New legal documents come into effect as from May 2018
There are a range of legal documents of the Vietnamese Government, the Prime Minister and ministries coming into effect as from May 2018, as follows:
1. Decree No. 25/2018/ND-CP dated February 28, 2018 of the Government came into effect since May 1, replacing Decree No. 60/2014/ND-CP dated June 19, 2014 prescribing printing activities.
2. Decree No. 30/2018/ND-CP dated March 7, 2018 of the Government on establishment and operation of property valuation council took effect since May 1, 2018.
3. Decree No. 32/2018/ND-CP dated March 8, 2018 of the Government amending and supplementing a number of articles of the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investment in enterprises, use and management of capital and assets in enterprises took effect since May 1, 2018.
Accordingly, with regard to investment in and shopping for external fixed assets for use (including means of transport used for business and service operations), such state enterprises must comply with legal regulations on procurement and other relevant laws.
Besides, State enterprises shall not be allowed to use capital assets and right to use the leased land to contribute their capital to or invest in real estate (except those whose main businesses are types of real estate stipulated in the Law on Real Estate Business), or contribute their capital or buy shares of banks, insurance companies, securities companies, venture investment funds, securities investment funds or securities investment companies.
Where enterprises who are investors in projects under construction which have yet to form any usable asset (in-process investment and construction) do not continue projects, they may assign (whether part or whole of) these projects to other investors.
4. Decree No. 40/2018/ND-CP dated March 12, 2018 of the Government on management of multi-level marketing activities took effect as from May 2, 2018.
According to the new Decree, an organization registering for multi-level marketing activities must meet seven following conditions: (i) being an enterprise which is established in Viet Nam in line with its regulations and has not had multi-level marketing certificates withdrawn; (ii) charter capital worth more than VND10 billion; (iii) Partnership members, for partnerships; private enterprise owners; members, for limited liability companies; founding shareholders, for joint stock companies; and at-law representatives, for limited liability and joint stock companies, must be those who have not held one of the above positions at a multi-level marketing business which has its multi-level marketing registration certificate under Decree No. 42/2014/ND-CP on management of multi-level marketing activities and this Decree; (iv) it opens an escrow account at a commercial bank or a branch of a foreign bank operating in Viet Nam; (v) it has rules of operation, bonus payment program and basic training program in accordance with the Decree; (vi) it has an information technology management system of participants, a website providing information about businesses and operation of its multi-level marketing activities; (vii) it has a system to receive and address obstacles and denouncement of its participants.
5. Decree No. 48/2018/ND-CP dated March 21, 2018 of the Government amending and supplementing some articles of Decree No. 98/2013/ND-CP on administrative penalties for violations in insurance and lottery business will take effect as from 10 May 2018.
According to the new Decree, the subjects of administrative penalty in domains of insurance and lottery business include Vietnamese and foreign individuals, and organizations that commit administrative violations in domains of insurance and lottery business.
The organizations subject to administrative penalty in domains of insurance and lottery business in accordance with regulations are: life insurers, non-life insurers, health insurers, re-insurers and insurance brokers, branches of foreign non-life insurers, representative offices of foreign insurers, representative offices of foreign reinsurers, representative offices of foreign insurance brokers, insurance agents as organizations, lottery business companies and lottery agents as organizations and other relevant organizations defined in this Decree.
Decree No. 48/2018/ND-CP stipulates warnings for violations of regulations on the Licence for establishment and operation, and Licence for establishment of representative office of insurers. Specific violations are: Failure to publish daily on 05 consecutive publications contents required for announcement in accordance with the law; Failure to publish one of the contents in the Licence for establishment and operation and Licence for establishment of representative office within the time limit prescribed by law; Failure to publish the amendments or supplements to the representative office permit according to the law.
The Decree also stipulates that the acts of correction to Licence for establishment and operation and Licence for establishment of representative office shall be fined from VND 20-30 million and will have material evidences confiscated.
6. Decree No. 49/2018/ND-CP dated March 30, 2018 of the Government on quality control of vocational training will take effect since May 15, 2018.
7. Decree No. 50/2018/ND-CP dated April 9, 2018 of the Government on functions, tasks, powers and organizational structure of the Government Inspectorate is scheduled to come into effect since May 29, 2018.
8. Decision No.13/2018/QD-TTg dated 6 March 2018 of the Prime Minister took effect as from May 1, 2018.
Accordingly, the Prime Minister can consider approving loans exceeding credit limits in electricity, coal, oil and gas, transport and other prioritised industries, based upon the Prime Minister’s instructions. The new regulation seeks to help lenders and borrowers develop initiatives to carry out their projects, which are important to the nation’s socio-economic development.
To qualify for the loans, borrowers are required to prove they possess no non-performing loans in the three consecutive years before the loan application date, while their debt ratio must be less than three times their equity capital, according to their latest quarterly or yearly financial statements.
Their projects must also assist in the nation’s socio-economic development, improving people’s living standards in the selected industries or other priority sectors, as approved by the National Assembly or the Prime Minister.
9. Decision No. 14/2018/QD-TTg dated March 12, 2018 of the Prime Minister promulgating regulation on cooperation on permitting foreign entities to conduct scientific research in the territorial waters of Vietnam, inspecting, controlling and taking actions against violations thereof took effect as from May 1, 2018.
This Regulation provides for the principles, contents, methods and responsibility for cooperation between the Ministry of Natural Resources and Environment, the Ministry of National Defense, the Ministry of Foreign Affairs, the Ministry of Public Security and the Ministry of Science and Technology (hereinafter referred to as “Ministries”) in permitting foreign entities to conduct scientific research in the territorial waters of Vietnam; processing applications for changes in permitted contents without amendment or extension of the permission decision; inspecting, controlling and taking actions against violations committed by foreign entities that conduct scientific research in the territorial waters of Vietnam.
Giving permission mentioned in this Regulation includes issuance, re-issuance, amendment and extension of a decision on permission for scientific research granted to a foreign entity to conduct scientific research in the territorial waters of Vietnam.
10. Beside the documents mentioned as above, other legal normative documents also come into effect as from May 2018, including:
- Circular No. 21/2017/TT-BCT dated 23 October 2017 of the Ministry of Finance on promulgation of National technical regulations on content of Formaldehyde in textile products took effect as from 1 May 2018;
- Circular No. 25/2018/TT-BTC dated 16 March 2018 of the Ministry of Finance amendments to some provisions pertaining to VAT, EIT and PIT took effect as from 1 May 2018;
- Circular No. 30/2018/TT-BTC dated March 28, 2018 of the Ministry of Finance on amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 75/2017/TT-BTC of July 21, 2017, amending and supplementing a number of articles of Circular No. 55/2016/TT-BTC of March 23, 2016, providing a number of contents on financial management of investment projects in the form of public-private partnership and investor selection expenses will take effect as from 12 May 2018;
- Circular No. 33/2018/TT-BTC dated March 30, 2018 of the Ministry of Finance on prescribing the rates and the collection, remittance and management of appraisal charges for grant of international tour operator licenses or domestic travel service business licenses; appraisal charges for grant of tour guide’s cards; and fees for grant of licenses for establishment of Vietnam-based representative offices of foreign travel service business enterprises will take effect as from 14 May 2018;
- Circular No. 34/2018/TT-BTC dated March 30, 2018 of the Ministry of Finance on prescribing the rates and collection, remittance and management of charges for appraisal for recognition of ratings of tourist accommodation establishments and recognition of other tourism service establishments as meeting tourist service standards will take effect as from 14 May 2018./.