New Investment Law 2021 Will Confound Investors' Expectations in M&A

Updated: Dec 25, 2020

In the upcoming months, the new rules on separation and merger of the projects, which take effect from early 2021, are expected to facilitate the activities of Mergers and Acquisitions (M&A).

After the new Law on Investment takes on effect in 2021, investors will be able to venture further into more conditional industries into the separation and merger transactions.


Key highlights in the proposal of the new law related to M&A:

  • Still in the drafting process, expected to come into effect in early 2021

  • 50 percent (instead of 51 percent) foreign ownership to be deemed foreign investors (instead of being treated as domestic businesses as stated in the 2014 law). Under the new law, these businesses have to follow all business procedures and conditions applicable to them (e.g. they must have investment registration certificates, etc.)

  • The Law of Investment 2021 also includes several key sectors that foreign investors are encouraged to invest in, such as college education, manufacture of medical equipment and all pharmaceutical products, manufacture of products and provision of services that create or participate in the value chain or associated industries, innovative start-up projects, research & development centers, social housing, small- or medium-sized business incubators, and co-working space for small- or medium-sized businesses.

Such changes can create a game-changing shift in the investment landscape in Vietnam for domestic and foreign businesses.


M&A has long been proven to be an attractive investment channel for Vietnam. Understanding the Vietnam market with its new legal framework and business opportunities in this new scene is obviously crucial for investors. Let Broad Avenue Team spare you the trouble of the complicated new laws and help cut short your journey to success, with our core team of professionals having Ivy-League background and 50+ years of experience in real estate, finance, and analysis!




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