Legal Document Updates in English (19/2013)

BUYING CREDIT INSTITUTION’S BAD DEBTS IN THE BOOK VALUE
BY SPECIAL BONDS
 

On May 18, 2013, the Government issued the Decree No.  53/2013/ND-CP on the establishment, organization and operation of Vietnam Asset Management Company.

According to this Decree, the State Bank of Vietnam shall establish the Asset Management Company to handle bad debts, promote reasonable credit growth for the economy. Asset management company is a specialized enterprise and is organized in the form of a one-member limited liability company whereby the State owns 100% of charter capital and subject to the State management, inspection and monitoring conducted by the State  Bank of Vietnam in operations such as purchase of bad debts of credit institutions; debt recovery, debt collection and handling, sale of debt and collateral; restructuring of debt, adjustment of debt repayment conditions, and conversion of debts into contributed capital, the capital stock of the loan customer; investment, repair, upgrade, exploitation, use and lease of collateral; management of bad debts; consultation, brokerage, debt and asset sales; financial investment and capital contribution, share purchase; organization of asset auction.

DECREASE IMPORT TAX RATE FOR OILS AND PETROLEUM OILS TO 18%
 

On May 22, 2013, the Ministry of Finance issued the Circular No. 70/2013/TT-BTC amending preferential import tax rates applicable to some commodities of heading 2710 in the preferential import tariff.

Previously, at the Circular No. 58/2013/TT-BTC dated May 08, 2013, the Ministry of Finance increased import tax rate to 19% for petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals,

MAXIMUM FEE FOR CONTRACTS AND TRANSACTION’S AUTHENTICATION IS
VND 3 MILLION
 

This content is prescribed at the Joint Circular No. 62/2013/TTLT-BTC-BTP dated May 13, 2013 of the Ministry of Finance and the Ministry of Justice promulgating the collection levels, collection regime, remittance, management and use of fees for authentication of contracts and transactions.

In particular, levels of fee collection for the authentication for contracts, transactions shall be calculated as authentication of contracts of transfer, donation of the land use right, capital contribution by the land use right (counted on the value of the land use right);  authentication of contracts of transfer, donation of the land use right with land-attached asset, capital contribution by the land use right with land-attached asset (counted on the total value of the land use right and the value of land-attached asset); authentication of written agreements on inheritance division, written acceptance of inheritance (counted on the value of inheritance),  authentication of contracts of asset mortgage (counted on the value of asset; in case in the contracts of asset mortgage inscribed the value of loans lower than the value of the mortgaged asset, counted on

WORKING HOURS FOR LABOR SHALL NOT EXCEED 12 HOURS IN A DAY
 

This is the content of the Decree No. 45/2013/ND-CP dated May 05, 2013 of the Government detailing some Articles of the Labor Code on working hours, rest hours and labor security and labor hygiene.

In particular, Overtime hours in a day shall not exceed 50% of the normal working hours in 01 day; the total normal working hours and overtime hours         when applying weekly working hours; not exceed 12 hours in a day when working overtime on public holidays and weekends. For the organizations 200-300 overtime hours in a year, overtime hours are permitted in production and processing of textiles,

MAXIMUM TOTAL LOANING TIMES IS 15 YEARS PROJECTS
ON ECONOMY INFRASTRUCTURE
 

This is the content in the Decree No. 54/2013/ND-CP dated May 22, 2013 of the Government supplementing the Decree No. 75/2011/ND-CP dated August 30, 2011 of the Government on state investment credit and export credit.

Accordingly, Enterprises must meet fully the following conditions: having export contract or contract of aquatic product sale to enterprises processing aquatic products for export; having effective plan on aquatic cultivation in service for export and having been appraised and approved for loan provision by the Vietnam Development Bank; having full legal capacity and civil act capacity; enterprises must implement fully provisions on loan assurance as prescribed by current law; buy asset  insurance at an insurer operating legally in Vietnam for asset formed from loans being subject to buying compulsory insurance during time limit of loans; enterprises must implement the regime of accounting; financial statement in accordance with law, the annual financial statements must be audited by independent audit agencies.

PEASANT ASSISTANCE FUND IS NOT ALLOW TO USE
CAPITAL RESOURCES FOR DOING BUSINESS
 

On May 21, 2013, the Ministry of Finance issues the Circular No. 69/2013/TT-BTC dated May 21, 2013 of the Ministry of Finance guiding the financial management regime applicable to the Peasant Assistance Fund of Vietnam Peasants’ Association.

According to this Circular, the Peasant Assistance Fund shall operate not for the profit-making purpose, support and assist peasants in developing the rural production; has the legal entity, its own stamps, balance sheet, and is entitled to open the account at the State Treasury, domestic commercial banks in accordance with the Law; shall take self-responsibility for its operations before law, enjoy the financial autonomy, ensure the capital safety; make up the expenses and risks in the operation according to the Law and under this regulation. Besides, the management capital