10 Crucial Insights About Corporate Criminal Liability in Vietnam You Can’t Afford to Ignore

  For foreign companies and individuals doing business in Vietnam, understanding corporate criminal liability is essential for operating ethically and successfully. As Vietnam’s economy continues to grow and integrate globally, the government has prioritized accountability in the corporate sector. Corporate criminal liability ensures enterprises are held responsible for misconduct conducted on their behalf, emphasizing the importance of compliance for long-term success.

Corporate criminal liability in Vietnam has become increasingly significant in recent years, particularly as the country strives to align its legal framework with international standards. By understanding this concept, foreign investors can navigate potential challenges and protect their business interests while contributing to sustainable development in Vietnam. In here, we explore the concept of corporate criminal liability in Vietnam, highlighting its importance, common offenses, penalties, and strategies for ensuring compliance.

The Concept of Corporate Criminal Liability in Vietnam

Corporate criminal liability refers to the legal responsibility of enterprises for crimes committed by their representatives or employees. This concept reflects the principle that companies, as legal entities, can be held accountable for actions that harm the public, environment, or economy. Corporate criminal liability in Vietnam emphasizes that businesses must operate within the bounds of the law, ensuring that their activities do not adversely impact society.

Unlike personal liability, corporate liability focuses on the organization’s role in enabling or failing to prevent illegal activities. This includes acts such as environmental damage, financial fraud, and other violations carried out in the course of business operations. Corporate criminal liability in Vietnam holds companies accountable for such activities, ensuring they bear the consequences of their actions or inactions.

Common Offenses Leading to Corporate Criminal Liability in Vietnam

Foreign businesses must understand the areas most prone to violations to mitigate risks effectively. Common offenses that result in corporate criminal liability in Vietnam include:

– Tax Non-Compliance: Companies can face penalties for intentionally underreporting income or engaging in fraudulent accounting practices. Such actions undermine tax systems and economic stability.

– Environmental Infractions: Corporate actions leading to environmental degradation, such as pollution or improper waste disposal, are serious violations in Vietnam. Enterprises must adopt sustainable practices to avoid criminal repercussions.

– Money Laundering: Businesses may unintentionally become conduits for illegal financial activities if they lack robust compliance measures. Vigilance is necessary to prevent misuse of corporate infrastructure for laundering funds.

– Counterfeit Goods Production: Manufacturing or distributing counterfeit products not only violates intellectual property laws but also jeopardizes public safety and trust in markets. Foreign businesses must ensure supply chain integrity.

These offenses illustrate the broad scope of corporate criminal liability in Vietnam, highlighting the need for vigilance and proactive measures to ensure compliance.

The Legal Framework

Vietnam’s approach to corporate criminal liability is grounded in principles of accountability and proportionality. While only specific crimes apply to corporations, the overarching goal is to deter misconduct and protect societal interests. Corporate criminal liability in Vietnam is enforced through clear regulations that define the responsibilities of enterprises and their representatives.

Liability is determined based on actions performed by individuals within the scope of their employment and their connection to corporate benefit. The legal framework emphasizes preventive measures, encouraging companies to implement robust compliance systems to avoid violations. By fostering a culture of accountability, corporate criminal liability in Vietnam aims to strengthen trust between businesses, the government, and the public.

Unique Challenges for Foreign Companies

Foreign enterprises in Vietnam face unique hurdles due to cultural, linguistic, and regulatory differences. Common challenges include:

– Unintentional Non-Compliance: Misunderstanding legal requirements due to language barriers or differing business practices.

– Third-Party Risks: Actions by local partners or suppliers may expose foreign businesses to liability.

– Cross-Border Complexities: Global operations add layers of regulatory compliance, particularly in financial transactions and trade.

Corporate criminal liability in Vietnam often involves navigating these complexities, which can be daunting for foreign companies. Collaborating with local legal experts is critical for addressing these challenges and ensuring adherence to Vietnamese laws.

Penalties for Corporate Criminal Liability

Penalties for corporate offenses are designed to prevent misconduct and encourage corrective actions. Common consequences include:

1. Financial Fines: Monetary penalties are proportional to the offense’s severity, serving as a deterrent.

2. Operational Restrictions: Temporary or permanent suspension of business activities can occur for serious violations.

3. Asset Confiscation: Illegally obtained gains may be seized by authorities.

4. Corrective Mandates: Companies may be required to remedy damages, such as environmental restoration or issuing public apologies.

Corporate criminal liability in Vietnam emphasizes the importance of aligning business practices with legal standards to avoid these severe penalties. By understanding the potential repercussions, companies can take proactive steps to mitigate risks and ensure compliance.

Steps to Prevent Corporate Criminal Liability

Foreign businesses can adopt proactive measures to minimize risks and ensure compliance:

– Strengthen Internal Controls: Implement comprehensive compliance programs and conduct regular audits.

– Conduct Thorough Due Diligence: Vet partners and suppliers to ensure lawful practices.

– Employee Training: Regularly educate staff on compliance policies, with a focus on high-risk areas like taxation and anti-corruption.

– Engage Local Experts: Leverage the expertise of local legal advisors to navigate Vietnam’s regulatory landscape effectively.

By prioritizing these measures, companies can build a robust framework that minimizes the likelihood of corporate criminal liability in Vietnam.

Factors Influencing Liability

The outcomes of corporate criminal cases depend on several factors:

– Mitigating Circumstances: Voluntary disclosures, cooperation with authorities, and timely remediation can reduce penalties.

– Aggravating Factors: Repeat offenses, large-scale harm, or deliberate concealment of violations can result in harsher consequences.

Understanding these factors is essential for foreign businesses aiming to avoid corporate criminal liability in Vietnam. By demonstrating a commitment to ethical practices and transparency, companies can strengthen their defense against potential allegations.

Building a Culture of Compliance

Compliance is not merely a legal obligation but a cornerstone of sustainable business. By fostering a culture of ethical conduct, companies can mitigate risks, enhance their reputation, and contribute positively to Vietnam’s economic ecosystem. Leadership commitment, clear policies, and transparent practices are essential components of this culture.

Corporate criminal liability in Vietnam highlights the importance of establishing compliance as a strategic priority. By integrating ethical considerations into decision-making processes, businesses can protect themselves from legal risks while promoting long-term growth and sustainability.

The Impact of Corporate Criminal Liability on Foreign Investment

Corporate criminal liability in Vietnam has a significant impact on the confidence of foreign investors. While the regulations aim to enhance accountability and transparency, they can also create apprehension for investors unfamiliar with Vietnam’s legal framework. However, when approached strategically, these laws can foster a positive investment environment.

One of the key ways corporate criminal liability influences foreign investment is by increasing investors’ diligence in understanding local laws. Investors are often cautious about potential legal risks, particularly in industries with stringent regulatory oversight. This can delay investment decisions or necessitate additional costs for legal consultancy and compliance programs. However, it also pushes companies to establish stronger risk management practices, which can benefit their long-term operations in Vietnam.

On the positive side, the Vietnamese government’s compliance efforts promote transparency and fairness. The enforcement of corporate criminal liability demonstrates Vietnam’s commitment to creating a level playing field for both domestic and foreign enterprises. By addressing issues such as corruption, environmental violations, and tax evasion, the government ensures that businesses contributing to the economy operate ethically. For foreign investors, this transparency reduces the risks of unfair competition and unethical practices by competitors.

To mitigate investor concerns about legal risks, businesses should adopt proactive strategies. First, engaging local legal experts familiar with corporate criminal liability in Vietnam can help foreign enterprises navigate regulatory complexities. Second, establishing robust compliance frameworks tailored to Vietnamese laws will not only reduce legal exposure but also improve operational efficiency. Third, investors should prioritize transparency in their operations by maintaining accurate records, conducting regular audits, and ensuring all stakeholders are aware of compliance policies.

Foreign investors should also view corporate criminal liability in Vietnam as an opportunity rather than a challenge. A strong compliance culture signals to partners, customers, and regulatory bodies that the business is committed to ethical practices. This can enhance the company’s reputation and increase its competitiveness in Vietnam’s growing market. By aligning with the government’s goals of sustainable and transparent economic growth, foreign enterprises can build trust and foster long-term partnerships.

The Future of Corporate Criminal Liability in Vietnam

Vietnam is likely to expand the scope of corporate criminal liability as the economy grows and integrates further into global markets. Corporate criminal liability in Vietnam will continue to evolve, reflecting the country’s commitment to fostering a fair and transparent business environment.

