The most recent iteration of Vietnam’s Labour Law, the Labour Code 2019, contains details on hiring and firing, employee leave entitlements, and regulates working hours and overtime. The Labour Code, however, is quite dense and can be quite nuanced. In light of this, this Quick Read runs through the most important parts and should hopefully provide the key details foreign firms, that are looking to establish a business in Vietnam, might need…

Vietnam Visas for Doing Business in Vietnam: Quick Read 2024

the-shiv June 5, 2024

Visas in Vietnam are codified in the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam. This law can be very nuanced and it is not unusual for interpretations of the law to differ between provincial immigration departments. That said, this Quick Read runs through the basics a foreign firm or individual would need to know in most normal circumstances including the types of visa, the length of stay, and how to apply for a visa in Vietnam.

Vietnam Airlines to lease planes to unprofitable budget airline subsidiary

the-shiv June 5, 2024

For some context, Pacific Airlines has no planes because it gave them back to its lessor in exchange for having VND 3 trillion or US$118 million worth of debt cancelled. This was months ago and the airline hasn’t run a passenger flight since. With this in mind, it’s difficult to see any organisation other than Vietnam Airlines leasing aircraft to Pacific Airlines moving forward which could limit the airlines growth.

Vietnam ministry looks to end VAT, import tax exemption on e-commerce imports

the-shiv June 5, 2024

Low-value Chinese-made goods are all over Vietnam’s major e-commerce sites and can be exported from China and arrive in Vietnam very quickly and easily given the two countries are so close. This proximity also means that shipping is relatively cheap too, and in this respect it does seem that the only real difference is that goods from China, with this VAT exemption in mind, are cheaper…

South Korean consumer finance firm doubles down on Vietnam

the-shiv June 5, 2024

Of note, demand for credit has plummeted over the last year or two as thrifty Vietnamese have tightened their belts. By the end of March credit growth was at just 1.34 percent. That said, credit cards have not proven to be very popular in Vietnam in general, with consumers tending to spend only what they have. In fact, just 6 percent of Vietnamese had a credit card according to a 2021 report from the World Bank…

Concerns raised for Vietnam ag producers re: EU-Thailand trade deal

the-shiv June 5, 2024

For context, Vietnam’s seafood exports have benefited enormously from the myriad of trade deals the country has signed on to, however, sustainability has become a key issue. Overfishing is rife, hence the yellow card, and this has the potential to have long-term ramifications for many of Vietnam’s coastal, fishing dependent communities. That said, this yellow card coupled with the European Union-Vietnam Free Trade Agreement has, at least ostensibly, been a driver for change and speaks to the non-trade benefits of Vietnam’s many free trade agreements…

Vietnam builder ups foreign ownership limit, shares max-out twice

the-shiv June 5, 2024

Vietnam currently applies foreign ownership limits to almost all stocks on the Ho Chi Minh City Stock Exchange. Of note, as of March 11, of 401 stocks listed on the HoSE, 371 stocks had foreign ownership limits. For 366 of those stocks, foreign ownership was capped at 50 percent or less. This can be a deterrent for foreign investors and limiting with respect to raising capital for local firms. It can also be logistically challenging when foreign ownership gets close to said caps. In fact, these limits are one factor holding the local exchange back from an upgrade from a frontier market to an emerging market…

Korea launches anti-dumping probe into three Vietnam steel firms

the-shiv June 5, 2024

Steel has been at the centre of a number of antidumping investigations of late. Hot-rolled coil steel from China in particular has been possibly the most prominent, however, Vietnam has also started to feature particularly as a means of circumventing anti-dumping tariffs elsewhere. For example, earlier this month the EU extended anti-dumping measures on cold-rolled stainless steel from Indonesia to include Vietnam to avoid Indonesian steel producers from using the country as a workaround…