1. DECREE 38/2018/ND-CP
“Establishment of Fund for innovative start-up investment for small and medium enterprises“
Decree No. 38/2018/ND-CP (“Decree 38”) dated 11/03/2018 of the Government providing detailed regulations on innovative start-up investment for small and medium enterprises is effective on the same date.
The innovative start-up fund is set up by a maximum of 30 capital contributors on the basis of a fund charter; it has no legal person status; the fund may not contribute capital to other innovative start-up funds. Contributed assets may be in Vietnam Dong, gold, the value of land use rights and other assets that can be valued in Vietnam Dong. Investors may not use loans to contribute capital in order to set up innovative investment funds.
The scope of investment activities of the innovative start-up fund includes: (i) money deposits at commercial banks; (ii) investment of not more than 50% of charter capital of small and medium innovative start-up enterprises after receiving investment.
Having a specific legal framework for innovative start-up funds will enable small and medium-sized businesses, start-up companies to have a good platform to grow and expand.
2. DECREE 39/2018/ND-CP
“Support for vocational training for small and medium enterprises“
Decree No. 39/2018/ND-CP (“Decree 39”) dated 11/03/2018 of the Government specifying some provisions of the Law on Provision of assistance for small and medium enterprises is effective on the same date, and replaces Decree No. 56/2009/ND-CP.
Decree 39 stipulates that small and medium enterprises shall be exempted from training expenses when they send employees to participate in basic training programs or training programs under three (03) months. The remaining costs shall be agreed upon by the small and medium enterprise and the employees. For training costs to be exempted, employees must meet the following conditions: (i) having worked in the enterprise for at least six (6) consecutive months; (ii) not older than fifty (50) years for men and forty-five (45) years for women. MOLISA is responsible for issuing detailed guidelines in the future.
Small and medium enterprises in the field of production and processing are entitled to be supported with 50% of the total cost of a direct training course at the enterprise but not more than one (01) time per year. The training course is conducted with at least 10 attendants.
In addition, these small-scale enterprises are also provided with support in using the consultancy services of the consultants network on the National Small and Medium Enterprise Information Portal (excluding consultancy on administrative procedures according to specialized regulations). Accordingly, micro enterprises shall be supported with 100% of the value of consultancy contracts but not exceeding VND 3,000,000/year; small enterprises shall be entitled to a reduction of 30% but not exceeding VND 5,000,000/year; medium enterprises shall be entitled to a reduction of 10% but not exceeding VND 10,000,000/year.
3. DECREE 40/2018/ND-CP
“Amendments to several conditions for registration of multi-level sales activity“
Decree No. 40/2018/ND-CP (“Decree 40”) dated 12/03/2018 of the Government on the management of business activities under the form of multi-level is effective as of 02/05/2018, and replaces Decree No. 42/2014/ND-CP.
Accordingly, digital content products have been categorized as products not for multi-level sales.
This Decree also amends and supplements a number of conditions applicable to organizations registering for multi-level sale of goods, requesting multi-level sales enterprises must have: (i) the charter capital of at least 10,000,000,000 Dong; (ii) contracts for participation in multi-level sales; (iii) an information technology system which manages the multi-level sales network and the website of the enterprise; (iv) a communication system to receive, resolve enquiries and complaints of participants in multi-level sales.
In particular, according to Decree 40, the deposit of multi-level sales enterprises must be equivalent to 5% of charter capital but not lower than VND 10,000,000,000, instead of not less than VND 5,000,000,000 as before. This is intended to increase the level of commitment of multi-level sales enterprises to the salespeople and administrative agencies in their business operations. This deposit will be frozen during the period of operation of the enterprise and can only be withdrawn and used when the Ministry of Industry and Trade approves in written form.
In addition, Decree 40 also expands the list of persons not permitted to participate in multi-level sales activities including cadres and civil servants. Participants in multi-level sales must be trained in legal knowledge on multi-level sales and such training programs must be certified by the Ministry of Industry and Trade.
4. DECREE 63/2018/ND-CP
“Amendments to several regulations regarding investment projects under the form of public-private partnership (PPP)“
Decree No. 63/2018/ND-CP (“Decree 63”) dated 04/05/2018 of the Government providing regulations on investment under the form of public-private partnership is effective as of 19/06/2018, and replaces Decree No. 15/2015/ND-CP.
According to Decree 63, investors are not required to carry out the procedures for the issuance of investment registration certificates during the course of implementing PPP projects, thus the project implementation time is shortened.
Decree 63 also raised the condition on the equity ratio of private investors, as follows:
For projects with total investment capital below VND 1,500 billion, 20% (in comparison with 15% as before);
For projects with total investment capital of over VND 1,500 billion, owners’ equity of private investors must account for at least 20% of the capital amounting up to 1,500 billion and at least 10% of the remaining capital exceeding 1,500 billion.
Moreover, Decree 63 stipulates that prices and charges for goods and services and revenues from public-private partnerships must ensure the interests of three (03) parties: investors – users – the state, enabling the investors to recoup and make profits.
5. DECREE 28/2018/ND-CP
“New methods of developing foreign trade in the context of economic integration“
Decree No. 28/2018/ND-CP (“Decree 28”) dated 01/03/2018 of the Government specifying several regulations of the Law on Foreign trade management on methods of developing foreign trade is effective on the same date, and replaces Decree No. 100/2011/ND-CP.
Decree 28 stipulates that trade promotion schemes under national programs shall be supported with a maximum of 100% of funding for specific contents such as: organizing international fairs and exhibitions abroad and in Vietnam regarding export products; supporting the construction of exhibition areas, introduction of export goods on web portal, the Internet, E-commerce network etc.
