Legal Document Updates in English (38/2011)

04 ARBITRATION CENTERS HAVE LICENSE OR
OPERATION REGISTRATION PAPER REVOKED
 

The Government issued the Decree No. 63/2011/ND-CP dated detailing and guiding a number of Articles of the Law on Commercial Arbitration on the management of arbitration; procedures for registration or termination of operation, revocation of establishment licenses and operation registration papers of arbitration centers and arbitration center branches; procedures for establishment, registration or termination of operation, revocation of establishment licenses and operation registration papers of Vietnam-based branches or representative offices of foreign arbitration institutions and so on.

Also according to this Decree, dossiers of application for grant, re-grant or modification of establishment licenses and operation registration papers, dossiers for termination of operation of arbitration centers, branches of arbitration centers, Vietnam- based branches or representative offices of foreign arbitration institutions may be filed directly at, or sent by post to, competent agencies.

Within 15 days after receiving a valid dossier, the provincial-level Justice Department shall grant an operation registration paper to the arbitration center. Within 7 working days after granting an operation registration paper to an arbitration center, the provincial-level Justice Department shall send one copy of this paper to

the Ministry of Justice. After being granted an operation registration paper, an arbitration center shall announce its establishment and have a seal carved in accordance with law. An arbitration center may commence its operation from the date it is granted an operation registration paper.

Besides, an arbitration center will have its establishment license or operation registration paper revoked if it repeats a violation for which is has been administratively sanctioned; it fails to conduct any activity stated in its charter or establishment license in 5 consecutive years after being granted an operation registration paper; it fails to register its operation within 30 days after obtaining its establishment license with the provincial-level Justice Department of the locality in which its head office is located; it fails to amend or supplement its charter or rules of arbitration proceedings within 12 months after the effective date of the Law on Commercial Arbitration.

RECOGNIZED AS AN URBAN CENTER OF TYPE III BEFORE A PROVINCIAL CITY
 

On July 26, 2011, the Government issued the Decree No. 62/2011/ND-CP on the establishment of provincial cities, towns, urban districts, wards and townships, and regulates 10 criteria to establish provincial cities.

In particular, a provincial city may be established when it fully meets criteria as having been recognized as an urban center of graded or higher by a competent authority; having a population of at least 150,000; having a population density of at least 6,000 people/km² in the inner area; having a non-agricultural labor force in the inner area accounting for at least 80% the total workforce; having the industry-construction and trade-services tourism sectors accounting for at least 80% of the economic structure; hiding an urban infrastructure system reaching the criteria on the grading of urban centers; having its master plan approved by a competent authority and having detailed master plans for at least 70% of its dependent administrative units; having at least two-thirds of its dependent commune-level administrative units being wards; having a synchronous construction duration of at least one year.

Also according to this Decree, 01 among 10 criteria to establish provincial cities is Urban functions: Being a provincial capital acting as a provincial-level general center and traffic and exchange hub or being a provincial-level urban center acting

as an inter-provincial specialized center and traffic and exchange hub, with the role of promoting socio-economic development of an intra-provincial territory, a provincial" some sectors in an inter-provincial territory.

Besides, a town of a province or centrally run city may be established when it fully meets criteria as having been recognized as a grade-IV urban center by a competent authority; having a population of at least 50,000; having a population density of at least 4,000 people/km² in the inner area; having a non-agricultural labor force in the inner area accounting for at least 75% of the total workforce; having the industry-construction and trade-services-tourism sectors accounting for at least 75% of the economic structure and so on.

At the same time, an urban district of a centrally run city may be established when it fully meets criteria as having a population density of at least 10,000 people/km²; having a non-agricultural labor force accounting for at least 90% of the total workforce; having the industry-construction and trade-services-tourism sectors accounting for at least 90% of the economic structure and so on.

REDUCE EXPORT TAX RATE OF COPPER STEN TO 15%
 

The Ministry of Finance issued the Circular No. 135/2011/TT-BTC dated October 03, 2011 of the Ministry of Finance amending the export tax rate of Copper Sten in the commodity group 74.01 in the Export Tariff.

Accordingly, the export tax rate of Copper Sten in the commodity group 74.01 in

the Export Tariff according to the List of dutiable commodity groups issued with the Circular No. 184/2010/TT-BTC dated November 15, 2010 is reduced to 15% instead of 20% as previous regulations.

The tax rate of 15% is applied from November 16, 2011.

USING 147 GATEWAY WITH THE CHARGE OF VND 630/MESSAGE
TO VOTE FOR HA LONG BAY

The Ministry of Information and Communications issued the Decision No. 1590/QD-BTTTT  on message service and charges for messages which are used for voting Ha Long bay as New Natural Wonder of the world.

