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<\/p>\n9 March 2026<\/p>\n
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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 ASIA<\/a><\/p>\n Vietnam<\/a><\/strong><\/p>\n Vietnam strengthens data protection framework<\/a><\/p>\n From dream to reality: Vietnam\u2019s next chapter of investment liberalisation<\/a><\/p>\n Hong Kong<\/a><\/strong><\/p>\n CFA confirms tort of harassment and clarifies employers\u2019 right to injunctive relief\u00a0\u2013\u00a0Sir Elly Kadoorie & Sons v Bradley<\/a><\/p>\n China<\/a><\/strong><\/p>\n New guidelines on non-compete clauses in China: what companies need to know<\/a><\/p>\n Singapour<\/a><\/strong><\/p>\n Singapore Employment Law: March 2026 updates<\/a><\/p>\n Japan<\/a><\/strong><\/p>\n Japan : major reform of cross-border collection services under the amended payment services act (effective by June 2026)<\/a><\/p>\n NEWS FROM LPA<\/a><\/p>\n <\/a> <\/a>Vietnam strengthens data protection framework<\/strong><\/span><\/p>\n Decree 356\/2025\/ND\u2011CP \u2013 effective 1 January 2026<\/u><\/strong><\/p>\n Vietnam has taken another major step in building a modern privacy regime. Following Decree 13\/2023\/ND\u2011CP, the Government has now issued Decree 356\/2025\/ND\u2011CP, which replaces Decree 13 and provides detailed guidance for the Personal Data Protection Law.<\/p>\n This new decree expands definitions, tightens compliance obligations, and introduces sector\u2011specific rules for emerging technologies. Together, these changes align Vietnam more closely with global privacy standards.<\/p>\n At a glance \u2013 key updates<\/span><\/strong><\/p>\n Spotlight: sector\u2011specific safeguards<\/span><\/strong><\/p>\n CTIA & DPIA \u2013 compliance tools<\/span><\/strong><\/p>\n Decree 356 raises the bar for transparency, accountability, and security in Vietnam. Organizations must act quickly to update policies, contracts, and technical safeguards to remain compliant.<\/p>\n \u00a0\/\/<\/strong> Etienne Laumonier<\/a> \/<\/strong> Ho Nhat Toan<\/a><\/p>\n <\/p>\n <\/a>From dream to reality: Vietnam\u2019s next chapter of investment liberalisation<\/strong><\/span><\/p>\n When we recently imagined Vietnam without investment certificates, we saw it as \u00ab\u00a0science fiction\u00a0\u00bb, a dream of what could be possible if bureaucracy were replaced by transparency, and administrative control gave way to market discipline.<\/p>\n Six months later, Vietnam has not abolished its investment law, but it has taken an unmistakable step toward that imagined future. The Law on Investment 2025 (Law No. 143\/2025\/QH15) marks a key evolution of Vietnam\u2019s investment framework. It does not erase the system, but it undeniably reshapes it. The dream is no longer fiction. It has begun to materialise.<\/p>\n The new Law on Investment 2025 represents a decisive shift away from pre\u2011entry control and toward post\u2011inspection regulatory administration.<\/p>\n Where the prior regime relied heavily on prior approvals, often involving multiple layers of licensing, appraisal, and waiting, the new law sharply reduces the number of conditional business lines, removing 38 sectors entirely and redesigning many others. This recalibration pushes Vietnam away from the traditional permission\u2011based model and closer to modern regulatory approaches used in OECD countries.<\/p>\n One of the most consequential practical effects is a reduction in the State\u2019s gatekeeping role. Ministries and local authorities no longer serve as overarching arbiters of \u201cwho may enter the market.\u201d Their function now tilts toward monitoring compliance, supervising risk, and ensuring transparent operational conduct. This is the same administrative realignment envisioned in our legal fiction but now grounded in statutory reality rather than theoretical imagination.<\/p>\n Perhaps the most anticipated change is Vietnam\u2019s reversal of investment sequencing for foreign investors.<\/p>\n For the first time, foreign investors may: establish a wholly foreign\u2011owned company before obtaining an Investment Registration Certificate (IRC)[1]<\/a>.<\/p>\n This seemingly small procedural shift carries symbolic weight: it recognises the company as a legal entity first, and the investment project as an activity conducted by that entity\u2014not the other way around.<\/p>\n While implementation details will be clarified in the forthcoming decree, the new model sends a powerful message of equal treatment, aligning foreign investor procedures more closely with those applied to Vietnamese enterprises. Although investors still cannot implement the project without an IRC or policy approval, the barrier to market entry becomes lower, earlier, and more predictable.