Decree 121/2021/ND-CP on the business of prize-winning electronic games for foreigners

DECREE

 Providing the business of prize-winning video games for foreigners^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 17, 2020 Law on Investment;

Pursuant to the June 17, 2020 Law on Enterprises;

Pursuant to the June 21, 2012 Law on Advertising;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange and the March 18, 2013 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

At the proposal of the Minister of Finance,

The Government promulgates the Decree providing the business of prize-winning video games for foreigners.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Decree provides the business of prize-winning video games for foreigners and the management of such business in the territory of the Socialist Republic of Vietnam.

2. Subjects of application

a/ Enterprises engaged in the business of prize-winning video games for foreigners;

b/ Persons permitted to play prize-winning video games and persons permitted to enter and leave facilities where the business of prize-winning video games for foreigners is conducted;

c/ State management agencies with the functions related to the licensing, management, supervision, examination and inspection of the business of prize-winning video games for foreigners;

d/ Other organizations and individuals involved in the prize-winning video game business.

Article 2. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. “Prize-winning video games” means games of chance played on prize-winning video game machines by players who pay money and may win monetary prizes.

2. “Business of prize-winning video games for foreigners” means a conditional business of providing prize-winning games on prize-winning video game machines as licensed by a competent state management agency.

3. “Prize-winning video game machine” means a special-use electronic device permitted for commercial operation referred to in this Decree for prize-winning games installed therein. The playing process between players and machines is fully automated.

4. “Slot machine” means a prize-winning video game machine with 3 or more reels of footages on a screen for determining a betting or prize win which randomly stops after each time of spinning and with a fixed payout ratio pre-installed in the machine.

5. “Facility for the prize-winning video game business” (below referred to as business facility) means a room or a number of inter-connected rooms in a separate area within a tourist accommodation establishment in a place licensed by a competent state management agency to conduct the prize-winning video game business under this Decree.

6. “Player” means a person eligible for playing prize-winning video games at business facilities as defined in Article 9 of this Decree.

7. “Payout ratio” means an average percentage at which winnings are paid out to slot machine players during a certain period of time or on a certain number of spins as designed and preset by the manufacturer in a slot machine, or the return-on-bet ratio for other prize-winning video games as stated in game rules.

8. “Business eligibility certificate” means a certificate of eligibility for conducting the prize-winning video game business granted by the Ministry of Finance to enterprises engaged in the prize-winning video game business under this Decree.

9. “Token” means a coin, card, coupon or equivalent scores or another cash substitute used instead of money to serve the organization of prize-winning video games and valid for use only within a business facility.

10. “Person managing and administering a business facility” means a person assigned by an enterprise engaged in the prize-winning video game business to manage, administer and supervise all activities of the prize-winning video game business at the business facility.

11. “Gaming gear” means parts of a prize-winning video game machine and other devices used for conducting the prize-winning video game business under this Decree.

Article 3. Principles of conducting the prize-winning video game business

1. The prize-winning video game business is a conditional business subject to strict control by competent state management agencies to ensure its compliance with law.

2. The prize-winning video game business must be associated with main business activities of enterprises in order to promote tourism development and ensure security and social order and safety.

3. The organization of and participation in prize-winning video games must be transparent, objective and honest, and ensure protection of the rights and interests of participants.

4. Organizations and individuals involved in the organization of and participation in prize-winning video games shall fully comply with this Decree and other relevant regulations.

Article 4. Prohibited acts

1. Conducting the prize-winning video game business without business eligibility certificates, except the enterprises defined in Clause 1, Article 42 of this Decree.

2. Conducting the prize-winning video game business at variance with contents licensed by competent state management agencies in accordance with law.

3. Tampering with, erasing, leasing, lending or transferring business eligibility certificates.

4. Conducting the prize-winning video game business during the period of being deprived of the right to use business eligibility certificates or being suspended from conducting the business under decisions of competent state management agencies.

5. Letting persons other than those defined in Article 11 of this Decree enter business facilities in any form and for any reason.

6. Permitting or organizing direct betting between players based on results of prize-winning video games at business facilities.

7. Cheating in the course of organizing or participating in prize-winning video games at business facilities.

8. Committing acts that affect security or social order and safety at business facilities as specified by law.

9. Illegally transferring, leasing or lending places for organizing the prize-winning video game business.

10. Illegally organizing or providing prize-winning video game services via computer networks, telecommunications networks or the Internet.

11. Taking advantage of the prize-winning video game business to smuggle or transport foreign currencies, gold, silver, gems and precious metals, illegally provide loans or pledge assets, or conduct money laundering.

12. Certifying false prize money amounts, giving certification untruthfully or ultra vires, or causing difficulties to players without a plausible reason when giving certification.

13. Taking advantage of the maintenance or repair of prize-winning video game machines to illegally organize the prize-winning video game business.

14. Trading in prize-winning video game machines and gaming gear with cultural contents or images not yet appraised and licensed by competent state management agencies for popularization or circulation in accordance with law.

15. Other prohibited acts specified by law.

Chapter II

ORGANIZATION OF THE PRIZE-WINNING VIDEO GAME BUSINESS

Article 5. Business facilities

1. An enterprise engaged in the prize-winning video game business (below referred to as enterprise) may only organize prize-winning video games at a sole business facility licensed by a competent state management agency in accordance with law.

2. A business facility must fully satisfy the following conditions:

a/ Being isolated from areas for organization of other business activities of the enterprise and having separate entrance and exit doors;

b/ Having electronic devices and cameras for constant monitoring and surveillance of all activities in the business facility (round the clock). All footages must be fully stored for at least 180 days from the date of recording and footages must be clear in the following positions: entrance and exit doors; areas where prize-winning video game machines are installed; cashier and treasury counters for counting cash and tokens and areas for storing cash and token containers;

c/ Satisfying security and order conditions specified under regulations on security and order applicable to a number of sectors and trades subject to conditional business investment;

d/ Fully posting up internal rules on entrance/exit in Vietnamese, English and other foreign languages (if any) at easy-to-spot positions by entrance and exit doors of the business facility.

Article 6. Inauguration of operation and operation time  

1. At least 15 days before the expected date of inauguration of the prize-winning video game business, an enterprise shall send a notice to the Ministry of Finance, business registration office, and provincial-level Department of Finance, Public Security Department, and Tax Department for monitoring and management.

2. An enterprise may organize the prize-winning video game business all days in a calendar year, excluding days on which the business operation is not permitted under decisions of competent state management agencies.

In case a state management agency requests business suspension, the concerned enterprise shall notify players of the time of business suspension immediately after the state management agency announces the decision requesting business suspension.

3. An enterprise may suspend its business operation to meet its management requirements. At least 15 days before the expected time of business suspension, the enterprise shall send a notice thereof to the state management agencies defined in Clause 1 of this Article for monitoring and management. Such notice must clearly state the time of business suspension, reason for the suspension, and expected time of business resumption. In case of changing the expected time of business resumption, the enterprise shall notify the change in writing to these agencies. The enterprise shall post up the notice at its business facility at least 24 hours before the expected time of business suspension.

Article 7. Quantity and types of prize-winning video game machines and categories of prize-winning video games

1. The quantity of prize-winning video game machines shall be specified in the business eligibility certificate of an enterprise based on the total number of accommodation rooms in the accommodation establishment already put into business. For every 5 accommodation rooms, the enterprise may operate only one prize-winning video game machine.

2. Enterprises engaged in the prize-winning video game business may operate types of prize-wining video game machines and categories of games on such machines as provided in Appendix I to this Decree.

3. Before organizing the prize-winning video game business, an enterprise shall send to the Ministry of Finance, and provincial-level Department of Finance, Department of Culture, Sports and Tourism or Department of Culture and Sports (below collectively referred to as provincial-level Department of Culture, Sports and Tourism) and Tax Department a report on the quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines actually used for commercial operation for monitoring and management.

