Below are some articles about financing deals VILAF has recently been involved as local counsel:

Fund raising in Vietnam is subject to various restrictions and the following requests have been proposed to Vietnamese government:

Currently, Vietnam Government is negotiating the construction of power stations under BOT contracts with foreign investors and the negotiation usually lasts from 1 to 5 years due to many difficulties. However, on 12 September 2011, Prime Minister issued Official Letter No.1604/TTg-KTN regarding some policies for developing BOT power projects in Vietnam. Although being applicable to BOT power projects only, Official Letter 1604 has set a positive precedent to develop infrastructure projects while waiting for the perfection of Vietnamese legal framework.

Compared to banks, licensing requirements for finance companies have become relatively simple thanks to Decree 81, with many companies recently beginning operations; however, there is still work to be done. EVN Finance Joint Stock Company, Toyota Finance Services Viet Nam Company Limited and GE Money Viet Nam Finance Company Limited are among some of the new companies that have emerged as the State Bank of Viet Nam (SBV) has tightened licensing procedures for new banks.

The State Bank of Viet Nam has offered up for public comment a draft decree on the organisation, management and operation of commercial banks, intended to replace Decree 49/2000/ND-CP of September 2000.

According to the State Bank, Decree 49 has demonstrated a number of weaknesses during its time, not least of which is that it does not stipulate in detail qualifications, duties and responsibilities of general directors or members of bank boards and audit committees.

Major changes

Firstly, whereas Decree 165 only dealt with mortgages, pledges and guarantees, the draft Decree also brings escrow deposits, advance deposits and security deposits within the secured transactions regime. This will clarify the legal rights and obligations of parties to these transactions, particularly with regard to liability in the case that the deposit is lost, destroyed or devalued while in the custody of the deposit taker.

Vietnam will need US$109bil from 2006 to 2025 to develop the power industry, of which $72bil in hoped-for investment would go to development, according to the Electricity of Vietnam (EVN). Under the plan, $5bil a year may soon be pumped into power projects if EVN calls for foreign investment find an audience.

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