Legal Document Updates in English (27/2012)

ADVERTISING FOR BREAST MILK SUBSTITUTE FOR CHILDREN UNDER 24 MONTHS OLD TO BE BANNED
 

Dairy being breast milk substitute for children under 24 months old, dietary supplements for children under 06 months old; artificial feeding bottles and pacifiers are banned from advertising since January 01, 2013 under the Law on Advertising No. 16/2012/QH13 promulgated by the National Assembly XIII.

Besides, this Law banned the advertising of wine that contains 15⁰ alcohols or above; Cigarettes; Prescription drugs, non-prescription drugs recommended by competent State agencies to use restrictively or under the doctor’s supervision; Shotguns and cartridges, sporting weapons and products that might incite violence…
For the advertisement of some special products, goods and services such as

medicines; cosmetics and milk and dietary products for small children over 06 months and 24 months…, the advertising companies

must satisfy the following conditions: Having the unexpired Circulation license and the medicine instruction sheet approved by the Ministry of Health when advertising medicines allowed to be advertised as prescribed by law provisions on medicines; Having the cosmetics announcement sheet as prescribed by law provisions on medicines when advertising cosmetics; food safety and hygiene certificate (for dietary products domestically produced) or the product quality certificate issued by the competent agency of the producing country, and the circulation license (for imported dietary products)...

FROM JANUARY 01, 2013, INDIVIDUALS MUST IMPLEMENT PRICE REGISTRATION
 

This is one of measures to regulate price stabilization under the Law on price No. 11/2012/QH13 promulgated by The National Assembly on June 20, 2012.

Specifically, the production or business organizations, individuals implement price registration for goods or services subject to price stabilization (Finished petrol, oil; Electricity; Milk for children under 06 years old; Paddy, ordinary rice; and drugs for human disease prevention and treatment in the List of essential medicines using at establishments of medical examination and treatment…) in the time the State applies methods of price stabilization. Price stabilization is implemented in the following cases: Upon prices of goods or services have irregular changes; upon price level changes affecting socio-economic stabilization.

goods; Measures of finance, monetary conformable to provisions of laws; establishing fund ofprice stabilization for items need be stabilized on price; Examining elements forming prices; controlling inventory goods; examining quantity, volume of available goods; and applying supporting measures of price conformable to provisions of laws and international commitments;

Moreover, in order to stabilize the market, protect the rights and benefits of the production or business organizations, individuals and consumers, the State will define prices for air services, Service of telecommunication connection; Prices of electric transmit; prices of Auxiliary services for electric system; Prices of electricity generation; prices of electricity trading; the level of average electricity retail price; services of domestic air transport with monopoly route…

A TWO-MONTH INCREASE OF MATERNITY LEAVE FOR FEMALE EMPLOYEE
 

This is one of contents under the Labor Code 2012 promulgated by the National Assembly XIII on June 18, 2012.

Specifically, from May 01, 2013, the time the female employee is entitled to take leave before and after birth increases to 06 months. Instead of 04 months under the current regulations. In case the female employee gives a birth of twin or more, from the 2nd child onwards, every child, the mother is entitled to 01 month leave additionally. During maternity leave, the female employee is entitled to maternity leave under the provisions of law on social insurance. Before the expiry of maternity leave, if having a demand, with the certification of the competent medical facility concerning the early work without harmfulness to the female employee’s health and with the consent of the employer, the female employee can get back to work after taking leave of at 04 moths. In this case, in addition to the salary of the working

days paid by the employer, the female employee continues to receive maternity allowance under the provisions of law on social insurance.

Besides, the National Assembly also amended some regulations on salary. Specifically, the employee’s salary during the probation is agreed by both parties but must be at least 85% of the official salary; increased by 15% compared with the current regulation (the previous one is 70%). Also, under this Labor Code, the minimal salary rate is the lowest rate that is paid to the employee who performs the simplest work in the normal working conditions and that must ensure the minimal living needs of the employees and their families and the minimum rate is determined by the Government through the sector collective negotiation.

GRANTING THE AUTONOMY TO HIGHER EDUCATION INSTITUTIONS
 

On June 18, 2012, the National Assembly of Vietnam voted on passing the Law on Higher Education No. 08/2012/QH13 regulating Duties and authority of higher education institutions, international cooperation, the higher education quality assurance and assessment.

