Legal Document Updates in English (40/2014)

EMPLOYEES MAY FILE PETITIONS FOR INITIATION OF BANKRUPTCY PROCEDURES
WHEN ENTERPRISES FAIL TO PAY SALARIES WITHIN 3 MONTHS
 

On June 19, 2014, the National Assembly passed the Law No. 51/2014/QH13 on Bankruptcy with a number of new and important contents.

Firstly, unsecured creditors and partially secured creditors may file petitions for initiation of bankruptcy procedures in case indebted enterprises or cooperatives fail to perform the obligation to pay debts within 3 months after such debts become due. Employees, grassroots trade unions or immediate higher-level trade unions in enterprises or cooperatives where no grassroots trade union has been established may file petitions for initiation of bankruptcy procedures in case such enterprises or cooperatives fail to perform the obligation to pay salaries or other due debts to employees within 3 months after their obligation becomes due.

The Law also prescribes that the district-level people’s courts have the jurisdiction to settle bankruptcy of enterprises and cooperatives headquartered in their districts, towns or provincial cities while in the current regulations, the district-level people’s courts only have the jurisdiction to settle bankruptcy of cooperatives; People’s courts of provinces or centrally run cities have the jurisdiction to settle bankruptcy of enterprises which have made business or enterprise registration or of cooperatives which have made business or cooperative registration in such provinces or centrally run cities and fall into the cases of bankruptcy involves assets located abroad or bankruptcy

EXTENSION OF VAT PAYMENT FOR IMPORTED MACHINES
WITH THE WORTH FROM VND 100 BILLION
 

This is the content prescribed at the Circular No. 134/2014/TT-BTC dated September 12, 2014 of the Ministry of Finance guiding the procedure for extension of VAT payment and refund for import machines and equipments for investment project’s fix assets.

Accordingly, enterprises that are newly established from investment projects and have yet to be brought into operation or those that have been already brought into operation, who are taking part in investment projects (such as the installation of new production line, operational expansion, technological innovation, environmental improvement and production capacity enhancement) by means of directly importing or giving the authorization to import machinery and equipment used as fixed assets in such investment projects but are also faced with financial difficulties such as failure to distribute a sufficient amount of money for the VAT payment at the importation stage; reliance on loans from commercial banks on the importation of machinery and equipment for production and trading purposes; in case of great losses incurred by the delayed customs clearance of commodities leading to the suspended and extended investment, they are entitled to choose between VAT payment extension at the importation

REGULATIONS ON THE CONSULTATION WITH ORGANIZATIONS
REPRESENTING EMPLOYEES AND EMPLOYERS IN LOCALITIES
 

On October 06, 2014, the Ministry of Labor, War Invalids and Social Affairs issued the Circular No. 27/2014/TT-BLDTBXH guiding the consultation by state management agencies on labor with organizations representing employees and employers in the formulation of labor policies and law and industrial relation issues. Within that, employee’s representative is the Confederation of Labor of provinces and cities; employer’s representatives are branches or representative office of the Vietnam Chamber of Commerce and Industry in provinces and cities directly under the Central; Association of enterprises; Vietnam Association of Small and Medium Enterprises of provinces and cities directly under the Central; co-operative union of provinces and cities directly under the Central.

The consultation by state management agencies on labor with organizations representing employees and employers in the formulation of labor policies and law and industrial

PRICE FOR HOUSE, LAND RENTING SHALL BE DETERMINED
ACCORDING TO THE MARKET
 

The Prime Minister signed the Decision No. 56/2014/QD-TTg dated October 06, 2014 on the management, use of State-owned houses and land for external affairs activities of the State; within that the State shall not collect the rent for houses, land under the reciprocal form of assigning houses, land without payment.

Within that, the reciprocal use of houses, land is explained as the use of houses, land for external affairs as stipulated under the Convention or Agreements between the Socialist Republic of Vietnam and foreign Government under the form of granting houses, land for the diplomatic representations of that country to use as offices, houses in its territory without payment. Similarly, assigning houses, land without payment: the Government of the Socialist Republic of Vietnam assigns houses, land for external affairs for the diplomatic representations or international organizations belonging to the United Nations system or

ALLOW ENTERPRISES TO WITHDRAW CAPITAL UNDER PAR VALUE
 

On September 15, 2014, the Prime Minister issued the Decision No. 51/2014/QD-TTg guiding some contents on capital withdrawal, share sale, transaction registration and list in the stock market of the state-owned enterprises, prescribing that the capital withdrawal under par value or accounting book value must ensure some main principles.

In particular: maximum limit of investment loss and state capital preservation at the highest level upon capital transfer; the capital transfer under the form of agreement is only implemented after unsuccessful auction (no or only one investor registering for auction) or the share and state capital have not been sold out by auction, except agreed sale of stocks listed on the stock exchange or registration for trading on Upcom at the agreed price; next, enterprises will make additional appropriation for sufficient provision of

PROHIBIT CUSTOMS OFFICERS EMBEZZLING TEMPORARILY SEIZED GOODS
 

This is the content prescribed at the Law No. 54/2014/QH13 on Customs passed by the National Assembly on June 23, 2014 and takes effect on January 01, 2015.

Beside the prohibitions for Taking bribes, appropriating or embezzling temporarily seized goods or other acts for self-seeking purposes, the customs officers are also prohibited for causing troubles and difficulties in carrying out customs procedures; covering up or colluding with others in smuggling or illegally transporting goods across the border, committing trade or tax fraud and other acts in violation of the Customs Law.

Customs declarants, organizations and individuals with rights and obligations related to import, export and transit of goods, or exit, entry and transit of means of transports are prohibited for committing fraudulent acts in carrying out customs procedures; smuggling or illegally transporting goods across the border; committing trade or tax fraud;

TECHNICAL EVALUATION CRITERIA FOR THE MEDICINE’S BID DOCUMENTS
 

In accordance with the Circular No. 31/2014/TT-BYT dated September 26, 2014 prescribing the technical evaluation criteria for the medicine’s bid documents, the score shall be given on a scale of 1 to 100.

Within that, medicine quality criteria: 70 points with the criteria as follows: the offered medicines are produced by the bidder: 25 points; violations pertaining to quality of offered medicines (1): 10 points; violations pertaining to quality committed by the producer of offered medicines (2): 10 points; shelf life of offered medicines (3): 10 points; criteria for evaluating raw materials (active ingredients) of offered medicines: 5 points; criteria for bioequivalence evaluation: 5 points….Criteria for packaging, preservation, delivery: 30 points with the criteria as follows: offered medicines are supplied by the bidder: 5 points; medicines

GRANT OF PERMANENT RESIDENCE CARDS FOR FOREIGN EXPERTS
 

Overseas Vietnamese and foreign experts who are subject to this Decree and their family members (including parents, spouses and under-18 blood or adopted children) shall be granted multiple-entry visas or temporary residence cards with the maximum term is the important contents at the Decree No. 87/2014/ND-CP dated September 22, 2014 of the Government on attraction of scientists and technologists who are overseas Vietnamese and foreign experts to participate in scientific and technological activities in Vietnam.

Especially, overseas Vietnamese and foreign experts who hold medals or honorable titles given by the Vietnamese State or are temporarily residing in Vietnam shall be considered for grant of permanent residence cards in accordance with the law on entry, exit and residence of foreigners in Vietnam.

Overseas Vietnamese and foreign experts with great contributions to the cause of science and technology development in Vietnam shall be considered to be conferred honorable scientific titles and commemorative medals for the science and technology cause or to be honored or commended in accordance with law. Besides, family members of overseas Vietnamese and foreign