Legal Document Updates in English (23/2012)

WITHDRAWING INVESTMENT CERTIFICATES OF INEFFECTIVE PROJECTS
FAIL TO MEET SCHEDULES
 

In order to overcome limitations and problems in management, investment and environment of economic zones, industrial parks and industrial complexes, the Prime Minister issued the Directive No. 07/CT-TTg dated March 02, 2012 on redressing the management and increasing the operation effectiveness of economic zones, industrial parks and industrial complexes.

Under this Directive, the Prime Minister assigned the Ministry of Ministry of Planning and Investment to coordinate with related ministries, sectors and localities in directing and guiding to build infrastructure facilities in economic zones, industrial parks and industrial complexes according to schedules, approved master plans and with the quality under law; to diversify modes of raising capital for development investment in infrastructure facilities in economic zones, industrial parks and industrial complexes.

Besides, it should thoroughly handle projects in economic zones, industrial parks and industrial complexes which are operating ineffectively and fail to comply with the laws; and consider withdrawal of investment certificates of projects which fail to comply with the laws, do not build infrastructure facilities, factories and equipments or which delay such building and have received many extensions; request industrial parks to build a treatment system of environmental standards.

THREE FORMS OF FOREIGN NON-GOVERNMENTAL ORGANIZATION’S
REGISTRATION IN VIETNAM
 

The Government issued the Decree No. 12/2012/ND-CP dated March 01, 2012 on registration and management of activities of nongovernmental organizations in Vietnam.

Under this Decree, the Vietnamese State encourages and creates favorable conditions for foreign non­governmental organizations to carry out humanitarian and development activities in Vietnam. A foreign non-governmental organization may be considered for obtaining an operation registration certificate, a project office registration certificate or a representative office registration certificate.

A foreign non-governmental organization wishing to operate in Vietnam must have the legal person status under the law of the country in which it is established; have

a clear operation charter and guidelines; and have a plan on humanitarian and development activities in Vietnam through programs, projects or non-project aids in line with socio-economic development policies of the Vietnamese State.

Foreign non-governmental organizations are prohibited from organizing or carrying out political, religious and other activities against national interests, security, defense and the great national unity of Vietnam; Organizing, carrying out or participating in activities for profit, not for humanitarian or development purposes; Organizing, carrying out or participating in activities related to money laundering, terrorism, harming social ethics or other activities contrary to Vietnamese law.

PROLONGING THE ENTERPRISE INCOME TAX PAYMENT TERMS FOR 09 MONTHS
 

The Ministry of Finance issued the Circular No. 83/2012/TT-BTC dated May 23, 2012 guiding exemption, reduction and prolongation of time limit for a number of State budget revenues according to the Government’s Resolution No. 13/NQ-CP dated May 10, 2012 on a number of solutions to remove difficulties in production business and market support.

Of which, prolonging the enterprise income tax payment terms for 09 months regarding the enterprise income tax amount payable in 2010 or earlier that until May 10, 2012, the following enterprises still fail to pay State budget remittances: small- and medium-sized enterprises, enterprises in producing, processing sectors, enterprises producing mechanical products being means of production, means of waterway transportation, steel, cement.

Payment delaying shall not be fined within the period from January 01, 2012 until the end of September 30, 2012 regarding the enterprise income tax amounts having not been paid of enterprises prescribed above. If the tax agency has notified the fine for payment delaying, the tax agency shall notify again the fine for payment delaying.

The Circular also stresses on prolonging the deadlines of the value-added tax (VAT) payment of April, May and June of 2012 for 06 months (excluding VAT of the importation stage) regarding enterprises paying VAT under the deduction method being the following subjects: small and medium-sized enterprises, enterprises in producing, processing sectors.

Branches, affiliated units of small and medium-sized enterprises and labor-intensive enterprises which are not in the same province of the head office (excluding units having activities of construction, installation, sale as extra-provincial business declare VAT for temporary calculation under rates 1%, 2%) separately making VAT declaration with the tax agencies directly managing the branches and affiliated units are also subjects of prolongation of VAT payment.

This Circular shall take effect on May 23, 2012. If the contents in previous documents are contrary to the guidance in this Circular, the guidance in this Circular shall apply.

THE MAXIMUM SHORT-TERM LENDING RATE IN VIETNAMESE DONG IS 13% P.A

The State Bank of Vietnam issued the Circular No. 20/2012/TT-NHNN dated June 08, 2012 amending and supplementing a number of Articles of the Circular No. 14/2012/TT-NHNN dated May 04, 2012 stipulating the maximum interest rate for short term loan in Vietnamese dong of credit institutions, foreign bank branches for borrowers to meet the capital requirements for several sectors.

Under this Circular, the maximum short-term lending rate in Vietnamese dong is

13% p.a; the maximum short-term lending rate in Vietnamese dong by credit institutions particularly is14% p.a.
Together with the promulgation of the new interest rate being 13% p.a, since June 11, 2011, the maximum interest rate in Vietnam dong will not depend on the mobilization interest rate (plus 3% of the mobilization interest rate) as previously.

This Circular shall take effect on June 11, 2012.

LOWERING INTEREST RATE BY 2% ON JUNE 11, 2012
 

The State Bank of Vietnam issued the Circular No. 19/2012/TT-NHNN dated June 08, 2012 on lowering the ceiling interest rate for Vietnam-dong capital mobilizations to 9% /year (instead of the ceiling interest rate of 11% / year applied in late May).

Under this Circular, credit institutions shall fix annual interest rates, for mobilizing Vietnam-dong capital from institutions and individuals including also sales promotion amounts in any form.
Of which, applying ceiling interest rate of 2%/year to non-term deposits and term deposits under 01 month; Applying the ceiling interest rate of 9%/year for term deposits from 01 month and above; particularly, grassroots People's Credit Funds may fix those annual interest rates not exceeding 9.5%.

According to judgments of some specialists, the new regulations will help to enhance the transparency in trust activity by credit institutions instead of distortion as previously when the State Bank applied the ceiling rate at 14% per year to Vietnam dong mobilization, some banks took the entrusted capital from individuals with the high interest rate above the ceiling rate. It results in the distortion of the mobilization in market because, when accepting to take the entrustment, banks not only attract the deposited capital but also spleen the ceiling interest rate, avoid the credit growth.

This Circular shall come into effect from 02 May 2012 and replace the Decision No. 742/2002/QD-NHNN dated 17 July 2002 of the Governor of the State Bank.