4. In the course of business activities, an enterprise may change the quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines used for commercial operation but must ensure compliance with the provisions on quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines used for commercial operation of this Decree and relevant regulations.

In case of a change in the quantity or type of prize-winning video game machines or categories of prize-winning video games and the ratio of machines used for commercial operation, within 5 working days after the change occurs, the enterprise shall send a report thereon to the Ministry of Finance, and provincial-level Department of Finance, Department of Culture, Sports and Tourism and Tax Department for monitoring and management.

Article 8. Game rules

1. When putting prize-winning video games into business, enterprises shall draw up game rules suitable to gaming methods, payout ratio and particular designs of each type of game machine and send them to the Ministry of Finance, and provincial-level Departments of Finance and Tax Departments for monitoring. Game rules must be compliant with law and have all the following principal contents:

a/ Description and interpretation of terms of prize-winning video games;

b/ Images and use instructions of functions of game machines;

c/ Playing methods; tokens (if any);

d/ Payout ratio;

dd/ Method of determining a win;

e/ Handling of unexpected problems;

g/ Other contents depending on management requirements.

2. Enterprises shall post up and issue leaflets publicizing game rules at their business facilities.        

3. When changing any content of game rules, within 5 working days after the change occurs, an enterprise shall send the revised or replaced game rules to the Ministry of Finance and provincial-level Department of Finance and Tax Department and a document clearly indicating the revised or replaced articles/clauses and reasons for the revision or replacement. At the same time, the enterprise shall publicly post up the revised or replaced game rules at its business facility.

4. In case a state management agency detects that game rules contain details that are unclear, invalid or incompliant with law, within 5 working days after the Ministry of Finance issues an official letter requesting and guiding the revision of game rules, the concerned enterprise shall revise the game rules to be compliant with law and send them to the Ministry of Finance and provincial-level Department of Finance and Tax Department for monitoring.

Article 9. Persons eligible for playing games at business facilities

1. Foreigners and overseas Vietnamese who lawfully enter Vietnam with their passports or international travel documents granted by foreign authorities and whose periods of residence in Vietnam remain unexpired.

2. The persons defined in Clause 1 of this Article must be those who have full civil act capacity as provided by Vietnam’s law and willingly observe game rules and the provisions of this Decree.

Article 10. Rights and obligations of players

1. Players have the following rights:

a/ To get their wins certified and fully paid out by enterprises;

b/ To receive and remit or bring prize money amounts in foreign currencies abroad in accordance with Vietnam’s law on foreign exchange management and the guidance of the State Bank of Vietnam;

c/ To request enterprises to keep confidential information on winning and receipt of prizes;

d/ To file complaints or lawsuits against enterprises about prize payout results; to denounce cheatings and violations of this Decree and law;

dd/ To enjoy other lawful benefits according to the game rules announced by enterprises.

2. Players have the following obligations:

a/ To carry along papers to prove their eligibility for playing games as specified in Article 9 of this Decree;

b/ To observe game rules and relevant internal rules and internal management regulations of enterprises, and fulfill the tax obligation toward the State in accordance with law;

c/ To refrain from using results of prize-winning video games at business facilities for betting directly among them;

d/ Not to cause adverse impacts on security or social order and safety at business facilities;

dd/ To strictly observe other relevant regulations.

Article 11. Persons permitted to enter and leave business facilities

1. The persons eligible for playing games defined in Article 9 of this Decree.

2. Managers and employees of enterprises may enter and leave business facilities for working purposes as assigned by enterprises. Enterprises shall make and announce updated lists of their managers and employees permitted to enter and leave business facilities for working purposes.

3. Employees of service-providing organizations that have signed contracts on provision of services to enterprises may enter and leave business facilities for working purposes as assigned by enterprises. Enterprises shall make and announce updated lists of employees of service-providing organizations that have signed contracts on provision of services to enterprises who may enter and leave business facilities for working purposes.

4. Cadres and civil servants of competent state management agencies who are assigned to conduct examination and inspection of enterprises in accordance with law.

5. Persons defined in Clauses 2, 3 and 4 of this Article may only enter business facilities to perform their assigned tasks and are prohibited from entering business facilities to play prize-winning video games in any form.

6. Enterprises shall keep books for monitoring or grant e-cards for controlling all persons entering and leaving business facilities. Monitoring books shall be made by making written entries or made with electronic information. Monitoring books shall be archived for at least 3 years to serve management, supervision, examination and inspection by competent state management agencies.

a/ A monitoring book for controlling the persons defined in Article 9 of this Decree must have the following principal contents:

- E-card identification numbers (if any);

- Full names;

- Numbers of passports or international travel documents;

- Citizenships;

- Photos (in case they are granted e-cards);

- Time of entering and leaving business facilities;

- Other information related to the control of players to meet management requirements of enterprises.

b/ A monitoring book for controlling the persons defined in Clauses 2, 3 and 4 of this Article must have the following principal contents:

- E-card identification numbers (if any);

- Full names and photos (in case they are granted e-cards);

- Positions and working titles assigned to them in business facilities;

- Time of working in business facilities;

- Other information related to the control of persons permitted to enter and leave business facilities to meet management requirements of enterprises.

Article 12. Management of tokens   

1. Tokens of enterprises must bear separate marks or signs for identification. The par value of tokens may be nominated in Vietnam dong or a freely convertible foreign currency. The conversion of foreign-currency par value of tokens into Vietnam dong must comply with the guidance of the State Bank of Vietnam. Enterprises may not use tokens of other enterprises for business purposes.

2. Enterprises shall strictly manage their tokens under the guidance of the Ministry of Finance as a basis for determining their turnover, and send a notice of models, quantity and types of tokens to provincial-level Departments of Finance and Tax Departments for monitoring and management.

3. In case of a change in the model, quantity or type of tokens, within 5 working days after the change occurs, an enterprise shall send a notice thereof to the provincial-level Department of Finance and Tax Department for monitoring and management.

Article 13. Management of prize-winning video game machines, tokens and gaming gear

1. Prize-winning video game machines to be used at business facilities must ensure conformity with the quantity, types and categories of prize-winning video games in which enterprises are licensed to conduct business and fully satisfy the technical conditions specified in this Decree.

2. Provisions on prize-winning video game machines

a/ Prize-winning video game machines purchased or imported for use at business facilities must be brand-new and have their technical parameters announced by their manufacturers and be granted inspection certificates by independent inspection institutions operating in the G7 countries;

b/ The minimum fixed payout ratio for slot machines is 90% (inclusive of cumulative prizes) and preset in these machines. Enterprises shall provide specific payout ratios in game rules.

In case an enterprise makes a change in the payout ratio against the ratio set by prize-winning video game machine manufacturers in the machines, the changed ratio must not be lower than the minimum payout ratio specified by law. At the same time, the enterprise shall hire an independent inspection institution under Point a of this Clause to inspect the machines before putting them into operation and provide specific payout ratios in game rules;

c/ Before purchasing or importing prize-winning video game machines or carrying out procedures for inspection of prize-winning video game machines, enterprises shall request machine manufacturers or suppliers or an independent inspection institution to provide sufficient documents proving the satisfaction of the conditions specified at Points and b of this Clause. Enterprises shall archive such documents to serve management, supervision, examination and inspection by competent state management agencies;

d/ While in use, if prize-winning video game machines are broken or need regular maintenance, enterprises may carry out the maintenance or repair. The maintenance and repair of prize-winning video game machines may only be carried out within business facilities or at organizations providing such maintenance and repair services. Enterprises shall sign contracts on maintenance and repair of prize-winning video game machines with organizations providing services of maintenance and repair of prize-winning video game machines and archive such contracts to serve management, supervision, examination and inspection by competent state management agencies. If the maintenance or repair is made for machine parts that cause a change in the payout ratio, enterprises shall hire an independent inspection institution under Point a of this Clause to inspect the machines before putting them into operation.

