Legal Document Updates in English (11/2021)

CRITERIA FOR IDENTIFYING HI-TECH ENTERPRISES

On March 16, 2021, the Prime Minister issues the Decision No. 10/2021/QD-TTg prescribing criteria for identifying hi-tech enterprises.

Accordingly, hi-tech enterprises must satisfy the criteria prescribed at Points a and b, Clause 1, Article 18 of the Law on High Technologies No. 21/2008/QH12 which is amended and supplemented by Article 75 of the Investment Law No. 67/2014/QH13 and Clause 3, Article 76 of the Law on Investment No. 61/2020/QH14, and the following 03 specific criteria:

Firstly, the revenue from hi-tech products must account for at least 70% of the enterprise’s total annual net revenue;

Secondly, proportion of the enterprise’s total expenses for research and development activities per total net revenue value minus input value as follows: For enterprises with a total capital of VND 6,000 billion or more and 300 employees or more: at least 0.5%, etc.;

Thirdly, portion of the number of research and development staff members holding a degree of associate or higher of the enterprise per the enterprise’s total number of workers as follows: For enterprises with a total capital of VND 6,000 billion or more and 300 employees or more: at least 1%, etc.

This Decision takes effect on April 30, 2021.

CUSTOMS FEE FOR GRANT OF ATA CARNETS IS VND 1 MILLION/CARNET

On February 18, 2021, the Ministry of Finance issues the Circular No. 14/2021/TT-BTC prescribing the rates and collection, remittance, management and use of customs charges and fees for goods and means of transport in transit.

Specifically, the customs fee rate for grant and re-grant of temporary admission carnets (ATA carnets) is VND 1,000,000/carnet and VND 500,000/carnet, respectively. For other charges, the rates are still the same. To be specific the fee rate for goods in transit is VND 200,000/declaration form; charge rate for inspection, supervision and suspension of customs procedures for imported or exported goods with signs of infringing upon

intellectual property rights is VND 200,000/01 application; etc.

Besides, subjects entitled to charge exemption include: Goods provided as humanitarian aid or non-refundable aid; Imported or exported goods sent via express mail service with a value of VND 1,000,000 or less, or imported or exported goods sent via express mail service with a payable tax amount of less than VND 100,000; Goods purchased or exchanged by border residents within the prescribed limits; etc.

The Vietnam Chamber of Commerce and Industry shall collect customs charges for grant of ATA carnets.

This Circular takes effect on April 05, 2021.

PROCEDURES FOR APPROVAL OF
THE IMPORT AND EXPORT OF FOREIGN-CURRENCY CASH

On December 14, 2020, the State Bank of Vietnam promulgates the Circular No. 17/2020/TT-NHNN amending and supplementing a number of articles of the Circular No. 33/2013/TT-NHNN dated December 26, 2013 of the Governor of the State Bank of Vietnam guiding procedures for approval of the import and export of foreign-currency cash of licensed banks.

Accordingly, the State Bank of Vietnam details order, procedures for approval of the import, export of foreign-currency cash as follows:

Upon need for import, export of foreign-currency cash, the licensed bank shall make and send 01 dossier as prescribed to the State Bank - Hanoi Branch or the State Bank - Ho Chi Minh City Branch.

Within 02 working days from the date of receiving a complete and valid dossier as prescribed, the State Bank - Hanoi Branch or the State Bank - Ho Chi Minh City Branch shall consider and approve the import, export of foreign-currency cash of the licensed bank, using the Form in this Circular and send it to the licensed bank according to regulations.

In case the dossier is not complete and valid, the State Bank - Hanoi Branch or the State Bank - Ho Chi Minh City Branch shall notify on the Vietnam National Single-Window portal or send a notice to the licensed bank, clearly stating reasons. 

This Circular takes effect on February 01, 2021.

TO INCREASE THE MAXIMUM FINE IN 10 FIELDS FROM 2022

On November 13, 2020, the National Assembly issues the Law No. 67/2020/QH14 Amending and Supplementing a Number of Articles of the Law on Handling of Administrative Violations.

In accordance with this Law, the maximum fine in 10 fields of state management prescribed in the Law Amending and Supplementing a Number of Articles of the Law on Handling of Administrative Violations shall increase. Such fields include road transport; social evil prevention and control; cipher; management and protection of national borders; education; electricity; protection of consumer interests; hydraulic work; press; and real estate business.

Besides, the Law provides additional provisions on the maximum fine for several fields such as belief; external affairs; rescue and salvage; cyber security; cyberinformation security; state audit; obstructing procedural activities.

The Law also amends and supplements provisions on postponement of execution of decisions on imposition of fines and fine reduction or exemption specified in Articles 76 and 77 of the Law on Handling of Administrative Violations in the direction that organizations may be entitled to postponement of execution of decisions on imposition of fines and fine reduction for timely removing difficulties for enterprises/organizations encountering an economic difficulty due to a natural disaster or fire (Clauses 37 and 38 of the Law No. 67/2020/QH14).

Several titles competent to handling administrative violations also are additionally provided, including Fisheries Resources Surveillance Force (Article 43a); National Competition Committee (Article 45a); State Audit Office of Vietnam (Article 48a), etc.

This Law takes effect on January 01, 2022.

TO IMPLEMENT SOLUTIONS FOR SUPPORTING PERSONS AFFECTED BY COVID-19

This content is prescribed by the Government in the Resolution No. 19/NQ-CP dated February 10, 2021 on the Government’s regular meeting in January 2021.

The Government requests to temporarily halt unnecessary festivals or crowded events; strictly implement the mandatory health declaration for people from infected areas and promote universal health reporting; scrutinize cases returning from epidemic areas; expand testing for early detection of infection cases to quickly confine and stamp out epidemic; mandate mask-wearing in public spaces; and avoid gatherings.

In addition, the Government also requests to implement solutions to bolster economic growth, striving to make Vietnam one of the centers of production and application of high technologies in the region and the world; actively review solutions to administer fiscal and monetary policies to propose to reduce, extend tax payment time limits, restructure debts, exempt or reduce interest rates, and support enterprises and customers affected by Covid-19.

Concurrently, consider to extend the implementation and disbursement period of the budget capital investment plan in 2019 to December 31, 2021, etc.