Legal News in July 2018

1. Maximum percentage for credit institutions’ short-term lending in 2018

On 31 July 2018, the Government of State Bank of Vietnam issued Circular No. 16/2018/TT-NHNN, amending Circular No. 36/2014/TT-NHNN, regulating prudential limits and ratios for operations of credit institutions and foreign banks’ branches (“Circular 16”).

According to the new Circular, credit institutions and foreign banks’ branches must abide by the maximum percentage for short-term funding source used for providing mid-term and long-term loans in accordance with the following schedule:

(a) From 1 January 2018 to the end of 31 December 2018:

(i) Banks and foreign banks’ branches: 45%;

(ii) Non-bank credit institutions: 90%.

(b) From 1 January 2019:

(i) Banks and foreign banks’ branches: 40%;

(ii) Non-bank credit institutions: 90%.

In addition, Circular 16 provides for a formula for calculating the ratio of the outstanding debt balance to the total deposit.

This Circular shall enter in force on 31 July 2018.

2. Procedures for certification of goods used for technological renovation

On 31 July 2018, the Prime Minister promulgated Decision No.30/2018/QD-TTg, regulating the order of and procedures for certification of goods used for the development of technology incubation, science and technology, technological innovation, etc.

Accordingly, the procedure for certification of goods used for technological renovation are defined as follows:

(a) Organizations and individuals shall submit application dossiers for certification of their use for technological renovation via post or directly to the Ministry of Science and Technology (the required documents in the dossier are prescribed in Article 2 of the Decision).

(b) If the application dossier is found inadequate and needs to be amended, the competent authority shall notify the applicant within 3 working days from the date of receipt of the dossier.

(c) Within 10 days from the date of receipt of the dossier, the Ministry of Science and Technology shall reply in writing on the list of directly-used goods or give a written refusal.

(d) In the case where verification of the dossier is required, which leads to extending the time-limit for reply, the Ministry of Science and Technology shall send a written notice thereof to the applicant; verification and reply time shall be no more than 20 days from the date of receipt of the dossier.

This Decision shall take effect on 15 September 2018.

3. Simplified conditions for trading jewellery gold

This is a prominent feature in Decision No. 1417/QD-NHNN, approving the plan of simplifying business conditions within the scope of management function of the State Bank of Vietnam.

Accordingly, the State Bank of Vietnam has approved the plan of cancelling certain conditions for jewellery and fine art gold business activities; in particular, the two following conditions are cancelled:

(a) Being an enterprise established in accordance with the laws, having registered business line for purchase and sale of jewellery and fine art gold in its Enterprise registration certificate.

(b) Having the location, material facilities and equipment necessary for purchase and sale of jewellery and fine art goldand at the same time, the following two conditions for certificates of satisfaction of conditions for jewellery and fine art gold production are cancelled:

(a) Being an enterprise established in accordance with the laws, having registered business line for production of jewellery and fine art gold in its Enterprise registration certificate.

(b) Having the location, material facilities and equipment necessary for production of jewellery and fine art gold.

This Decision shall take effect on 9 July 2018.

4. Amendment of the process for collection of Social Insurance(SI), Health Insurance (HI) and Unemployment Insurance (UI) premiums

This is one of notable new contents of Decision No. 888/QD-BHXH issued by the Social Security of Vietnam on 16 July 2018 (“Decision 888”), amending the process for collection of social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance premiums; management of social security booklets and health insurance cards accompanying Decision No. 595/QD-BHXH dated 14 April 2017(“Decision 595”).

Accordingly, the new Decision allows a company branch to choose to pay SI to the social security office either at its locality or through its parent company. The current regulations in Decision 595 only allowed enterprises’ branches to pay SI at their localities.

In addition, Decision No. 888 amends certain SI and HI-related Appendices to and standard forms in Decision 595 as follows:

(a) Amending Appendix 01: Types of papers used as the basis for granting, recording and amending social insurance books;

(b) Amending Appendix 03: Types of papers used as the basis for re-granting, recording and amending health insurance cards;

(c) Amending guidelines for declaration in Form TK1-TS: Declaration for participation in SI, revision of SI and HI information (enclosed with the guidelines).

This Decision shall enter into force on 1 July 2018.

