On 07, November 2018, The Government issued Decree No.151/2018 amending, supplementing a number of regulations on investment, business conditions under state management of The Ministry of Finance (MoF). This Decree takes effect from the issued date.
Accordingly, in insurance and securities fields, Decree No.151/2018/ND-CP has reduced and simplified 75 conditions of investment and business within the scope of state management of the Ministry Finance, specifically as follows:
1. In insurance business fields:
Decree No.151/2018/CP-ND has reduced 19 conditions and simplified 7 investment conditions creating favorable conditions for enterprises who operate in other fields contributing capital to establishing insurance enterprises.
The decree also abolishes a number of initial conditions that non-life foreign enterprises set up the branch in Vietnam must meet; abolish a number of conditions for agents selling universal life insurance, pension insurance, fishery insurance.
A number of other business conditions have been modified in a simple way to suit practical conditions, easy to implement and at the same time create the initiative and self-responsibility of individuals and organizations proposing the establishment of insurance enterprises. Simplification of conditions for the insurance joint-stock company is expected to be established only need a minimum of 2 shareholders.
2. Insecurities fields:
Decree No.151/2018/ND-CP stipulates the reduction of the minimum charter capital requirement for securities dealing activities from VND 100 billion to VND 50 billion; cutting down the standard for general directors (directors) of securities business organizations; cancellation the conditions for organizations contributing capital to establishing securities business organizations without having accumulated losses; Abolishing financial conditions for securities companies to carry out escrow transactions, including conditions not having accumulated losses equal to or greater than 50% of charter capital and conditions for the ratio of total debts to equity to not exceeding 3 times.
Thus, it can be seen that Decree No. 151/2018 / ND-CP contains provisions to relax the conditions of insurance and securities business for organizations, especially foreign organizations, thereby creating favorable conditions, saving time and fee for operating of these organizations.
On 09, November 2018, the Government issued Resolution No. 139/NQ-CP guiding the cost reduction action program for enterprises. This Resolution takes effect from the issued date.
Accordingly, Resolution No.139/NQ-CP has stipulated the program of cost reduction for enterprises, as follows:
Firstly, propose to adjust the ratio of social insurance payments between enterprises and employees.
In order to achieve the objective of cutting down and simplifying the social insurance regulations to reduce enterprise costs, the Government requested the Ministry of Labor, War Invalids and Social Affairs to propose amendments to the social insurance law by adjusting the percentage of contribution to the social insurance fund towards Harmonized benefits between businesses and workers.
Secondly, propose to adjust the Investment Law on business conditions.
To reduce costs related to the construction of production and business establishments, the Government requested the Ministry of Planning and Investment to coordinate with the concerned units to reduce and simplify business conditions (business registration), strictly control the process of issuing regulations related to business registration.
Thirdly, propose the adjust the procedures for issuance of construction permits and the granting of investment licenses; Fire prevention and fighting conditions with enterprises.
– The Ministry of Construction shall review, amend, supplement and reduce unnecessary regulations on planning procedures, planning permits and procedures applying for permission to build works serving production and business;
– The Ministry of Planning and Investment coordinate with the relevant Ministry having responsibility for reviewing and amending law provisions to unify the procedures for licensing investment projects involving the use of land, water surface and sea areas and construction works in the direction of unifying the procedures into a joint procedure so that investors do not have to go through many procedures, in many agencies;
– The Ministry of Public Security shall review the regulations on fire prevention and fighting in the direction of clarifying the regulations, minimizing the unnecessary requirements for works which can share fire prevention and fighting equipment; simplify the administrative formalities in the field of fire prevention and fighting for enterprises.
In summary, the issuance of Resolution No.139/NQ-CP shows the view and practical guidelines of the Government in reducing the unnecessary cost for enterprises. The main reason is the administrative formalities that are cumbersome, complex for businesses.
