Legal Document Updates in English (29/2011)

PLOT MANAGEMENT OF SALARY MANAGEMENT AT VIETTEL
IN THE 2011 – 2013 PERIOD

Government issued the Decree No. 65/2011/ND-CP dated July 29, 2011 on the pilot implementation of salary management for Parent company – Viettel Group in the 2011 – 2013 period.
According to this Decree, the Ministry of National Defense takes prime responsibility, coordinate with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance to stabilize salary unit price in accordance with total revenue target minus unpaid salary expenses for Viettel Group in the 2011 – 2013 period.  Unit price of stabilized salary is defined basing on average salary price which is calculated in accordance with total revenue target minus unpaid salary expenses that Viettel Group has implemented in the 2007 – 2010 period.
On the implementation of stabilized salary price in accordance with regulations at sub-clause (2) of this clause, Viettel Group must satisfy 04 conditions: To finish well all tasks of national defense, security appointed by the Party and State; To pay to state budget in accordance with legal regulations; The increasing level of average salary must be lower than increasing level of average productivity; Annual profit must be higher than profit in the previous year at least 5%.

Viettel Group’s annual salary fund is defined salary unit price and the target of total revenue target minus unpaid salary expenses. In the case that Viettel Group cannot ensure the profit target and productivity, salary fund must be deducted to ensure all conditions under regulations.

Basing on salary fund, Viettel Group will be responsible for building salary payment regime for labors, ensuring democracy, justice, publicity, transparency and attaching salary with the completion of production, business, encouraging employees who have skills, professional knowledge, technique, high productivity to contribute more to Viettel Group.

AVERAGE INCOME PER CAPITA OF POOR HOUSEHOLDS
WILL INCREASE 3.5 TIMES TO 2020 TARGET

On May 19, 2011, the Government issued the Resolution No. 80/NQ-CP on sustainable poverty reduction during 2011-2020

Accordingly, sustainable poverty reduction is a central issue of the 2011-2020 socio-economic development strategy aimed at improving and incrementally raising the living conditions for the poor, first of all those in mountainous and ethnic minority areas; to make strong and comprehensive improvements in poor areas; and to narrow the gap between urban and rural areas, among regions, ethnic minorities and population groups.

In particular, the average income per capita of poor households will increase 3.5 times; the rate of poor households will drop 2% a year, particularly 4% in poor districts and communes by poverty standards set for each period; the poor’s living conditions will be markedly improved, first of all in health, education, culture, daily-life water and housing; the poor will have more and more convenient access to basic social services; socio-economic infrastructure facilities in poor districts and communes and extremely disadvantaged villages and hamlets will receive concentrated and synchronous investment according to new-countryside standards, first of all essential infrastructure such as transport, electricity and daily-life water supply.

The Resolution also introduces 06 general poverty reduction support policies, including: Support for the poor’s production, vocational training, job creation and income increase; Support for education and training; Support for health and nutrition; Housing support; Support for the poor to access legal aid services; Support for the poor to enjoy culture and information.
Besides, the Government will also apply specific poverty reduction support policies poor households in border villages and hamlets outside poor districts, if unable to afford enough food, are entitled to 15 kg of rice/member/month. National target programs, programs and projects funded with government bond capital or ODA capital and other programs must concentrate activities and resources on early investment in poor districts and communes in order to accelerate poverty reduction in these areas.

TOWARD UNIVERSALIZATION OF PRESCHOOL EDUCATION
FOR FIVE-YEAR-OLD CHILDREN

On May 11, 2011, the Government issued the Decree No.  31/2011/ND-CP amending and supplementing a number of articles of the, Government's Decree No. 75/2006/ ND-CP of August 2, 2006, detailing and guiding a number of articles of the Education Law.

In which, amends and supplements on universalization of education are most attracted, the State shall universalize preschool education for five-year-old children, primary education and lower secondary education. People's Committees of all levels shall guarantee that all six-year-old children attend grade 1; universalize primary education and lower secondary education; consolidate, maintain and improve the quality of primary education and lower secondary education universalization and fight against illiteracy.

inspection according to the set standards of education universalization and report in writing self-inspection results to authorities competent to accredit the satisfaction of standards.

The Decree also supplements regulations on education quality assessment organization that are established when having suitable establishment scheme with network plan of education quality assessment organizations and sufficient education quality assessors who satisfy all set criteria for education quality assessment.

To be licensed to conduct education quality assessment, an education quality assessment organization must obtain an establishment decision or decision permitting the establishment issued by the Minister of Education and Training; and have physical foundations, equipment, personnel and finance satisfying the requirements of education quality assessment activities.

VIETNAM POST IS APPOINTED TO SUPPLY PUBLIC SERVICES
 

On August 03, 2011, the Prime Minister issued the Decision No. 41/2011/QD-TTg on appointing enterprises to maintain, manage public post network, and supply services of public interest post and international post.

In particular, Vietnam Post (VNPost) is the enterprise to maintain, manage public post network; to supply public interest post service in accordance with tasks and plans appointed by the State; to supply international post  and other services in the the framework of international treaties on post that Socialist Republic of Vietnam is a member.

The Prime Minister also appoints the Ministry of Information and Communication takes the prime responsibility, Ministry of Finance and relevant ministries, industries within their functions and tasks will cooperate together with Vietnam Post in supplying public interest post service.

The Ministry of Information and Communication guides Vietnam Post in supplying international post services; regulates in details about scope, rights and obligations of Vietnam Post when joining in international post organizations.

