Legal Document Updates in English (27/2016)

ENTERPRISES RUNNING DEBT PURCHASE AND SALE SERVICE
MUST HAVE AT LEAST VND 100 BILLION OF CHARTER CAPITAL
 

According to Decree No. 69/2016/ND-CP dated July 01, 2016 of the Government on requirements for running debt trading service, the minimum charter capital or investment capital of providers of debt trading brokerage service and debt trading consultancy service is VND 5 billion; with enterprises running debt purchase and sale service, the minimum charter capital or investment capital is VND 100 billion.

Besides, enterprises running debt purchase and sale service must have internal management rules in terms of organization and internal regulations on debt trading activities. Enterprise’s manager must have possess bachelor's degree or a degree of higher level in either economics, or business administration, or law, or a specialty of which he/she is going to be in charge; have full legal capacity and be not prohibited from management of enterprise; hold the position of manager or have at least 05 consecutive years of experience in financial sector, banking, accounting, auditing, law, asset valuation or debt trading.

FOREIGN EXCHANGE AGENTS AREN’T ALLOWED TO EXCHANGE
FOREIGN CURRENCY FOR OTHER FOREIGN CURRENCIES
 

As in former regulations, foreign exchange agents are not allowed to exchange foreign currency cash for Vietnam dong, then in accordance with this Circular, foreign exchange agents are not allowed to exchange foreign currency cash for other foreign currencies either. Now, these agents are only allowed to exchange Vietnam dong for individual’s foreign currency cash. Foreign exchange agents located at isolated areas of international checkpoints are allowed to exchange foreign currency cash for Vietnam dong with individuals having passports granted by competent authorities of their countries.

These contents are prescribed in Circular No. 11/2016/TT-NHNN dated June 29, 2016 of the State Bank of Vietnam amending a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks, which takes effect on August 13, 2016.

SAFE INVESTMENT RATIO OF PROPRIETARY TRADER
THAT IS COMMERCIAL BANKS IS 7%
 

This content is regulated in Circular No. 10/2016/TT-NHNN dated June 29, 2016 of the State Bank of Vietnam guiding a certain contents of the Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government on prescribing offshore indirect investment.

According to this Circular, the safe investment ratio of a proprietary trader that is a commercial bank or general financial company is 7% of its equity capital, excluding investments and business activities of its branches in foreign nations. The activities of outward portfolio investments by commercial banks and general financial companies shall not exceed that safe investment ratio. In case of excess of the safe investment ratio due to reduction of equity capital, commercial banks and general financial companies shall report to the State Bank; implement necessary

REQUIREMENTS OF JUDICIAL EXPERTISE IN CONSTRUCTION
 

On July 01, 2016, the Government issued Decree No. 62/2016/ND-CP on regulations on requirements of judicial expertise in construction and construction experiments, applies to organizations, individuals at home and abroad involved in construction activities in the territory of Vietnam.

According to this Decree, construction judicial experts shall not only meet all conditions set out in current Law but also have practical experience in construction investment management, construction supervision or state administration for construction (for judicial expertise in compliance with laws in construction investment activities); have practice certificate in leading construction survey or leading construction designs in case of verifying quality of construction survey or construction design; have practice

FOOD BUSINESS FACILITIES OWNERS
SHALL OBTAIN CERTIFICATE OF FOOD SAFETY
 

Food business facilities owners or salespersons shall obtain the certificate of food safety and satisfy health requirements is the requirements for investment in food business facilities stipulated in Decree No. 66/2016/ND-CP dated July 01, 2016 of the Government on regulations on requirements for investment in protection and quarantine of flora, plant varieties; common wild animals; aquatic animals; foods and husbandry.

Beside these requirements, food business facilities shall meet other conditions, such as: Located far away from polluted areas published by State competent authorities; landfills, centralized/domestic/industrial wastewater treatment plants, hospitals; Have their restrooms separated from zones for food storage, and food trading; Restroom doors shall not be installed opposite the food storage zone;