Legal Document Updates in English (34/2012)

TIME FOR BUSINESS ADVANTAGE VALUE’S ALLOCATION
NOT EXCEEDING 10 YEARS
 

Time for allocation of business advantage value to the joint-stock companies transformed from state-owned companies shall be no more than 10 years since the joint-stock companies are officially put into operation. This is one of the contents regulated under the Circular No. 138/2012/TT-BTC dated August 20, 2012 of the Ministry of Finance guiding the allocation of business advantage value to the joint-stock companies transformed from state-owned companies.

Besides, the allocation time of no more than 10 years is also applied if the enterprises have not implemented the allocation of business advantage value to enterprises’ expenses since the joint-stock companies implement the

CREDIT INSTITUTIONS ALLOWED TO PROVIDE LOANS IN GOLD
 

In order to enhance the safety in banks' operations, the Governor of the State bank of Vietnam promulgates the Circular No. 24/2012/TT-NHNN amending and supplementing Article 1 of the Circular No.11/2011/TT-NHNN dated April 29, 2011 of the Governor of the State Bank of Vietnam providing for termination of mobilization of deposits and lending in gold by credit institutions.

Accordingly, from August 23, 2012, the Governor of the State bank of Vietnam allows credit institutions provide loans in gold among a few credit institutions with each other except for special case of assurance of banks' operations (According to the previous regulations, loans in gold must be determined and decided by the Governor).

At the same time, the State Bank of Vietnam also stressed the viewpoints specified under the Circular No. 11/2011/TT-NHNN dated April 29, 2011. Specifically, credit institutions shall not be authorized to provide loans in gold to customers and other credit institutions (including any credit contract that has already been signed but not disbursed yet or not fully disbursed yet); not to deposit gold at other credit institutions; not to perform entrustment, investment operations and other forms of credit extension in gold; 

This Circular takes effect on August 23, 2012.

THE STATE BANK MONOPOLY OVER GOLD BAR PRODUCTION
 

In order to tighten the control of the gold bar business and determine the management of the State bank of Vietnam, the Governor of the State Bank of Vietnam issued the Decision No. 1623/QD-NHNN on the gold bar production organization and management of the State Bank of Vietnam.

Accordingly, on the basis of target on operation of the monetary policy and gold bar supply and demand in the market, the State bank assigns the SaiGon Jewelery one-member limited liability company – SJC (hereinafter referred to as SJC) produce gold bars with 99.99% content, en-graved letters and figures indicating weight, quality and symbol code of SJC (hereinafter referred to as SJC gold bar). As a result, SJC is not allowed to continue producing the gold bar anymore, they are only allowed to process as the request of the State bank. Limited level, production time and gold material source will be decided by the State Bank.

Under this Circular, credit institutions, enterprises business in gold bar trading as prescribed by law shall send a written proposal to the State bank (Department of Foreign Exchange Management) for permit of shifting non-SJC gold bars with lawful and valid origin into SJC gold bars. SJC performs reprocessing SJC gold bars under the written approval of the State bank.

At the same time, the Governor of the State Bank decides establishment of the supervision team of State bank’s Ho Chi Minh City branch in order to supervise the processing gold bars from gold materials, by the way, regulate in detail the responsibility of relevant agencies, organizations.

This Decision takes effect on the signing day.

LOWER ONE SALARY LEVEL TO PERSONS HAVING GRADUATED
FROM VOCATIONAL COLLEGES
 

On August 27, 2012, the Ministry of Labor, War Invalids and Social Affairs promulgated the Circular No. 20/2012/TT-BLDTBXH amending a number of articles of the Circular No. 25/2011/TT-BLDTBXH, of September 26, 2011 of the Ministry of Labor, War invalids and Social affairs guiding salary grading for persons having graduated from vocational colleges, or secondary or elementary vocational schools working in enterprises.

Of which, one of the notable points is the regulation to lower one salary level for persons having graduated from vocational colleges, secondary vocational schools and working as record keepers, service staff….Specifically, persons having graduated from vocational colleges, secondary vocational schools and working as record keepers, they shall receive salaries at level 3 and level 2

respectively (the previous regulation is level 3 and level 2) of the record-keeper title. Likewise, service staff who having graduated from vocational colleges, secondary vocational schools shall receive salaries at level 4 and level 3 respectively of the service staff title according to the salary table of executive and service staff.

Besides, salary level for persons having graduated from vocational colleges and working as technical staff or technicians, Workers or direct production and business staff with 2 levels still keep at the same level, level 2 of the technical staff or technician title according to the salary table of professional public employees and level 1 of the titles in the corresponding salary scale.

This Circular takes effect on October 15, 2012

BY 2013, GDP GROWTH RATE ACHIEVES 6.0-6.5%
 

In order to raise growth quality in association with restructuring the economy and further stabilizing the macro economy as well as assure sustainable economic development and to assure social security and welfare and improve the people’s living standards, the Prime Minister promulgated the Directive 19/CT-TTg of June 18, 2012, on the formulation of the socio-economic development plan and state budget estimate for 2013 and the state budget-funded investment plan for three years 2013 – 2015.

Specifically, the Prime Minister points out some social and economic development tasks by 2012 to relevant Ministries, sectors and agencies as follows: implement policy solutions, first of all monetary, credit, tax and land and administrative reform ones to reduce cumbersome procedures for enterprises and investors in order to remove 

CRITERIA FOR CLASSIFICATION OF PARTICULARLY
SERIOUS MARINE ACCIDENTS
 

On July 20, 2012, the Ministry of Transport issued the Circular 27/2012/TT-BGTVT on the reporting and investigation of marine accidents.

Accordingly, from September 15, 2012, particularly serious marine accident is determined based on new criteria. Particularly serious marine accident is the marine accident causing one of the following damages: killing or missing people; causing entire loss for ship; spilling oil into the sea from 100 tons of oil or more, or 50 tons of toxic chemicals or more; blocking navigable channels from 48 hours or more.

Under this Circular, serious marine accident is marine accident not in the above cases and shall be one of the following cases: ship is burned, exploded and stranded from 24 hours or more, damaging its structure and affecting its navigation capacity; spilling oil into the sea less than 100 tons of oil or more, or less than 50 tons of toxic chemicals; blocking navigable channels from 24 to 48 hours.