Legal Document Updates in English (13/2012)

BY THE END OF 2015, THE PERCENTAGE OF CASH IN TOTAL
INSTRUMENTS OF PAYMENT WILL BE BELOW 11
 

On December 27, 2012 the Prime Minister issued the Decision No. 2453/QD-TTg of December 27, 2011, approving the scheme on stepping up non-cash payment in Vietnam during 2011-2015.

Specific objectives are by the end of 2015, the percentage of cash in total instruments of payment will be below 11%; the number of people having access to payment services will significantly increase and the percentage of people with bank accounts will rise to 35-40% of the population. The Prime Minister instructed to synchronously implement many different solutions during 2011 – 2015.

Specifically, reviewing, amending and revising regulations on methods of disbursement in credit institutions’ loans to customers and transactions of equity contribution, capital transfer, stock and bond trading and transfer among enterprises and individuals in order to reduce cash payment transactions.

Promulgating regulations on responsibilities of payment and payment intermediary service providers and  payment service users; Promulgating regulations requiring via-bank payments for transactions of trading in real estates and valuable assets (cars, motorcycles, ships, boats, etc.); Connecting card payment systems nationwide and promoting the mutual card acceptance among card payment service providers…

The State Bank of Vietnam, ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision and report to the Prime Minister.

This Decision takes effect on December 27, 2011

CREDIT RISKS MUST BE REGULARLY AND CONSTANTLY IDENTIFIED

On December 29, 2011, the State Bank of Vietnam issued the Circular No. 44/2011/TT-NHNN providing for internal control system and internal auditing of credit institutions and foreign bank branches.

Accordingly, the State Bank of Vietnam required that risks that are likely to adversely impact the operation effectiveness and objectives of a credit institution or foreign bank branch must be regularly and constantly identified, measured and assessed in order to promptly detect and prevent risks and take appropriate measures for risk management.

A credit institution or foreign bank branch shall build its internal control system; regularly control the observance of laws and internal regulations; directly control operations in all areas at its head office, transaction bureaus, branches, representative offices, non-business units and subsidiary companies.

The Circular clearly stated that operation of the internal control system must be an integral part of day to- day activities of a credit institution or foreign bank branch. Internal control shall be designed, installed and

performed in all professional processes at all units and sections of a credit institution or foreign bank branch in many different forms.

The information and information technology system of a credit institution or foreign bank branch must be reasonably and safely supervised and safeguarded. There must be an independent backup management mechanism to promptly respond to contingencies and assure compliance with regulations on safety and confidentiality of the banking sector’s information technology system and regular and uninterrupted business operation of the credit institution or foreign bank branch.

This Circular takes effect on February 12, 2012 and the State Bank Governor’s Decision No. 36/2006/QD-NHNN of August 1, 2006 and Decision No. 37/2006/QD-NHNN of August 1, 2006 cease to be effective on.

 
GUIDELINES ON DISBURSEMENT AND FINANCIAL MECHANISM
FOR THE 4TH CREDIT LIMIT OF THE NORDIC INVESTMENT BANK
 

The Ministry of Finance issued the Circular No. 180/2011/TT-BTC dated December 12,2011on rates, collection, remittance, management and use of charges and fees in crop production and forest tree varieties.

Specifically, charge on DUS testing for seasonal plant varieties (short-term plants) is VND 8.3 million/variety; for annual crop varieties is VND 11 million; for perennial crop varieties is VND 24 million/variety; DUS testing by the author will be at the rate of 50% of testing charge rate.

VCV (value for cultivation and use) testing for seasonal plant varieties (rice, maize, peanut, soya) is VND 1.275 million / variety / crop/ point. Examination of G2 strain of short-term crop is VND 1.8 million/ strain. Examination of short-term crop field (crossbred) which is 5 hectares or less is VND 1.5 million/ point…

Under the Circular, fees on granting license for export or import of agricultural plant varieties or gene sources; certificate of prototypal plant or prototypal garden; license for fertilizer export or import; certificate of new forest tree variety; certificate of origin of seed batch are VND 100,000.

Fee on granting duplicate of plant variety protection title is VND 350,000. Fee on registration of contract on transfer of rights to protected plant varieties is VND 250,000.

