Legal Document Updates in English (40/2011)

DISMISS CIVIL SERVANTS WHO ARE DISHONEST IN MAKING PROPERTY AND INCOME DECLARATIONS
 

On property and income transparency for managing civil servants and contributing to prevent and protect corruption behaviors. the Government issued the Decree No. 68/2011/ND-CP dated August 08, 2011 amending and supplementing a number of articles of the Government's Decree No. 37/2007/ND-CP of March 9, 2007, on property and income transparency.

Persons obliged to declare their property and incomes shall themselves fill in declaration forms and take responsibility for the accuracy, truthfulness and completeness of the declared information. The first-time annual declaration and the additional annual declaration upon changes in declared properly and incomes shall be made according to regulated form. The additional annual declaration shall be carried out only when persons obliged to declare have changes in the total incomes in the declaration period which are valued at VND 50 million or more or changes in to-be-declared properly and incomes as provided for.

New regulations also supplement grounds for verifying properly and incomes in the case of needing more information serving the election, appointment, dismissal, relief from office, or disciplining of persons obliged to declare their property and incomes;

Beside 04 forms of discipline such as reprimand, caution, salary degrading, demotion applied for untruthful property and income declarers, the Decree also supplements new more strict regulations. Accordingly, cadres and civil servants who have been concluded as dishonest in making property and income declarations, shall, depending on the nature and seriousness of their untruthful declaration, be handled in the highest forms of dismissal from office.

Within five days counting from the date of making the conclusion on the untruthful property and income declarations, heads of agencies, organizations or units with disciplining competence shall consider and discipline the untruthful declarers.

THE GOVERNMENT ISSUED THE DECREE ON THE MEASURE
OF COMPULSORY MEDICAL TREATMENT
 

On July, 28, 2011, the Government issued the Decree No. 64/2011/ND-CP stipulating the execution of the measure of compulsory medical treatment in accordance with the Penal Code; the Criminal Procedure Code and the Law on Execution of Criminal Judgments.

Accordingly, at the stage of investigation, if suspecting that a person having committed an act dangerous to the society has no penal liability capacity defined in Article 13 of the Penal Code, the investigative agency currently handling the case shall invite mental medical assessment. If the Council for Menial Medical Assessment concludes that such person suffers a mental disease or another disease that deprives him/ her of the perception or act control capacity, the investigative agency currently handling the case shall send a request for application of the measure of compulsory medical treatment together with the assessment conclusion to the same-level procuracy.

If suspecting that a convict who is serving his/her sentence in a prison or detention camp suffers a mental disease or another disease that deprives him/her of the perception or act control capacity, the prison or detention camp superintendent may request the provincial-le\ el people's court or military zone-level military court of the locality in which the prison or detention camp is located to invite mental medical assessment of such person and decide on the application of the measure of compulsory medical treatment.

Also according to this Decree, the compulsory mental disease treatment establishment designated by the procuracy or court shall receive the person subject to compulsory medical treatment and his/her file, and make a record of his/her receipt. The agency responsible for sending the person to the compulsory mental disease treatment establishment shall immediately notify his/her relatives thereof. If such person has no relatives or his/her relatives are unidentifiable, it shall notify the sending to the administration of the locality in which such person has registered for permanent or temporary residence.

When a person subject to compulsory medical treatment is fully recovered, the head of the compulsory mental disease treatment establishment shall notify it to the agency that has requested the application of the measure for requesting the Council for Mental Medical Assessment to examine the health conditions of such person. Based on the conclusion of the Council for Mental Medical Assessment on the full recovery of the person subject to compulsory medical treatment, the agency that has requested the application of the measure shall request the procuracy or the court that has issued the decision to apply the measure to issue a decision to terminate the execution of this measure.

TO BUILD 131 STORM-SHELTERING ANCHORAGE ZONES
FOR FISHING SHIPS THROUGH 2020
 

On August 09, 2011, the Prime Minister issued the Decision No. 1349/QD-TTg approving the adjusted master plan on storm-sheltering anchorage zones for fishing ships through 2020, with orientations toward 2030.

