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INSIGHTS

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We provide you with all of the latest legal developments in Southeast Asia, ensuring that you have the up-to-date knowledge you need to navigate the ever-changing legal landscape affecting your business. You can browse our entire library of publications below, and email [email protected] to sign up for updates that are relevant to your interests, delivered straight to your mailbox, as they emerge.

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January 10, 2023
The National Assembly of Vietnam promulgated a new Law on Cinema in June 2022 with an effective date of January 1, 2023. To guide the implementation of the new law and the sanctioning of administrative violations thereof, the government of Vietnam issued two related decrees in the final days of 2022. Cinema Decree On December 31, 2022, the government issued Decree No. 131/2022/ND-CP elaborating a number of articles of the Cinema Law (“Cinema Decree”), which took effect with the new law on January 1, 2023. Among the many issues under the Cinema Law guided by the Cinema Decree, one that is critical to over-the-top (OTT) media service providers is the set of conditions for performing the mandatory self-rating of films to be disseminated in cyberspace. According to the Cinema Law, meeting the film self-rating conditions is one of the prerequisites for online dissemination of films. If a film disseminator does not meet these conditions, it would be required to request the Ministry of Culture, Sports and Tourism (MOCST) to perform the rating. The conditions for online disseminators to self-rate their films have now been set out under Article 12 of the Cinema Decree. Accordingly, these conditions include: Having a film rating council or technical software or a mechanism to rate the films according to Vietnamese regulations on film rating and taking responsibility for the results of film rating. Having a plan to amend and update film rating results at the request of the cinematography authority (for most providers, this is the Cinematography Department under the MOCST). Having an administrative tool to support the rating of films according to each of the rating criteria and to flexibly display the updated rating immediately after the rating is changed. Having a technical plan and process for suspending and removing films at the request of the cinematography authority. Upon a request
January 10, 2023
On January 9, 2023, Vietnam’s National Assembly voted to approve a draft resolution on the continued implementation of policies for the prevention and control of the Covid-19 pandemic. Under this resolution, marketing authorizations (MAs) for the following drugs and medicinal ingredients will be extended to December 31, 2024, allowing continued use in Vietnam: Drugs and medicinal ingredients whose MAs expire from January 1, 2023, to December 12, 2024, and whose extension dossiers have been submitted but have not yet been approved in accordance with the Law on Pharmacy; and Drugs and medicinal ingredients whose MAs have been extended as per Resolution No. 12/2021/UBTVQH15 and have not been extended in accordance with the Law on Pharmacy. The extension does not apply to the following cases: Drugs and medicinal ingredients that have been recalled by the Law on Pharmacy; Drugs with signs of being unsafe for users that have been suspended from circulation/use and sealed for preservation in accordance with the Law on Pharmacy; and Drugs with MAs having a validity term of three years in accordance with the Law on Pharmacy. The Ministry of Health will announce the list of drugs and medicinal ingredients whose MAs are subject to be extended as described above.
January 5, 2023
Data protection in Vietnam has been an ever-changing area of law in the last few years, with many legislative and practical developments. From its initiative to build the very first comprehensive Personal Data Protection Decree to meet international standards, to its actions to tackle widespread illegal data processing and trading, the Vietnamese government has shown its determination to strengthen the protection of data, which it has recognized as one of the national key tasks in the Prime Minister’s Strategy for Development of E-Government. The year 2023 is expected to be another year of many important changes made to the law and practices in this area. This article discusses what we anticipate to be the key upcoming developments in Vietnam’s data protection regime that businesses may wish to keep a close eye on to ensure compliance. Tightened Rules on Data Collection and Data Transfer The conditions for personal data processing under the current law are rather sketchily outlined. In general, the data subject’s consent to the scope and purposes of the data processing may be considered sufficient for any collection, use, retention, or sharing of personal data. Explicit consent is not clearly required, except when the data is collected in e-commerce, used for direct marketing purposes, or for other strictly controlled activities. This leads to the practice where data controllers usually do not treat consent as a serious matter. In addition, once consent has been obtained, data controllers tend to comfortably collect whatever data they want, since the law does not require the collection to be “proportionate.” This situation is expected to change in 2023 with more stringent regulations on personal data processing underway. The first and most influential set of rules on data protection to come out early this year will likely be the much talked-about Personal Data Protection Decree (“PDPD”) developed
January 4, 2023
Thailand has announced a reduction of the government fees for registering sale and mortgage of certain types of immovable property or condominium units in 2023. The reductions were detailed in two notifications issued by the Ministry of Interior dated December 26, 2022, and published in the Government Gazette on January 3, 2023. These two notifications, which will remain in effect through December 31, 2023, are part of the government’s efforts to strengthen the real estate business sector and encourage property ownership. They set government fees for registration of sale and mortgage of immovable property or condominium units as follows: Sale of immovable property or condominium unit: 1% of the officially assessed value (reduced from 2%) Mortgage of immovable property or condominium unit: 0.01% of the mortgage amount (reduced from 1%) The above reduced rates apply only to the sale and mortgage to Thai individuals of detached houses, semidetached houses, row houses, commercial buildings, and the land surrounding these buildings, as well as of condominium units. The property sale price, officially assessed value, and mortgage amount each must not exceed THB 3 million (approximately USD 90,000). To qualify for the reduced mortgage registration rate, the sale and mortgage must be registered at the same time. For more details on the reduced fees, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected].
