Legal Document Updates in English (14/2021)

DEBT RESCHEDULING FOR CLIENTS
AFFECTED BY THE COVID-19 PANDEMIC UNTIL DECEMBER 31, 2021

On April 02, 2021, the State Bank of Vietnam issues the Circular No. 03/2021/TT-NHNN amending and supplementing a number of articles of the Circular No. 01/2020/TT-NHNN dated March 13, 2020 of the State Bank Governor of Vietnam on credit institutions and foreign bank branches carrying out debt rescheduling, giving exemption from or reduction of loan interests and charges, and maintaining classified loan groups in order to help their clients affected by the Covid-19 pandemic.

Accordingly, credit institutions and foreign bank branches shall conduct debt rescheduling debit balance of debts that fully meet the following conditions:

Firstly, arising before June 10, 2020, from lending and financial leasing activities;

Secondly, giving rise to obligations to repay loan principals and/or interests from January 23, 2020 to December 31, 2021.
 

LICENSED CREDIT INSTITUTIONS ARE NOT ALLOWED TO CHARGE
FOREIGN EXCHANGE TRANSACTION FEES

This content is prescribed in the Circular No. 02/2021/TT-NHNN on guiding forex transactions of licensed credit institutions in forex market dated March 31, 2021 of the State Bank of Vietnam.

Accordingly, types of foreign exchange transactions include: Spot foreign exchange transaction; Forward foreign exchange transaction; Foreign exchange swap transaction and foreign currency option transaction.

Licensed credit institutions are entitled to carry out the spot transactions and forward transactions with other organizations and individuals, and carry out spot transactions with non-residents.

TO PROVIDE ADDITIONAL CONDITIONS FOR ADJUSTMENT
OF UNIT PRICES AND CONTRACT PRICES

This is the noticeable provision prescribed in the Decree No. 50/2021/ND-CP dated April 01, 2021 of the Government amending and supplementing a number of articles of the Government’s Decree No. 37/2015/ND-CP of April 22, 2015, prescribing in detail construction contracts.

According to the new provision, if the actually completed work volume increases or decreases by more than 20% of the work volume stated in the contract and, at the same time, changes the contractual value by over 0.25% and changes the unit price of such work by over 1% or the contract does not state the unit price for the additional work volume, the parties shall agree on a new unit price for this work volume on the principle agreed in the contract to serve the payment.

If the actually completed work volume increases by more than 20% of the work volume stated in the contract, the new unit price may only be applied for the completed volume exceeding 120% of the volume stated in the contract.

If the actually completed work volume decreases by more than 20% of the work volume stated in the contract, the new unit price shall be applied for the actually completed work volume tested before acceptance.

Also, in accordance with the new provisions, contract price adjustment methods include a direct clearing method and a method of adjustment by the adjustment formula. Price indexes for adjustment of construction contract prices by the prescribed formula are construction price indexes.

This Decree takes effect on the date of its signing.

FORMS OF PERFORMING ACTS CONTRARY TO NATIONAL FINE TRADITIONS ARE PROHIBITED

The Decree No. 144/2020/ND-CP providing performing art activities is issued by the Government on December 14, 2020.

Accordingly, prohibitions in performing art activities include: To oppose the Socialist Republic of Vietnam State; To distort the history, independence, sovereignty and territorial integrity of the Socialist Republic of Vietnam; To incite violence, propagate aggressive wars, and show hatred among nations and people of various countries, adversely affecting foreign relations; To use costumes, languages, sounds, images, movements, modes of expression, or forms of performing acts which are contrary to national fine traditions and customs, etc.

REGULATIONS ON CHIP-BASED CITIZEN IDENTITY CARD FORM

The Ministry of Public Security issues the Circular No. 06/2021/TT-BCA regulating the form of the Citizen’s identity card on January 23, 2021.

Specifically, the front side of a card showing the following information: The National emblem of the Socialist Republic of Vietnam; photo of the card holder; Date of expiry; National name; Motto; The line “Citizen Identity Card”; Chip icon; QR code; No.; Full name; Date of birth; Sex; Nationality; Place of origin; Place of residence.