On July 24, 2019, Kent Wong, Vice Chairman, and Stefano Pellegrino from EuroCham’s Legal Sector Committee talked to Vietnam Investment Review about improvements to the legal framework motivating the M&A trend in Vietnam, after the signing of the landmark EU-Vietnam Free Trade Agreement (“EVFTA”) on June 30, 2019.

With the strength and vibrancy of the M&A market, they discussed legal changes in recent years. According to Mr. Kent Wong, Partner of VCI Legal, together with Law on Investment 2014 and Law on Enterprises 2014, the Government has implemented legislation to simplify and streamline relevant administrative and regulatory procedures in Vietnam.

Most M&A transactions involving European investors was been in areas such as oil and gas, consumer goods, food and beverage (F&B), and retail.

From a regulatory perspective, there have been some positive trends which may further build investors’ confidence in M&A deals, especially in the retail, fast moving consumer goods, and F&B sectors. The Government has shown a willingness to engage in state divestment, making some of the requirements for foreign investors smoother, and revising the draft amended Law on Securities to ease restrictions on foreign ownership for public companies.

The EVFTA, as well as other bilateral investment treaties and previous FTAs, are anticipated to greatly benefit Vietnamese enterprises and European investors.

The interview can be found at the link below:

https://www.vir.com.vn/heartier-european-appetite-for-ma-dealmaking-via-new-free-trade-agreement-69489.html


DISCLAIMER

This LBN newsletter are NOT legal advice. Readers are advised to retain a qualified lawyer, should they wish to seek legal advice. VCI Legal are certainly among those and happy to be retained, yet VCI Legal is not to be hold responsible should any reader choose to interpret/apply the regulations after reading this LBN without engaging a qualified lawyer.