On May 15, 2018, the Judges’ Council of the Supreme People’s Court issued Resolution No.03/2018/NQ-HDTP guiding the application of a number of provisions of law on settlement of disputes on the handling of bad debts of collateral assets of bad debts in court. This Resolution took effect since July 01, 2018.
One of the prominent features of Resolution No.03/2018 / NQ-HDTP is the regulation on the authorization and re-authorization of individuals and legal persons in initiating lawsuits or taking part in legal proceedings in disputes over the handling of bad debts and security assets of bad debts. Specifically:
1. Individuals are entitled to authorize legal persons or other individuals to participate in legal proceedings at competent courts to settle disputes over the handling of bad debts and security assets of bad debts.
2. Legal persons have the right to authorize legal persons or other individuals to initiate lawsuits or participate in court proceedings at competent courts for settlement of disputes on the handling of bad debts or security assets of bad debts.
3. Individuals or legal persons authorized to re-authorize other legal persons or individuals to participate in legal proceedings if the authorizing party agrees in writing.
In resolving disputes on the handling of bad debts and security assets of bad debts, if the authorization contracts are established before January 1, 2017 between organizations, individuals which have not yet been or are being implemented with content and form in accordance with the provisions of the Civil Code in 2015 and at the time the court accepts the case, there is no dispute about the authorization contract, the court recognized the validity of the authorization contract without requiring the parties to re-establish.
With detailed and specific regulations, Resolution No.03/2018/NQ-HDTP has helped to reduce difficulties and obstacles in the practice of resolving disputes over the handling of bad debts and security assets of bad debts, thereby enabling credit institutions to shorten litigation procedures, save costs, ensure the handling of bad debts, and handle the security assets of bad debts effectively.
On July 13, 2018, State Securities Committee issued Document No.4350/UBCK-PTTT on accepting to adjust to increase the initial margin ratio of the future contract index VN 30 (is a price index of 30 companies listed on the Ho Chi Minh Stock Exchange with the highest market capitalization and liquidity, meeting the criteria of screening). This Document took effect since July 18, 2018.
Accordingly, the State Securities Committee accepted request of Securities Depository Center on adjusting the minimum initial margin ratio for goods of the future contract index VN 30 from 10% to 13%. With the new deposit rate announced, the Clearing Member will have to review and recalculate the collateral value on each investor account to request additional payment if necessary.
Before Document No.4350/UBCK-PTTT took effect, Securities Depository Center applied the minimum initial margin ratio for products of future contract index VN30 are 10%. Accordingly, before conducting a transaction, Clearing Members must submit to the Securities Depository at least 10% of the trading value for open positions in the Clearing Member’s name (including the transaction of the investor).
Therefore, compare with previous documents, it can be seen that, the State Securities Commission tends to tighten margin for futures contract products, however, according to according to the assessment, the current increase is not too high and there is no pressure to pay additional margin for investors.
On July 12, 2018, the Ministry of Information and Communication issued Decision No.1164/QD-BTTTT on the regulation of providing information to citizens. This Decision took effect from the date of its promulgation.
Accordingly, the Decision No.1164/QD-BTTTT contains the following new noteworthy points:
1. On the division of responsibilities
– The Minister is in charge of providing general information to citizens in the field of direct responsibility, the Deputy Ministers shall provide guidance for the provision of information to citizens in the assigned fields.
– The Office of the Ministry is the focal point for receiving information and information delivery requests, the Information Center is responsible for ensuring technical conditions and updating the information at Section on access to information on the Portal of Ministry of Information and Communications.
2. On information disclosure
– For information to be disclosed in accordance with regulations, the units responsible for information creation shall be responsible for reviewing and checking the confidentiality of information and for eliminating unauthorized citizen information, information citizens have access to conditions before publicity.
– The units under the Ministry are responsible for coordinating with the Ministry Office and the Information Center to publish the electronic version in the column on access to information on the Information Portal of the Ministry of Information and Communication. Where the information is published in other categories on the electronic portal, the list of public information must include the information access path.
3. Providing information as required
– The Ministry’s Office shall receive the request for information directly at the Ministry of Information and Communications. Where the information on the request form is not specific and clear, the Ministry’s Office shall guide the applicant to supply additional information according to regulations.
– The Ministry’s Office shall update the request for supply of information in the monitoring book to supply information on request and make a receipt card for information supply, clearly stating the time limit for settling the request for supply of information is 10 working days.
