On July 1, the Unified Enterprise Law, regulating the form, organisation and governance of all enterprises, and the Common Investment Law, regulating both domestic and foreign investment, will take effect.
Under the Law on Foreign Investment, still in effect until July 1, neither party to a joint venture can exercise absolute control over the board of management of the joint venture because a management board quorum requires a representative from each party be present at the meeting. Even where a quorum is present, a super-majority or consensus requirement applies to many decisions of the board. In practice, these strict requirements have caused headaches for many joint ventures in Viet Nam as the minority partner is able to deadlock board meetings.
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