Mergers and acquisitions (M&A) transactions are essential for businesses looking to grow and optimise their operations. This article dives into the legal framework and current conditions surrounding asset purchases in Vietnam, a topic particularly relevant as the landscape evolves.
Key Points
- M&A in Vietnam often involves acquiring either partial equity interests or specific assets of a target company.
- Legal frameworks governing these transactions include the Enterprises Law, Investment Law, and the Civil Code.
- Approval processes vary based on the value of the assets or equity involved, with significant transactions requiring shareholder consent.
- Acquirers must consider third-party agreements, particularly concerning mortgages and labour issues pertaining to employees.
- Tax obligations like corporate income tax and VAT are crucial considerations, with specific rules depending on whether projects are completed or still in progress.
Why should I read this?
If you’re involved in M&A, especially in Vietnam, this article cuts through the legal jargon to lay out what you really need to know. Understanding these processes can save you time and help you navigate the often murky waters of asset acquisitions, making it a must-read for professionals in the field.