Legal Document Updates in English (25/2011)

ENTERPRISES IN 5 SECTORS MAY NOT GO ON STRIKE
 

On April 14, 2011, the Government issued the Decree No. 28/2011/ND-CP dated amending and supplementing the list of enterprises employees of which may not go on strike promulgated together with the Government’s Decree No. 122/2007/ND-CP dated July 27, 2007, providing for the list of enterprises employees of which may not go on strike and the settlement of requests of labor collectives in those enterprises.

Accordingly, list of enterprises employees of which may not go on strike include power sector; gas sector; transportation sector; post and telecommunications sector; urban service enterprises. Therefore, the way in classify group that is not allowed to change compared to the Decree No. 122/2007/ND-CP (5 sectors may not go on strike in accordance to the old regulations such as industrial sector, transport sector, post and telecommunications service sector, agricultural, forestry and fishery sector, urban service enterprises operating in special-class, grade-i and grade-ii cities).

Enterprises in above 5 industries which may not go on strike will minimize compared to previous regulations.

Specifically, according to new regulations, five enterprises may not go on strike in the power sector: Hoa Binh Hydropower Company; Son La Hydropower Company; Phu My Thermopower Single-Member Limited-Liability Company; The National Power Transmission Corporation; The National Load Dispatch Center of Electricity of Vietnam; in GAS SECTOR including PetroVietnam Gas; Vietsopetro Joint-Venture Enterprise; PetroVietnam Exploration and Production Corporation.

As according to this Decree, there are 17 businesses in the Transport. 07 businesses in post and telecommunication and other 27 businesses in urban businesses may not go on strike.

This Decree takes effect on June 01, 2011.
 

NOT ALLOWED TO CONDUCT PROMOTION WITH TELECOMMUNICATIONS
TARIFF UNDER SCALE
 

Government issued the Decree No. 46/2011/ND-CP on amending; supplementing some Articles of the Decree No. 34/2008/ND-CP dated March 25, 2008 of the Government on employment and administration of foreign employees working in Vietnam.

Accordingly, the Decree supplements more 2 forms of enterprises allowed to use foreign employees: associations, enterprise associations are established in accordance with Vietnam legal regulations; business households and individuals who are allowed to do business according to Vietnam legal regulations by authorized agencies.

At least thirty (30) days prior to recruiting employees, the employer must publish its need to recruit employees in planned positions of foreigners on at least 01 (one) some central newspaper and at least 01 (one) local newspaper in one of written, oral, pictorial or electronic form with the contents: number of employees, positions, professional knowledge, salary level and other incomes, working conditions and other contents required by employees.

It shall not be necessary to publish the above-mentioned notice in a central or local newspaper if the employer recruits employees via a recruitment agency or

foreigners in Vietnam are working in international schools within the management scope of foreign diplomatic representative agencies, international inter-government organizations in Vietnam.

In the process of making calling document, requirement document, investors have to regulate contents in using Vietnamese labors and foreigners in accordance with legal regulations, especially, Vietnamese labors must be prior  in doing jobs that they have capabilities. In the case that the package need foreigners with suitable professional knowledge with the package, ways of using foreigners including: occupation positions, quantity, professional knowledge, experience and time of implementation must be regulated in calling document and requirement document by contractors.

The Decree also amends and supplements some regulations on process, procedure of issuing, extending and re-issuing work permits for foreign employees working in Vietnam as well as responsibilities of Ministries, industries and localities in managing foreign employees in Vietnam.

These amends and supplements take effect on August 01, 2011.

OLD CAR IS DUTIABLE TO BOTH 0% AND ABSOLUTE TAX
 

On April 06, 2011, the Government issued the Decree No. 25/2011/ND-CP detailing and guiding the implementation of a number of Articles of the Telecommunications Law, within that, the Government especially focuses on regulations on the promotion of telecommunication services and specialized telecommunication goods.

In particular, Telecommunication enterprises are not allowed to conduct promotion with purposes of unfair competition in the telecommunications market, dumping telecommunications service, specialized telecommunication goods; are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods with respect to telecommunication services, specialized telecommunication goods evaluated specifically by the State. Telecommunication enterprises are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods to below the minimum level of specialized telecommunication services, telecommunication goods that the State prescribes a price range or a minimum price.

The material value used for promotion for the unit of specialized telecommunication goods or services must not exceed 50% of the price of the units of specialized telecommunication goods or services promoted before promotion period except the cases: samples of specialized telecommunication goods to customer free of charge; specialized telecommunication goods to customer free of charge; specialized telecommunication goods accompanied by participation in promotions of chance;

As according to this Decree, enterprises investing in the telecommunication goods and services have to ensure the legal capital level. Enterprises applying for a license for establishing fixed telecommunication network without using wireless electric frequency bands. Establishment of networks within a region (from 15 to 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment

commitment amount: At least 300 billion VND for first 3 years after being granted a license to develop telecommunication network in accordance with the license; establishing a nationwide network of (over 30 provinces and centrally-affiliated cities): Legal capital: 300 billion VND; investment commitment amount: At least 1,000 billion VND for the first 3 years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

Enterprises applying for a license for establishing ground mobile telecommunication networks with wireless electric frequency channel shall meet the conditions for legal capital and commitment amount for investment with legal capital: 20 billion VND; and at least 60 billion VND for the first three years to develop telecommunication networks with the scale and scope specified in the license. Enterprises applying for a license for establishing ground mobile telecommunication network without using terrestrial wireless electric frequency band (a virtual mobile telecommunication network) must have legal capital: 300 billion VND and at least 1,000 billion VND for the first three years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

This Decree takes effect as from June 1, 2011 and replaces Decree No. 160/2004/NĐ-CP dated September 3, 2004 by the Government and regulations on investment in telecommunications in Decree 121/2008/ND-CP of December 3, 2008 by the Government on investment activities in the field of post and telecommunications; telecommunications regulations in Decree 97/2009 / ND-CP on the management of Internet services, management of the content of information on the Internet.

