The Central Bank of Myanmar (“CBM”) issued Notification No. 195/2022 to Union Ministers, Regional or State Governments, City Development Committees of Nay Pyi Taw, Yangon and Mandalay on 25 May 2022 directing domestic payments to be made in Myanmar Kyat (“MMK”).   This is a follow-up to Notification no. 12/2022 issued on 3 April 2022 […]

In this briefing the team of VDB Loi (Vietnam) answers to the most frequently raised questions relating to the provision of foreign loans to companies in Vietnam. This article generally assumes that parties are looking to implement long-term financing for a company registered in Vietnam. Note that additional requirements may apply to certain specifically regulated […]

In accordance with the notification issued by the Central Bank of Myanmar on 3 April 2022 regarding the conversion of USD into MMK within one working day, the Ministry of Commerce (“MOC”) has confirmed that it will assist importers/exporters regarding the facilitation of applications to buy USD used for their businesses with the Foreign Exchange […]

On 3 April 2022, the Central Bank of Myanmar (“CBM”) issued two regulations to be aware of—Notification No. 12/2022 (the “Notification”) to all Myanmar residents (both Myanmar citizens and foreigners) and Directive No. 4/2022 (the “Directive”) to banks holding authorized dealer licenses, instructing them on complying with matters under the Notification. The Notification repeals CBM […]

The Ministry of Finance of the Lao PDR is aware of the difficulty in submitting the FY2021 financial statements due to the new wave of COVID-19 that is spreading. Thus, today the Minister of Finance issued Notice No. 0933/MoF to postpone the deadline for submission of the FY2021 financial statements to the accounting and tax […]

Recently, the Trade Department of the Ministry of Commerce issued Newsletter No. 2/2022 for additional items requiring an import license. This follows previous action by the department of adding commodity lines 3070 (Newsletter No. 18/2021) and 826 (Newsletter No. 1/2022) to the list of those requiring an import license. Effective from 2 March 2022, the […]

The Central Bank of Myanmar (“CBM”) issued two notifications on 3 March 2022 providing permission and guidelines for Baht/Kyat direct payments at the Thai-Myanmar Border. They are effective from the above date and apply to designated banks and all exporters and importers involved in the Thai-Myanmar cross-border trade. Purpose In order to promote the local […]

In this note we discuss the evolving legal and regulatory practices with respect to the pre-existing loan arrangements in light of the cash flow and other challenges faced by some of the borrowers. Parties can potentially follow different approaches depending on the current status of borrower’s indebtedness. Another important factor is how many lenders a […]

Three years on from the issuance of the Law on Trusts (dated 2 January 2019), the Non-Banking Financial Services Authority (“NBFSA”) issued Prakas No. 003 F.S.A.PrK on 26 January 2022 on Rules for the Management, Establishment, and Functioning of Trusts (“Prakas”) to set out the rules, conditions, and procedures on the establishment of trusts, their […]

The Central Bank of Myanmar (“CBM”) issued a notification on 20 January 2022 regarding ‘write-off’ of loans given by banks and non-bank financial institutions (“NBFIs”) to related and unrelated parties. The Notification is effective from the above date and is applicable to all banks and NBFIs (collectively, “Financial Institutions” or “FIs”). Loan risk management The […]

With a lack of thin capitalization rules in Cambodia, interest free loans have been the norm for many Multinational Enterprises funding their investment and ongoing operations in Cambodia. However, loss making or small profit margin Cambodian Taxpayers with interest free loans have found themselves facing large tax reassessments over the past three and a half […]

Two new laws related to private investments were recently adopted in Cambodia. The Law on Investment dated 15 October 2021 (the “New Law on Investment”) and the Law on Public-Private Partnership dated 18 November 2021 (the “PPP Law”). Highlights of this note The New Law on Investment New Process of Registration: Online Application Incentives Investment […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 43/2021 on 3 November 2021 whereby it has capped the amount that can be paid in cash for the purchase, sale and transfer of basic goods, services or other types of payment at MMK 20 million per transaction. The Notification further states that parties should use […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 46/2021 on 10 November 2021 which amends Clause 35 of the Foreign Exchange Management Regulations as follows: “The holder of a foreign currency trading licence shall inspect whether the exporters receive export earnings within three months from the date of the shipment of the goods according […]

The State Administration Council passed Law No. 57/2021 on 6 October 2021 (“Law”) amending certain sections of the Foreign Exchange Management Law 2012 (“FEML”). The Law amends Section 41 of the FEML which previously restricted ‘foreign exchange licensees’ from violating any rules, regulations, procedures etc. issued under the FEML. The Law has removed the term […]

Dubbed by some “an economic miracle”, even the global pandemic has not been able to stamp out Bangladesh’s upward development trajectory. It eked out its larger neighbor India in terms of GDP growth according to World Bank reporting, at least in 2021, and its projected GDP growth for 2022 is higher than that of Pakistan, […]

The Monetary Policy Department of the Bank of the Lao PDR (“BOL”) issued Instruction No. 878/MPD on 2 August 2021 (“Instruction No. 878”) to implement its mandate requiring all currency exchange bureaus operating in the Lao PDR to become representatives of local commercial banks on or before 11 October 2021. Those that fail to do […]

The Central Bank of Myanmar (“CBM”) issued Directive No. MaBaBaa/MP/FIR/Bank Si Sit/1(4/2021) with effect from 2 August 2021 titled “Matters regarding foreign workers employment compliance” (“Directive”).

The Central Bank of Myanmar (“CBM”) issued a directive on 15 June 2021 (“Directive”) to Non-banking Financial Institutions (“NBFIs”). The Directive sets out the documents that an NBFI requires to provide to the CBM as part of its application to seek approval for (i) opening or closing a branch office or (ii) relocation of it’s […]

In order to reduce and relieve the economic impact from the second wave of the COVID-19 pandemic in the Lao PDR, the Prime Minister’s Office has issued Notice No. 532/PMO dated 20 May 2021 (the “Notice”) specifying policies for further implementation by the relevant governmental authorities. 1. Tax policies Exemption from personal income tax for […]