Legal Document Updates in English (45/2013)

TO MANAGE EXPENDITURES FOR VALUE ADDED TAX REFUND FUND

October 29, 2013, the Ministry of Finance issued Circular No. 150/2013/TT-BTC on guiding the setting up and management of and tax refund from the value-added tax (VAT) refund fund.
Accordingly, from January 1, 2014, based on the approved tax refund fund estimates and the VAT refund estimates collected and refunded, VAT amounts of the previous quarter and year of provinces and centrally run cities, the General Department of Taxation shall allocate and notify tax refund fund use limits for the whole year (divided to quarters) to the provincial-level tax departments and State Treasury offices.

The tax refund fund use limits are allocated and notified in accordance with the above provisions together with the allocation of annual budget revenue estimates.
The tax departments shall collaborate with the same-level State Treasury offices in summarizing and making monthly, quarterly, biannual and annual reports on the implementation of the tax refund fund use limits and the results of VAT refund to the General Department of Taxation for summarization and reporting to the Minister of Finance and related units for coordinated management.
This Circular takes effect on January 1, 2014.

TO RAISE REGIONAL MINIMUM WAGE LEVEL FROM JANUARY 1, 2014

On November 14, 2013, the Government issued Decree No. 182/2013/ND-CP dated on stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers from up to VND 250,000 – VND 350,000/month from January 1, 2014.
Concretely, the level of VND 1,900,000/month applies to enterprises operating in localities of region IV, increasing by VND 250,000/month as compared with the previous wage level (The minimum wage level is prescribed as VND 1,600,000/month); the level of VND 2,700,000/month applies to enterprises operating in localities of region I, increasing by VND 350,000/month as compared with current wage level; the level

CONDITIONS APPLIED FOR NON- PERFORMING LOANS TO BE BOUGHT BY ASSET MANAGEMENT COMPANY

On September 6, 2013, the State Bank of Vietnam issued Circular No. 19/2013/TT-NHNN on providing the purchase, sale and handling of non-performing loans by the Asset Management Company of Vietnamese credit institutions (VAMC).
Accordingly, for the purchase of non-performing loans with special bonds, credit institutions with a ratio of non-performing loans to total outstanding loans of 3% or more shall sell their loans to Vietnam Asset Management Company. Non-performing loans and their collaterals are lawful and have valid dossiers and papers, specifically as follows: Non- performing loans are not yet used to ensure the fulfillment of obligations of credit institutions; and there is no dispute over collaterals of non-performing loans at the time of loan purchase and sale. The book value of the outstanding principal of one or more than one non-performing loan of one borrower or more than one outstanding loan of a group of borrowers specified in Clause 4, Article 8 of this Circular at the time of selling loans is at least VND 3 billion, for groups of borrowers and institutional borrowers, or VND 1 billion, for individual borrowers, or other levels decided by the State Bank Governor.

Scope of to-be-purchased non-performing loans includes: Non-performing loans arising in credit extension activities; amounts for entrusted purchase of unlisted corporate bonds and entrusted extension of credit for which loan-selling credit institutions bear all risks and which, including both principal and interest, have become partially or wholly overdue for 90 days or more, or have not yet become overdue or have become overdue for fewer than 90 days but the bond issuers, entrustment-undertaking parties or entrustment beneficiaries owe non-performing loans at such credit institutions…
Vietnam Asset Management Company may purchase a non-performing loan at market price when the following conditions are fully satisfied: The amount payable for the purchase of the loan is assessed as fully recoverable; the loan’s collateral is saleable; the borrower shows prospect of repaying the loan or has a feasible loan repayment plan. When purchasing non-performing loans at market prices, Vietnam Asset Management Company may value by itself or hire independent valuation organizations to value non-performing loans.
This Circular takes effect on September 15, 2013.

6 SUBJECTS TO BE EXEMPT FROM INSPECTION OF FOODSTUFF SAFETY

On November 6, 2013, the Minister of Industry and Trade issued Circular No. 28/2013/TT-BCT of providing for State Inspection of foodstuff safety for imported foodstuff under the management responsibility of the Ministry of Industry and Trade. Alcohols, beers, beverages, processed milk, vegetable oil, products processed from powder, starch, cakes, jam, candies and packing containing the above products are only sold in Vietnam market after the inspection agency has issued a notification of foodstuff satisfying the import requirements.
The import foodstuff must be taken samples at locations as decided by the inspection agencies (at border gates, places of gathering goods or in preservation warehouses). In case where the goods owner arbitrarily sell or distribute the goods lot out from the gathering place before the inspection agency takes

INSTRUMENTS USED FOR ANALYZING GOLD CONTENTS MUST BE CALIBRATED ONCE A YEAR

On September 26, 2013, the Ministry of Science and Technology issued Circular No. 22/2013/TT-BKHCN on management of measurement in gold trading and quality management of gold jewelry on the market.
Accordingly, The instruments used for analyzing gold contents must meet the following requirements: Having a capacity range suitable for the amount of gold being analyzed; being calibrated once a year by a calibration service provider as prescribed by the Law on Measurement; have an unexpired certificate of calibration; having a tolerance not higher than 1/2 of the tolerance on the result of gold content analysis, concretely: 1% if gold content is 99.9% of higher; 2% if gold content is from 80% to below 99.9%; 3% if gold content is below 80%.

TO CHANGE DEPOSIT AMOUNT OF INTERNATIONAL TRAVEL BUSINESS

On November 14, 2013, the Government issued Decree No. 180/2013/ND-CP on amending and supplementing several articles of the Government’s Decree No. 92/2007/ND-CP dated June 1, 2007 detailing implementation of several articles of Law on Tourism in which the remarkable content regulates the deposit amount of international travel business.
Accordingly, the deposit level in International travel business is divided into 2 levels instead of the common deposit money of VND 250 million as prescribed previously. From January 1, 2014, the official deposit level of VND 250 million will be applied for international travel business when tourists enter Vietnam and  VND 500 million for travel business enterprises for tourists going abroad or for tourists entering Vietnam and tourists going abroad.
The deposit money of international travel enterprise shall be used to settle issues arising in case the

enterprise fail to perform or perform insufficiently its obligations in travel business operation. Deposit money of enterprise must be sent into account at bank and enjoyed interest according to agreement between enterprise and bank receiving deposit in conformity with regulations of law.
Deposit money in travel business will be returned to enterprise in the following cases: Having a decision of agencies issuing certificate of investment which states the withdrawal of certificate of investment or deletes the travel business line in certificate of investment of travel business enterprise with foreign capital; having a notice of The Ministry of Culture, Sports and Tourism which states that enterprise is not granted the international travel business permit or states the withdrawal of international travel business permit of enterprise.
This Decree takes effect on January 01, 2014.