3. An enterprise shall keep a book for management of prize-winning video game machines which must have the following principal contents:

a/ Quantity and types of prize-winning video game machines and categories of prize-winning video games;

b/ Names of manufacturers;

c/ Origin, marks and signs (serial numbers) of machines;

d/ Year of manufacture;

dd/ Year of expiration of use duration (if any);

e/ Software installed in machines;

g/ Date of purchase;

h/ Date of re-export or destruction;

i/ Value of machines;

k/ Serial numbers of inspection certificates and name of the inspection institution.

4. Enterprises shall store in a separate room within the business facility the following:

a/ Prize-winning video game machines, tokens and gaming gear not yet put into business or suspended from use;

b/ Prize-winning video game machines, tokens and gaming gear specified at Points b and c, Clause 4, Article 14 of this Decree pending their re-export or destruction.

Article 14. Purchase, import, re-export and destruction of prize-winning video game machines, tokens and gaming gear

1. Enterprises possessing business eligibility certificates and the enterprises defined in Clause 1, Article 42 of this Decree may purchase and import prize-winning video game machines, tokens and gaming gear. The purchase and import of prize-winning video game machines, tokens and gaming gear must comply with this Decree and relevant regulations and be subject to instructions and appraisal by the Ministry of Culture, Sports and Tourism in terms of contents and images licensed for popularization and circulation in accordance with regulations on culture.

2. Enterprises may only purchase or import prize-winning video game machines in a quantity not exceeding the licensed quantity and the imported machines must conform with the technical conditions specified in this Decree.

3. Enterprises possessing business eligibility certificates and the enterprises defined in Clause 1, Article 42 of this Decree may purchase and import spare parts of prize-winning video game machines, tokens and gaming gear for replacement when necessary. The purchase, management and use of spare parts must adhere to the following principles:

a/ The quantity of spare parts must not exceed 10% of the total parts of prize-winning video game machines and gaming gear licensed for use in the business;

b/ Spare parts must be brand-new;

c/ The use of spare parts for replacement of old or broken parts must not result in an increase in the quantity or type of prize-winning video game machines or category of prize-winning video games licensed for business.

4. Within 30 days, an enterprise shall re-export or destroy prize-winning video game machines, tokens and gaming gear in the following cases:

a/ It willingly terminates its business operation, dissolves itself, is declared bankrupt by the court, or has its business eligibility certificate revoked;

b/ Its prize-winning video game machines, tokens and gaming gear have  expired under regulations of manufacturers or are broken or damaged to the extent that they cannot be repaired or restored to normal operation;

c/ Its prize-winning video game machines, tokens and gaming gear are no longer used for business operation as they do not meet its business requirements or it wishes to renew or replace them to meet business requirements.

5. The destruction of prize-winning video game machines, tokens and gaming gear shall be carried out to the witness of an independent audit firm or at least one representative of the provincial-level Department of Finance, Department of Culture, Sports and Tourism, and Tax Department, which/who shall supervise the destruction process and give a written certification thereof. The destruction must comply with current law.

Article 15. Internal management and internal control regulations

1. An enterprise shall formulate and issue its international management regulation applicable to its business facility, which must have the following principal contents:

a/ Provisions on management of the business facility, stating the time of opening and closing the business facility; control of persons entering and leaving the business facility; and measures to maintain security and social order and safety;

b/ Provisions on management of staff members working at the business facility, including persons working as staff members and managers at the business facility; and responsibilities and obligations of each division and holder of each working position;

c/ Provisions on financial regulation and token management process;

d/ Provisions on management, maintenance and repair of prize-winning video game machines and other gaming gear;

dd/ Provisions on modes to settle relationships between players, between players and the enterprise, and between players and staff of the enterprise, which must clearly state modes of dispute settlement in accordance with relevant regulations;

e/ Other provisions compliant with Vietnam’s law to serve management work of the enterprise.

2. Before organizing the prize-winning video game business, an enterprise shall:

a/ Establish an internal control section; specify in writing functions, tasks and powers of the internal control section to ensure the control of compliance with the internal management regulation, this Decree, and other regulations at the enterprise;

b/ Send its internal management regulation to the Ministry of Finance, and provincial-level Department of Finance, Department of Public Security, and Tax Department of the locality where its business facility is located. In case of revising or replacing its internal management regulation, the enterprise shall, within 5 working days from the date of revision or replacement, send the updated regulation to the above agencies.

Article 16. Internal regulations on money laundering prevention and control

1. Enterprises shall formulate and issue their internal regulations on prevention and control of money laundering and internal regulations on prevention and control of proliferation and financing of the proliferation of weapons of mass destruction (below collectively referred to as internal regulations on money laundering prevention and control) in accordance with the Law on Money Laundering Prevention and Control, the law on prevention and control of the proliferation of weapons of mass destruction and amending, supplementing and guiding documents.

2. Before organizing prize-winning video game business activities, an enterprise shall send its internal regulation on money laundering prevention and control to the Ministry of Finance, the State Bank of Vietnam, and the provincial-level Department of Finance, Public Security Department and Tax Department of the locality where the enterprise’s business facility is located. When amending, supplementing or replacing its internal regulation on money laundering prevention and control, the enterprise shall send an updated version to the above-mentioned agencies within 5 working days after the amendment, supplementation or replacement is made.

3. Enterprises shall disseminate internal regulations on money laundering prevention and control among related sections, employees and staffs.

Article 17. Management of payment and foreign exchange

1. Enterprises may accept Vietnam dong and foreign currencies in cash, bank transfer, and credit cards of players to exchange for tokens when the latter participate in prize-winning video games. Enterprises may carry out the collection and spending of foreign currencies after being licensed by the State Bank of Vietnam under Chapter IV of this Decree.

2. Enterprises may collect foreign currencies earned from prize-winning video game business in cash and bank transfer and use these foreign-currency amounts to pay prize money to players when the latter win games and for other foreign-exchange activities after being licensed by the State Bank of Vietnam under Chapter IV of this Decree

Article 18. Rights and obligations of enterprises

1. Enterprises engaged in prize-winning video game business have the following rights:

a/ To deal in all categories and types of prize-winning video games in accordance with law and this Decree;

b/ To refuse any ineligible individual to enter, leave or play at business facilities;

c/ To request any subjects that violate game rules, internal regulations and internal management regulations announced by enterprises to leave business facilities;

d/ To request all players to present their identification papers to prove their eligibility for playing video games at business facilities;

dd/ To sign contracts to hire managers. The hiring of managers and payment of hiring fees must comply with the provisions of law and must not exceed the maximum level prescribed by the Ministry of Finance.

2. Enterprises engaged in prize-winning video game business have the following obligations:

a/ To fully comply with this Decree’s and relevant laws’ provisions on prize-winning video game business. In case a relevant law changes, to update their internal operating procedures and regulations in accordance with law;

b/ To assign persons to manage and administer business facilities in accordance with this Decree;

c/ To organize different games according to game rules announced to players;

d/ To fully and promptly pay prize money to players. To make confirmation of prize money as actually paid if requested by players;

dd/ To settle disputes and complaints of players in accordance with game rules and law;

e/ To fulfill tax obligations and comply with other relevant regulations in the course of conducting business;

g/ To implement measures to prevent and control money laundering and proliferation and financing of the proliferation of weapons of mass destruction in accordance with law;

h/ To take measures to ensure security and social order and safety in accordance with law;

i/ To keep confidential information on prize winning at the request of players, except cases of providing information to competent state management agencies at the latter’s request to serve examination, inspection and supervision in accordance with law;

k/ To be held responsible before Vietnam’s law for all prize-winning video game business activities.

Article 19. Managers and administrators of business facilities

1. Conditions and criteria for managers and administrators of a business facility:

a/ Possessing a university or higher degree;

b/ Having at least 3 years’ experience in managing and administering prize-winning video game business.

