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Vietlaw Weekly Newsletter No. 380

fa-folder-open Advertising - Publishing

National technical regulation on construction and installation of outdoor advertising facilities

fa-check-circle Circular No. 04/2018/TT-BXD dated May 20th, 2018 of the Ministry of Construction on National technical regulation on construction and installation of outdoor advertising facilities

This Circular is to promulgate the National Technical Regulation on construction and installation of outdoor advertising works, QCVN 17:2018/BXD.

This Regulation specifies the compulsory requirements for design, construction and installation of any outdoor advertising facility that is a separate work or attached to an existing work, including advertising boards, light boxes; outdoor advertising screens; signboard; advertising facilities in the form of letters, shapes of symbols.

According to point 2.2.1.7 of this Regulation, with regard to low-rise building (having less than stories), 01 horizontal board and 01 vertical board may be placed next to the signboard on each story. Under the earlier Regulation, it is only allowed to place only 01 advertising board.

However, it is required to ensure these requirements: For horizontal advertising board, its maximum protrusion is 0.2 m, maximum height is 2 m and width must not exceed the width of the building; For vertical advertising board, its maximum width is 1 m and the maximum height is 4 m.

In case advertising boards are placed on the side of a building, the advertising board or light box attached to a building having up to 4 stories must not protrude from the roof more than 1.5 m.

Advertising boards and light boxes attached to surrounding walls or fences of a building must also comply with the above - mentioned requirements (point 2.2.1.8).

With regard outdoor advertising screens, they must not have sounds and the minimum distance from the road surface to the lower edge of a stand-alone screen is 5 m (point 2.2.2.2).

If the signboard is hung horizontally above the gate or entrance, the distance from the lower edge of the board and the ground must be at least 4.25 m.

This Circular takes effect from November 1st, 2018 and replaces the National Technical Regulation on construction and installation of outdoor advertising works issued together with Circular No. 19/2013/TT-BXDfa-minus-circle .

File attachment:

English file-pdf TT04_20052018BXD[EN].pdf (English translation)

Vietnamese file-word TT04_20052018BXD.doc (Vietnamese)

fa-folder-open Foreign Investment

Issues relating to contribution of land use rights as capital in FDI enterprises

fa-check-circle Official letter No. 5456/BTNMT-TCQLDD dated October 5th, 2018 of the Ministry of Natural Resources and Environment regarding performance of rights of foreign direct investment enterprise (FDI enterprises)

This Official letter is to reply to issues relating the right to transfer land derived from contribution of land use rights as capital in case a foreign investor buys the whole domestic capital contributions to become an FDI enterprise.

According to opinions of the Ministry of Natural Resources and Environment, if land value has been capitalized before a domestic enterprise becomes an FDI enterprise and the land is allocated by the State with the collection of land use levy, leased with full one-off rental payment for the entire lease period, the company is allowed to transfer both land use rights and land-attached assets under its ownership (Article 183 of the Land Law).

Hoverer, if the land is leased by the State with annual rental payment, the company may only transfer its assets attached to the leased land rather than being allowable to transfer the land (Article 189 of the Land Law).

If the land value has not been capitalized before a domestic enterprise becomes an FDI enterprise, it is only allowable to perform rights and obligations of a land user under the capital contribution contract already concluded upon the establishment of the company.

File attachment:

English file-pdf CV5456_05102018BTNMT[VLO].pdf (English translation)

Vietnamese file-pdf CV5456_05102018BTNMT.pdf (Vietnamese)

Vietnamese file-word CV5456_05102018BTNMT.doc (Vietnamese)

fa-folder-open Health Insurance

Regulations on health insurance regime from December 1st, 2018

fa-check-circle-o Decree No. 146/2018/ND-CP dated October 17th, 2018 of the Government on elaborating and providing guidance on measures to implement certain articles of the Law on Health Insurance

Similar to the earlier regulations, enterprises shall appropriate an amount of money to pay health insurance premiums for all employees who sign labor contracts for at least 3 months and managers of enterprises with pay.

However, Clause 5 Article 2 of this Decree specifies that during employees taking parental leaves with childbirth and adoption benefits, their contributions to health insurance shall be paid by social insurance agencies, enterprises shall be exempt from appropriating money to contribute to health insurance.

Regarding health insurance contribution rate, it is still 4.5% of the employee’s monthly pay. In addition, this Decree specifies that when an employee enters into multiple employment contracts, he/she shall be bound to pay the health insurance contribution rate determined on the basis of the employment contract under which the highest pay is agreed upon.

