Asia Newsletter

Vietnam:Newsletter on ‘M&A Approval Under the New Law on Investment 2020 and Decree 31/2021/ND-CP’

Asia Newsletter

The new Law on Investment No. 61/2020/QH14 (“LOI 2020”) and Decree 31/2021/ND-CP (“Decree 31”) introduce substantial changes to the framework of M&A approval. The changes are lauded to provide clearer guidance for foreign investors, especially in terms of business sectors that are open to foreign investment. Still, coming with these changes are new issues that require close attention and careful handling by stakeholders. This newsletter gives a brief of the circumstances where M&A approval is legally required and certain potential issues awaiting prospective investors in each circumstance. Under LOI 2020, M&A approval is required if the contemplated transaction falls into any of the following circumstances: Circumstance (i) It causes an increase in the foreign ownership level in a target company...To read the full article, please see the PDF file

*This article is also available in a Japanese version.

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