The Real Estate Business Law 2023 will come into force on August 1, 2024, introducing new provisions that facilitate stricter management and sustainable development of the real estate market.
Deposit Limits for Future Housing Developments
According to Clause 5, Article 23 of the Real Estate Business Law 2023, real estate project investors are only allowed to collect a deposit of no more than 5% of the selling or leasing price for housing and construction works that meet business conditions. The deposit agreement must clearly specify the sale or lease price of the housing, construction works, and the floor area within the construction project.
Currently, the Real Estate Business Law 2014 does not specify a deposit limit, allowing the parties to decide based on mutual agreement. Therefore, the new 5% deposit limit set by the Real Estate Business Law 2023 is a welcomed regulation expected to protect buyers’ legal right and interest and mitigate certain legal risks associated with advance deposits, such as delays in fulfilling obligations by the investor.
New Regulations on Payment Schedules for Future Housing Developments
A new provision in The Real Estate Business Law 2023, anticipated to protect buyers’ interests, is the change in payment schedules for leasing or purchasing future housing.
Specifically, according to Clause 2, Article 25 of the Real Estate Business Law 2023, the first installment paymen limit for leasing or purchasing housing, construction works, or floor area in future projects is 30%, including the deposit.
For subsequent payments, they must be suitable for the construction progress until the product is handed over and must ensure that the total amount paid in advance to the lessor or seller does not exceed 50% of the contract value for leasing or purchasing housing, construction works, or floor area in the construction project. The remaining amount will be considered rental payments to be made to the lessor or seller over a specified period according to the contract terms.
Compared to The Real Estate Business Law 2014, the advance payment requirement for purchasing or leasing future housing has been adjusted, reducing from 70% to 50% of the contract value.
This new regulation is expected to provide better conditions for lessees and buyers, reducing financial and legal risks related to deposits and transactions for future housing developments.
The Real Estate Business Law 2023 will be effective from August 1, 2024.
This newsletter aims to inform about newly issued legal regulations and is not intended for specific advice or application to individual cases.
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To meet the trend of transforming telecommunications infrastructure into digital infrastructure and to create a clear and equitable legal environment for businesses, the Telecommunications Law of 2023 has adjusted the conditions for issuing telecommunication operating licenses (in Article 38).
A license for installing telecommunications cables at sea is granted to Vietnamese or foreign organizations when they meet the following conditions: Commitment to comply with Vietnamese law; Commitment not to pollute the marine environment; Commitment to only conduct surveys, installation, maintenance, repair, and recovery of telecommunication cables; Having a cable installation project that aligns with the information and communication infrastructure planning, and regulations on national defense, security, environmental protection, and other relevant laws; Commitment to undergo inspection, supervision, and guidance by competent state authorities during the survey, installation, maintenance, repair, and recovery of cables in Vietnam’s sea areas and bear all costs for these activities.
A license to establish a private telecommunications network is granted to an organization when it meets the following conditions: Commitment to establish a private telecommunications network solely to provide services to the network’s members, not for profit; Having a technical and operational plan that complies with the information and communication infrastructure planning, and the regulations of the Telecommunications Law of 2023 on telecommunications resources, connectivity, telecommunications standards, and technical regulations; Having measures to ensure the safety of telecommunications infrastructure, network information security, and cybersecurity.
A license for testing telecommunications networks and services is granted to telecommunications enterprises when they meet the following conditions: The service proposed for testing is a telecommunications service not yet stipulated in the existing telecommunication license or a telecommunications service that uses telecommunications resources beyond the allocated scope; The scope and scale of testing are limited to evaluate technology and the market before official business operations; The testing plan complies with the regulations on connectivity, service pricing, telecommunications standards, and technical regulations.
A license to establish a telecommunications network under point d, clause 3, Article 33 of the Telecommunications Law of 2023 is granted to an organization when it meets the following conditions: Commitment to establish a telecommunications network solely to provide services not for profit; Having a technical plan that complies with the information and communication infrastructure planning, the regulations of the Telecommunications Law of 2023 on telecommunications resources, connectivity, telecommunications standards, technical regulations, service quality, ensuring the safety of telecommunications infrastructure, and protecting the legal rights and interests of telecommunications service users and other relevant laws.
This law takes effect from July 1, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
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Decree 52/2024/ND-CP has revised the definitions and regulations related to e-wallets and prepaid cards to meet practical demands and facilitate electronic transactions while enhancing the efficiency of state management in this sector.
According to Article 6 of Decree 52/2024/ND-CP, the regulations on e-wallets and prepaid cards are as follows:
E-wallets and prepaid cards are means of storing electronic money.
