Legal Document Updates in English (49/2020)

GUIDANCE ON OPENING PERSONAL PAYMENT ACCOUNTS BY ELECTRONIC METHOD

On December 04, 2020, the State Bank of Vietnam issues the Circular No. 16/2020/TT-NHNN on amending and supplementing a number of articles of the Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam guiding the opening and use of payment accounts at payment service suppliers.

Accordingly, the State Bank may provide additional guidance on opening personal payment accounts by electronic method. Specifically, banks and foreign banks’ branches shall, based on technological conditions, take the risk assessment, define the scope of using and decide to apply the transaction limit of the payment account opened by the electronic method, but must ensure the total transaction value (debit) via such customer’s payment account not exceeding VND 100 million/month/customer.

Noticeably, the State Bank may decide to apply the transaction limit higher than the limit of VND 100 million/month/customer for the payment account opened by the electronic method in one of the following cases:

Firstly, banks, foreign banks’ branches use video call to collect, check and verify customer’s identification information when opening the payment account to get as high efficiency as process of defining and verifying customer’s information by meeting face to face.

Secondly, banks, foreign banks’ branches apply the technology to check, compare customer’s biometric characteristics with citizen’s biometric data in the citizen identity database, etc.

This Circular takes effect on March 05, 2021.

TO IMPORT 62,053 TONS OF RAW TOBACCO UNDER THE TARIFF QUOTA FOR 2021

The Ministry of Industry and Trade promulgates the Circular No. 43/2020/TT-BCT prescribing the import of raw tobacco under the tariff quota for 2021 on December 04, 2020.

For 2021, the volume of raw tobacco (HS code 2401) imported under the tariff quota is 62,053 tons.

The allocation of tariff quotas on imported raw tobacco must comply with regulations.

This Circular takes effect from January 18, 2021, until the end of December 31, 2021.

TO GUIDE THE IMPLEMENTATION
OF THE FREE TRADE AGREEMENT REGARDING TRADE REMEDIES

On November 26, 2020, the Ministry of Industry and Trade promulgates the Circular No. 30/2020/TT-BCT guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union regarding trade remedies.

Accordingly, anti-dumping tax or countervailing tax must not be higher than the dumping margin or subsidy level. Based on conclusions of the investigating agency, the Ministry of Industry and Trade shall consider applying anti-dumping and countervailing tax rates that are lower than the dumping margin or subsidy level if this lower tax rate is sufficient to eliminate damage for the domestic industry.

Additionally, the time limit for application of a bilateral safeguard measure is 02 years. In case the investigating agency concludes that a bilateral safeguard measure must

be further applied to prevent or remedy serious damage and facilitate the adjustment of the domestic industry, time limit for application may be extended for up to 02 years. In case time limit for application of a bilateral safeguard measure is longer than 02 years, such measure must be gradually loosened throughout the application of the measure.

Bilateral safeguard measures to be applied include: Suspension of further reduction of import duty rates in accordance with the Agreement; Increase of import duty rates applicable to such goods, which must not exceed preferential import duty rates effective at the time of application of this measure or base import duty rates specified in tariffs.

This Circular takes effect on January 11, 2021.

LARGE-SIZED PUBLIC COMPANIES MUST DISCLOSE INFORMATION
WITHIN 24 HOURS IN 3 CASES

The Circular No. 96/2020/TT-BTC guiding the disclosure of information on the securities market is issued by the Ministry of Finance on November 16, 2020.

Accordingly, a public company must disclose information within 24 hours after receiving a request of the State Securities Commission or Stock Exchange where it is listed or registered for trading upon the occurrence of any of the following events: An event that seriously affects lawful interests of investors; There is information relating to the company which greatly affects the securities price and needs confirmation.

Concurrently, an organization listing stocks or large-sized public company shall conduct an extraordinary disclosure of information within 24 hours after the occurrence of any of the following events:

Firstly, there is a decision to increase or reduce the charter capital.

Secondly, there is a decision on contribution of investment capital to an organization or a project, borrowing or lending or another transaction valued at 10% or more of total assets of the company as stated in the latest audited annual financial statement or latest examined biannual financial statement (based on the consolidated financial statement if the public company is concurrently the parent company);

Thirdly, there is a decision on contribution of capital valued at 50% or more of the charter capital of an organization (determined according to the charter capital of the contribution-receiving organization before the time of contribution).

This Circular takes effect on January 01, 2021.

TO REPORT ABNORMAL SECURITIES TRADING WITHIN 24 HOURS

On November 16, 2020, the Circular No. 95/2020/TT-BTC guiding the surveillance of securities trading on the securities market is promulgated by the Ministry of Finance.

According to this Circular, the Vietnam Stock Exchange and its subsidiary companies shall perform surveillance to detect abnormal trading, suspected trading potentially violating the law on securities trading, including the act of use of inside information in securities purchase and sale; the act of securities market manipulation; other acts in violation of the securities trading regulations.

In addition, they shall perform the surveillance of trading and disclosure of information and reports related to the

trading of listed securities or securities registered for trading of institutions listing securities, etc. Besides, their surveillance of redemption of the own stocks, public bid and other transactions of listed institutions, institutions registered for trading shall comply with law on securities and securities market.

If detecting suspected trading, within 24 hours after the results of making analysis of the abnormal trading, a Stock Exchange shall send an abnormal trading surveillance report to the State Securities Commission, and report the Vietnam Stock Exchange at the same time.

This Circular takes effect on January 01, 2021.

NEW FIRE PREVENTION AND FIGHTING CONDITIONS
FOR PRODUCTION AND BUSINESS HOUSEHOLDS FROM JANUARY 10, 2021

The Government promulgates the Decree No. 136/2020/ND-CP detailing a number of articles and measures to implement the Law on Fire Prevention and Fighting and the Law Amending and Supplementing a Number of Articles of the Law on Fire Prevention and Fighting on November 24, 2020.

In accordance with this Decree, households must satisfy the fire prevention and fighting safety conditions specified in Clause 1, Article 17 of the Law on Fire Prevention and Fighting. Especially, households living in association with production and business must satisfy the above conditions and the following conditions: Having internal rules on fire prevention and fighting, on the use of electricity, flame and flammables and explosives in accordance with technical regulations and standards on fire prevention or the regulations of the Ministry of Public Security; Having solutions to escape in case of fire and prevent the spread of

fire and smoke between the living area and the production and business area.

Such conditions must be implemented and maintained by the owners of households during their operation. Households living in association with production and business that have been granted an enterprise registration certificate must satisfy the fire prevention and fighting safety conditions corresponding to their type of establishments.

This Decree also stipulates new fire prevention and fighting conditions for motor vehicles. According to the new regulations, only land-road motor vehicles of more than 09 seats are required to have firefighting equipment suitable to the operational characteristics and properties of the vehicles (as in previous regulation, all land-road motor vehicles of 04 seats or more are required to have firefighting equipment).

This Decree takes effect on January 10, 2021.