Regarding the payment of health insurance benefits, according to Clause 3 Article 14 of this Decree, in case where a health insurance card holder visits an inappropriate-level healthcare establishment at his/her discretion, and then is referred to another healthcare establishment by the receiving healthcare establishment, he/she shall be paid the health insurance fund’s coverage at the coverage rate specified in clause 3 of Article 22 in the Law on Health Insurance.

This Decree takes effect from December 1st, 2018.

This replaces Decree No. 105/2014/ND-CPfa-minus-circle dated 15th, 2014; Joint Circular No. 41/2014/TTLT-BYT-BTCfa-minus-circle dated November 24th, 2014; Joint Circular No. 16/2015/TTLT-BYT-BTCfa-minus-circle dated July 2nd, 2015; Article 8 and Clause 2 Article 9 of Decree No. 151/2016/ND-CP dated November 11th, 2016; Clause 6 Article 11, point c Clause 1 and Clause 2 Article 12 Circular No. 40/2015/TT-BYTfa-exclamation-circle dated November 16th, 2015.

File attachment:

English file-pdf ND146_17102018CP[ENGLISH].pdf (English translation)

Vietnamese file-pdf ND146_17102018CP.pdf (Vietnamese)

Vietnamese file-word ND146_17102018CP.doc (Vietnamese)

fa-folder-open Labour - Employment

Regarding issuance of letters of confirmation of eligibility to receive social insurance benefits from January 1st, 2019

fa-check-circle Dispatch No. 1953/BHXH-CD dated October 3rd, 2018 Ho Chi Minh City Social Security on issuance of letters of confirmation of eligibility to receive social insurance benefits.

Relating to letters of confirmation of eligibility to receive social insurance benefits (referred to as the confirmation letter), the document notes that the blank confirmation letters granted according to the old form before the day on which Circular No. 56/2017/TT-BYT is promulgated are still valid until the end of December 31, 2018.

From January 1st, 2019, the confirmation letters shall be granted according to the new form provided in Appendix 7 issued together with Circular No. 56/2017/TT-BYT and must meet these requirements:

- Clearly provide all information required in the confirmation letter in Vietnamese using one single color ink, do not erase any information in the confirmation letter (same information for 2 copies);

- Timely grant the confirmation letter to the employee coming to the medical facility for health examination (or accompany with his/her children) or after the inpatient treatment end and such employee is discharged from the hospital;

- The issuance date must be the day on which the employee taking medical examination, and the confirmation letter must not be issued retroactively or in advance. The confirmation letter must not be granted to the employee not receiving medical examination and treatment (fraudulent confirmation letter);

- Only one confirmation may be issued each doctor visit. In cases the patient needs to rest for more than 30 days or beyond the leave period specified in the granted confirmation letter, the patient must undergo a follow-up examination;

- The confirmation letter must bear signature and full name of the physician who works at the medical facility and is authorized to sign the confirmation letter by the head of such medical facility;

- When issuing a confirmation letter to a patient receiving long-term treatment, the physician is required to specify the full name of such patient and disease code as specified in the list of diseases requiring long-term treatment issued by the Ministry of Health;

- All re-issued confirmation letters (including the following documents: discharge notes, birth certificates, confirmation of maternity leave and confirmation of poor postpartum health) must bear the reissuance seal; any revisions to the certificate must bear the seal of the medical facility (the seal registered with the social insurance authority).

File attachment:

English file-pdf CV1953_03102018BHXHHC[ENGLISH].pdf (English translation)

Vietnamese file-pdf CV1953_03102018BHXHHCM.pdf (Vietnamese)

Vietnamese file-word CV1953_03102018BHXHHCM.doc (Vietnamese)

fa-folder-open Advertising - Publishing

New ational technical regulations on the construction and installation of outdoor advertising facilities

fa-check-circle National technical regulations QCVN 17:2018/BXD dated May 20th, 2018 of the Ministry of Construction on the construction and installation of outdoor advertising facilities

This Regulation specifies the compulsory requirements for design, construction and installation of any outdoor advertising facility that is a separate work or attached to an existing work, including advertising boards, light boxes; outdoor advertising screens; signboard; advertising facilities in the form of letters, shapes of symbols.

According to point 2.2.1.7 of this Regulation, with regard to low-rise building (having less than stories), 01 horizontal board and 01 vertical board may be placed next to the signboard on each story. Under the earlier Regulation, it is only allowed to place only 01 advertising board.

However, it is required to ensure these requirements: For horizontal advertising board, its maximum protrusion is 0.2 m, maximum height is 2 m and width must not exceed the width of the building; For vertical advertising board, its maximum width is 1 m and the maximum height is 4 m.