Banks and foreign bank branches are authorized to issue and provide e-wallets and prepaid cards. The issuance, provision, and usage of e-wallets and prepaid cards must comply with the regulations set by the State Bank of Vietnam.
Payment intermediary service providers offering e-wallet services must ensure that the total balance across all payment guarantee accounts for e-wallet services at banks or foreign bank branches is not less than the total balance of all e-wallets issued to customers; services are only allowed for e-wallets linked to the customer’s own payment accounts or debit cards.
Additionally, Clause 16 of Article 3 of Decree 52/2024/ND-CP defines that: E-wallet service is a service provided by banks, foreign bank branches, and payment intermediary service providers, enabling customers to load funds into e-wallets, withdraw funds from e-wallets, and perform payment transactions.
This law takes effect from July 1, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
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The Electronic Transactions Law of 2005 outlined prohibited conduct in electronic transactions. However, to keep pace with the current trend towards cashless payments, on June 22, 2023, the National Assembly issued the Electronic Transactions Law No. 20/2023/QH15, detailing the prohibited conduct as follows:
According to Article 6 of the Electronic Transactions Law 2023, eight acts are prohibited in electronic transactions, including:
Abusing electronic transactions to infringe upon national, ethnic, national security, public order, social safety, public interests, or the legitimate rights and interests of agencies, organizations, and individuals.
Illegally obstructing or preventing the creation, sending, receiving, or storing of data messages, or other acts aimed at sabotaging the information system serving electronic transactions.
Collecting, providing, using, disclosing, displaying, distributing, or trading data messages unlawfully.
Forging, falsifying, deleting, destroying, copying, or illegally moving part or all of a data message.
Creating data messages to perform illegal acts.
Fraudulently, falsifying, appropriating, or unlawfully using electronic transaction accounts, electronic certificates, electronic signature certificates, and electronic signatures.
Obstructing the choice to conduct electronic transactions.
Other acts prohibited by law.
This law takes effect from July 1, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
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Circular No. 23/2024/TT-BTC stipulates amendments and additions to certain provisions of the Circulars guiding the management and inspection of accounting service activities, detailing the cases in which accounting service practices may be suspended.
After more than three decades of development, Vietnam’s accounting and auditing service market has made positive strides. However, there are still instances where enterprises and accountants fail to fully comply with accounting standards and relevant legal regulations. Therefore, timely regulatory adjustments and corrections are necessary.
On April 12, 2024, the Ministry of Finance issued Circular No. 23/2024/TT-BTC (“Circular No. 23”) to amend and supplement certain provisions of the Circulars guiding the management and inspection of accounting service activities, including the following notable changes:
Cases Leading to Suspension of Accounting Service Practices from July 1, 2024
Professional accountants may have their accounting service practices suspended under the following circumstances as per legal regulations:
Firstly, engaging in activities involving: Professional misconduct or violation of accounting standards and ethical standards causing or potentially causing severe consequences; Non-compliance with regulations from competent authorities regarding the inspection and auditing related to accounting practices; Failure to fulfill responsibilities as stipulated in Article 67 of the 2015 Accounting Law.
Secondly, professional accountants not meeting the required number of annual knowledge update hours as stipulated by the Ministry of Finance.
Thirdly, professional accountants violating the following responsibilities: using an expired or invalid Certificate of Accounting Service Practice Registration in professional activities; failing to provide periodic or ad-hoc information related to their accounting service practices as required by the Ministry of Finance; non-compliance with regulations on the inspection and auditing of the registration of accounting service practices by the Ministry of Finance.
Other cases as stipulated by law.
Regulations on Inspecting Accounting Service Business Units
According to this Circular, revenue from accounting services includes income from the following services: accounting services, chief accountant services, financial statement preparation and presentation services, and accounting consulting services based on annual activity reports.
Regarding inspection activities, for accounting firms with an average annual revenue from accounting services of 20 billion VND or more over the past three consecutive years, direct inspections will be conducted once every three years. For other units, direct inspections will be conducted at least once every five years. The determination of inspection subjects is based on the average annual revenue from accounting services over the three years preceding the inspection.
Annually, based on the regular direct inspection schedule for accounting service business activities, the Ministry of Finance reviews, plans inspections, compiles a list of accounting service business units subject to direct inspection within the year, and notifies each subject at least 10 days before the start of the inspection.
Circular No. 23/2024/TT-BTC, amending and supplementing certain provisions of the Circulars guiding the management and inspection of accounting service activities, will take effect from July 1, 2024.
This bulletin is intended solely to provide information about newly enacted legal regulations and should not be used for advising or applying to specific cases.
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The 2023 Law on Consumer Protection defines specific responsibilities for businesses in their dealings with vulnerable consumer groups. This law builds on and enhances the provisions of the 2010 law, focusing on protecting these consumers and outlining the obligations of businesses toward them and consumers in general.
