The Law on Credit Institutions (Credit Institutions) 2024 was approved by the National Assembly on January 18, 2024 and officially takes effect from July 1, 2024. The content of the Law has many positive new points, which are assessed to contribute to ensuring the healthy and stable development of financial activities of credit institutions.
Credit institutions play an important role in opening up and operating the economy. Therefore, regulations related to credit institutions are always focused, paid attention to and improved. The Law on Credit Institutions 2024, from July 1, 2024, will replace the effect of the Law on Credit Institutions 2010, amended and supplemented in 2017. Some notable new regulations are as follows:
Firstly, the Law on Credit Institutions in 2024 prohibits the sale of non-compulsory insurance for the provision of banking services in any form.
Secondly, the Law on Credit Institutions in 2024 expands the subjects that must provide, disclose and publicize information in order to control and avoid manipulation and cross-ownership. Clause 2, Article 49 of the Law stipulates that shareholders owning 01% or more of charter capital of a credit institution must provide the credit institution with the following information: a) Full name; personal identification number; nationality, passport number, date and place of issue of the foreign shareholder; number of enterprise registration certificates/equivalent legal documents of shareholders being organizations; date of issuance and place of issuance of this paper; b) Information about related persons as prescribed by law; c) The number and percentage of their share ownership in that credit institution; d) The number and percentage of shares owned by related persons in that credit institution.
Thirdly, the Law on Credit Institutions in 2024 reduces the maximum share ownership rate of shareholders in credit institutions. Specifically, a shareholder being an organization is not allowed to own shares in excess of 10% of the charter capital of a credit institution; Shareholders and related persons of such shareholders are not allowed to own shares exceeding 15% of the charter capital of a credit institution. Major shareholders of a credit institution and related persons of such shareholders are not allowed to own shares of 05% or more of the charter capital of another credit institution.
For shareholders who own shares in excess of the new regulations, from the effective date of the Law on Credit Institutions 2024, shareholders and related persons who own shares in excess of the prescribed share ownership ratio may continue to maintain their shares but not increase their shares until they comply with the regulations on share ownership regulations in accordance with the Law on Credit Institutions in 2024, except for the case of receiving dividends in shares.
Fourth, the Law on Credit Institutions in 2024 supplements regulations on credit approval and approval. Accordingly, credit institutions must have at least information about the purpose of lawful use of capital, financial capacity of customers before deciding to extend credit for credit grants of small value, including: a) Loans for living needs, credit extension via cards of commercial banks, etc foreign bank branches; b) Financial leases, consumer loans, credit extension via cards of non-bank credit institutions; c) Loans in service of the people’s credit fund’s living needs; d) Loans of microfinance institutions
Fifth, the Law on Credit Institutions in 2024 stipulates early intervention of weak credit institutions. Accordingly, the Law has added a chapter on early intervention of credit institutions.
Sixth, the Law on Credit Institutions in 2024 gradually reduces the credit limit. The prescribed credit level will gradually decrease year by year, starting from 2026. On the one hand, this regulation reduces the risk of cross-bank ownership, on the other hand, it affects the access to capital of enterprises. Therefore, from the time after the Law on Credit Institutions 2024 comes into effect to 2026 (the time when the gradual reduction of credit levels begins), enterprises need to have investment and business plans to gradually reduce the dependence on credit levels of credit institutions, ensuring the stability of their long-term production and business activities.
Seventh, the Law on Credit Institutions in 2024 supplements regulations on handling bad debts and collateral.
This newsletter is only for the purpose of information about newly issued legal regulations, not used as advice or application to specific cases.
Bizlawyer is pleased to accompany you!
According to Circular No. 43/2024/TT-BTC dated June 28, 2024 of the Ministry of Finance, from July 1st, 2024 to December 31, 2024, the collection of many fees and charges will be sharply reduced to continue to remove difficulties for businesses.