For enterprises which have products under Vietnam’s national trademark program, besides being able to enjoy priority regimes when carrying out tax, customs and other administrative procedures, such enterprises shall also be entitled to supportive funding when participating in activities under the Vietnam National Brand Program.
6. DECREE 31/2018/ND-CP
“Measures against fraudulence of origin of goods“
Decree No. 31/2017/ND-CP (“Decree 31”) dated 08/03/2018 of the Government providing the Law on Foreign trade management with guidelines on origins of goods is effective on the same date, and replaces Decree No. 19/2006/ND-CP.
Decree No. 31 supplemented the regulation that the agency or organization issuing the Certificate of Origin may take measures against fraudulence of origin in three (03) circumstances:
- Temporary suspension of issuing certificates of origin for three (03) months, since the first time the trader has published information and data irrelevant to the issuance of Certificate of Origin onto the Management and Issuance of Electronic Certificates of Origin System;
- Temporary suspension of issuing certificates of origin for six (6) months, from the date of detection of fake certificates or fraudulent declaration when applying for a Certificate;
- Revocation of granted Certificate and suspension of issuance for six (06) months from the date the trader fails to cooperate, to provide all necessary dossiers and certificates or supplies false proof of the origin of goods when the agencies or organizations issuing Certificates conduct post-inspection.
Apart from the above-mentioned measures, the agencies and organizations issuing the Certificates may apply the Red Channel regime in the risk management system to the traders and make announcements on the Electronic Information Portal of the Ministry of Industry and Trade.
7. DECREE 51/2018/ND-CP
“Amendments to several regulations on commodities trades through Commodity Exchange“
Decree No. 51/2018/ND-CP (“Decree 51”) dated 09/04/2018 of the Government amending and supplementing several provisions of Decree No. 158/2006/ND-CP which specifies the Commercial Law on commodities trades through Commodity Exchange, is effective as of 01/06/2018.
Accordingly, Decree 51 has annulled the regulation that in regard of commodities on the list of commodities issued by Minister of Industry and Trade, only trade activities through Commodity Exchange shall apply.
With the new Decree 51, commodities not on the list issued by the Minister of Industry and Trade can also be traded through the Commodity Exchange. The Commodity Exchange must register for approval from competent agencies before listing regarding items on the list of commodities subject to conditional or restricted sales. For items not on the list of banned commodities or subject to conditional or restricted sales, the Commodity Exchange must send notification dossiers to the Ministry of Industry and Trade 30 days before the official listing.
Decree 51 also supplements the case where foreign investors contribute capital to establish Commodity Exchanges in Vietnam; to buy shares, capital of the Commodity Exchange with the proportion of no more than 49% of charter capital.
8. CIRCULAR 38/2018/BTC
“Cases where submission of certificate of origin is not required“
Circular No. 38/2018/BTC (“Circular 38”) dated 20/04/2018 of the Ministry of Finance providing regulations on the determination of origin of export, import goods, is effective as of 05/06/2018.
Circular 38 stipulates cases where certificates of origin are not required to be submitted:
- Export goods;
- Import goods not belonging to such categories as: goods originating in countries enjoying Vietnam’s preferential tax treatment; goods in the state of posing a risk; goods subject to the imposition of anti-dumping tax, anti-subsidy tax, etc.; goods subject to import control regimes etc.;
- Import goods in the case of exemptions of submission of certificates of origin of goods in accordance with International treaties in which Vietnam is a member.
For goods in cases (i) and (ii), however when the customs declarant requests to submit certificates of origin of such goods at the time of carrying out customs procedures and conducts declaration according to regulations, customs agency shall receive and inspect the certificates according to regulations.
Certificates of origin of goods must be signed by producers or exporters, unless otherwise provided for by International treaties or certificates of origin of goods are provided under electronic form through the National one-stop information system.
9. DECREE 69/2018/ND-CP
“Changing some provisions on temporary import and re-export business under given conditions“
Decree No. 69/2018/ND-CP dated 15/05/2018 of the Government on detailing number of provisions of the Law on Foreign Trade Management takes effect on the same day, replacing Decision 10/2010/QD-TTg and Decree No. 187/2013/ND-CP.
Compared to previous regulations, Decree 69 has changed some provisions on temporary import and re-export business under given conditions, for certain type of products: for frozen food; goods with special consumption tax; In case of used goods, the new regulations have removed the conditions for compelling the enterprises to be established for at least 2 years, have engaged in export or import activities or temporarily imported or re-exported goods.
In addition, Decree 69 additionally provides for enterprises to conduct temporary import and re-export business which are enterprises which are not entrusted with or entrusted to temporarily import or re-export goods temporarily imported.
10. CIRCULAR 39/2018/TT-BTC
“The rate for late tax payment is 0.03%/day“
Circular No. 39/2018/TT-BTC (“Circular 39”) dated 20/04/2018 of the Ministry of Finance amending and supplementing Circular No. 38/2015/TT-BTC on customs procedures; customs inspection, surveillance; export tariffs, import tariffs and tax management of export, import goods, is effective on 05/06/2018.
Accordingly, the currently effective rate for late tax payment is 0.03%/day on the amount of late payment, reduced by 0.02% in comparison with previous regulations. Circular 39 also annuls the regulation that taxpayers must pay late payments in case they declare to carry out the procedures for export or import of taxed goods, duty-free goods and goods enjoying preferential tax rates, special incentives, tax rates according to quotas, but after examination, such goods are determined to be taxed goods, goods not entitled to tax exemption or incentives.
At the same time, another regulation has also been added, under which the taxpayers shall have to pay the late payment when the export or import goods which are taxed goods, are guaranteed for customs clearance or release according to the laws.