Vulnerable Consumer Groups
The law identifies seven groups of vulnerable consumers: Elderly people; Persons with disabilities; Children; Ethnic minorities; People living in ethnic minority and mountainous areas, islands, economically disadvantaged areas, and specially disadvantaged areas as defined by law; Pregnant women or women raising children under 36 months old; Individuals with serious illnesses and members of legally recognized poor households
Responsibilities of Businesses Toward Vulnerable Consumers
To protect these consumers, the law outlines specific responsibilities for businesses, including:
Handling complaints and disputes in a manner appropriate for each vulnerable group.
Compensating vulnerable consumers for damages caused by delays, refusal to prioritize, or refusal to accept and process their requests.
Prohibiting discrimination, stigmatization, or exploitation of their vulnerabilities to infringe upon their rights and interests.
Ensuring that businesses do not refuse to address the requests for protection from vulnerable consumers.
Prohibited Actions by Businesses
Article 10, Clause 1, of the law lists actions that businesses are prohibited from taking, such as:
Deceiving or misleading consumers through false, incomplete, or inaccurate information about products, services, business reputation, or capabilities.
Harassing consumers through unwanted direct or indirect contact to promote products, services, or contracts, or otherwise disrupting their normal activities.
Forcing consumers to purchase products or services against their will through coercion or threats.
Requiring consumers to pay for products or services without prior agreement.
Refusing to compensate, refund, or replace products or services when there are errors or discrepancies from what was advertised or agreed upon.
Substituting or tampering with products or services during delivery.
Failing to disclose sponsorships for influencers who promote products, thus encouraging consumer purchases.
Preventing consumers from inspecting products or services unless otherwise stipulated by law.
Forcing consumers to buy additional products or services as a condition for contract agreement against their will.
Including prohibited clauses as specified in Article 25 of the 2023 Law on Consumer Protection in contracts, templates, or general trading conditions.
Illegally collecting, storing, using, editing, updating, or destroying consumer information.
The 2023 Law on Consumer Protection takes effect on July 1, 2024.
This bulletin is intended solely to provide information about newly enacted legal regulations and should not be used for advising or applying to specific cases.
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According to the 2023 Price Law, retail electricity is no longer included in the list of price-stabilized goods and services but is now part of the list of goods and services priced by the state.
The 2023 Price Law introduces several fundamental changes aimed at encouraging price competition and decentralizing price management according to the market mechanism with state regulation. It includes the issuance of two lists of goods and services: the Price-Stabilized Goods and Services List and the State-Priced Goods and Services List.
Amendments and Additions to the Price-Stabilized Goods and Services List
Compared to the 2012 Price Law, the 2023 Price Law’s Price-Stabilized Goods and Services List adds two items: DAP fertilizer and animal, aquaculture feed. Conversely, table salt and retail electricity have been removed from this list. Thus, the list under the 2023 Price Law includes the following nine goods and services: refined petrol and oil; liquefied petroleum gas (LPG); milk for children under six years old; ordinary paddy and rice; urea, DAP, NPK fertilizers; animal feed, aquaculture feed; vaccines for livestock and poultry; plant protection drugs; and essential medicines used in medical examination and treatment facilities.
Decentralization of Pricing for the State-Priced Goods and Services List
Compared to the 2012 Price Law, Appendix 02 of the 2023 Price Law specifies the responsibilities of central and local specialized agencies in pricing goods. For goods and services using central funds or managed centrally, the specialized ministries are responsible for pricing. For those using local funds or managed locally, the provincial People’s Committees are responsible. Additionally, for certain services such as medical quarantine, preventive healthcare at public health facilities, clean water, and public irrigation services using state funds, pricing requires collaboration between specialized ministries and provincial People’s Committees.
Additions to the State-Priced Goods and Services List
The 2023 Price Law adds new items to the State-Priced Goods and Services List, such as natural gas transportation by pipeline for electricity production and technical inspection services for machinery, equipment, materials, and substances requiring strict safety regulations. Simultaneously, it removes domestically produced cigarettes and planning services from the list.
Adjusting Price Stabilization Measures
According to the 2023 Price Law, price stabilization measures include supply-demand regulation (including domestic production, export, and import regulation); inter-regional and inter-local commodity circulation through organized distribution; national and circulating reserve purchases and sales; financial and monetary measures in accordance with legal regulations; and setting specific prices, maximum prices, minimum prices, or price ranges appropriate for each type of goods and services.
