Legal Document Updates in English (45/2019)

TO EXEMPT IMPORT DUTY FOR
32 COMMODITIES IMPORTED FROM CAMBODIA
 

On November 20, 2019, the Government issues the Decree No. 92/2019/ND-CP on prescribing the special preferential to implement the Bilateral Trade Promotion Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Kingdom of Cambodia in the period of 2019 - 2020.

Accordingly, imports originating from the Kingdom of Cambodia which are on the list of commodity items provided in appendices of this Decree are eligible for the special preferential import duty rate of 0%. To be specific:

Secondly, meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen.

Thirdly, citrus fruit, fresh or dried such as Lemons (Citrus limon, Citrus limonum) and Limes (Citrus aurantifolia, Citrus latifolia).

Fourthly, rice includes rice suitable for sowing, brown rice such as Hom Mali rice.

Fifthly, bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products...

FROM JANUARY 05, 2020, TO FINE UP TO VND 1 BILLION
WITH ENTITY FAILING TO SUBMIT DOCUMENTS FOR GRANTING LAND USE RIGHTS CERTIFICATES
 

On November 19, 2019, the Government issues the Decree No. 91/2019/ND-CP on penalties for administrative violations against regulations on land, which takes effect on January 05, 2020 and replaces the Decree No. 102/2014/ND-CP.

This Decree supplements the regulation on new fine level in case real estate project executing organizations failing to submit documents to carry out procedures for granting certificates to buyers, renters of houses, construction works or transferee of land use titles, or failing to provide or providing inadequate documents to buyers, renters of houses.

more than 100 apartments, the maximum fine shall be VND 100 million.

For more than 06 months to 09 months violation, the maximum fine shall up to VND 300 million for violations affecting more than 100 apartments. Especially, for violation of 12 months or more and affecting more than 100 apartments, the fine may up to VND 1 billion and such violator must conduct compulsory submission of documents or sufficient provision of documents to buyers.

For individual, this Decree also regulates that a fine of between VND 02 million and VND 03 million shall be imposed on failing to supply information, documents and materials related to the inspection, examination and collection of evidences to settle land-related disputes by the People's Courts and administrative agencies at all levels.

03 CASES OF AMENDING AND SUPPLEMENTING
THE LICENSES OF CREDIT INSTITUTION'S REPRESENTATIVE OFFICE
 

On December 02, 2019,the State Bank of Vietnam promulgates the Circular No. 25/2019/TT-NHNN amending and supplementing a number of Articles of the Governor of the State Bank of Vietnam’s Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the grant of licenses for and organization and operation of commercial banks, foreign bank branches, and representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam.

for amending and supplementing the Licenses in case of changing name, headquarter location in a different province/city or expanding operation duration. -

After the State Bank branch amends and supplement the Licenses, the representative office must: Register with competent State agency on changed contents; operate the new office and quit all activities in the old one within 06 months from the amending/supplementing date of the Licenses; to announce the change on the State Bank media and 03 consecutive daily press issues or 07 consecutive working days on electronic press.

CHARITY FUND FOUNDING ASSETS
SHALL NOT CONTAIN MORE THAN 50% FOREIGN CONTRIBUTION
 

The Government promulgates the Decree No. 93/2019/ND-CP on organization and operation of social funds and charity funds on November 25, 2019.

To be specific: for fund established by Vietnam citizen or organization must ensure assets contributed for establishment of funds converted into Vietnam dong as follow: For nation funds operating nationwide or in more than one province: VND 6.5 billion (previous regulation  require VND 05 billion only); For funds operating within a province: VND 1.3 billion; For funds operating within a district: VND 130 million; For funds operating within a commune: VND 25 million.

state budget, using or supporting the use of properties assigned by the state budget or originating from the state budget to contribute assets to establish funds.

Especially, foreign citizens and organizations may contribute their assets with Vietnamese citizens and organizations to establish a fund in Vietnam. However, assets contributed for establishment of funds by foreign individuals and organization must not exceed 50% contributed for establishment of funds as prescribed in this Decree. Besides, in case assets contributed for establishment of funds include other assets exclude Vietnam dong then the amount of Vietnam dong must ensure at least 50% general value of assets.

A COMMERCIAL BANK MAY ONLY PURCHASE,
HOLD STOCKS OF NO MORE THAN TWO OTHER CREDIT INSTITUTIONS

On November 15, 2019, the State Bank of Vietnam issues the Circular No. 22/2019/TT-NHNN on limits and prudential ratios in operations of banks and/or foreign bank branches.

In particular, banks and branches of foreign banks are entitled to purchase and invest in government bonds and government-backed bonds against total average liabilities of the preceding month under the maximum ratio of 30%.

In addition, newly established banks and branches of foreign banks (Excluding credit institutions re-organized under the Law on Credit Institutions) whose operation period is under two (02) years from the beginning day of operation and total liabilities are smaller than charter capital or allocated fund

are entitled to purchase and invest in government bonds and government-backed bonds under the maximum rate of 30% to their charter capital or allocated fund.

This Circular also prescribes: A commercial bank may only purchase or hold stocks of no more than 02 other credit institutions, except cases where other credit institutions are its subsidiary companies. Concurrently, a commercial bank may only purchase or hold stocks of another credit institution at a ratio of under 5% of the voting equity of such credit institution.

This Circular takes effect on January 01, 2020.

04 CASES OF EXEMPTION OF
FOOD SAFETY BEFORE CUSTOMS CLEARANCE
 

On November 14, 2019, the Government issues the Decree No. 85/2019/ND-CP on regulations on implementing administrative procedures according to national single window, the ASEAN single window and specialized inspection of import and export goods.

Besides, the State also apply quality inspection exemption to 03 following cases: Import goods sent via postal services, express mail delivery with customs value exempt from tax under the provisions of tax law; Goods which are temporarily imported for sale at duty-free shops; Goods which are imported, exported on the spot.

The above goods shall not be exempted from tax if: Line-ministries have warnings about food safety, spread of epidemics and danger to human health, life, causing environmental pollution, affecting social morality, traditions and customs, harming the national economy, security or the presence of a written notice on stopping the specialized inspection exemption prior to customs clearance.

TO AMEND MINIMUM CAPITAL REQUIRED
 FOR ESTABLISHMENT AND MAINTENANCE OF AN AIRLINE
 

On November 15, 2019, the Government issues the Decree No. 89/2019/ND-CP amending and supplementing a number of Articles of the Government’s Decree No. 92/2016/ND-CP dated July 01, 2016 prescribing the conditional business lines in civil aviation and the Government’s Decree No. 30/2013/ND-CP dated April 08, 2013 on air transportation and general air operation.

be VND 600 billion; With regard to an airline operating up to 30 airplanes shall be VND 700 billion.

Within 20 working days after receiving a valid set of dossiers, the Civil Aviation Authority of Vietnam shall submit a written assessment report to the Ministry of Transport instead of 30 days as before. Besides this Decree also eliminate the regulation that the enterprises must upload content of the permission on to public press for consecutive 03 issues as before.