Legal Document Updates in English (29/2012)

CLARIFYING VIETNAM’S SOVEREIGNTY OVER THE TWO ARCHIPELAGOS
OF HOANG SA AND TRUONG SA
 

In order to prevent the series of problems related to the sovereignty dispute over the two archipelagoes of Hoang Sa (Paracel) and Truong Sa (Spratly) with China in the East Sea; On June 21, 2012, the National Assembly promulgates the Law on Vietnamese sea No. 18/2012/QH13 so as to take advantage of international support in dealing with the dispute on sea, at the same time, clarifying the sovereign right and national jurisdiction of Vietnam in the East Sea.

Of which, this Law clarifies that the Hoang Sa (Paracel) archipelago, the Truong Sa (Spratly) archipelago and other archipelagoes are under Vietnam’s sovereignty, sovereign right and national jurisdiction in the first article of the Law.

This Law also regulated that when this Law and another law provide differently for the same issue related to sovereignty, legal regime of Vietnam sea areas, the provisions of this

Law shall apply. But, when a treaty to which Vietnam is a contracting party contains provisions different from those of this Law, the provisions of that treaty shall apply.

MUST PUBLICLY ANNOUNCE THE PARTICIPATION IN DEPOSIT INSURANCE
 

On July 20, 2012, the Government issued the Decree No. 57/2012/ND-CP on the financial regulations applicable to branches of foreign banks.

Of which, branches of foreign banks and credit institutions are responsible for participating in deposit insurance and preservation as prescribed by law and announce the participation in deposit insurance and preservation at the head office and branches.

Under this Decree, branches of foreign banks and credit institutions must sustain the actual value of the charter capital or the provided capital at least equal to the legal capital as prescribed by the Government. Branches of foreign banks and credit institutions must publicly announce the new charter capital or provided capital when the charter capital or provided capital is changed.

capital of the credit institution), to extracting 10% into the financial reserve fund. The expired loss recovery in the previous years shall be deducted from the profits before enterprise income tax and distribute profits to the contributors under the contract (if any).

For other branches of foreign banks and credit institutions, the distribution of profits after enterprise income tax are proceeded as follows: extracting 5% into the charter capital accumulation reserve fund of the credit institution or into the provided capital accumulation reserve fund of the branches of foreign banks; Extracting 10% into the financial reserve funds. The distribution of the remaining profit shall be decided independently by branches of foreign banks and credit institutions.

REDUCING THE INVESTMENT CAPITAL FOR SPECIAL-USE FOREST
 

On June 01, 2012, the Prime Minister promulgated the Decision No. 24/2012/QD-TTg on investment policy of special-use forest development, stage 2011 – 2020.

Under the Decision, the Prime Minister clearly determines that the State has invested in building of infrastructure and material facilities and ensures the fund for the operation of the management machine and forest protection, conservation and monitoring of biodiversity, scientific research, human resource training, and propagation and education of forest protection and improve people's lives in special use forest and buffer zone.

Besides, the State encourages the development of activities of forest environment services, performing eco-tourism business in special use forests in accordance with law to generate revenues to offset the costs, raising income for officials, public

servants and employees and gradually replacing investment from the state budget.

The objective of promulgating investment policies and encourage special forest development is to increase the investment efficiency; Ensuring the close supervision of the management agencies of all levels for special use forests, while increasing the initiative of the special-use forest management board in operations of business and management of services in the special-use forests in order to increase revenues in the special-use forests in the principle of conservation associated with development.

This Decision shall take effect from July 20, 2012 and the previous provisions contrary to the ones of this Decision shall be annulled.

PUBLIC EMPLOYEE EXAMINATION INCLUDES 4 SUBJECTS
 

On April 12, 2012, the Government issued the Decree No. 29/2012/ND-CP on recruitment, employment and management of public employees.

Public employees shall take exams on four subjects as regulated under this Decree including: general knowledge exam (written exam on the law on public employees; the Party's undertakings, line and policies and the State's laws), professional knowledge and skill exam, foreign language test and computer skill test.

