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.
In labor relations, during the implementation of a labor contract with an employee (the “Employee”), the employer (the “Employer”), due to various reasons, may decide to unilaterally terminate the labor contract contrary to the prevailing Labor Code (the “Labor Code”).
Recently, the Government has promulgated Decree No. 141/2017/ND-CP dated 7 December 2017 providing for regional minimum wages applicable to the employees working under a labor contract. Accordingly, the regional minimum wages applicable to the employees working for the enterprises are set forth as below:
When a credit institution, a foreign bank branch (the “Credit Institution”) is found in one of the following cases but has not been placed under special control in accordance with the laws, the State Bank will consider applying early intervention, specifically when the Credit Institution:
On 1 January 2018, Decree No. 123/2017/ND-CP (“Decree 123”) amending and supplementing Decree No. 45/2014/ND-CP providing the collection of the land use levy and Decree No. 46/2014/ND-CP providing the collection of the land rent and water surface rent will take effect.
Within a time-limit of sixty (60) days from the date the enterprise is granted a new, renewed or re-issued Certificate of satisfaction of security and order conditions, the competent police body will carry out post-inspection procedures.
On 1 January 2018, Decree 126/2017/ ND-CP on transforming State-owned enterprises (SOEs) and one-member limited liability companies with 100% charter capital invested by State-owned enterprises into joint stock companies (“Decree 126”) will take effect and replace Decree 59/2011/ND-CP, Decree 189/2013/ND-CP, and Decree 116/2015/ND-CP.
On 1 November 2017, the Government issued Decree No. 119/2017/ND-CP (“Decree 119”), replacing Decree No. 80/2013/ND-CP dated 19 July 2013 (“Decree 80”) on the sanctioning of administrative violations in the domain of standard, measurement and quality of products and goods. Decree 119 takes effect on 15 December 2017.
On 25 October 2017, Circular No. 115/2017/TT-BTC (“Circular 115”) guiding the supervision of trading on securities market was issued and will replace Circular No. 13/2013/TT-BTC (“Circular 13”) as from 08 December 2017.
Removing the entanglements related to the guarantee of houses to be formed in the future (“Future House”) is one of the legal requirements for the Future Houses to be for sale. Therefore, on 29 September 2017, the Governor of the State Bank of Vietnam issued Circular No. 13/2017/TT-NHNN (“Circular 13”) amending, supplementing a number of articles of Circular No. 07/2015/TT-NHNN dated 25 June 2015 regulating bank guarantees (“Circular 07”), specifically guiding the conditions, procedures for underwriting in the sale, hire-purchase of the Future Houses of credit institutions, branches of foreign banks in Vietnam (the “Bank”).
The 2014 Law on Enterprises provides new provisions which allow joint stock companies to choose their organizational and management model instead of complying with a certain model stipulated in the 2005 Law on Enterprises. Accordingly, joint stock companies have the right to choose one of the following organizational models (Article 134 of the 2014 Law on Enterprises):
In April 2017, the People's Court of H. City decided to initiate the bankruptcy process of Hoang Minh Co., Ltd. due to the fact that Hoang Minh was in the bankruptcy status, failing to repay several debts overdue more than three (03) months. Among the debts Hoang Minh was obliged to pay, there was a loan of nearly VND 20 billion which Hoang Minh borrowed from XYZ Bank, secured by the land use right of Mr. Le Quang Tam under the mortgage agreement between Mr. Tam and the Bank.
On 17 October 2017, the Government issued Decree 116/2017/ND-CP on requirements for manufacturing, assembly, and import of automobiles and trade in automobile warranty and maintenance services (“Decree 116”). Accordingly, the enterprises manufacturing, assembling and importing automobiles and providing in automobile warranty and maintenance services shall meet the conditions and obtain the certificates as set forth in Decree 116.