Legal Document Updates in English (48/2019)

THE LAND PRICE BRACKET IN HA NOI AND HO CHI MINH CITY:
MAXIMUM UP TO VND 162 MILLION PER M²

This is the regulation prescribed in the Government’s Decree No. 96/2019/ND-CP on the land price bracket dated December 19, 2019.

Accordingly, the land price bracket is used as a basis for provincial-level People’s Committees to set and adjust local land price tables. The Provincial Committee may raise the land price bracket up to maximum price as prescribed in the land price bracket table or the adjusted land price bracket table with the raising price does not exceed 20% of the maximum price of the same land type in the price bracket.

The Red River delta region, comprising provinces and centrally run cities of: Vinh Phuc, Bac Ninh, Ha Noi, Hai Phong, Hai Duong, Hung Yen, Ha Nam, Nam Dinh, Thai Binh

USE AT LEAST 2 METHODS OF ASSETS APPRAISAL
FOR AUCTION OF THE RIGHT TO OPERATE ROAD INFRASTRUCTURE

On December 03, 2019, the Ministry of Finance promulgates the Circular No. 86/2019/TT-BTC guiding the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets invested and managed by the State.

Accordingly, determining the reserve price in auction must ensure reasonable and valid actual cost recovery to form and manage assets, in accordance with the State's socio-economic development policies and guidelines in each period. In addition, the reserve price must be compatible with the market price of assets of the same type or having the same technical standards and comply with the regulations, standards, expenditure norms and economic-technical norms promulgated by competent State agencies.

The reserve price in auction for lease of the right to operate road infrastructure assets is the lowest initial price in auction. The reserve price shall be determined on the basis of the market rent price of assets of the same type or estimated revenue and expenses derived from the operation of assets during the leasing term in case there is no asset of the same type for comparison.

Each asset must be applied with at least 02 different methods in the system of Vietnam’s valuation standards. When applying multiple pricing methods and valuation methods, agencies and units in charge of determining the reserve price shall assess and clearly state the major methods and the methods used for testing and comparing results, thus proposing the reasonable reserve price.

This Circular takes effect from January 20, 2020.

TO SUPPLEMENT THE LIST OF HS CODE FOR A NUMBER
OF EXPORT COMMODITIES

On November 16, 2019, the Ministry of Industry and Trade issues the Circular No. 41/2019/TT-BCT on supplementing HS code Lists of imported and exported goods prescribed in some Circulars of the Ministry of Industry and Trade.

Accordingly, the Lists be supplemented are: the List of HS code of exported rice prescribed in the Circular No. 30/2018/TT-BCT; the List of HS code of temporary imported for re-exported sassafras oil prescribed in the Circular No. 10/2011/TT-BCT; the List of HS code of rough diamonds prescribed in the Joint Circular No.14/2009/TTLT-BCT-BTC;

TO AMEND THE COSMETIC PROCLAMATION DOSSIER

The Ministry of Health promulgates the Circular No. 32/2019/TT-BYT on amending and supplementing Clause 4 Article 4 and Appendix No. 01-MP of the Circular No. 06/2011/TT-BYT, providing cosmetic management on December 16, 2019.

Accordingly, to amend the component of the cosmetic proclamation dossier (regards to the Certificate of Free Sale (CFS)). To be specific:

First, in case of proclamation of imported cosmetic product from countries other than CPTPP members, the CFS shall meet the following requirements: CFS which is issued by the exported country must have been original and still in the date of validity. In case CFS is not provided of the expiry date, it must be a certificate which has just been issued within 24 months.

JOIN STOCK COMPANY MUST HAVE AT LEAST
VND 30 BILLION OF REGULATION CAPITAL FOR INITIAL OFFERING OF STOCK

This is one of new, strict conditions for enterprises’ public offer of securities in the Law on Securities No. 54/2019/QH14. As in the Law on Securities No. 70/2006/QH11, this number is only VND 10 billion.

The new Law also provides numerous of strict provision for a joint-stock company’s initial public offering of stocks. To be specific:  Before the issuing of initial public offering of stocks, the major shareholders must commit to hold together at least 20% of the issuing organization's charter capital for at least 01 year after the end of the offering; The issuing organization must open a frozen account to receive money to buy stocks of the offering; The issuing organization shall have a commitment and must list or register stock transactions on the securities trading system after the end of the offering...

CENTRAL PROVINCES SHALL REDUCE ONE-OFF LAND USE RENTAL PAYMENTS
FOR WHOLE LAND LEASE TERMS

Central provinces shall need to reduce cases where land lessees are allowed to make one-off land use rental payments for whole land lease terms is the content in the Directive No. 27/CT-TTg on solutions to promote growth and sustainable development of Central Vietnam of the Prime Minister on November 19, 2019.

In addition, People’s Committees of the provinces and cities in the region shall develop economic zones, hi-tech parks, high-added value processing and manufacturing industry

zones and eco-industrial parks; invest in expanding airports, including international airports, with private sector’s investment in accordance with current regulations.

At the same time, those provinces shall implement land use rights auction, especially in urban centers, in strict accordance with law in order to create resources for infrastructure investment and foundations for promoting regional connections, socio-economic development and convenient mass transit.