Key trends to watch include increased focus on environmental sustainability, stricter monitoring of financial transactions, and enhanced collaboration with international regulatory bodies. By staying informed about these developments, businesses can adapt their practices to remain compliant and competitive.

Corporate criminal liability in Vietnam underscores the importance of accountability in the modern business environment. For foreign companies, understanding and addressing this liability is essential for achieving long-term success. By adopting proactive compliance strategies and working with local experts, businesses can navigate the complexities of Vietnam’s legal landscape while fostering trust and sustainability.

The concept of corporate criminal liability in Vietnam serves as both a challenge and an opportunity for businesses. By prioritizing ethical practices and compliance, companies can build a solid foundation for growth while contributing positively to Vietnam’s socio-economic development. Navigating these responsibilities effectively ensures a brighter, more sustainable future for both businesses and society.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/corporate-criminal-liability.html

7 Powerful Impacts of Abolishing Tax Exemptions in Vietnam for Imports Under 1 Million VND

  On February 18, 2025, Vietnam will implement a significant change in its tax policy by abolishing import tax and VAT exemptions for goods valued under 1 million VND. This decision marked a turning point for Vietnam’s economy, particularly impacting the cross-border trade and e-commerce industries.  

The move aims to boost domestic production and create a more equitable tax environment, but it has also introduced several challenges. In here, we will explore the 7 powerful impacts of abolishing tax exemptions in Vietnam, its effect on businesses and consumers, and strategies for adapting to this new reality.

Policy Shifts: Understanding the Abolishing Tax Exemptions in Vietnam  

Previously, under Decision 78/2010/QĐ-TTg, goods imported via express delivery services valued under 1 million VND were exempt from import tax and VAT. This exemption helped reduce the costs of imported goods, fostering growth in cross-border e-commerce and retail.  

However, under Decision 01/2025/QĐ-TTg, these tax exemptions were completely abolished. From February 18, 2025, all imported goods, regardless of value, are now subject to:  

– Import tax based on the product category, and  

– VAT will be applied.  

This shift has effectively eliminated a cost advantage that was widely utilized by small businesses and online retailers. The implications of abolishing tax exemptions in Vietnam are far-reaching and multifaceted.

Increased Costs for Importers  

Abolishing tax exemptions in Vietnam has caused a significant rise in the cost of importing goods, particularly low-value items.  

– Higher Costs for Businesses: A product previously priced at 800,000 VND is now subject to taxes that can raise its price to over 1 million VND. Businesses that relied on low-cost imports to maintain competitive pricing are struggling to absorb these additional costs.  

– Pressure on Profit Margins: Small and medium-sized enterprises (SMEs) have been hit hardest, as they often lack the resources to offset these additional expenses.  

For companies heavily involved in importing consumer goods, re-evaluating pricing strategies has become essential to maintain market viability.  

Impact on Vietnam’s E-commerce Landscape  

The e-commerce sector is one of the most affected by abolishing tax exemptions in Vietnam, particularly cross-border e-commerce platforms like Shopee, Lazada, and Alibaba.  

Challenges for Sellers  

– Increased Prices: Sellers relying on imported goods must increase their prices to cover the newly imposed taxes, potentially driving customers to seek alternatives.  

– Decline in Dropshipping Models: Dropshipping businesses, which depend heavily on cross-border shipments of low-cost goods, are facing shrinking profit margins due to higher import costs.  

Challenges for Consumers  

– Higher Prices: Consumers now bear the burden of these taxes through higher retail prices.  

– Reduced Availability: Many low-value items, previously affordable and readily available, are being removed from online catalogs due to their decreased profitability.  

This policy shift may also incentivize e-commerce players to promote domestic products more aggressively, leading to changes in product offerings and market dynamics.

Consumer Behavior: Adapting to Higher Costs  

With the abolishing tax exemptions in Vietnam, consumers are also being forced to adapt.  

– Shift to Domestic Products: As imported goods become more expensive, consumers are increasingly turning to locally produced alternatives.  

– Focus on Essential Goods: Non-essential low-value items such as accessories, toys, and small gadgets are seeing reduced demand, as consumers prioritize necessities over discretionary purchases.  

This change in behavior creates opportunities for domestic producers but poses significant challenges for import-dependent retailers.  

