Nine laws come into effect as from November 2018There are a range of legal documents of the Vietnamese Government, the Prime Minister and ministries coming into effect as from November 2018, as follows:1. Decree No. 117/2018/ND-CP dated September 11, 2018 of the Government on protection of confidentiality and provision of client information of credit institutions and foreign banks’ branches came into effect since November 1, 2018 and replaces the Government’s Decree No. 70/2000/ND-CP dated November 21, 2000.
According to the Decree, “client information of a credit institution or foreign bank’s branch” means information provided by a client and information generated while the client requests or is provided with licensed banking operations, products and services and includes client identification information, account information, deposit information, property information, transaction information and information about organizations and individuals that are guarantors at a credit institution or foreign bank’s branch and other relevant information.
Methods for requesting or providing client information, time limit for providing client information and procedures for providing client information of credit institutions and foreign banks’ branches for other organizations or individuals as specified in Point a Article 11 of this Decree shall comply with regulations of codes, laws and resolutions of the National Assembly and legal documents elaborating such codes, laws and resolutions (Article 12).
2. Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government on prescribing electronic invoices for sale of goods and provision of services took effect since November 1, 2018.
According, all enterprises, business organizations and other organizations, when selling goods, providing services are obliged to issue e-invoices with tax authorities’ identification codes.
In addition, business households or individuals keeping accounting records, regularly hiring at least 10 employees and earning the preceding year’s revenue which equals at least 03 (three) billion dong in the commerce and service sector shall be also obliged to use e-invoices with tax authorities’ identification codes.
Particularly, enterprises doing business in the following sectors: electricity, petroleum, post and telecommunications, transportation, clean water, finance and credit, insurance, healthcare, electronic commerce, supermarket business or trading shall be entitled to use e-invoices without tax authorities’ identification codes.
Another special point of this Decree is that e-invoices must be issued whenever goods are sold and/or services are provided regardless of value of each sale or provision. Under the earlier regulations, it is exempt from issuance of invoices upon selling goods, providing services valued at under VND 200,000.
The use of e-invoice with or without the tax agency's identification code is obliged to be registered on the Web Portal of the General Department of Taxation according to Form No. 01 issued together with this Decree. Notably, from the date of use of e-invoices as registered, paper invoices which remain unused (if any) must be destroyed rather than being used further.
3. Decree No. 121/2018/ND-CP dated September 13, 2018 of the Government on amendments to the Government's Decree No. 49/2013/ND-CP dated May 14, 2013 on guidelines for the Labor Code in terms of wages took effect from November 1, 2018.
This Decree is to supplement regulations in order to clarify the purpose of establishment of labor productivity norms and supplement entities that are exempt from submitting its pay scale, payroll, and labor productivity norms to the authorities.
Accordingly, the establishment of labor productivity norms according to Article 8 of Decree No. 49/2013/ND-CP is used as the basis for giving product-based pay to employees.
Any enterprise that employs fewer than 10 workers shall be exempt from submitting its pay scale, payroll, and labor productivity norms to the labor authority of district where its business facilities are located.
4. Decree No. 126/2018/ND-CP dated September 20, 2018 of the Government stipulating the establishment and operation of the Viet Nam-based foreign cultural establishments takes effect as from November 5, 2018.
Accordingly, in terms of the operational principles, foreign cultural establishments in Viet Nam will only be allowed to operate when they receive certificates of registration and permits. The branches of foreign cultural establishments in Viet Nam can only operate when they attain certificates.
All the operations of foreign cultural establishments in Viet Nam or their branches in Viet Nam must be in line with the contents inscribed in the certificates of registration, permits and certificates.
During the process of operation, foreign cultural establishments in Viet Nam shall have to abide by the Vietnamese law and respect Viet Nam’s independence, sovereignty, territorial integrity, customs and habits. They must not allow any organizations or individuals to use their names or infrastructure to oppose the State of the Socialist Republic of Viet Nam or to harm the legitimate interests of other countries.
In case of operating in other relevant domains, foreign cultural establishments in Viet Nam shall have to comply with the provisions of Vietnamese law in such domains. All acts of violation of Vietnamese law in the course of operation of foreign cultural establishments in Viet Nam will be handled in accordance with Viet Nam’s current laws provisions.
Foreign cultural establishments in Viet Nam are allowed to set up their branches when they have been operating in Viet Nam for at least two years and have abided by the law and current regulations of Viet Nam.
