Legal Document Updates in English (21/2021)

ADJUSTMENT OF STATE-OWNED ENTERPRISE’S CHARTER CAPITAL

On May 26, 2021, the Ministry of Finance issues the Circular No. 36/2021/TT-BTC guiding a number of contents regarding investment of state capital in enterprises and management and use of capital and assets at enterprises as prescribed in the Government's Decree No. 91/2015/ND-CP dated October 13, 2015; the Government's Decree No. 32/2018/ND-CP dated March 08, 2018; the Government's Decree No. 121/2020/ND-CP dated October 09, 2020, and the Government's Decree No. 140/2020/ND-CP dated November 30, 2020.

Accordingly, enterprises of which the State holds 100% of charter capital that do not need to supplement charter capital or do not prepare a plan to determine charter capital and charter capital supplement investment source shall pay the difference between the equity and the charter capital into the state budget. The owner-representing agencies

13 PRODUCTS MANAGED BY THE MOLISA
SUBJECT TO STATE INSPECTION BEFORE IMPORTATION

The Ministry of Labor, Invalids and Social Affairs (MOLISA) issues the Circular No. 01/2021/TT-BLDTBXH prescribing the list of potentially unsafe products and goods under the management of the Ministry of Labor, Invalids and Social Affairs on June 03, 2021.

Accordingly, 13 products and goods that are subject to state inspection before importation include: Protective headwear for workers: Safety helmets for industrial; Personal eye- and face- protectors for workers: Welding glasses, welding mask, anti-splash, ultraviolet rays; Safety belts and personal fall-arrest systems; Clothing to protect

against heat and flame for workers; Electric pulleys and hoists, etc.

In addition, the Circular also stipulates the list of 08 products and goods not subject to state inspection before importation. To be specific: Boilers with nominal working pressure exceeding 0.7 bar; Vessels, reservoirs, vats and tankers with nominal working pressure exceeding 0.7 bar as classified in TCVN 8366:2010; Cranes; Bridge cranes and gantry cranes; Cargo hoists (winch type), etc.

This Circular takes effect on July 18, 2021.

STRIVE TO REDUCE THE RATE OF CHILD LABORERS
AGED BETWEEN 5 AND 17 TO 4.9% IN THE 2021-2025 PERIOD

The Decision No. 782/QD-TTg approving the Program on prevention and reduction of illegal child labor in the 2021-2025 period, with orientations toward 2030 is issued by the Prime Minister on May 27, 2021.

The program sets the objectives as follows: To strive to reduce the rate of child and minor laborers aged between 5 and 17 to 4.9%; All children at risk of being engaged in child labor, child laborers and children trafficked for labor exploitation will receive timely support and intervention and be put under management and monitoring upon the notification; 70% of children will be provided with information and knowledge about the prevention and reduction of child labor; To reduce to the lowest level the rate of child and minor laborers doing heavy,

hazardous or dangerous work; etc.

In addition, tasks and solutions of the program include: Improvement of policies and laws on prevention and reduction of child labor; Communication, education and mobilization of the society to increase the awareness of the prevention and reduction of, and responsibility to prevent and reduce child labor; Increase of the prevention and detection, support and intervention on child labor and children at risk of being engaged in child labor in all levels and sectors; Enhancement of the inspection of the observance of laws and policies on prevention of child labor; etc.

This Decision takes effect on the signing date.

APPLY 3% OF SECURITY FOR THE CAPITAL PORTION
OF UP TO VND 300 BILLION

The Government’s Decree No. 31/2021/ND-CP detailing and guiding the implementation of a number of articles of the Investment Law is issued on March 26, 2021.

The investors shall pay a deposit or obtain a guarantee of a credit institution or foreign bank branch established under Vietnamese laws on the obligation to make a deposit to secure the performance of an investment project that is allocated or leased land by the State or permitted to change the land use purpose. The security for implementation of an investment project shall be calculated in percentage of its investment capital as follows: For the capital portion of up to VND 300 billion, the security percentage is 3%; For the one of between over VND 300 billion and 1,000 billion, the percentage is 2%; This percentage is 1%, for the one of over VND 1,000 billion.

Besides, management boards of industrial parks, export processing zones, hi-tech parks and economic zones shall grant, modify and revoke investment registration certificates

of following investment projects: Investment projects on building and commercial operation of infrastructure of industrial parks, export processing zones, hi-tech parks and functional quarters of economic zones; Investment projects implemented in such industrial parks, export processing zones, hi-tech parks and economic zones.

For investment projects implemented inside industrial parks, export processing zones, hi-tech parks and economic zones, the investors may conduct the following activities: Leasing or purchasing ready-built workshops, offices, warehouses and storing yards to serve their production and business activities; Paying for the use of technical infrastructure and service facilities; Leasing and subleasing out their workshops, offices, warehouses and storing yards and other already-built works to serve production and business activities in accordance with the laws; etc.

This Decree takes effect on the signing date.

TO FINE UP TO VND 120 MILLION
FOR THE ACT OF DISCHARGING UNTREATED WASTES INTO THE ENVIRONMENT

This noticeable content is prescribed in the Decree No. 55/2021/ND-CP dated May 24, 2021 of the Government amending and supplementing a number of articles of the Government's Decree No. 155/2016/ND-CP dated November 18, 2016 providing for the sanctioning of administrative violations in the domain of environmental protection.

Accordingly, a fine of between VND 100,000,000 and VND 120,000,000 shall be imposed on the act of building and installing equipment, pipes or other waste lines in order to discharge untreated wastes into the environment.

Especially, to reduce the fine for the act of throwing, disposing, discarding cigarette butts and heads improperly in apartments, commercial centers, service spots or public places to VND 100,000 – VND 150,000, instead of VND 500,000 – VND 1,000,000 as prescribed in previous regulations.

In addition, the Decree also provides additional regulations that the fine of between VND 70,000,000 and VND 80,000,000 shall be imposed on the act of improperly using oil spill dispersants and biological products in response to oil spill.

This Decree takes effect on July 01, 2021.

SUPPORT FOR QUARANTINE COSTS
FOR VIETNAMESE CITIZENS RETURNING HOME BY LAND

On May 06, 2021, the Government issues the Resolution No. 48/NQ-CP on the Government’s Regular Meeting on April 2021.

Accordingly, the Government requests to strict implement the instructions of the Party Secretariat and Head of the National Steering Committee for COVID-19 Prevention and Control with the spirit of "Fighting the pandemic like fighting against the enemy", continue to comply with the “5K+vaccine” principles and strengthen technological measures; utterly avoid being neglective, subjective, or unprepared, which could cause costly consequences. Concurrently, rectify and strengthen the application of technological measures in management, treatment, isolation, and quarantine, as well as post-quarantine medical surveillance.

Besides, the Ministry of Health shall assume the prime responsibility for directing and guiding agencies, units and localities to formulate plans to ensure human resources,

medicines, medical equipment and means of medical examination and treatment to serve people according to different pandemic scenarios and situation; be readily prepared even for the worst-case scenario of up to 30,000 community infections. On the other hand, the Ministry of Health must strictly and proactively take steps to ensure Vietnam could obtain vaccines and get as many people vaccinated as soon as possible; expand access to vaccine supply sources and rapid testing technologies; speed up the injection of existing vaccines in a transparent and safe manner, and prevent vaccine loss due to expiration.

Especially, the Government agrees that Vietnamese citizens returning from neighboring countries by land shall receive support from the State budget to cover costs, for transportation from arrival sites to a concentrated quarantine facility, screening test for SARS-CoV-2; etc.