Legal Document Updates in English (20/2011)

EXTRACT INSURED PERSON PROTECTION FUNDS
AFTER EACH CONTRACT
 

XII^th National Assembly of the Socialist Republic of Vietnam at its 8^th session passed the amends and supplements of some Articles in the Insurance Law No. 61/2010/QH12 dated November 24, 2010 and takes effect on July 01, 2011.

Accordingly, the Law supplements two more type of insurances, including: Retirement insurance means an operation of insurance in which the insurance enterprise shall pay an insurance sum to the insured when he or she reaches a specified age as agreed upon in the insurance policy.  Health insurance means a type of insurance in which the insurance enterprise shall pay an insurance sum to the insured when he or she is bodily injured, meets with accidents, suffers sickness or ailment or needs healthcare as agreed upon in the insurance policy.

The Law also supplements regulations on establishing and managing insured person protection funds, accordingly,  the insured person protection fund shall be set up to protect the insured’s interests in case an insurance enterprise falls bankrupt or becomes insolvent. The insured person protection fund shall be set up with deductions at a certain percentage of insurance premiums from all insurance policies and right to the Government’s regulations.

Besides, the Law also regulates clearly rules on cooperation, competition and bidding in insurance business as following: insurance enterprises and insurance brokerage enterprises may cooperate with one another in reinsurance,co-insurance

loss assessment, settlement of insurance benefits, loss prevention and mitigation, human resource development, insurance product development, insurance agent training and management and information sharing for risk administration.  Insurance enterprises may compete with one another in terms of insurance conditions and coverage, liability levels, premium rates, service quality, insurance capability and financial capacity.

The following acts are prohibited establishing collusion among insurance enterprises or between insurance enterprises and insurance buyers in order to divide the insurance market or monopolize insurance services; illegally intervening in the selection of insurance enterprises; abusing positions or powers to designate, request, constrain or obstruct organizations or individuals to participate in insurance; providing untruthful information or advertisement on insurance contents, operation scope and terms, causing harms to the lawful rights and interests of insurance buyers; fighting for customers by means of obstructing, inducing, buying off or intimidating employees or customers of other insurance enterprises, insurance agents or insurance brokerage enterprises; conducting illegal sales promotions; conducting other illegal acts in cooperation, competition and bidding.

12 INDUSTRIES ARE ALLOWED TO RECEIVE ODA LOANS
WITH PREFERENTIAL INTEREST RATES
 

On June 01, 2011, the Prime Minister issued the Decision No. 29/2011/QD-TTg issuing List of industries,  lines receiving preferential interest rate when on-lending Government’s ODA loans.

According to this list, there are 12 industries,  lines receiving preferential interest rate when on-lending Government’s ODA loans such as building fresh water supply system for industries and urban livings; the projects on collecting and processing urban solid wastes and industrial solid wastes; processing industrial waste water; building and investing on equipments of health organizations which are capable of recovering capital; Investment and construction projects on education, training and vocational organizations which are capable of recovering capital; building railway; building highway; building deep-water harbor.

For finance, credit groups, credit program/composition via policy banks (Vietnam

Development Bank, Vietnam Bank for Social Policies) or other financial and credit institutions for on-lending objectives in Government’s policy or in the particular design of credit program/composition approved by the Government.

According to the regulations in the Decree No. 78/2011/ND-CP on on-lending of the Government's foreign loans, this preferential interest rate is 30% interest rate for foreign currency loans or relevant Vietnam dong are not lower than the interest rate on foreign loans.

Programs and projects of on-lending ODA loans that on-lending conditions are approved by a competent agency before this Decision’s effective date continue to apply approved conditions. In the necessary cases, the Minister of Finance reports to the Prime Minister to consider, determine in amending, supplementing the List.

AQUACULTURE ATTRACT 3,5 MILLION LABORS
 

The Prime Minister issued the Decision No. 332/QD-TTg dated March 03. 2011 approving the Scheme on development of aquaculture through 2020, the aquaculture output will reach 4.5 million tons and total area for aquaculture will reach 1.2 million ha; the aquatic product export value will reach USD 5-5.5 billion and jobs will be created for some 3.5 million laborers.

In which, Tra (Asian) catfish output will be 1.5 - 2 million tons, with an annual growth rate of 4.8%, brackish water shrimp output will be 700,000 tons, with an annual growth rate of 5.76%, mollusk output will be 400,000 tons, with an annual growth rate of 16%, marine fish output will be 200,000 tons, with an annual growth rate of 14.9%, tilapia output will be 150,000 tons, with an annual growth rate of 7.9% and so on.

The tasks to 2020 for the aquaculture include: development of production of breeds, improve the system for research, production and supply of aquatic animal breeds from the central to local levels. To strive for the target that by 2020, 100% of supplied breeds of major cultured aquatic species will be of high quality and disease-free. At the same time, expand areas for intensive aquaculture with high yield, raise yield and output of existing zones for extensive aquaculture and develop and widely apply technologies to rear aquatic animals in cages and rafts suitable to environmental and socio-economic conditions of coastal areas, islands and reservoirs.

