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Through this newsletter, we offer you a regular selection of legislative and judicial decision insights prepared by LPA lawyers from our six Asian offices as well as some recent news from our teams.<\/p>\n
LEGAL INSIGHTS IN ASIA<\/a><\/p>\n Vietnam<\/a><\/strong><\/p>\n Vietnam’s resolution No. 222\/2025\/QH15: forging legal pathways for Vietnam’s financial future<\/a><\/p>\n Hong Kong<\/a><\/strong><\/p>\n Hong Kong lowers threshold for continuous contracts<\/a><\/p>\n Hong Kong Court clarifies limits on summary dismissal<\/a><\/p>\n Singapore<\/a><\/strong><\/p>\n Singapore Employment Law: September 2025 updates<\/a><\/p>\n Japan<\/a><\/strong><\/p>\n Stricter requirements for the Business Manager visa<\/a><\/p>\n OUR LATEST DEALS<\/a><\/p>\n NEWS FROM LPA<\/a><\/p>\n <\/a> On June 27, 2025, Vietnam\u2019s National Assembly adopted Resolution No. 222\/2025\/QH15 (the Resolution), a key legal instrument aimed at establishing International Financial Centres (IFCs) in Ho Chi Minh City and Da Nang. Through this Resolution, Effective from September 1, 2025, Vietnam affirms its commitment to enhancing its competitiveness and integration within the global financial system.<\/p>\n The adoption of this Resolution comes at a moment of heightened geopolitical and economic uncertainty in Southeast Asia. The region, once a beneficiary of shifting supply chains during the U.S.\u2013China trade war, now finds itself exposed to a new wave of protectionist measures under President Donald Trump\u2019s second term. With U.S. tariffs on Vietnamese exports reaching 20%, on average doubling the previous rates, Vietnam\u2019s export-driven economy faces mounting pressure.<\/p>\n In response, the government is shifting toward financial sector liberalization and global capital integration. The establishment of these IFCs is a strategic bid to position Vietnam as a regional financial centre. \u00a0The bold policy initiatives and legal reforms announcements aims to attract foreign investment, accelerate innovation, and align Vietnam financial infrastructure with global standards.<\/p>\n A new landscape for financial innovation<\/strong><\/span><\/p>\n The Resolution introduces a new legal framework that defines IFCs as geographically designated zones with tailored regulatory, tax, and administrative policies. These zones are intended to receive a broad array of participants, including commercial banks, foreign bank branches, securities firms, insurance companies, fintechs, and non-financial service providers.<\/p>\n One of the key features of the Resolution is its shift from a heavily regulated and constraint system toward a more progressive and innovation-friendly framework. It notably proposes specialized licensing regimes, liberalized foreign exchange controls, and sandbox environments for financial experimentation. Members should notably be authorized to operate under accounting standards and prudential ratios aligned with their parent jurisdictions, a flexibility that mirrors practices in Dubai\u2019s DIFC and Singapore\u2019s SGX.<\/p>\n Membership in the IFCs is open to a broad spectrum of entities<\/strong><\/span><\/p>\n Entities may become members through registration, recognition, or by obtaining a license for establishment and operation, depending on their sector and legal status.<\/p>\n Organizations and enterprises must meet certain standards of financial capacity, reputation, and alignment with the IFC\u2019s development orientation.<\/p>\n Eligible entities include:<\/p>\n Certain high-profile entities are granted membership without registration:<\/p>\n Entities in regulated sectors must follow tailored licensing procedures:<\/p>\n The Executive Body (see below) will manage a centralized Membership Portal and Database, streamlining administrative procedures and enabling data sharing with relevant agencies.<\/p>\n Members enjoy broad operational freedoms, including:<\/p>\n Foreign investors may own the entire or part of the shares or stakes of the Member, offering flexibility in investment structuring, establishing entities without investment registration certificates, significantly reducing administrative burdens and accelerating market entry, and are exempt from capital contribution registration procedures, simplifying compliance and enhancing operational agility.<\/p>\n However, members must also fulfil certain obligations, including:<\/p>\n Vietnam\u2019s decision to open the IFCS to a wide range of participants, coupled with progressive regulatory updates, reflects its ambition to create a financial environment on par with leading global hubs like DIFC and SGX.<\/p>\n Legal innovations and institutional reform<\/strong><\/span><\/p>\n The Resolution also introduces mechanisms for crowdfunding and private placements, alongside the development of green finance markets and carbon credit trading platforms.<\/p>\n Before Resolution No. 222\/2025\/QH15, Vietnam had already taken steps toward fintech liberalization through the issuance of Decree No. 94\/2025\/ND-CP. Promulgated on April 29, 2025, and effective from July 1, 2025, this decree established the country\u2019s first regulatory sandbox for fintech solutions in the banking sector. Administered by the State Bank of Vietnam, the sandbox provides a controlled environment for credit institutions and eligible fintech companies to pilot innovative models such as peer-to-peer lending, open API data sharing, and credit scoring technologies. The initiative aims to balance innovation with consumer protection and systemic stability, offering regulators empirical insights to refine future legislation. Decree 94 marked a pivotal shift in Vietnam\u2019s regulatory posture, laying the groundwork for the more expansive sandbox regimes envisioned under the IFC framework.<\/p>\n Despite its ambitious goals, the Resolution lacks detailed implementation regulation. Key areas, such as licensing procedures, supervisory frameworks, and compliance standards, remain to be defined. In the absence of clear secondary legislation, the effectiveness and success of the proposed IFCs may be significantly undermined.<\/p>\n Governance and oversight<\/strong><\/span><\/p>\n The Resolution does not mandate a standalone financial regulator akin to the DFSA (Dubai) or MAS (Singapore); it outlines a tripartite governance model (in addition to the sectoral regulators), composed of:<\/p>\n The proposed structure aims to balance operational autonomy with legal accountability. Each governing body is explicitly granted independent authority to exercise its designated powers. In particular, the Executive Body is authorized to issue Operational Rules, provided they remain consistent with the Constitution, international treaties, and globally recognized standards.<\/p>\n Despite their autonomy, both the Executive and Supervisory Bodies are required to coordinate with key government ministries\u2014such as the Ministry of Finance and the State Bank of Vietnam\u2014to ensure coherent and effective policy implementation.<\/p>\n However, the involvement of multiple stakeholders may give rise to interpretive gaps in regulatory enforcement and investor protection. Notably, the International Arbitration Centre is prohibited from adjudicating disputes involving the exercise of state power, which may limit its effectiveness in resolving certain high-stakes investment conflicts.<\/p>\n To ensure the effective implementation and long-term viability of the IFCs, the following enhancements are essential:<\/p>\n A critical harmonization with global financial standards<\/strong><\/span><\/p>\n In addition to the challenges above and despite notable progress, Vietnam\u2019s broader legal and regulatory framework remains only partially aligned with international financial standards, particularly in key areas such as prudential regulation and anti-money laundering (AML) compliance.<\/p>\n This situation presents several structural and operational challenges to the success of the IFCs:<\/p>\n For Vietnam\u2019s International Financial Centres (IFCs) to succeed, they must operate within a legal environment that meets the expectations of global investors, regulators, and rating agencies. Without full alignment to international norms, the credibility and competitiveness of these centres may be compromised.<\/p>\n On the horizon<\/strong><\/span><\/p>\n To realize the full potential of Resolution 222\/2025\/QH15, Vietnam must undertake a comprehensive suite of legal reforms. These include:<\/p>\n The Ministry of Finance, in coordination with the State Bank and Ministry of Justice, is expected to lead the codification process. According to the actions plan dated 1st August 2025, the Government plans to promulgate eight decrees in order to build a comprehensive legal framework for the operation of the IFCs. Draft decrees are anticipated by the end of 2025, with stakeholder consultations underway.<\/p>\n Conclusion: a legal blueprint for global integration<\/strong><\/span><\/p>\n Resolution No. 222\/2025\/QH15 is more than a policy statement, it is viewed as the legal blueprint for Vietnam\u2019s integration into the global financial system.<\/p>\n Its success will depend on the country\u2019s ability to translate vision into law, build institutional capacity, and foster investors trust. By learning from the experiences of DIFC and SGX, Vietnam can chart a path toward financial leadership in Southeast Asia.<\/p>\n Etienne Laumonier<\/a><\/p>\n <\/p>\n <\/a> The Employment (Amendment) Bill 2025 (the \u201cAmendment\u201d<\/strong>), gazetted on 27 June 2025 and coming into force on 18 January 2026, has revised the definition of \u201ccontinuous contract\u201d under the Employment Ordinance by lowering the working-hours threshold and introducing greater flexibility. These changes are intended to expand the number of employees eligible for statutory benefits, with a particular impact on part-time staff.<\/p>\n The new \u2018468\u2019 rule<\/strong><\/span><\/p>\n Under the Amendment, the number of working hours to be fulfilled for a worker to qualify as being employed under a \u201ccontinuous contract\u201d has been lowered from 18 hours to 17 hours per week over a period of 4 or more consecutive weeks.<\/p>\n As an alternative to the above test, the Amendment provides that if an employee has worked less than 17 hours in a week, she\/he will still qualify as being employed under a \u201ccontinuous contract\u201d if she\/he has worked an aggregate of at least 68 hours in that week and in the 3 weeks immediately preceding such week.<\/p>\n The Amendment aims at extending the category of workers who are entitled to statutory benefits, such as sickness allowance, maternity leave, statutory holiday pay, statutory annual leave and statutory severance or long service payments, thereby affording additional protection to part-time workers.<\/p>\n Conclusion<\/strong><\/span><\/p>\n The revised threshold under the Amendment relaxes the \u201ccontinuous contract\u201d working-hours requirement, thereby extending statutory protections to a wider group of part-time employees.<\/p>\n From 18 January 2026, employers should review their workforce arrangements and ensure that all employees who qualify as being employed under a \u201ccontinuous contract\u201d under the new \u201c468\u201d rule are accorded the statutory benefits to which they are entitled.<\/p>\n Nicolas Vanderchmitt<\/a> | Camilla Venanzi<\/a><\/p>\n <\/p>\n In the recent decision of Hu Yangyong v Alba Asia Limited [2025] HKCFI 2484<\/em>, the High Court confirmed that summary dismissal is an extreme course of action that shall only be resorted to in exceptionally serious cases in which the employee\u2019s misconduct is so grave that it amounts to a fundamental breach of the employment agreement.<\/p>\n Importantly, this case illustrates that a summary dismissal may be held to be wrongful where the employer has acquiesced to the employee\u2019s irregular practices and\/or where the employer is incapable of establishing dishonest intent on the part of the employee.<\/p>\n The facts<\/strong><\/span><\/p>\n The plaintiff was the Chief Operating Officer of Alba Asia Limited (the \u201cEmployer<\/strong>\u201d). His contract allowed him to claim up to RMB 20,000 per month in family-related expenses, provided he submitted official invoices (\u201cfa piao\u201d).<\/p>\n The Employer summarily dismissed him for allegedly dishonest reimbursement claims after he submitted three hotel invoices (the \u201c3 Hotel Invoices<\/strong>\u201d) that did not in fact relate to his personal expenses.<\/p>\n The plaintiff admitted this practice was irregular but argued it caused no loss to the Employer because:<\/p>\n He also relied on the facts that:<\/p>\n The judgment<\/strong><\/span><\/p>\n The court held that the Employer had wrongfully dismissed the plaintiff because:<\/p>\n Conclusion<\/strong><\/span><\/p>\n This judgment illustrates that in the absence of strong evidence of dishonesty the court may find that an irregular conduct on the part of an employee may be insufficient to justify a summary dismissal. Also, very importantly, this judgment serves as a reminder that employers who have previously tolerated or accepted employees\u2019 irregular conduct may be unable to rely on such conduct to summarily dismiss employees.<\/p>\n Nicolas Vanderchmitt<\/a> | Camilla Venanzi<\/a><\/p>\n <\/p>\n <\/a> I. Work Injury Compensation Act 2019: new compensation limits effective 1 November 2025<\/u><\/strong>[1]<\/a><\/p>\n <\/a><\/p>\n As a reminder, as part of its regular review to keep pace with wage growth and rising healthcare costs, the Ministry of Manpower (\u201cMOM<\/strong>\u201d) has updated the compensation limits under the Work Injury Compensation Act 2019 (\u201cWICA<\/strong>\u201d).<\/p>\n The revised maximum compensation limits, effective 1 November 2025, will increase:<\/p>\n
\n<\/a>LEGAL INSIGHTS IN ASIA<\/h2>\n
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<\/p>\n<\/a>Vietnam’s resolution No. 222\/2025\/QH15: forging legal pathways for Vietnam’s financial future<\/strong><\/h3>\n
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<\/p>\n<\/a>Hong Kong lowers threshold for continuous contracts<\/strong><\/h3>\n
<\/a>Hong Kong Court clarifies limits on summary dismissal<\/strong><\/h3>\n
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<\/p>\n<\/a>Singapore Employment Law: September 2025 updates<\/strong><\/h3>\n
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