On 1 September 2017, the Government promulgated Decree No. 102/2017/ND-CP (“Decree 102”) replacing Decree No. 83/2010/ND-CP to regulate some matters and provisions to be more appropriate with the promulgated laws and codes relating to the registration of security transactions.
After over two years’ application, the new provisions of the Law on Investment and the related regulations have achieved remarkable positive results. However, besides such positive signals, some inadequacies in understanding and applying the law have caused many difficulties to foreign investors, one of which is how to identify a foreign-invested economic organization in order to apply for a Business License when conducting trading and its directly-related activities ("Commercial Activities").
To be specifict, as from 1 September 2017, some of the conditions applicable to liquor trading under Decree No. 94/2012/ND-CP
Under Circular 23/2017/TT-BLDTBXH of the Ministry of Labour, War Invalids and Social Affairs, as from 2 October 2017, the application dossier for approval for demand for employment of foreign workers; issuance and re-issuance of work permit, certificate of foreign workers eligible for work permit exemption in Vietnam will be conducted via online network through the portal service.
On 30 August 2017, the State Bank of Vietnam (“SBV”) promulgated Circular No. 10/2017/TT-NHNN guiding foreign currency transactions and foreign exchange management for casino business (“Circular 10”) with following notable points:
From 1 January 2018, the employees being foreign citizens working in Vietnam will be subject to the compulsory social insurance (“SI”).
On 12 Stemper 2017, the Ministry of Industry and Trade promulgated Circular No. 16/2017/TT-BCT on project development and model power purchase agreements for solar power projects (“Circular 16”).
On 6 February 2017, the Ministry of Finance issued Circular No. 10/2017/TT-BTC (“Circular 10”) amending and supplementing some articles of Circular No. 234/2012/TT-BTC guiding the management of trading Government bonds, Government guaranteed bonds and local Government bonds (“Government Bonds”). Circular 10 contains many new contents, of which the most prominent one is the permission to borrow Government Bonds for sale.
On 14 August 2017, the State Bank of Vietnam issued Circular No. 09/2017/TT-NHNN (“Circular 09”) amending Circular No. 19/2013/TT-NHNN (“Circular 19”) on trading and settling bad debts of credit organizations by Vietnam Asset Management Company (“VAMC”).
The new regulations on the seal in the 2014 Law on Enterprises giving the enterprise more liberty at creating the seal has helped the enterprise be more active in making its own seal with specific characteristics and differences compared to other enterprises.
Inorganic or mixed mineral fertilizer products (DAP and MAP) of eight (8) HS codes: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; and 3105.90.00 have been added to the list of goods subject to provisional safeguard measures under Decision No. 3044/QD-BCT dated 4 August 2017 (“Decision 3044”) of the Ministry of Industry and Trade.
On 10 August 2017, the Government promulgated Decree 94/2017/ND-CP on goods, services, areas under the State monopoly in commercial activities (“Decree 94”).
On 1 August 2017, the Ministry of Finance promulgated Circular No.79/2017/TT-BTC ("Circular 79") amending and supplementing Item b1, Point b, Clause 4, Article 48 of Circular No. 156/2013/TT-BTC ("Circular 156") guiding the implementation of some articles of the Law on Tax Administration.
On 21 June 2017, at the 3rd session of Legislature XIV, the National Assembly officially passed Resolution No. 42/2017/QH14 on pilot settlement of bad debts of credit institutions ("Resolution 42"). This is apparently a positive signal for Vietnam’s banking sector, given that the amount of bad debts, amount of implicit debt risk and amount of debt sold to Vietnam Asset Management Company currently unhandled account for 10.08% of the total outstanding loans of the banking sector (equivalent to about VND 600,000 billion, according to statistics reported by the Governor of the State Bank to the National Assembly, as at 31 December 2016).
On 4 July 2017, the Vietnamese Government issued Resolution No. 59/NQ-CP on simplifying administrative procedures under the management function of the State Bank of Vietnam (“Resolution 59”) together with the simplification plan for the implementation by the relevant competent agencies (“Plan”).
On 19 June 2017, the Law on Technology Transfer No. 07/2017/QH14 was officially approved by the National Assembly (“2017 Law”). The 2017 Law will take effect on 1 July 2018 and replace to the Law on Technology Transfer No. 80/2006/QH11 (“2006 Law”).
On 19 July 2017, the Supreme People’s Court promulgated official Dispatch No. 152/TANDTC-PC (“Dispatch 152”) guiding settlement of disputes on credit contracts and handling of bad debts.
1980 Vienna Convention of the United Nations on Contracts for the International Sale of Goods (CISG) comes into force in Vietnam on 1 January 2017, opening quite a few opportunities and advantages for enterprises when they conduct international transactions.
With its “open” policies in the field of investment together with a large potential market, Vietnam has attracted many foreign investors in the world (“Foreign Investors”) to come and invest in business. In order to conduct their business, one of the options that the Foreign Investors choose to enter the Vietnamese market is the acquisition of a whole 100% shares, capital contributions (“Charter Capital”) in a target company which has been established in Vietnam (“the Company”).
On 12 June 2017, the National Assembly of Vietnam passed the Foreign Trade Management Law No. 05/2017/QH14 (the “Foreign Trade Management Law”).