Vietnam Post shall be responsible in implementing Vietnam legal regulations on maintaining, managing public post network, supplying public interest post service, supplying international post service and other regulations in international treaties on post that Vietnam has signed; joining in activities in organizations directly under Universal Postal Union (UPU), Asian-Pacific Postal Union (APPU).

INCREASE EXPORT TAX FOR GOLD TO 10% TO STOP GOLD MATERIAL BRAIN
 

The Ministry of Finance issued the Circular No. 111/2011/TT-BTC dated August 02, 2011 amending some regulations on export tax of some gold commodities in the Export Tariff.

According to previous regulations, goldsmith and spare parts of goldsmith made by gold with the weight of over 01 ounce troy (0,8294 tael) which has component of over 99% shall be submitted to tax of 10%.

However, for the issuance of new List, from August 06, 2011, gold products (including platium gold) with component of under 99,99%; goldsmith, industrial products and spare parts of goldsmith, industrial products and other products made by gold with gold component from 80% and above will pay 01 import tax rate of 10% instead of 0% as current regulation.

This is considered as a solution in tightening management of Government and Ministry of Finance before the current situation that enterprises are making use of regulations on export tax, they only manipulate golden jewelry, goldsmiths under ounce and having component under 99% in order to export without paying tax.

PILOT GUIDANCE OF E-CUSTOMS CLEARANCE FOR SEAGOING SHIPS
 

On May 13, 2011, the Ministry of Finance issued the Circular No. 64/2011/TT-BTC guiding the Prime Minister’s Decision No. 19/2011/QD-TTg of March 23, 2011, on the pilot acceptance of electronic cargo declarations and other relevant documents and pilot application of e-customs clearance for seagoing ships on entry and exit.

Accordingly, shipping companies/shipping agents send a notice of participation; for a ship which is co-operated by many shipping companies/shipping agents, the company/agent participating in the pilot application of e-customs procedures shall request co-operating companies/agents to create and send e-information.

In case a shipping company/shipping agent lacks sufficient details on the house bill of lading such as those on goods descriptions, consignor and consignee, the forwarding company that has issued such bill of lading shall create and send detailed information on the house bill of lading via electronic means to the e-Portal of the General Department of Customs according to a roadmap guided by the General Department of Customs.

District-level border-gate Customs Departments which carry out procedures for ships on entry shall check, synthesize and analyze customs declaration information available on the system. In particular, if customs declaration information is lawful and reliable, customs offices shall effect customs clearance for ships under Article 9 of this Circular; if detecting any signs of violation of the customs law and other relevant laws, customs offices shall coordinate with port authorities and other functional agencies in handling violators according to Clause 3, Article 51 of the Customs Law.

After the ship anchors at a safe place designated by the port authority and all entry procedures with other management agencies are completed, the shipping company/shipping agent shall send a notice of ship arrival via electronic means to the district-level Customs Department which has carried out procedures for the ship. The time for sending a notice of ship arrival shall be determined to be the time when imports carried on board the ship arrive at a Vietnamese border gate, to serve the implementation of relevant management policies.

This Circular takes effect on June 28, 2011.

EXEMPTION FROM CHECKING IN AND AFTER CUSTOMS CLEARANCE
FOR PRIORITIZED BUSINESSES
 

On May 13, 2011, the Ministry of Finance issued the Circular No. 63/2011/TT-BTC providing the pilot application of the priority regime in the state management of customs to eligible businesses.

Accordingly, prioritized businesses must have the lowest risk level and fully satisfy the 07 conditions: Having a record of the observance of the customs, tax, commercial, investment and enterprise laws or having been administratively sanctioned for their violations at the lowest sanctioning level; Having great export and import turnovers; practicing a transparent accounting regime; Conducting efficient business operations; Making via-bank payments for all of their exported or imported goods; Carrying out e-customs procedures; Requesting to be recognized as prioritized businesses.

The period for assessment of a business’s law observance is 36 (thirty six) months up to the date on which the General Department of Customs receives the business’s written request for being recognized as a prioritized business. Businesses which have operated for between over 12 months and under 36 months and satisfy the conditions may also be considered for being recognized as prioritized ones.

To condition of export and import turnover, the Circular regulates that businesses eligible for priorities in export and import of all goods items and in all forms of export and import, the export or import turnover must be at least USD 500 million/year; businesses eligible for priorities in export of fisheries products, farm produce and crude oil purely originating in Vietnam the export turnover must be at least USD 100

million/year; Businesses eligible for priorities in import of goods for production and export of hi-tech products, the General Department of Customs shall determine a specific export or import turnover appropriate to the characteristics of production and management technologies applied to each goods item.

Enterprises with full conditions will receive priorities at the stage of customs clearance: exemption from detailed examination of customs dossiers and exemption from physical inspection of goods; not conduct post-customs clearance inspection at the offices of these businesses; application of e-customs procedures (e-dossiers are exempt from inspection and replies are issued 24 hours a day and 7 days a week); priority in payment of duties and customs charges once per month; application of the regime of duty refund and liquidation first and inspection later

Also according to this Circular, the duration for a business to enjoy the priority regime for the first time is 12 months after the General Department of Customs signs a decision on application of the priority regime to this business. Upon the expiration of this duration, the General Department of Customs shall conduct revaluation and, if the business still satisfies the specified conditions, may extend the duration of application of the priority regime in many times and each extension shall be 36 months.