January 4, 2023
In early November 2022, a Thai appeals court overruled the Trademark Registrar’s decision and the Board of Trademarks’ ruling by upholding the registrability of an oil company’s trademark application for its branded service station layout. This is the latest word in a long-running dispute between ExxonMobil and the country’s Department of Intellectual Property (DIP), which had previously rejected the mark as indistinctive. ExxonMobil first filed applications in April 2015 for a trademark bearing a unique colorful drawing of the layout of a service station bearing its well-known registered “ESSO” mark in International Classes 4 and 35 in Thailand. However, the Thai Trademark Registrar refused to register the mark, arguing that the mark was devoid of inherent distinctiveness because the service station layout drawing is directly descriptive of the applied-for goods and services related to oil products. According to the Registrar, the public would not be able to distinguish between the goods and services bearing ExxonMobil’s mark and those bearing the marks of others. ExxonMobil appealed this refusal to the Board of Trademarks, which ultimately agreed that ExxonMobil’s marks are devoid of inherent distinctiveness. The Board explained that the dominant elements in the drawing consist of a common service station with fuel dispensers, which is directly related to the applied-for goods and services related to oil products. The Board also deemed that the submitted evidence was insufficient to prove that the mark had gained distinctiveness through use. ExxonMobil disagreed with these rulings and thus filed a civil complaint with the Intellectual Property and International Trade Court (IP&IT Court) to revoke the Registrar’s decisions and the Board’s rulings. The IP&IT Court examined the case and issued its judgment in favor of ExxonMobil, ruling that the marks are inherently distinctive. The Court noted that to consider a mark’s distinctiveness, it is crucial to determine the elements that
January 4, 2023
In decisions dated 29 September 2022, the Lao Department of Intellectual Property (DIP) has cancelled two trademark registrations based on their confusing similarity to earlier marks. An official from the DIP unofficially confirmed that these decisions are the first of their kind in Laos and, as such, constitute a positive step that puts legal provisions into actual practice. Background In Laos, cancellation proceedings against a registered mark are not common, as the number of applications in the country is relatively low and thorough substantive examination only began to be carried out in recent years. There was previously no precedent for how cancellation decisions would be handled, despite the Law on Intellectual Property (No. 38/NA of 15 November 2017) allowing a third party to file a petition for the cancellation of a registered mark if it can be proven that the mark should not be granted registration. The Law on Intellectual Property states that a third party may object to, or request the cancellation of, a trademark registration within five years of its date of publication in the Official Gazette. However, it is difficult to ascertain how to calculate the five-year period if the mark was registered before June 2019, as publication in the Official Gazette was first made available at that time. This could mean that the five-year statutory limitation for trademark cancellation in Laos could start from June 2024, but how this will be applied in practice remains to be seen. The Case This case began when Siam Kubota Corporation Co Ltd took action against two marks that looked similar to its own earlier marks (see Figure 1): Figure 1. Earlier registered marks Siam Kubota registered its marks in 2009 for goods in Class 12, and has extensively used and protected the marks in Laos. After reviewing its options, Siam Kubota submitted petitions for the
December 30, 2022
Thailand’s cabinet has approved draft legislation to impose a financial transactions tax (FTT) on securities trading in the Stock Exchange of Thailand (SET). The cabinet’s decision, which came on November 29, 2022, sets Thailand on a path to repeal a tax exemption that has been in place for over 30 years. If the legislation is ultimately passed, the FTT will be applied to transactions starting in April 2023. The sale of securities on the SET has been exempt from specific business tax (SBT) since December 1991 in an effort to promote trading on the secondary market and boost the domestic economy. The draft legislation approved by the cabinet in November 2022 aims to repeal the SBT exemption on securities trading on the SET and impose an FTT, which is a kind of SBT imposed on a specific commercial transaction. It is an indirect and transactional tax (similar to a sales tax) and is imposed on gross receipts, not on value added at each stage of manufacturing, trading, or service like VAT. Generally, securities sellers are the ones liable for FTT. However, the draft law stipulates that securities brokers are to withhold FTT from the gross share sales income and remit it to the Revenue Department on behalf of the securities seller within the 15th (or 23rd, depending on circumstances) day of the next month through the Revenue Department’s e-filing platform. Under this arrangement, securities sellers and investors do not have any duty to remit SBT, and sellers have no reporting obligations regarding sale transactions. Under the current draft, the imposition of FTT will be implemented in two phases, with an initial reduced rate as detailed in the table below. The securities subject to FTT include shares (both ordinary and preference), warrants, derivative warrants, exchange traded funds, depositary receipts, mutual fund units, and transferable
December 29, 2022
On December 20, 2022, Thailand’s cabinet approved draft legislation providing further Land and Building Tax reductions of 15% in 2023, on top of current reductions in tax rates, on some types of taxable property. When enacted, the legislation will provide further tax reductions only for the property types in the table below. Moreover, in early December, Thailand’s Ministry of Interior promulgated an announcement extending the deadline for tax assessment notification and tax payment (including by scheduled installments) by another two months from the previous statutory deadline of December 20, 2022. The key deadline extensions are shown in the table below. The Land and Building Tax is a property tax collected annually, with rates varying based on the purpose of use—agricultural, commercial, industrial, or residential. Owners or possessors of land or buildings are liable for Land and Building Tax, which is computed based on the officially appraised value of the property. For more information on Thailand’s Land and Building Tax, please contact Auaychai Sukawong at [email protected] or Chaiwat Keratisuthisathorn at [email protected].