Through detailed and specific regulations on the provision of information to citizens, Decision No.1164/QD-BTTTT was assessed to ensure the right of people to have access to information and at the same time contribute to strengthening the control and management of competent state agencies in the provision of information to citizens.
On July 17, 2018 General Department of Customs issued Document No.4202/TCHQ-PC to guide on management of imported scraps from aboard into Vietnam.
Accordingly, Document No.4202/TCHQ-PC guiding the disposal of commodities that are used scraps, used goods is characterized as follows:
1. The Customs Department reviews and informs enterprises / shipping companies/ shipping agent to work together to identify the owner, classification by type, quantity, volume, composition, nature, time and place of storage.
2. Collecting, analyzing information, investigating, verifying, actively checking the absence of customs declarers with the goods have signs of violation and show signs of taking advantage of the import scraps materials in order to commit acts of smuggling or illegally transporting goods across borders.
3. Base on the result of above activities, the backlog of goods is handled as follows:
a) Goods are waste, hazardous waste
– In cases that are identified as material evidences of criminal cases, they shall be handled according to the provisions of the criminal procedure legislation:
– In cases that determined not to be material evidences of criminal cases, they shall be administratively sanctioned according to regulations and must be taken out of the Vietnamese territory.
b) Goods are scrap material:
– Goods consignees are enterprises that have Certificate of eligibility for environmental protection in importing scrap materials for production materials: To urge the consignees to carry out the customs procedures according to regulations;
– Goods consignees are enterprises that do not have Certificate of eligibility for environmental protection in importing scraps materials for production materials: Request the shipping company/shipping agent to inform the consignee of the ineligibility to carry out the import procedures and take them out of the Vietnamese territory.
– In cases there are no national technical standards on environment; Request the shipping company/shipping agent to inform the consignee that the customs office has no basis to consider the customs clearance and must remove from the territory of Vietnam.
4. Disposal of goods which are backlog scrap material as follows:
– With commodities that are backlog scrap material at the port but not yet and being handle, the process shall be conduct in accordance with steps 1, 2 and 3 as above.
– With commodities that are backlog scrap material at the port which completed the handling, they shall be reported to the General Department of Customs (via the Customs Supervision and Management Department) contents, results of processing each specific shipment.
The guidance in Document No.4202/TCHQ-PC is considered to be effective and timely guidance of the General Department of Customs in the current context, when importing and trading scrap materials have a tendency to increase sharply and complicatedly, there are many risks of polluting the environment and causing public annoyance.
On July 06, 2108, the Prime Minister issued Decision No.27/2018/QD-TTg on the system of economic sectors in Vietnam. This decision takes effect from August 20, 2018.
Accordingly, the Decision No.27/2018/QD-TTg has added many new industries in the system of economic sectors of Vietnam, specifically listed in the list of economic sectors of Vietnam including 5 levels as follows:
1. The sector level 1 include 21 sectors which are encoded in alphabetical order from A to U;
2. The sector level 2 consist of 88 sectors; each sector is encoded in two numbers according to corresponding sector level 1;
3. The sector level 3 consist of 242 sectors; each sector is encoded in three numbers according to corresponding sector level 2.
4. The sector level 4 consist of 486 sectors (increase 49 sectors); each sector is encoded in four numbers according to corresponding sector level 3;
5. The sector level 5 consist of 734 sectors (increase 92 sectors); each sector is encoded in five numbers according to corresponding sector level 4.
Decision No.27/2018/QD-TTg will replace Decision No.10/2007/QD-TT when it takes effect. The increase in the number of sectors and details of sectors in the economic sector of Vietnam to meet the trend of diversification of business lines in practice, it contributes to solving the situation of no suitable professions in the Vietnamese economic branch system when registering business lines of enterprises.
On July 13, 2018, the Prime Minister issued Directive No.20/CT-TTg on restructure inspection and examination activities for enterprises in order to improve the business environment, enhance national competitiveness. This Directive took effect from the date of its promulgation.
Accordingly, the Prime Minister has issued a directive on the plan to reduce and simplify business conditions as follows:
1. Ministers and heads of ministerial-level agencies shall thoroughly grasp the reform of specialized inspection activities and reduce the business conditions as one of important solutions to accelerate the growth and release of social resources;
2. Prior to August 15, 2018, Ministries and branches must complete promulgation according to their competence and submit to competent authorities documents to implement the plan on reform of specialized inspection activities, the reduction and simplification of business conditions;
3. Ministries and ministerial-level agencies in the course of formulating projects, draft legal documents shall prescribe the administrative procedures, business conditions and the list of inspected goods and/or products have to ensure clearly, do not create barriers to enter the market, do not generate costs for businesses
It can be seen that Directive No.20/CT-TTg has shown the determination of the State in seriously grasping the implementation of the reduction and simplification of business conditions in order to create favorable conditions for business, create competitive advantage for the country.
