Legal Document Updates in English (12/2013)

FROM APRIL 01, OLD CAR’S REGISTRATION FEE IS REDUCED TO 2%
 

On March 25, 2013, the Government issued the Decree No. 23/2013/ND-CP dated March 25, 2013 amending, supplementing some articles of the Decree No. 45/2011/ND-CP dated June 17, 2011 of the Government on registration fee.

This is considered as a Government’s action in order to implement the Resolution No. 02/NQ-CP dated January 07, 2013 on removing difficulties for business and production as well as support markets. Accordingly, automobiles, trailers or semi-trailers pulled by automobiles: 2%. Particularly, passenger cars of under 10 seats (including driver) shall pay registration fee at the first time with the level of 10%. In the case of being necessary to apply higher registration fee level in order to be suitable with the local realities of each region, People’s Councils of provinces

and central-affiliated cities shall decide to increase but not exceed 50% of general regulation’s level. Passenger cars of under 10 seats (including driver) shall pay registration fee at the second time with the level of 2% and this fee is applied in over the country.

Also in accordance with this Decree, when paying owed registration fee, households and individuals shall pay registration fee amounts calculated according to land prices set by provincial-level People’s Committees at the time of determining payable land use levies.

MUST MAKE INVESTIGATION BEFORE TAX INSPECTION
IN CUSTOMS SECTOR
 

On March 04, 2013, the General Directorate of Customs signed the Decision No. 694/QD-TCHQ promulgating the regulations on tax inspection in Customs Sector.

Before issuing the decision of inspection, in necessary cases, based on requirements of the inspection, the head of customs agency decides the survey and understanding the situation for agencies, organizations and individuals being taxpayers. People who are assigned the task of making survey have the responsibility to summarize, analyze the collected information; reporting to the person who assigns the task; making survey can be done at the Customs Agency or at the head office of taxpayer. Making survey and understanding the situation to recommend the contents that need inspecting should be implemented in accordance with the regulations of the Government Inspectorate and

other regulations on Inspection Law. If there is any basis to prove that tax payer declares insufficiently for the basis to calculate tax. In the course of making survey, collecting, analyzing and processing information, it shall request the taxpayer to explain and prove the tax calculation and declaration before issuing the tax inspection decision.

 Based on the report of inspection result, explanation of the subject to be inspected (if any), within 15 days since the day of receiving the report of inspection result, the inspection decision issuer must make the inspection conclusion; except the case the contents of inspection conclusion are pending to receive the specialized conclusions from relevant agencies, organizations.

DISCOUNT REFINANCING INTEREST RATE TO 8.0% PER ANNUM
 

On March 25, 2013, the Governor of the State Bank of Vietnam signed the Decision No. 643/QD-NHNN dated March 25, 2013 on  refinancing interest rate, rediscount interest rate and interest rate applicable to overnight loan in the inter-bank electronic payment and applicable to loan for making up capital deficit in the clearing payment of State Bank of Vietnam.
Accordingly, Interest rate of refinancing is discounted to 8.0% per annum and interest rate of rediscount is discounted to 6.0% per annum. Similarly, Overnight interest

rate in inter-bank electronic payment and loan for making up capital deficit in clearing payment of the State Bank of Vietnam for bank is 9.0% per annum.

All above interest rate is discounted by 1.0% per annum compared with previous regulations.

This Decision takes effect on March 26, 2013 and replaces the Decision No. 2646/QD-NHNN dated December 21, 2012.

REDUCE SHORT-TERM LOAN’S MAXIMUM INTEREST RATES TO 11%
 

On March 25, 2013, the State Bank of Vietnam issued the Circular No. 09/2013/TT-NHNN dated March 25, 2013 promulgating the short-term loan’s maximum interest rates in Vietnam dong for credit institutions and foreign bank’s branches to borrowers so as to satisfy the capital demand for serving some economic sectors and industries.

Accordingly, from March 26, 2013, the State Bank of Vietnam only allows Short-term loan’s maximum interest rate in Vietnam dong (VND) issued by credit institutions and foreign bank’s branches is 11% per annum; People’s Credit Fund and Microfinance Organization shall impose the short term loan’s maximum interest rate in VND of 12% per annum (decreased by 1% compared with previous regulations).

