China-Vietnam Business Update: Jun. 22

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Jun. 22 – Welcome to our biweekly China-Vietnam roundup in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

Vietnam’s M&A Market: An Overview
Following two major laws concerning M&As in Vietnam which came into effect almost five years ago, namely the “Law on Investment” and the “Competition Law,” the number of M&A deals in Vietnam has surged from 38 in 2006 to 108 in 2007, and from US$299 million to US$1.72 billion over the same time frame.

New Issue of Vietnam Briefing: Vietnam and China – A Comparative Look for Foreign Investors
In this new issue of Vietnam Briefing magazine, we take a look at Vietnam’s increasing attractiveness as an alternative to China as a major manufacturing destination in Asia. Vietnam is increasingly hitting the news for its low labor costs, similar to China many years ago, but the country in fact holds several additional, generally unexplored advantages for foreign investors.

How to Manage Your IP in Vietnam
To build a strong defense against copyright infringement in Vietnam, it is advisable to register a copyright as soon as possible with the National Copyright Office. Patents are registered with the National Office of IP and include inventions and utility solutions while trademarks must be registered in Vietnam or using one of the Community Trademark registration systems. IP “prior rights” are applicable when previously registered elsewhere.

Vietnam’s MoF Proposes Personal Income Tax Reductions
Vietnam’s Ministry of Finance will propose that the government consider the National Assembly Standing Committee’s report covering a number of urgent solutions to help taxpayers awaiting repairs to the personal income tax law.

China’s Territorial Disputes in the South China Sea and East China Sea
Territorial issues in the South China Sea (SCS) and East China Sea (ECS) have gained more attention recently, prompting questions about China’s intentions in the region. Why are these territorial disputes significant, and what are the prospects for future cooperation? Both the SCS and ECS are geopolitically significant and represent an intersection of history, sovereignty and territory, geostrategy, and energy security, impacting China’s relations with its neighbors. This article looks at three major territorial disputes in China’s surrounding waters and discusses the concerns for regional cooperation and stability.

China, Vietnam Trade Blame in Recent South China Sea Incident
In response to Vietnam’s accusation that Chinese fishing boats have intentionally cut the cables of a Vietnamese oil and gas exploration vessel recently in the South China Sea (known as East Sea by the Vietnamese), Chinese Foreign Ministry Spokesperson Hong Lei issued a condemnation of Vietnam on June 9, and urged its neighbor to stop all actions that may escalate territorial tensions in the area.

Dezan Shira & Associates maintain offices in Hanoi and Ho Chi Minh City and can advise foreign investors on establishing operations in the country. The firm also provides due diligence, tax and accounting advice. Please email, visit the practice at, or download the firm’s brochure here.

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