Legal Document Updates in English (15/2011)

PASSENGER’S INFORMATION BEFORE ENTERING
INTO THE BORDER GATE BY AIR TRAFFIC
 

On April 09, 2011, the Government issued the Decree No. 27/2011/ND-CP on supplying, development, handling, usage of passenger’s information before entering into the border gate of Vietnam by air traffic.

Advance Information of Passenger (abbreviated as API/Advance Passenger Information) means information on flights, passengers and cabin crew which are provided by the airlines or  private flight operators under the form of computer data (hereinafter collectively called as API data) for the Vietnam competent agencies before landing at an international airport of Vietnam.

API data must be supplied to competent agencies of Vietnam by the airlines or private flight operator’s right the time of conducting procedures for passengers and cabin crew boarding to fly to an international airport of Vietnam. API data which is supplied to the Airport Authority of international aerial port of Vietnam according to regime of 24/7 information.

Vietnam agencies that are permitted for development, handling, usage of API information, data, include: Civil Aviation Administration of Vietnam; Airport Authority

of international aerial port (directly under The Ministry of Transport), Immigration management Department and The Offices of public security at international border gate (directly under The Ministry of Public Security);  Management Supervision Department; Anti-smuggling Investigation Department of General Customs Department and Customs Branches of international airport  (directly under the Ministry of Finance).

As in this Decree, The development, handling, usage of API information, data according to provisions of this Decree must comply with the following principles: only using API information, data for purpose of serving state’s management task on aviation safety and security; political security, social order and safety, prevent smuggle and trade fraud; ensuring keeping in secret for business figure of the airlines or private flight operators and for personal details of passengers and cabin crew; do not affect the above mentioned airlines’ business and private flight operators; do not transfer API information, data to other agencies, and organizations except the cases of having consent of the airlines and private flight operators who produced information.

AREAS ENCOURAGED TO INVEST IN THE FORM OF
BOT, BTO AND BT
 

On April 05, 2011, the Government issued the Decree No. 24/2011/ND-CP amending a number of articles of the November 27, 2009 Decree No.108/2009/ND-CP on investment in the form of Build-Operate-Transfer contract, Build-Transfer-Operate contract, Build-Transfer contract.

One of the most prominent amends is that the Government encourages the implementation of projects of new infrastructure works building, and operation, management or projects of current works improvement, expansion, modernization, and operation, management in Infrastructure works of heath service, education, training, career training, culture, sport and offices of State agencies;

Besides the contents are made according to provision of laws on construction, the feasibility study reports of BOT and BTO projects must include the following contents: analysis of the necessity and advantages of implementation of the project

 in the form of BOT, BTO or BT contracts as compared to other forms of investment; determination of goods, services and prices, charges expected to be collected from the operation of the works; determination of duration of construction, exploiting and methods of the project works business, management operation; determination of conditions, and methods of transfer and receipt of the works; proposed application of investment incentives and supports form and government guarantee (if any).

Before the approval of feasibility study reports referred to provisions in point b clause 4 of this Article, Ministries, branches, Provincial-level People's Committees submit to Prime Minister for consideration, decision of government guarantee for projects or using central state budget for supporting the implementation of projects.

GOVERNMENT GUARANTEE MUST NOT EXCEED 1.5%/YEAR
 

Based on the appraisal of financial plans of programs or projects and enterprises" financial situation, the Ministry of Finance shall set specific charge rates for each program or project depending on its risk level, which, however, must not exceed 1.5%/year of the balance of the guaranteed debt. This is one of the content on provision and management of government guarantee in the Decree No. 15/2011/ND-CP of the Government.

Government guarantee is the guarantee of the highest legality in Vietnam. A government guarantee commitment shall be made in the form of a letter of guarantee, a guarantee contract or a guarantee decision (below collectively referred to as letter of guarantee); the Government provides only guarantee, not re-guarantee.

The guarantee level must not exceed 80% of the total investment of a program or project, which includes all expenses related to the loan.

 After receiving a complete and valid guarantee application dossier from the borrower or the bond issuer under regulation, the Ministry of Finance shall appraise the financial plan and guarantee application dossier in terms of objects and type of the program or project, the financial plan of the program or project using the loan or bond capital; for a key project or work or an urgent major project of special significance to national socio-economic development for which the investment policy has been decided by the National Assembly or the Prime Minister; or a commercial loan accompanied with a non­refundable aid or an ODA loan to constitute a funding source as syndicate credit (project already designated according to accompanying funding source), the Ministry of Finance shall propose the Prime Minister to provide guarantee based on the financial plan of the approved program or project.

SAVE MORE OF 10% EXPENDITURES AND REDUCE PUBLIC INVESTMENT
 

The Government issued the Resolution No. 77/NQ-CP dated April 03, 2011 on the Government’s Regular Meeting - March 2011 focusing on Socio-Economic situation of March and quarter I, 2011 and the implementation situation of Resolution No.11/NQ-CP on difficulty subsidy policy for low-income objects, poor households;

Government praises and appreciates efforts and determination of the levels and branches, enterprise community and the whole people agreed to implement comprehensively and effectively Resolution No.02/NQ-CP; and Resolution No. 11/NQ-CP on main solutions focusing on inflation domination inflation control, macroeconomic stability, ensuring social welfare.

The State Bank of Vietnam continues to run actively, flexibly and rationally tools of monetary policy, including interest rates; step by step reduces interest rates plan; restrict and clear of usage gold as a means of payment; clears illegal foreign currency businesses,

The Prime Minister requires to direct the application of measures on export promotion and encouragement, import restriction; announces specific the number of saving money when save more of 10% expenditures; reduces public investment, non-urgent and inefficient constructions. It is known that the State Bank of Vietnam requires credit institutions to adjust business plan and credit structure in order to gather capital in developing business; agriculture, export and small and medium enterprises.

EXTENSION TIME IS 01 YEAR OF PAYING
ENTERPRISE INCOME TAX FOR SMES
 

On April 06, 2011, the Prime Minister issued the Decision No. 21/2011/QD-TTg on extending of paying enterprise income tax of the small, medium-sized enterprises aiming at unfastening difficulties, contributing to enhance development of 2011 economic.

Accordingly, the Prime Minister agrees to extend time for paying tax for 1 year since the deadline of paying tax provided by the Law on Tax Management for the Small and Medium sized Enterprises’ amount of income tax which they must to pay in 2011.

SMEs as provided in clause 1 of this Article are not extended the deadline for paying tax regard to the amount of enterprise income tax from operations of real estate business, finance, banking, insurance, stocks, lotteries, from services business which are cases of special consumption tax and income from business goods which are not encouraged to import under laws.

Also according to this Decree, The Small and Medium sized Enterprises (SMEs) as provided in this clause are the enterprises satisfy criterion on capital or workforce

under provisions in clause 1 Article 3 of the Decree June 30, 2009 No.56/2009/ND-CP of the Government on support of SMEs development, except of level 1 enterprises, special level enterprises, belonging to economic groups; enterprises are companies operated under model of subsidiary-parent company in which company is not the SME and holding over 50% of the subsidiary company’s ownership capital.

Amount of extended enterprise income tax is the amount of quarterly provisional calculated tax, the amount of tax in the 2011 final statement, including the amount of 2010 tax forwarded to pay in 2011 under regulations of laws on enterprise income tax. Extended deadline for tax paying for the amount of provisional calculated paying tax of quarter I year 2011 is not later than the April 30, 2012; quarter II year 2011 is not later than July 30, 2012; quarter III year 2011 is not later than October 30, 2012; quarter IV year 2011 is not later than March 31, 2013.

This Decision takes effect since the signing date.