147 gate way is used to serve to the campaign for voting Ha Long bay as a New Natural Wonder of the world via messages of fixed telephone network and mobile phone networks.

Charge of messages serving to the campaign for voting Ha Long bay as a New Natural Wonder of the world is 630 dong/message (included 10% VAT) with no difference between free time and busy time.

The percentage of charge division from fixed phone subscribers and mobile phone subscribers to 147 gateway is regulated as follows: the Ministry of Culture, Sports and Tourism receives 330 dong/message (included VAT) serving to the campaign

for voting Ha Long bay as a New Natural Wonder of the world in accordance with agreements with international organizations and legal regulations; the Vietnam Multimedia Corporation (VTC) receives 120 dong/message; telecommunications enterprises that have subscribers send messages to the 147 gateway receive 180 dong/message.

The Minister of Information and Communications also appoints the Vietnam Multimedia Corporation (VTC) to open the 147 gateway using the 1400 Gateway’s available infrastructure in accordance with legal regulations. Telecommunications enterprises shall be responsible for coordinating with the Vietnam Multimedia Corporation to operate message service via the 147 gateway serving to the campaign for voting Ha Long bay as a New Natural Wonder of the world.

LIST OF 04 TELECOMMUNICATIONS EQUIPMENT AND
RADIO STATIONS SUBJECT TO VERIFICATION
 

On June 30, 2011, the Ministry of Information and Communications issued the Circular No. 17/2011/TT-BTTTT promulgating the List of telecommunications equipment and radio stations subject to verification.

Accordingly, 04 telecommunications equipment and radio stations subject to verification are public mobile phone base earth stations', charge-recording systems of public telecommunications switchboards, radio stations, television stations.

The Circular also regulates clearly the application time for different telecommunications equipment and radio stations. Within that, applicable time to public mobile phone base earth stations within a radius of 100 m measured from any antenna of which inhabited construction works are located is August 15, 2011.

For switchboards of public land fixed telecommunications networks; switchboards of public land mobile telecommunications networks with charge recording to serve the billing of telephone services are applied from July 01, 2012 and from January 01, 2013, it is applied to to radio and television stations with the maximum output power of 150W or more.

VERIFICATION IS COMPULSORY FOR NEWLY INSTALLED
TELECOMMUNICATIONS EQUIPMENT AND RADIO STATIONS
 

This is new regulation that the Ministry of Information and Communications promulgated at the Circular No. 16/2011/TT-BTTTT dated June 30, 2011 on verification of telecommunications equipment and radio stations.

Accordingly, telecommunications network equipment and charge-calculation metering devices which must comply with national technical regulations; a radio equipment or a combination of radio equipment, including accessory equipment, which arc arranged for carrying out a radio-communication service and must comply with national technical regulations on radio radiation safety.

Within thirty (30) days after the effective date specified in the List of telecommunications equipment and radio stations subject to compulsory verification, organizations and enterprises shall send written reports to the Vietnam Telecommunications Authority, enclosed with the list of telecommunications equipment and radio stations subject to compulsory verification which have been put into use but not yet been verified.

Besides, extraordinary verification is applied for telecommunications equipment and radio stations already verified but seeing changes in excess of the allowable safety limit indicated in verification certificates or detected by state management agencies to be no longer conformable with national technical regulations, within thirty (30) days after such changes occur or after such detection, enterprises shall re-verify them according to the procedures.

Organizations and enterprises shall pay verification charges to verification organizations before verification within fifteen (15) days after verification organizations notify verification charges. If organizations or enterprises fail to pay verification charges within the specified time limit, verification organizations may refuse to conduct verification and notify in writing organizations and enterprises thereof.

MULTI-LEVEL SALE REGISTRATION NEEDS NO
COMMUNE-LEVEL POLICE OFFICE'S CERTIFICATION
 

On September 23, 2011, the Ministry of Industry and Trade issued the Circular No. 35/2011/TT-BCT amending, supplementing some contents of administrative procedures at the Circular No. 195/2005/TT-BTM dated November 08, 2005 of the Ministry of Trade guiding some Regulations in the Decree No. 110/2005/ND-CP dated August 24, 2005, on management of multi-level sale of goods.

Accordingly, a dossier of application for a multi-level sale registration paper shall comprise the documents specified in Article 15 of Decree No. 110/2005/ND-CP dated August 24, 2005 of the Government on management of multi-level sale of goods, within that copies of the business registration certificate and copies of the

certificate of satisfaction of business conditions are notarized copies (for the cases submitting dossiers via post); photocopies attached with originals (for the case submitting dossiers directly); or scans from originals (for the cases submitting dossiers via Internet);

When proposing the issuance of multi-level sale registration paper, the commune-level police office's certification that the enterprise has declared the loss of its multi-level sale registration paper is not required.