5. Guidelines for raising pensions, and SI and monthly allowances

On 29 June 2018, the Ministry of Labour, War Invalids and Social Affairs issued Circular No. 05/2018/TT-BLDTBXH, providing guidelines for adjustment of pension, and social insurance and monthly allowances (“Circular 05″).

Accordingly, from 1 July 2018, the level of pension, and social insurance and monthly allowance will be increased by 6.92% compared to that of June 2018 and calculated in accordance with the following formula:

Benefit from July 2014 = Payment in June 2018 x 1.0692

The above-said adjustment formula shall apply to the subjects defined in Clauses 1, 2, 3 and 8, Article 1 of Decree No. 88/2018/ND-CP of 15 June 2018.

Circular 05 shall take effect on 15 August 2018, but its regimes will be implemented from 1 July 2018.

6. Criteria for evaluating principals of schools of general education

On 20 July 2018, the Ministry of Education and Training issued Circular No.14/2018/TT-BGDDT, providing for the standards for principals of schools of general education.

Accordingly, the standard for principals of general education schools will be based on five standard categories with 18 criteria, specifically:

(a) Professional qualities (Professional ethics, Innovative thinking in leadership, School governance, and Professional competence and personal skill development);

(b) School Administration (formulation of school development plan, administration of teaching activities, management of school human resource, etc.);

(c) Building an educational environment (Building school culture, Implementing democracy in schools; Building safe schools, preventing and controlling school violence);

(d) Development of the relationship between school, family and society (Coordinating the school, family and society to carry out teaching activities for students, moral and lifestyle education for students, etc);

(e) Use of foreign languages and information technology.

Criteria are evaluated at three levels: passed, good and excellent.

This Circular shall take effect on 4 September 2018, and replaces Circular No.14/2011/TT-BGDDT dated 8 April 2011 and Circular No.29/2009/TT-BGDDT dated 22 October 2009.

7. Amendment and cancellation of a number of regulations on conditions for investment and business in the construction sector

On 16 July 2018, the Government issued Decree No. 100/2018/ND-CP amending and cancelling certain regulations on necessary business investment conditions in fields under the management of the Ministry of Construction (“Decree 100”). Specifically:

Removal of certificate of fire safety design for building works

This is a remarkable feature in Decree 100, where the categories under certificates of construction design practices include:

(a) Architectural design;

(b) Design of civil-industrial work structures;

(d) Water supply and drainage design;

(e) Design and construction of traffic works; design and construction of agricultural works and rural development; design and construction of technical infrastructure works.

Therefore, the new Decree no longer provides for practice certificates in the fields of: heat supply – ventilation design; design of fire safety for works.

Practicing certificate to participate in construction activities is no long required

According to Decree 100, any individual without a practicing certificate is allowed to participate in the construction sector if appropriately to his/her training specialty, and in accordance with the Labour Code, and must neither do it independently nor hold any title that requires a practicing certificate. In addition, regulations on requirements for a construction practicing certificate in this Decree have been changed in comparison with Decree 59 as follows:

(a) Rank-II practicing certificate is issued to those of at least 4 years’ experience relevant to that practicing certificate (5 years as prescribed before);

(b) Rank-III practicing certificate is issued to those of at least 2 years’ experience relevant to that practicing certificate with respect to bachelor degree holders (3 years as prescribed before); at least 3 years’ experience with respect to holders of junior college diploma or intermediate diploma (5 years as prescribed before).

This Decree shall enter in force on 15 September 2018.

8. New Vietnam Standard Industrial Classification

On 6 July 2018, the Prime Minister of Government issued Decision No. 27/2018/QD-TTg, promulgating the Vietnam Standard Industrial Classification (SIC), which shall enter into force on 20 August 2018.

In this Decision, the SIC system is structured into the following 5 levels:

(a) Primary industry sector is divided into 21 industries hierarchically designated by alphabetical letters from A to U;

(b) Secondary industry sector is divided into 88 industries, each of which is assigned a two-digit code according to the corresponding primary industry sector;

(c) Tertiary industry sector is divided into 242 industries, each of which is assigned a three-digit code according to the corresponding secondary industry sector;

(d) Quaternary industry sector is divided into 486 industries (49 industries added), each of which is assigned a four-digit code according to the corresponding tertiary industry sector;

(e) Quaternary industry sector is divided into 734 industries (92 industries added), each of which is assigned a five-digit code according to the corresponding quaternary industry sector.

Thus, compared with the current regulations, the new Decision has increased the number of quaternary and Quaternary industry sectors by 49 and 92 industries, respectively.

Also, the SIC system delineates economic activities having factors arranged into specific sections as follows:

(a) Inclusive: Economic activities category as an industry sector;

(b) Exclusive: Economic activities not included in an industry sector, but in other industry sectors.

Decision No. 10/2007/QD-TTg dated 23 January 2007 shall become invalid from the effective date of this Decision.

9. Approved plan of simplification of conditions for banking business

On 9 July 2018, the Governor of the State Bank issued Decision No.1417/QD-NHNN, approving the plan of simplifying business conditions within the scope of management functions of the State Bank of Vietnam, which shall take effect on 9 July 2018.

Accordingly, the State Bank approved the plan to reduce and simplify the business conditions of a number of business activities in the banking industry, for example:

(a) Conditions for issuance of a license for establishment and operation of a joint stock commercial bank;

(b) Establishment of a domestic branch of a commercial bank;

(c) Conditions for issuance of a license for establishment and operation of a joint venture bank or bank with 100% foreign owned capital in Vietnam;

(d) Conditions for issuance of a license for establishment and operation of a foreign bank’ branch in Vietnam; etc.

10. The level of support for connecting production with consumption of agricultural products

On 5 July 2018, the Government issued Decree No. 98/2018/ND-CP on policies to encourage the development of cooperation and connection in production and consumption of agricultural products.

Accordingly, the State budget supports:

(a) Connection developer: 100% of consultancy costs for constructing the connection, the maximum support level does not exceed VND300 million.

(b) Connection project: 30% of capital for investment in machinery and equipment, construction of infrastructure works for the connection, the total support level does not exceed VND10 billion.

Apart from the support for investment in construction of infrastructure works for the connection, the connecting parties shall also be supported for:

(a) Development of agricultural promotion models;

(b) Support in terms of plant or animal breeds, supplies, containers/packages and labels for at most 3 crops or 3 production cycles or product exploitation through centralised services of coorperatives;

This Decree shall take effect on 20 August 2018 and cancel Decision No.62/2013/QD-TTg dated 25 October 2013 of the Prime Minister.

11. Social insurance employees prohibited from receiving gifts offered by people

This is a remarkable content in Decision No. 889/QD-BHXH dated 16 July 2018 of the Social Insurance of Vietnam, on the Code of conduct of public officials and servants, and employees working in the system of Vietnam Social Insurance.

Accordingly, in the course of work, public officials and servants, and employees at social insurance agencies (hereinafter collectively called “social insurance workers”) are not allowed to receive gifts from individuals or organizations, etc. in relation to the works they have settled or managed.

Additionally, in making contact and transaction with agencies, organizations and people, social workers must:

(a) Be eager, responsible, true and professional to work; avoid affecting the legitimate interests of agencies, organizations and people participating in or enjoying benefits of SI, HI and UI regimes;

(b) Not take advantage of their titles, responsibilities and positions to cause difficulties, troubles, harassment, negativity, by self-interest;

(c) Must not cause damage, loss, misrepresentation, misrepresentation, disclosure or information leakage of dossiers or documents assigned;

(d) Listen to and receive constructive opinions and complaints from agencies, organizations, enterprises and people; promptly detect, refuse to settle and report acts of abuse, welfare fraud, etc.

This Decision has taken effect from the date of signing.

12. Other sectors:

Finance

Decision No. 27/2018/QD-UBND dated 31 July 2018 of the People’s Committee of Ho Chi Minh City, on decentralization of the State management of public assets in administrative agencies, public service units, socio-political organizations, social – political – professional organizations, social organizations, socio-professional organizations, and other organizations established under the law on associations and funded by the State budget for their operations in Ho Chi Minh City.
Decision No. 2799/QD-BQP dated 13 July 2018 of the Ministry of National Defence, on the list of public assets procured domestically in a centralized manner by executing the framework agreements and by executive units signing framework agreements with the Ministry of National Defence.
Decision No. 1059/QD-BTC dated 2 July 2018 of the Minister of Finance, promulgating the Regulation on organization and operations of the National Data Centre and Price Services directly under the Price Management Department.
Resolution No. 01/2018/NQ-HDND dated 5 July 2018 of the People’s Council of Hanoi, on decentralization of management and use of public assets under the management of Hanoi city.
Circular No. 64/2018/TT-BTC dated 30 July 20118 of the Minister of Finance, amending Circular No. 09/2016/TT-BTC, providing for finalization of completed projects funded by the State budget.
Circular No. 63/2018/TT-BTC dated 30 July 20118 of the Minister of Finance, providing guidelines for Decree No. 70/2018/ND-CP, regulating the management and use of assets formed through the performance of scientific and technological tasks funded by the State budget.
Circular No. 59/2018/TT-BTC dated 16 July 2018 of the Minister of Finance, amending a number of articles of Circular No. 219/2015/TT-BTC, on investments of the State capital in enterprises, and management and use capital and assets in enterprises.
Circular No. 58/2018/TT-BTC dated 10 July 2018 of the Minister of Finance, providing guidelines for templates and forms for providing information and reporting with respect to programs and projects guaranteed by the Government.
Circular No. 57/2018/TT-BTC dated 5 July 2018 of the Minister of Finance, providing guidelines for implementation of Decree No. 29/2018/ND-CP, on the order of and procedures for establishing the entire people’ ownership over properties and dealing with properties that are established to be owned by the entire people.

Securities

Decision No. 586/QD-UBCK dated 6 July 2018 of the State Securities Commission, promulgating the Model regulation on ordinary auction sale for transfer of the State capital or capital of the State enterprises invested in joint-stock companies.
Decision No. 585/QD-UBCK dated 6 July 2018 of the State Securities Commission, on the Model regulation on public auction sale of shares.
Decision No. 584/QD-UBCK dated 6 July 2018 of the State Securities Commission, promulgating the Model regulation on auction sale of shares among strategic investors.
Decision No. 583/QD-UBCK dated 6 July 2018 of the State Securities Commission, promulgating the Model regulation on batch auction sale of shares for transfer of the State capital or capital of the State enterprises invested in joint stock companies.

Trade

Consolidated Document No. 15/VBHN-BCT dated 4 July 2018 of the Ministry of Industry and Trade, combining the Decrees providing guidelines for the Commercial Law on goods purchase and sale through the Goods Exchange.
Decision No. 3706/QD-UBND dated 23 July 20118 of the People’s Committee of Hanoi, on the establishment and issuance of the Regulation on the operations of the Economic Needs Examination Council with respect to establishment of the first retail outlet subject to examination of the economic needs applicable to foreign-invested enterprises in the area of Hanoi.
Decision No. 3672/QD-UBND dated 19 July 20118 of the People’s Committee of Hanoi, approving the network of vending machines located at public places in the area of Hanoi up to 2020.
Decision No. 3407/QD-UBND dated 4 July 20118 of the People’s Committee of Hanoi, publishing the list of new or cancelled administrative procedures in the field of Industry and trade under the jurisdiction of the Department of Industry and Trade of Hanoi.
Consolidated Document No. 19/VBHN-BCT dated 26 July 2018 by the Minister of Industry and Trade, combining the Circulars providing for the standard forms of minutes and decisions for use in inspection of and dealing with administrative violations by Market management forces.
Consolidated Document No. 18/VBHN-BCT dated 23 July 2018 of the Minister of Industry and Trade, combining the Circulars, providing for implementation of rules of origin in the Free Trade Agreement between Vietnam and the Eurasian Economic Union.
Circular No. 19/2018 / TT-BCT dated 19 July 2018 of the Minister of Industry and Trade, regulating formulation and promulgation of legal documents of the Ministry of Industry and Trade.
Circular No. 18/2018/TT-BCT dated 19 July 2018 of the Minister of Industry and Trade, providing for control of administrative procedures within the scope of management functions of the Ministry of Industry and Trade.

Health

Decision No. 4592/QD-BYT dated 23 July 2018 of the Minister of Health, publishing administrative procedures in Circular No.13/2018/TT-BYT, on quality of medicinal plants and traditional medicines.
Decision No. 4562/QD-BYT dated 19 July 2018 of the Ministry of Health, on professional document “Guidelines for Diagnosis and Treatment of Chronic Obstructive Pulmonary Disease”.
Decision No. 4434/QD-BYT dated 13 July 2018 correcting Circular No.15/2018/TT-BYT, harmonising prices of medical examination and treatment services among hospitals of the same class and providing guidelines for application of prices and payments of medical examination and treatment costs in several cases.
Decision No. 4442/QD-BYT dated 13 July 2018 of the Minister of Health, promulgating the list of technical services for medical examination and treatment, which are classified as equivalent in terms of techniques and costs in accordance with Circular No. 15/2018/TT-BYT.

Culture – Sports – Tourism

Decision No. 2594/QD-BVHTTDL dated 9 July 2018 of the Minister of Culture, Sports and Tourism, promulgating new, amended, supplemented or cancelled administrative procedures within the scope of management function of the Ministry of Culture, Sports and Tourism.
Decision No. 3409/QD-UBND dated 4 July 2018 of the People’s Committee of Hanoi, promulgating the list of administrative procedures in the field of tourism under the jurisdiction of the Department of Tourism of Hanoi.

Transport

Decision No. 1577/QD-BGTVT dated 20 July 2018 of the Minister of Transport, promulgating the list of legal documents on transport, which will expire during the first half of 2018.
Circular No. 41/2018/TT-BGTVT dated 30 July 2018 of the Minister of Transport, providing for the list of potentially unsafe products and goods under the State management of the Ministry of Transport.
Consolidated Document No. 01/VBHN-BGTVT dated 2 July 2018 of the Minister of Transport, combining Circulars detailing Vietnam’s aviation security and aviation security quality control program.

Construction – Real Estate

Consolidated Document No. 02/VBHN-BXD dated 20 July 2018 of the Ministry of Construction, combining the Decrees on management of construction investment projects.
Decision No. 2891/QD-UBND dated 11 July 2018 of the People’s Committee of Ho Chi Minh City, promulgating the set of new construction unit prices applicable to the construction survey, amended unit prices applicable to the construction and installation in the area of Ho Chi Minh City.
Decision No. 22/2018/QD-UBND dated 2 July 2018 of the People’s Committee of Ho Chi Minh City, on the price list for lease of the State-owned old houses in the area of Ho Chi Minh City.
Resolution No. 10/NQ-HDND dated 12 July 2018 of the People’s Council of Ho Chi Minh City, on residential housing development program in Ho Chi Minh City for 2016-2025 period.

Natural Resources – Environment

Decision No. 910/QD-TTg dated 25 July 2018 of the Prime Minister, approving planning for exploration, extraction, processing and use of Vietnam’s gold, copper, nickel and molybdenum ores up to 2025, with orientation towards 2035.
Decision No. 3664/QD-UBND dated 19 July 20118 of the People’s Committee of Hanoi, approving the Scheme on exploration and evaluation of mineral reserves and quality for river sand mines in the area of Hanoi.
Decision No. 3648/QD-UBND dated 18 July 2018 of the People’s Committee of Hanoi, promulgating the list of administrative procedures in the field of exploiting and using information and data on natural resources and environment under the jurisdiction of the Department of Natural Resources and Environment of Hanoi.
Decision No. 2971/QD-UBND dated 18 July 2018 of the People’s Committee of Ho Chi Minh City, promulgating standardized administrative procedures in the field of land within the scope of management functions of the Department of Natural Resources and Environment in Ho Chi Minh City.

Science – Technology

Decision No. 2784/QD-BQP dated 13 July 2018 of the Minister of National Defence, publishing new or cancelled administrative procedures in the sector of control of industrial explosive materials and explosive pre-cursors within the scope of management functions of the Ministry of National Defence.
Circular No. 09/2018/TT-BKHCN dated 1 July 2018 of the Minister of Science and Technology, amending Circular No. 09/2016/TT-BKHCN, regulating the order of and procedures for grant of permits for transportation of dangerous goods being oxidants, organic oxide compounds (of Category 5) and corrosive substances (of Category 8) by road, railway or inland waterway.

