Legal Document Updates in English (05/2015)

MAXIMUM COMMISSION FOR INSURANCE CONTRACTS OF
GUARANTEE INSURANCE IS 10%
 

This is the content prescribed at the Circular No. 194/2014/TT-BTC dated December 17, 2014 of the Ministry of Finance on amending and supplementing a number of articles of the Circular No. 124/2012/TT-BTC dated July 30, 2012 of the Ministry of Finance guiding the implementation of a number of articles of the Government’s Decree No. 45/2007/ND-CP of March 27, 2007, detailing a number of articles of the Insurance Business Law, and the Government’s Decree No. 123/2011/ND-CP of December 28, 2011, detailing a number of articles of the Law Amending and Supplementing a Number of Articles of the Insurance Business Law and the Circular No. 125/2012/TT-BTC dated July 07, 2012 of the Ministry of Finance on guiding financial regime applicable to insurers, reinsurance businesses, insurance brokers and branches of foreign non-life insurers.

Accordingly, from February 01, 2015, the maximum commission of insurance agent for insurance contracts of guarantee insurance is 10%; at the same time, the life insurance enterprise shall make uniform payment of commission and management of insurance agent between

DEPOSIT INTEREST RATE AND PAYMENT OF DEPOSIT INTEREST RATE
FOR OUTSOURCERS
 

On December 11, 2014, the State Bank of Vietnam issued the Circular No. 40/2014/TT-NHNN guiding the payment and management of outsourcer’s deposits.

In accordance with regulations prescribed in this Circular, when an outsourcer wishes to pay a deposit into its account at a bank, the depositary bank and the outsourcer shall conclude an agreement on deposit payment and shall contain names, addresses, representatives of the outsourcer and the depositary bank; amount of the deposit; deposit interest rate; payment of the deposit interest; use of the deposit; withdrawal of the deposit; refund of the deposit and liability of related entities.

The depositary bank shall monitor the use of the deposit made by the outsourcer in accordance with regulations of law. In case the balance of deposit account is lower than regulated rate, the depositary bank shall request the

ALLOWED TO USE FOREIGN LANGUAGES IN TEACHING
 

The Prime Minister has just signed the Decision No. 72/2014/QD-TTg dated December 17, 2014 of the Prime Minister on teaching and learning in foreign language at schools and other educational institutions, any foreign language may be used partially or entirely to teach learners at general education level in Vietnam with the priority given to such majors as mathematics, natural sciences, technology and computer science.

The Prime Minister also emphasizes that as for general education level, the final examination and test at the end of an academic year or grade of training programs or subjects designed in a foreign language must be designed in Vietnamese language. Learners shall be able to take more examinations in a foreign language in order to be entitled to incentives in accordance with instructions of the Ministry of Education and Training.

Training programs designed for university and vocational education levels must be approved by competent authorities while quality-certified academic programs offered by foreign-owned educational institutions may partially or entirely use a foreign language in the teaching and learning process; teaching and learning majors or

AGRICULTURE COMPANY SUFFERS A LOSS FOR
THREE CONSECUTIVE YEARS SHALL BE DISSOLVED
 

This is the content prescribed at the Decree No. 118/2014/ND-CP dated December 17, 2014 of the Government on restructuring, developing and improving the agriculture and forestry companies.

In particular. an agriculture company shall be dissolved if it suffers a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company; allocates empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company and its total area is smaller than 500 hectares and dispersive, and the business operation is ineffective.

Beside suffering a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company and allocating the empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company, the forestry company’s total area is smaller than 1000 hectares and dispersive, and the business operation is ineffective. In case the company’s area is smaller than 1000 hectares but concentrated and

RESTRICTING THE NEW ESTABLISHMENT OF TIMBER PROCESSING
AND TRADING ESTABLISHMENTS
 

On December 11, 2014, the Prime Minister signed the Decision No.  2242/QD-TTg approving the Scheme for strengthening the management of natural forest’s timber exploitation in 2014 – 2020 in order to improve quality of natural forest and develop the production forests with high quality eligible for sustainable exploitation in order to meet the demand for natural timber for domestic consumption and gradually replace the imported timber.

With above objectives and targets, the Scheme requires to stop the exploitation of timber of natural forests nationwide, except for two (02) areas (under the management of Dak To forestry one member limited liability Company in Kon Tum province and Long Dai industry one member limited liability Company in Quang Binh province) which have been approved for the schemes and issued with certificate of sustainable forest management from international organizations and exploitation on the areas of production forests which the State has allocated to households, individuals and rural communities… implements the review and inspection over the timber processing establishments and only permitting the operation towards the establishments abiding by the planning and having stable raw materials and book system to meet the requirements for access and control of timber with legal origin and restricts the new establishment of timber processing and