2. Managers and administrators of business facilities shall manage, administer and supervise all prize-winning video game business activities at business facilities so as to ensure compliance with this Decree and relevant laws and work at the business facilities on a full-time basis.

3. Enterprises shall arrange managers and administrators of business facilities as named in the list of registered managers and administrators accompanying the dossier of application for a business eligibility certificate.

4. In case of change of the manager or administrator of a business facility:

a/ Within 5 working days after changing the manager or administrator of a business facility, the enterprise shall send to the Ministry of Finance and the provincial-level Department of Finance and Tax Department a notice of the change, enclosed with the documents specified in Clause 10, Article 21 of this Decree, to prove that the manager or administrator of the business facility meets the conditions and criteria specified in Clause 1 of this Article, serving the latter’s monitoring and management;

b/ In case it is discovered that the manager or administrator of a business facility fails to meet the conditions and criteria specified in Clause 1 of this Article, within 60 days after the Ministry of Finance issues a notice thereof, the enterprise shall arrange a manager or an administrator who fully meets the law-specified criteria and conditions and send a notice thereof, enclosed with the documents specified in Clause 10, Article 21 of this Decree, to the Ministry of Finance for monitoring and management. Past the above time limit, if the enterprise fails to arrange a manager or an administrator of the business facility who fully meets the law-specified criteria and conditions, the enterprise shall suspend its business until it can arrange a manager or an administrator for the business facility.

Chapter III

CONDITIONS AND PROCEDURES FOR GRANT OF BUSINESS ELIGIBILITY CERTIFICATES

Article 20. Conditions for grant of business eligibility certificates

1. Enterprises may only be considered for grant of business eligibility certificates if they have made registration for prize-winning video game business in accordance with the Law on Investment and the Law on Enterprises and fully satisfy the conditions specified in Clause 3 of this Article.

2. The enterprises specified in Clause 1 of this Article, before conducting prize-winning video game business, shall apply for a business eligibility certificate.

3. Conditions for an enterprise to be granted a business eligibility certificate:

a/ The enterprise has a 5-star tourist accommodation establishment rated by a competent state management agency in accordance with the Law on Tourism and guiding documents;

b/ There is an area where the business facility is located that fully meets the conditions specified in Article 5 of this Decree;

c/ The manager or administrator of the business facility meets the conditions and criteria specified in Clause 1, Article 19 of this Decree;

d/ The enterprise has a charter capital of at least VND 500 billion and has made a profit in the fiscal year preceding the year when it submits a dossier of application for a business eligibility certificate;

dd/ The enterprise has worked out a plan on prize-winning video game business to ensure security and social order and safety in accordance with law.

4. Each tourist accommodation establishment may be considered for grant of only one business eligibility certificate and the certificate shall only be granted to the enterprise that owns such tourist accommodation establishment.

Article 21. Dossiers of application for business eligibility certificates

A dossier of application for a business eligibility certificate must comprise:

1. An application for a business eligibility certificate, made according to Form No. 01 provided in Appendix II to this Decree.

2. A copy of the applicant’s investment registration certificate or enterprise registration certificate granted by a competent state management agency in accordance with the Law on Investment or the Law on Enterprises, which states the registration for prize-winning video game business.

3. A copy of the decision on rating of the tourist accommodation establishment, issued by a competent state management agency, and documents proving the enterprise’s ownership of the tourist accommodation establishment.

4. Documents proving the number of accommodation rooms that have been put into operation at the tourist accommodation establishment.

5. The layout diagram of the business facility, with illustrations of the following basic details: the entrance and exit of the business facility; the area where prize-winning video game machines are installed; cashier counter and vault for tallying cash and tokens and storing cash and token containers; area for installing electronic devices and camera system for surveillance and supervision and fire prevention and fighting equipment.

6. The financial statement of the year preceding the year when the enterprise submits the dossier of application for a business eligibility certificate, audited by an independent audit firm, for units with public interests. The audited financial statement must be that with an unqualified opinion. In case the financial statement includes a qualified opinion, the qualified opinion must not affect the conditions for grant of a business eligibility certificate specified at Point d, Clause 3, Article 20 of this Decree.

7. A copy of the certificate of satisfaction of security and order conditions for the tourist accommodation establishment, issued by a competent public security agency.

8. The draft internal management regulation, organization of the Internal Control Division, internal regulation on money laundering prevention and control, and game rules.

9. A business plan, including the following major contents: objectives, quantity, categories and types of prize-winning video games, estimated demand for foreign-currency revenues and expenditures, solutions for ensuring security and social order and safety for the business facility and the implementation plan.

10. A list, brief curriculum vitae of qualifications and working experience, certified copies or copies with the originals presented for collation, for use as proof of professional qualifications of the manager or administrator of the business facility.

Article 22. Process and procedures for grant of a business eligibility certificate

1. The enterprise shall submit 1 dossier of application for a business eligibility certificate to the Ministry of Finance by one of the following modes:

a/ By hand-delivery;

b/ By post;

c/ Through the Public Service Portal of the Ministry of Finance.

Within 15 days after receiving the dossier, the Ministry of Finance shall notify the enterprise of whether or not the dossier is complete and valid and request the enterprise to supplement documents (if any) and send 6 official dossier sets by the mode specified at Point a or b of this Clause for appraisal.

2. Within 60 days after receiving 6 official dossier sets, the Ministry of Finance shall consider and grant a business eligibility certificate. In case of refusal to grant a business eligibility certificate, the Ministry of Finance shall notify the enterprise thereof in writing and clearly state the reason for the refusal.

3. Order and procedures for appraisal of a dossier:

a/ Within 15 days after receiving a valid dossier, the Ministry of Finance shall send the dossier to related agencies for opinion, including: the Ministry of Public Security; Ministry of Culture, Sports and Tourism; Ministry of Planning and Investment; State Bank of Vietnam, and People’s Committee of the province or centrally run city (below referred to as provincial-level People’s Committee) where the enterprise applies for permission to organize prize-winning video game business activities;

b/ Within 15 days after receiving a complete dossier for consultation, a consulted agency shall send its written opinions to the Ministry of Finance and be held responsible for the contents of such opinions;

c/ After receiving opinions from all related agencies, the Ministry of Finance shall sum up these opinions; coordinate with the Ministry of Public Security; Ministry of Culture, Sports and Tourism; provincial-level People’s Committee and related agencies in organizing an inspection at the tourist accommodation establishment to determine whether the area where the business facility will be located satisfies the conditions specified at Point a, Clause 2, Article 5 of this Decree, and determine the number of accommodation rooms already put into operation for use as a basis for determining the maximum number of prize-winning video game machines the enterprise is allowed to operate under Clause 1, Article 7 of this Decree, and consider and decide whether or not to grant a business eligibility certificate;

d/ After being granted a business eligibility certificate by the Ministry of Finance, the enterprise shall carry out procedures for adding its certificate of satisfaction of security and order conditions with the line of prize-winning video game business as specified by law before conducting prize-winning video game business activities.

4. Contents of appraisal

Pursuant to this Decree and relevant laws, the Ministry of Finance and related agencies shall appraise the dossier in relevance to the conditions specified in Article 20 this Decree.

Article 23. Business eligibility certificates

1. A business eligibility certificate shall be made according to Form No. 02 provided in Appendix II to this Decree and must have the following principal contents:

a/ Name of the enterprise;

b/ Serial number and date of issuance of the enterprise’s investment registration certificate or enterprise registration certificate;

c/ The enterprise’s at-law representative;

d/ Number of prize-winning video game machines;

dd/ Business location, and area where the business facility is located in the tourist accommodation establishment;

e/ Validity period;

g/ Other contents to meet management requirements.

2. The business eligibility certificate must specify the licensed operation duration (below referred to as duration) as requested by the enterprise but must not exceed the validity period of the enterprise’s investment registration certificate or enterprise registration certificate and must not exceed 10 years, counted from its effective date, except the cases specified in Clause 1, Article 42 of this Decree.