Information – Communications

Consolidated Document No. 03/VBHN-BQP dated 31 July 2018 of the Ministry of National Defence, combining the Decrees on business of civil cryptographic products and services as well as exports and imports of civil cryptographic products.
Decision No. 2092/QD-BKHCN dated 26 July 2018 of the Minister of Science and Technology, promulgating the National standard on Information technology.
Consolidated Document No. 23/VBHN-BTC dated 10 July 2018 of the Ministry of Finance, combining the Circulars providing for the collection rates and regime for collection, payment, management and use of service charge for maintaining the system for checking digital certificate status.

Administration – Judiciary

Decision No. 877/QD-TTg dated 18 July 2018 of the Prime Minister, on the list of public services at levels 3 and 4 to be implemented by ministries, branches and localities in the years 2018 and 2019.
Decision No. 3625/QD-BCA-C41 of the Ministry of Public Security dated 17 July 2018, publishing new, amended, supplemented or replaced, cancelled administrative procedures in the area of management of ammunition, explosives and supporting tools within the scope of management functions of the Ministry of

Public Security.

Decision No. 314/QD-VKSTC dated 5 July 2018 of the Director of the Supreme People’s Procuracy, promulgating the Regulations on co-ordination between the Supreme People’s Procuracy and its inferior in settlement of criminal cases where the Supreme People’s Procuracy exercises the right to prosecute and supervise investigation and prosecution, and assigns its inferior to exercise the right to prosecute and supervise a hearing of first instance.
Circular No. 11/2018/TT-BTP dated 30 July 2018 of the Minister of Justice, cancelling legal documents individually or jointly issued by the Minister of Justice in the field of State compensation.

Agriculture – Forestry – Fishery

Resolution No. 89/NQ-CP dated 6 July 2018 of the Government, on Vietnam’s accession to the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing of the Food and Agriculture Organization of the United Nations (FAO).
Decision No. 2767/QD-BNN-KTHT dated 12 July 20118 of the Minister of Agriculture and Rural Development, promulgating alternative, replaced or cancelled administrative procedures in the field of agriculture and rural development within the scope of management functions of the Ministry of Agriculture and Rural Development.
Consolidated Document No. 22/VBHN-BTC dated 10 July 20118 of the Ministry of Finance, combining the Circulars providing for the collection rates and regime for collection, payment, management and use of charges and fees in the field of cultivation and forest seedlings.
Consolidated Document No. 21/VBHN-BTC dated 10 July 20118 of the Ministry of Finance, combining the Circulars providing for the collection rates and regime for collection, submission, management and use of charges and fees in the field of management of aquaculture materials’ quality.
Circular No. 07/2018/TT-BNNPTNT dated 10 July 2018 of the Minister of Agriculture and Rural Development, on testing impurities in shrimp and shrimp products.

Miscellaneous

Resolution No. 100/NQ-CP dated 31 July 2018 of the Government, ratifying the agreement between Vietnam and Cambodia on avoiding double taxation and preventing evasion of income tax.
Decision No. 929/QD-BHXH dated 26 July 2018 of Vietnam Social Insurance, publishing amended or supplemented administrative procedures in the fields of collection of social insurance, health insurance, unemployment insurance, and occupational accidents and diseases insurance premiums; issuance of social insurance books and health insurance cards under the jurisdiction of the Vietnam

Social Insurance.

Decision No. 1962/QD-BNG dated 12 July 2018 of the Ministry of Foreign Affairs, publishing the list of legal documents which expire in full in the fields under State management of the Ministry of Foreign Affairs in 2017.
Decision No. 821/QD-TTg dated 6 July 2018 of the Prime Minister, approving the adjustment in and addition to the master plan for socio-economic development of Hai Phong city up to 2025, with orientation to 2030.
Circular No. 15/2018/TT-BGDDT dated 27 July 2018 of the Minister of Education and Training, providing for organization, operations and use of electronic mail and websites of educational institutions being colleges and universities, pedagogical junior colleges.
Circular No. 105/2018/TT-BQP dated 24 July 2018 of the Minister of National Defence, amending Circular No. 147/2016/TT-BQP, on management of holders of titles and positions at the State enterprises managed by the Ministry of National Defence and the representatives at the joint stock companies of which more than 50% of the charter capital is held by the State and represented by the Ministry of National Defence.
Circular No. 93/2018/TT-BQP dated 12 July 2018 of the he Minister of National Defence, cancelling in part the legal documents on military and national defence issued by the Minister of National Defence.