In case advertising boards are placed on the side of a building, the advertising board or light box attached to a building having up to 4 stories must not protrude from the roof more than 1.5 m.

Advertising boards and light boxes attached to surrounding walls or fences of a building must also comply with the above - mentioned requirements (point 2.2.1.8).

With regard outdoor advertising screens, they must not have sounds and the minimum distance from the road surface to the lower edge of a stand-alone screen is 5 m (point 2.2.2.2).

If the signboard is hung horizontally above the gate or entrance, the distance from the lower edge of the board and the ground must be at least 4.25 m.

This Regulation is promulgated together with Circular No. 04/2018/TT-BXD, which takes effect from November 1st, 2018 and replaces QCVN 17:2013/BXD.

File attachment:

English file-pdf QCVN17_20052018BXD[EN].pdf (English translation)

Vietnamese file-word QCVN17_20052018BXD.doc (Vietnamese)

fa-folder-open Business Management

Powers and organizational structure of the Commission for the Management of State Capital at Enterprises

fa-check-circle Decree No. 131/2018/ND-CP dated September 29th, 2018 of the Government on defining functions, tasks, powers and organizational structure of the Commission for the Management of State Capital at Enterprises

“The Commission for the Management of State Capital at Enterprises (CMSC)” is a government agency; is designated by the Government to exercise rights and take on duties as the owner’s representative to wholly state-owned enterprises and state capital invested in joint-stock companies and multi-member limited liability companies in accordance with laws.

Under this Decree, Ministries, ministerial-level agencies, Government agencies, the People’s committees of provinces and central-affiliated cities shall transfer rights of a representative of the owner of state capital in enterprises to CMSC.

Accordingly, CMSC shall hold rights of a representative of the owner of state capital in enterprises such as the rights to make decision on charter capital, decisions on dissolution, ownership transfer, promulgate enterprise's charter, etc (with regard to wholly state-owned enterprises) and make decisions on capital increase, disposal of stocks and state investments , etc (with regard to enterprises having state capital) (Article 5).

However, CMSC shall not directly get involved in manufacturing and business activities of an enterprise, and administrative work of the enterprise’s management; do not make decisions on issues managed under the delegated authority of the Board of Members, enterprise’s President, Shareholders’ General Meeting, Board of Directors, General Director or Director of enterprise in accordance with laws and the enterprise's charter.

This Decree takes effect from the date of its signing.

File attachment:

English file-pdf ND131_29092018CP[ENGLISH].pdf (English translation)

Vietnamese file-word ND131_29092018CP.doc (Vietnamese)

Vietnamese file-pdf ND131_29092018CP.pdf (Vietnamese)

New guidelines on employee utilization plan and employee policies upon equitization

fa-check-circle Circular No. 07/2018/TT-BLDTBXH dated August 1st, 2018 of the Minstry of Labor, Invalids and Social Affairs on guidelines for formulating employee utilization plan and implementing employee policies in the context of equitization prescribed in the Government’s Decree No. 126/2017/ND-CP dated November 16, 2017 on conversion from state-owned enterprises and single-member limited liability companies with 100% of charter capital invested by state-owned enterprises into joint-stock companies

This Circular provides guidelines for formulating employee utilization plan; distribution of the remaining of unused reward fund and welfare fund; conditions for employees to be eligible to purchase discounted shares upon equitization of state-owned enterprises.

According to Article 3 of this Circular, when an enterprise formulates employee utilization plan for the purpose of equitization, it is required the participation of the organization providing representation for employees working in the enterprise. Such plan must be approved must be approved before the representative authority approves the equitization method.

Regarding entities that are entitled to distributions of remaining of unused reward fund and welfare fund, they are employees, managers and controllers who are working in the enterprise and appear on the list of the equitized enterprise’s employees on the date of enterprise valuation. However, it should noted that the seniority as the basis for distribution of the remaining of unused reward fund and welfare fund excludes the length of time that an employment contract has been suspended and unpaid leave which has been taken at least 14 consecutive days.

Persons eligible to purchase discounted shares are added more in comparison with the earlier regulations, including: Employees working under employment contracts, persons appointed to be full-time representatives of the other enterprises’ capital, managers and representatives of household businesses to receive fix funding (if any) of equitized enterprises on the date of equitized enterprise valuation

This Circular takes effect from September 15th, 2018 and replaces Circular No. 33/2012/TT-BLDTBXHfa-minus-circle dated December 20th, 2012.