On May 20, 1818, the Ministry of Construction issued Circular No. 04/2018/TT-BXD promulgating national technical regulations on construction and installation of outdoor advertising means. This Circular takes effect as from November 1, 2018
Accordingly, outdoor advertising means must be constructed and installed in accordance with the local construction planning; They must have locations, designs, sizes, materials and quantities suitable to the approved advertising plannings and must be located outside the road safety corridors, railway safety corridors and safety corridors. To protect inland waterways, dike protection corridors and safety corridors of high-voltage power grids.
The location, location, construction area, installation and management of outdoor advertising means must comply with the requirements: To ensure the beauty of the city; Ensure traffic visibility, not affect traffic and do not obscure visibility traffic signs; To ensure the safety of fire prevention and fighting, the requirements of escape, the salvage requirements, the construction structure, social order and safety; Ensure normal production and living activities of people and safety of life.
Outdoor advertising media shall not be covered by roofs, roofs except for text media, images, and symbols.
The structure of outdoor advertising vehicles must be calculated and designed according to the most unfavorable factors affecting them in accordance with the natural data regulations in QCVN 02: 2009/BXD and the technical standards selected; Foundation, frame structure, surface of outdoor advertising means must be safe, sustainable, meet the requirements of use; It must be stable during construction and exploitation; Must be maintained, maintained and repaired in accordance with the provisions of the current law on construction.
For materials used for making outdoor advertising media, the technical requirements and life expectancy of each advertising means must be met; Ensure no natural deformation over time and adverse environmental effects; All exposed surfaces and edges of outdoor media must be of less corrosive material and should not be affected by the corrosive nature of any surrounding components.
The owners of outdoor advertising means shall have the responsibility to – Technical survey, report on the current status; To comply with the regulations on licensing and management of construction in accordance with the permit of the local construction authority; Carry out periodical inspection and maintenance according to regulations and ensure safety conditions for outdoor advertising means during the construction/installation as well as the existence of external advertising means. God.
Thus, through the issuance of the National Technical Regulation on construction and installation of outdoor advertising media, the Ministry of Construction has detailed and specific regulations on the construction and installation of vehicles Outdoor advertising, thereby contributing to create favorable conditions for individuals and organizations to save time and costs as well as comply with the provisions of law in this activity.
On 05/10/2018, the Government issued Circular No. 08/2018/TT-BXD regulating construction practice certificates, certificates of capability for construction activities and management of foreign contractors operating Construction in Vietnam. This Circular takes effect on November 20, 2018
Accordingly, the Circular No. 08/2018/TT-BXD has remarkable contents as follows:
The training profession of an individual shall be determined to be suitable when the specialized branch or training program content of such individual conforms with the domain of application for construction practice certificates.
Subject to each category and field of application for a certificate of construction activity capability, organizations must have individuals holding titles requiring the practice certificate; Individuals participating in the performance of professional jobs according to regulations. Each individual in the organization may undertake one or more of the positions required to have a practicing certificate, to take part in the performance of the job when the corresponding qualification is fulfilled.
Periodically, before December 10 every year, foreign contractors shall have to send reports thereon to the construction permit-granting agencies and the provincial/municipal Construction Services of the localities where exist the projects on the performance of contracts according to the set form of this Circular.
As such, it can be seen that Circular 08/2018/TT-BXD has more detailed regulations on the professional training of individuals when state agencies consider granting practice certificates. Only the capacity of construction activities, thereby improving the quality as well as strengthening the effectiveness of state management in this field
On October 24th, 2018, The State Bank issued Circular No. 25/2018/TT-NHNN to amend and supplement a number of articles of Circular No. 10/2015/TT-NHNN dated July 22nd, 2015 guiding the implementation of Decree No. 55/2015/ND-CP dated June 09th, 2015 of the Government on credit policies for agricultural and rural development.