5. Decree No. 130/2018/ND-CP dated September 27, 2018 of the Government detailing the implementation of E-Transactions Law on digital signature and digital signature certification services will take effect as from November 15, 2018 and replaces Decree No. 26/2007/ND-CP issued in 2007 on the same matter.
According the Decree, the time limit for verifying and licensing digital signature-certification service provision will be shortened from current 60 days to 50 days.
In addition, eligible digital signature certification service providers include the Root Certification Authority, public certification authorities, specialized certification authorities of the Government, and specialized certification authorities of organizations and individuals which possess a certificate of satisfaction of digital signature security conditions.
As defined in the Decree, the digital signature of a person will be created by using a private key corresponding to a public key stated in the digital certificate granted to such person by an eligible certification authority.
Regarding the legal validity of digital signatures, the Decree states that a data message will be considered valid if it is signed with a digital signature meeting safety requirements.
Decree No. 130/2018/ND-CP makes clear that to be regarded as meeting safety requirements, a digital signature must be created while the relevant digital certificate remains valid and is verified with the public key stated in such digital certificate. Also, it must be created with the use of a private key corresponding to the public key indicated in the digital certificate and at the time of signing the private key is subject to the control of the signer only.
6. Decree No. 135/2018/ND-CP dated October 4, 2018 of the Government amending and supplementing the Government’s Decree No. 46/2017/ND-CP dated April 21, 2017 prescribing regulatory requirements for educational investment and operation shall take effect from November 20, 2018.
This Decree aims to reduce procedures in the applications for licenses to establish and operate some education and training institutions, such as: kindergarten, preschool or nursery school; primary school; secondary school; foreign language and computer training center.
In addition, the time limits for issuance of licenses to establish and operate education and training institutions are also reduced. Accordingly, the time limit for issuance license for establishment of a kindergarten is reduced from 15 days to 5 days; the time limit for issuance license for establishment of primary school or secondary school is reduced from 20 days to 5 days (from the day on which assessment results are given).
7. Decree No. 137/2018/ND-CP dated October 8, 2018 of the Government amending and supplementing a number of articles of the Government’s Decree No. 123/2013/ND-CP of October 14, 2013, detailing a number of articles and measures to implement the Law on Lawyers shall take effect as from November 25, 2018.
The Decree supplements case that is not entitled to exemption from law training or exemption from or reduction of the law practice probation duration. Specifically, these are persons who have been criminally handled or disciplined and dismissed from the title of judge, procurator, investigator, inspector or verifier; deprived of the title of officer of the People's Public Security Force or deprived of the rank of the People's Army officer; deprived of the title of professor or associate professor of law…
In addition, the operation registration certificate of a law-practicing organization, the law practice registration certificate of a lawyer practicing law shall be revoked when the organization or lawyer fails to resume operation or fails to make a report on suspension from operation for another 6 months after the expiration of the operation suspension duration.
This Decree also supplements provision about person who fails to satisfy the criteria specified in Article 10 of the Law on Lawyers concerning the observance of the Constitution and law or concerning good moral qualities.
8. Decree No. 141/2018/ND-CP dated October 8, 2018 of the Government amending and supplementing a number of articles of decrees prescribing the handling of violations of law in business activities by mode of multi-level will take effect as from November 25, 2018.
In particular, the fine of 80-100 million imposed when you ask others to deposit, pay a sum of money or buy a quantity of goods to sign contracts; Failure to fulfill or incorrect execution of the obligation to purchase goods in accordance with the legal provisions.
In addition, the above fine also applies to transactions whereby participants at multiple levels are granted participants or other economic benefits that other persons in the industry introduce, not to buying or selling goods of the gender descriptions.
Acts of refusal to pay commissions and bonuses when participants have received sales at multiple levels or provide false information about the plan for reward or confusion about the functions and usefulness of the goods will be sanctioned a fine of 80-100 million.
In addition, Decree No. 141/2018/ND-CP also granted a fine of VND20-25 million to persons participating in activities of multi-level business organizations and to persons who have not yet been granted a license in this area.
A fine of between VND 30-40 million is imposed on individuals who organize conferences, seminars, training courses and the introduction of business activities on multiple levels without obtaining the registration certificates for multi-level sales activities.
