Legal Document Updates in English (03/2022)

FEE FOR NEW ISSUANCE OF ORDINARY PASSPORTS UNDER SHORTENED PROCEDURE IS USD 35/PASSPORT

The Circular No. 113/2021/TT-BTC amending and supplementing a number of articles of the Circular No. 264/2016/TT-BTC dated November 14, 2016 of the Minister of Finance on prescribing the rates and collection, remittance, management and use of charges and fees in the field of foreign affairs by overseas Vietnamese representative missions is issued on December 15, 2021 by the Ministry of Finance.

Accordingly, the fee rate for issuance of ordinary passports (except for those issued according to the shortened procedure), diplomatic passports, official passports and fee rate for issuance of ordinary passports according to the

shortened procedure is USD 70/passport and USD 35/passport, respectively.

Besides, to amend the marriage charge as follows: Fee rate for marriage registration and marriage re-registration is USD 70/case and USD 120/case, respectively.

The Circular also annuls regulations on fees for supplementing and modifying passports, issuance of laissez-passers and charges for grant of citizen registration certificates specified in Appendices to the Circular No. 264/2016/TT-BTC dated November 14, 2016.

This Circular takes effect on February 01, 2022.

LABOR EXPORT COMPANIES SHALL CONTRIBUTE VND 150,000/WORKER/CONTRACT
TO THE FUND FOR OVERSEAS EMPLOYMENT SUPPORT

This content is prescribed in the Prime Minister’s Decision No. 40/2021/QD-TTg dated December 31, 2021, on the Fund for Overseas Employment Support.

The Fund for Overseas Employment Support (hereinafter referred to as the Fund) under the Ministry of Labor, Invalids and Social Affairs aims to support the market development, stabilization and expansion; prevent, minimize and manage risks for workers and enterprises; protect legitimate rights and interests of workers.

According to this Decision, enterprises providing the service of sending Vietnamese workers abroad as guest workers shall contribute VND 150,000/worker/contract to the Fund. Enterprises may conclude these contributions into their expenses for sending workers abroad.

For guest workers, the contribution still remains the same as VND 100,000/person/contract. Workers may directly contribute in cash to the Fund or transfer a contribution to the Fund within 3 days before exiting the country or within 5 working days after receiving the notice of approving the contract registration from the competent State agency, in case of signing labor contracts after exiting the country.

In case the worker makes contribution via an enterprise, organization or individual sending him/her abroad, such organization or individual shall collect and transfer his/her contributions of a month into the Fund’s account, no later than the 10^th of the following month.

This Decision takes effect on February 21, 2022.

COEFFICIENT FOR ADJUSTMENT OF MONTHLY SALARIES
FOR WHICH SOCIAL INSURANCE PREMIUMS HAVE BEEN PAID IN 2022 IS 1.00

On December 31, 2021, the Ministry of Labor, Invalids and Social Affairs issues the Circular No. 36/2021/TT-BLDTBXH specifying coefficients for adjustment of monthly salaries and incomes for which social insurance premiums have been paid.

Accordingly, monthly salary on which social insurance premiums are based which is adjusted in a year shall be equal to the total monthly salary on which social insurance premiums are based in a year multiplied by the coefficient for adjustment of salary for which social insurance premiums have been paid in the corresponding year.

Specifically, the adjustment coefficient before 1995; the adjustment coefficient in 2000; 2009; 2019; 2020; 2021 and 2022 is 5.10; 3.58; 1.88; 1.05; 1.02; 1.00 and 1.00, respectively.

Besides, the coefficient for adjustment of incomes for which social insurance premiums have been paid in 2008; 2010; 2015; 2019; 2020; 2021 and 2022 is 2.01; 1.72; 1.19; 1.05; 1.02; 1.00 and 1.00, respectively.

This Circular takes effect on February 20, 2022; the provisions of this Circular apply from January 01, 2022.

THE INVESTOR’S EQUITY MUST BE NOT LESS THAN 20% OF TOTAL INVESTMENT CAPITAL
FOR A PROJECT USING UNDER 20 HECTARES OF LAND

This is a remarkable content specified in the Government’s Decree No. 02/2022/ND-CP detailing a number of articles of the Law on Real Estate Business dated January 06, 2022.