DOUBLE SUPPORT OF PLANT VARIETIES DAMAGED
BY NATURAL DISASTERS, EPIDEMICS
 

The Ministry of Finance issued the Circular No. 33/2013/TT-BTC dated March 21, 2013 amending, supplementing Article 2 of the Circular No. 187/2010/TT-BTC dated November 22, 2010 of the Ministry of Finance promulgating on mechanism, policies of support of plant varieties, livestock, fisheries for production restoration of areas damaged by natural disasters, epidemic.

Accordingly, damaged area for transplantation over 70% shall be supported  VND 2,000,000 per hectare; damaged from 30 – 70%, support VND 1,000,000 per hectare; damaged area of rice seeds over 70% shall be supported VND 20,000,000 per hectare; damaged from 30 – 70%, support VND 10,000,000 per hectare; damaged area of cross-planted rice over 70%, shall be supported VND 3,000,000 per hectare; damaged from 30 – 70%, support VND 1,500,000 per hectare; damaged area of cross-planted rice’s seed over 70%, shall be supported VND 30,000,000 per hectare; damaged from 30 – 70%, support VND 15,000,000 per hectare; damaged area of corn and subsidiary crops over 70%, shall be supported  VND 2,000,000 per hectare; damaged from 30 – 70%, support VND 1,000,000  per hectare; area of industrial plants and old-time fruit trees is damaged over 70%, shall be supported VND 4,000,000 per hectare; damaged from 30 – 70%, support VND 2,000,000 per hectare. All these support levels shall be doubled compared previous regulations.

Also in accordance with this Circular, supports for raising livestock, domestic fowls shall be changed compared with previous regulations: support from VND 10,000 – VND 20,000 per domestic fowl; support VND 750,000 per pig; support VND 4,000,000 per buffalo, cow, and horse; support VND 2,000,000 per giraffe, deer, sheep, and goat.
Beside, support levels for maritime products and seafood is regulated in more details equivalent to each maritime products and seafood. In particular, farming area of traditional fish cultivation with the damage over 70%, shall be supported from VND 7,000,000 – 10,000,000 per hectare; damaged from 30 – 70% shall be supported from VND 3.000.000 – 7.000.000 per hectare; farming area of extensive farming shrimp with the damage over 70%, shall be supported from VND 4,000,000 – 6,000,000 per hectare; damaged from 30 – 70% shall be supported from VND 2.000.000 – 4.000.000 per hectare; farming area of intensive farming shrimp with the damage over 70%, shall be supported from VND 6,000,000 – 8,000,000 per hectare; damaged from 30 – 70% shall be supported from VND 4.000.000 – 6.000.000 per hectare and so on.
This Circular takes effect on the signing date. All support policies for plant varieties, livestock, fisheries for production restoration of areas damaged by natural disasters, dangerous epidemics shall be implemented on December 30, 2012.

IN 2020, BIDV’S ASSET IS VND 500,000 BILLION
 

This is the objective of the strategy on approving Vietnam Development Bank’s strategy on development to 2020 and vision to 2030 which has been approved by the Prime Minister in accordance with the Decision No. 369/QD-TTg dated February 28, 2013.

With the specific target that the credit growth rate in the period 2013 - 2020 shall be on average about 10% per year, the asset size of the Vietnam Development Bank (BIDV) in 2020 shall reach approximately VND 500,000 billion. The period after 2020, the credit growth is determined in accordance with the requirements of socio-economic development.

At the same time, BIDV must improve credit quality, especially the appraisal, disbursement, management of debt recovery; building of mechanism of bad debt classification consistent with the nature and operation of BIDV; building mechanism for risk provision and the measures for treatment of bad debt of program loan;

positively recovery of debt and risk treatment aiming to reduce the overall bad debt ratio under 7% by 2015, from 4%- 5% by 2020; bad debt ratio for the period 2020 to 2030 less than 3%.