GUIDING THE MODEL CONTRACT FOR WORK CONSTRUCTION
 

On June 28, 2011, the Ministry of Construction issued the Circular No. 09/2011/TT-BXD of June 28, 2011, guiding the model contract for work construction applicable to projects with 30% or more state capital, including: state budget capital, official development assistance (ODA) capital, state development investment credit capital, state-guaranteed credit capital and other state investment capital.

Subjects of application are organizations and individuals related to the signing and the performance of the construction contracts, inspection, examination, auditing and payment of investment capital of construction works under projects with 30% or more state capital. And organizations and individual related to construction contracts under projects with less than 30% state capital are encouraged to apply this Circular.

The model construction contract promulgated together with this Circular (not printed herein) consists of two parts: Grounds for contract signing; Clauses and conditions of the contract (25 articles). Based on kinds of contracts, parties shall reach agreement on contract prices and payment dossier as stated in the model contract. A contract may be different contract prices; this model contract is set for all kinds of construction contract (including construction equipment installment under construction design).

The model contract shall be used between investor and contractors. In case the principal is a general contractor or principal contractor, the parties may apply this model contract.

The parties may base themselves on the provisions of the Government's Decree No. 48/2010/ND-CP of May 7, 2010, on contracts in construction activities and other relevant state regulations to reach an agreement on specific provision on job and work volumes, hiring of consultancy service, contract advance payment level, contract performance security, warranty level, payment schedule, payment level for each payment  installment, suspension duration, time of contract termination, work warranty period and similar cases, in their contract.

GUIDING THE MODEL CONTRACT FOR SOME CONSTRUCTION CONSULTANCY JOBS
 

On June 28, 2011, the Ministry of Construction issued the Circular No. 08/2011/TT-BXD of June 28, 2011, guiding the model contract for some construction consultancy jobs including consultancy on work construction survey; consultancy on elaboration of work construction investment projects; elaboration of econo-technical reports on work construction; and consultancy on work construction designing for application to projects with 30% or more state capital.

Subjects of application are organizations and individuals related to construction consultancy contracts, inspection, examination on, auditing and payment of investment capital of construction works under projects with 30% or more state capital.

The model construction consultancy contract promulgated together with this Circular (not printed herein) consists of Grounds for contract signing; Clauses and conditions of the contract. This Circular guides the model construction consultancy contract between investor and contractor. In case the principal is a general contractor or principal contractor, the parties shall apply this model contract.

When applying the model contract, parties shall base themselves on the provisions of the Government's Decree No. 48/2010/ND-CP of May 7, 2010, on contracts in construction activities and other relevant state regulations and the following guidance to reach an agreement in contract. Investors and contractors shall apply the model contract based on specific consultancy jobs of each bid package. For each consultancy job, they shall specify its content and volume, quality and quantity requirements, takeover of consultancy products and payment dossier.

Parties shall specify in the contract the advance payment level, payment schedule, payment installments, contract performance security (if any), time of contract settlement, effective duration of the contract, percentage of the contract price (for contract prices calculated in percentage), termination time of the contract, etc.

FROM OCTOBER 01, CEILING INTEREST RATE OF 6%/YEAR FOR
SHORT-TERM DEPOSITS IS APPLIED
 

The State Bank of Vietnam issued the Circular No. 30/2011/TT-NHNN dated September 28, 2011 of the State Bank of Vietnam prescribing the ceiling interest rate for Vietnam-dong capital mobilizations of institutions, individuals at some credit institutions, foreign bank’s branches.

According to this Circular, credit institutions shall fix annual interest rates, for mobilizing Vietnam-dong capital from institutions (other than credit institutions) and individuals including also sales promotion amounts in any form and  apply ceiling interest rate of 6%/year to non-term deposits and term deposits under 01 month.

Besides, ceiling interest rate of 14%/year is applied for term deposits from 01 month and above; particularly, grassroots People's Credit Funds may fix those annual interest rates not exceeding 14.5%.

The State Bank of Vietnam also requires credit institutions to publicly post up interest rates for their Vietnam-dong capital mobilizations at places of capital mobilization under the State Bank of Vietnam's regulations. They are prohibited from providing sales promotion in cash, interest rate or any other form in contravention of law and this Circular for their capital mobilizations.

This Circular takes effect on October 01, 2011 and replaces the Circular No. 02/2011/TT-NHNN dated March 3, 2011 of the State Bank of Vietnam prescribing the ceiling interest rate for Vietnam-dong capital mobilizations.