Office computer skill and foreign language tests for public employee candidates shall be held according to professional title criteria and requirements of working positions. In case working positions require the use of ethnic minority languages, candidates shall take an ethnic minority language test instead of foreign language test. Heads of agencies competent to recruit public employees contents of ethnic minority language test.

This Decree also regulates some exceptional selection for recruitment. Specifically, persons with at least 3 years' working experience in the sector or field with recruitment needs and immediately meeting requirements of vacant working positions; Persons possessing a university degree with distinction or a master or doctoral degree in a training discipline relevant to vacant working positions, unless vacant working positions and professional titles of to be-recruited public employees require masters or doctors; Talented persons or persons with special gifts for working positions in the sectors of culture, arts, physical training and sports and traditional trades or occupations.
This Decree takes effect on June 1, 2012 and annuls the Government's Decree No.116/2003/ND-CP of October 10, 2003 and Decree No. 121/2006/ND-CP of October 23, 2006.

REDUCING AT LEAST 25% OF FARES FOR THE DISABLED
 

This is one of the contents regulated under the Decree No. 28/2012/ND-CP dated April 10, 2012 of the Government detailing and guiding a number of articles of the Law on The disabled.

The disabled will receive a reduction of at least 25% of fares for train, tram, ship and coach services on fixed routes. Besides, people suffering from particularly serious impairments and people suffering from serious impairments are eligible for other incentives such as: being exempt from fares or service charges when using bus or a reduction of at least 15% for air ticket.

Under this Decree, production and business establishments employing disabled people accounting for at least 30% of total employees are allowed to enjoy the

incentives such as: Exempted from enterprise income tax in accordance with law provisions on tax; Receiving support for improving working conditions and environment suitable for the disabled; Receiving low-interest loans under the production and business development project from Social Policy Banks…. The Ministry of Labor, War Invalids and Social Affairs shall guide the determination of the percentage of disabled employees, the procedures and dossiers for production and business establishments employing disabled people accounting for at least 30% of total employees to enjoy the incentives.

BANNING THE IMPORT OF USED MICROPHONES, FROM SEPTEMBER 01, 2012
 

This is one of the contents regulated under the Circular No. 11/2012/TT-BTTTT dated July 17, 2012 of the Ministry of Information and Communications providing a list of used information technology products banned from import.

Specifically, the Minister of Information and Communications decides, from September 01, 2012, to ban some used information technology products such as: microphones and stands therefore; loudspeakers, whether or not mounted in their enclosures; audio-frequency electric amplifiers; electric sound amplifier sets; Radar apparatus, radio navigational aid apparatus and radio remote control apparatus; reception apparatus for television; Ultra-short-wave tubes.

These above regulations are not applied to those imported for provision of repair, renewal and remanufacture services and re-export product after production; Those imported for use as direct production means or specimens in designing, research and development (R&D) activities; Those re-imported after being brought abroad for warranty, maintenance, repair or renewal; Import to service for other special purpose…

This Circular replaces the Circular No. 43/2009/TT-BTTTT, of December 30, 2009 of The Minister of Information and Communications and takes effects from September 01, 2012.

SUPPORTING VND 207/KWH FOR PURCHASING WIND POWER ON GRID TIE
 

On June 08, 2012, the Ministry of Finance issued the Circular No. 96/2012/TT-BTC making guidelines on financial mechanism to support the electricity price of wind power projects on grid tie.

Subjects supported the electricity price by the State through the Vietnam Environmental Protection Fund is the Vietnam Electricity (EVN) to purchase electricity from enterprises producing, operating and selling electricity from wind power projects.

The rate of electricity price support to the Buyer for the whole power output purchased from wind power plant on grid tie is VND 207/kWh and rate of electricity

price support shall be changed as decided by the Prime Minister from time to time

The buyer is obliged to buy all electricity produced from wind power plants on grid tie under their management area. The electricity sale and purchase is done through a power sale contract made under the form of power sale contract form applicable to wind power projects on grid tie issued by the Ministry of Industry and Trade.