Notably, the National Assembly gives the autonomy at the maximum level to higher education institutions. Specifically, higher education institutions are independent in the primary activities such as organization, personnel, finance, property, training, science and technology, international cooperation, assuring the higher education quality; higher education institutions shall autonomously make decisions on the enrolment methods and bear responsibilities for the enrolment; they also autonomously determine the enrolment targets, be responsible for disclosing the enrolment targets, the training quality and the conditions assuring the training quality. Besides, they are autonomous and responsible for the development, appraisal and introduction of the training programs at college, university, master’s and doctorate levels…

At the same time, in order to assess the prestige and quality, serving the State management and investment priority for the State budget. The higher education institution are classified and ranked under the following criteria: their positions and roles in the higher education system; their scales, professions and training levels; their science, technology and training mechanism; The quality of training and scientific research…

The subjects are subject to the adjustments of the Law on higher education including: Colleges; Universities, academies; Local universities, national universities; Scientific research institutes eligible of doctorate training; organizations and individuals related to higher education.

This Law takes effect on January 01, 2013.

REPORT TO THE STATE BANK WHEN IMPLEMENTING HIGH VALUE TRANSACTIONS
 

In the context of economic integration, the transparency in the economy, especially in financial monetary sector, is very important. However, most of people lack of deep understanding on money laundering. To deal with the problems, on June 18, 2012, the National Assembly has promulgated the Law on Prevention of money laundering operation No. 07/2012/QH13.

Under this Law, financial organizations, the organizations and individuals that are doing business in the relevant non-financial sector such as doing business in games with prizes, casino; Doing business in the services of real estate management, the brokerage of real estate, real estate trading floor, and lawyer practice organization...have responsibility to report to the State Bank of Vietnam when implementing high value transactions. On the requirement of the State Bank

of Vietnam, the Prime Minister shall prescribe the value rate of high value transactions that must be reported in accordance with the situation of social and economic development of the country in each period.

Besides, the above subjects shall report to the State Bank of Vietnam upon having suspects or the reasonable grounds to suspect the property in the transaction has derived from the criminal activity or in relation with money laundering. The basic suspicious signs include: the client provides incorrect, incomplete and inconsistent client identification information; There was a sudden change in the transaction turnover on the account; money deposited into and withdrawn quickly from accounts; the clients often change money with small denominations into larger denominations…
This Law shall take effect on January 01, 2012.

FROM JANUARY 01, 2013, BANKS MUST PARTICIPATE IN DEPOSIT INSURANCE
 

In order to complete the legal framework on operation of deposit insurance and implement the State policy on protecting the legal rights and benefits of depositors, on June 18, 2012, the National Assembly officially approved the Law on deposit insurance No. 06/2012/QH13.

Accordingly, except for the policy bank, all credit organizations and banking branches operating in Vietnam must participate in deposit insurance from January 01, 2013.

Insured deposit is the deposit in Vietnam Dong and it doesn’t belong to individuals who are a member of the member Board, member of Board of Directors, member of control Board, General Director (Director), Deputy General Director (Deputy Director) of that credit; or of the individual who owns more than 5% of the charter capital of that credit organization.

The Prime Minister has regulated the fee framework of the deposit insurance at the request of the State Bank of Vietnam. And the deposit insurance fees are calculated on the basis of the average deposit balance of the insured deposit at the deposit insurance participating organizations. The deposit insurance fees are calculated and paid quarterly in the fiscal year.

If the deposit insurance participating organization violates the deadline to pay the deposit insurance fees as prescribed in Article 20 of this Law, in addition to fully paying the outstanding fee, it shall be fined for each day of late payment equal to 0.05% amount of the late payment. In case the deposit insurance participating organization fails to make payment or makes inadequate payment of the deposit insurance fees, the deposit insurance organization shall send document to the State Bank of Vietnam to request a suspension or temporary suspension of deposit receiving operation of the deposit insurance participating organization.

MUST SUPPLEMENT THE FIGHTING PLANS UPON THE CHANGES
RELATED TO THE FIRE FIGHTING
 

On May 22, 2012, the Government issued the Decree No. 46/2012/ND-CP amending and supplementing a number of articles of the Government's Decree No. 35/2003/ND-CP of April 04, 2003 on detailing the implementation of a number of articles of the Law on Fire prevention and fighting and the Government's Decree No. 130/2006/ND-CP of November 08, 2006 on the compulsory fire and explosion insurance regime.