Accordingly, Storm-sheltering anchorage zones for fishing ships shall be built into a system on the basis of making the fullest use of locations endowed with favorable natural conditions and situated close to fishing grounds or sea areas with high storm frequency and taking into account fishermen's practices to ensure safety for fishermen and fishing ships and minimize the damage caused by storms.

Regional-level storm-sheltering anchorage zones, which must fully satisfy 04 conditions: being located near key fishing grounds where operate fishing ships of many provinces; being located in a sea area with high storm frequency; being

endowed with favorable natural conditions, ensuring safety for fishing ships taking shelter; being capable of accommodating 800 -1.000 fishing ships of various types.

By 2020, there will be 131 storm-sheltering anchorage zones for fishing ships, which are capable of accommodating 84,200 fishing ships, 115 storm-sheltering anchorage zones along the coast, being capable of accommodating 75.650 fishing ships, including 12 regional-level and 103 provincial-level ones; 16 storm-sheltering anchorage zones at islands, being capable of accommodating 8,550 fishing ships, including 5 regional-level and 11 provincial-level ones.

The total investment capital for projects on storm-sheltering anchorage zones for fishing ships through 2020 is VND 11.230 billion. The 2010-2015 period: VND 6,393 billion and investment will be concentrated on the completion of 17 regional-level storm-sheltering anchorage zones as a priority and a number of provincial-level storm-sheltering anchorage zones currently under construction. The 2016- 2020 period: VND 4.S37 billion, and investment will be made in the remaining storm-sheltering anchorage zones under the master plan.

APPROVING THE DETAILED MASTER PLAN ON BELT ROAD 4 WITH
THE LENGTH OF 98 KM AND 6 EXPRESS LANES
 

The belt road shall have 6 express lanes (design speed of 100 km/h) with collector roads and corridors along both sides reserved for planting trees, building technical infrastructure facilities and future expansion. The total width is 120 m. The reserve land strip at some special positions may be narrowed.

This is the planned scale of the belt road 4 which was approved in the detailed master plan on belt road 4 of Hanoi Capital Region, the section south of national highway 18 issued with the Decision No. 1287/QD-TTg dated July 29, 2011.

The belt road will run through the administrative boundaries of 14 districts and cities of 3 provinces and cities: Hanoi city (Soc Son, Me Linh, Dan Phuong, Hoai Duc, Thanh Oai and Thuong Tin rural districts and Ha Dong urban district), Hung Yen province (Van (Jiang, Khoai Chan, Yen My and Van Lam rural districts), Bac Ninh province (Thuan Thanh and Que Vo rural districts and Bac Ninh city)

Route direction includes starting point: Km3+695 on Noi Bai - Lao Cai expressway (in Thanh Xuan commune, Soc Son district, Hanoi) and  the ending point: Km 35+300 on Noi Bai -Ha Long expressway (in Nam Son commune, Bac Ninh city, Bac Ninh province).

The total length of belt road IV's section south of national highway 18 is around 98 km. There are 12 interchanges and some overpasses and tunnels for convenient traffic link between the two roadsides.

The land area used for construction of the road under the master plan is approximately 1.230 ha, including around 740 ha of Hanoi city, some 230 ha of Hung Yen province and about 260 ha of Bac Ninh province. The total investment capital demand for construction of the belt road 4's section south of national highway 18 is estimated at around VND 66.5 trillion (exclusive of funds for construction of overpasses on roads being planned which will be built under investment projects on building such roads).

CULTURAL CONSERVATION AND DEVELOPMENT OF VIETNAMESE ETHNIC MINORITIES
 

The Prime Minister approved the scheme on cultural conservation and development of Vietnamese ethnic minorities through 2020 in the Decision No. 1270/QD-TTg dated July 27, 2011.

Areas of the scheme are mountainous and ethnic minority areas, prioritizing deep-lying, remote and border areas, areas with exceptional difficulties, islands, areas with inhabitants to be relocated for economic development; areas at high risk of loss of cultural identity; and key ethnic minority regions (Northwestern, Central Highlands And Southwestern).

In the stage  to 2015), to basically lift ethnic minorities with very small population (under 5.000) from the status in need of urgent cultural protection and initially promote their typical cultural heritages; 50-60% of villages and hamlets will have cultural bonuses with activities decided and carried out by cultural subjects; to form and develop a cultural life in ethnic minority resettlement areas; 40-50% of cultural workers in ethnic minority areas will be indigenous residents (or other ethnic natives permanently living in the localities and conversant with customs, habits and traditional culture of the indigenous ethnic minorities) who have been professionally trained.

