VDB Loi has been operating in Vietnam since 2013. Our practice concentrates on the natural synergies that exist between legal and tax. We solve our clients’ issues by knowing their business, their industry and seeing the broad picture of doing business in Vietnam.
A combination of Vietnamese and international experts in our team allows us to provide in-depth local law and tax advice that takes into account modern international standards and approaches, thus anticipating clients’ expectations and helping them reach their goals in the most efficient manner.
Our advice is relied upon by international and development financial institutions for some of the region’s largest ever financing transactions. Multinationals often choose us for multibillion dollar investment projects in a wide range of sectors.
We have particularly strong expertise in Energy and Infrastructure, Project Finance, Real Estate, TMT, and Tax practices. VDB Loi also provides on-going support to its clients at all stages of their investments in Vietnam, from initial market entry, business set up, obtaining regulatory approvals, to continued compliance with reporting and filing requirements.
Vietnam aims to further increase the share of clean energy phase out coal-fueled power generation and eventually reach net zero emissions.
The Power Development Plan VIII is in the process of being finalized by the government. It focuses on the development of various power sources and of the transmission power grids within the country, as well as on increasing connectivity of the national grids with those in neighboring countries. Particular priority is given to increase of the share of renewables, including offshore wind. Various tax, land use and other incentives are envisaged for the investments into renewables sector.
Authorities quickly responded to an outbreak that concentrated in April 2021, and launched the national vaccination campaign, upon results of which approximately 80% of population is already fully vaccinated.
Vietnam’s economy is generally projected to grow in 2022. This is on the basis of expectation of taking control over pandemic both at international level and within the country. It can also be anticipated that travel and health restrictions will be further liberalized, as evidence by the substantial simplification of inbound travel into Vietnam in March – April 2022.
This should form a strong basis for recovery in the services and tourism sector.
Plan of digital transformation on national level
Since 2022, Vietnam targets for promoting digital transformation across all industries on a national scale. Year 2022 will be the first year of implementing new strategies on digital infrastructure, data, technology industry and technology enterprise.
According to a report on Vietnam’s digital potential conducted by strategic economics consultancy company AlphaBeta, digital technology, if exploited to the maximum, could deliver economic value of up to 74 billion USD for Vietnam by 2030, equivalent to 27 percent of the country’s GDP in 2020.
The report identifies eight key technologies for the digital economy in Vietnam: mobile Internet, cloud computing, big data, artificial intelligence (AI), financial technology (Fintech), Internet of Things (IoT) and remote sensing, advanced robotics and additive manufacturing.
Foreign direct investments
FDIs continue to grow, in particular into manufacturing sector and electricity generation facilities.
Although NPLs ratios continue to require particular management and attention (in line with the general trend internationally in the pandemic realities), profitability levels of banks remain stable.
In April 2022 government of Vietnam has approved a strategy for tax reform until 2030 to modernize the country’s tax sector in line with global practices. The tax strategy is aimed at increase the use of digital applications and at simplifying administrative procedures and reducing compliance costs for both corporates and individuals.