Circular No. 25/2018/TT-NHNN stipulated that customers who were having difficulties in repaying the loans due to force majeure reasons shall be taken into consideration of the following:
– Restructure the payment period and keep the debt unchanged on the basis of the request from the client and the credit institution’s assessment of the repayment capability of the client.
– The restructuring time should be suitable for the business cycle of the customer, but the maximum time must not exceed the initial loan term under the signed credit contract.
– After the time limit for restructuring the payment period and keeping the debt unchanged, if the client cannot repay the debt on time and cannot restructure the payment period, keep the debt unchanged again, the credit institution must classify each debt of the client according to the current regulations of the State bank on classifying assets, level of deduction, method of setting up risk reserve and using the reservation to deal with such risks.
– Making new loans to restore the production for clients with feasible production projects and methods.
Overall, the new regulations in Circular 25/2018/TT-NHNN will help the clients in resolving the hardship when encountered with force majeure, making them unable to repay the debt in due time according to the contract and at the same time, contribute to the reduction of bad debts and irreclaimable debts for credit institutions.
On September 13th 2018, the Ministry of Finance issued Circular No. 85/2018/BTC on guiding to make estimation, management, usage and settlement of state budget in service of prevention and settlement of international investment dispute.
This Circular stipulated the principles for estimation, management, usage and settlement of budget as follow: The expenses from the performance of duties of legal representation for the Government will be granted in the annual operational expenditure of the Ministry of Justice.
The expenses from doing other tasks in service of the prevention and settlement of international investment dispute will be granted to the responsible agencies, which if it were a central body then the budget would be covered by the central budget. If it were a local body, then the local budget would cover it according to the regulation on budget decentralization.
Regarding the contents of expenditures, during the period when foreign investors file a complaint and request consultation or send a notice of intention to file a lawsuit, the expenses include: The expense for researching the law, international treaties; seeking legal advice from experts (national and international); preparing consultation and negotiation with foreign investors.
Regarding the period when foreign investor files a lawsuit to the international arbitrator or a competent foreign tribunal, the expenses include: The expense for making plans and strategies to participate in the dispute settlement; preparation of documents, related evidence; composing a reply to the arbitration notice in accordance to the arbitration rules in the event that a consulting lawyer for the Government cannot be hired or have yet to hire one.
Regarding the period when settling the international investment dispute at the international arbitrator or at a competent foreign tribunal, the expenses include: the expenses for the representative lawyer and to hire experts (national and international); expenses for the witnesses to participate; and expenses for the translation at the hearing…
Although it only stops at the principle level, Circular No. 85/2018/BTC with the coordination regulation of international dispute settlement has partly reflect the effort of the Vietnamese Government in restricting international investment disputes, building an attractive investment environment for foreign investors.
On 30/10/2018, the Ministry of Finance issued Circular No. 39/TT-BCT regulating on inspection and verification to the origin of Export-Import goods. This Circular takes effect on December 14,
Accordingly, Circular No. 39/2018/TT-BCT, stipulates two methods of verification of origin of goods, specifically:
1. To examine the dossiers and vouchers related to the certificate’s origin of goods.
The inspection of dossiers and vouchers related to the certificate’s origin of goods shall carry out in the following cases:
• The authorities of the imported country propose to check the origin of goods.
• Domestic agencies and organizations shall inspect and manage risks and prevent goods origin smuggling.
Other functional agencies in the country request coordination when there are suspected cause or detect signs of commodity origin fraud.
2. The inspection and verification of goods origins at the manufacturer.
The inspection and verification of goods origins are organized in these following situations.
– Competent authorities of the importing country make a request for the inspection and verification at the manufacturer if the result of the inspection of dossiers and certificates of goods origins according to article 8, 9, 10 of this circular is not sufficient or there is a reasonable suspicion about the fraud of goods origin.
– Competent authorities carry out the inspection, verification, risk management and anti-fraud of goods originating in the following cases:
+ Before the licensing of the certificate of origin, the self-certification of origin or the code of origin.
+ After documents certifying origins of goods are licensed or released.