BIDV focuses on the development investment credit and export credit operations of the state decided by the Government and the Prime Minister in each period. Focusing investment credit capital on the areas of social and economic infrastructure; auxiliary industries; rural agriculture; socialization in the area of education, health, environmental protection and green technology; clean energy and renewable energy. Determining the relationship between the equity and the total outstanding loan of investment credit and export credit of the State. On that basis, developing a roadmap to increase the charter capital of the bank accordingly (expected by 2020, reaching 10% of total outstanding loan of investment credit and export credit of the State equivalent to 20,000 billion dong by 2015 and 30.000 billion dong by 2020).

PROMULGATING CONDITIONS FOR TRANSFER COMMERCIAL HOUSE
TO PUBLIC SERVICE CONSTRUCTIONS
 

On March 08, 2013, the Ministry of Construction issued the Circular No. 02/2013/TT-BXD dated March 08, 2013 guiding the adjustment for apartment structure of commercial housing projects, urban area construction investment projects; and the transfer commercial housing apartments to social housing apartments or public service constructions.

According to this Circular, objectives allowed having adjustments for apartment structure, transfer commercial housing apartments to social housing apartments are commercial housing projects, urban construction investment projects approved by authorized agencies but failed to build or already built but the apartment structure or usage purposes are not suitable with market’s demands.

The adjustment of apartment structure, transfer of usage purposes of commercial housing into the commercial house or public service constructions are only made for the items of construction works and apartments (including high-rise and low-rise ones) that the investors have not signed

capital contribution contracts and trading contracts with customers. In case of having signed capital contribution contracts and trading contracts with customers, before adjustment of apartment structure and usage purposes, there must be a written consent of all customers who have signed contracts.

The commercial housing development projects and urban center construction investment projects with the size of 500 apartments or more, before the provincial-level People’s Committee makes a decision on allowing the adjustment of apartment structure or conversion of usage purposes must be agreed upon by the Ministry of Construction.

The projects with land use fee paid shall be refunded by the State or deducted from the financial obligations that the investor must pay the State basing on the re-calculation of land use fee.

MUST HAVE INTEGRAL INSTANCE FOR GROUND DIGITAL TELEVISION
TO TELEVISION SETS BEFORE APRIL, 2015
 

On March 18, 2013, the Ministry of Information and Communications issued the Circular No. 07/2013/TT-BTTTT promulgating the integral instance for ground digital television for television sets produced and imported to use in Vietnam.

Accordingly, the Ministry of Information and Communications requires that All types of television set using screen technology of LCD. PDP, LED, OLED and other next screen technologies that are produced and imported to use in Vietnam must integrate the function of collecting ground digital television with the standard DVB-

T2, MPEG-4 codification standards for images and sounds, suitable with National Technical Standards QCVN 63:2012/BTTTT in the following times: applicable to all television sets with the screen size of above 32 inch from April 01, 2014; applicable to all television sets with the screen size of under 32 inch from April 01, 2015. It is not compulsory for integrating ground television collection with the television using CRT screen technology produced and imported to use in Vietnam.

OPEN PILOT IMPLEMENTATION ON BAILIFFS IN 12-15 PROVINCES, CITIES
 

This is the content of the Decision No. 510/QD-TTg approving the Scheme “Take pilot implementation of institution on bailiffs continuously”.

Accordingly,  beside keeping on pilot implementation of institutions on bailiffs in Ho Chi Minh, maintain operation of bailiff offices that have been established and further establish several of bailiff offices in Ho Chi Minh, the Prime Minister decides to expand the pilot institutions on bailiffs in from 12 to 15 provinces and centrally-run cities.  Local definition to implement pilot expansion must base on conditions and such as: Ensuring the representative nature for regions in over the country, thereby the local region that expands pilot implementation must have provinces and centrally-run cities at different regions (the North, the Middle and the South); local regions with stable social and economic conditions; the number of accepted cases 

for settlement by Courts, civil judgment execution agencies; determination and readiness of agencies, organizations in local regions of pilot implementation.

The Minister of Justice is assigned to select local region for pilot implementation after obtaining unified agreements with the Supreme People’s Court, the Supreme People’s Procuracy and the Ministry of Finance.

Also in accordance with this Scheme, training and appointing bailiffs; establishing, registering operation for bailiff office in localities where have pilot implement of these institutions shall be implemented on Quarter I and II of 2013.