Article 24. Re-grant of business eligibility certificates

1. An enterprise shall carry out procedures for re-grant of its business eligibility certificate in the following cases:

a/ The certificate is lost, misplaced or damaged due to natural disasters, fire or other objective causes;

b/ The enterprise is reorganized (the enterprise is divided, split up, merged, or consolidated or transformed) in accordance with the Law on Enterprises and after the reorganization, fully meets the conditions specified at Points a, b and c, Clause 3, Article 20 of this Decree and has a charter capital of at least VND 500 billion. Within 15 days from the date of completion of procedures for reorganization, the enterprise shall carry out procedures for re-grant of the business eligibility certificate.

2. Dossier, order and procedures for re-grant of the business eligibility certificate in the case specified at Point a, Clause 1 of this Article

a/ A dossier of request for re-grant of the business eligibility certificate must comprise:

- A request for re-grant of the business eligibility certificate, made according to Form No. 03 provided in Appendix II to this Decree;

- A copy of the investment registration certificate or enterprise registration certificate issued by a competent state management agency, which remains valid.

b/ The enterprise shall submit 1 set of dossier of request for re-grant of the business eligibility certificate as specified in Clause 1, Article 22 of this Decree. Within 15 days after receiving the enterprise’s request, the Ministry of Finance shall re-grant the business eligibility certificate to the enterprise.

3. Dossier, order and procedures for re-grant of the business eligibility certificate in the case specified at Point b, Clause 1 of this Article

a/ A dossier of request for re-grant of the business eligibility certificate must comprise:

- A request for re-grant of the business eligibility certificate, made according to Form No. 03 provided in Appendix II to this Decree;

- A copy of the investment registration certificate or enterprise registration certificate issued by a competent state management agency, which remains valid;

- Documents proving that the enterprise, after the reorganization, fully satisfies the conditions specified at Point b, Clause 1 of this Article.

b/ The order and procedures for re-grant of the business eligibility certificate must comply with Clause 3, Article 22 of this Decree;

c/ Contents of appraisal

Pursuant to this Decree and relevant laws, the Ministry of Finance and related agencies shall appraise the dossier in relevance to the conditions specified at Point b, Clause 1 of this Article.

4. The serial number of the re-granted business eligibility certificate is the serial number of the previously issued one, with the time of re-grant clearly stated. The validity period of a re-granted business eligibility certificate is the remaining operation duration specified in the most recently granted, re-granted or modified business eligibility certificate.

Article 25. Modification of business eligibility certificates

1. In case an enterprise changes any content in its business eligibility certificate specified in Clause 1, Article 23 of this Decree, it shall carry out procedures for modification of the business eligibility certificate.

2. A dossier of request for modification of the business eligibility certificate must comprise:

a/ A request for modification of the business eligibility certificate, made according to Form No. 03 provided in Appendix II to this Decree;

b/ A copy of the enterprise’s investment registration certificate or enterprise registration certificate issued by a competent state management agency, which remains valid;

c/ Documents proving that the modification of the business eligibility certificate is consistent with this Decree and relevant laws.

3. Process and procedures for modification of the business eligibility certificate:

a/ The enterprise shall submit 1 set of dossier of request for modification of the business eligibility certificate as specified in Clause 1, Article 22 of this Decree;

b/ Within 30 days after receiving the enterprise’s complete and valid dossier, the Ministry of Finance shall consider and grant the modified business eligibility certificate to the enterprise (for cases of modifying the contents specified at Points a, b and c, Clause 1, Article 23 of this Decree), or assume the prime responsibility for, and coordinate with the agencies specified in Clause 3, Article 22 of this Decree in, considering and deciding on the grant of the modified business eligibility certificate to the enterprise (for cases of modifying the contents specified at Points d, dd, e and g, Clause 1, Article 23 of this Decree); the modified business eligibility certificate must clearly state the time of modification.

4. The validity period of a modified business eligibility certificate is the remaining operation duration specified in the most recently granted, re-granted or modified business eligibility certificate.

Article 26. Extension of business eligibility certificates

1. For enterprises whose business eligibility certificates expired under this Decree, if wishing to continue prize-winning video game business, enterprises shall carry out procedures for extension of their certificates at least 6 months before the certificates expire.

2. Conditions for extension of a business eligibility certificate:

a/ The certificate’s remaining validity period is at least 6 months, counted by the time of making a request for extension of the certificate;

b/ The enterprise fully meets the conditions specified at Points a, b and c, Clause 3, Article 20 of this Decree;

c/ The enterprise has a charter capital of at least VND 500 billion;

d/ The enterprise has not been subject to the administrative sanction of deprival of the right to use the business eligibility certificate for 2 times or more in accordance with the law on sanctioning of administrative violations in the field of prize-winning video game business.

3. A dossier of request for extension of a business eligibility certificate must comprise:

a/ A request for extension of the business eligibility certificate, made according to Form No. 03 provided in Appendix II to this Decree;

b/ The documents specified in Clauses 2, 3, 4, 5, 6, 7 and 10, Article 21 of this Decree;

c/ A business plan, covering the following major contents:

- Results of prize-winning video game business in the last 3 years up to the time of submitting the dossier, including: information about the business facility; quantity and types of machines, types of video games actually put for commercial operation; results of prize-winning video game business (turnovers, expenses, profits and payments to the state budget);

- Plan on prize-winning video game business in the coming time, covering: quantity and type of machines, type of prize-winning video games; expected results of prize-winning video game business (turnovers, expenses, profits and payments to the state budget); demands for foreign-currency collection and spending; solutions for ensuring security and social order and safety for the business facility; the proposed extension period; implementation plan;

- Observance of the law on prize-winning video game business and the enterprise’s commitment to abiding by relevant legal provisions on prize-winning video game business.

4. The process and procedures for extension of business eligibility certificates must comply with Clauses 1, 2 and 3, Article 22 of this Decree.

5. Contents of appraisal

Pursuant to the provisions of this Decree and other relevant legal provisions, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the agencies specified in Clause 3, Article 22 of this Decree in, appraising dossiers in relevance to the conditions specified in Clause 2 of this Article so as to consider and decide to grant extended business eligibility certificates to enterprises. Extended business eligibility certificates must clearly state the time of extension.

6. The extension period of a business eligibility certificate is that requested by the enterprise but must not exceed the duration of the investment registration certificate or enterprise registration certificate and must not exceed 10 years from the date of extension.

Article 27. Licensing fee

Fees for appraisal and grant of business eligibility certificates must comply with Ministry of Finance’s regulations on charges and fees.

Article 28. Revocation of business eligibility certificates

1. An enterprise shall be subject to revocation of its business eligibility certificate in one of the following cases:

a/ Past 12 months after being granted a business eligibility certificate, the enterprise still fails to organize prize-winning video game business activities according to Clause 1, Article 6 of this Decree, except cases of natural disasters, fires, epidemics or other objective causes;

b/ The enterprise dissolves or goes bankrupt in accordance with law;

c/ The enterprise has its investment registration certificate or enterprise registration certificate revoked;

d/ The enterprise fails to fully meet the conditions for conducting prize-winning video game business as concluded by inspection agencies as specified at Point a, Clause 2, Article 40 of this Decree;

dd/ The enterprise violates all regulations on organization of prize-winning video  game business activities according as concluded by inspection agencies as specified at Point b, Clause 2, Article 40 of this Decree;

e/ After being reorganized under the law on enterprises, the enterprise does not satisfy the conditions for conducting prize-winning video game business specified at Point b, Clause 1, Article 24 of this Decree;

g/ The enterprise fails to satisfy one of the conditions for conducting prize-winning video game business specified at Points a, b and c, Clause 3, Article 20 of Decree but cannot remediate such failure within 90 days from the date the Ministry of Finance issues a notice thereof.