Opportunities for Domestic Manufacturing and Retail  

While abolishing tax exemptions in Vietnam has created hurdles for importers, it has also opened doors for domestic manufacturers and retailers:  

– Boosting Domestic Production: Higher import costs make domestic goods more competitive, encouraging local manufacturers to expand their production.  

– Increased Support for Local Businesses: Retailers and consumers are showing greater interest in Vietnamese products, which can help foster innovation and growth in local industries.  

– Strengthening the Domestic Supply Chain: Businesses are now focusing on sourcing from local suppliers, reducing dependency on imported goods and improving logistical efficiency.  

By capitalizing on this opportunity, Vietnam can strengthen its domestic economy and reduce reliance on imports.

Challenges in Logistics and Supply Chain Management  

The tax changes have significant implications for logistics and supply chain management:  

– Rising Shipping Costs: Importing goods now incurs additional fees due to higher tax burdens, increasing overall shipping costs.  

– Shift to Local Sourcin: Businesses are reevaluating their supply chains to prioritize local sourcing, which reduces import-related expenses but requires significant logistical adjustments.  

– Longer Processing Times: Customs procedures are becoming more complex as businesses need to declare and pay taxes on every shipment, regardless of its value.  

To navigate these challenges, businesses are investing in more efficient logistics systems and exploring alternative trade routes to reduce costs.

Tax and Legal Compliance: A New Era of Accountability  

The removal abolishing tax exemptions in Vietnam places greater emphasis on compliance with tax laws and customs regulations.  

– Increased Administrative Burden: Importers must handle more paperwork, including detailed tax declarations, which can slow down operations.  

– Risk of Penalties: Non-compliance with the new rules can result in fines, delays, and reputational damage.  

– Need for Expert Support: Many businesses are turning to legal and tax consultants to ensure compliance and optimize their tax obligations.  

This shift highlights the need for businesses to stay updated on regulatory changes and implement robust compliance mechanisms.

Strategic Solutions for Businesses  

To thrive in this new environment, businesses must adopt proactive strategies:  

– Diversify Supply Chains: Explore alternative markets with favorable trade terms to reduce dependency on heavily taxed imports.  

– Optimize Pricing: Reassess pricing structures to balance competitiveness with profitability.  

– Leverage Trade Agreements: Take advantage of Vietnam’s trade agreements to minimize tariff impacts.  

– Promote Domestic Products: Shift focus toward promoting and selling locally produced goods to capitalize on growing consumer interest.  

– Invest in Technology: Use digital tools to streamline logistics, inventory management, and compliance processes.  

These solutions can help businesses mitigate the challenges of abolishing tax exemptions in Vietnam and position themselves for long-term success.

Future Outlook: A More Balanced Trade Environment  

In the long term, abolishing tax exemptions in Vietnam is expected to create a more balanced trade environment by reducing the reliance on low-value imported goods.  

– Strengthened Domestic Economy: By encouraging local production and consumption, this policy supports Vietnam’s economic development.  

– Greater Tax Revenue: The removal of exemptions increases tax collection, providing the government with additional resources for public services and infrastructure development.  

– Enhanced Regulatory Oversight: The shift promotes accountability and transparency in cross-border trade, reducing the risk of underreporting and tax evasion.  

Despite the initial disruptions, these changes are likely to pave the way for sustainable growth and a more resilient economy.

Long-Term Benefits for Vietnam’s Economy

While the abolishing tax exemptions in Vietnam policy may lead to short-term challenges for businesses and consumers, its long-term advantages for Vietnam’s economy are significant. This shift lays the groundwork for sustainable growth and a more balanced trade environment across multiple sectors.

1. Boosting Domestic Production and Innovation  

The increased cost of imported goods due to abolishing tax exemptions in Vietnam has motivated businesses and consumers to prioritize local products. This shift creates demand for domestically produced goods, fostering growth in industries such as manufacturing, agriculture, and retail.  

To remain competitive, Vietnamese businesses are encouraged to innovate, invest in advanced technologies, and improve product quality. Over time, this drive for innovation can strengthen the reputation and competitiveness of Vietnamese products in both domestic and international markets.

2. Reducing Dependency on Imports  

Vietnam’s reliance on imported goods, particularly low-value items, has long been a concern. The move to abolishing tax exemptions in Vietnam reduces this dependency by encouraging businesses to source materials and products locally.  

