Legal Document Updates in English (13/2018)

FROM 2018, APPLY IMPORT DUTY RATES 0% WITH GOODS FROM KOREA
AND 9 ASEAN COUNTRIES

In order to implement the ASEAN-Korea Trade in Goods Agreement (AKFTA), on December 27, 2017, the Government issued Vietnam’s Special Preferential Import Tariff to implement the ASEAN-Korea Trade in Goods Agreement during 2018-2022 at the Decree No. 157/2017/ND-CP.

Accordingly, from January 01, 2018 to December 31, 2022, there are thousands of goods shall be applied special preferential import duty rates 0%. To be eligible for AKFTA duty rates, imports must fully satisfy the following conditions: Being imported into Vietnam from the member countries of the ASEAN-Korea Trade in Goods Agreement; Being specified in the Special Preferential Import Tariff promulgated together with this Decree; Being transported to Vietnam directly from an exporting country; Satisfying the rules of origin in the ASEAN-Korea Trade in Goods

PROMULGATE SPECIAL PREFERENTIAL IMPORT TARIFF WITH GOODS FROM KOREA

On December 26, 2017, the Government issued Decree No. 149/2017/ND-CP on Vietnam’s Special Preferential Import Tariff to implement the ASEAN - Korea Free Trade Agreement (VKFTA) during 2018 - 2022.

The Tariff includes special preferential import duty rates for many kind of goods in different periods: From January 1, 2018, through December 31, 2018; From January 1, 2019, through December 31, 2019; From January 1, 2020, through December 31, 2020; From January 1, 2021, through December 31, 2021; and From January 1, 2022, through December 31, 2022.

To be eligible for VKFTA duty rates, imports must fully satisfy the following conditions: Being specified in

STATE ENTERPRISES MUST COMPLY WITH LEGAL REGULATIONS
ON PROCUREMENT WHEN SHOPPING CARS

On March 08, 2018, the Government issued the Decree No. 32/2018/ND-CP on amending and supplementing a number of articles of the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investment in enterprises, use and management of capital and assets in enterprises.

Accordingly, with regard to investment in and shopping for external fixed assets for use (including means of transport used for business and service operations), such state enterprises must comply with legal regulations on procurement and other relevant laws.

Besides, State enterprises shall not be allowed to use capital assets and right to use the leased land to contribute

COLLECT THE LAND LEVY WHEN THE ADDITIONAL LAND AREA
AFTER RE-MEASUREMENT

This is the new content prescribed at the Circular No. 10/2018/TT-BTC on amending and supplementing a number of Articles of the Circular No. 76/2014/TT-BTC dated June 16, 2014 by Ministry of Finance providing guidance on the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014 on land levy.

In particular, collect the land levy when issuing the Certificate in case the land area after re-measurement is greater than the one specified in the Certificate proving the entitlement to use land granted to the land user as follows: if the land user has been granted the Certificate certifying the additional land area, the land user shall pay the land levy on the additional land area according to the policies and land price; if the Certificate is granted to certify the additional land area to the land user who has the document proving the entitlement to use land, the land user shall pay the land levy on the additional land area according to the

IN 2018, TO STRIVE TO ACHIEVE GDP GROWTH OF 6.7%

A number of criteria on social and economic in 2018 approved by the Government at the Resolution No. 01/NQ-CP dated January 01, 2018.

In particular, to strive to achieve the gross domestic product (GDP) growth of 6.7%, and control the average consumer price index (CPI) at around 4%; to increase inspections and examinations and report to competent authorities on plans to handle tax debts which cannot be recovered, thus reducing the tax debt rate to below 5% of the total state budget revenue; To ensure the import and export balance, strive to increase the total export value by 8%-10% over 2017; To strive to increase the total value of goods retail and consumption service by 10%....

On administrative reform, the Government emphasizes to strongly step up administrative reform; in 2018, to strive to reduce by 2.5% public non-business units;  reduce by 1.7%

ALLOW TO BUY CARS OF DIPLOMATIC AGENCIES

On March 01, 2018, the Prime Minister issued the Decision No. 10/2018/QD-TTg on amending a number of Articles of the Decision No. 53/2013/QD-TTg dated September 13, 2013 of the Prime Minister on temporary import, re-export, destruction, and transfer of motor vehicles and two-wheeled mopeds of entities enjoying diplomatic immunity and privileges in Vietnam.

BY 2020, THE TRANSPORT CAPACITY OF VIETNAMESE AIRLINES
IS SET TO REACH 64 MILLION PASSENGERS

The adjusted planning for development of air transport by 2020 and the orientation towards 2030 is approved by the Prime Minister at the Decision No. 236/QD-TTg dated February 23, 2018.

With the general targets that Vietnam’s air transport market is expected to be among the top 4 ASEAN countries in terms of transport volume. By 2020, the transport capacity of Vietnamese airlines by 2020 is set to reach 64 million passengers and the transport volume via the airports is expected to hit roughly 131 million passengers.

For the plan of airport network by 2020, there will be 23 airports, including 13 domestic airports and 10 international

COOPERATION IN TAKING ACTIONS AGAINST VIOLATIONS IN SCIENTIFIC RESEARCH
IN THE TERRITORIAL WATERS

In Decision No. 14/2018/QD-TTg dated March 12, 2018, the Prime Minister promulgated the Regulation on cooperation in permitting foreign entities to conduct scientific research in the territorial waters of Vietnam, inspecting, controlling and taking actions against violations thereof.

With regards to cooperation in getting opinions about applications for issuance, amendment or extension of decisions on permission for scientific research submitted by foreign entities that conduct scientific research in the territorial waters of Vietnam, the Ministry of Natural Resources and Environment shall send the request for opinions and the application for permission within a maximum period of 05 working days from the receipt of a

RECEIVES MANY INCENTIVES FOR INVESTING IN THE DA NANG HI-TECH PARK

The Decree No. 04/2018/ND-CP on incentive mechanisms and policies for the Da Nang Hi-Tech Park issued by the Government on January 04, 2018 and takes effect on February 20, 2018.

This Decree indicates that enterprises having investment projects in the Da Nang Hi-Tech Park receive many incentives policies on tax, land, Investment credit and other incentives…

In particular, enterprises implementing new investment projects in the Hi-Tech Park are entitled to the enterprise income tax rate of 10% for 15 years; new investment projects in the Hi-Tech Park each capitalized at VND 3 trillion or more are entitled to the preferential tax rate of 10% for 30 years; enterprises implementing new investment projects in the Hi-Tech Park are entitled to enterprise income tax exemption for 4 years and a 50% reduction of payable tax amounts for 9 subsequent years;

CAUSING DAMAGE TO CLAIM COMPENSATION
SHALL BE FINED UP TO VND 100 MILLION

Some penalties for administrative violations in insurance business and lottery business in Decree No. 98/2013/ND-CP are amended on March 21, 2018 by the Government in the Decree No. 48/2018/ND-CP.

This Decree prescribed: A fine of from VND 90 million to VND 100 million shall be imposed for these violations: Collaborating with beneficiary of insurance benefits to pay indemnities or insurance payout against the law; Causing damage to assets and health for the purpose of claiming insurance benefit unless otherwise prescribed by law; Forging documents, deliberately falsifying information to refuse indemnities or insurance payout upon occurrence of insured events… in which the appropriated amount of under VND 20 million or causing damage of under VND 50 million or not to a degree subject to criminal prosecution.