Legal Document Updates in English (41/2020)

ONE MORE GROUP OF ENTERPRISES CONTINUOUSLY INVESTED
BY THE STATE TO MAINTAIN ITS SHAREHOLDING

On October 09, 2020, the Government promulgates the Decree No. 121/2020/ND-CP on amending and supplementing Clause 2, Article 12 of the Decree No. 91/2015/ND-CP on investment of state capital in enterprises and management and use of capital and assets at enterprises, amended an supplemented by Clause 5, Article 1 of the Decree No. 32/2018/ND-CP on amending and supplementing a number of articles of the Decree No. 91/2015/ND-CP.

Accordingly, to supplement 01 group of enterprises continuously invested by the State to maintain its shareholding. These enterprises are joint stock commercial banks with more than 50% of charter capital held by the State.

This Decree takes effect on the signing date.

TO INSTALL E-TAGS ON CARS COMING FOR INSPECTION

On October 07, 2020, the Prime Minister issues the Directive No. 39/CT-TTg on accelerating the provision and enhancing the use of non-stop electronic toll collection services.

Accordingly, the Prime Minister requests the Ministry of Transport to perform the following tasks: To decide to suspend toll collection activities at projects which fail to shift to apply electronic toll collection at their toll plazas in accordance with law; To direct motor vehicle inspection units and related agencies and units to install e-tags on cars coming for inspection; etc.

Besides, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Transport in, guiding the use of e-invoices and the performance of tax obligations concerning electronic toll collection activities in accordance with law.

At the same time, the Vietnam Automobile Transport Association shall disseminate and mobilize transport businesses to install e-tags on vehicles used for provision of transport business so as to be able to move through toll plazas via electronic toll collection lanes to reduce traffic congestion at toll plazas.

TO SUPPLEMENT REGULATIONS ON METHODS OF SENDING FINANCIAL PLANS

On October 01, 2020, the Ministry of Finance issues the Circular No. 84/2020/TT-BTC on amending and supplementing regulations on the periodic report regime under the Minister of Finance’s decision in the field of finance and banking.

In accordance with this Circular, to provide additional regulations on sending financial plans and reports. Specifically, such plans and reports shall be sent according to one of the following methods, in the form of paper documents: Send directly or by post.

Besides, the Ministry of Finance also provides additional requirements for Vietnam Asset Management Company in term of closing data and sending reports. To be specific: The period for closing data of a financial plan is from January 01 of the planning year to December 31 of the

planning year; A report may be sent directly in the form of paper documents, sent by post or via e-mail system or specialized reporting information software system.

In addition, the State Bank of Vietnam shall biannually (before August 31) and annually (before April 30 of the subsequent year), notify the Ministry of Finance of the financial status of credit institutions and foreign bank branches according to the following norms (classified by type of credit institutions): The total amount of charter capital, owner’s equity, assets, total debits, total amount of mobilized capital, non-performing loan ratio and other prudential ratios in operation of credit institutions and foreign bank branches, etc.

This Circular takes effect on November 15, 2020.

HOUSES OF UNDER 6 STORIES CONVERTED FOR OTHER PURPOSES
SHALL SUBJECT TO APPRAISAL OF FIRE PREVENTION AND FIGHTING

On April 06, 2020, the Ministry of Construction issues the Circular No. 01/2020/TT-BXD on promulgating the National Technical Regulation on Fire Safety of Buildings and Constructions.

This Circular specifies the National Technical Regulation on Fire Safety of Buildings and Constructions: safety assurance for people; prevention of fire spread; water supply for firefighting; firefighting and rescue and management provisions, etc. This Regulation applies to organizations and individuals related to investment in construction, management and use of residential buildings and industrial buildings.

Individual residential buildings for households whose height reaches 06 stories or lower or having no more than 01 basement are not required to comply with this Regulation but follow separate guidelines suitable for each building and residential area.

In cases where buildings that require appraisal of fire safety design are converted for other purposes, it must comply with this Regulation and be approved by the competent Police Department of Fire and Rescue.

This Circular takes effect on July 01, 2020.

PLAN ON IMPLEMENTATION OF THE 1970 HAGUE CONVENTION
ON THE TAKING OF EVIDENCE

On June 30, 2020, the Prime Minister promulgates the Decision No. 924/QD-TTg approving Vietnam’s Plan on implementation of the 1970 Hague Convention on the Taking of Evidence Abroad in Civil or Commercial Matters.

Accordingly, from May 03, 2020, the Ministry of Justice shall assume the prime responsibility for, and coordinate with the Ministry of Foreign Affairs, the Supreme People’s Court, the Supreme People’s Procuracy, and competent agencies of Vietnam in, monitoring, urging and reviewing the implementation of requests for the taking of evidence of Vietnam and other member states of the Convention; establishing and intensifying direct coordination with central agencies of other member states of the Convention and the Secretariat of the Hague Conference on enforcement of the Convention.

In addition, in 2020-2022 period, the Ministry of Justice must upgrade its software for implementation and management of dossiers of judicial mandate in general, and dossiers of judicial mandate for the taking of evidence within the Convention’s framework in particular. During 2023-2025, the Ministry shall prepare conditions for inter-connecting software for implementation and management of dossiers of judicial mandate of the Ministry of Justice, the central agency in charge of enforcement of the Convention, with those of agencies and units performing judicial mandate activities.

This Decision takes effect from the signing date.

BY 2030, TO REACH 15-20% RENEWABLE ENERGY SOURCES
IN THE TOTAL PRIMARY ENERGY SUPPLY

On February 11, 2020, the Central Executive Committee of the Political Bureau promulgates the Resolution No. 55-NQ/TW on orientation of Vietnam’s National Energy Development Strategy through 2030 with a vision toward 2045.

In accordance with this Resolution, the Central Executive Committee gives specific objectives as follows:

Firstly, to providing sufficient energy for domestic energy demand and satisfy targets of the 10-year socio-economic development strategy for 2021-2030, namely: the total primary energy supply shall reach 175 - 195 million tons of oil equivalent (TOE) by 2030 and 320 - 350 million TOE by 2045; the total installed capacity of power sources shall amount 125 - 130 GW and the power output shall reach 550 - 600 billion KWh by 2030.

Secondly, total final energy consumption shall reach 105 - 115 million TOE by 2030 and 160 - 190 million TOE in

2045. The primary energy intensity shall be expected to be 420 - 460 kgOE/ USD 1,000 (GDP) by 2030 and 375 - 410 kgOE/ USD 1,000 (GDP) by 2045. The share of renewable energy sources in the total primary energy supply shall reach 15 - 20% in 2030 and 25 - 30% in 2045.

To achieve the above goals, handling and restructuring inefficient projects and state-owned enterprises that make losses in the energy sector; researching and implementing a pilot mechanism for time-limited sales or long-term leases applicable for power plants, fuel storage, oil refineries, etc. possessed by state-owned enterprises are required.

Remarkably, the Central Executive Committee also requests as below: Eradicating obstacles to ensure transparent energy prices set by the market with no cross-subsidies among groups of clients and regions; the State shall regulate through appropriate market instruments (taxes, fees, funds, etc.) and suitable social security policies.