On 8 March 2018, the Government issued Decree No. 31/2018/ND-CP detailing the law on foreign trade management in terms of origin of goods ("Decree 31"). Decree 31 took effect on the date of issue, replacing Decree No. 19/2006/ND-CP after more than ten (10) years of its application.
As from 1 May 2018, the maximum fine for an administrative violation in the accounting sector increases from VND 60,000,000 to VND 100,000,000 for organizations and increases from VND 30,000,000 to VND 50,000,000 for individuals. The maximum fine for an act of administrative violation in the independent auditing sector remains at VND 50,000,000 for individuals and VND 100,000,000 for organizations
On 1 May 2018, Circular No. 25/2018/TT-BTC (“Circular 25”) issued by the Minister of Ministry of Finance on 16 March 2018 will officially come into effect, guiding Decree No. 146/2017/ND-CP ("Decree 146"). Circular 25 amends and supplements Circular No. 78/2014/TT-BTC (“Circular 78”) and Circular No. 111/2014/TT-BTC with some new noteworthy points as follows
In order to highlight the transparency of multi-level marketing (the “MLM”) activities and improve the efficiency of the State management of MLM activities, the Government has just issued new regulations applicable to MLM enterprises, specifically:
The mechanism for the establishment, organization, management and operation of innovative start-up investment funds and the use of local budgets for investment in small and medium innovative start-up enterprises are notable new provisions prescribed in Decree No. 38/2018/ND-CP issued by the Government on 11 March 2018.
On 11 March 2018 the Government issued Decree No. 39/2018/ND-CP guiding the Law on Assistance to Small- and Medium-sized Enterprises to replace Decree No. 56/2009/ND-CP dated 30 June 2009, clearly defines criteria for determining small and medium enterprises and the support for conversion from business households, creative start-ups
On 27 February 2018, the Government promulgated Decree 24/2018/ND-CP deals with complaint and denunciatios settlements in the domain of labor, occupational education and activities of sending Vietnamese laborers to work abroad under contracts, jobs, labor safety and hygiene (“Decree 24”). Decree 24 took effect as from 15 April 2018.
Decree No.23/2018/ND-CP (“Decree 23”) regulating the regime on compulsory fire and explosion insurance was promulgated by the Government on 23 February 2018, replacing Decree No.130/2006/ND-CP.
In line with the incentive policy for attracting the foreign investment and employment, quite a few foreigners have decided to choose Vietnam as an ideal place in order to invest and develop their careers. Accordingly, many foreigners wish to own the residential houses in Vietnam to implement the investment activities as well as long-term residence. At present, the laws on residential houses have made significant progress in recognizing and expanding the foreigner’s housing ownership in Vietnam compared to the previous regulations. However, in practice, many foreigners are still struggling to make their wishes come true.
In accordance with Vietnamese law, in addition to negotiation conducted by the parties to a dispute, there are currently three methods of dispute resolution (“DR”) for a commercial or economic dispute: (i) commercial mediation; (ii) commercial arbitration; and (iii) litigation at the Court.
From 2 February 2018, the implementation of food product self-declaration and the issue of certificate of food safety conditions undergo many changes.
On 23 February 2018, the Government promulgated Decree 22/2018/ND-CP detailing a number of articles and measures for implementation of the 2005 Law on Intellectual Property and the Law amending and supplementing a number of articles of the Law on Intellectual Property (the “Law on IP”) on copyright and related rights (“Decree 22”).
Accordingly, as from 15 January 2018, the commercial activities of foreign traders in Vietnam have some important changes as follows:
On 15 January 2018, the Government issued Decree 08/2018/ND-CP amending a number of decrees related to investment and business conditions under the State management of Ministry of Industry and Trade.
Remedying the shortcomings of Decree 140/2007/ND-CP, Decree 163/2017/ND-CP dated 10 December 2017 of Government on provision of logistics services (“Decree 163”) permits foreign investor to not only establish the companies but also contribute capital, purchase shares in logistics companies in Vietnam with their ratio of shares ranging from 49% to 100% of the charter capital, subject to the registered logistics services, upon their satisfaction of a number of statutory conditions.
On 29 September 2017, the Ministry of Natural Resources and Environment promulgated Circular No. 33/2017/TT-BTNMT ("Circular 33") detailing Decree No. 01/2017/ND-CP (“Decree 01”) dated 6 January 2017 of the Government amending and supplementing a number of decrees detailing the implementation of the Land Law and amending and supplementing a number of articles of the circulars guiding the implementation of the Land Law.
On 29 November 2017, the Ministry of Industry and Trade announced that the quantity of raw tobacco (HS 2401) imported under the tariff quota in 2018 will be 53,604 tons (Fifty-three thousand six hundred and four tons).
On 27 December 2017, the Government issued Resolution No. 136/NQ-CP (“Resolution No. 136”) on simplifying administrative procedures, citizen documents related to population management under the State management functions of the Ministry of Planning and Investment attached with the Plan of simplification for implementation by the relevant competent bodies (the “Plan”).
Circular No. 14/2017/TT-NHNN issued by the State Bank of Vietnam on 29 September 2017 on methods of calculating interest on depositing and credit extension transaction between credit institutions (“Credit Institutions”) and clients (“Circular 14”) took effect as from 1 January 2018.
The current investment law contains many new provisions to reform administrative procedures to attract foreign investment, such as shortening the list of the conditional business lines applicable to foreign investors down to 243 business lines, not requiring them to carry out procedures for being granted the investment registration certificate (the “IRC”) when investing in the form of capital contribution or share purchase of an enterprise established in Vietnam, and other new remarkable points. In addition, the spirit of the reform and investment attraction of Vietnam was also deeply expressed at the 2017 APEC Economic Leaders' Meeting held in Da Nang recently, with a new mission of the country and the region, namely “promoting trade, free and open investment in the Asia-Pacific region”. Many experts said that the contents achieved at this Meeting will continue to create new motivation for attracting investment in Vietnam in the coming period.