File attachment:

English file-pdf TT07_01082018BLDTBXH[ENGLISH].pdf (English translation)

Vietnamese file-word TT07_01082018BLDTBXH.doc (Vietnamese)

Vietnamese file-pdf TT07_01082018BLDTBXH.pdf (Vietnamese)

List of state-invested enterprises undergoing divestment in 2017-2020 period

fa-check-circle Decision No. 1232/QD-TTg dated August 17th, 2017 of the Prime Minister on giving approval for list of state-invested enterprises undergoing divestment in 2017-2020 period

Under this Decision, the number of state-invested enterprises undergoing divestment in each year shall be as follows: in 2017, it was 135 enterprises; In 2018, it is 181 enterprises; in 2019, it will be 62 enterprises and in 2020 it will be 28 enterprises.

The List also regulates in details the minimum ratio of funds to be divested during year of each enterprise.

This Decision comes into force as from the date on which it is signed.

File attachment:

English file-pdf QD1232_17082017TTg[ENGLISH].pdf (English translation)

Vietnamese file-word QD1232_17082017TTg.doc (Vietnamese)

Vietnamese file-pdf QD1232_17082017TTg.pdf (Vietnamese)

fa-folder-open Customs policies

Plan for promotion of single-window systems and reform of specialized inspections over imports and exports by 2020

fa-check-circle Decision No. 1254/QD-TTg dated September 26th, 2018 of the Prime Minister on approving plan of action for promotion of national single-window system, ASEAN single-window system, reform of specialized inspections over imports and exports and trade facilitation for the period of 2018 - 2020

This plan is aimed to promote the application of national single-window system, ASEAN single-window system and reform of specialized inspections over imports and exports and trade facilitation for the period of 2018 – 2020 with these specific objectives:

- By the end of 2019, at least 80% of administrative procedures that have a large volume of transactions and have great effects on enterprises, organizations or people out of total administrative procedures for exports, imports and goods in transit; persons and means upon exit, entry and in transit, will be implemented through the national single-window system.

- Continue to hold the rank equal to the top four ASEAN countries in terms of the time of customs clearance and release of goods, people and facilities

- By 2020, fees and charges for implementation of all administrative procedures through the single-window system will be collected online

- Electronic evidencing documents (e.g. electronic licenses, electronic certificates and other equivalent electronic documents) issued through the national single-window system shall be used in carrying out other relevant administrative procedures

- Carry out the exchange and mutual recognition of commercial documents issued in an electronic form with ASEAN countries

- Complete the mechanism for management of electronic cross-border trades

- From 2018 onwards, continue to reduce and simplify the list of imported goods subject to pre-clearance specialized management and inspection; comprehensively reform specialized inspection over imported and exported goods, reduce the number of import shipments subject to the specialized border-gate inspection to less than 10%.

- In 2019, submit to the National Assembly the scheme for pilot implementation of the mechanism of the bond for customs clearance of a number of imports and exports subject to the specialized inspection

This Decision takes effect from the date of its singing.

These List are enclosed with this Decision

1. List of administrative procedures implemented through the national single-window system for the period 2018 – 2020;

2. List of legislative documents on specialized management and inspection to which amendments and supplements are required;

3. Groups of goods of ministries and sectoral administrations for which specialized inspection standards and regulations must be promulgated;

4. List of exports and imports subject to specialized management and inspection of which HS codes must be designated.

File attachment:

English file-pdf QD1254_26092018TTg[ENGLISH].pdf (English translation)

Vietnamese file-word QD1254_26092018TTg.doc (Vietnamese)

Vietnamese file-pdf QD1254_26092018TTg.pdf (Vietnamese)

fa-folder-open Domestic Investment

Regarding import duty exemption policy applicable to machinery, equipment imported to form fixed assets for projects entitled to investment incentives

fa-check-circle Official letter No. 5836/TXNK-CST dated October 2nd, 2018 of the General Department of Vietnam Customs regarding imported goods of projects entitled to investment incentives

According to Clause 11 Article 16 of the Law on import and export duties No. 107/2016/QH13, import duty on machinery, equipment, supplies imported to form fixed assets for projects entitled to investment incentives shall be exempt.

However, notably, the aforesaid duty exemption policy is only applicable to equipment, supplies which are used immediately for forming fixed assets of projects; it is not exempt from duty on equipment, supplies imported for maintenance stage after the projects have been put into operation.