<\/p>\n The vision of a \u201cpermission\u2011free\u201d market remains aspirational, but the direction is unmistakably toward simplification.<\/p>\n In contrast with the previous law\u2019s more open\u2011ended criteria for when an investment policy approval was required, the 2025 law provides an explicit list of 20 categories of projects subject to approval.[2]<\/a> These include:<\/p>\n This change provides much\u2011needed predictability. The boundaries of State approval authority are now codified, reducing discretion and improving consistency across provinces.<\/p>\n The new law expands and formalises the Special Investment Procedure, enabling eligible projects\u2014especially in industrial parks, high\u2011tech zones, free trade zones, and digital technology clusters, to bypass several traditional approvals.<\/p>\n In practical terms, qualifying investors may replace:<\/p>\n with statutory commitments and compliance undertakings.<\/p>\n One of the most investor\u2011friendly reforms is the flexible and clearer mechanism for extending project duration. The new law expressly confirms:<\/p>\n \u2192 Extensions may be granted multiple times,<\/p>\n \u2192 within the statutory caps for each extension,<\/p>\n \u2192 except for projects using outdated technologies or requiring uncompensated handover.<\/p>\n This fosters confidence, critical for large\u2011scale manufacturing, energy infrastructure, logistics hubs, technology parks, and high\u2011capital investments.<\/p>\n Vietnamese investors venturing abroad will also benefit from simplification. The new law eliminates certain outward investment policy approvals previously required from the Prime Minister or National Assembly and narrows the types of projects requiring an Outward Investment Registration Certificate.<\/p>\n This not only streamlines administrative burden but strengthens Vietnam\u2019s evolving position as a regional investor, not merely an investment recipient.<\/p>\n The imaginary Vietnam described in The Great Investment Liberation<\/em>\u2014a nation without investment approvals, where business procedures match those of the U.S., Japan, or Germany, remains a dream, but the Law on Investment 2025 shows that Vietnam\u2019s policymakers are actively moving toward lower regulatory friction, clearer rules, and a more facilitative investment climate.<\/p>\n [1]<\/a> Art 19.2. A foreign investor is entitled to establish an economic organization to execute an investment project before following the procedures for issuance or adjustment of an investment registration certificate and must satisfy the market access conditions applied to foreign investors upon following the procedures for establishing an economic organization.<\/p>\n [2]<\/a> See Art. 24 of the Law on Investment 2025<\/p>\n \/\/ <\/strong>Etienne Laumonier<\/a> \/<\/strong> Pham\u200b Viet Anh<\/a><\/p>\n <\/p>\n <\/a> <\/a>CFA confirms tort of harassment and clarifies employers\u2019 right to injunctive relief\u00a0\u2013\u00a0Sir Elly Kadoorie & Sons v Bradley<\/strong><\/span><\/p>\n In a recent landmark decision, the Court of Final Appeal (\u201cCFA\u201d) confirmed the existence of a common law tort of harassment applicable to individuals. However, the CFA held that companies lack standing to bring claims under this tort, on the basis that a company, as \u201ca legal person incapable of experiencing feelings\u201d, cannot suffer harassment in the legal meaning.<\/p>\n Nevertheless, the judgment clarifies that corporate entities are not left without recourse. The CFA recognized that companies may seek injunctive relief in their own name in order to safeguard the safe working environment they are legally obliged to provide to their employees.<\/p>\n Context<\/span><\/strong><\/span><\/p>\n According to the facts alleged in the plaintiff\u2019s brief, Ms Bradley spent more than a decade working at Sir Elly Kadoorie & Sons Limited (the \u201cCompany\u201d), a prominent Hong Kong-based family office, where she became head of the legal department. Following the anticipated departure of a director, Ms Bradley expressed her interest in assuming the role and continuing her professional progression within the Company. However, the Company ultimately decided not to appoint her to the position.