Legal Document Updates in English (31/2012)

ISSUING AT LEAST 500,000 BILLION OF GOVERNMENT BONDS
IN THE PERIOD 2016 – 2020
 

On July 27, 2012, the Prime Minister signed the Decision No. 958/QD-TTg approving the public debt and national foreign debt strategy in the period 2011 – 2020 and the orientation towards 2030.

The objective is to issue Government bonds to implement the programs for investment in constructions of traffic, irrigation, health and education for the purpose of fundamentally satisfying the bond capital in the period 2011 – 2015 being totally 225,000 billion VND, averagely 45,000 billion VND/year; issuing at least 500,000 billion in the period 2016 - 2020, 350,000 billion VND thereof is invested in development and the rest is used for refinancing; Minimizing the risk of capital redistribution, liquidation, exchange rates, and currency…The Prime Minister requests the Ministry of Finance, the Ministry of planning

BY 2015, THE MOBILE COVERAGE MAY REACH 90% OF
THE NATIONAL POPULATION
 

This is one of the development targets regulated by the Prime Minister under the Decision No. 32/2012/QD-TTg dated July 27, 2012 approving the Plan for developing national telecommunications until 2020.

Accordingly, the Prime Minister requests the Ministry of Information and Communications and other relevant ministries utilize the internal resources and facilitating the participation of the economic sectors in the telecommunications development; Encouraging and supporting capable enterprises in expanding their business an investing in foreign market on the basis of observing laws and ensuring business efficiency. With the target, by 2015, the mobile coverage may reach 90% of the national population; Over 90% of the communes that have public telecommunications services providers may have broadband internet access. The total revenue from telecommunications may reach 10 – 12 billion USD, accounting for 7 – 8% of GDP.

HNX’S CAPITAL REQUIREMENT LIFTED TO VND 30 BILLION
 

On July 20, 2012, the Government issued the Decree No. 58/2012/ND-CP detailing and guiding the implementation of some articles of the Securities Law and the Law amending Government.

Under this Decree, conditions for stock listing of the joint-stock company at Hanoi Stock Exchange include: the charter capital already contributed at the time of registration for listing of VND 30 billion or more of by the value recorded in the accounting book (the previous regulation is VND 10 billion); There is at least 01 year of operation in the form of Joint Stock Company by the time of registration for listing; the after tax profit rate of return on equity (ROE) of the latest year equal to at least 5%; there is no overdue debt for more than 01 year…

In addition, in order to expand the legal documents related to the operation of securities sector and stock market; creating the basic frame for developing new products,

ELABORATING 1000 NEW NATIONAL STANDARDS
FOR CORE INDUSTRIAL PRODUCTS
 

On May 25, 2012, the Prime Minister signed the Decision No. 604/QD-TTg approving the project “raising productivity and quality of industrial products and goods” under the national program “raise productivity and quality of products and goods of Vietnamese enterprises through 2020”.

The general objective of the project is to raise productivity and quality of core industrial products and goods on the basis of application of management solutions, scientific advances, technological innovations, and investments in order to increase the localization value, thereby contributing to increasing the contribution of total factor productivity (TFP) to the gross domestic product (GDP) growth rate;

and to enable a number of industrial products and goods to join in the global value chain. This decision also points out some specific targets for some industrial sectors by 2010, of which, one thousand new national standards will be elaborated for quality management of core industrial products and goods; four thousand enterprises producing core industrial products and goods will apply scientific advances and technological innovations, management systems, and productivity and quality improvement models and tools.

It is estimated that the contribution ratio of TFP to GDP is increased up to 35% by 2015 and 40% by 2020.

This Decision takes effect on May 25, 2012

FROM OCTOBER 01, 2012, NOT PERMITTED TO CHANGE
TRUCK’S BASIC LENGTH OF TRUCK
 

On July 31, 2012, the Ministry of Transport issued the Circular No. 29/2012/TT-BGTVT stipulating the renovation of motorized means of road transportation.

Motored vehicle after being renovated must meet the standards, technical regulations, regulations, fulfill the requirements on quality and technical safety and environmental protection for the motored vehicle in traffic and must ensure the compliance with the following provisions, specifically, not permitted to renovate other automobiles into passenger automobiles; Not permitted to renovate passenger cars into truck of various types except for the case of renovation of passenger cars of less than 16 seats (including the driver) into van; Not permitted to renovate and change the basic length of truck, even renovating truck into truck of different type and vice versa; No using the systems, components that have been used in the renovation of motored vehicle, except motor components, and specialized equipment.