This shift not only supports the domestic supply chain but also mitigates risks associated with global supply disruptions or trade conflicts. A stronger local supply base contributes to a more self-sufficient and resilient economy.

3. Strengthening Tax Revenue and Public Investments  

One of the key benefits of abolishing tax exemptions in Vietnam is the increased tax revenue generated from import taxes and VAT. These funds provide the government with additional resources to invest in critical areas such as infrastructure, education, healthcare, and technological advancements.  

These public investments not only enhance the quality of life for citizens but also create a more supportive environment for businesses, leading to broader economic growth.

4. Promoting Sustainable Trade Practices  

The policy discourages the over-importation of low-value goods, which often contributes to waste and inefficiency. By shifting focus to higher-value imports and encouraging local production, abolishing tax exemptions in Vietnam promotes sustainable trade practices that align with global economic and environmental trends.

By addressing these areas, the policy shift towards abolishing tax exemptions in Vietnam serves as a catalyst for Vietnam’s long-term economic development, fostering innovation, self-reliance, and sustainability.

The abolition abolishing tax exemptions in Vietnam for goods under 1 million VND represents a significant transformation in the country’s trade and tax policies. While it has introduced challenges for importers, e-commerce platforms, and consumers, it also offers opportunities to strengthen domestic industries and improve regulatory compliance.  

This turning point calls for collaboration, innovation, and resilience from all stakeholders to ensure Vietnam continues to thrive in the evolving global market.  

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/abolishing-tax-exemptions-in-vietnam.html

20 Essential Insights from Employment Dispute Lawyers in Vietnam: Easily Avoiding Mistakes

  As Vietnam emerges as a global business hub, foreign companies are increasingly establishing operations in the country, attracted by its young workforce, growing economy, and strategic location. Alongside this growth, however, is a rise in employment disputes due to Vietnam’s employee-centric labor laws and cultural nuances in workplace dynamics. For foreign employees working in Vietnam, understanding their rights and obligations is equally critical.

In here we will discuss key legal questions about employment disputes in Vietnam, offering insights from seasoned employment dispute lawyers in Vietnam to help foreign companies and employees avoid pitfalls, save costs, and operate effectively.

What Are the Most Common Employment Disputes in Vietnam?

Common disputes include wage disagreements, wrongful termination claims, workplace harassment, and conflicts over severance packages. For foreign companies, disputes often arise from cultural misunderstandings or differences in labor expectations. Experienced employment dispute lawyers in Vietnam can identify these risks early and offer preventative solutions.

How Do Vietnam’s Labor Laws Favor Employees?

Vietnamese labor laws strongly protect employees, offering strict guidelines on termination, working conditions, and severance. Employers are often required to provide justifications and follow legal procedures for dismissals. Foreign companies must adjust their practices to align with these laws, which employment dispute lawyers in Vietnam can clarify.

Can Foreign Companies Draft Contracts Using Their Home Jurisdiction?

No, employment contracts for workers in Vietnam must comply with Vietnamese labor laws. Foreign companies that fail to adapt their contracts risk disputes and potential penalties. Employment dispute lawyers in Vietnam ensure contracts meet legal requirements while protecting the company’s interests.

What Are the Legal Protections for Foreign Employees in Vietnam?

Foreign employees enjoy many of the same protections as local employees under the Labor Code, including rights to fair wages, social insurance, and dispute resolution. However, specific visa and work permit requirements also apply. Consulting employment dispute lawyers in Vietnam ensures compliance and reduces risks.

How Do Remote Working Trends Impact Employment Disputes?

Post-COVID, remote working has become common, especially for foreign companies hiring Vietnamese employees. Disputes often arise over unclear agreements regarding work hours, performance expectations, or termination policies. Drafting remote work agreements with the help of employment dispute lawyers in Vietnam minimizes these conflicts.

What Are the Consequences of Non-Compliance with Vietnamese Labor Laws?

Non-compliance can result in fines, legal action, or damage to a company’s reputation. For foreign employers, understanding local labor laws with the guidance of employment dispute lawyers in Vietnam is crucial to avoid costly consequences.

Can Companies Terminate Employees Without Notice in Vietnam?

In most cases, termination without notice is prohibited unless the employee commits a serious violation. Employers must follow strict procedures to terminate legally. Employment dispute lawyers in Vietnam can guide companies through these processes.

What Disputes Arise from Non-Compete Clauses?