From June 01, 2003, enterprises that have been granted a license of telecommunication inconsistent with the provisions of this Decree shall perform procedures to apply for new license or license exchange under the guidance of Ministry of Information and Communications.

FORCED USE OF ENERGY DEVICES TO BE LABELED FROM MAY 15
 

The Government promulgated Decree No. 21/2011/ND-CP of March 29, 2011, detailing the Law on Economical and Efficient Use of Energy and measures for its implementation, in which requires vehicles and equipment on the list of facilities and equipment to the energy label must be conducted prior to the energy label to market.

Energy labels include 02 types: Comparative label, which provides information on energy consumption rate, type of energy, energy yield and other information to enable consumers to compare with products of the same type in the market for recognition and selection of energy-efficient devices and equipment; certification label, which certifies that the device or equipment has the highest energy yield compared with other devices or equipment of the same type.

Manufacturers and importers themselves shall print energy labels and stick them on devices and equipment obtaining energy label certificates. Sixty working days before an energy label certificate terminates its validity, the manufacturer or importer shall make re-registration. Manufacturers and importers may not stick
 

energy labels on devices and equipment with expired energy label certificates.

In accordance with this Decree, major energy users include: Industrial and agricultural production establishments and transport units which annually consume energy of a total of one thousand tons of oil or higher; Construction works used as offices and houses, educational, medical, entertainment, physical training and sports establishments, hotels, supermarkets, restaurants and shops which annually consume energy of a total of five hundred tons of oil equivalent or higher.

Major energy users shall apply energy management models, in which, major energy users shall announce of objectives and policies on economical and efficient use of energy in their establishments; availability of a network and energy manager as provided in law; energy audit, proposal and selection of managerial and technological solutions for economical and efficient use of energy…

This Decree takes effect on May 15, 2011 and replaces the Government‘s Decree No. 102/2003/ND-CP of June 14, 2007 on economical and efficient use of energy.

THE PRIME MINISTER APPROVED THE STRATEGY FOR CUSTOMS
DEVELOPMENT THROUGH 2020
 

The Prime Minister promulgated Decision No. 448/QD-TTg dated March 25, 2011 approving the Strategy for Customs development through 2020 in viewpoint taking reform and modernization as the foundation, concentrating investment on customs modernization in key regions and areas, while taking into account balances and harmonious development between regions and areas lo ensure overall development and modernization of Vietnam Customs.

Namely, to strive for the target that by 2020, customs procedures and customs administration regimes will be basically simple, effective, harmonious and compliant with international standards and practices; customs procedures in key regions will be mainly carried out electronically; information will be exchanged prior to arrival of goods, payment and license administration will be conducted electronically; the mechanism for enterprises to enjoy special priority in customs procedures and security according to World Customs Organization (WCO) standards will be introduced; and the risk management method will be applied systematically in all customs steps.

Besides, to organize and improve basic professional work and prevent and combat with focuses and effectiveness cross-border smuggling and transportation of banned goods. To implement international commitments on anti-terrorism and anti-money laundering activities, protect intellectual property rights and enter into customs cooperation on joint control. To apply technical barriers in accordance with law and international practices.

Besides, to organize and improve basic professional work and prevent and combat with focuses and effectiveness cross-border smuggling and transportation of banned goods. To implement international commitments on anti-terrorism and anti-money laundering activities, protect intellectual property rights and enter into customs cooperation on joint control. To apply technical barriers in accordance with law and international practices.

This Decision also raised a number of specific targets to be achieved by the Customs service in the future as follows: By 2015, 100% of provincial- and district-level Customs Departments in key areas (international seaports, airports and road border gates and key economic regions), 60% of basic customs operations, 70% of import and export value, and 60% of enterprises will apply e-customs procedures. By 2020, 100% of provincial- and district-level Customs Departments, 100% of basic customs operations, 90% of import and export value, and 80% of enterprises will apply e-customs procedures.

Moreover, by 2015, the customs clearance time for goods will equal the year 2010*s average level in advanced Southeast Asian countries and by 2020, it will equal that level at the same point of time. The rate of physical goods inspection will be below 10% by 2015, and below 7% by 2020. The proportion of import and export permits granted under the national customs single-window mechanism will be 50% and 90% by 2015 and 2020, respectively…

This Decision takes effect on the signing date.

VAT RATE FOR MEDIAL MACHINES AND EQUIPMENTS
 

The General Department of Custom issued the Official Dispatch No. 3009/TCHQ-TXNK dated June 23, 2011 of the General Department of Customs on Value Added Tax rate

Components, spare parts of medical machines and equipments which are imported for medical purposes (not for other purposes), for example, kidney filter using for artificial kidney machine (dialyzer machine); liver filter for liver filter machine...have

VAT rate of 5%.

The General Department of Custom requires Custom Departments of provinces and cities to check up on import cases of medical components and spare parts having registration declaration since the Circular No. 128/2008/ND-CP took effect (on January 01, 2009) to readjust unified VAT rate.

This Official Dispatch takes effect on the signing date.