Legal Document Updates in English (27/2017)

PLAN ON REGIONAL MINIMUM SALARY LEVELS
MUST FINISHED WITHIN JUNE OF 2011
 

The Government convened its regular meeting on June 1-2 and requested ministries, sectors and localities to consistently and seriously implement the solutions enshrined in the Resolution 11, focusing on keeping the 2011 inflation rate under 15%; economic growth rate at around 6%; reducing State budget overspending to less than 5% and trade deficit under 16%; saving regular expenditure by 10%.

This is acknowledged in the Resolution No. 83/NQ-CP dated June 05, 2011; especially the Resolution emphasizes on the role of the State Bank of Vietnam in continuing its tightened, cautious, and flexible monetary policy in a bid to maintain the credit growth at less than 20% this year, total means of payment at around 15-16%, with quarterly and monthly even allocation in accordance with real market situation;

One of other prominent point is that the Government appoints The Ministry of Labor, Invalids and Social Affairs works with other ministries and relevant agencies to study and develop ways of adjusting regional minimum salary levels of business sector, submit them to the Government for consideration in its regular meeting for June, 2011; coordinates with localities to assist low-income groups, people who work in centralized industrial parks and free laborers.

The Ministry of Planning and Investment is responsible for coordinating with the Ministry of Finance and other relevant agencies to give instructions to and supervise the cut and reallocation of public investment in line with the spirit of the Resolution 11 until June 30, 2011.

The Ministry of Construction and the Ministry of Finance coordinate with the State Bank of Viet Nam to analyze, evaluate and report to the Government in June about the performance of the real property and securities markets, then put forth measures to the Government to organize and manage these markets for efficient operations of the markets, contributing to economic growth.

The Government highly appreciated the successful outcomes of the elections for the 13th National Assembly and People’s Council at all levels for 2011- 2016 term following the effort by the entire political system and the active participation of the whole country’s voters. The elections took place in a democratic, equal and lawful manner; political security, social order and safety were secured during the elections.

INVESTMENTS IN WIND POWER PROJECT ARE PREFERRED
IN CAPITAL, CHARGES AND FEES
 

On June 29, 2011, the Prime Minister issued the Decision No. 37/2011/QD-TTg on on the mechanism supporting the development of wind power project in Vietnam.

Accordingly, investment owner has only permitted to begin to build wind power work when had investment certificate; had electricity trade contract signed with electricity buyer; had agreement on power connection with power distributing unit or power transmit unit and  had data report of wind measure in the continuous period fewest is 12 months.  

When investing in wind power project, investor can receive preferential of capital, tax, charge, in particular: enjoy preferential according to current regulation on investment credit of the State; is exempt from import tax for goods imported in order to form fixed assets of project, import goods are material, semi-finished products have not yet produced; exemption of and reduction of enterprise income tax for wind power project shall be performed like as for projects belong to fields which are special preferential in investment.

Wind power projects and line work and transformer station to connect with grid of national electricity are exempted, reduced the land use levies, land hire levies according to regulation of current law apply with project belong to field which is special preferential in investment. 

The electric purchaser has responsibility for buying whole electric output from wind power projects with the electric buying price at the point of electric receipt is 1.614 dong/kwh (not yet include VAT, equivalence 7,8 UScents/kwh). The electric buying price is adjusted by changes of rate dong/USD.

The Ministry of Industry and Trade organizes making planning of national wind power development submit to The Prime Minister for approving, announcement and guides, monitors, checks executing of approved national planning of wind power development. People’s Committee of centrally-affiliated cities and provinces (hereinafter referred to as People’s Committee at provincial level where have potential of wind power development, organize making planning of wind power development at provincial level, submit the Minister of Industry and Trade for approving.

Investment for construction of Wind power projects must suitable with planning of wind power development and planning of electricity development at government levels which have been approved by competent agencies. For Wind power projects which have not yet had in the list of approved planning of national wind power development and approved planning of national electricity development, investment owner has responsibility of making dossier to suggest on supplementing planning, send to the Ministry of Industry and Trade to evaluate, submit to The Prime Minister for consideration and decision.

This Decision takes effect from August 20, 2011.

THE AGENCY PRESIDING OVER ODA NEGOTIATION
HAS RIGHT TO CHOOSE SERVING BANK
 

On July 20, 2011, the Ministry of Finance issued the Circular No. 107/2011/TT-BTC amending sub-clause (c), clause 2, Article 1 of the Circular No. 40/2011/TT-BTC dated March 22, 2011 of the Ministry of Finance amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 108/2007/TT-BTC of September 7, 2007, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects.

Accordingly, the rights on approving and choosing banks for serving in ODA projects are transferred to the agency presiding over the specific international treatment on ODA , instead of belonging to the Ministry of Finance as before.

In particular, on the basis of the list of banks qualified for acting as service banks announced by the State Bank of Vietnam and the Ministry of Finance and the written requests of commercial banks, the agency presiding over the specific international treatment on ODA will consider the approval and choice of banks for ODA projects, and inform the negotiation partners for knowing and implementing.

In case more than one qualified commercial bank request to serve a single ODA project, priority shall be given to the following: banks experienced in serving ODA projects; state-owned commercial banks; and joint-stock commercial banks in which the State holds dominant shares.

It is known that serving bank is a commercial bank which is chosen in the list of commercial banks with full conditions to implement the foreign transactions, payments and supply banking services for ODA projects.

To be defined as a serving bank, that bank has to satisfy following conditions: having financial security percentage applied to all credit institutions in accordance with regulations of the State Bank of Vietnam; having operation area suitable with operation area of ODA projects and committing to comply with regulations of the Government, the Ministry of Finance and regulations of the sponsors on ODA capital management.

THE PREFERENTIAL IMPORT TARIFF OF 10% IS APPLIED TO
COMPOUND STEEL
 

On July 11, 2011, the Ministry of Finance issued the Circular No. 103/2011/TT-BTC amending, supplementing clause 75, section II, Appendix III issued with the Circular No. 184/2010/TT-BTC dated November 115, 2010 of the Ministry of Finance.

Accordingly, Compound steel in the group 7225, 7226, 7227, 7228 (not including laminated steel, flat or hot-rolling steel in the group 7225, 7226) satisfies criteria at

the regulations at point f, clause 1 notes at the top of Chapter 72 of the Preferential Import Tariff and is the steel having Bo component with the content of 0,008% and above (Bo is the sole component deciding the steel factor of other compound steel) applies the preferential import tariff of 10%”.

This Circular takes effect on August 25, 2011./.

IMPORT TAX RATE FOR CASHEW NUT IS REDUCED TO 3%
 

On July 11, 2011, the Ministry of Finance issued the Circular No. 102/2011/TT-BTC amending preferential import tax rate for commodity group of cashew (cashew nut) in the code 0801.31.00.00  in the Preferential Import Tariff.

Accordingly, from August 25, 2011. the preferential import tax rate for commodity group of unbarked cashew (cashew nut) in the code 0801.31.00.00 prescribed at the Preferential Import Tariff according to the list of dutiable commodity groups attached to the Circular No. 184/2011/TT-BTC of the Ministry of Finance is reduced from 5% to 3%.

Information from Vietnam Cashew Association (Vinacas) shows that current output of cashew nut only satisfies half of capacity for production, and the remain depends on import sources. While, price of collection cashew nut from import sources seem to increase higher than sources of domestic collection in recent years.

Reduction in import tax of cashew nut will help businesses in remaining material import, increasing production capacity, bringing foreign currencies for our country as well as creating competitive advantages in material import rather than other production countries; at the same time, contributing to supply jobs for labors.