2. Business eligibility certificates shall be automatically invalidated and revoked in the cases specified at Points b and c, Clause 1 of this Article.

3. The Ministry of Finance shall issue decisions to revoke business eligibility certificates in the cases specified at Points a, d, dd, e and g, Clause 1 of this Article.

4. An enterprise must immediately terminate prize-winning video game business activities at the time its business eligibility certificate is revoked and return the certificate to the Ministry of Finance within 5 working days after the revocation decision takes effect.

5. Decisions on revocation of business eligibility certificates shall be publicized by the Ministry of Finance on its Portal.

Chapter IV

ORDER AND PROCEDURES FOR GRANT OF LICENSES FOR FOREIGN CURRENCY COLLECTION AND SPENDING AND OTHER FOREIGN EXCHANGE ACTIVITIES

Article 29. Procedures for grant of licenses for foreign currency collection and spending and other foreign exchange activities

1. If wishing to conduct foreign currency collection and spending and other foreign exchange activities specified in this Decree, enterprises engaged in prize-winning video game business shall carry out procedures for application for licenses for foreign currency collection and spending and other foreign exchange activities (below referred to as licenses). A dossier must comprise:

a/ An application for a license, made according to Form No. 04 provided in Appendix II to this Decree;

b/ A copy of the investment registration certificate or enterprise registration certificate;

c/ A copy of the written permission for conducting prize-winning video game business, issued by a competent state management agency, or business eligibility certificate in case the investment registration certificate or enterprise registration certificate does not state the prize-winning electronic game business (for enterprises licensed to conduct the prize-winning video game business before the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the prize-winning video game business for foreigners (below referred to as Decree No. 86/2013/ND-CP) takes effect) or business eligibility certificate (for enterprises licensed to conduct prize-winning video game business after Decree No. 86/2013/ND-CP takes effect);

d/ Internal regulation on management and control of foreign currency revenues and expenditures, signed by the enterprise’s at-law representative.

2. The enterprise shall hand deliver or send by post 1 dossier set to the State Bank of Vietnam.

3. Within 45 days after receiving a complete dossier as prescribed, the State Bank of Vietnam shall consider and grant a license, made according to Form No. 05 provided in Appendix II to this Decree. In case of refusal, the State Bank of Vietnam shall issue a written reply clearly stating the reason.

In case the dossier is incomplete or invalid, within 15 days after receiving the dossier, the State Bank of Vietnam shall issue a notice requesting the enterprise to supplement the dossier.

4. The validity period of the license must be at most equal to the remaining operation duration stated in the business eligibility certificate or investment registration certificate or enterprise registration certificate stating the prize-winning video game business or the written permission for conducting prize-winning video game business issued by a competent state management agency. In case the enterprise does not have the business eligibility certificate and the investment registration certificate, enterprise registration certificate or written permission for conducting prize-winning video game business issued by a competent state management agency does not specify the operation duration, the validity period of the license must not exceed 10 years, counted from its effective date.

Article 30. Procedures for re-grant, modification and extension of licenses

1. Re-grant of licenses

a/ An enterprise shall carry out procedures for re-grant of its license in the following cases:

- The license is lost, missing or damaged due to natural disasters, fires or other objective reasons;

- The enterprise is reorganized (divided, split, merged or consolidated or undergoes transformation) in accordance with the Law on Enterprises. Within 30 days after being re-granted the business eligibility certificate, the enterprise shall carry out procedures for re-grant of the license.

b/ A dossier for re-grant of a license must comprise:

- A request for re-grant of a license, made according to Form No. 06 provided in Appendix II to this Decree and clearly stating the reason for re-grant;

- A copy of the investment registration certificate or enterprise registration certificate granted by a competent state management agency, which remains valid;

- A copy of the re-granted business eligibility certificate (for reorganized enterprises).

c/ Procedures for sending dossiers to the State Bank of Vietnam must comply with Clause 2, Article 29 of this Decree;

d/ Procedures for grant of licenses must comply with Clause 3, Article 29 of this Decree;

dd/ The validity period of a re-granted license must be the remaining validity period of the most recently granted license;

e/ Within 5 working days after being re-granted the license (for reorganized enterprises), the enterprise shall return the granted original license to the State Bank of Vietnam.

2. Modification of licenses

a/ An enterprise may modify its license in the following cases:

- Changing its name;

- Changing the licensed bank where its specialized foreign-currency account is opened;

- Changing the cash fund balance.

b/ A dossier of request for modification of a license must comprise:

- A request for modification of the license, made according to Form No. 06 provided in Appendix II to this Decree and clearly stating the reason for modification;

- Documents and papers proving the modified contents’ conformity with Point a of this Clause (if any).

c/ Procedures for sending dossiers to the State Bank of Vietnam must comply with Clause 2, Article 29 of this Decree;

d/ Procedures for grant of licenses must comply with Clause 3, Article 29 of this Decree;

dd/ The validity period of a modified license must be the remaining validity period of the most recently granted license;

e/ In case of changing the licensed bank where the enterprise opens a specialized foreign-currency account, within 5 working days after its license is modified, the enterprise shall open a new specialized account and transfer the whole balance on the old specialized foreign-currency account to the new specialized foreign-currency account or foreign-currency payment account and, at the same time, carry out procedures for closing the old specialized account and send a report thereon, made according to Form No. 07 provided in Appendix II to this Decree, to the State Bank of Vietnam;

g/ Within 5 working days after its license is modified, the enterprise shall return the granted original license to the State Bank of Vietnam.

3. Extension of licenses

a/ At least 30 days before its license granted by the State Bank of Vietnam expires, an enterprise shall carry out procedures for extension of the license. A dossier must comprise:

- A request for extension of the license, made according to Form No. 06 provided in Appendix II to this Decree;

- The papers specified at Points b and c, Clause 1, Article 29 of this Decree;

b/ Procedures for sending dossiers to the State Bank of Vietnam must comply with Clause 2, Article 29 of this Decree;

c/ Procedures for extension of licenses must comply with Clause 3, Article 29 of this Decree;

d/ The validity period of the license must comply with Clause 4, Article 29 of this Decree;

dd/ Within 5 working days after its license is extended, the enterprise shall return the granted original license to the State Bank of Vietnam.

Article 31. Revocation of licenses

An enterprise will have its license revoked by the State Bank of Vietnam in the following cases:

1. The dossier of application for the license contains untruthful information which makes it eligible for grant of a license.

2. Past 12 months after being granted a license, the enterprise still fails to conduct foreign-currency collection or spending or other foreign exchange activities, except cases of natural disasters, fires, epidemics or other objective causes.

3.  It is dissolved or falls bankrupt in accordance with law;

4. It has its investment registration certificate, enterprise registration certificate or business eligibility certificate revoked by a competent state agency.

5. It is sanctioned for administrative violations for 3 times or more for administrative violations in foreign exchange management.

Article 32. License conversion

1. Time limit for license conversion

The enterprises specified in Clause 1, Article 42 of this Decree that have been permitted by the State Bank of Vietnam to conduct collection and spending of foreign currencies in cash for prize-winning video game business may continue these activities under the State Bank of Vietnam’s permits. Enterprises may carry out procedures to convert such permits into licenses if they so wish.

2. Dossiers, order and procedures for conversion of permits into licenses

a/ A dossier for conversion of a permit into a license must comprise:

- A request for conversion, made according to Form No. 08 provided in Appendix II to this Decree;

- A copy of the investment registration certificate or business registration certificate;

- A copy of the permit for conducting prize-winning video game business issued by a competent state management agency in case the investment registration certificate or enterprise registration certificate does not state the prize-winning video game business or the business eligibility certificate (for enterprises already obtained the Ministry of Finance’s approval to convert permits into business eligibility certificates);

-  Internal regulation on management and control of foreign currency revenues and expenditures, signed by the enterprise’s at-law representative.