File attachment:

English file-pdf CV5836_02102018TCHQ[VLO].pdf (English translation)

Vietnamese file-word CV5836_02102018TCHQ.doc (Vietnamese)

Regarding EIT incentives upon addition of business lines

fa-check-circle Official letter No. 48514/CT-TTHT dated July 12th, 2018 of the Department of Taxation of Ha Noi city regarding enterprise income tax (EIT) incentives

In case a company executes an investment project in an industrial zone, if the conditions on new investment project as regulated in Clause 3 Article 10 of Circular No. 96/2015/TT-BTCfa-exclamation-circle are met and the industrial zone does not belong to an area with socio-economic advantages concurrently the company fully makes cost accounting and pays tax as declared, the project shall be given tax incentives.

If in the course of business and production operation, the company adds more business lines resulting in changes of information in the Investment certificate and these changes do not affect the Company's satisfaction of conditions for EIT incentives, the Company shall be further entitled to enjoy EIT incentives for the remaining period.

In principle, income eligible to tax incentives thanks to meeting the geographical areas - related conditions is the whole income generated from business and production activities taken place in the preferential geographical area, except for the incomes regulated in Clause 1 Article 10 of Circular No. 96/2015/TT-BTCfa-exclamation-circle .

File attachment:

English file-pdf CV48514_12072018CTHN[VLO].pdf (English translation)

Vietnamese file-word CV48514_12072018CTHN.doc (Vietnamese)

Vietnamese file-pdf CV48514_12072018CTHN.pdf (Vietnamese)

fa-folder-open Electricity - Energy

Some new guidelines on determination of electricity prices

fa-check-circle Circular No. 25/2018/TT-BCT dated September 12th, 2018 of the Ministry of Industry and Trade on amending and supplementing the Circular No. 16/2014/TT-BCT dated May 29, 2014 of the Minister of Industry and Trade on electricity prices

This Circular is to supplement some regulations on determination of electricity prices

1. Determination of electricity prices for clients that buy apartments in case the investor has transferred the apartments without carrying out procedures for handing over the electricity network to electricity retailers.

2. Principles for determining wholesale price upon adjusting the retail prices of electricity.

3. Determination of wholesale price of electricity in markets.

4. Determination of retail price of electricity for domestic purpose for tenants that are students or workers.

This Circular takes effect from October 26th, 2018.

File attachment:

English file-pdf TT25_12092018BCT[ENGLISH].pdf (English translation)

Vietnamese file-word TT25_12092018BCT.doc (Vietnamese)

Vietnamese file-pdf TT25_12092018BCT.pdf (Vietnamese)

fa-folder-open Export processing enterprises

Regarding VAT rate applicable to the service of holding seminars outside EPEs

fa-check-circle Official letter No. 49275/CT-TTHT dated July 16th, 2018 of the Department of Taxation of Ha Noi city regarding tax policy

According to Clause 2 Article 1 of Circular No. 130/2016/TT-BTC, the service of holding meetings, seminars in Vietnam shall not be entitled to apply 0% VAT.

Accordingly, in case a company provides the service of holding meetings, seminars for an export processing enterprise (EPE) but locations for holding the meetings, seminars are outside the EPE, the company shall not be entitled to apply 0% VAT but has to apply 10% VAT.

If the Company has made invoice and applied incorrect VAT rate, the parties have to make a record specifying errors and make a corrective invoice according to the prescribed tax rate.

File attachment:

English file-pdf CV49275_16072018CTHN[VLO].pdf (English translation)

Vietnamese file-word CV49275_16072018CTHN.doc (Vietnamese)

Vietnamese file-pdf CV49275_16072018CTHN.pdf (Vietnamese)

fa-folder-open Import and export policies

From October 29th, 2018: Imported paper scarp must meet QCVN 33:2018/BTNMT

fa-check-circle Official letter No. 3143/GSQL-GQ1 dated October 4th, 2018 of the General Department of Vietnam Customs regarding import of paper scrap

Currently, the National technical regulation on environment for imported paper scrap has been promulgated at Circular No. 08/2018/TT-BTNMT, QCVN 33:2018/BTNMT, which takes effect from October 29th, 2018.

Accordingly, paper scrap imported from October 29th, 2018 must meet the aforesaid National technical regulation.