<\/p>\n This decision marked the beginning of growing internal tensions, which eventually culminated in the termination of Ms Bradley\u2019s employment in October 2020. The matter did not end there. Over the course of approximately 18 months following her departure, Ms Bradley sent more than 500 emails to the Company, its employees, agents, and external advisors. These communications contained serious allegations (alleged by the Company to be false), including claims of harassment, breaches of anti-money laundering (AML) obligations, and more broadly, allegations of fraudulent conduct.<\/p>\n Analysis of the judgment<\/span><\/strong><\/span><\/p>\n In its judgment, the CFA was required to address 3 key issues: (a) whether a tort of harassment exists under Hong Kong common law, (b) if so, whether a company has a cause of action to sue under that tort, and (c) if not, whether alternative legal mechanisms (in particular, injunctions) are available to enable a company to restrain harassing conduct directed at its employees. The CFA\u2019s conclusions can be summarized as follows:<\/p>\n Practical implications for the employers\u00a0<\/span><\/strong><\/span><\/p>\n The present decision therefore gives employers a new tool to ensure a safe workplace, and can be seen as encouraging employers to implement internal mechanisms and preventive HR policies aimed at mitigating the risk of harassment from ex-employees or other outside parties affecting their employees. In this context, companies should extend these mechanisms beyond the physical workplace and they should apply equally to the digital environment, particularly considering the use of electronic communication tools such as Outlook, Teams, and Webex.<\/p>\n In practice, it would be advisable for employers to introduce appropriate monitoring, assessment, and reporting systems designed to enable employees to report hostile or harassing communications, ensuring that such conduct can be identified, addressed, and contained at the earliest possible stage. Employers should also ensure that all relevant evidence is properly documented and preserved, by any appropriate means, in order to support and substantiate a potential application for injunctive relief, where necessary.<\/p>\n With this recent decision, a failure by a company to seek an injunction to restrain harassment against its employees which it has become aware of by outside parties could be viewed as a breach of its common law duty to provide a safe working environment.<\/p>\n \/\/<\/strong> Nicolas Vanderchmitt<\/a> \/ <\/strong>Daniel Duane<\/a><\/p>\n <\/p>\n <\/a> <\/a>New guidelines on non-compete clauses in China : what companies need to know<\/strong><\/span><\/p>\n The Labor Contract Law of the PRC (the “Labor Contract Law”) is the primary legislation governing non-competition obligations in China. Companies may prohibit their concerned employees from working for competitors or running a competing business for a maximum period of 2 years following the termination of their employment. However, many companies have excessively or improperly used non-compete clauses, leading to numerous disputes.<\/p>\n The release of the Compliance Guidelines for Enterprises Implementing Non-Compete Agreements (the “Guidelines”) promulgated by the Ministry of Human Resources and Social Security of China, along with the Interpretation (II) of the Supreme People’s Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (the “Interpretation”), provides useful guidance and clarifies key aspects. These include: (i) the preconditions for imposing non-compete obligations; (ii) the scope of eligible employees; (iii) geographical limitations; (iv) the standard for economic compensation and liquidated damages; and (v) remedial procedures for non-compete breaches.<\/p>\n Key takeaways<\/strong><\/span><\/p>\n Preconditions<\/span>: Access to commercial secrets \u00a0According to the Interpretation, where an employee is unaware of, or has no access to, the employer’s commercial secrets or confidential information related to intellectual property, and the employee requests a declaration that the non-compete clause is invalid, the people’s court shall uphold such request. It is therefore essential for companies to clearly identify and define the content and scope of their commercial secrets before imposing non-compete obligations.<\/p>\n Eligible employees<\/span>: Only employees with actual access to commercial secrets may be subject to non-compete obligations. Companies should limit such obligations to senior management personnel, senior technical personnel, or key employees bound by confidentiality obligations. Employees outside these categories may assert the invalidity of their non-compete agreements.<\/p>\n Geographical limitations<\/span>:\u00a0Unlike previous practices, companies are requested to limit the geographical area of non-compete obligations to their actual operational area. Extending the geographical area to the entire country or worldwide without justified reasons may not be permitted.