Legal Document Updates in English (19/2011)

TERMINATING THE ASK – ALLOW REGIME FOR MINERAL ACTIVITIES
 

On December 14, 2010, the Office of the President of the Socialist Republic of Vietnam held the press conference to announce the Law on Mineral No. 60/2010/QH12 passed on November 17, 2010, by the XII^th National Assembly of the Socialist Republic of Vietnam at its 8^th session and it takes effect on July 1, 2011.

There are many opinions that Law on Mineral will primarily terminate the ask – allow regime in the mineral activities via mineral auction. The auction will help the State to choose investors who have enough financial capacities, experience and science – technology in order to archive safety mining, efficiency and environmental protection.

According to regulations in this Law, auction of the mining right shall be conducted for mineral activity areas, except areas identified by competent state agencies as not subject to auction of the mining right (strategic mineral area; sensitive environmental area; national security and defense and so on). Areas with small-scale and scattered minerals are areas suitable for only small-scale mining which are identified on the basis of mineral prospection results during the period of conducting geological baseline surveys of minerals or mineral exploration results approved by competent state agencies.

Besides, terminating ask – allow regime in mineral activities also cause difficulties in protecting the safety of natural resources and managing natural resources especially in the condition that licenses on mineral activities are trading

complicatedly and causing many troubles in mineral management; It is impossible to prohibit transactions and transfers of licenses except for supplementing more strict regulations on transfer in the economic market conditions.

In particular, the Law regulates that transferees of the mineral exploration right must satisfy all the conditions for the grant of mineral exploration licenses under this Law. Transfer of the mineral exploration right must be approved by a state management agency competent to grant mineral exploration licenses. After obtaining such approval, transferees of the mineral exploration right may be granted new mineral exploration licenses.

At the same time, an organization or individual must have performed at least 50% of the cost estimate of the mineral exploration project to transfer the mineral exploration right; organizations and individuals licensed for mining that have completed capital construction work and put mines into operation may transfer the mining right; transferees of the mining right must satisfy all conditions for the grant of mining licenses; transfer of the mining right must be approved by a state management agency competent to grant mining licenses. If obtaining such approval, transferees of the mining right will be granted new mining licenses.

Law on Mineral includes 11 chapters, 86 Articles, within that supplements  completely 48 new articles and amends and supplements 36 Articles  of Mineral Law 1996 and Law on amending and supplementing some articles of Mineral Law No. 46/2005/QH11.

NOT ALLOWED TO CONDUCT PROMOTION WITH
TELECOMMUNICATIONS TARIFF UNDER SCALE
 

On April 06, 2011, the Government issued the Decree No. 25/2011/ND-CP detailing and guiding the implementation of a number of Articles of the Telecommunications Law, within that, the Government especially focuses on regulations on the promotion of telecommunication services and specialized telecommunication goods.

In particular, Telecommunication enterprises are not allowed to conduct promotion with purposes of unfair competition in the telecommunications market, dumping telecommunications service, specialized telecommunication goods; are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods with respect to telecommunication services, specialized telecommunication goods evaluated specifically by the State. Telecommunication enterprises are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods to below the minimum level of specialized telecommunication services, telecommunication goods that the State prescribes a price range or a minimum price.

The material value used for promotion for the unit of specialized telecommunication goods or services must not exceed 50% of the price of the units of specialized telecommunication goods or services promoted before promotion period except the cases: samples of specialized telecommunication goods to customer free of charge; specialized telecommunication goods to customer free of charge; specialized telecommunication goods accompanied by participation in promotions of chance;

As according to this Decree, enterprises investing in the telecommunication goods and services have to ensure the legal capital level. Enterprises applying for a license for establishing fixed telecommunication network without using wireless electric frequency bands. Establishment of networks within a region (from 15 to 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment 

commitment amount: At least 300 billion VND for first 3 years after being granted a license to develop telecommunication network in accordance with the license; establishing a nationwide network of (over 30 provinces and centrally-affiliated cities): Legal capital: 300 billion VND; investment commitment amount: At least 1,000 billion VND for the first 3 years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

Enterprises applying for a license for establishing ground mobile telecommunication networks with wireless electric frequency channel shall meet the conditions for legal capital and commitment amount for investment with legal capital: 20 billion VND; and at least 60 billion VND for the first three years to develop telecommunication networks with the scale and scope specified in the license. Enterprises applying for a license for establishing ground mobile telecommunication network without using terrestrial wireless electric frequency band (a virtual mobile telecommunication network) must have legal capital: 300 billion VND and at least 1,000 billion VND for the first three years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

This Decree takes effect as from June 1, 2011 and replaces Decree No. 160/2004/NĐ-CP dated September 3, 2004 by the Government and regulations on investment in telecommunications in Decree 121/2008/ND-CP of December 3, 2008 by the Government on investment activities in the field of post and telecommunications; telecommunications regulations in Decree 97/2009 / ND-CP on the management of Internet services, management of the content of information on the Internet.

GRANT RAILWAY SAFETY CERTIFICATES WITHIN 20 DAYS
 

On March 11, 2011, the Ministry of Transport issued the Circular No. 09/2011/TT-BGTVT amending and supplementing a number of articles concerning administrative procedures of the Regulation on railway enterprises required to possess safety certificates, and conditions, order and procedures for grant of safety certificates, promulgated together with the Transport Minister’s Decision No. 61/2007/QD-BGTVT of December 24, 2007.

Accordingly, Applicants for safety certificates shall submit dossiers by post or directly to Vietnam Railway Administration; Vietnam Railway Administration shall receive and examine dossiers. If the dossiers are incomplete, within 5 working days after receiving them, Vietnam Railway Administration shall notify such in writing to the applicants and guide them to complete the dossiers;

Based on the conditions for grant of safety certificates, Vietnam Railway

Administration shall grant safety certificates to the applicants within 20 days after receiving complete dossiers.

Safety certificates shall be re-granted to enterprises that have lost the certificates or have them temporarily withdrawn when enterprises can prove that they have remedied causes of accidents and taken all subsequent safety assurance measures; and satisfy all the conditions.

For re-grant of safety certificates, applicants shall submit dossiers by post or directly to Vietnam Railway Administration; procedure and order and time for dossiers are similar to the new grant for safety certificates.

AUTOMOBILE TACHOGRAPH CAN RECORD THE SPEED
 

On March 08, 2011, the Ministry of Transport issued the Decision No. 08/2011/TT-BGTVT on  promulgation the national technical regulation with the Code QCVN 31:2011/BGTVT on automobile tachograph.

The tachograph conclusive hardware (microprocessor, record part, archive part, transmit part, dial indicator of real time, GPS global position signal receipt part, drive information collecting part, connection gate, equipment behavior information part ) and software analyzing data. The capacity of tachograph’s memory must ensure for recording and archiving minimum data in related to the automobile in the minimum time is 30 days.

Analyzing data Software of tachograph must satisfy the minimum requirements: being enable to search, access, archive, make table, data chart, … of minimum information in relation to the process of automobile operation; having interfaces and results presented in Vietnamese (marked or no marked) and in English; being enabled to install of common management systems; for identity information of automobile and driver: (VNI, license plate, name of driver and license permission …), which analyzing data software system may access without amending or deleting.

The tachograph must have function of continuous record, archive and transmit through the network to computer of enterprise for saving as provisions, regard to minimum information of the following process of automobile extraction, operation information of the automobile and driver; automobile trip; the operation speed of automobile; the number of time and time of stopping or parking; the number of time and time of opening and closing automobile’s doors; the working time of driver.

When beginning operation, the tachograph must conduct check itself and have seal to inform of the operation behavior of the equipment. When operation, all of data which are related to time of archiving must be synchronous with the GPS time and adjust pursuant to the hour of Vietnam. When loss signal of GPS, must automatic switch over using time-clock control of tachograph which has been synchronous with time of GPS before that;

Tachographs which are produced, assembled, traded in home and import, must announced valid regulation-conformity in accordance with provisions of this Regulation.

TRACK VEHICLES ARE ALLOWED TO LIFT LOAD
 

The Ministry of Transport issued the Circular No. 03/2011/TT-BGTVT dated February 22, 2011 on amending and supplementing the Transport Ministry's Circular No. 07/2010/TT-BGTVT of February 11, 2010, providing for load and limit size of roads; operation of overloaded, oversized and track vehicles on roads; transportation of extra-long and extra-heavy cargoes; and cargo loading limits of road vehicles for road transport.

For tractor-trailers, having 5 axles and a gross vehicle weight ≤ 44 tons (instead of 40 tons as regulated in the Circular No. 07/2010/TT-BGTVT); having 6 or more axles and a gross vehicle weight ≤48 tons.

The gross vehicle weight is smaller than the maximum vehicle weight allowable for

road transport but the axle load exceeds by 1.15 times the maximum axle load allowable for road transport (this percentage is 1.1 times as regulated as before).

Besides, special-use vehicles and container trucks: The maximum cargo fill height is 4.35 m, measured from the highest point of the road surface upward (instead of 4,2m applied from January 1, 2011 as in previous regulation).

This Circular takes effect 45 days from the date of its signing and annuls Point b, Clause 2, Article 16; Clause 3. Article 17; and Point b, Clause 3, Article 23 of Circular No. 07/2010/TT-BGTVT dated February 11, 2010.