On July 09, 2018 the State Bank of Vietnam released Decision No.417/QĐ-NHNN to approve the plan on simplification of business conditions under the management capacity of the State Bank of Vietnam. The Decision take effected from issuance date.
Accordingly, Decision No.1417/QĐ-NHNN assigns specific tasks to units implementing the simplification of business conditions as follows:
1. The focal units shall have to take responsible for accepting the contents of the approved plan when drafting the Decree, Circular of the State Bank of Vietnam in the process of amending, supplementing or replacing them (planned to submit to the Government or submit to the Governor for issuance in the third quarter of 2018).
2. For simplification of business conditions plan related to credit institutions’ ranking results, the Banking Inspection and Supervision Agency shall have to adopt the approved plan in the draft legal documents concerned after the Circular on Credit Institutions and Branches of the Foreign Bank in addition to being issued.
3. For simplification of business conditions plan that is not in the above cases, assigning to the Legal Department to act as the principal body in elaborating 01 Decree and 01 Circular in the form of a document amending many documents to implement the plan on simplification of business conditions. The term of submit to the Government to release Decrees and the term to release Circulars of the State Bank which is directed by the Government and the Prime Minister.
4. During development of Decrees, Circulars to implement the simplification of business conditions, units continue to proactively review to propose additions and adjustments to the simplified contents in line with the management requirements and the actual law-making work at the time of elaboration of documents.
Therefore, it can be seen that Decision No.1417/QĐ-NHNN is expected to help establishment and activities process of banks become simpler when minimizing the current complex business conditions.
On June 30, 2018, the Government issued Decree No.94/2018/ND-CP regulating on public debt management. This Decree took effect since July 1, 2018.
Accordingly, Decree No.94/2018/ND-CP specifies a number of specific contents as follows:
1. The public debt security index is formulated on the basis of the orientation on the five-year socio-economic development plan; the implementation of public debt safety targets over the last 5 years; growth rate and internal saving rate of the economy; the State budget revenue and expenditure balance. When the public debt safety index meets the public debt safety warning threshold, the Ministry of Finance shall submit to the Government or the National Assembly Standing Committee for measures to ensure that public debt safety targets do not exceed the public debt ceiling.
2. Risks for public debt include the risk of interest rates, foreign exchange rates due to fluctuations in the financial market; liquidity risk due to the lack of liquid financial assets to fully and timely fulfill the debt obligations as committed, including repayment capacity of the central budget and local budgets; risks due to fluctuations in the financial market affect the mobilization of capital leading to high debt repurchase or loss of debt; credit risk is due to re-borrowers, guaranteed subjects can not pay debts in full and on time; other types of risk can affect public debt safety.
The risk assessment is carried out periodically in association with the five-year loan and repayment plan, the three-year public debt management program and the annual plan for borrowing and repaying the public debt. Based on the risk assessment, the Ministry of Finance shall propose solutions to prevent risks to public debts; provincial People’s Committees propose solutions to prevent risks to local government debt.
Basing on the risk assessment and the level of risk effect for each debt or list of debts, the Ministry of Finance shall elaborate the debt restructuring plan and submit it to the Prime Minister for decision and organize the implementation thereof. The Provincial-level People’s Committees shall report to the People’s Councils of the same level for decision the debt restructuring plans of local administrations and implement.
Through detailed and specific regulations on public debt management, Decree No.94/2018/ND-CP is expected to enhance the sense of responsibility, professional skills, as well as improve the effectiveness of state management of competent agencies and individuals.
On 07/05/2018, the Ministry of Finance issued Circular No. 45/2018 / TT-BTC guiding the regime of management, depreciation and depreciation of fixed assets at agencies, organizations, units and units. The fixed assets allocated by the State to the enterprise for management shall not include the State capital in the enterprise. This Circular takes effect on July 2
Accordingly Circular 45/2018 / TT-BTC regulates in detail the scope of fixed assets for depreciation and amortization. Specifically, fixed assets at public non-business units must be deducted, including:
As such, it can be seen that the Circular No. 45/2018 / TT-BTC stipulated in detail the list of assets as well as the useful life and wear rate of tangible fixed assets used in enterprises, This contributes to the efficient management and use of these assets, avoiding unnecessary losses in enterprises.