File attachment:

English file-pdf CV3143_04102018TCHQ[VLO].pdf (English translation)

Vietnamese file-word CV3143_04102018TCHQ.doc (Vietnamese)

Conditions on scrap import shall be further tighten

fa-check-circle Directive No. 27/CT-TTg dated September 17th, 2018 of the Prime Minister on a number of urgent solutions for enhancement of management of scrap import and use of imported scrap for production purpose

Aiming to strictly control the scrap import and minimize risk of environmental pollution, the Prime Minister requested for addition of these regulations:

- Do not grant a new certificate of conformity to environmental protection regulations for scrap import or extend such certificate of conformity with regard to the importer of scrap under an authorization contract

- Only consider whether to grant the certificate of conformity to the importer of scrap for production purpose after the demand and capacity for scrap use of such importer is proved

- Do not grant permit for import of scrap for the purpose of processing and re-sale

-Request the registration of import deposit for scrap before such scrap is imported into territorial seas and territory of Vietnam

- Impose strict regulations on environmental pollution on users of imported scrap for production purpose

- Revise the list of scrap permitted for import with the aim of not approving import of scrap that may cause environmental pollution and available scrap

- To suspend the temporary import for re-export, transit and transshipment of scrap into the territory of Vietnam

From October 1st, 2018, it is not allowed to import scrap into Vietnam through checkpoints by roads or railroads.

- To amend current regulations with the aim of making a list of scrap prohibited from being temporarily imported for re-exported, transited and transshipped.

File attachment:

English file-pdf CT27_17092018TTg[ENGLISH].pdf (English translation)

Vietnamese file-word CT27_17092018TTg.doc (Vietnamese)

Vietnamese file-pdf CT27_17092018TTg.pdf (Vietnamese)

It is not allowable to import scraps without national technical regulations on environment

fa-check-circle Official letter No. 5282/TCHQ-GSQL dated September 11th, 2018 of the General Department of Vietnam Customs regarding import of scraps without national technical regulations on environment

According to Article 76 of the Law on environment protection No. 55/2014/QH13, scraps imported from abroad into Vietnam must meet environmental technical regulations.

Accordingly, the General Department of Vietnam Customs assumes that only scraps which have national technical regulations on environment are considered being granted customs clearance.

In contrast, if scraps have not yet had national technical regulations on environment, customs authorities do not have grounds to inspect, compare the conformity with national technical regulations on environment of imported scrap shipments in order to grant customs clearance.

File attachment:

English file-pdf CV5282_11092018TCHQ[VLO].pdf (English translation)

Vietnamese file-word CV5282_11092018TCHQ.doc (Vietnamese)

Vietnamese file-pdf CV5282_11092018TCHQ.PDF (Vietnamese)

Conditions for rice export business shall be loosened

fa-check-circle Decree No. 107/2018/ND-CP dated August 15th, 2018 of the Government on rice export business

In comparison with the earlier regulations, this Decree loosens requirements for obtaining a license for rice export business such as it is not required minimum capacity of rice warehouse, rice mill and it is allowed to lease rice warehouse, mill of other unit.

In addition, under this Decree, any trader that exports organic rice, parboiled rice and rice with micronutrients shall be exempt from license.

This Decree takes effect from October 1st, 2018 and abolishes Decree No. 109/2010/ND-CPfa-minus-circle dated November 4th, 2010.

File attachment:

English file-pdf ND107_15082018CP[ENGLISH].pdf (English translation)

Vietnamese file-word ND107_15082018CP.doc (Vietnamese)

Vietnamese file-pdf ND107_15082018CP.pdf (Vietnamese)

Import conditions and customs control mechanism with regard to scrap

fa-check-circle Dispatch No. 4202/TCHQ-PC dated July 17th, 2018 of the General Department of Vietnam Custom on management of import of scrap into Vietnam

This Official letter is to provide guidelines on conditions for import of scrap, how to make customs declaration, physical inspection and forms of handling scrap disallowable to be imported.

Accordingly, any kind of materials discharged in production, business, service, daily human and other activities shall be prohibited from being imported and transit in any form, except scrap that fully meets these conditions:

(i) It belongs to the list of scrap permitted for import issued by the Prime Minister (currently, it is Decision No. 73/2014/QD-TTg).

(ii) The national technical regulations on environment for these scrap materials must be made available. This requirement is now subject to the Circular No. 43/2010/TT-BTNMTfa-minus-circle .

(iii) They must be imported within the import quota by enterprises holding the certificate of conformity.

In addition, in order to be granted customs clearance, upon declaration, enterprises are required to complete the e-manifest system, all detailed information on the importing enterprise, including its name, tax code, address, number of certificate of conformity, etc and information on goods such as type of scrap, HS code containing at least 4 digits, etc.).

Regarding customs supervision, all shipments claimed as imported scrap shall be subject to the strict inspection of dossier and physical inspection. The physical inspection of goods shall be carried out at the Customs Sub-department at the entry checkpoint and in the area under such system’s surveillance.

It should note that with regard to used goods, not scrap but are characterized as scrap (e.g. USED woven jumbo bags, USED pr film, USED tyre, etc.,), they are also required to fully meet the import conditions and subject to the customs supervision as scrap imported.

This Official letter replaces Official letter No. 8154/TCHQ-GSQLfa-minus-circle dated September 8th, 2015, Official letter No. 2443/TCHQ-GSQL dated May 7th, 2018 and Official letter No. 3738/TCHQ-GSQLfa-minus-circle dated June 26th, 2018.

File attachment:

English file-pdf CV4202_17072018TCHQ[ENGLISH].pdf (English translation)

Vietnamese file-word CV4202_17072018TCHQ.doc (Vietnamese)

Vietnamese file-pdf CV4202_17072018TCHQ.PDF (Vietnamese)

fa-folder-open ODA projects

Amendments to regulations on sectors given priority to use ODA loans

fa-check-circle Decree No. 132/2018/ND-CP dated October 1st, 2018 of the Government on amendments to Decree No. 16/2016/ND-CP dated March 16, 2016 on management and use of official development assistance and concessional loans granted by foreign sponsors

This Decree is to amend, supplement the regulations on sectors given priority to use ODA loans, concessional loans; procedures for appraising, approving proposals or decisions on investment guidelines; payment and settlement with regard to projects funded by ODA loans or concessional loans.

This Decree takes effect from the date of its signing.

File attachment:

English file-pdf ND132_01102018CP[EN].pdf (English translation)

Vietnamese file-word ND132_01102018CP.doc (Vietnamese)

Vietnamese file-pdf ND132_01102018CP.pdf (Vietnamese)

Regarding withholding tax incurred by foreign contractors that provide counseling services for ODA projects

fa-check-circle Official letter No. 53151/CT-TTHT dated July 31st, 2018 of the Department of Taxation of Ha Noi city regarding withholding tax policy

According to Clause 2 Article 6, Clause 2 Article 10 of Circular No. 181/2013/TT-BTC, in case a foreign contractor provides counseling service for ODA project in Vietnam, if the project is funded with non-refundable ODA (ODA grant) and the contract is signed according to a VAT – exclusive price, the foreign contractor shall be exempt from VAT but it has to pay enterprise income tax (EIT).

However, if the project is funded with ODA grant but the contract is signed according to a VAT – inclusive price or this project is funded with concessional ODA loan, the foreign contractor has to pay both VAT and EIT.

In case the project is funded with both ODA grant and concessional ODA loan, if these capital sources are financed according to separate financing agreement or separate disbursement for each specific activity of the project, the foreign contractor shall be entitled to apply particular tax policies according to each type of the capital.

In contrast, if there is no separate financing agreement or no separate disbursement for each specific activity of each type of capital, the foreign contractor shall be subject to tax according to the capital source to which the lowest incentives are given.

If the foreign contractor is subject to tax according to a percentage, the percentage for tax calculation with regard to the counseling service is 5% VAT and 5% EIT (Article 12, Article 13 of Circular No. 103/2014/TT-BTC ).

File attachment:

English file-pdf CV53151_31072018CTHN[VLO].pdf (English translation)

Vietnamese file-word CV53151_31072018CTHN.doc (Vietnamese)

Vietnamese file-pdf CV53151_31072018CTHN.pdf (Vietnamese)

fa-folder-open Project Management

Regarding authorization of transfer of a project

fa-check-circle Official letter No. 2467/BXD-HDXD dated October 3rd, 2018 of the Ministry of Construction regarding authorization in construction contract

According to the Ministry of Construction’s opinions, in principle, the transfer of an investment project and authorization of the transfer shall be carried out according to regulations of the Civil Code and other related regulations of laws.

However, in order to have grounds to answer correctly, it is required to clarify which sector the project is going to transfer and form of execution of the project which is being deployed.

File attachment:

English file-pdf CV2467_03102018BXD[VLO].pdf (English translation)

Vietnamese file-pdf CV2467_03102018BXD.pdf (Vietnamese)

Vietnamese file-word CV2467_03102018BXD.doc (Vietnamese)

fa-folder-open Quality control

Regarding inspection of quality of group - 2 commodities under the management of the Ministry of Labour - Invalids and Social Affairs

fa-check-circle Official letter No. 3160/GSQL-GQ1 dated October 5th, 2018 of the General Department of Vietnam Customs regarding inspection of quality of group - 2 commodities under the management of Ministry of Labour - Invalids and Social Affairs

According to opinions of the General Department of Vietnam Customs, up to now, the Ministry of Labour - Invalids and Social Affairs has not yet promulgated a new List of group - 2 commodities and regulatory measures in accordance with the regulations of Decree No. 74/2018/ND-CP.