9. Beside the documents mentioned as above, other legal normative documents also come into effect as from November 2018, including:
- Decision No. 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister on the development of wind power projects coming into effect as from November 1, 2018;
- Circular No. 22/2018/TT-BYT dated September 12, 2018 of the Ministry of Health on prescribing the list of functional foods for under-6 children which are subject to price declaration coming into effect as from November 1, 2018;
- Circular No. 23/2018/TT-BYT dated September 14, 2018 of the Ministry of Health on prescribing the recall and disposal of unsafe foods under the management of the Ministry of Health coming into effect as from November 1, 2018;
- Circular 04/2018/TT-BXD dated May 20, 2018 of the Ministry of Construction issuing National technical regulation on construction and installation of outdoor advertising facilities coming into effect as from November 1, 2018;
- Circular No. 22/2018/TT-NHNN dated September 5, 2018 of the State Bank of Vietnam on new procedures for approval of managing personnel of banks coming into effect as from November 1, 2018;
- Circular No. 27/2018/TT-BCT dated September 19, 2018 of the Ministry of Industry and Trade on annulling the provisions on granting automatic import licenses for motorcycles of a cylinder capacity of 175 cm3 or higher coming into effect as from November 5, 2018;
- Circular No. 30/2018/TT-BCT dated October 1, 2018 of the Ministry of Industry and Trade detailing a number of articles of the Government’s Decree No. 107/2018/ND-CP of August 15, 2018 on rice export coming into effect as from November 15, 2018;
- Circular No. 31/2018/TT-BCT dated October 5, 2018 of the Ministry of Industry and Trade on amendments to regulations on inspection of electrical activities and consumption of electricity, settlement of disputes concerning power purchase agreements coming into effect as from November 20, 2018;
- Circular No. 51/2018/TT-BGTVT dated September 19, 2018 of the Ministry of Transport on amendments to regulations on management and operation of airports and aerodromes coming into effect as from November 5, 2018;
- Circular No. 25/2018/TT-BVHTTDL dated August 30, 2018 of the Ministry of Culture, Sports and Tourism providing for the restriction on tobacco use in theatrical and cinematographic works coming into effect as from November 15, 2018./.
Nine laws come into effect as from November 2018
07/11/2018
There are a range of legal documents of the Vietnamese Government, the Prime Minister and ministries coming into effect as from November 2018, as follows:
1. Decree No. 117/2018/ND-CP dated September 11, 2018 of the Government on protection of confidentiality and provision of client information of credit institutions and foreign banks’ branches came into effect since November 1, 2018 and replaces the Government’s Decree No. 70/2000/ND-CP dated November 21, 2000.
According to the Decree, “client information of a credit institution or foreign bank’s branch” means information provided by a client and information generated while the client requests or is provided with licensed banking operations, products and services and includes client identification information, account information, deposit information, property information, transaction information and information about organizations and individuals that are guarantors at a credit institution or foreign bank’s branch and other relevant information.
Methods for requesting or providing client information, time limit for providing client information and procedures for providing client information of credit institutions and foreign banks’ branches for other organizations or individuals as specified in Point a Article 11 of this Decree shall comply with regulations of codes, laws and resolutions of the National Assembly and legal documents elaborating such codes, laws and resolutions (Article 12).
2. Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government on prescribing electronic invoices for sale of goods and provision of services took effect since November 1, 2018.
According, all enterprises, business organizations and other organizations, when selling goods, providing services are obliged to issue e-invoices with tax authorities’ identification codes.
In addition, business households or individuals keeping accounting records, regularly hiring at least 10 employees and earning the preceding year’s revenue which equals at least 03 (three) billion dong in the commerce and service sector shall be also obliged to use e-invoices with tax authorities’ identification codes.
Particularly, enterprises doing business in the following sectors: electricity, petroleum, post and telecommunications, transportation, clean water, finance and credit, insurance, healthcare, electronic commerce, supermarket business or trading shall be entitled to use e-invoices without tax authorities’ identification codes.
Another special point of this Decree is that e-invoices must be issued whenever goods are sold and/or services are provided regardless of value of each sale or provision. Under the earlier regulations, it is exempt from issuance of invoices upon selling goods, providing services valued at under VND 200,000.