In order to remove difficulties and support production and business activities for businesses, the Ministry of Finance issued Circular No. 43/2024/TT-BTC regulating the collection rates of a number of fees and charges. As follows:
For fees for licensing the establishment and operation of banks, the collection rate until the end of December 2024 will only be equal to 50% of the fee collection rate prescribed under Circular No. 150/2016/TT-BTC of the Ministry of Finance.
Similarly, for the fee for issuing identification cards; licensing the establishment and operation of non-bank credit institutions; application fee for registration of intellectual property rights protection; Fees for issuance of industrial property representative practice certificates, publication and registration of industrial property representatives; The fee for evaluating the content of non-business documents to issue a publishing license is also reduced by 50%.
In addition, Circular No. 43 also reduces by 10-30% many other fees and charges such as: Fees for appraisal and issuance of certificates, licenses, and certificates in civil aviation activities; issue permits to enter and exit restricted areas at airports and aerodromes; Airport entry and exit fees for foreign flights to airports.
After December 31st, 2024, the collection rates for the above fees and charges will return to comply with the provisions of the original circulars, Circular No. 63/2023/TT-BTC and the amended Circulars, supplement or replacement (if any).
This newsletter is for informational purposes only about newly issued legal regulations, not for advice or application to specific cases.
Bizlawyer is pleased to accompany our readers!
To effectively implement Decision 90/QĐ-TTg on the National Target Program for Sustainable Poverty Reduction for the 2021-2025 period, the Ministry of Labor, Invalids, and Social Affairs issued Circular 03/2024/TT-BLĐTBXH on April 18, 2024, concerning support for workers going abroad.
According to Circular No. 03/2024/TT-BLĐTBXH, the support targets workers intending to work abroad who reside in poor districts, particularly difficult coastal and island communes. Priority is given to workers from poor households, near-poor households, and households that have recently escaped poverty.
The support includes training and skills development costs, food, living, and accommodation expenses during training, essential personal items, medical examination fees, passport, visa, and judicial record fees, introduction and counseling services, and costs for advanced foreign language training. All principles must ensure effectiveness, transparency, democracy, and gender equality. The support levels are applied according to different provisions of Article 69 of Circular No. 55/2023/TT-BTC, depending on the groups of beneficiaries.
The Department of Labor, Invalids, and Social Affairs will introduce and counsel workers from difficult areas to work abroad under contracts, according to Circular No. 55/2023/TT-BTC. Additionally, the Ministry of Labor, Invalids, and Social Affairs will conduct foreign language training through bidding, ordering, and task assignment.
This Circular takes effect from June 5, 2024.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
Bizlawyer is honored to accompany our esteemed readers!
Product and goods traceability is a solution that enables users to learn about the origin of the products they purchase, tracing the product from its presence on store shelves back to the original place of production, reviewing each stage of processing and distribution. The importance of product traceability is paramount in business operations, especially in the current climate where counterfeit, imitation, and substandard products are increasingly prevalent.
On March 28, 2024, the Ministry of Science and Technology issued Circular No. 02/2024/TT-BKHCN, which regulates the management of product and goods traceability. This circular includes provisions regarding the responsibilities of organizations and individuals in implementing traceability and providing traceability services and solutions.
Responsibilities of Organizations and Individuals in Implementing Product and Goods Traceability
According to Article 10 of Circular No. 02/2024/TT-BKHCN, organizations and individuals implementing product and goods traceability have the following responsibilities:
Compliance with the regulations on product and goods traceability as specified in Circular No. 02/2024/TT-BKHCN;
Declare the traceability system for products and goods in accordance with national standards, national technical regulations, international standards, and relevant regional standards.
Subject to inspections, checks, and supervision by competent state management agencies regarding the traceability of products and goods as prescribed by law.
In the event of connecting information to the National Product and Goods Traceability Portal, the data on product and goods traceability specified in Clause 5, Article 6 of Circular No. 02/2024/TT-BKHCN shall be promptly updated for each stage of production and business operations onto the National Product and Goods Traceability Portal. Organizations and individuals shall collaborate with the General Department of Standards, Metrology, and Quality to ensure the implementation and maintenance of data on the National Product and Goods Traceability Portal.