<\/p>\n Economic compensation<\/span>:\u00a0During the first year of the non-compete period, monthly economic compensation shall not be less than 30% of the employee’s average monthly remuneration. If the non-compete period exceeds one year, the compensation ratio should be increased to 50% or above.<\/p>\n Liquidated damages<\/span>:\u00a0In case of breach of non-compete obligations, liquidated damages shall not exceed five times the total amount of economic compensation agreed between the parties.<\/p>\n Recommendations for companies<\/span>:\u00a0To mitigate potential legal and compliance risks, companies are advised to review their existing non-compete agreements and ensure compliance with these new requirements. In particular, companies should: (i) clearly identify their commercial secrets; (ii) limit non-compete clauses to eligible employees only; (iii) define a reasonable geographical area; and (iv) ensure adequate compensation levels.<\/p>\n Our team remains at your disposal to assist you in reviewing your employment contracts and ensuring compliance with these new guidelines. Please do not hesitate to contact us for any questions.<\/p>\n \/\/<\/strong> Fanny Nguyen<\/a> \/<\/strong> H\u00e9l\u00e8ne Liu<\/a><\/p>\n <\/p>\n <\/a> <\/a>Singapore Employment Law: March 2026 updates<\/strong><\/span><\/p>\n 1. Key employment measures from the Committee of Supply 2026 by the Ministry of Manpower<\/u><\/strong>[1]<\/strong><\/a><\/p>\n During the 2026 Committee of Supply Debate, Ministry of Manpower (\u201cMOM\u201d) unveiled a series of measures aimed at helping businesses and workers adapt to a rapidly evolving economic landscape. These initiatives reflect Singapore\u2019s broader strategy to remain competitive in a global environment shaped by technological change, shifting labour markets and increasing demand for high-skilled talent.<\/p>\n The announced measures are structured around three main pillars: (1) empowering Singaporeans through all stages of life, (2) enabling thriving businesses in a changed landscape, and (3) building workplaces that work for all so that no one is left behind.<\/p>\n Among the most notable developments for employers and international mobility is the planned adjustment of the minimum qualifying salaries for key work passes[2]<\/a>. The minimum gross monthly salary requirement for the employment pass will increase from SGD 5,600 to SGD 6,000, while the threshold of the S Pass will rise from SGD 3,300 to SGD 3,600. These changes will apply to new applications from 1 January 2027, and to renewals from 1st<\/sup> January 2028. The Government has also indicated that the S Pass qualifying gross monthly salary could reach approximately SGD 4,000 to SGD 4,500 by around 2030, reflecting the ongoing alignment of foreign workforce policies with local wage benchmarks.<\/p>\n Another significant announcement regards Singapore\u2019s strategy to attract global technology and artificial intelligence (\u201cAI\u201d) talent. From January 2027, the Government will introduce a new \u201cONE Pass\u201d (AI and Tech) track, which will replace the current \u201cTech Pass\u201d[3]<\/a>. The new pass is designed to better recognise leading innovators and industry experts in AI and advanced technologies, further strengthening Singapore\u2019s position as a global hub for high-value digital talent.<\/p>\n In parallel, the Government is also supporting businesses in adapting their workforce to technological transformation. Under the enterprise workforce transformation package[4]<\/a>, launching in March 2026, companies will be able to access financial support to redesign jobs, reskill employees and adopt new technologies, including AI tools. Through the SkillsFuture Workforce Development Grant (Job Redesign+), enterprises can receive funding covering up to 70% of qualifying project costs, capped at SGD 150,000 per company. The initiative aims to provide businesses with practical resources to implement workforce transformation while improving productivity and long-term competitiveness.<\/p>\n These measures illustrate Singapore\u2019s continued effort to balance economic openness with workforce development, while ensuring that businesses remain able to attract global talent and adapt to technological change.<\/p>\n 2. <\/u>Retirement and re-employment ages from July 2026<\/u><\/strong>[5]<\/strong><\/a><\/p>\n Singapore will gradually raise the statutory retirement age to 64 and the re-employment age to 69, effective 1st<\/sup> July 2026. This follows the Government\u2019s broader strategy to support longer careers and address demographic changes.<\/p>\n At the same time, the senior employment credit will be extended until December 2027. Under this scheme, employers hiring older workers can benefit from wage support of up to 7% for employees aged 69 and above.<\/p>\n These measures aim to provide older workers with greater flexibility to remain active in the workforce, while helping employers retain experienced employees and maintain workforce stability.<\/p>\n 3. New central provident fund investment scheme in 2028<\/u><\/strong>[6]<\/strong><\/a><\/p>\n The Central Provident Fund (\u201cCPF\u201d) board has announced the introduction of a new investment scheme expected to launch in the first half of 2028, aimed at helping CPF members potentially achieve higher retirement returns while maintaining a simplified investment approach.<\/p>\n The scheme will complement the existing CPF investment scheme and target members who are willing to take some investment risk but prefer simpler and professionally managed investment options.<\/p>\n Under the new framework, selected commercial providers will offer low-cost, diversified life-cycle investment products. These products will automatically adjust the asset allocation over time, gradually shifting from higher-risk assets such as equities to lower-risk assets such as bonds as members approach retirement. This automatic rebalancing is designed to help investors stay invested for the long term without needing to actively manage their portfolios.<\/p>\n Participation in the scheme will be entirely voluntary, and investment proceeds will eventually be transferred into members\u2019 Retirement Accounts, supporting their future CPF lifelong income for the elderly retirement payouts.<\/p>\n The CPF board will begin engaging industry providers in March 2026, with selected providers expected to be announced in 2027, ahead of the scheme\u2019s launch in 2028.<\/p>\n For more details: cpf.gov.sg\/newinvestmentscheme<\/a><\/p>\n 4. Highlights from the labour market advance release fourth quarter 2025<\/u><\/strong>[7]<\/strong><\/a><\/p>\n According to the MOM\u2019s labour market advance release for the fourth quarter of 2025, Singapore\u2019s labour market continued to expand in 2025 alongside sustained economic growth. Total employment increased by 57,300 over the year, compared to 44,500 in 2024, with job creation driven mainly by the financial services and health & social services sectors for residents, and construction for non-resident workers.<\/p>\n Unemployment rates remained low and stable, standing at 2.0% overall, 2.9% for residents, and 3.0% for citizens in December 2025, broadly in line with levels observed over the past two years.<\/p>\n Retrenchments also remained relatively limited. Around 3,600 employees were retrenched in the fourth quarter of 2025, bringing the total to 14,400 for the year, slightly higher than in 2024. Most retrenchments were linked to business reorganisation or restructuring, particularly in sectors such as transportation & storage and financial services.<\/p>\n Looking ahead to 2026, the labour market is expected to continue expanding, although employers can adopt a more cautious approach to hiring. At the same time, a growing share of firms expects to increase wages, suggesting continued competition for talent in certain sectors.<\/p>\n The full report is available at: https:\/\/stats.mom.gov.sg\/Pages\/Labour-Market-Advance-Release-4Q-2025.aspx<\/a><\/p>\n <\/p>\n [1]<\/a> Ministry of Manpower\u2019s website, \u201cPartnering Businesses And Workers To Thrive In A Changed World<\/em><\/a>\u201d<\/p>\n [2]<\/a> Ministry of Manpower\u2019s website, \u201cForeign Workforce Policy Announcements At Cos 2026<\/em><\/a>\u201d<\/p>\n [3]<\/a> Ministry of Manpower\u2019s website, \u201cForeign Workforce Policy Announcements At Cos 2026<\/em><\/a>\u201d<\/p>\n [4]<\/a> Ministry of Manpower\u2019s website, \u201cFactsheet on Enterprise Workforce Transformation Package<\/em><\/a>\u201d<\/p>\n [5]<\/a> Ministry of Manpower\u2019s website, \u201cPartnering Businesses And Workers To Thrive In A Changed World<\/em><\/a>\u201d<\/p>\n [6]<\/a> Ministry of Manpower\u2019s website, \u201cCPF Board to introduce new investment scheme in 2028 offering simplified, low-cost, and diversified commercial investment products<\/em><\/a>\u201d<\/p>\n [7]<\/a> Ministry of Manpower\u2019s website, \u201cLabour Market Advance Release Fourth Quarter 2025<\/em><\/a>\u201d<\/p>\n \/\/<\/strong> Astrid Cippe<\/a> \/<\/strong> Candy Xiong<\/a><\/p>\n <\/p>\n
\n<\/a>LEGAL INSIGHTS IN ASIA<\/h2>\n
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