Legal Document Updates in English (06/2014)

OPEN FUND SHALL CONDUCT COLLECTION UNDER AGREED PRICE
 

On December 31, 2013, the Ministry of Finance issued the Circular No. 216/2013/TT-BTC amending the Circular No. 38/2011/TT-BTC dated March 16, 2011 of the Ministry of Finance regulations of the rate, collection-payment regime, management and use of fees from securities operations applying with security service organizations.

Accordingly, instead of the subjects to submit the Charge for service of preserving and supervising the assets like Securities Investment Companies and Securities Investment Funds as before, this Circular points out clearly that the subjects of charging are Closed Funds, Member Funds, Securities Investment Companies. And the

APPLY THE ENTERPRISE INCOME TAX OF 20% FROM JANUARY 01, 2016
 

The persons subject to the tax rate of 22% specified in this Clause shall be subject to the tax rate of 20% shall applied on January 01, 2016 is the content prescribed at the Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Enterprise Income Tax.

Similarly, Tax rate of 20% for people’s credit fund and micro financial institution and from January 01, 2016, the tax rate of 17% shall be applied. Enterprises established and operating under the law of Vietnam, including cooperatives, non-business units operating the production and business of goods and services with the total annual revenue not exceeding 20 billion dong are entitled to the tax rate of 20%; within that, the total annual revenue as a basis for

FEMALE WORKERS IS PROHIBITED TO INSTALL HIGH-VOLTAGE ELECTRIC PYLONS
 

On October 18, 2013, the Ministry of Labor, War Invalids and Social Affairs issued the Circular No. 26/2013/TT-BLDTBXH promulgating the list of jobs in which the employment of female workers is prohibited.

The list includes 38 Jobs in which the employment of female workers is prohibited under Clause 1, Article 160 of the 2012 Labor Code, within that, there are some jobs that should be paid attention such as Removing rock on the mountains; Installing offshore oil rigs;  Exploratory drilling of oil and gas wells; Regularly working in shifts on offshore oil rigs (except socio-medical services and meal-accommodation services); Maintaining and repairing electric lines in underground tunnels or on open-air posts and high-voltage electric lines and installing high-voltage electric pylons…

At the same time, the Circular also issued the list applicable to female workers who are pregnant or nursing under-12 month children, in particular: working in places

REDUCE INTEREST RATE OF LOAN’S OUTSTANDING BALANCE
FOR HOUSE ASSISTANCE TO 5% PER ANNUM
 

On January 02, 2014, the State Bank of Bank issued the Decision No. 21/QD-NHNN providing the interest rate of commercial bank applied in 2014 for loan’s outstanding balance for house assistance in accordance with the Circular No. 11/2013/TT-NHNN date May 15, 2013.

Accordingly, The State Bank shall annually announce the lending interest rate for housing support loans granted by banks to clients and apply it to outstanding loans in the year And the interest rate applied to subjects that purchase, rent or rent-purchase social houses and rent or purchase commercial houses with a floor area of under 70m² and a sale price of under 15,000,000 VND/m² is 5% per annum instead of 6% per annum as in previous regulations.

Individuals and organizations supported to get the loans must satisfy some consistent conditions. Clients being individuals who borrow loans for purchasing,

REGULATIONS ON HANDING COUNTERFEIT MONEY AND MONEY SUSPECTED
TO BE COUNTERFEIT IN BANK SECTOR
 

On December 05, 2013, the State Bank of Vietnam issued the Circular No. 28/2013/TT-NHNN regulated that The State Bank branches of provinces and cities directly under the Central Government (hereafter referred to as branch of State Bank), the Transaction Center of State Bank (hereafter referred to as Transaction Center), credit institutions and branches of foreign banks, upon detecting counterfeit money in cash transaction with customers, must seize it under the provisions; upon detecting the suspected counterfeit money, they must temporarily seize it under the provisions.