Responsibilities of Organizations and Individuals Providing Traceability Services and Solutions
According to Article 11 of Circular No. 02/2024/TT-BKHCN, the responsibilities of organizations and individuals providing traceability services and solutions are as follows:
Providing traceability services and solutions that comply with the requirements specified in Circular No. 02/2024/TT-BKHCN.
Bearing legal responsibility for the services and solutions provided to organizations and individuals involved in product and goods traceability. In case organizations or individuals providing traceability services and solutions wish to connect with the National Product and Goods Traceability Portal, they must collaborate with the General Department of Standards, Metrology, and Quality to implement and maintain the data on the National Product and Goods Traceability Portal.
Subject to inspections, checks, and supervision by competent state management agencies regarding product and goods traceability as stipulated by law.
This circular shall come into effect from June 1, 2024.
This bulletin is intended solely to inform about newly issued legal regulations and is not intended as advice or for application to specific cases.
Bizlawyer is pleased to accompany our esteemed readers!
According to Circular No. 11/2024/TT-BGTVT of the Ministry of Transport (MOT), vehicles falling under the provisions of Circular No. 16/2021/TT-BGTVT will be exempt from the first inspection. The price for preparing documents for exemption from inspection for the first time is 46,000 VND/vehicle.
On April 26, 2024, the Minister of Transport issued Circular No. 11/2024/TT-BGTVT regulating the price of vehicle documentation services for vehicles exempt from initial inspection and reprinting services for the Inspection Certificate and Inspection Stamp for motor vehicles.
According to Clause 3 of this Circular, a vehicle that is exempted from the first inspection is a vehicle that is exempted from the first inspection according to Circular No. 16/2021/TT-BGTVT, which meets the following conditions: Has been issued a factory quality inspection certificate for manufactured and assembled vehicles; Certificate of technical safety and environmental protection quality for imported motor vehicles or Notice of exemption from inspection of technical safety and environmental protection quality for imported motor vehicles and the year of manufacture to the year of application The application for an Inspection Certificate is less than 02 years old (year of production plus 01 year), with all valid documents according to the provisions of law.
Regarding vehicle documentation and inspection, vehicle owners need to present the following documents:
First, Vehicle registration documents; The original copy of the original receipt of the vehicle registration certificate that is mortgaged by the credit institution; A copy of the vehicle registration certificate certified by the financial leasing organization or the Appointment Letter for issuance of the Vehicle Registration Certificate
Second, Copy of factory quality inspection sheet for domestically produced and assembled motor vehicles (except for liquidated motor vehicles);
Third, the original Certificate of technical safety and environmental protection quality for renovated motor vehicles in the case of newly renovated motor vehicles;
Fourth, a copy of the chassis number and engine number of the vehicle for motor vehicles subject to exemption from inspection specified in Clause 3, Article 5 of Circular 16/2021/TT-BGTVT, amended in Circular 2/ 2023/TT-BGTVT;
Fifth, declare the corresponding information specified in Appendix I issued with Circular 16/2021/TT-BGTVT.
When bringing vehicle to the registration unit for inspection, the vehicle owner needs to present documents related to vehicle registration; Original certificate of quality, technical safety and environmental protection; Information about login name, access password and address of the electronic information page managing trip monitoring devices and cameras for vehicles subject to having to install trip monitoring devices and cameras and declaration about transportation business in the record tracking sheet according to the form in Appendix I issued with Circular 16/2021/TT-BGTVT.
Regarding costs, the price for preparing vehicle documents for vehicles exempted from initial inspection is 46,000 VND/vehicle; Service price for reprinting Inspection Certificate and Inspection Stamp for motor vehicles is: 23,000 VND/time/vehicle.
The service price specified in this clause includes the cost of organizing the collection of the fee for issuing the Certificate of technical safety and environmental protection inspection for vehicles but does not include value added tax as prescribed under the law.
