2014 was a busy year for lawmakers in Vietnam. The XIIIth National Assembly at its 8th session held in November 2014 passed as many as 18 new and amended laws. Several of these laws are of paramount importance to foreign investors and the business community, such as the Law on Enterprises, the Law on Investment, the Law on Real Estate Business and the Law on Housing. All of these laws shall take effect in July 2015 and promise to significantly change the investment and business landscape.
This briefing will discuss several of the notable changes ushered in by the 2014 Law on Enterprises with a particular focus on 1) Corporate Formation, 2) Corporate Governance, 3) Capital Structure, and other items of note, such as definitions of state-owned enterprises ("SOEs").
While most of the changes are positive, investors will need to pay careful attention to the implication of certain provisions on their rights and protections, in particular reduced thresholds for corporate approvals at shareholder meetings.