Before, organizations and individuals doing real estate business shall establish enterprises in accordance with the law on enterprises or establish cooperatives in accordance with the law on cooperatives and must have a legal capital of at least VND 20 billion.

According to the new regulations, in case an investor is selected as the project owner of a real estate project in accordance with law regulations, the equity of such investor must be not less than 20% of the total investment capital for

a project using less than 20 hectares of land, not less than 15% of the total investment capital for projects using 20 hectares of land or more.

The determination of the equity is based on the results of the latest audited financial statement or the results of the independent audit report (in the year of determination or the year preceding the year of determination) of an operating enterprise. For a newly established enterprise, the equity shall be determined according to the actual contributed charter capital in accordance with law regulations.

This Decree takes effect on March 01, 2022.

FOREIGN CURRENCY TRANSACTIONS BETWEEN THE STATE BANK AND LICENSED CREDIT INSTITUTIONS

On December 31, 2021, the State Bank of Vietnam issues the Circular No. 26/2021/TT-NHNN guiding foreign currency transactions between the State Bank of Vietnam and credit institutions licensed to engage in foreign exchange transactions (hereinafter referred to as the licensed credit institutions).

Accordingly, the State Bank shall deal in foreign currencies with licensed credit institutions having foreign currency transaction relationship by the following types of transactions: Spot transaction; Forward transaction; Swap transaction; Option transaction; Other types of transactions as decided by the State Bank in each period. The official time of foreign currency transaction of the State Bank with licensed credit institutions shall be subject to the working time of the State Bank on weekdays.

If the payment is made later than the time as agreed between the State Bank and the licensed credit institution, the party that makes late payment in foreign currency shall be fined up to 150% of the overnight interest rate of the correspondent bank of the party who receives the late payment on the standard payment account receiving foreign currencies at the arising date calculating based on the amount and days of late payment.

Besides, the State Bank shall suspend foreign currency transactions with licensed credit institutions for 03 months in the following cases: Failing to send reports or failing to send reports within the prescribed period or failing to send reports with the prescribed contents from 03 or more times in one quarter; Failing to comply with regulations.

This Circular takes effect on February 15, 2022.

CHANGE MANY REGULATIONS ON INDEPENDENT AUDIT OF FOREIGN BANK BRANCHES

The State Bank of Vietnam promulgates the Circular No. 24/2021/TT-NHNN amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 39/2011/TT-NHNN dated December 15, 2011, providing independent audit of credit institutions and foreign bank branches on December 31, 2021.

Specifically, to add 01 condition on independent audit organizations to audit microfinance institutions and people’s credit funds as follows: They have not audited the to-be-audited micro-finance institution, people's credit fund for five consecutive years preceding the year of audit.

The commercial bank or foreign bank branch must conduct the audit of the compliance with current laws and regulations of the State Bank on the internal control system of credit institutions, foreign bank branches of its internal control system (including internal mechanisms, policies, processes and regulations); the audit of the operation of the internal control system for the making and presentation of financial reports.

Additionally, the commercial bank or foreign bank branch must audit the operation of the internal control system with the internal assessment content on the capital adequacy of commercial banks, foreign bank branches according to regulations of the State Bank on the internal control system.

This Circular takes effect on April 15, 2022.

BEFORE DECEMBER 01, MEDICAL ESTABLISHMENTS MUST PRESCRIBE DRUGS IN THE ELECTRONIC FORM

On December 20, 2021, the Ministry of Health promulgates the Circular No. 27/2021/TT-BYT providing regulations on prescribing drugs in electronic form.

According to this Circular, medical examination and treatment establishments must prescribe drugs in the electronic form specified in this Circular according to the specific roadmap as follows: For hospitals of level 3 and higher, to complete it before June 30, 2022; For other medical examination and treatment establishments, to complete it before December 01, 2022.

Electronic prescriptions that are made, displayed, digitally signed, shared and stored by electronic method meeting the provisions of this Circular have the same legal validity as paper prescriptions. The Departments of Health of provinces

and centrally run cities, and health management agencies of ministries and sectors shall grant medical examination and treatment establishment identifiers and practitioner codes to subjects under their management through the National Prescription System.