This Circular takes effect on February 1, 2012 and replaces the Finance Minister's Decision No. 11/2008/QD-BTC of February 19, 2008 and Decision No. 482/QD-BTC of March 21, 2008.

 
CHARGE ON DUS TESTING FOR PERENNIAL CROP VARIETIES
IS VND 24 MILLION/VARIETY
 

On December 06, 2011 the Prime Minister issued the Decision No. 2195/QD-TTg of December 6, 2011, approving the Scheme on building and development of a microfinance system in Vietnam through 2020.

The objective of the scheme is to build and develop a safe and sustainable microfinance institution system targeted at the poor, low-income earners, and micro and small-sized enterprises, contributing to the exercise of the Party's and the State's undertaking on social security assurance and sustainable poverty reduction.

In order to achieve these above objectives, the Prime Minister required that all ministries, sectors and localities should implement 5 solutions, of which formulate the legal environment suitable to the

characteristics of microfinance activities such as improving legal documents guiding the implementation of the Law on Credit Institutions; promulgating appropriate policies to encourage microfinance development; adopting appropriate tax and charge policies to support microfinance development.

Besides, the Prime Minister also required raising the policy making and management capacity of State management agencies; disseminating and raising awareness about microfinance; creating the condition of capital sources for microfinance...

This Decision shall take effect on the date of its signing.

TO REDUCE 5% OF PREFERENTIAL IMPORT TARIFF FOR ACCESSORIES
 

On November 17, 2011, the Ministry of Finance issued the Circular No. 163/2011/TT-BTC of November 17, 2011, promulgating Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2012-2014 (applicable duty rates are referred to as AKFTA duty rates).

Under the Circular, from January 1 through December 31 of the year, beginning from 2012 to the end of 2014, for motor vehicle components and accessories in code from 87.01 to 87.05 such as safety belts, pipes and silencers, gearbox ... which are directly imported from a member country in ASEAN-Korea Free Trade Area, the preferential import tariff will be applied at the rate of 10 % which is reduced by 5%.

To be eligible for AKFTA duty rates, imports must fully meet the following conditions: being imported into  Vietnam from the following member countries of the ASEAN-Korea Free Trade; Satisfying the rules of origin of goods in the ASEAN-Korea Agreement on Trade in Goods, for goods subject to Rule 6 - AKFTA under the Ministry of Industry and Trade’s regulations…

This Circular takes effect on January 1, 2012, and replaces the Minister of Finance’s Circular No. 77/2010/TT-BTC of May 18, 2010, promulgating Vietnam’s Special Preferential Import Tariff to realize the ASEAN-Korea Free Trade Area during 2010-2011.

GUIDELINES ON FORMAT OF AND TECHNIQUES FOR PRESENTING LEGAL DOCUMENTS
 

The Ministry of Justice issued the Circular No. 25/2011/TT-BTP of December 27, 2011, on the format of and techniques for presenting legal documents of the Government, the Prime Minister, ministers and heads of ministerial-level agencies and joint legal documents.

Accordingly, depending on its scope of regulation, a document may be presented in parts, chapters, sections, articles, clauses and points. However, a part, chapter, section or article of a document must have a title which is a phrase showing the main content of that part, chapter, section or article.

The arrangement of provisions on the same issue in a part, chapter or section must adhere to the following principles: General provisions precede specific provisions; Substantive provisions precede procedural provisions; Provisions on rights and obligations precede provisions on sanction; Universal provisions precede particular provisions; Provisions on general cases precede provisions on exceptional cases.

The language used in documents is universal Vietnamese. Dialectal, archaic, colloquial and foreign words may not be used. A document must use written language with clear, simple and understandable expression; an abbreviation may only be used when necessary and explanation about that abbreviation is required at its first appearance. A document containing many abbreviations must have a separate article explaining all abbreviations used in that document.

This Circular takes effect on March 1, 2012 and replaces provisions on the format of and techniques for presenting legal documents of the Government, the Prime Minister, ministers, heads of ministerial-level agencies and joint legal documents under Joint Circular No. 55/2005/TTLT-BNV-VPCP of the Ministry of Home Affairs and the Government Office of May 6, 2005, guiding the format of and techniques for presenting documents.