Close-Out Netting Arrangement Under the Bankruptcy Regime
Decree No. 318/2026/ND-CP introduces statutory protections for close-out netting in qualifying interest rate derivative contracts during bankruptcy proceedings. The decree allows eligible banks and counterparties to terminate covered transactions, calculate a single net amount and realise collateral without prior court approval or suspension under the general bankruptcy regime. It also protects qualifying margin transfers, settlements and set-offs made within the six-month period before bankruptcy proceedings from clawback, and prevents courts or bankruptcy administrators from suspending or terminating eligible master agreements.
The protections are limited to interest rate derivatives that comply with State Bank of Vietnam regulations. Foreign exchange forwards, cross-currency swaps, commodity derivatives and equity derivatives are excluded. Financial institutions and corporate borrowers should review their hedging agreements, collateral arrangements and valuation procedures to ensure compliance and minimise enforcement risks.
Vietnam Reforms Domestic & International Corporate Bond Regime
Decree No. 200/2026/ND-CP overhauls the regulatory framework for domestic private placements and international corporate bond offerings, replacing the previous regime under Decree No. 153/2020/ND-CP and its amendments.
Key changes include a debt-to-equity cap of 5:1 for most issuers, restrictions on using an issuer’s own shares as collateral, and tighter controls on the use of bond proceeds. Individual professional investors face stricter eligibility requirements, while qualifying bonds must meet credit-rating and security conditions. Amendments to bond terms generally require approval from holders of at least 65% of the relevant bond class, with dissenting or non-voting holders entitled to request early redemption. The decree also increases disclosure obligations and statutory liability for intermediaries, introduces specific green bond requirements and establishes transitional rules for existing bonds.
Frasers Law Company’s October 2026 updated Vietnam Power Investment Guide
The guide provides investors, project developers and financial institutions with a practical overview of Vietnam’s evolving power sector and investment opportunities. It covers developments since October 2025, including the revised Power Development Plan VIII, electricity pricing policies and investment incentives for projects such as public-private partnerships (PPPs) and offshore wind.
The guide also examines the roadmap towards a competitive electricity market, direct power purchase agreements and self-generated, self-consumed rooftop solar projects. It outlines the key steps for market entry and project implementation, including foreign investment, independent power producer (IPP) and PPP models, licensing and approvals, project financing, mergers and acquisitions, and power purchase agreements. Additional topics include governing law, dispute resolution, and environmental, social and governance considerations, including greenwashing risks
Read more here:
