The letter of credit (“L/C”) is an international payment vehicle used worldwide and the most commonly used one. However, by using L/C worldwide, the parties participating in a transaction usually give not enough concerns on the terms and conditions of the L/C opened under the contract. In fact, the L/C vehicle contains many risks as mentioned under Case Law No. 13/2017/AL issued by the Judges’ Council of the Supreme Court (“Judges’ Council”) dated 14 December 2017 (“Case Law 13”).
Business investment conditions in the field of food safety; medicine; donation, taking, transplanting tissues and organs, donating and taking bodies; chemicals for insecticidal and germicidal preparations for domestic and medical use; medical examination and treatment; cosmetics; HIV/AIDS prevention and control; reproductive health have been significantly reduced in accordance with Decree No. 155/2018/ND-CP issued by the Government and coming into effect on 12 November 2018 (“Decree 155”). Noteworthy are changes in the following areas:
Decree 148/2018/ND-CP promulgated by the Government on 24 October 2018 (“Decree 148”) has significant changes, directly affecting rights and obligations of the employee (the “Employee”) and the employer (the “Employer”) in comparison with Decree 05/2015/ND-CP dated 12 January 2015 of the Government detailing and guiding a number of contents of the Labor Code (“Decree 05”). A number of new points of Decree 148 are set forth as below:
Accordingly, enterprises are only required to provide financial statements audited by qualified auditing organizations without having to be profitable in their business activities when carrying out procedures for issuing corporate bonds. In addition, there are some notable changes in the provisions on corporate bond issuance:
As of 8 October 2018, the procedures for applying for a work permit for foreign workers in Vietnam (“Foreign Worker”) have changed in line with the reduction of procedural pressure as follows:
To further promote the development and investment incentive in the education sector, as from 20 November 2018, some regulations on the statutory conditions and time line conducting the investment procedures and activities in educational field will be significantly reduced. Specifically:
Registration for secured transaction is a measure usually actively carried by parties to secured transactions to show the mortgagor’s commitment to its performance of obligations (the “Securing Party”) and ensure effectiveness against third parties. Actually, registration for secured transaction seemingly means as to ensure the legitimate rights and interests of the mortgagee (the "Receiving Party") when the involving parties voluntarily comply with the secured transaction or after the Receiving Party detects violations of secured obligations and requests for exercise of its rights on the basis of registered secured transactions.
Recently, the Government has issued Decree No. 136/2018/ND-CP amending a lot of Decrees regulating investment and business conditions in the resources and environment sector (the “Decree 136”).
On 15 October 2018, the Government promulgated Decree No. 143/2018/ND-CP detailing the Law on Social Insurance and the Law on Occupational Safety and Health on compulsory social insurance of foreign employees working in Vietnam ("Decree 143") with the following remarkable contents:
On 8 October 2018, the Government issued Decree No. 141/2018/ND-CP amending and supplementing a number of articles of the decrees prescribing the handling of violations of law in business activities by multi-level mode (“Decree 141”). Accordingly, Decree 141 increases as well as supplements a number of new penalties for illegal multi-level selling behavior.
As from 10 October 2018, the regulations on the organization and operation of the Foreign Language and Information Centers (the “Center”) have some remarkable changes as follows.
Decree No. 124/2018/ND-CP (“Decree 124”) dated 19 September 2018 amending Decree No. 63/2011/ND-CP (“Decree 63”) dated 28 July 2011 of the government guiding some articles of Law on Commercial Arbitration took effect on 19 September 2018. Decree 124 has some changes to simplify procedures for issuance licensing and operation registration of Commercial Arbitration Centers in Vietnam.
In order to facilitate and encourage investment and business in the agricultural sector, on 17 September 2018, the Government issued Decree No. 123/2018/ND-CP amending and supplementing a number of Decrees regulating investment and business conditions in the field of agriculture.
Under current regulations, all enterprises, when making or revising their payscales, payrolls and labour productivity norms must submit them to the district-level State management agent on labour where their production and business establishments are located for the purpose of monitoring and inspection. With respect to enterprises having many business locations and branches operating in different areas, they must submit such dossiers to district-level State management agent on labour where such business locations or branches are located.
On 4 September 2018, the Government issued Resolution No. 116/NQ-CP on simplification of administrative procedures, citizenship documents related to population management under the jurisdiction of the Ministry of Foreign Afraid (“Resolution 116”). Specifically, Resolution 116 amends the required documents for obtaining the first ordinary passport for Vietnamese residing overseas
On 19 September 2018, the Supreme Court issued Official Dispatch No. 02/GD-TANDTC (“Dispatch 02”) on guidelines for some matters of administrative procedures
Circular No. 07/2018/TT-BLDTBXH dated 1 August 2018 of the Ministry of Labor, War Invalids and Social Affairs ("Circular 07") guiding the formulation of the employment utilization plan and the implementation of the policies for the employees when equitization is carried out under Decree No. 126/2017/ND-CP dated 16 November 2017 on the transformation of State-owned enterprises and one-member limited liability companies invested by State-owned enterprises with 100% of their charter capital into joint-stock companies will take effect from 15 September 2018.
The real estate market, especilly large-scale apartment projects at prime location are always a hot topic to those interested in this field. Although the type of apartment is no longer a strange topic in Vietnam, reality shows that in many cases, both investment owners and customers having such demand still fail to not fully understand conditions for apartment handover, which leads to disagreements and unnecessary disputes between the parties in the process of implementation of the apartment sale contract.
The enterprise and its dependent unit (the “Enterprise”) having being issued with the enterprise registration certificate or certificate of dependent unit registration (the "ERC") before 20 August 2018 are not required to update and supplement the business lines according to the new economic sector system in Decision No. 27/2018/QD-TTg promulgating the economic sector classification system of Vietnam (“Decision 27”).
On 17 October 2018, the Ministry of Public Security issued Decision No. 4513/QD-BCA-V03 approving the reform of specialized inspection for import and export goods and simplification, reduction of business conditions under the responsibility of the Ministry of Public Security ("Decision 4513").