Accordingly, the Decree regulated that the fire fighting plans must be promptly supplemented and adjusted upon the changes in the nature and characteristic of the inflammability, explosiveness, toxicity, and the conditions related to the fire fighting.

The Fire departments are responsible to make internal fire fighting plans and fire fighting plans for residential areas that mobilize forces and means from the Fire

departments and multiple agencies, organizations or localities.

The Government also requires that the heads of the facilities, the Chiefs of hamlets and villages, Chiefs of neighborhoods, forest owners, motor transport owners with special requirements for fire prevention and fighting safety shall be responsible to make plans for firefighting using the available forces and means.

The Presidents of commune-level People’s Committees, the heads of the facilities in the list prescribed by the Ministry of Public Security in Point b this Clause are responsible to cooperate with the Fire department in making fire fighting plans for the local residential areas and facilities under the guidance from the Ministry of Public Security;

MUST HAVE INFORMATION ON RATE WHEN ADVERTISING DIGITAL CONTENT
 

The Ministry of Finance issued the Circular No. 78/2012/TT-BTC dated May 18, 2012 guiding a number of articles of the Decree No. 84/2011/ND-CP dated September 20, 2011 of the Government regulating the handling of administrative violation in price field.

Under this Circular, subjects required to list prices to be the organizations and individuals engaged in production and business in the territory of Vietnam must list wholesale price, retail price, recommended retail price in accordance with standards, quality and quantity of each type of sold goods and service at the following locations: The facilities of production, business; Supermarkets, shopping centers, markets, stores, shops, kiosks, stall selling goods or supplying services and fairs with sale of goods. The listing of prices included all taxes, fees and charges (if any); Currency listed its prices is Vietnam Dong.

Notably, the Ministry of Finance requires organizations, individuals providing content services on television to make the listing of service charges in which it must provide

rates during the advertising, pricing information must be stood still, not being drifted, run. Size, the height of rates is by at least one fifth the height of the screen (or at least equal to half of the height of the command syntax).

When making the listing of service charges in electronic press, it must provide rates at any place where ad on the syntax of the message command to phone number is existed. For oral press, when syntax of message is advertised completely to a certain phone number, it must provide immediately information on rate required to be paid by users. Besides, when users wish to download a product, service through software installed on mobile phone, the software must provide the specific charges that the users will have to pay if they do the function of downloading information, service from a phone number.

PURCHASE OF ACTIVATED SIM CARDS TO BE BANNED FROM JUNE 01, 2012
 

On June 01, 2012, some acts such as trading, circulating pre-activated SIM or trading, circulating, using universal SIM cards to register subscriber information are prohibited. The subscriber owners must register directly at the subscriber information registration offices to get the subscriber number…These are new regulations under the Circular No. 04/2012/TT-BTTTT dated April 13, 2012 on the management of prepaid mobile subscribers.

Specifically, the Circular prohibited trading, circulating pre-activated SIM without subscriber information registration as prescribed; Trading, circulating, using universal SIM cards to register subscriber information or devices that can activate SIM cards without taking out the SIM card; illegally revealing, using prepaid mobile subscriber information.

The subscriber owners must register directly at the subscriber information registration offices to get the subscriber number, present the ID cards (or passport), the letter of introduction together with the Business registration certificate or the Establishment license of agencies, organizations for representatives of agencies,

organizations or owners of subscriber registration offices; fill in the “Prepaid mobile subscriber information declaration” under the form as promulgated.Under the Circular, it is prohibited to use the ID cards or passports of other people to register the subscriber information; or to use one person’s ID card or passport to register another’s subscriber information. Accordingly, when receiving subscriber information, the transactor must request the subscriber owner to provide the copy of ID card or passport to retain and the original to compare; photocopy or scan the ID card, passport; check and compare with the information in “Prepaid mobile subscriber information declaration”.

The subscriber can check the subscriber information under 02 ways: access to website of enterprises providing mobile services, or send the instant message “TTTB" to 1414.

This Circular takes effect on June 01, 2012 and supersedes the Circular No. 22/2009/TT-BTTTT of June 24, 2009 of the Minister of Information and Communications on promulgating the Regulation on the management of prepaid mobile subscribers.