Besides, each district in an ethnic minority area will receive support to develop at least 1 typical traditional trade, folksong, folk dance or tourist activity, contributing to hunger eradication and poverty reduction and socio-economic development.

To archive above objectives, the scheme lists out 07 solutions, and Breakthrough solutions: To-train key personnel for conservation and promotion of ethnic culture at district and provincial levels. To associate conservation and development of ethnic culture with socio-economic development in areas and localities; to ensure harmony between cultural development and economic development and between conservation, promotion and development.

With that, The Government and the People's Committees of provinces with programs on urgent conservation and capacity building for self protection against the threat of cultural loss of ethnic minorities with very small population and formulate provincial, regional and national cultural and art performance programs and festivals of ethnic minorities annually and for 2011-2020.

IMPLEMENTATION OF REGION-BASED MINIMUM WAGE LEVELS FROM OCTOBER 1, 2011
 

The Ministry of Labor, Invalids and Social Affairs issued the Circular No. 23/2011/TT-BLDTBXH dated September 16, 2011 guiding the implementation of regional- based minimum wage levels for laborers working for companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other agencies, organizations employing laborers.

 Regional- based minimum wage levels regulated in this Circular are applied for all enterprises, not excluding enterprises with foreign or domestic investment, as follows: the enterprises that are established, organized, managed, and operate under the Enterprise Law; Cooperatives, unions of cooperatives, cooperative groups, farms, households, individuals and other organizations of Vietnam that employ laborers; Agencies, foreign organizations, international organizations and foreign individuals in Vietnam that employ laborers.

Region-based minimum wage level applies from October 01, 2011 till the end of December 31, 2012 as stipulated in Article 2 of Decree No.70/2011/ND-CP dated August 22, 2011 of the Government as follows: The level of 2,000,000 VND/person/month applies for the enterprises operating in the area of region I; The level of 1,780,000 VND/person/month applies for enterprises operating in the area of region II; The level of 1,550,000 VND/person/month applies for enterprises operating in the area of region III; The level of 1,400,000 VND/person/month applies for enterprises operating in the area of the region IV.

Enterprises operating in the adjacent areas with the various region-based minimum wage levels shall apply the region-based minimum wage level upon area with the highest region-based minimum wage level; Enterprises having units, branches operating in the areas with the various region-based minimum wage levels, the unit or branch operating in a certain area shall apply the region-based minimum wage level of such area.

Also, the lowest wage level required to pay to the employees who have undergone vocational training (including laborers who are trained by enterprises) must be at least 7% higher than the region-based minimum wage level stipulated by the Government. Upon applying the provisions of this Circular, the enterprises must not remove or cut the wage regimes when employees work overtime, work at night, wages or allowances to work in the hazardous, hard working conditions, subsidy regime in kind for the hard, hazardous careers and other regimes as prescribed by labor legislation.

LIMIT OF PURCHASING FOREIGN CURRENCY TO INDIVIDUALS: 100 USD/1 PERSON/1 DAY
 

On August 29, 2011, The State Bank of Vietnam issued the Circular No. 20/2011/TT-NHNN regulating on the purchase, sale of foreign currencies in cash between individuals and authorized credit institutions.

As stipulated in this Circular, Individuals who are Vietnamese citizen shall be authorized to buy foreign currency in cash at authorized credit institutions to satisfy spending demand of their own as well as of children sharing passport with their parents, including: food expense, pocket money, travel expense in foreign country related to one of following purposes: study, medical treatment in abroad, going on business, travelling, visiting overseas.

Individuals being foreigners who have legal income source in Vietnamese Dong shall be entitled to buy foreign currency in cash at authorized credit institutions in line with current provisions on foreign exchange control. Individuals selling foreign currency in cash to authorized credit institutions and foreign currency exchange agents of such authorized credit institutions in accordance with current provisions on foreign exchange control.

Limit of purchasing foreign currency in cash at authorized credit institutions to satisfy their demands for foreign currencies as stipulated in this Circular with the limit of 100 USD/1 person/1 day or other foreign currencies with the same value within the time of ten days when they stay in foreign countries. The above foreign currency limit is also applicable to children sharing passport with their parents.

