Legal Document Updates in English (01/2012)

SOME ADMINISTRATIVE WORKS WILL BE ASSIGNED
TO PRIVATE ORGANIZATIONS
 

On November 08, 2011 the Government issued the Resolution No. 30c/NQ-CP promulgating the master program on State Administration Reform in the period of 2011-2020.

One of the significant points of the program is to implement reforms of state administrative organizational structure. Accordingly, the Government shall make an overall review about position, functions, obligations, rights, organizational structure of ministers, ministerial-level agencies, government-attached agencies and People's Committees at all levels, other sate administrative organizations and agencies  at the central, provincial and district level (including non-business units).

The program shall be focused on reorganizing and restructuring functions, obligations, rights of agencies

and units to avoid the overlapping conditions; transfer the works that state administrative agencies should not do or do ineffectively to social organizations, non-government organizations.

Also, under the Resolution, the main points of administration reforms in the next ten years will focus on institutional reforms, building and improving the quality of cadres, civil servant, implementing reforms in salary policies, in order to create a real momentum for the cadres, civil servants to increase the quality of administrative services and public services.

The resolution shall take effect on the date of signing.

EXEMPTION AND/OR REDUCTION OF CORPORATE INCOME TAX
AND PERSONAL INCOME TAX UNTIL THE END OF 2012
 

As from 1 August 2011 until the end of 31 December 2011, individuals having taxed income from business, salary or wage included in the tax grade of level one of partially progressive tariff as regulated in the article 22 of the personal income tax law will be exempted from the personal income tax.

This is one of the Government’s guidelines on the Decree No. 101/2011/ND-CP dated November 04, 2011 implementing the Resolution of the National Assembly on promulgating additional tax solutions in order to untie difficulties for enterprises and individuals.

Also, under this Decree, as from 1 August 2011 until the end of 31 December 2011, dividends distributed to individuals from investment activities in the securities market and from capital contributions to purchase shares in enterprises, excluding dividends distributed by shareholding banks, financial investment funds and credit institutions will be exempted from the personal income tax. Besides, as from

1 August 2011 until the end of 31 December 2012, the amount of personal income tax on income from transfers of securities by individuals will be reduced by 50 percent.

The fixed tax amounts of value-added tax will be also reduced by 50 percent for individuals, households business guest-house, room for lease with workers, employees, students, pupils; households or individuals that keep children; households, individuals or organizations that supply shift meals for workers.

For enterprises, corporate income tax in 2011 will be reduced 30 percent for small and medium enterprises; enterprises use many labors in manufacturing, processing, agricultural products, forest products, sea products, textiles and garments, leather and shoes, electronic components, construction of social economic infrastructure projects.

This Decree takes effect as from 20 December 2011.

 
THE EXPERIMENTAL IMPLEMENTATION OF
E-BORDER GUARD PROCEDURES AT SEAPORTS
 

On November 07, 2011 the Ministry of National Defense issued the Circular No. 188/2011/TT-BQP guiding the experimental implementation of e-border guard procedures at seaports.

E-border guard procedures at seaports means that port border-gate guard and persons carrying out border-guard procedures receive, check the legality and validity of entry or exit papers and certifying electronic border-guard procedures for ships, boats, crewmembers and passengers on entry, exit, in transit or port transfer at e-border guard portal.

The Border Guard Command shall manage, receive and transmit information related to e-border guard procedures to serve the works of border guards; grant the signing account to access to the e-border

guard portal for port border-gate guard units that have established computer networks for electronic border-guard declaration procedures.

Persons carrying out border-guard procedures are granted the account to access to the e-border guard portal to declare e-border guard procedures at seaports and supply related information to port border-gate guards; receive the notification of port border-gate guards where e-border guard procedures are experimentally applied.

The Circular shall take effect on December 22, 2011

BELOW VND 200,000 LAWYERS MUSTN’T ENTER A
CONTRACT FOR THE LEGAL SERVICES
 

On October 14, 2011, the Ministry of Justice issued the Circular No. 17/2011/TT-BTP guiding a number of articles of the law on lawyers, and the Decree guiding the law on lawyers regarding lawyers’ socio-professional organizations

Lawyers must conduct the legal services as provided in the contract or the agreement, excluding the cases that lawyers take part in the proceedings at the proposal of proceedings conducting agencies and lawyers acting as individuals work under the contract for organizations and agenDcies.

Regarding the cases with the remuneration of above VND 200,000, law-practicing organizations or lawyers acting as individuals must enter a contract for the legal services in writing. For the cases with the

remuneration of below 200,000, the lawyers only need to reach an agreement in using legal services and create the bill in accordance with the regulations.

Under the Circular, branches of foreign law-practicing organizations in Viet Nam are able to make transition into foreign law firms in Viet Nam on the basis of continuing rights and obligations of the old branches. The Ministry of Justice will make decisions to grant the permits within 30 days counting from the day of receiving the complete and valid dossier.

The Circular shall take effect on December 01, 2011 and replace the Circular No. 02/2007/TT-BTP dated April 25, 2007.

 
FIVE CRITERIA TO BE GRANTED WITH LICENSES
FOR VOCATIONAL TRAINING ACTIVITIES
 

With a view to enhancing the quality management of vocational training activities and ensuring the operation of vocational training establishments to comply with the regulations; the Ministry of Labor, Invalids and Social Affairs promulgated the Circular 29/2011/TT-BLDTBXH dated October 24, 2011 stipulating registration procedure for activities of vocational training.

As stipulated in the Circular, for vocational training at higher, intermediate and primary level, vocational training establishments should meet five criteria to be granted with licenses for vocational training activities. Specifically, trades to be registered should be in the list of vocational training promulgated by the Minister of Labor, Invalids and Social Affairs; at the same time, physical facilities should be appropriate and designed in accordance with Vietnam Construction Standard of TCXD VN 60:2003; for example, there should be adequate classrooms which comply with the training scale as regulated and the number of students in a class shouldn’t be over 35 students.

Besides, there should adequate equipment for vocational training as required by laws and regulations on the list of vocational training equipment promulgated by the Minister of Labor, Invalids and Social Affairs; vocational training establishments should also have a contingent of lecturers and administrators enough in quantity, synchronous in structure, meeting the criteria on quality, standard levels and professional

skills to attain the vocational training objectives and realize the vocational training programs. Quantity and quality of qualified trainers and teachers proportionate to the number of trainees should be also met, at most 20 students per one teacher/ lecturer. Besides, detailed syllabus for vocational training should be based on the framework program promulgated by the Minister of Labor, Invalids and Social Affairs.

Vocational training establishments should submit one registration dossier for vocational training activities which includes: dispatch for registration of vocational training activities; status report on the conditions for vocational training activities…Within 20 working days counting from the date of  receiving the complete and valid dossier, the General Department of Vocational Training must examine the conditions of vocational training activities and grant the licenses for vocational training activities. If refusing to grant such certificates, it must state clearly the reasons in writing.

The Circular shall come into effect on 01 January 2012 and replace the Decision No. 72/2008/QD-BLDTBXH dated 30 December 2008 of the Minister of Labor, Invalids and Social Affairs promulgating regulation on vocational training registration.