– Others competent authorities in Vietnam have a reasonable suspicion about the fraud of goods origin and make a request for cooperation.
It is noticeable that the promulgation of circular No 39/TT-BCT plays a very important role in risk management and anti-fraud of goods origin. The provisions of this circular are expected to contribute to the interests of consumers, to limit the case of unfair competition, and enhance the State management of import and export activities at the same time.
On 06/11/2018, the Ministry of Industry and Commerce issued Circular No. 41/2018/TT-BCT specifying the list of discarded temporary discontinued business, re-export, transfer. This Circular shall be effective from December 20, 2018, to December 31, 2019.
Accordingly, the list of discarded temporary import, re-export and transshipment goods issued together with this Circular includes some commodity codes such as commodity code 2520 as gypsum; dry gypsum; Gypsum plaster whether or not colored, with or without small amounts of a catalyst or an inhibitor. In addition, there is also code 2618 is sand slag from the iron or steel industry; Item 2619 is slag, slag, slag and other waste from the manufacture of iron or steel.
In addition, other commodities are also listed as temporary discontinued, re-exported or transhipped items, including code 4707, which are recovered paper or paper; code 5003 is silk scrap; Code 5103 is waste sheepskin or fine or coarse animal hair, including yarn waste but excluding fur; Code 5104 is wool or fine or coarse animal hair; Code 5202 is cotton waste; Code 5505 is scrap.
In addition, code 6310 is used rags, pieces of rope, ropes, ropes, and cables, used or new, and waste of twine, cordage, rope, rope or cables, of textile materials; Code 7001 is glass and other waste and scrap glass; glass in blocks; 7204 is scrap and scrap of iron; cast iron scrap from iron or steel; Code 7404 is scrap and debris of copper.
For lots of discarded goods which have gone through customs procedures temporarily imported or transferred before the effective date of this Circular, they may continue to be re-exported or transferred from border-gates according to the provisions of Decree No. 69/2018/ND-CP. dated 15/5/2018 of the Government detailing some articles of the Law on foreign trade management and current regulations
As can be seen, Circular No. 41/2018/TT-BCT was issued to implement urgent measures to manage the import of discarded materials, enhance the management of imports and use of scrap materials imported as raw materials to make effective implementation of trade remedies, to strictly control the import of scraps remotely, minimize the risk of causing environmental pollution.
On 30/10/2018, the Ministry of Industry and Commerce issued Decision No. 4086/QD-BCT on the results of the mid-term review of the application of safeguard measures against billets of steel and imported long steel. This Decision takes effect from the date of its promulgation.
Accordingly, safeguard measures will be maintained for billets of steel and imported long steel with HS codes 7207.11.00; 7207.19.00; 7207.20.29; 7207.20.99; 7224.90.00; 7213.10.00; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; và 9811.00.00.
Regarding tariffs applied to long steel products, from March 22, 2018 to March 21, 1919, the rate of self-defense was 12.4%; From March 22, 2019, to March 21, 2020, the tax rate was 10.9%; From March 22, 2020, onward the tax rate to 0% if not extended.
For steel products, from March 22, 2018, to March 21, 1919, the rate of self-defense tax was 19.3%; from March 22, 2019, to March 21, 2020, the tax rate was 17.3%; From March 22, 2020, onward the tax rate to 0% if not extended.
In addition, Decision No. 4086/QD-BCT also provides for the exclusion of the application of formal safeguard measures, in addition to the documents required by the customs and specialized agencies, when imported. The organization or individual should provide the customs office with a certificate of origin in accordance with the current regulations, which specify the imported goods originating from the country/territory named in the list. The excluded books are enclosed.
It can be seen that the application of safeguard measures through direct investigations by the Investigation Agency for the production and import of long steel billets and steel products in Vietnam will contribute to ensuring This is in line with quantitative import quotas as well as strengthening market stability for these products in Vietnam.