- A copy of the granted permit for collection and spending of foreign currencies in cash and other foreign exchange activities;

- A report on the results of collection and spending of foreign currencies and other foreign exchange activities pertaining to the prize-winning video game business after obtaining the State Bank of Vietnam’s permit, made according to Form No. 09 provided in Appendix II to this Decree.

b/ Procedures for sending dossiers to the State Bank of Vietnam must comply with Clause 2, Article 29 of this Decree;

c/ Procedures for grant of licenses must comply with Clause 3, Article 29 of this Decree;

d/ Within 5 working days after having its permit converted into license, the enterprise shall return the granted original permit for collection and spending of foreign currencies in cash and other foreign exchange activities to the State Bank of Vietnam.

3. The validity period of the license must comply with Clause 4, Article 29 of this Decree.

Chapter V

INFORMATION, ADVERTISING AND SALES PROMOTION

Article 33. Disclosure and provision of information

1. Enterprises shall fully post up internal rules on entry and leaving and publicize all game rules at their business facilities.

2. Enterprises shall fully and promptly provide information and data relating to the prize-winning video game business at the request of competent state management agencies.

3. Enterprises shall take responsibility for the accuracy and truthfulness of disclosed and provided information.

Article 34. Advertising 

1. Only enterprises that have been granted business eligibility certificates and the enterprises specified in Clause 1, Article 42 of this Decree may run advertisements for prize-winning video game business activities.

2. Contents of an advertisement include:

a/ Name and address of the enterprise engaged in prize-winning video game business;

b/ Names of prize-winning video games;

c/ Location of the business facility;

d/ Persons eligible for playing prize-wining video games as specified in Article 9 of this Decree.

3. Advertising places and forms  

Enterprises may only run advertisements by placing billboards and signboards inside their tourist accommodation establishments which have been licensed by competent state management agencies to conduct prize-wining video game business but must ensure that persons standing outside these establishments may neither hear nor see the advertisements.

4. In addition to complying with Clauses 1, 2 and 3 of this Article, enterprises may not run advertisements for prize-wining video game business activities in any form and shall comply with other provisions of the advertising law.

Article 35. Discount and sales promotion

1. Enterprises may give discounts for players. The maximum discount is 2% of total value of tokens bought. Taxable values shall be determined based on actually collected amounts minus discounts.

2. The Ministry of Finance shall provide specific guidance on persons eligible for discount, discount limit and method of determining taxable values to be reduced for each tax as specified in Clause 1 of this Article.

3. In addition to the discounts mentioned in Clause 1 of this Article, sales promotion items being accommodations, meals and travel fares provided by enterprises to players may only be accounted as their expenses at the percentage prescribed by the current law on enterprise income tax. Total expenses serving as a basis for determining the maximum sales promotion level are total expenses deductible upon the determination of enterprise income tax, excluding sales promotion and prize payout expenses. In addition, enterprises may not provide sales promotion in any other forms to players.

4. When conducting sales promotion activities, in addition to complying with this Decree, enterprises shall also abide by relevant regulations on sales promotion.

Chapter VI

FINANCE, ACCOUNTING AND AUDIT

Article 36. Finance and tax regimes

1. A fiscal year of enterprises begins on January 1 and ends on December 31 of a calendar year. In case an enterprise wishes to apply the fiscal year of its parent company, such fiscal year must have full twelve months, beginning on the first day of the first month of a quarter of the year and ending on the last day of the last month of the preceding quarter of the subsequent year, and the enterprise shall notify such to the finance agency. The first fiscal year of a newly established enterprise is counted from the date of licensing to the last day of the registered fiscal year.

2. Enterprises are not entitled to incentives with regard to taxes, charges and fees directly related to the purchase of prize-winning video game machines and equipment and those payable for prize-winning video game business. Tax, charge and fee incentives for other investment and business activities must comply with current regulations.

3. Enterprises shall perform tax obligations toward the State under current regulations on taxes and the guidance of the Ministry of Finance.

4. The Ministry of Finance shall guide the financial management mechanism and methods of tax collection suitable to particular characteristics of prize-winning video game business activities.

Article 37. Accounting and reporting regimes

1. Accounting regime and financial statements of enterprises must comply with law and the guidance of the Ministry of Finance.

2. Enterprises shall separately account turnovers and expenses related to prize-winning video game business activities. Enterprises shall allocate turnovers and expenses associated with other business activities under the guidance of the Ministry of Finance.

3. Reporting on professional operations of enterprises must comply with regulations of the Ministry of Finance.

Article 38. Audit and disclosure of financial statements 

1. Financial statements of enterprises must be annually audited.

2. At the end of a fiscal year, enterprises shall disclose their financial statements in accordance with law.

Chapter VII

STATE MANAGEMENT, EXAMINATION AND INSPECTION

Article 39. State management of prize-winning video game business

The Government shall perform uniform state management of prize-winning video game business, while related ministries and provincial-level People’s Committees shall assist the Government as follows:

1. The Ministry of Finance shall take responsibility before the Government for performing the state management of prize-winning video game business, covering:

a/ Promulgating, and guiding the implementation of, legal documents according to its competence provided by the law on prize-winning video game business;

b/ Granting, re-granting, modifying, extending and revoking business eligibility certificates under this Decree;

c/ Examining, inspecting, and handling violations of the law on prize-winning video game business under this Decree and the law on sanction of administrative violations in the field of prize-winning game business;

d/ Performing other tasks prescribed by law.

2. The Ministry of Planning and Investment shall:

a/ Coordinate with the Ministry of Finance in considering and giving opinions on the grant, re-grant, modification, extension and revocation of business eligibility certificates under this Decree;

b/ Coordinate with ministries, sectors and localities in managing and supervising prize-winning video game business.

3. The Ministry of Public Security shall:

a/ Manage persons eligible for playing prize-wining video games at business facilities specified in Article 9 of this Decree and public security and social order concerning prize-winning video game business activities for foreigners in accordance with law;

b/ Assume the prime responsibility for, and coordinate with concerned agencies, organizations and individuals in, preventing and controlling money laundering crimes in prize-winning video game business in accordance with law;

c/ Assume the prime responsibility for, and coordinate with related agencies and organizations in, preventing and controlling illegal gambling and other violations of law;

d/ Coordinate with the Ministry of Finance in considering and giving opinions on the grant, re-grant, modification, extension and revocation of business eligibility certificates under this Decree;

dd/ Coordinate with ministries, sectors and localities in managing and supervising prize-winning video game business activities.

4. The Ministry of Culture, Sports and Tourism shall:

a/ Guide the management of contents and images of prize-winning video game machines under current regulations in order to assure that prize-winning video game machines used at business facilities conform with Vietnam’s fine traditions and customs and aesthetic values as required by law;

b/ Coordinate with the Ministry of Finance in considering and giving opinions on the grant, re-grant, modification, extension and revocation of business eligibility certificates under this Decree;

c/ Coordinate with ministries, sectors and localities in managing and supervising prize-winning video game business activities.

5. The Ministry of Information and Communications shall:

a/ Direct providers of Internet services, network infrastructure and online social network services and telecommunications businesses in proactively preventing or refraining from providing prize-winning video games via computer networks, telecommunications networks and the Internet;

b/ Coordinate with the Ministry of Public Security and related ministries and sectors in preventing the provision of gambling services via computer networks, telecommunications networks and the Internet from overseas into Vietnam.

6. The State Bank of Vietnam shall:

a/ Grant, re-grant, modify, extend, convert and revoke licenses for foreign-currency collection and spending and other foreign exchange activities related to the prize-winning video game business activities under this Decree;

b/ Manage the collection and use of foreign currencies by enterprises engaged in  prize-winning video game business in accordance with law;

c/ Coordinate with the Ministry of Finance in considering and giving opinions on the grant, re-grant, modification, extension and revocation of business eligibility certificates under this Decree;

d/ Coordinate with concerned agencies, organizations and individuals in taking measures to control money laundering in prize-winning video game business activities in accordance with law;

dd/ To coordinate with ministries, sectors and localities in managing and supervising prize-winning video game business activities.

