On December 31, 2018, the State Bank of Vietnam issued Circular No. 53/2018/TT-NHNN regulating the operation network of non-bank credit institutions. This Circular takes effect from March 1, 2019.
Accordingly, a non-bank credit institution with a period of operation of 12 months or more (from the date of operation opening to the time of proposal) is allowed to establish no more than 3 branches in a financial year when meeting apply the following conditions:
– The actual value of the charter capital as at 31 December of the preceding year is not lower than the legal capital;
– Interest-bearing business activities according to the consolidated financial statements and audited separate financial statements of the previous year preceding the year of the proposal. This condition does not apply to non-bank credit institutions submitting their application for the second year from the date of the opening;
– At the time of the proposal, the competent authority does not apply measures not to expand the area of operation;
– At the time of the proposal does not violate the regulations on the ratio of safety assurance in the operation of non-bank credit institutions;
– The ratio of bad debt to the total outstanding debt as of December 31 of the preceding year preceding the year of a proposal and at the time of the proposal does not exceed 4% or another rate decided by the Governor in each period. ;
– At the time of proposing the Board of Directors, Board of Members, and Supervisory Board to have the number and structure in accordance with the provisions of law, no vacancies of the title of General Director (Director);
– At the time of the proposal does not violate the regulations on the internal control system and internal audit; Asset classification and risk provision.
In addition, this Circular also provides for non-bank credit institutions with an operating time of fewer than 12 months (from the date of opening operation to the time of proposal), it is allowed to establish no more than 2 branches. when meeting the following conditions: The real value of the charter capital at the time of application is not lower than the legal capital; The ratio of bad debt to the total outstanding debt at the latest time of the proposal does not exceed 4% or another rate according to the Governor’s decision in each period; The provisions at Points c, d, e, g, h and i, Clause 1 of this Article.
Thus, through the issuance of Circular No. 53/2018/TT-NHNN, the State Bank of Vietnam has issued Circular No. 53/2018 / TT-NHNN which has detailed and specific regulations on the network. operation net of non-bank credit institutions, thereby creating the basis and conditions for the operation of these organizations to be implemented in the most convenient and accurate way.
On February 19, 2019, the Government issued Decree No. 19/2019/ND-CP stipulating on loan club. This Decree takes effect from April 5, 2019.
Accordingly, Decree No. 19/2019 / ND-CP has the following remarkable contents:
1. The organization of them must comply with the basic principles of civil law prescribed in Article 3 of the Civil Code; their organization is only done for the purpose of mutual assistance among those involved in their relations; they must not organize them to lend heavy interests, deceive assets, abuse the trust in appropriating property, illegally mobilizing capital or other law-breaking acts.
2. Conditions on members: A person who is aged full 18 or older and does not fall into the case of losing civil act capacity, limiting civil act capacity or having difficulties in perceiving and mastering acts according to stipulated in the Civil Code; People from full 15 years to under 18 years of age who have their own assets may be members of their families; in case of using private property, real estate and real estate must be registered to join the family line, they must be represented by a great person. agreed by law; Other conditions as agreed by the participants of their cords.
3. Conditions for ownership of a family: Being a person of full 18 years or older and not in the case of losing civil act capacity, limiting civil act capacity or having difficulties in perceiving and mastering acts according to stipulated in the Civil Code; in case the members organize their own lines, an owner is a person elected by more than half of the total members, unless otherwise agreed by the members; Other conditions as agreed by the participants of their cords.
The owner must make and keep the tontine unless there is an agreement that a member makes and keeps a register. In case their line has no owner, the members agree to assign a member to make and keep the family book.
The owner must notify in writing to the People’s Committee of the commune where he or she resides about the organization of the household line in one of the following cases: Organizing the wire they value the sections at a period of opening them from 100 million dongs or more; held from two lines or more.
4. Line agreement: Must be made in writing and can be notarized or authenticated if required by the participants. In case the wire agreement is amended or supplemented, the amended and supplemented documents must be made according to the above provisions.
5. Procedures for contributing them or receiving annuities: When contributing them, receiving annuities, receiving interests, paying interests or performing other related transactions, the members may request their owners or persons to make and keep their books to grant borderlines. got it.
6. Interest rate: The interest rate in the interest rate shall be agreed upon by the members of the wire or given by each member to be entitled to receive the annuity at each tontine opening but not exceed 20% / year of the total value of the parts they must deduct the value of the parts they contributed over the remaining time of their line. Where the aforementioned limited interest rate is regulated by the competent authority as stipulated in Clause 1, Article 468 of the Civil Code, the adjusted interest rate limit shall apply. In case the interest rate agreed or given by each member to receive them at each period to open them beyond the above limit interest rate, the excess interest rate is not effective.
It can be seen that the Decree No. 19/2019/ND-CP clearly stipulates the legal framework for the activities of families, families, villagers, and wards, thus contributing to eliminating the “black credit” in rural areas. protecting the legitimate rights and interests of participants.
On December 28, 2018, the Ministry of Planning and Investment issued Circular No. 09/2018/TT-BKHĐT guiding the implementation of Decree No. 63/2018 / ND-CP on investment in the form of public-private partnerships. issued by the Minister of Planning and Investment. This Circular takes effect from February 15, 2019.