This newsletter is for information purposes only on newly promulgated laws, and is not intended to advise or apply to specific cases.
Bizlawyer is pleased to accompany our readers!
From 08/06/2024, the method of calculating the value-added tax rate for cultivated, livestock, fishery and seafood products will be applied uniformly at the stages of import, processing and commercial business.
On April 23, the Minister of Finance issued Circular 25/2024/TT-BTC on the annulment of Circular 83/2014/TT-BTC guiding the implementation of Value Added Tax on the List of imported goods in Vietnam. Circular 25/2014/TT-BTC provides guidance on VAT rates for cultivated, livestock, aquatic and seafood products from unprocessed to other products or only through normal preliminary processing to fresh food, at the stage of commercial business.
Accordingly, enterprises and cooperatives that pay value-added tax according to the method of deduction for sale of cultivated, livestock, fishery and seafood products that have not been processed into other products or only through normal preliminary processing, fresh food for enterprises or cooperatives at the stage of commercial business are not required to declare, calculation of payment of Value Added Tax;
In case business households, individuals, enterprises, cooperatives and other economic organizations pay Value Added Tax according to the method of direct calculation on Value Added when selling unprocessed cultivated, livestock, aquatic products, cultivated or caught seafood products into other products or only through normal preliminary processing, fresh food at the stage of commercial business shall declare and pay VAT at the rate of 1% on turnover.
For the remaining, they are determined to be processed and subject to 10% VAT rate at the stage of import, production, processing or commercial business.
Currently, the law on Value Added Tax is applied uniformly at the stages of import, production, processing and commercial business. At the same time, the VAT policy has specific regulations on taxable objects, non-taxable objects, value-added tax rates for goods and services and conditions on dossiers and procedures for application of value-added tax policies. Therefore, Circular 83/2014/TT-BTC is no longer in line with current legal policies and will be annuled from June 8, 2024.
This newsletter is for information purposes only on newly promulgated laws, and is not intended to advise or apply to specific cases.
Bizlawyer is pleased to accompany our readers!
The principles for determining the electricity generation prices of power plants must be established based on the reasonable and legitimate costs of the investor, ensuring the overall economic viability of the project to maintain its stability and long-term development.
New Circular No. 07/2024/TT-BCT by the Ministry of Industry and Trade on Methods for Determining Electricity Generation Prices and Power Purchase Agreements.
The Ministry of Industry and Trade has recently issued Circular No. 07/2024/TT-BCT, which outlines the methods for determining electricity generation prices and the terms of power purchase agreements. This circular applies to power plants operating in Vietnam that are connected to the national grid, as well as other relevant organizations and individuals.
Principles for Determining Electricity Generation Prices: The determination of electricity generation prices for power plants must adhere to two main principles: Firstly, based on the reasonable and legitimate costs incurred by the investor over the entire economic life of the project and Secondly, the Internal Rate of Return (IRR) on financial investments must not exceed 12%.
Components of Electricity Generation Prices: The electricity generation price must ensure the following two components:
Power Purchase Agreement Price: This is the price agreed upon by the seller (the power generation unit owning the power plant) and the buyer (Vietnam Electricity or its designated representatives, such as the Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi Power Corporation, Ho Chi Minh City Power Corporation, major electricity consumers, and other wholesale electricity buyers as per the electricity market regulations). This price is constructed according to the method specified in Article 4 of this circular.
Specific Connection Price (if any): This is the price agreed upon by the seller and the buyer and is determined according to the method specified in Article 8 of this circular.
Excluded Costs: Costs not included in the electricity generation price are:
This circular takes effect from June 1, 2024.
This bulletin is intended solely to inform about newly issued legal regulations and is not intended as advice or for application to specific cases.
Bizlawyer is pleased to accompany our esteemed readers!
Circular No. 05/2024/TT-BGTVT amends and supplements regulations regarding certain cases of driver’s license revocation, notably including the revocation of a license if its owner allows another person to borrow it.