Also in this Circular, the purchase of foreign currencies in cash by individuals shall be performed at places which are authorized to sell foreign currencies in cash belonging to operating network of authorized credit institutions in line with provisions of applicable laws.

The selling of foreign currencies in cash by individuals shall be performed at places which are authorized to purchase foreign currencies in cash belonging to operating network of authorized credit institutions in line with provisions of applicable laws and their foreign currency exchange agents.

This Circular shall be effective since 15 October, 2011.

INTERNATIONAL BONDS CAN BE CONVERTED INTO STOCKS
 

The State Bank of Vietnam issued the Circular No. 19/2011/TT-NHNN dated August 24, 2011 guiding the foreign exchange control with regard to the issuance of International Bonds by Enterprises that are not guaranteed by the Government. 

As stipulated in this Circular, the enterprise that issues international bonds has responsibilities to open and use 01 account of foreign borrowing and repayment at 01 authorized credit institution for performing the foreign borrowing in the form of international bonds issuance. Enterprises shall only be permitted to use the fund received from the issuance of international bonds for purposes as approved in the issuance plan after the State Bank has confirmed the registration.

In case of converting bonds into stocks, enterprises shall observe current provisions of laws on convertible bonds; ensuring the regulations on the holding rate of the foreign investors, regulations on reporting, information announcement and other

provisions of applicable laws; drawing up a table and calculating the amount to be paid to bondholders after the conversion; undertaking on the accuracy as against the profile of issue registration.

Also in this Circular, the Plan on issuance of international bonds of a State-owned commercial bank shall be approved by the State Bank. Profile, procedures of requesting the State Bank for approval to the plan on issuance of international bonds shall be implemented in accordance with instructions of the State Bank on foreign medium, long term borrowing of State-owned commercial banks.

CREDIT INSTITUTIONS ARE ALLOWED TO USE VALUABLE PAPERS
AS THE MORTGAGE FOR SHORT TERM LOANS
 

On August 18, 2011, the State Bank of Vietnam issued the Circular No. 17/2011/TT-NHNN providing for the short term lending in Vietnamese Dong (VND) by the State Bank of Vietnam to credit institutions in the form of security by the mortgage of valuable papers in order to supply short term capital and means of payment to credit institutions.

Credit institutions are accepted for mortgage loan when they are not put in the special control; They have valuable papers qualified and subject to the list of those which are permitted to use as a mortgage for loan; Their borrowing purposes are in compliance with objectives of monetary policy management of the State Bank; Application file for mortgage loan are available as stipulated; They have no overdue debt at the State Bank at the time of borrowing request; They have made a commitment on using the mortgage loan for the due purpose and repayment of loan principal and interest to the State Bank at the due time

The valuable papers used for the mortgage have to satisfy following conditions: to be entitled to transfer, to be subject to legal ownership of credit institutions requesting for loan, Its remaining period is at least equal to the borrowing period, It is not the valuable paper issued by the credit institution; List, order of priority of valuable papers which are used as the mortgage for loan and the proportion between value of the valuable paper and amount of the mortgage loan at the State Bank shall be determined by the Governor of the State Bank from time to time.

Value of the valuable paper used as security asset for the mortgage loan shall be the total issued value of the valuable paper which is calculated under the face value. The maximum lending limit shall not exceed the value of the valuable paper used as security to be converted in accordance with applicable provisions of the State Bank

The period of mortgage lending is less than 12 months and not in excess of the remaining period of mortgaged valuable papers. The period of mortgage lending shall include non- business days, public holidays. Where the payment date falls on a non-business day, public holiday, the lending period shall be extended to the following working day. Based on borrowing purposes of credit institutions, the State Bank shall decide the lending period, term of debt collection in specific cases.

Interest rate of mortgage loan to credit institutions shall be refinancing interest rate applied by the State Bank in providing mortgage loans to credit institutions at the disbursement time of loans and remain in full force during the lending period. Where the outstanding of the mortgage loan is classified as overdue debt, the credit institution shall be subject to overdue interest rate, which is equivalent to 150% of the lending interest rate stated in the credit contract.