Legal Document Updates in English (46/2020)

HEALTH INSURANCE CONTRACTS:
AGENTS MAY BE REWARDED UP TO 100% OF COMMISSIONS

On November 11, 2020, the Ministry of Finance issues the Circular No. 89/2020/TT-BTC on amending and supplementing a number of articles of the Circular No.  50/2017/TT-BTC dated May 15, 2017, the Circular No. 105/2016/TT-BTC dated June 29, 2016, the Circular No. 195/2014/TT-BTC dated December 17, 2014, the Circular No. 115/2014/TT-BTC dated August 20, 2014 and repealing the Circular No. 116/2014/TT-BTC dated August 20, 2014 and the Circular No. 43/2016/TT-BTC dated March 03, 2016 on amending Article 5 of the Circular No. 116/2014/TT-BTC.

According to new provisions, non-life insurance businesses and foreign branches shall spend a maximum amount of 50% of insurance commission of insurance contracts exploited in the fiscal year on agent commendation and agent financial aid. For health insurance operations, a maximum amount of 100% of insurance commission of health insurance contracts exploited in the fiscal year shall be spent on agent

commendation and agent financial aid.

With regards to revenues from the provision of insurance auxiliary services, insurance businesses, foreign branches and insurance brokerage businesses shall account into their revenue after finishing the service provision or after completing each part of the service provision, regardless such money amount has been paid or not.

Besides, the Circular also amends provisions on the reporting regimes for insurance businesses as prescribed in the Circular No. 105/2016/TT-BTC, the Circular No. 195/2014/TT-BTC and the Circular No. 115/2014/TT-BTC, etc.

This Circular takes effect on December 26, 2020

TO APPROVE THE FIRST CONSTRUCTION PHASE
OF THE LONG THANH INTERNATIONAL AIRPORT PROJECT

On November 11, 2020, the Prime Minister issues the Decision No. 1777/QD-TTg on approving the first construction phase of the Long Thanh International Airport project.

Accordingly, the first construction phase of the Long Thanh International Airport project is divided into 04 sub-projects, including: (1) Sub-project 1 - Constructions of state management agencies’ head offices; (2) Sub-project 2 - Constructions in service of flight control; (3) Sub-project 3 - Essential constructions in an airport; (4) Sub-project 4 - Other constructions.

The Government sets a goal to build Long Thanh International Airport to become a level 4F important international airport of Vietnam

(according to the decentralization of the International Civil Aviation Organization – ICAO). At the same time, to invest Long Thanh International Airport, phase 1 with 01 runway and 01 passenger terminal with synchronous auxiliary items for receiving 25 million passengers and 1.2 million tons of cargo per year.

Noticeably, total investment for the project is VND 109,111.742 billion, equivalent to USD 4,664.89 million (at the exchange rate of 23,390 VND/USD announced on May 25, 2020 at Vietcombank).

This Decision takes effect on the signing date.

TO ADJUST THE PRINCIPLE FOR MAKING A DOSSIER OF REQUEST
FOR APPROVING THE PROVISIONAL PERSONNEL LIST

On November 13, 2020, the State Bank of Vietnam promulgates the Circular No. 13/2020/TT-NHNN on amending and supplementing a number of articles of the Circular No. 22/2018/TT-NHNN dated September 05, 2018 of the Governor of the State Bank of Vietnam on providing guidance on procedures and dossiers for approval of the provisional personnel list of commercial banks, non-bank credit institutions and foreign bank branches.

As in previous regulations, the written request for approval of the provisional personnel list of credit institutions and foreign bank branches sent to the State Bank must be signed by the at-law representative or the authorized representative.

However, from the effective date of this Circular, such written request of the credit institution shall be signed by the at-law representative. In case where the at-law representative authorizes another person to sign such written request, the dossier must contain an authorization

document, which is made in accordance with law provisions.

In case the position of credit institution’s at-law representative is absence, the written request of the credit institution must be a document of the Members’ Council or Boards of Directors, which is signed by the Chairperson of the Board or the Chairperson of the Member's Council, etc.