As the result, the inspection of quality of group - 2 commodities under the management of Ministry of Labour - Invalids and Social Affairs currently is still carried out according to the regulations of Circular No. 03/2010/TT-BLDTBXH. Accordingly, the inspection of quality of group - 2 commodities is only applicable to production process rather than applicable to imports, exports.

File attachment:

English file-pdf CV3160_05102018TCHQ[VLO].pdf (English translation)

Vietnamese file-word CV3160_05102018TCHQ.doc (Vietnamese)

fa-folder-open Steel and Iron

Regulations on technology and equipment for production of cast iron and steel

fa-check-circle Circular No. 03/2014/TT-BCT dated January 25th, 2014 of the Ministry of Industry and Trade regulations on technology and equipment for production of cast iron and steel

This Circular provides for technology and equipment used in steel manufacturers and cast iron manufacturers, including coke making, sintering, ironmaking, steelmaking by converter, electric-arc steelmaking, steelmaking by induction furnace and steel rolling.

This Circular shall not apply to steel manufacturers and cast iron manufacturers for casting mechanical properties; non-ferrous metallurgy, production of alloy steel and steel for metalworking.

This Circular takes effect from June 1st, 2014.

File attachment:

English file-pdf TT03_25012014BCT[EN].pdf (English translation)

Vietnamese file-pdf TT03_25012014BCT.pdf (Vietnamese)

Vietnamese file-word TT03_25012014BCT.doc (Vietnamese)

fa-folder-open Customs policies

Regarding repair of goods for foreign party

fa-check-circle Dispatch No. 1005/XNK-THCS dated October 4th, 2018 of the Ministry of Industry and Trade regarding temporary import, re-export and processing of goods

Based on Article 178 of the commercial Law No. 36/2005/QH11fa-exclamation-circle and Clause 1 Article 41 of the Law on foreign trade management No. 05/2017/QH14 , the activity of transport of goods to Vietnam for repair is not considered processing or temporary import or re-export

“Processing” under Article 178 of the Commercial Law means a commercial activity whereby a processor part or whole of raw materials and materials supplied by the hirer to perform one or several stages of the production process at the latter’s request and receives a payment in return.

“Temporary importation – re-exportation” as prescribed in Clause 1 Article 41 of the Law on foreign trade management means the temporary importation of goods for the purposes of ion maintenance, renting, lending or use these products for another purposes for a certain period of time and re-export these products from Vietnam.

File attachment:

English file-pdf CV1005_04092018BCT[ENGLISH].pdf (English translation)

Vietnamese file-word CV1005_04092018BCT.doc (Vietnamese)

fa-folder-open Electricity - Energy

Amendments to regulations on inspection of electrical activities and consumption of electricity, settlement of disputes concerning power purchase agreements

fa-check-circle-o Circular No. 31/2018/TT-BCT dated October 5th, 2018 of the Ministry of Industry and Trade on amending and supplementing a number of articles of the Circular No. 27/2013/TT-BCT dated October 31, 2013 on inspection of electrical activities and consumption of electricity, settlement of disputes concerning power purchase agreements

This Circular takes effect from November 20th, 2018

To abolish Article 6 of Circular No. 06/2015/TT-BCTfa-exclamation-circle dated April 23rd, 2015 and Article 10 of Circular No. 04/2016/TT-BCT dated June 6th, 2016.

File attachment:

English file-pdf TT31_05102018BCT[ENGLISH].pdf (English translation)

Vietnamese file-pdf TT31_05102018BCT.pdf (Vietnamese)

Vietnamese file-word TT31_05102018BCT.doc (Vietnamese)

fa-folder-open Labour - Employment

Target program for vocational education, employment and occupational safety during 2016 - 2020

fa-check-circle Decision No. 899/QD-TTg dated June 20th, 2017 of the Prime Minister on proving target program for vocational education, employment and occupational safety during 2016 - 2020

The program's general objectives are to give assistance in vocational education development; foster labor market development; improve efficiency in labor supply and demand; create jobs, enhance labor export, occupational safety and health in order to meet the demand for country development and integration into the international economy; boost job stability in combination with labor productivity increase, improve working conditions and increase income as well as prevent occupational accidents.

This Decision comes into force from the day on which it is signed.

File attachment:

English file-pdf QD899_20062017TTg[ENGLISH].pdf (English translation)

Vietnamese file-word QD899_20062017TTg.doc (Vietnamese)

Vietnamese file-pdf QD899_20062017TTg.pdf (Vietnamese)