Legal Document Updates in English (07/2013)

USING “COMPANY” AND “ENTERPRISE” FOR BUSINESS HOUSEHOLD’S NAMES
IS PROHIBITED
 

This is one of the contents regulated under the Circular No.01/2013/TT-BKHDT dated January 21, 2013 of the Ministry of Planning and Investment guiding the enterprise registration.

Accordingly, business households may not use the word “company” and “enterprise” in their names. Names of business households are in the alphabet used for naming business households as prescribed. This Circular also contains some important regulations on updating information about local enterprises in the National Enterprise Registration Database.

PROLONG DURATION OF EIT PAYMENT AND VAT 06 MONTHS
 

On February 08, 2013, the Ministry of Finance issued the Circular No. 16/2013/TT-BTC guiding implementation of the extension of time limits, reduction of a number of state budget revenues according to the Government’s Resolution No. 02/NQ-CP, of January 07, 2013 on a number of solutions to remove difficulties for business production, market support, settlement of bad debts.

Accordingly, medium and small-sized enterprises, Intensive-labour enterprises (more than 300 laborers) in production or processing fields of: Agricultural products, forestry products, aquatic products, textile and garment, leather and footwear…and enterprises of housing business investment are prolonged duration of enterprise income tax payment for 06 months applying to payable enterprise income tax amounts of quarter I and duration of enterprise income tax payment for 03 months applying to payable enterprise income tax amounts of quarter II and quarter III of 2013. Therefore, duration of extension of tax payment time limit for the payable EIT amounts arising of quarter I, II of 2013 entitled to prolong tax payment time limit shall be not later than October 30, 2013. Duration of extension of tax payment time limit for the payable EIT amounts arising of quarter III of 2013 entitled to prolong tax payment time limit shall be not later than January 30, 2014.

EXPENSE FOR SUPPORT TO SETTLE POLICY OF REDUNDANT EMPLOYEES
 

On January 18, 2013, the Ministry of Finance issued the Circular No. 10/2013/TT-BTC guiding the mechanism of management and use of fund for support of arrangement of enterprises at the parent company in the economic group, State Corporation, parent company in the parent company– subsidiaries conglomerate. Of which, one of the notable content is regulation on expense for support to settle policy of redundant employees.

Under this Circular, for the enterprises of equitization, business sale: the Fund only supports the funding to solve policy for redundant employees when the revenues are lack from equitization, sale of enterprises in accordance the law provisions and not enough to pay; For enterprises of dissolution, bankruptcy: the Fund only supports the funding when revenues from the dissolution, bankruptcy under the provisions of the law are not sufficient to address policy for redundant employees.

Subjects are supported including: employees who are lost or leave their job; The titles of members of the Council of members, the company's president, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant

ESTABLISING DATABASE OF NATIONAL CREDIT INFORMATION
 

On January 28, 2013, the State Bank of Vietnam issued the Circular No. 03/2013/TT-NHNN providing on credit information activity of the State bank of Vietnam. One of the significant contents is regulation on the establishment of database of national credit information.

Under this Circcular, database of national credit information is a collection of credit information data and products of all kinds which are managed, saved and used on the information technology system. Credit information activity aims to create a database of national credit information in order to support the State bank of Vietnam in implementation of function on management and supervision of banking activity, contributing in assurance for safe Vietnam bank system; Credit institutions in risk prevention and limitation in business activity; Borrowers in accessing credit capital source of organizations of Credit extension, contributing in promotion for socio-economic development

BANKS MUST SELF-IMPLEMENT CLASSIFICATION OF DEBTS AT LEAST EACH QUARTER
 

This is the requirement under the Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the State Bank of Vietnam providing on classification of assets, levels and method of setting up of risk provisions, and use of provisions against credit risks in the banking activity of credit institutions, foreign banks’ branches.

