Legal Document Updates in English (03/2012)

CPI IN 2011 IS ESTIMATED AT 18%
 

The Government on November 30th and December 31st of 2011 convened its regular meeting to discuss and decide on reports on the implementation of socio-economic plan and the State budget for 2011; draft Government’s Resolution on major solutions for the realization of the socio- economic development plan and the State budget for 2012.

These issues were presented in the Resolution No. 102/NQ-CP dated December 04^th 2012 of the Government’s regular meeting – November 2011.

The Resolution pointed out that the consumer price index in the whole year 2011 is estimated at around 18%; budget collection surged highly beyond the preset target; budget overspending was lower than the schedule; public investment was put under tight control and cut down or shifted towards higher efficiency; export turnover went up to 34.7% against the same period last year and is forecast to see a three-fold increase against the preset target. GDP growth rate is forecast at 6 % which is relatively high in context of anti-inflationary period…

To fulfill the preset target and tasks for 2011 and make good preparations for the realization of the socio-economic development plan for 2012, the Government requests ministries, agencies, and localities to raise the sense of responsibility, grasp through the Resolutions issued by the Party and National Assembly, strictly observe Government’s instructions and management, especially the Government’s Resolution 11, dated on February 24, 2011; keep a close watch on the situation.

In the regular meeting, the Government also discusses and gives comments on the projects on: investment restructuring; State Owned Enterprises (SOEs) restructuring, overall scheme on State Owned Enterprises restructuring for the 2011- 2015 with vision to 2020; credit organization restructuring for the 2011- 2015, presented by the Minister of Planning and Investment, The Minister of Finance, The Steering Committee for SOEs Renovation and Development and the Governor of the State Bank of Viet Nam.

HOSPITALS MUST PURCHASE LIABILITY INSURANCE IN
MEDICAL EXAMINATION AND TREATMENT

The Government restricts all medical establishments that no later than December 31, 2015, all of the medical examination and treatment facilities operating in the form of organizations as hospitals, including general hospitals, specialized hospitals, and traditional medicine hospitals must purchase liability insurance in medical examination and treatment as promulgated in the Decree No. 102/2011/ND-CP dated November 14, 2011, on liability insurance in medical examination and treatment.

The coverage of liability insurance includes insurance for complications in medical examination and treatment due to technical errors caused by negligence errors, carelessness of practitioners in the medical examination and treatment facilities to their patients. Other cases shall be agreed by medical examination and treatment facilities and insurers.

Liability insurance rates for each complaint case of coverage is the maximum amount that the insurer

shall pay but not exceeding the total liability insurance rate for medical examination and treatment facility as agreed upon in the insurance contract. The rate of insurance liability includes legal expenses in case of medical examination and treatment required to pay in accordance with the law regulations.

Medical examination and treatment facility shall pay compensation to the patient or his/her legal representative. Where the medical examination and treatment facility is suspended or revoked the operating license or with other consents in writing between the medical examination and treatment facility and the insurer, the insurer shall directly pay compensation to patient or his/her legal representative.

The Decree shall take effect on January 01, 2012

 
THE GROWTH RATE OF POPULATION IS AIMED AT 1%
 

The Prime Minister approved Vietnam's strategy for population and reproductive health during 2011-2020 in the Decision No. 2013/QD-TTg of November 14, 2011 based on the spirit of taking the advantage of population structure and positively adjusting the growth rate of population and controlling the sex ratio at birth.

The strategy proposed 11 targets which aim to enhance the quality of population; improve the reproductive health; maintain the low fertility at reasonable level; solve problems related to population structure and population distribution; and contribute to the successful implementation of national industrialization and modernization process.

Specifically, the growth rate of population will be at 1% by 2015 and stabilize at about 1% by 2020; human development index (HDI) will keep at the high average of the world by 2020; improve health and decrease the rate of infants; narrow the differences in health indicators of children in each regions….

The purpose of projects in the strategy includes: raise the awareness towards population and family planning; ensure and provide services for family planning; improve the management capacity in population and family planning program….

This Decision shall take effect since its signing.

 
LIST OF 25 MACHINES, EQUIPMENT, SUPPLIES SUBJECT
 TO STRICT LABOR SAFETY REQUIREMENTS
 

The Ministry of Labor, War Invalids and Social Affairs promulgated the Circular No. 32/2011/TT-BLDTBXH of November 14, 2011, guiding the technical expertise of occupational safety of machinery, equipment, materials with strict requirements on occupational safety.

The Circular issues the list of 25 kinds of machines, equipment, supplies subject to strict labor safety requirements such as: boilers of all kinds; steam pipelines; fixed fuel gas pipeline made of metal; systems for preparing and charging air, liquefied and dissolved gases; cranes of all kinds…

Establishments using machines, equipment, supplies in the list must have the responsibility to notify their needs to verifying units in writing or by fax / email so that the latter can carry out the verification: first

time, regular or extraordinary; these establishments must also supply technical documents related to verified objects to the verifying officers and send their representatives to witness the verification process;

Within four working days since receiving the requests on the verification, if verifying units are unable to satisfy verification requests of establishments, they shall notify such in writing to establishments, clearly stating reasons for not fulfilling the requests.

The Circular will take effect on January 01, 2012 and replace the Circular No. 04/2008/TT-BLDTBXH dated February 27, 2008.

CHANGES IN THE EXPORT IMPORT
TARIFF SCHEDULE SINCE JANUARY 01, 2012
 

To fulfill the commitment to international organizations, on November 14, 2011, the Ministry of Finance promulgated the Circular No. 157/2011/TT-BTC in reference to stipulating on tax rate of export tariff, preferential import tariff according to the list of taxable items (Tariff Schedule 2012).

There are many changes in 2012 tariff schedule compared with tariff schedule 2011both on list of goods (item names, quantity of tariff lines, item codes) and tax rates. Specifically, item codes in tariff schedule will classify goods under 8-digit number (formerly 10 digits). 2012 tariff schedule includes 9,566 tariff lines which increases 1,258 compared to the harmonize Nomenclature and description of goods of ASEAN countries in 2007 and increases 336 tariff lines compared the current MFN import tariffs in Vietnam.

For export tariff, the Ministry of Finance has adjusted tax rate of 24 categories “waste and scrap of metal” according to WTO commitments in 2012. Accordingly, export tariff of “waste and scrap of metal” categories is adjusted to 29% and 22% according to WTO commitments in 2012 which is equivalent to 22% and 17%; the item of “processed white limestone” under is also adjusted from 17% to 14%.

For preferential import tariff, there are 945 tariff lines subject to tax rate reduction in the route of 2012

WTO; 157 lines have tax rate increased to protect domestic production, limit deficit under Resolution No.11/NQ-CP of the government for items in list of goods discourage to be imported and out of list of state management to stabilize prices or in the list of equipment, machinery, spare parts, means of transport which can be produced in domestic.

Besides 97 chapters in the list of import export items in Vietnam, 2012 tariff schedule added Chapter 98 which includes 22 items, categories with specified preferential tax rate to regulate the tax rate for some items and avoid the influence on domestic production due to changes on tax rate.

Specifically, 22 items and groups are selected to add into chapter 98 such as output of agricultural products (the meat of pheasant which is cut in pieces…); input materials of some sectors which manufacture cement, tires or high-voltage transmission line; the product should be closely managed and restricted the consumption (tapes, hunting rifles).

The Circular will come into effect from January 01, 2012.