The Government has issued Decree No. 95/2018/ND-CP to regulate the issuance, registration, depository, listing and transaction of debt instruments on the securities market. The decree officially took effect on 1 July 2018. In addition to the types of Foreign Currency Bonds, Bonds guarantee market liquidity, Bonds to build the country there are Green Bonds.
The 2018 Law on Competition was officially adopted by the National Assembly on 12 June 2018, It has many new noteworthy provisions for enterprises.
Concentrated promotional programs organized by central and provincial governments for a fixed period of time, in the form of hours, days, weeks, months, promotion seasons or holidays, Tet according to the labor law will be allowed to apply the maximum discount of 100%. Apart from the above cases, the maximum discount rate for goods and services in normal promotional activities are not to exceed 50% of the value of such goods or services immediately before the promotional period.
On 15 May 2018, the Council of Judges of the Supreme People’s Court issued Resolution No. 03/2018/NQ-HDTP (“Resolution 03”) guiding implementation of certain regulations in settlement of disputes over bad debts and collaterals by the People’s Court.
One of the noteworthy new contents of the 2015 Criminal Code (“Criminal Code”) is the criminal liability of the corporate legal entity which has been added to the Criminal Code.
On 15 June 2018, the Government promulgated Decree 88/2018/ND-CP on adjustment of retirement pensions, social insurance allowances and monthly allowances (“Decree 88”).
The foregoing are some key contents of Decree No. 86/2018/ND-CP issued by the Government on 6 June 2018. Decree No. 86/2018/ND-CP will take effect on 1 August 2018 to replace Decree No. 73/2012/ND-CP dated 26 September 2012 of the Government regulating foreign cooperation and investment in education and Decree No. 124/2014/ND-CP issued by the Government on 29 December 2014 amending Article 31.6 of Decree No.73/2012/ND-CP.
Decree No. 87/2018/ND-CP (“Decree 87”) on Gas Business will officially come into effect from 1 August 2018 and replace Decree No. 19/2016/ND-CP (“Decree 19”).
Pursuant to Article 171 of the 2012 Labor Code (the “Labor Code”), foreign employees working in Vietnam must have work permits (the “WP”). The term of the issued WP will comply with the labor contract expected to be signed but not exceed two (02) years in accordance with Article 173 of the Labor Code and Article 11 of Decree 11/2016/ND-CP detailing a number of articles of the Labor Code (“Decree 11”).
Recently, the Central Committee of the Communist Party of Vietnam promulgated Resolution No. 27-NQ/TW dated 21 May 2018 on reforming the salary policy for cadres, civil servants, armed forces and employees in the enterprises ("Resolution 27") and Resolution No. 28-NQ/TW dated 23 May 2018 on reforming the social insurance policy ("Resolution 28"). The followings are major changes in the salary and social insurance policies to which the enterprises and employees should pay attention.
From 10 July 2018, enterprises developing infrastructure and enterprises in the eco-industrial zone will be encouraged to make investment and enjoy the following incentives:
In line with Article 38 of Decree 40/2018/ND-CP dated 12 March 2018 of the Government on management of the business activities in form of multi-level marketing (“Decree 40”), the persons who pass the examination on the legal knowledge of multi-level marketing (the “MLM”) will be granted with the Confirmation on legal knowledge of MLM (the “Confirmation”) by the Vietnam Competition and Consumer Protection Authority within fifteen (15) working days from the implementation of the examination.
From 1 June 2018, current civil servants are entitled to participate in the activities of drug introduction if satisfying the conditions of professional qualifications in accordance with the laws. This is one of the highlights of Circular No. 07/2018/TT-BYT issued by the Ministry of Health on 12 April 2018 to detail some articles on pharmaceutical business of the Pharmacy Law and Decree No. 54/2017/ND-CP dated 8 May 2017 of the Government detailing some articles and measures to implement the Pharmacy Law (“Circular 07”).
As from 19 June 2012, investors participating in the implementation of a PPP project will not need to carry out procedures for registration of Investment Registration Certificate (the “IRC”) before implementation of the project. Projects having been granted the IRC before 19 June 2018 will continue to be implemented in accordance with the contents of the IRC. In cases where the project needs amending, the parties will amend the project contract in accordance with the relevant provisions of law, without conducting procedures for amending the IRC. In cases where the project contract after amendment is different from the granted IRC, the parties to the project contract will comply with the amended project contract and take responsibility before the law for such amendment.
On 24 April 2018, the Ministry of Construction issued Circular No. 03/2018/TT-BXD ("Circular 03") elaborating on a number of articles of the Government’s Decree No.139/2017/ND-CP dated 27 November 2017 on penalties for administrative violations against regulations on investment and construction; extraction, processing and trading of minerals used in construction, production and trading of building materials; management of infrastructural constructions; real estate business, housing development, management and operation of apartment buildings and office buildings (“Decree 139”).
The 2014 Law on Enterprises requires shareholders of joint stock companies to contribute shares of capital contribution in full within ninety (90) day from the date of issuance of the Enterprise Registration Certificate (the “ERC”) for the establishment of a joint stock company (“Maximum Duration of Capital Contribution”).
The official permission for foreigners to own residential houses in Vietnam in accordance with the laws on residential housing in recent years has created a strong attraction for foreign organizations and individuals to look for investment, business and work opportunities in Vietnam. However, in practice, in the implementation of regulations governing this issue, there are still some that have unsuitable interpretations and applications regarding the right to receive transfer of commercial house purchase contract (“HPC”) of foreign organizations and individuals, which obstruct the legitimate rights and interests of the concerned parties.
From 1 February 2018, the imported goods for export having the input value added tax not yet deducted of VND 300 million or more will be subject to the value added tax refund on a monthly, quarterly basis; where the input value added tax not yet deducted within a month or quarter is less than VND 300 million, the amount may be deducted in the next month, quarter.
As from 1 June 2018, foreign investors may (i) contribute capital to establish commodity exchange (“CE”); and (ii) purchase shares of or pay capital to the CE established in Vietnam at a proportion of not exceeding 49% of the charter capital of the CE.
Decree No. 22/2018/ND-CP detailing a number of articles and measures to implement the 2005 Intellectual Property Law and the 2009 Law amending and supplementing a number of articles of the Intellectual Property Law ("IP Law") on copyright and related rights ("Decree 22") officially takes effect from 10 April 2015, replacing Decree No. 100/2006/ND-CP ("Decree 100") and Decree No. 85/2011/ND-CP ("Decree 85") amending and supplementing a number of articles of Decree 100.