Vietnamese labor law does not explicitly recognize non-compete clauses, leading to disputes over enforceability. Employment dispute lawyers in Vietnam can help draft enforceable agreements that protect business interests while adhering to legal standards.

How Do Wage Disputes Typically Arise in Vietnam?

Wage disputes often involve unpaid salaries, delayed payments, or disagreements over overtime compensation. Companies should maintain clear payment policies and consult employment dispute lawyers in Vietnam to avoid these issues.

What Role Do Employment Dispute Lawyers in Vietnam Play in Negotiations?

Lawyers act as mediators, negotiators, and advisors during disputes. Their expertise in local labor laws and cultural nuances ensures efficient and fair resolutions.

Are Employers Liable for Social Insurance Contributions?

Yes, employers must contribute to social insurance for employees, including foreign employees. Failure to do so can result in legal action. Employment dispute lawyers in Vietnam can audit compliance and avoid penalties.

How Are Disputes Over Unpaid Overtime Resolved?

Employees in Vietnam are entitled to overtime pay as per the Labor Code. Disputes often arise from misunderstandings about overtime eligibility. Employers can mitigate these issues by consulting employment dispute lawyers in Vietnam to establish clear policies.

What Are the Steps for Mediation in Labor Disputes in Vietnam?

Vietnamese law emphasizes mediation as a primary method for resolving labor disputes. Labor mediators are often involved to help both parties reach mutual agreements. Mediation is faster, cost-effective, and less adversarial than litigation. Employment dispute lawyers in Vietnam often represent clients in these processes to ensure their interests are protected.

What Is the Legal Process for Addressing Wrongful Termination?

Wrongful termination claims often involve significant penalties for employers. The legal process includes filing complaints with labor authorities or pursuing court action. Employment dispute lawyers in Vietnam ensure proper documentation and representation.

How Can Companies Minimize Remote Work Disputes?

Clear communication, transparent agreements, and compliance with labor laws are key. Employment dispute lawyers in Vietnam help draft comprehensive policies to address remote work challenges.

How Should Foreign Employees Handle Contractual Violations?

Foreign employees should seek legal advice if employers violate contractual terms. Employment dispute lawyers in Vietnam can advocate for fair resolutions through mediation or court.

What Are the Key Steps for Employers to Resolve Disputes Quickly?

Employers should maintain open communication, document all interactions, and engage employment dispute lawyers in Vietnam early to avoid escalation.

How Does the Trend of Hiring Freelancers Impact Employment Disputes?

Freelance arrangements often lack clear legal frameworks, leading to disputes over payments or misclassification of workers. Employment dispute lawyers in Vietnam can clarify these relationships and minimize risks.

What Happens When a Dispute Involves Cross-Border Employment?

Cross-border employment disputes involve complex legal considerations. Employment dispute lawyers in Vietnam can navigate international and local laws to resolve such cases effectively.

How Can Employment Dispute Lawyers in Vietnam Help You Avoid Litigation?

By offering preventive advice, drafting compliant contracts, and mediating disputes, lawyers minimize the risk of costly litigation. Their expertise ensures businesses operate smoothly and employees feel protected.

• Conclusion

Employment disputes in Vietnam can be complex, especially for foreign employers and employees unfamiliar with local labor laws. Partnering with employment dispute lawyers in Vietnam provides the expertise needed to navigate these challenges effectively. Whether it’s compliance, contract drafting, or dispute resolution, these professionals ensure fair and efficient outcomes for all parties involved.

If you’re entering the Vietnamese market or working in Vietnam, don’t wait for a dispute to arise. Consult with employment dispute lawyers in Vietnam today to safeguard your rights and interests.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/disputes/employment-dispute-lawyers-in-vietnam-20.html

The Revised Law on Asset Auctions 2024: A Significant Step Forward in Vietnam’s Asset Management and Judicial Auctions

  Vietnam has made substantial progress in refining its legal framework to meet growing demands for transparency, efficiency, and fairness in asset management. The Revised Law on Asset Auctions 2024, effective from January 1, 2025, represents a major advancement in enhancing regulations to ensure that auctions are conducted transparently, fairly, and effectively. This article examines the key highlights of the new law, with a focus on its impact on judicial auctions in Vietnam.

