Legal Information

Latest updates on June 12, 2016

New Legislation

October 2016

Circular No.11/2016/TT-BKHDT provides guidelines for the preparation of bidding documents for engineering, procurement, and construction (EPC).

September 2016

Circular No.128/2016/TT-BTC regulates the exemption and reduction of the export tax on products that are environment-friendly or result from the recycling and treatment of waste as defined in the Decree No. 19/2015/ND-CP as follows:

- Export tax is exempted for environment-friendly products defined in the export tax schedule and certified in writing under Vietnam Green Label.

- Export tax is reduced by 50% for products of waste recycling and treatment, which are defined in the export tax schedule and certified by competent government authorities as by the Ministry of Natural resources and Environment’s guidelines.

- Export tax is levied at 0% on environment-friendly goods and products of waste recycling and treatment, which are not stated in the export tax schedule.

June 2016

*  Circular No. 12/2016/TT-BGDDT dated 22 April 2016 of the Ministry of Education and Training on the application of information technology to online training management and organization came into effect on 09 June 2016

Decision No. 20/2016/QD-TTg dated 11 May 2016 of the Prime Minister providing financial support for activities against smuggling, trade fraud and counterfeit goods and payment of expenses for management and disposal of confiscated assets according to regulations against smuggling, trade fraud, and counterfeit goods will come into effect on 26 June 2016.

*Circular No. 12/2016/TT-BTTT dated 5 May 2016 of the Ministry of Information and Communication providing provisions on the appointment of laboratories which join the mutual recognition agreement on conformity assessment with respect to telecommunication and information technology products will come into effect 30 June 2016.

May 2016

* Decree No. 16/2016/ND-CP dated 16 March 2016 of the Government on management and utilization of official development assistance (ODA) and preferential loans from foreign lenders came into effect as from 2 May 2016 and replaces Decree No. 38/2013/ND-CP.

* Decree No. 19/2016/ND-CP dated 22 March 2016 of the Government on gas business came into effect 15 May 2016.

March 2016

* Decree No. 07/2016/ND-CP dated 25 January 2016 of the Government, regarding foreign traders wanting to establish branches, representative offices in Viet Nam defines the rights, responsibilities, the granting and extension of certificates pertaining to the setting up of foreign traders’ representative offices in Viet Nam and the State management on the operation of these representatives and branches, came into effect on 10 March 2016.

* Decision No. 326/QD-TTg dated 1 March 2016 of the Prime Minister approving the master plan on development of Vietnam’s expressway network through 2020, with orientations toward 2030 came into effect  1 March 2016.

January 2016

* Decree No. 117/2015/ND-CP dated 12 November 2015 of the Government on establishment, management and use of housing and real estate market information system came into effect on 1 January 2016.

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2015

On 26 November 2014, the National Assembly of Vietnam approved a new law on enterprises and a new law on investment in order to improve the legal framework for investment and establishing the business in Vietnam.

These two laws came into effect on 1 July 2015.

1. Law on Investment (click to open the law in PDF)

For foreign investors, direct investments under the new Investment Law are more open compared to guidance set forth in the Law on Foreign Investment. Hence, besides the type of limited companies (joint-venture companies, 100% foreign companies), investors can establish joint-stock, associate companies under the Enterprise Law; contribute capital to, buy shares from Vietnamese enterprises in certain sectors, businesses under the government’s regulations; and buy, integrate branches of companies under the law on competition and relevant laws.

Documentation filing, procedural order, formalities, investment and business registration content for the first-time foreign investor will be implemented pursuant to provisions of the Commercial Law and Investment Law. The investment certificate also serves as a business registration certificate.

2. Law on Enterprises (click to open the law in PDF)

According to the new Enterprise Law, Limited Liability Companies (“LLCs”) and Joint Stock Companies (“JSCs”) may now have one or more legal representatives. The Charter must specify the number of legal representatives, their positions, rights, and obligations. At least one legal representative must reside in Vietnam. This new regime will facilitate business transactions of enterprises and reduce bottleneck situations where transaction execution depends on a single legal representative. However, the new regime also introduces new complications, as governance must be tightened up to avoid overlapping or confusing authority among the multiple legal representatives.

Another breakthrough of the new Enterprise Law is the Company Chop (Seal) regime. The companies may decide on the number, form, and contents of the chops, so long as the sample of chops must be registered with the business registration authorities. As such, under the new Enterprise Law, the Chop will no longer bear the overarching authority of authenticating the validity of company documents, and more importantly, multiple Chops will speed up company business.

 

Useful Links

- Vietnam Government Portal in English

- Business Registration in Vietnam

 

 

 

 

 

 

 

 

 

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