For foreign bank branches, such written request shall be signed by the General Director (Director). In case where the General Director (Director) authorizes another person to sign such written request, the dossier must contain an authorization document, which is made in accordance with law provisions. In case where the position of General Director (Director) of a foreign bank branch is absence, the foreign bank branch’s competent representative shall sign such written request.

This Circular takes effect on December 28, 2020.

FROM 2021, TO CHANGE MANY DOCUMENTS
IN THE DOSSIER FOR GRANT OF DIGITAL CERTIFICATES

On November 02, 2020, the State Bank of Vietnam promulgates the Circular No. 10/2020/TT-NHNN on amending, supplementing a number of articles of the Circular No. 28/2015/TT-NHNN stimulating on the management, use of digital signature, digital certificates and digital signature certification service of the State Bank.

In accordance with the Circular, the organization managing subscribers shall apply a dossier upon the demand of issuing the digital certificate or professional supplement, including:

Firstly, application for issuing, supplementing the digital certificate operations; proposal for issuing and supplementing the digital certificate operations for individual according to the forms as prescribed and written documents proving the legal representatives of the agencies and

organizations (including the certificate of business registration or the certificate of co-operative registration, etc.; assignment decision of the applicant for state agencies) in cases of issuing or supplementing digital certificate operations for the competent person.

Secondly, authorization documents in written form of the competent person to authorize another person to sign dossiers, documents, files, reports and transactions in the information system corresponding to the required digital certificate operation, etc. that are additionally required in cases of issuing, supplementing digital certificate operations for authorized competent individuals. The authorized person is not allowed to re-authorize another person for individuals.

This Circular takes effect on January 01, 2021.

FROM 2021, TO CHANGE REGULATIONS ON ENTITIES WITH PUBLIC INTERESTS

On November 15, 2020, the Government promulgates the Decree No. 134/2020/ND-CP amending and supplementing a number of articles of the Government's Decree No. 84/2016/ND-CP dated July 01, 2016 defining criteria and conditions for certified public accountants, audit organizations approved to audit entities with public interests.

Accordingly, entities with public interests mean the entities prescribed in Article 53 of the Law on Independent Audit, including entities with public interests in the securities field and other entities with public interests.

Specifically, entities with public interests in the securities field include public companies, listed institutions, institutions with trading registration, institutions offering securities to the public, securities companies, securities investment fund management companies, securities investment companies, and securities investment funds. According to the recent regulations, entities with public interests in the securities field are large-scale public companies according to regulations on securities.

This Decree takes effect on January 01, 2021.

ROADMAP FOR INCREASING THE NUMBER OF PERSONS IN CHARGE OF CLINICAL PHARMACY
ACTIVITIES AT MEDICAL EXAMINATION AND TREATMENT ESTABLISHMENTS

On November 02, 2020, the Government issues the Decree No. 131/2020/ND-CP on providing regulations on clinical pharmacy organization and activities of medical examination and treatment establishments.

Accordingly, the Government requests to increase the number of persons in charge of clinical pharmacy activities at a medical examination and treatment establishment as follows:

Firstly, by January 01, 2026 at the latest, level II hospitals or higher must ensure at least 01 person in charge of clinical pharmacy activities for every 150 in-patient beds, and at least 1.5 persons in charge of clinical pharmacy activities for every 1,000 prescriptions granted for out-patients holding health insurance cards within a day.

Secondly, by January 01, 2031 at the latest, medical examination and treatment establishments must ensure

at least 01 person in charge of clinical pharmacy activities for every 100 in-patient beds, and at least 02 persons in charge of clinical pharmacy activities for every 1,000 prescriptions granted for out-patients holding health insurance cards within a day.

In addition, the practice period of a person responsible for clinical pharmacy activities is at least 02 years. For a person possessing a doctor's degree or second specialist degree related to the professional practice contents, the period of practice is at least 06 months. For a person possessing a master's degree or first specialist degree related to the professional practice contents, the period of practice is at least 12 months.

This Decree takes effect on January 01, 2021.