Accordingly, the selection of project proposal documents in case of having two or more investors and submitting the project proposal documents are stipulated as follows:
When a project has an investor who submits the project proposal dossier, the ministry, branch, provincial People’s Committee receives the project proposal dossier of another investor when the project has the same objectives and location. score for implementation and in accordance with the planning within 10 working days from the date of receipt of the first investor’s application file.
The first criteria for selecting proposals of investors are as follows:
– Meet the conditions for deciding investment policies as prescribed by law;
– The necessity of investment;
– Technical feasibility, including the plan of using space;
– Socio-economic efficiency of the project;
– Financial feasibility of the project;
– Capacity and experience of investors to organize the preparation of pre-feasibility study reports for their feasibility study reports.
Based on the specific conditions and requirements of project implementation, the ministries, branches and provincial People’s Committees shall decide on the evaluation method to compare and select feasible project proposals. and the highest efficiency, which determines the importance between the factors: technical feasibility, socio-economic efficiency of the project, financial feasibility of the project, and capacity and experience of investors to organize pre-feasibility study reports, feasibility study reports proposed by themselves.
Thus, Circular No. 09/2018/TT-BKHĐT already has specific regulations on evaluation criteria for project approval of investors. As a basis for investors to have implementation directions and also a basis for state agencies to assess the suitability of the project.
On January 15, 2019, the Ministry of Industry and Trade issued the Circular No. 02/2019/TT-BCT regulating the development of wind power projects and the model electricity purchase and sale contracts for wind power projects. This Circular takes effect from February 28, 2019.
Accordingly, the Ministry of Industry and Trade has specified the planning of wind power projects to implement the development of wind projects and the conditions for the construction of wind power projects. As follows:
– Development of wind power projects shall be carried out in accordance with the electricity development planning, appraising, submitting to competent authorities for approval and supplementing the electricity development planning for projects not yet included in the planning;
– Operation schedule, the capacity scale of the project phases must comply with the electricity development planning and wind power development planning approved by competent authorities;
– The provincial People’s Committee must update the plan to connect the wind power project to the electricity system to ensure the transmission of the project capacity and the ability to absorb the electricity system in the project area;
– Wind power projects are only started and constructed when meeting the conditions under the law on construction investment management, environmental protection requirements and conditions such as Profile Construction designs are appraised and approved according to current regulations; Power purchase and sale contract signed with the electricity buyer; Having a financial supply contract and a commitment to capital resources to ensure the construction progress is in accordance with the approved schedule in the construction investment project.
It can be seen that the new regulation of the Ministry of Industry and Trade will promote the exploitation, development, and attraction of investors in the field of wind power, contributing to promoting the country’s economy.
On 28/12/2018, Ministry of Natural Resources & Environment promulgates Circular No. 35/2018/TT-BTNMT prescribe criteria for determining and promulgating a list of invasive alien species. This Circular takes effect from 11/02/2019.
Accordingly, from 11/02/2019, Joint Circular No. 27/2013/TTLT-BTNMT-BNNPTNT on 26/09/2013 if Minister of Ministry of Natural Resources and Environment and Minister of Ministry of Agriculture and Rural Development prescribe criteria for determining invasive alien species and issue a list of invasive alien species and issued a list of invasive alien species expired. Instead, the ministries, departments, agencies and people’s committees at all levels, relevant organizations and individuals will apply the criteria stated in Circular No. 35/2018/TT-BTNMT to identify alien species harm.
Different from the Joint Circular 27/2013/TTLT-BTNMT-BNNPTNT, Circular No. 35/2018/TT-BTNMT has added the criteria that need to be evaluated such as: invasive history of species in Vietnam and around the world, species’ resistance in front of weather changesAt the same time, Circular No. 35 also has a fundamental change in the evaluation criteria of invasive alien species. In addition, Circular No. 35 also updates the list of invasive alien species and invasive alien species in Annex 1 and Appendix 2 attached to this Circular.
It can be seen that with promulgation Circular No. 35/2018/TT-BTNMT, Ministry of Natural Resources and Environment has timely updated new criteria to timely evaluate and accurately determine the level of harm to the domestic ecosystem of alien species, since then, there are timely measures to prevent and prevent the invasion and protection of biodiversity in Vietnam.
On 26/12/2018, the government promulgates Decision No. 167/2018/NĐ-CP regulation on the restriction of underground water exploitation. This Decision takes effect from 10/02/2019.
Accordingly, the Government prescribes the plan to organize the restriction of underground water exploitation, which must be specifically formulated for each restricted area and region, including the following contents:
– List of existing mining facilities (licensed, no license) in each region;
– Measures to restrict specific exploitation for each project;
– Plan, the roadmap for implementing each measure to limit exploitation for each construction.
Restricted areas for underground water exploitation are classified into: Restricted area 1; Restricted area 2; Restricted area 3; Restricted area 4; Mixed restricted area.
