On 31 December 2015, Vietnam's government issued Decree 135/2015/ND-CP regulating offshore investment by Vietnamese natural and legal persons (Decree 135). This is the first time that Vietnam has provided clear procedures and conditions for offshore indirect investment. While individuals are covered by Decree 135, as a practical matter, this kind of investment remains available only to corporate entities established in Vietnam. Decree 135 took effect as of 15 February 2016.

As discussed in this legal update, in addition to providing additional investment opportunities for Vietnamese corporates, Decree 135 may also facilitate lending structures into Vietnam by providing international lenders with higher quality collateral that can be enforced offshore.

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