Legal Document Updates in English (11/2020)

FROM APRIL 17, ASSESSMENT FEE FOR GRANT
OF THE SOLAR POWER PLANT’S OPERATING LICENSE IS UP TO VND 28.8 MILLION
 

On March 03, 2020, the Ministry of Finance promulgates the Circular No. 12/2020/TT-BTC on amending and supplementing Section II, Part A of the Schedule of fees issued together with the Circular No. 167/2016/TT-BTC dated October 26, 2016 of the Minister of Finance on providing for rate, collection, payment, management and use of the assessment fees for the grant of the electricity operating license.

Accordingly, the Ministry of Finance changes the assessment fees for grant of electricity operating license by central-government authority. To be specific:

Firstly, the assessment fee for grant of operating license for hydro-power plant, wind power plant and solar power plant construction with installed capacity of not exceeding 10 MW; installed capacity of at least 10 MW but not exceeding

30 MW; installed capacity of at least 30 MW but not exceeding 100 MW; installed capacity of at least 100 MW but not exceeding 300 MW and installed capacity of at least 300 MW is VND 10.6 million, VND 15 million, VND 18 million, VND 24.5 million and VND 28.8 million, respectively (the previous provisions only stipulates the fee rates for hydro-power plants construction).

Besides, the assessment fee for grant of operating license for thermal power plant construction (coal, gas, oil, biomass and solid waste) with installed capacity of not exceeding 50 MW; installed capacity of at least 50 MW but not exceeding 100 MW and installed capacity of at least 100 MW is VND 17.8 million, VND 21.9 million and VND 28.8 million, respectively.

This Circular takes effect on April 17, 2020.

MAXIMUM INTEREST OF CALL RATE
 APPLICABLE TO VND DEPOSITS OF PEOPLES CREDIT FUND IS 6,5% PER ANNUM
 

On March 16, 2020, the State Bank of Vietnam issues the Decision No. 420/QD-NHNN on maximum interest of call rate applicable to VND deposits at credit institutions, foreign bank branches for borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in the Decree 39/2016/TT-NHNN dated December 12, 2016.

Accordingly, credit institutions, foreign bank branches (except for people’s credit fund and micro financial institution) shall apply the maximum interest of call rate

applicable to VND deposits of 5.5 % per annum. Peoples credit fund and micro financial institution shall apply the maximum interest of call rate applicable to VND deposits of 6,5% per annum.

The interest rate applied to credit contracts, loan agreement documents March 17, 2020 shall continue to be implemented under the signed credit contracts and loan agreements in accordance with the law at the time of contract signing.

This Circular takes effect on March 17, 2020.

TO SUPPLEMENTS CASES OF REFUSAL
THE APPLICATION FOR EXAMINING EXPORTED AND IMPORTED GOODS
 

On March 03, 2020, the Minister of Finance promulgates the Circular No. 13/2020/TT-BTC on amending and supplementing a number of Articles of the Circular No. 13/2015/TT-BTC dated January 30, 2015 on defining inspection, supervision, temporarily suspension of customs procedures for exported and imported goods that are subjects of intellectual property right; control of counterfeit goods and goods infringing intellectual property rights.

Accordingly, the Ministry supplements cases of refusal the application for examining exported and imported goods which required to protection of intellectual property rights from organization and individual. To be specific: The customs agency may refuse to receive the application if the

supplementing dossier is submitted later than 10 working days from the issuing date of the supplementation notice.

In addition to 03 cases of suspend the application of inspection and supervision as the former regulations, this Circular also supplement the case that: The customs agency has the basis to determine that documents in the inspection and supervision request dossier are expired or fake. Besides, in contrary with the former regulation, the requester of temporary suspension of customs procedures may require to extend the duration of temporary suspension of customs procedures (if having reasonable explanation), with the conditions of submit the additional guarantee money or documents.

This Circular takes effect on April 20, 2020.

FROM MARCH 16, RECALLED DRUGS
OF UNKNOWN ORIGIN SHALL BE DESTROYED
 

On January 22, 2020, the Minister of Health issues the Circular No. 03/2020/TT-BYT on amending and supplementing a number of Article of the Circular No. 11/2018/TT-BYT dated May 04, 2018 of the Minister of health on the quality of drugs and drug materials.

Accordingly, this Circular supplements the case of destruction of recalled drug, such as: Counterfeit drugs, smuggled drugs, drugs of unknown origin, expired drugs, drugs containing banned substances, drugs manufactured from materials do not meet quality standards, drugs subject to destruction as prescribed in the Decree on sanction of administrative violations in health sector, drug samples which have the duration of storage expired.

In addition, the Ministry of Health (the Drug Administration of Vietnam) shall assign testing establishment satisfies standard of Good Laboratory Practices (GLP) to carry out the drug testing, including:

Firstly, the service establishment of testing of drugs and drug materials which possesses the Certificate of eligibility for pharmacy business with the scope in testing of drugs.

Secondly, the drug testing establishment which satisfies the GLP affiliated to the Stringent Regulatory Authorities (SRA - Stringent Regulatory Authorities) or be assigned by this authority to carry out the testing of drugs and drug materials to serve the operation of drug quality management...

This Circular takes effect on March 16, 2020.

VIETNAMESE STUDENT IN INTERNATIONAL SCHOOL
 MUST STUDY VIETNAMESE LANGUAGE AT LEAST 70 MINUTES/WEEK
 

On March 18, 2020, the Ministry of Education and Training issues the Circular No. 04/2020/TT-BGDDT on detailing a number of Articles of the Decree No. 86/2018/ND-CP on foreign cooperation and investment in education.