The medical examination and treatment establishment shall send electronic prescriptions to the National Prescription System as prescribed by the Minister of Health right after the completion of the medical examination and treatment process for out-patients and before the patient is discharged from the hospital for in-patients, etc.

This Circular takes effect on February 15, 2022.

FAILING TO OPEN A FROZEN ACCOUNT TO RECEIVE PAYMENT
FOR STOCKS SHALL BE FINED UP TO VND 200 MILLION

This highlight content is prescribed by the Government in the Decree No. 128/2021/ND-CP dated December 30, 2021, amending and supplementing a number of articles of the Government’s Decree No. 156/2020/ND-CP dated December 31, 2020, providing for the sanctioning of administrative violations in the domains of securities and securities market.

Specifically, a fine from VND 100,000,000 to VND 200,000,000 shall be imposed for any of the following acts of violation: Failing to open a frozen account to receive payments for stocks in foreign currencies at a bank or foreign bank branch permitted under the law on foreign exchange management; Failing to transfer the proceeds gained from the offering to the frozen account; Using money in the frozen account before the State Securities Commission notifies the receipt of the offering or issuance result reports in writing.

Besides, a fine from VND 100,000,000 to VND 150,000,000 shall be imposed for the act of failing to transfer the proceeds gained from the additional issuance to the frozen account at a bank or foreign bank branch; using the proceeds gained from the offering before the State Securities Commission notifies the receipt of the offering result reports in writing.

A fine from VND 50,000,000 to VND 70,000,000 shall be imposed on a public company that fails to report the maximum foreign holding rate or fails to report the change to the maximum foreign holding rate. A fine from VND 30,000,000 to VND 50,000,000 shall be imposed on a public company that fails to report the change to the maximum foreign holding rate within the prescribed time limit.

This Decree takes effect from January 01, 2022.

FROM FEBRUARY 15, ROADS FROM NATIONAL DEFENSE AREAS
MAY BE CONNECTED TO NATIONAL HIGHWAYS

On December 22, 2021, the Government issues the Decree No. 117/2021/ND-CP amending and supplementing a number of articles of the Government's Decree No. 11/2010/ND-CP dated February 24, 2010, prescribing the management and protection of road infrastructure facilities.

As in previous regulations, roads to be connected to national highways include: Provincial, district, commune and urban roads; Special-use roads; Collector roads. According to the new regulations, roads from areas and works serving national defense and security and socio-economic development shall also be connected to national highways.

Also in accordance with this Decree, roads from houses can only be connected to the national highway through feeder roads and collector roads. When forming or expanding the administrative boundary of an urban area, the provincial-level People's Committees must use the existing local road system or build a collector road along the national highway in order to minimize the direct connection to the national highway.

This Decree takes effect on February 15, 2022.

PERSONS COMMITTING ACTS OF DOMESTIC VIOLENCE,
VIOLATING DECISION TO BAN CONTACT SHALL BE SUBJECT TO TEMPORARY CUSTODY

The Decree No. 142/2021/ND-CP prescribing the sanction of expulsion and the measures of temporary custody and escorted transfer of violators in accordance with administrative procedures, and management of foreign violators of the Vietnam’s law regulations pending the completion of expulsion procedures is issued on December 31, 2021 by the Government.

Accordingly, the temporary custody of persons in accordance with administrative procedures shall only be applied in the following cases: To immediately prevent and stop acts of disturbing public order and causing injury to others; To immediately prevent and stop the act of smuggling and illegally transporting goods across the border; To execute the decision on sending persons to reformatory, compulsory education institution, compulsory detoxification establishment.

In addition, this measure shall also be applied to determine drug addiction for illegal drug users, or for persons committing acts of domestic violence who violate the decision to ban contact in accordance with law regulations on domestic violence prevention and control.

The time limit for temporary custody of persons in accordance with administrative procedures must be clearly stated in the decision on the temporary custody of persons in accordance with administrative procedures. The time limit for temporary custody for cases of being held in temporary custody in border areas or remote mountainous, mountainous areas, islands shall be counted from the time the violator is escorted to the place for temporary custody in accordance with administrative procedures.

This Decree takes effect from January 01, 2022.