Legal Document Updates in English (02/2014)

CADRES AND CIVIL SERVANTS WILL TAKE 9 DAYS OFF ON LUNAR NEW YEAR 2014

On December 12, 2013, the Government Office promulgated Official dispatch No. 10525/VPCP-KGVX on regulating the Tet holidays and change of weekend in 2014 holidays for cadres, civil servants and staffs.
Accordingly, cadres, civil servants and staffs will take the leave on Tet 2014 from January 28, 2013 to the end of February 5, 2014 (From December 28th to the end of January 6th on Lunar calendar). They will work for the compensated days on Saturday, January 25, 2014 and Saturday, February 8, 2014.

TO REDUCE 50% OF PERSONAL INCOME TAX FOR STAFFS WORKING IN BORDER-GATE ECONOMIC ZONES

On November 26, 2013, the Prime Minister promulgated Decision No. 72/2013/QD-TTg, prescribing mechanisms and financial policies applicable to border-gate economic zones, which regulates that Vietnamese and foreigners directly working or involved in production and business activities in border-gate economic zones, having incomes from their jobs and production and business activities in border-gate economic zones and being liable to personal income tax under the Personal Income Tax Law are eligible for 50% reduction of payable tax amounts.
Also in this Decision, investors who wish to use land in border-gate economic zones as production and business grounds and choose the form of land allocation with land use levy payment, will be allocated land by the State and pay land use levy; enjoy land use levy exemption and/or reduction for projects under preferential policies; they will enjoy reduction of  50% of payable land use levy for projects in the

PRINCIPLES TO DEAL WITH 100% STATE- OWNED CHARTER CAPITAL

On December 9, 2013, the Government promulgated Decree No. 206/2013/ND-CP on management of debts of enterprises with 100% State-owned charter capital. Enterprises shall draft and issue Regulations on debt management (applicable to both receivables and payables), clearly identifying responsibilities of collectives and individuals (Members’ Council, chairperson of the Members’ Council (company president), director general (director), chief accountant and other related persons) for monitoring, collecting and paying debts; comparing, confirming and classifying debts, urging the collection thereof and proactively handling outstanding debts according to the law.
For bad debts or unpayable debts, enterprises shall first of all make deductions to set up provisions according to regulations and apply every measure to recover debts and share difficulties with creditors and debtors in the handling of debts through freezing, rescheduling, write-off, purchase and sale. Enterprises shall report on cases beyond their handling capacity and competence to competent agencies for settlement support measures. Receivables and payables in foreign currencies must be converted into Vietnam dong at the time of accounting and making financial statements in accordance with law. Exchange rate differences arising in a period and resulting from the revaluation of the balances of receivables and payables in foreign currencies at the end of a fiscal year must be handled under regulations of the Ministry of Finance.

CASES MAKING NON-CASH PAYMENTS

On December 31, 2013, the Government issued the Decree No. 222/2013/ND-CP of the Government providing for cash payment; of which, one of the most significant points is regulation on cases making non-cash payments.
Specifically, organizations using state budget and state capital shall make non-cash payments in transactions, except for those payments permitted to be made in cash according to the regulations specified by the Ministry of Finance or the State Bank. Organizations, individuals shall not make payment for security transactions in Stock Exchange or for security transactions that are registered, deposited at Securities Depository but not conducted via the transaction system of Stock Exchange.

Enterprise shall not make cash payment in transaction of capital contribution, purchase and transfer of contributed capital into enterprise; Enterprises that are not credit institution shall not use cash when borrowing or lending each other.
Under this Decree, credit institutions, branches of foreign banks are allowed to make agreement with customers on cash withdrawal plan and on the advance notification of such withdraw on the withdrawal of cash in large quantity. Units making transactions with the State Treasuries that have demand of withdrawing cash at the State Treasuries must register in accordance with the regulations specified by the Ministry of Finance.
This Decree takes effect on March 1, 2014.

PROCEDURES AND DOSSIERS TO REGISTER VIETNAM GREEN LABEL CERTIFICATION

According to Circular No. 41/2013/TT-BTNMT dated December 2, 2014 of the Ministry of Natural Resources and Environment,  eco-label criteria applied for environment- friendly products (Vietnam green label) corresponding to every product group pronounced by the Ministry of Natural Resources and Environment. It consists of two principal contents: Compliance with Laws on Environmental Protection and Labor of organizations, individuals doing manufacture or trade; impact of the whole life circle of a product, from the process of exploiting materials, production, distribution, use and after being disposed shall cause less pollution to the environment in comparison with other same type of products.  
The Circular also clearly states that sticking of Vietnam Green Label is a voluntary activity, not under the scope of regulation of Laws on labeling of goods. The enterprises wish to have Vietnam Green Label stuck on their products shall send dossiers for registration on certification of Vietnam Green Label to Vietnam Environment Administration. The Vietnam Environment Administration shall take responsibility to publicize the Decision on certification of Vietnam Green Label for products being certified on the

THERMAL- POWER PLANT CAM PHA 3 WILL BE PUT INTO OPERATION IN 2019

On December 11, 2013, the Prime Minister  promulgated Decision No. 2414/QD-TTg, supplementing to the Electricity planning VII of Pleiku 500kV switching station 2 and adjusting capacity of project on Cam Pha Thermal-power plant 3 from capacity of 2x135 MW up to capacity of 2x220 MW, putting into operation in 2019.
Accordingly, the high priority  power projects which are performed construction investment during 2013 – 2020 and allowed to apply the special regulations and policies on the project preparation, compensation, ground clearance, contractual price and contractor appointment… as appointed by competent consultancy unit having capability and experiences to make the planning on total ground together with the making of the investment project ; investors are allowed to grant advance capital for ground clearance for province and make agreements on the mechanism to refund this advance capital with the provincial People’s Committees where projects are carried out.. The project list consists of Long Phu 1, Vinh Tan 4,

TO REDUCE THE RATIO OF POOR HOUSEHOLDS BY 1.5% TO 2% BY 2015

This is one of important points prescribed in Solution No. 53/2013/QH13 dated November 11, 2013 of the 13th National Assembly on socio- economic development plan in 2014.
In the next two years 2014- 2015, the National Assembly asks the Government to focus on shortcomings and weaknesses; to stabilize and restructure the financial market; to improve the transparency of businesses, to basically settle bad debts of businesses, banks, and unfinished constructions; to allocate resources for social security and social welfare; to effectively implement national target programs; prefer investments in construction of new rural areas and poverty reduction… so that up to 2015, the ratio of trained workers reaches 55%; the number of poor households reduces by 1.5% - 2% per year; consumer price index increases by 7% per year; export turnover grows by 10% per year and unemployment rate in urban areas falls below 4%...