Accordingly, pupils being Vietnamese citizens studying foreign educational programs in foreign-invested preschool or general education institutions must study Vietnamese language development education contents, Vietnamese language programs and Vietnamese curriculum. To be specific:

Firstly, for children at preschool education institutions, studying the educational contents of Vietnamese language

development at least 02 times per week; each time from 25 - 35 minutes.

Secondly, for children in primary education institutions, studying the contents of Vietnamese language programs and the Vietnamese curriculum at least 140 minutes per week, in all primary grades and at least 70 minutes per week, from the fourth grade to fifth grade, respectively.

Thirdly, for middle school and high school students, studying contents of the Vietnamese curriculum at least 90 minutes per week, in all grades of middle school and high school.

FROM MAY 02, PERSON BUYING AUCTIONED PROPERTY
MUST MAKE A PAYMENT WITHIN 30 DAYS
 

This new provision is stipulated by the Government in the Decree No. 33/2020/ND-CP dated March 17, 2020 on amending and supplementing a number of Articles of the Decree No. 62/2015/ND-CP on detailing and guiding the implementation of a number of Articles of the Law on Enforcement of Civil Judgments.

Specifically, the successful bidder shall transfer money to the account of the civil judgment enforcement authority within 30 days from the wining date and must not extend it. This new provision has doubled the time for buyers of auctioned property to be able to prepare money, because the Decree No. 62/2015/ND-CP only allows buyers to pay within 15 days from the wining date.

Besides, the Government also supplements provisions on the exit of the judgment debtor. Accordingly, the head of a civil judgment enforcement authority shall make a decision on the temporary suspension of exit and send to the immigration management agency in one of the following cases:

Firstly, having request of the judgment creditor.

Secondly, there are grounds to show that the exit affects the lawful rights and interests of the State, organizations and individuals or to ensure the judgment enforcement.

TO EXEMPT PRICE OF 06 SERVICES
 IN THE SECURITIES SECTOR UNTIL AUGUST 31, 2020
 

On March 18, 2020, the Ministry of Finance issues the Circular No. 14/2020/TT-BTC on amend and supplement a number of Articles of the Circular No. 127/2018/TT-BTC on prescribing prices of services in the field of securities applicable to the Stock Exchanges and Vietnam Securities Depository to support relevant organizations and individuals affected by the Covid-19 epidemic.

Accordingly, the Ministry of Finance exempts the following types of service prices: Service listing for the first time and changing listing registration service for shares, corporate bonds, investment fund certificates, debt instruments and covered warrants; Initial connection service; Initial securities registration service; Additional securities registration service; Services of borrowing and lending securities via VSD’s system; Services of registration as trading member in derivatives and registration as clearing members.

In additional, the Ministry of Finance also reduces the prices from 10% - 50% for 09 services, To be specific: To reduce 10% for transaction service rendered in underlying securities market, derivatives market and securities depository services; reduce from 15% - 20% for services of positions management and margins management in derivatives market; reduce from 30% - 50% for services of listing management for covered warrants, securities transfer and corporate actions, service of auction and competitive offering.

This Circular takes effect from March 19, 2020 until August 31, 2020. After August 31, 2020, the prices of the above-mentioned services shall comply with the previous provisions of the Circular No. 127/2018/TT-BTC.

TO SUSPEND THE ISSUANCE OF WORK PERMITS
 TO FOREIGN WORKERS FROM COVID-19 AFFECTED AREAS
 

On March 10, 2020, the Government issues the Resolution No. 28/NQ-CP on the Government’s regular meeting on February 2020.

Accordingly, in this meeting, the Government requests the Ministry of Labor, Invalids and Social Affairs to temporarily suspend the issuance of new work permits to foreign workers from COVID-19 afflicted countries and territories. Concurrently, provide specific plans and solutions to timely support Vietnamese workers working abroad to prevent and control COVID-19. Besides, the Ministry also is assigned the tasks to instruct businesses to address workers’ rights

in case of demand shortage, business halt or firing due to COVID-19’s impact.

In addition, the Government also assigns the State Bank to instruct credit institutions to restructure loan repayment terms, exempt or reduce interest rates, maintain debt groups... for borrowers who were in difficulties due to COVID-19 outbreak. On the other hand, the State Bank needs to stabilize interest rates, exchange rates, gold and foreign exchange markets, as well as directing credit institutions to continue balancing capital sources, reducing lending rates…

FROM APRIL 25, ELECTRICITY PRICES
APPLICABLE TO COMBINED HEAT-POWER PROJECTS RAISE UP TO VND 1,634/KWH
 

On March 05, 2020, the Prime Minister promulgates the Decision No. 08/2020/QD-TTg on amending and supplementing a number of Articles of the Prime Minister’s Decision No. 24/2014/QD-TTg of March 24, 2014, on support mechanisms for development of biomass power projects in Vietnam.

Accordingly, electricity prices applicable to biomass power projects shall be amended as follow:

For combined heat-power projects: The electricity purchase price bracket at an electricity delivery and receipt point is VND 1,634/kWh, roughly 7.03 US cents/1 kWh, according to the exchange rate between Vietnam dong and US dollar announced by the State Bank of Vietnam on February 21, 2020. (This price in former regulation is VND 1.220/kWh, not yet including VAT, roughly 5.03 US cents/1 kWh).
 

In addition, for projects other than combined heat-power projects: The electricity purchase price bracket at an electricity delivery and receipt point is VND 1,968/kWh, roughly 8.47 US cents/1 kWh, according to the exchange rate between Vietnam dong and US dollar announced by the State Bank of Vietnam on February 21, 2020.

Besides, this Decision also annul a number of Articles on incentives and supports for biomass power projects not connect to the grid such as: Incentives on investment capital and taxes; Incentives on land use...

This Decision takes effect on April 25, 2020.