In the case that there are suspicious signs of storing, transporting and circulating counterfeit money; new counterfeit money; there are 05 notes of counterfeit money (or five pieces of counterfeit coin) or more in a transaction; the customers do not comply with the making of record and seizure of counterfeit money, the State Bank

CHANGES IN ORGANIZATIONAL STRUCTURE OF THE STATE BANK OF VIETNAM
 

On November 11, 2013, the Government issued the Decree No. 156/2013/ND-CP of November 11, 2013, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam.

Accordingly, there are 27 units in the organizational structure of the State Bank of Vietnam (increased by 3 units compare with current regulations), within that there are 01 Department and 02 training establishments (The Monetary-Financial Stability Department; The Banking University of Ho Chi Minh City; The Banking Academy). At the same time, the Credit Department is named to the Credit Department for Economic Sectors; The Monetary Statistics and Forecast Department and The Credit Information Center shall be named in turn the Statistics and Forecast Department and The Vietnam National Credit Information Center. The units within the State Bank’s organizational structure may establish divisions to meet their actual work requirements.

The State Bank has the tasks and powers to elaborate annual inflation norms for

100% OF MEDICINES-TRADING ESTABLISHMENTS MEET GOOD PRACTICE STANDARD
 

This is one of objectives that the Prim Minister placed for the Ministry of Health, the Ministry of Industry and Trade and other relevant industries at the Decision No. 68/QD-TTg dated January 10, 2014 approving the National Strategy on Vietnam pharmaceutical industry’s development to 2020 and with the vision to 2030.

Specific objectives to 2020 are timely supply 100% of preventive and curative drug demand; to strive to produce 20% of raw materials demand for domestic medicine production, drugs produced domestically occupying 80% of total value of drugs consumed in year, in which drugs from material medical shall occupy 30%; vaccines produced domestically shall meet 100% of demand for expanded vaccination and 30% of demand for service vaccination; to strive to attain 40% generic drugs produced domestically and imported with circulation registration number already assessed bioequivalence and bioavailability;  100% of medicines-trading establishments under the drug distribution system meet good practice standard, 50% of

FIRE AND EXPLOSION INSURANCE BUSINESS MUST PAY
FOR FIRE PREVENTION AND FIGHTING ACTIVITIES
 

In accordance with the Joint Circular No.  214/2013/TTLT-BTC-BCA dated December 31, 2013 of the Ministry of Finance and the Ministry of Public Security detailing the implementation of some articles of the Decree No. 130/2006/ND-CP dated November 08, 2006 of the Government providing for the compulsory fire and explosion insurance regime.

In particular, within 30 days from 30 of June and 31 of  December every year, insurance enterprises shall transfer the amounts contributed to fire prevention and fighting activities into the Police Department for fire prevention and fighting and rescue and salvage's custody account opened at the Central State Treasury, make reports on the compulsory fire and explosion insurance business result and report on deducted amounts from fire and explosion insurance premiums.

OPERATION REGIME OF THE STATE CAPITAL INVESTMENT CORPORATION
 

On November 01, 2013, the Government issued the Decree No. 151/2013/ND-CP of November 1, 2013, on the functions, tasks and operation mechanism of the State Capital Investment Corporation.

The Corporation is an enterprise established under decision of the Prime Minister; has its charter capital invested by the State and is assigned to manage state capital in enterprises transferred from ministries, ministerial-level agencies and People’s Committees of provinces and centrally run cities (provincial-level People’s Committees) and operates as a single-member limited liability company with 100% of charter capital held by the State.

SHIP REGISTRATION NOT MORE THAN 15 YEARS
 

On November 12, 2013, the Government issued the Decree No. 161/2013/ND-CP of November 12, 2013, on registration, purchase, sale and building of seagoing ships. Within that, for first-time registration in Vietnam, used ships must be not more than 10 years, for passenger ships; and not more than 15 years, for ships of other types. The limits on the ages of ships specified in Clause 1 of this Article do not apply to ships under the ownership of foreign individuals or organizations and coercively auctioned in Vietnam under decisions of competent agencies.

Besides, Before being registered for flying foreign state flags, ships flying the Vietnamese flag and chartered or charter-purchased by foreign organizations or individuals must be subject to deregistration of Vietnamese ships in accordance with laws.