Under this Circular, at least each quarter for one times, within 15 (fifteen) first days of first month of each quarter, credit institutions, foreign banks’ branches must self-implement classification of debts, off-balance sheet commitments which have arisen until the ending time of final working day of last quarter, based on the capability of customers to pay debts and send results of self-classification of debts, off-balance sheet commitments to the Credit Information Center (CIC). The CIC shall summarize list of customers according to group of debts with highest risk extent. From that, credit institutions, foreign banks’ branches use result of classification of customer debt groups supplied by the CIC in order to adjust their result of classification of debts, off-balance sheetcommitments; setting up sufficient

RESTRAINING THE EXTENSION OF CREDIT INSTITUTION NETWORK IN 2013
 

This is regulation under the Directive No. 01/CT-NHNN of the State Bank of Vietnam dated January 31, 2013 on organization to implement the monetary policy and assuranace of safe and effective banking operation in 2013. Of which, the notable content is requirement on strengthening examination, inspection, supervision of monetary market and banking activities.
Specifically, strengthen examination, inspection with respect to credit institutions, concentrating in the contents: Financial and ownership situation; transfer of shares; contributed capital, foreign currency and gold business; capital mobilization, inspection and supervision of risks of subjects of banking inspection and supervision in order to earlier detect, warn risk of each credit institution and whole system; strictly manage establishment of new credit institutions and extension of credit institution network; to restrain extension of credit institution network in urban areas;

WARRANT CONSTRUCTION WORKS AT LEAST 12 MONTHS
 

This is also the requirement of the Government for construction contractors and suppliers of material used in construction works under the Decree No. 15/2013/ND-CP dated February 06, 2013 on the quality management of construction works.

Accordingly, construction contractors and equipment suppliers are responsible for carrying out warranty for construction works and equipment. The warranty duration will be counted from the date that Investors sign the acceptance minutes to put construction works and items into use or based on the conditions specified in the construction contracts but not less than 24 months for works of special grade and grade I and not less than 12 months for works of other grades.

For dwelling house, warranty is still implemented based on Article No. 74 of the Law on housing; Specifically, at least sixty months for condominiums of nine or more storey and houses of other types which are constructed with the state budget investment; At least thirty six months for condominiums of between four and eight storey; at least twenty four months for other types of houses. Besides, the Decree also guided in detail on classification and grading of incidents, reports of incidents. Specifically

THE PRIME MINISTER DECIDES ON INVESTMENT APPROVAL
FOR PROJECTS OVER 100 HECTARES
 

On January 14, 2013, the Government issued the Decree No. 11/2013/ND-CP on the investment management of urban development. Of which, one of the notable contents is regulation on authority Authority to approve investment for project of new urban center construction investment.
Specifically, under this Decree, The Prime Minister shall decide on investment approval after obtaining the appraisal opinion of the Ministry of Construction for the following cases: Project with the scale of land use from 100 hectares or more; Project within the administrative boundaries of two or more provinces or area having important implications on security and national defense. Besides, provincial-level People's Committee shall decide on investment approval for the projects with the land use scale from 20 hectares to less than 100 hectares after obtaining written consent of the Ministry of Construction. At the same time, Provincial-level People's Committee shall decide on investment approval of the remaining projects.

APEC BUSINESS TRAVEL CARDS SHALL BE VALID FOR 3 YEARS
 

On January 30, 2013, the Ministry of Public Security promulgates the Circular No. 07/2013/TT-BCA  amending and supplementing a number of points in the Circular No. 27/2007/TT-BCA, of November 29, 2007 of the Ministry of Public Security guiding the issuance, amendment and supplementation of ordinary passports granted in the country and the Circular No. 10/2006/TT-BCA, of September 18, 2006, of the Ministry of Public Security guiding implementation of the Regulation on issuance and management of the APEC business travel cards.

Under this Circular, the Ministry of Public Security regulated that Vietnamese business people who want to be re-issued the APEC business travel cards (ABTCs) must have ordinary passports with time limit of at least three years from the day of submission of dossier requesting for card issuance.  ABTCs shall be valid for 3 years. Meanwhile, according to the previous regulations, APEC business travel cards which are valid in 3 years must depend on the remaining time of the passport)

If a person requesting for re-issuance of ABTC due to expiration and agency, enterprise, where such person is working, has a written confirmation that there is no change of title and job position in comparison with previous time of request for