Vietnam is becoming an increasingly important market for talent, and we have witnessed growing demand for the offering of share-based awards to employees in Vietnam in recent years. Due to currency control restrictions imposed by the State Bank of Vietnam (SBV), including the requirement that each plan be registered with the SBV, it has traditionally been challenging to implement a share plan in Vietnam. Since the adoption of Circular 10 in 2016, the SBV registration process has been clarified and a growing number of companies have successfully registered their plans with the SBV.
That said, companies should be cognizant of the remaining obstacles and challenges in offering awards in Vietnam, ideally before making any grants. It is important for companies to weigh the costs and benefits of obtaining SBV approval, given that the application process remains a significant undertaking and the ongoing requirements necessitate continued resources.
For the latest SBV guidance on the registration and approval process, as well as the pitfalls and challenges to consider, we encourage you to read and share our white paper with your stock plan teams.
For more information on how our team can help your company can navigate the SBV approval process, contact your Baker McKenzie Compensation attorney or send us a general inquiry today.