The motored vehicles that have been renovated according to the design document must be accepted and granted Certificate of quality and technical safety and environmental protection of renovated motored vehicle. Certificate of quality and technical safety and environmental protection of renovated motored vehicle includes two sheets granted to vehicle owner to carry out procedure for inspection and number plate registration and the effective time limit of the Certificate of quality and technical safety and environmental protection of renovated motored vehicle is 06 months from the signing date. In case the vehicle owner let the validity period pass or loses Certificate, he must take the vehicle to the inspection Unit that has accepted for checking and re-granting the Certificate.

This Circular is not applicable to motorcycle and moped, motored vehicle being renovated for use for purpose of national defense and security of the Ministry of Defense and Ministry of Public Security and it shall take effect on October 01, 2012.

MEAT AND BY-PRODUCTS MUST BE SOLD WITHIN 8 HOURS
AFTER SLAUGHTER
 

This is one of the contents regulated under the Circular No. 33/2012/TT-BNNPTNT dated July 22, 2012 of the Ministry of Agriculture and Rural development Circular on the conditions for food safety and hygiene applicable to establishments trading fresh meat and edible by-products from animals.

Specifically, from September 03, 2012, the meat and by-products preserved at normal temperature must be sold within 8 hours after the slaughter. In case, the meat and by-products preserved at 0 – 5^oC must be sold within 72 hours after the slaughter. The by-products being stomachs, large and small intestines preserved at 0 – 5^oC must be sold within 24 hours after the slaughter.

In addition, the Circular also regulates some requirements for meat and by-products such as: the meat and by-

products being sold must have the slaughter control seal or the veterinary hygiene stamp, and the Quarantine certificate from veterinary agencies as prescribed; The packages directly touching the meat and by-products must be made of safe materials without being contaminated by toxic substances nor having unusual smell and taste, and must ensure the quality of unexpired meat and by-products; The packages must be qualified under the regulations; Must not use chemicals for preserving fresh meat and by-products.

At the same time, the Circular also requests the establishment owner and the workers must obtain the food safety education certificates and the health certificates issued by medical establishments at commune level or above (at least once a year).

This Circular takes effect September 03, 2012.

SIX SUBJECTS NOT PERMITTED TO WORKING
AS EMPLOYEE OF TAX AGENT
 

On July 19, 2012, the Ministry of Finance issued the Circular No. 117/2012/TT-BTC guiding the tax procedure services practice.

Accordingly, six subjects not permitted to working as employee of tax agent include: Cases of revocation of certificate of tax procedure services practice; Person who violates legal regulations on tax, customs, audit and sanctioned for administrative violations within one year from the date of the sanction; Person who is being prosecuted for criminal liability or serving imprisonment sentence; Person with limited or lost capacity of civil act; Official and civil servant as prescribed by law for official and civil servant; Official and public servant are resigning but being in the period of ban from doing business as stipulated by the Law.

These subjects are not included in 6 cases above, having college diploma or higher education in the economics,

finance, accounting, audit, law ( economic law specialty) and having working time in this area from two years or more to the date of submission of examination dossier can take the exam for certificate of tax procedure services.

The dossier for exam registration includes: application for exam, curriculum vitae with certification of the competent labor management agency or People’s Committee of Commune, ward or town of residing place, diploma of college or higher education in one of stipulated speciality, identity card or passport, photo, envelopes stamped and clearly specifying full name and address, certificate of number of years of professional work or documents for subject exemption as prescribed.

This Circular takes effect as from October 1, 2012 and replaces Circular No. 28/2008/TT-BTC dated April 03, 2008 of the Ministry of Finance.

AID GOODS’ SALE FOR 2KR PROJECT USED FOR DEVELOPMENT INVESTMENT PROJECTS
 

On May 03, 2012, the Ministry of Finance issued the Circular No. 69/2012/TT-BTC guiding the management and use of the proceeds from the Japanese Government’s non-refundable aid for the Food Security Project for Underprivileged Farmers (2KR project).

Accordingly, the proceeds from the sale of aid goods for 2KR project must be transferred into a separate account at a bank and used for development investment projects.

Based on the agreement stated in the Diplomatic Note between the two governments and related agreements, the Ministry of Planning and Investment shall coordinate with the Ministry of Agriculture and Rural Development, the

Ministry of Finance and the Japanese Government’s representative in selecting projects eligible for using the proceeds from the sale of aid goods under the non-refundable aid of Japanese Government for 2KR project. The total amount of money allocated to the projects must not exceed the total aid amount.

Project owners shall estimate, submit for approval, manage, use, report and finalize their projects’ investment capital under current regulations on capital construction investment, and use capital for proper purposes as stated in the approved projects.

This Circular takes effect on June 15, 2012.