Vietnam seeks legal reforms to retain tech startups

Many Vietnamese technology startups, including notable names like Sky Mavis and Kyber Network, are registering their legal entities in Singapore rather than Vietnam. This trend often involves a structure where the parent company is based in Singapore to secure capital and hold intellectual property, while the Vietnamese subsidiary handles research, development, and operations.

To retain these high-value companies and their intellectual assets, experts suggest Vietnam must address four critical areas: legal frameworks, financial tools, administrative accountability, and human resource supply. Key challenges include the lack of standardized international financial instruments—such as preferred shares, liquidation preferences, and anti-dilution clauses—within current Vietnamese enterprise law. Additionally, there is a pressing need for mechanisms to value digital assets, source code, and algorithms, which are the primary drivers of value for modern tech startups.