On March 31, the Minister of Transport issued Circular No. 05/2024/TT-BGTVT, amending the circular related to the field of road transport, road transport support services, vehicles, and drivers. Among the new regulations concerning the issuance, renewal, and revocation of driver’s licenses effective June 1, are of significant interest to many people.
According to Circular No. 05, learners of road motor vehicle driving need to prepare the following documents for their application:
For first-time learner drivers, the documents submitted directly at the training facility include: An application form for driving training and examination to obtain a driver’s license; A copy of the temporary residence card, permanent residence card, diplomatic identity card, or official identity card for foreigners; Health certificate for the driver issued by a competent medical facility as prescribed.
For drivers upgrading their license class, documents submitted directly at the training facility, with a direct photo taken for the driver’s license database, include: Application form for driving training and examination to obtain a driver’s license; A copy of the temporary residence card, permanent residence card, diplomatic identity card, or official identity card for foreigners; Health certificate for the driver issued by a competent medical facility as prescribed.; A copy of the junior high school diploma or higher degree for cases upgrading to classes D and E (the original must be presented during the examination of the application); A declaration of professional driving experience and safe driving kilometers according to the form specified in Appendix 8 issued with Circular 12/2017/TT-BGTVT.
For ethnic minority individuals who cannot read or write Vietnamese and are learning to drive a class A1 or A4 motorcycle, the documents submitted directly at the training facility include: Health certificate for the driver issued by a competent medical facility as prescribed.
Regarding driver’s license renewal procedures, the application for a license renewal issued by the transport sector will include: Application form for driver’s license renewal; Health certificate for the driver issued by a competent medical facility as prescribed (except for classes A1, A2, A3); A copy of the driver’s license and passport with a valid period (for foreigners and Vietnamese residing abroad).
Compared to the current regulations, the application for a driver’s license renewal from June 1 will change the application form and no longer require a copy of the ID card/ID or passport with an ID number (for Vietnamese citizens).
The procedure for applying for a driver’s license renewal is as follows:
The Department of Transport will check the application upon receipt; if the application does not meet the requirements, it must notify the individual of the necessary additions or corrections within 2 working days from the date of receipt;
The individual applying must complete the obligation to pay the driver’s license issuance fee as prescribed and pay for other service fees as needed;
Within 5 working days from the date of receipt of the complete and correct application, the Department of Transport will process the driver’s license renewal. If the license is not renewed, a response with the reason must be provided;
The driver’s license issuing authority will retain the original renewal application of the transport sector (except for online public service renewals); a copy of the renewal application or a foreign driver’s license, police-issued driver’s license, or military-issued driver’s license will be retained for 2 years from the date of issuance. The old driver’s license (except for foreign-issued licenses) will be corner-cut and returned to the driver for safekeeping (for full online renewal, the driver is responsible for sending the old license to the issuing authority for cancellation as prescribed);
If the driver wishes to downgrade their license, they must clearly state this in the renewal (reissue) application form.
Additionally, this Circular stipulates 6 cases where a driver’s license may be revoked, including the new addition of license revocation if the owner allows another person to use their license. The specific cases are as follows:
First, The driver engages in fraudulent activities to obtain a driver’s license.
Second, The driver alters or falsifies information on the driver’s license.
Third, Allowing another person to use one’s driver’s license.
Fourth, The competent authority issues a license to an ineligible person.
Fifth, Errors in personal information such as name, date of birth, nationality, residence, license class, issuance value, exam date, or signatory.
Sixth, The competent authority determines through a health examination that the driver has narcotics in their body.
This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.
Bizlawyer is honored to accompany our esteemed readers!
Circular No. 05/2024/TT-BGTVT amends and supplements regulations on a number of cases of driver’s license revocation, notably that the owner’s license will be revoked if it is left to someone else Borrow your driving license.
