Cargo Loss and Prevention

Provisions on announcing of business information are stipulated in various laws and degrees in Vietnam, allowing the interested party to be searching for business purpose for information in regard to investment registration certificate number, business registration certificate number and others information.

In particular, after the enterprise being granted an enterprise registration certificate, it shall carry out procedures to publish it on a portal as per procedures and pay the related fees for administration. The application for publication of enterprise registration information is a compulsory procedure, made at the time an enterprise submits its enterprise registration dossier. The content to be published includes the contents on the enterprise registration certificate and the lines of business. In addition, joint stock companies with foreign investors will need to provide information including founding. In case of changes in enterprise registration contents, the corresponding changes must be publicly announced.

Also, an enterprise must publish information in one of the forms posted on the business information network of the business registration agency or one of the written or electronic newspapers in three consecutive issues. The main content to be published includes: Company’s name; Address of the head office of the enterprise, branch or representative office; Lines of business; Charter capital of limited liability company and partnership company; number of shares and value of contributed capital and number of shares to be issued with joint stock company; initial investment capital for private enterprises; legal capital for enterprises conducting lines of business requiring legal capital; Full name, address, nationality, ID card number, passport or other legal personal identification number, establishment decision number or business registration code of the owner, member or shareholder foundation; Full name, permanent address, nationality, ID card number, passport number or other legal personal identification of the legal representative of the enterprise; Place of business registration.

For publication fees, the enterprise registration fee and the enterprise registration content announcement fee are VND 100,000/time.

There are some enterprises that do not need to publish their business information on the portal before going into operation, but make other forms of announcing i.e. on newspaper or other media. For instance, law-practicing organizations must publish on daily newspapers of central or local registry of law practice or newspaper for three consecutive issues. For credit institutions, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities, they must be published on the State Bank’s media and in a daily newspaper written in 03 consecutive issues or an electronic newspaper of Vietnam at least thirty days prior to the scheduled date of operation of opening information.

In addition to disclosing corporate information, there is also a procedure for disclosure of information on the stock market that is applicable to public companies and bond issuers (except for government bond issuers and bonds), government-guaranteed bonds and local government bonds), securities companies, fund management companies, branches of foreign fund management companies in Vietnam, public funds complying with law on securities detailing information disclosure, announcing on the company’s website and information disclosure system of the Securities Commission.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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.