The use of e-invoice with or without the tax agency's identification code is obliged to be registered on the Web Portal of the General Department of Taxation according to Form No. 01 issued together with this Decree. Notably, from the date of use of e-invoices as registered, paper invoices which remain unused (if any) must be destroyed rather than being used further.
3. Decree No. 121/2018/ND-CP dated September 13, 2018 of the Government on amendments to the Government's Decree No. 49/2013/ND-CP dated May 14, 2013 on guidelines for the Labor Code in terms of wages took effect from November 1, 2018.
This Decree is to supplement regulations in order to clarify the purpose of establishment of labor productivity norms and supplement entities that are exempt from submitting its pay scale, payroll, and labor productivity norms to the authorities.
Accordingly, the establishment of labor productivity norms according to Article 8 of Decree No. 49/2013/ND-CP is used as the basis for giving product-based pay to employees.
Any enterprise that employs fewer than 10 workers shall be exempt from submitting its pay scale, payroll, and labor productivity norms to the labor authority of district where its business facilities are located.
4. Decree No. 126/2018/ND-CP dated September 20, 2018 of the Government stipulating the establishment and operation of the Viet Nam-based foreign cultural establishments takes effect as from November 5, 2018.
Accordingly, in terms of the operational principles, foreign cultural establishments in Viet Nam will only be allowed to operate when they receive certificates of registration and permits. The branches of foreign cultural establishments in Viet Nam can only operate when they attain certificates.
All the operations of foreign cultural establishments in Viet Nam or their branches in Viet Nam must be in line with the contents inscribed in the certificates of registration, permits and certificates.
During the process of operation, foreign cultural establishments in Viet Nam shall have to abide by the Vietnamese law and respect Viet Nam’s independence, sovereignty, territorial integrity, customs and habits. They must not allow any organizations or individuals to use their names or infrastructure to oppose the State of the Socialist Republic of Viet Nam or to harm the legitimate interests of other countries.
In case of operating in other relevant domains, foreign cultural establishments in Viet Nam shall have to comply with the provisions of Vietnamese law in such domains. All acts of violation of Vietnamese law in the course of operation of foreign cultural establishments in Viet Nam will be handled in accordance with Viet Nam’s current laws provisions.
Foreign cultural establishments in Viet Nam are allowed to set up their branches when they have been operating in Viet Nam for at least two years and have abided by the law and current regulations of Viet Nam.
5. Decree No. 130/2018/ND-CP dated September 27, 2018 of the Government detailing the implementation of E-Transactions Law on digital signature and digital signature certification services will take effect as from November 15, 2018 and replaces Decree No. 26/2007/ND-CP issued in 2007 on the same matter.
According the Decree, the time limit for verifying and licensing digital signature-certification service provision will be shortened from current 60 days to 50 days.
In addition, eligible digital signature certification service providers include the Root Certification Authority, public certification authorities, specialized certification authorities of the Government, and specialized certification authorities of organizations and individuals which possess a certificate of satisfaction of digital signature security conditions.
As defined in the Decree, the digital signature of a person will be created by using a private key corresponding to a public key stated in the digital certificate granted to such person by an eligible certification authority.
Regarding the legal validity of digital signatures, the Decree states that a data message will be considered valid if it is signed with a digital signature meeting safety requirements.
Decree No. 130/2018/ND-CP makes clear that to be regarded as meeting safety requirements, a digital signature must be created while the relevant digital certificate remains valid and is verified with the public key stated in such digital certificate. Also, it must be created with the use of a private key corresponding to the public key indicated in the digital certificate and at the time of signing the private key is subject to the control of the signer only.
6. Decree No. 135/2018/ND-CP dated October 4, 2018 of the Government amending and supplementing the Government’s Decree No. 46/2017/ND-CP dated April 21, 2017 prescribing regulatory requirements for educational investment and operation shall take effect from November 20, 2018.
This Decree aims to reduce procedures in the applications for licenses to establish and operate some education and training institutions, such as: kindergarten, preschool or nursery school; primary school; secondary school; foreign language and computer training center.
In addition, the time limits for issuance of licenses to establish and operate education and training institutions are also reduced. Accordingly, the time limit for issuance license for establishment of a kindergarten is reduced from 15 days to 5 days; the time limit for issuance license for establishment of primary school or secondary school is reduced from 20 days to 5 days (from the day on which assessment results are given).