On March 31, the Minister of Transport (MOT) issued Circular No. 05/2024/TT-BGTVT amending the Circular related to the field of road transport and road transport support services, vehicle and driver. In particular, the new regulations on issuance, renewal and revocation of driving licenses from June 1 attract many people’s attention.
What documents do trainee drivers need to prepare?
According to Circular No. 05, trainee drivers need to prepare the following documents to include in their records:
For first-time driving learners, documents submitted directly to the training facility include: Application for study and testing to issue a driver’s license; Copy of temporary residence card, permanent residence card, diplomatic identity card or official identity card for foreigners and driver’s health certificate issued by a competent medical facility according to regulations.
For license upgrade driving learners, documents are submitted directly to the training facility and photos are taken directly and stored in the driver’s license database. Documents include: Application for study and testing to issue a driver’s license; Copy of temporary residence card, permanent residence card, diplomatic identity card or official identity card for foreigners; Driver’s health certificate issued by a competent medical facility according to regulations; Copy of junior high school diploma or equivalent degree or higher in case of upgrading driver’s license to classes D, E (present the original when checking test application documents) and Time declaration practice time and number of safe driving kilometers according to the form specified in Appendix 8 issued with Circular 12/2017/TT-BGTVT.
For minorities who cannot read or write Vietnamese and learn to drive class A1 or class A4 motorbikes, documents must be submitted directly at the training facility, including: Health certificate of the driver from the medical facility authority granted according to regulations.
New regulations on procedures for changing Driver’s Licenses
Regarding the procedure for changing driver’s license, the application for changing driver’s license issued by the Transport sector will include the following documents: Application to change driver’s license according to the form; Driver’s health certificate issued by a competent medical facility according to regulations (except for cases of grades A1, A2, A3); Copy of driver’s license and valid passport (for foreigners and Vietnamese residing abroad).
Compared to current regulations, the application form to change driver’s license from June 1 will change, and will no longer require a copy of ID card/CCCD or a valid passport with the ID card/CCCD number recorded. (towards Vietnamese).
The procedure for applying to change driving license is prescribed as follows:
Department of Transport checks documents upon receipt; In case the dossier is not in accordance with regulations, the content that needs to be supplemented or amended must be notified to the individual within 02 working days from the date of receipt of the dossier;
The individual submitting the application must complete the obligation to pay the license issuance fee according to regulations and pay fees for using other services according to the individual’s needs;
Within 05 working days from the date of receiving complete documents according to regulations, the Department of Transport will change the driving license. In case the license is not changed, department must reply and clearly state the reason;
The license-issuing agency stores the original copy of the license changing file issued by the Transport sector (except in the case of changing the license through the online public service system); Copy of application for exchange of driving license or foreign driver’s license, driving license issued by the Police, military driving license issued by the Ministry of National Defense within 02 years from the date of issuance of the driving license. Cut corners of old driving license (except driving license issued by foreign countries), give it to the driver to preserve (in case of changing the driving license online for the whole process, the driver is responsible for sending the old driving license to the license issuing agency for cancellation according to regulations);
In case the driver wants to change the driving license to a lower class, it must be clearly stated in the application to change (re-issue) the driving license according to the prescribed form.
Lending to others may result in your license being revoked
In addition, this Circular also stipulates 6 cases in which the driver’s license can be revoked, including the driver’s license owner letting someone else use his or her driver’s license. The cases are specified as follows:
First, the driver committed fraud to obtain a driver’s license;
Second, the driver erases, or falsifies information on the driver’s license;
Third, allow someone else using your driver’s license;
Fourth, competent authorities issue grants to ineligible people;
Fifth, there is an error in one of the information about full name, date of birth, nationality, place of residence, driver’s license class, issued value, admission date, and signer;
Sixth, through a medical examination, the competent authority determines that there are drugs in the driver’s body.
This bulletin is intended solely to inform about newly issued legal regulations and is not intended as advice or for application to specific cases.
Bizlawyer is pleased to accompany our esteemed readers!