The Prime Minister also requires to study, supplement and complete incentive and supportive mechanisms and policies for farmer and fisherman households forming and operating economic cooperation models for aquaculture; aquaculture establishments applying advanced technologies in production and environmental and resources protection such as good aquaculture practice (GAP), wastewater treatment and economical use of freshwater; and enterprises procuring, processing and procuring for reserve aquatic materials; ensuring stable prices and profits for raisers; and policies to support development of aquaculture at sea and along remote islands;

The total capital needed to implement the Scheme to 2020: around VND 40 trillion. Of which: state budget: 10%; investment credit loans: 10%; commercial loans: 50%; capital of and rose by organizations and individuals: 30%.

Investments are prioritized to 06 projects, and the most prominent ones are investment projects to build infrastructure for consolidated aquaculture zones; investment projects to develop aquatic breeds; projects to study and transfer technologies for aquaculture, breed production, epidemic control and aquaculture environment improvement; investment projects to develop production and sale of brackish shrimps, mollusks, seaweed and aquatic products raised at sea and in reservoirs; project to build environmental observation and environmental and epidemic warning systems for aquaculture; project on communication and statistical work for aquaculture development.

This Decision takes effect on March 03, 2011.

CULTURAL DIPLOMACY IS VIETNAM'S COMPREHENSIVE
AND MODEM DIPLOMACY
 

The Prime Minister approved the strategy on cultural diplomacy through 2020 issued with the Decision No. 208/QD-TTg dated February 14, 2011 basing on cultural diplomacy with cultural diplomacy, together with economic diplomacy and political diplomacy, arc the three pillars of Vietnam's comprehensive and modem diplomacy.

Given the current trend of globalization and intensive and extensive international integration, cultural diplomacy has been increasingly used in diversified forms and plays a more important role in the diplomacy of each country because the strong pervasiveness of culture has enormous impacts on building confidence, helping further deepen and tighten political and economic lies between countries.

Objectives on development of cultural diplomacy through 2020 are to strongly step up cultural diplomatic activities to make the world better understand the Vietnamese land, people and culture, further build confidence of other countries, make the relations between Vietnam and its partners more profound, stable and lasting, thereby raising the country's status in the international arena and facilitating its .socio-economic development.

The Decision also emphasizes that cultural diplomacy, together with economic diplomacy and political diplomacy, arc the three pillars of Vietnam's comprehensive and modem diplomacy. These three pillars are closely associated and interacted, contributing to implementing the external relation line of the Party  and the State.

Political diplomacy plays the guiding role, economic diplomacy serves as the physical foundation and cultural diplomacy is the spiritual foundation of external relation activities.

Cultural diplomatic activities shall be carried out in line with the viewpoints clearly set forth in the Communist Party of Vietnam's Political Program for national construction during the period of transition to socialism “To build a Vietnamese culture which is advanced and profoundly imbued with national identity, develops comprehensively, incarnates unity in diversity, and deeply reflects humanism, democracy and progress; make culture, closely associated and thoroughly incorporated with the entire social life, a major endogenous force for development. To inherit and promote the fine cultural traditions of the community of Vietnamese ethnic groups, acquire the cultural quintessence of the mankind, build a democratic, equitable and advanced society caring for true human interests and dignity, with ever higher levels of knowledge, ethics, physical strength and aesthetics."

FROM JUNE  1^ST, ALLOW TO IMPORT MOBILE PHONES,
COSMETICS AND WINES AT 3 PORTS
 

On May 06, 2011, the Ministry of Industry and Trade issued the Notice No. 197/TB-BCT on import of wine, cosmetics and mobile phones In order to save consumer’s benefits and health and prohibit illegal import of fake and low-quality goods as well as to strengthen against commercial fraud.

Accordingly, Beside current regulations on import, the Ministry of Industry and Trade guide more about import procedures on wine, cosmetics and mobile phones, except for importer’s accompanied baggage, Traders are only allowed to make import and clearance procedures at international ports such as: Hai Phong, Da Nang, Ho Chi Minh City.

Beside documents submitted for custom agencies when making import procedure under current regulations, traders have to present Assignment Document or Letter of Attorney as the formal distributor and importer for production and business or agency contracts of the producer of those goods. These documents are consularly legalizated by Vietnam representative of oversea diplomatic agencies.

According tom some enterprise’s opinions in these industry, this new regulations will make them more difficult in making import procedure, because these goods were mainly imported vie roads and airways previously, the transportation by seaways takes time and transportation time to Vietnam is longer, so the quality is also effected as well. Besides, confirmation of Vietnam diplomatic representatives is required when making import procedure, as the result, the cost will be higher if don’t want to mention about the ability in price fluctuation of this goods next time.

Some specialists confirm that, the regulation issuance is aimed to restrict excess of import under Government’s policy; however the Deputy Minister of Industry and Trade, Mr. Nguyen Thanh Bien explains that this regulation focuses on commercial frauds, not restricting excess of import.

These regulations and instructions take effect on June 01, 2011.