Legal Document Updates in English (19/2017)

FROM JULY 01, 2017, THE STATUTORY PAY RATE IS VND 1,300,000 PER MONTH
 

This is the important content prescribed at the Decree No. 47/2017/ND-CP dated April 04, 2017 of the Government prescribing the statutory pay rate for public officials, public employees and armed forces’ personnel.

In particular, from July 01, 2017, public officials working in authorities at central echelon to district level ; public officials working in authorities at communal level ; public employees working in civil service providers; salary-graded contract workers; workers on regular payroll of state-funded associations; commissioned officers, professional soldiers, non-commissioned officers, soldiers, national defense employees, contract workers in the People's army of Vietnam; commissioned officers, non-commission officers

CONDITIONS FOR FACTORING ACTIVITY
 

On May 17, 2017, the State Bank of Vietnam issued the Circular No. 02/2017/TT-NHNN stipulating on factoring activity of credit institutions, foreign banks’ branches.

The Circular prescribing that for customers being residents, factoring unit shall consider and decide on factoring when customers being legal status that has legal personality of a natural person; being individuals from 18 years old or more that has legal capacity of a natural person in accordance with the law or from 15 years old to 18 years old that are not lost or limited legal capacity of a natural person; demand on factoring to use advanced amounts for legal purposes and serve for business production;  having financial capacity to pay for debts and having feasible plans to pay for debts.

Particularly,  for customers being non-residents, factoring unit shall consider and decide on factoring when customers being organizations; if customers are the importing party that meets conditions: customers being enterprises established and operated overseas that capital is contributed by Vietnamese enterprises under the foreign direct investment; 100% value of receivables that is

CASES ON APPRAISAL OF THE RESERVE PRICE OF NONPERFORMING LOANS
 

On May 16, 2017, the Government issued the Decree No. 61/2017/ND-CP stipulating on appraisal of the reserve price of nonperforming loans, collateral of nonperforming loans and establishment of the Council for auction of nonperforming loans, collateral of nonperforming loans for high value nonperforming loans, collateral of nonperforming loans.

Accordingly, cases that reserve price, collateral of nonperforming loans must be appraised. Nonperforming loans that are purchased by Asset Management Company according to the book value by special bonds when determining reserve price for auction, Asset Management Company fails to reach an agreement with credit institutions on reserve price. Nonperforming loans that are purchased by Asset Management Company at market price and collateral of nonperforming loans when determining reserve price for auction, Asset Management Company fails to reach an agreement with the Guarantor on reserve price.

PROVINCIAL PEOPLE’S COMMITTEE’S HAVING NO ON-LENT CAPITAL
MORE THAN 180 DAYS OVERDUE  CAN ACCESS TO ON-LENT CAPITAL
 

On April 28, 2017, the Government issued the Government No. 52/2017/ND-CP dated April 28, 2017 of the Government on on-lending of the Government’s foreign borrowed capital to People’s Committees of centrally-affiliated cities and provinces.

Within that, the most important content is the eligibility conditions for the provincial People’s Committee’s access to on-lent capital. In particular, Eligibility conditions for the provincial People’s Committee’s access to on-lent capital.  Have projects approved by competent agencies to mobilize loans for socio-economic development investment or projects funded by the local budget in the form of public-private partnerships, defined in the local budget spending scheme and the local medium-term investment plan approved by the competent authority; have projects allocated the reciprocal capital according to effective regulations; ensure that the total loan balance of the local budget at the time of appraisal of the policy of investment in the programs or projects shall not exceed the outstanding debt limit of the local budget;  there is no on-lent capital from the Government more than 180 days overdue; the annual debt service obligations of the provincial People’s Committees for on-lent capital shall not exceed 10% of local

TO FINE VND 40 MILLION FOR SELLING SIM CARDS WITH FUNCTION
TO ACTIVATE SIM CARDS WITHOUT
 

This is the important content  prescribing at the Decree No. 49/2017/ND-CP on amending  the Article 15 of the Government’s Decree No. 25/2011/ND-CP elaborating and guiding the implementation of the law on telecommunications, and Article 30 of the Government’s Decree No. 174/2013/ND-CP on penalties for administrative violations in posts, telecommunications, information technology and radio frequency sectors, takes effect on April 24, 2017.

In particular, for April 24, 2017, Selling SIM cards but failing to get the authorization to conclude Contracts from the mobile telecommunications service provider; selling SIM cards with subscriber information already input or prepaid mobile services activated; selling terminal devices without SIM card with subscriber information already input or prepaid mobile services activated; trading, exchanging or using universal SIM cards or devices with function to activate SIM cards without taking the SIM card out to input subscriber information, or to activate prepaid mobile services for SIM cards; failing to publish on the telecommunications enterprise's website the list of POS or publishing the list of POS containing insufficient information as regulated shall be imposed a fine ranging from VND 30,000,000 to VND 40,000,000.

Besides, within duration of 03 months as from April 24, 2017, telecommunications enterprises are responsible for