Expanding the Scope of Asset Auctions

The Revised Law on Asset Auctions 2024 broadens the range of assets subject to auction compared to its predecessor. It includes critical categories such as mining rights, natural resources, and state-owned assets involved in the equitization of state-owned enterprises.

This expansion underscores the importance of auctions as an essential mechanism to ensure competitive and transparent management of public resources in Vietnam.

Judicial Auctions: Reforms to Address Challenges

1. Challenges in Judicial Auctions under the Previous Law on Asset Auctions

The process of judicial auctions in Vietnam faced several significant issues under the previous legal framework, including:

• Legal disputes: Assets involved in legal conflicts were sometimes auctioned, exposing buyers to substantial risks.
• Incomplete information: Asset details were often inadequately disclosed or inaccurate, leading to mistrust among participants.
• Weak accountability by enforcement agencies: Many enforcement agencies failed to verify or disclose essential legal information about assets adequately.
• Delays in execution: The auction process was frequently protracted, adversely affecting judgment creditors and other stakeholders.

2. Solutions in the Revised Law on Asset Auctions 2024

The Revised Law on Asset Auctions addresses these challenges through pivotal reforms tailored to Vietnam’s legal and administrative landscape:

Verification and disclosure of asset information:

• Judicial assets must undergo thorough verification of their legal and financial status before being listed for auction.
• Asset details, including legal documentation and valuation, must be disclosed on the national auction portal at least 15 days prior to the auction.

Exclusion of disputed assets:

• Assets under unresolved legal disputes or lacking legal clearance are barred from being auctioned, safeguarding buyers from potential conflicts.

Enhanced accountability for enforcement agencies:

• Agencies responsible for judicial execution are required to manage and disclose comprehensive, verified information about assets.
• Strict penalties have been introduced for non-compliance by officials or agencies involved in managing judicial auctions.

Protection of buyers’ rights:

• Buyers are guaranteed legal ownership of auctioned assets upon completing the transaction.
• Legal provisions now explicitly allow buyers to seek compensation or annul the transaction if inaccuracies or misrepresentations in disclosed information are identified.

Promotion of technology in auction management:

• Vietnam’s judicial auction system will incorporate online platforms integrated with enforcement data, allowing stakeholders easy access to verified information.
• Digital solutions also minimize unnecessary interference and improve transparency.

3. The Impact of Reforms on Vietnam’s Judicial Auctions

The reforms are expected to enhance efficiency in processing judicial auctions, foster greater trust among buyers, and align Vietnam’s auction system with international best practices. Transparent procedures and stringent agency accountability are anticipated to reduce disputes and mitigate post-auction risks.

Strengthened Regulations for Auction Organizations

The Revised Law on Asset Auctions imposes stricter requirements on auction organizations in Vietnam to elevate professionalism and accountability. Key provisions include:

• Financial capability as a prerequisite for participation.
• Mandatory registration with Vietnam’s National Asset Auction System.
• A qualified team to oversee and execute auction processes.

These measures ensure stricter oversight and compliance, fostering confidence in the auction ecosystem.

Promoting Transparency in Auction Processes

The law on asset auctions sets higher standards for transparency in Vietnam’s auctions. All auction-related information must be disclosed on the national auction portal at least 15 days before the auction date. This policy improves competition and ensures public accountability.

Additionally, Vietnam’s adoption of online auctions has expanded access to international participants, reduced costs, and streamlined the process.

Elevated Responsibility for Auctioneers

Auctioneers play a critical role in Vietnam’s revised auction framework. The Revised Law on Asset Auctions emphasizes their responsibilities through:

• Ongoing training requirements: Auctioneers must undergo periodic training to maintain certifications.
• Tougher penalties for violations: Severe repercussions await auctioneers involved in fraudulent activities, collusion, or information leaks.

Enhanced Oversight and Penalties

The Revised Law on Asset Auctions grants Vietnamese regulatory agencies greater authority to monitor auction processes and impose strict penalties on violations. Infractions such as falsifying information, abusing authority, or obstructing auction procedures now carry significant consequences, reinforcing adherence to the law.

The reforms introduced by the Revised Law on Asset Auctions 2024 address existing challenges and contribute to building a transparent, efficient, and fair legal environment. Notably, the new regulations on judicial auctions underscore Vietnam’s commitment to improving asset management effectiveness and aligning with international standards.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/the-revised-law-on-asset-auctions.html