Vietnam - Legal Overview - Build Operate Transfer Contracts

The laws of Vietnam are complex and new legislation is constantly being introduced. What follows is no more than an introductory overview that we hope will assist investors to decide which areas of law they will need to research further.

This summary is, necessarily, selective and is no substitute for detailed legal advice.

1. The essential concept of a BOT Contract is that the foreign sponsors (defined in the legislation as the "investors") contract with a state body to build and operate a facility for a certain period of time. The investors receive an agreed return. At the end of the contract, the investors are required to transfer the facility to the Government without charge.

2. The BOT Contract has to be implemented by a 100 per cent foreign owned company or by a JVC, established in compliance with the Law on Foreign Investment.