To ensure flexibility and timeliness in response to practical situations, the 2023 Price Law stipulates that if necessary, the Price-Stabilized Goods and Services List and the State-Priced Goods and Services List can be adjusted based on proposals from ministries, sector management agencies, and provincial People’s Committees. The Ministry of Finance will present these proposals to the Government for submission to the Standing Committee of the National Assembly for review and decision. This regulation enhances the effectiveness of state price management, thereby contributing to promoting the production and business activities of organizations and individuals.
The 2023 Price Law takes effect on July 1, 2024.
This bulletin is intended solely to provide information about newly enacted legal regulations and should not be used for advising or applying to specific cases.
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From July 1, 2024, bad debts allowed to be traded and the plan to buy and sell bad debts at market prices will be changed according to Circular 03/2024/TT-NHNN
On May 16, 2024, the Governor of the State Bank of Vietnam issued Circular 03/2024/TT-NHNN amending Circular 19/2013/TT-NHNN regulating the purchase, sale and settlement of bad debts of Vietnam Asset Management Company (“VAMC”). Accordingly, some changes to pay attention to are as follows:
First, change the definition of “bad debt”. Accordingly, bad debts as of July 1, 2024 are 1) Bad debts of credit institutions and foreign bank branches, including bad debts that are being accounted for in the balance sheet in accordance with the regulations of the Governor of the State Bank on classification of assets, bad debts that have used risk provisions for handling but have not yet recovered debts and are monitoring outside the balance sheet and 2) Bad debts that VAMC has purchased from credit institutions and foreign bank branches but have not yet recovered.”
Secondly, the purchase of bad debts by VAMC from joint-venture credit institutions, credit institutions with 100% foreign capital, and foreign bank branches is only carried out according to market value.
Third, expand the ability to continue to extend credit to borrowers with bad debts. Accordingly, borrowers who have bad debts sold to VAMC and have effective production, business and investment projects will continue to be considered and granted credit by credit institutions and foreign bank branches according to agreements and provisions of law.
Fourth, VAMC will publicly post information on bad debts on the website for convenient transactions. Accordingly, VAMC will be obliged to post and post information on bad debts and collateral of the purchased bad debts on the Debt Exchange and the website of VAMC. The posting and posting of information must be in accordance with the provisions of the law on personal data protection.
Fifthly, supplementing the conditions of bad debts that VAMC is able to buy at market prices. Accordingly, in addition to the previous conditions, VAMC must also: 1) Determine the market value of the bad debt, including the collateral of that bad debt; 2) Assessment of economic efficiency, risks and ability to recover capital to purchase bad debts; 3) Analyze and assess the current situation and prospects of bad debts, borrowers, guarantors, debt repayment obligors and conditions for debt purchase agreements with credit institutions and foreign bank branches selling debts and 4) Anticipate feasible measures to handle debts, collateral of bad debts.
Sixth, for the collateral of the bad debt, the asset management company sells the collateral of the bad debt at a selling price that may be higher or lower than the principal balance of the bad debt.
This newsletter is only for the purpose of information about newly issued legal regulations, not used as advice or application to specific cases.
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New regulations on the implementation of investment projects using land and online selection of investors by bidding method from 26/07/2024
On June 12, 2024, the Ministry of Planning and Investment issued Circular 10/2024/TT-BKHDT. Accordingly, the Circular has amended and abolished a number of provisions in Circular 09/2021/TT-BKHDT on the implementation of investment projects using land and Circular No. 10/2022/TT-BKHDT on the selection of investors on the National Procurement Network System
For regulations on the implementation of investment projects using land:
For projects falling under the Prime Minister’s competence to approve investment guidelines, the provincial-level People’s Committees shall be the bidding agencies; The Department of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant agencies in, determining preliminary requirements on the capacity and experience of investors; For projects implemented in economic zones, the economic zone management boards shall determine and approve preliminary requirements on the capacity and experience of investors.
For projects under the competence to approve investment guidelines of provincial-level People’s Committees, the Department of Planning and Investment or the Economic Zone Management Board (for projects implemented in economic zones) shall be the bidding agency. The Department of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant agencies in, determining preliminary requirements on the capacity and experience of investors. For projects implemented in economic zones, the economic zone management boards shall determine and approve preliminary requirements on the capacity and experience of investors.
In case only one investor meets the preliminary requirements on capacity and experience, that investor shall submit a dossier of application for investor approval as prescribed in Clause 3, Article 29 of the Law on Investment and Point a, Clause 2, Article 30 of Decree No. 31/2021/ND-CP without having to determine the floor price for remittance to the state budget as prescribed in Clause 2 Article 4 of this Circular. Thus, if there is only one eligible investor, the procedures will be carried out according to the Law on Investment (not the Law on Bidding).
For online submission of bids:
From July 26, 2024, the online bid submission processes will be as follows:
