters, incorporation.

Source: Antlawyers.vn

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Vietnamese shipping firm Vinalines sells boats to stay afloat

Vietnam’s largest state-owned shipping firm and port operator, has been forced to put six ships up for sale as the global shipping crisis takes its toll, the shipping firm said in a document sent to the Ministry of Transport.

Vinalines has put up the 20-year-old cargo vessel Vinalines Global for sale in a move to cut its mounting losses. Photo from marinetraffic.com

Vinalines has set a target of selling six ships, including 20-year-old ships that can carry cargoes of more than 70,000 in dead weight tonnage (DWT).

Vinalines is a victim of the global shipping slowdown that started in 2008 and has yet to show signs of a recovery, the shipping firm said.

The Baltic Dry Index, which is a measure of the price of shipping bulk cargoes around the world, especially large bulk dry cargoes such as grain, iron ore and containers, has slipped by 80-90 percent over the past seven years.

The index at some point was down to 290, 98 percent down from its peak during 2006–2008.

It now stands at 293, nearly 50 percent down from a year ago, and almost 40 percent down so far this year.

The loss-making shipping group said that adverse market conditions had led to mounting company losses over the past few years.

Vinalines said it would sell at least three of the six ships for around 10 times less than it paid for them. For example, Vinalines Star, which was bought for VND378 billion, is up for grabs for only VND34.4 billion.

The Vietnamese government established Vinalines in 1995, adopting the operating model of South Korea's giant conglomerates known as “chaebol”.

However, Vinalines reportedly incurred losses of VND434 billion in 2011 while it was running 14 ports and managing 154 ships, mostly cargo vessels and oil tankers.

According to government inspectors, Vinalines spent more than $1 billion between 2005 and 2010 to buy 73 second-hand ships.

The shipping line also spent $9 million on an old floating dock from a Singaporean firm that had a price tag of only $5 million, and then spent $26.3 million on repair work.

The unused dock was mocked by the press as an “iron heap”, symbolic of Vinalines’ losses, as criticism came flooding in of misspent state funds and the company’s lax management.

Earlier this week, Vinalines managed to sell the floating dock for a meager $1.7 million.

Source: E.vnexpress

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