Organizations and individuals that exploit underground water shall provide information, data related to the exploitation and exploitation activities of the project at the request of the Department of Natural Resources and Environment to serve the delineation of restricted areas; coordinate with the Department of Natural Resources and Environment in determining plans and roadmap to implement measures to limit underground water exploitation and implement measures to limit exploitation of underground water according to the approved plan.
It can be seen that the new regulation of the Government aims to limit the exploitation of underground water in freshwater areas in the territory of Vietnam, not to grant exploration and exploitation permits to build more underground water exploitation projects new to protect underground water resources in our country.
On 28/12/2018, the Ministry of Finance promulgated Circular No. 132/2018/TT-BTC guidance on accounting regime for micro-enterprises. This Circular takes effect from 15/02/2019, application for the financial year that begins or after 01/04/2019.
Accordingly, the subjects applying Circular No. 132/2018/TT-BTC are micro enterprises (are enterprises with no more than 10 employees paying social insurance; annual revenue or capital source of no more than VND 3 billion in the field of agriculture – forestry, fisheries, industry and construction; Having no more than 10 labors paying social insurance and total of revenue no more than 10 billion or total of capital no more than 03 billion dongs if in the field of trade and service), consist of microenterprises paying e corporate income tax by the method calculated on taxable income and method by percentage of sales of goods and services.
Accounting regime for micro enterprises has the following characteristics:
– About organizational structure: Microenterprises are arranged in charge of accounting without having to have a chief accountant;
– About accounting books: Microenterprises are able to build appropriate accounting book forms themselves. If it is impossible to build by itself, use the form and method of recording in this Circular;
– About accounting methods: Microenterprises without demand are not required to open accounting accounts but only write applications on accounting books to monitor revenues and incomes;
– About financial statements: Microenterprises are not required to prepare financial statements to submit to tax authorities. In addition to regulatory reports, micro-enterprises can make accounting reports for corporate governance and management.
It can be seen that, with new points mentioned above, Circular No. 132/2018/TT-BTC is expected to reduce the costs and burdens of personnel, compact in accounting books, solve problems when business households change to business type.
On 28/12/2019, State Audit promulgated Decision No. 03/2018/QĐ-KTNN Instructions on audit evidence. This Decision takes effect from 11/02/2019.
Accordingly, Decision No. 03/2018/QĐ-KTNN regulates the completeness of audit evidence consists of:
– Is the evaluation criteria for the number of audit evidence. The quantity of audit evidence to be collected is influenced by the State Auditor’s assessment of the risk of material errors and the quality of the audit evidence;
– The completeness of audit evidence does not set a specifical number, it depends on the expert judgment of State Audit, it means State Audit has to evaluate factors that directly affect to the completeness such as assessment of the risk of material errors and the quality of the audit evidence collected. The higher-level risk of material errors, the more evidence of audit need to be collected, the higher the quality of each audit evidence, may need less of audit evidence to be collected;
– The completeness of audit evidence ask state auditor has to collect needed evidence to ensure for enough bases for supporting state auditor to giving their evaluation, confirmation, conclusion and audit recommendations;
– Audit evidence has to get the completeness for a state auditor having experience but has not any information before about the audit may take the result of audit procedures that conducted, understand the bases of setting the evaluation, confirm, conclusion and audit recommendations.
It can be seen that the Decision No. 03/2018/QĐ-KTNN has specific guidelines on the adequacy of audit evidence, thereby contributing to the collection, proof, and synthesis of this evidence. will be implemented fully, accurately, openly and transparently.
On December 31, 2018, the State Bank of Vietnam issued Circular No. 50/2018/TT-NHNN regulating documents, procedures for approving the changes of commercial banks, Foreign bank branches are issued by the Governor of the State Bank of Vietnam. This Circular takes effect from February 15, 2019.
Accordingly, Circular No. 50/2018/TT-NHNN stipulates a number of changes related to the name, office of foreign banks and branches of foreign banks. Highlights are the regulations relating to the operation of the head office of commercial banks and foreign bank branches in the same province or city where the bank, bank branches are located, specifically:
1. Application file includes:
a) The written request for change of head office;
b) Resolution or decision of the General Meeting of Shareholders with respect to joint-stock commercial banks, resolutions or decisions of the Members’ Council for limited liability commercial banks with two or more members, Decision of the owner to a one member limited liability commercial bank through the change of the location of the head office; Documents of the parent bank through changing the location of the head office of a foreign bank branch in Vietnam;
c) Documents and documents proving that the commercial bank, foreign bank’s branch has the right to use or will have the legal right to use the office in the new location.
2. Procedures for approval:
a) Submit the application file to change the head office to the State Bank;
b) Within 25 working days from the date of receipt of a complete and valid file, the State Bank shall issue a written approval to request the transfer of the location of the head office of the commercial bank, location of the Foreign bank branch. In case of disapproval, the State Bank shall issue a written reply, clearly stating the reason.
The State Bank’s written approval is valid for 12 months from the date of signing.
It can be seen that the State Bank issued Circular No. 30/2018 / TT-NHNN is expected to create a clear legal basis for commercial banks and foreign bank branches in changing one The number of content related to business registration meets the requirements of economic development today.