7. The Ministry of Industry and Trade shall manage sales promotion activities of enterprises engaged in prize-winning video game business in accordance with law.

8. Provincial-level People’s Committees shall:

a/ Coordinate with the Ministry of Finance in considering and giving opinions on the grant, re-grant, modification, extension and revocation of business eligibility certificates under this Decree;

b/ Manage, supervise and examine prize-winning video game business activities in their localities in order to assure that compliance with this Decree and law;

c/ Direct related agencies under their management in performing regular and constant management, supervision and examination of prize-winning video game business activities in their localities.

Article 40. Examination and inspection   

1. State management agencies shall conduct examination and inspection on a regular or irregular basis. Irregular examination or inspection may be performed only when signs of violation of enterprises are detected or when it is necessary to serve settlement of complaints and denunciations, corruption prevention and combat or as assigned by heads of competent state management agencies.

2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, related ministries and sectors, and provincial-level People’s Committees of localities where enterprises organize prize-winning video game business activities in, conducting regular examination once every 3 years. Examination contents include:

a/ Examination of the satisfaction of the conditions for grant of business eligibility certificates specified at Points a, b, and c, Clause 3, Article 20 of this Decree.

Particularly for the enterprises specified in Clause 1, Article 42 of this Decree, examination of satisfaction of the conditions for dealing in prize-winning video game business under permits issued by competent state management agencies in accordance with law.

b/ Examination of adequate and proper observance of this Decree’s provisions on organization of prize-winning video game business activities, covering the following principal contents:

- Management of prize-winning video game machines and equipment and tokens;

- Management of persons eligible for playing prize-winning video games and persons permitted to enter and leave business facilities;

- Observance of internal management regulations, internal control and financial  regulations and game rules;

- Foreign exchange management and observance of internal regulations on money laundering prevention and control;

- Observance of regulations on finance, accounting and state budget remittance obligations.

3. Provincial-level People’s Committees and heads of public security agencies of district and higher levels may decide to conduct unscheduled inspection in case enterprises show signs of violating regulations on persons eligible for playing prize-winning video games or regulations on assurance of security and social order and safety or when receiving crime reports concerning the enterprises or other violations relating to prize-winning video game business activities.

4. The examination and inspection of performance of tax obligations of enterprises must comply with the laws on taxes.

Article 41. Powers of state management agencies

In the course of performing the management, examination or inspection work, state management agencies, within the ambit of their competence provided in this Decree, are entitled to:

1. Access all rooms within business facilities.

2. Request enterprises and related persons to provide documents, data and information to serve the management, examination or inspection work.

3. Request enterprises to suspend part or the whole of prize-winning video game business activities within business facilities when having sufficient grounds to believe that the enterprises seriously violate law, and notify such in writing to the agency that has granted business eligibility certificates for consideration and coordination in examination, inspection and handling of violations in accordance with regulations.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 42. Transitional provisions

1. Enterprises that have been granted investment registration certificates or enterprise registration certificates which cover the line of prize-winning video game business, or obtained competent state management agencies’ written permissions for conducting the prize-winning video game business before the effective date of Decree No. 86/2013/ND-CP may continue to conduct the prize-winning video game business under such certificates or permissions. An enterprise shall carry out procedures for grant of a business eligibility certificate, if it so wishes, according to the following provisions:

a/ A dossier of application for a business eligibility certificate must comprise:

- A copy of the investment registration certificate or enterprise registration certificate which remains valid and covers the line of prize-wining video game business, or a competent state management agency’s written permission for conducting the prize-winning video game business.

- Documents proving the quantity, types and categories of prize-winning video game machines actually put into commercial operation by the enterprise under regulations before the effective date of Decree No. 86/2013/ND-CP or the competent state management agency’s written permission (if any);

- The documents specified in Clauses 1, 3, 4, 5, 7, 8, 9 and 10, Article 21 of this Decree. Particularly, enterprises that do not have tourist accommodation establishments are not required to submit the documents specified in Clauses 3 and 4, Article 21 of this Decree.

b/ The enterprise shall submit 1 set of dossier of application for a business eligibility certificate to the Ministry of Finance. Within 30 days after receiving a complete and valid dossier of the enterprise, the Ministry of Finance shall grant a business eligibility certificate to the enterprise, in which:

- The quantity, types and categories of prize-winning video game machines which the enterprise is licensed to commercially operate must comply with the investment registration certificate or enterprise registration certificate, or the quantity, types and categories of prize-winning video game machines actually put into commercial operation by the enterprise under regulations before the effective date of this Decree, or the written permission of the competent state management agency. In case there is a difference in the quantity of prize-winning video game machines, the enterprise may commercially operate the machines with the highest quantity.

Particularly for an enterprise that has not yet organized prize-winning video game business activities, the quantity of prize-winning video game machines which the enterprise is licensed to commercially operate must comply with the investment registration certificate or enterprise registration certificate or the written permission of the competent state management agency. In case the investment registration certificate, enterprise registration certificate or the written permission of the competent state management agency does not specify the quantity of prize-winning video game machines, the enterprise may commercially operate the machines with the quantity specified in Clause 1, Article 7 of this Decree.

- The validity period of the business eligibility certificate must not exceed the remaining operation duration stated in the granted investment registration certificate or enterprise registration certificate or written permission of a competent state management agency. In case the investment registration certificate or enterprise registration certificate or written permission of a competent state management agency does not specify the business duration, the validity period of a business eligibility certificate must comply with Article 23 of this Decree.

2. For an enterprise that has submitted a dossier of application for a business eligibility certificate before the effective date of this Decree:

a/ In case the enterprise has not submitted 6 sets of official dossiers for appraisal as specified in Clause 2, Article 21 of Decree No. 86/2013/ND-CP before the effective date of this Decree, it shall complete the dossier to make it fully satisfy the conditions for grant of the business eligibility certificate as specified in this Decree. The order and procedures for grant of the business eligibility certificate must comply with Article 22 of this Decree.

b/ In case the enterprise has submitted 6 sets of official dossiers for appraisal as specified in Clause 2, Article 21 of Decree No. 86/2013/ND-CP before the effective date of this Decree, the appraisal of dossiers and grant of the business eligibility certificate must comply with the conditions, order and procedures for grant of a business eligibility certificate specified in Decree No. 86/2013/ND-CP. The enterprise shall fully comply with this Decree’s provisions on the business of prize-winning video games for foreigners and related regulations.

3. Enterprises that commercially operate prize-winning video game machines and comply with Decree No. 86/2013/ND-CP but fail to comply with Appendix I to this Decree may continue to commercially operate the purchased machines until replacing such machines with new ones. The replacement of machines must comply with this Decree.

Article 43. Implementation provisions

1. This Decree takes effect on February 12, 2022.

2. Within 180 days from the effective date of this Decree, enterprises shall upgrade camera systems for surveillance and monitoring of business facilities to satisfy the conditions specified in Clause 2, Article 5 of this Decree.

3. This Decree replaces:

a/ The Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning video games for foreigners;

b/ The Government’s Decree No. 175/2016/ND-CP of December 30, 2016, amending and supplementing a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning video games for foreigners.

4. This Decree annuls Article 6 of the Government’s Decree No. 151/2018/ND-CP of November 7, 2018, amending and supplementing a number of decrees on investment and business conditions under the state management of the Ministry of Finance.

5. The Minister of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the implementation of this Decree.

6. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

Appendix I

LIST OF TYPES OF PRIZE-WINNING VIDEO GAME MACHINES AND CATEGORIES OF PRIZE-WINNING VIDEO GAMES AND RATIO OF MACHINES PERMITTED FOR COMMERCIAL OPERATION

(To the Government’s Decree No. 121/2021/ND-CP of November 27, 2021)