7. Decree No. 137/2018/ND-CP dated October 8, 2018 of the Government amending and supplementing a number of articles of the Government’s Decree No. 123/2013/ND-CP of October 14, 2013, detailing a number of articles and measures to implement the Law on Lawyers shall take effect as from November 25, 2018.
The Decree supplements case that is not entitled to exemption from law training or exemption from or reduction of the law practice probation duration. Specifically, these are persons who have been criminally handled or disciplined and dismissed from the title of judge, procurator, investigator, inspector or verifier; deprived of the title of officer of the People's Public Security Force or deprived of the rank of the People's Army officer; deprived of the title of professor or associate professor of law…
In addition, the operation registration certificate of a law-practicing organization, the law practice registration certificate of a lawyer practicing law shall be revoked when the organization or lawyer fails to resume operation or fails to make a report on suspension from operation for another 6 months after the expiration of the operation suspension duration.
This Decree also supplements provision about person who fails to satisfy the criteria specified in Article 10 of the Law on Lawyers concerning the observance of the Constitution and law or concerning good moral qualities.
8. Decree No. 141/2018/ND-CP dated October 8, 2018 of the Government amending and supplementing a number of articles of decrees prescribing the handling of violations of law in business activities by mode of multi-level will take effect as from November 25, 2018.
In particular, the fine of 80-100 million imposed when you ask others to deposit, pay a sum of money or buy a quantity of goods to sign contracts; Failure to fulfill or incorrect execution of the obligation to purchase goods in accordance with the legal provisions.
In addition, the above fine also applies to transactions whereby participants at multiple levels are granted participants or other economic benefits that other persons in the industry introduce, not to buying or selling goods of the gender descriptions.
Acts of refusal to pay commissions and bonuses when participants have received sales at multiple levels or provide false information about the plan for reward or confusion about the functions and usefulness of the goods will be sanctioned a fine of 80-100 million.
In addition, Decree No. 141/2018/ND-CP also granted a fine of VND20-25 million to persons participating in activities of multi-level business organizations and to persons who have not yet been granted a license in this area.
A fine of between VND 30-40 million is imposed on individuals who organize conferences, seminars, training courses and the introduction of business activities on multiple levels without obtaining the registration certificates for multi-level sales activities.
9. Beside the documents mentioned as above, other legal normative documents also come into effect as from November 2018, including:
- Decision No. 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister on the development of wind power projects coming into effect as from November 1, 2018;
- Circular No. 22/2018/TT-BYT dated September 12, 2018 of the Ministry of Health on prescribing the list of functional foods for under-6 children which are subject to price declaration coming into effect as from November 1, 2018;
- Circular No. 23/2018/TT-BYT dated September 14, 2018 of the Ministry of Health on prescribing the recall and disposal of unsafe foods under the management of the Ministry of Health coming into effect as from November 1, 2018;
- Circular 04/2018/TT-BXD dated May 20, 2018 of the Ministry of Construction issuing National technical regulation on construction and installation of outdoor advertising facilities coming into effect as from November 1, 2018;
- Circular No. 22/2018/TT-NHNN dated September 5, 2018 of the State Bank of Vietnam on new procedures for approval of managing personnel of banks coming into effect as from November 1, 2018;
- Circular No. 27/2018/TT-BCT dated September 19, 2018 of the Ministry of Industry and Trade on annulling the provisions on granting automatic import licenses for motorcycles of a cylinder capacity of 175 cm3 or higher coming into effect as from November 5, 2018;
- Circular No. 30/2018/TT-BCT dated October 1, 2018 of the Ministry of Industry and Trade detailing a number of articles of the Government’s Decree No. 107/2018/ND-CP of August 15, 2018 on rice export coming into effect as from November 15, 2018;
- Circular No. 31/2018/TT-BCT dated October 5, 2018 of the Ministry of Industry and Trade on amendments to regulations on inspection of electrical activities and consumption of electricity, settlement of disputes concerning power purchase agreements coming into effect as from November 20, 2018;
- Circular No. 51/2018/TT-BGTVT dated September 19, 2018 of the Ministry of Transport on amendments to regulations on management and operation of airports and aerodromes coming into effect as from November 5, 2018;
- Circular No. 25/2018/TT-BVHTTDL dated August 30, 2018 of the Ministry of Culture, Sports and Tourism providing for the restriction on tobacco use in theatrical and cinematographic works coming into effect as from November 15, 2018./.