VIETNAM LEGAL NEWS APRIL, 2021

Some new Vietnam legal documents have been issued and come into effect in April 2021, including:

- Decree 47/2021/ND-CP guiding the Law on Enterprises;

- Decision 10/2021/QD-TTg regulating criteria for identifying high-tech enterprises issued by the Prime Minister;

- Circular 10/2020/TT-BKHCN guiding Decree 132/2008/ND-CP and 74/2018/ND-CP on the use of codes and barcodes issued by the Ministry of Science and Technology;

-Decree 49/2021/ND-CP amending Decree 100/2015/ND-P on development and management of social housing;

- Decree 18/2021/ND-CP amending Decree 134/2016/ND-CP guiding the Law on Import Tax and Export Tax;

Circular 17/2021/TT-BTC in 2021 amending Circular 14/2015/TT-BTC guiding the classification of goods, analysis for classifying goods; analysis for quality inspection and food safety inspection of import, export goods, issued by the Ministry of Finance;

- Decree 50/2021/ND-CP amending Decree 37/2015/ND-CP detailing construction contracts.

The following are highlights of some new legal documents in effect in March 2021:

1. Decree 47/2021/ND-CP guiding the Vietnam Law on Enterprises

In particular, Decree 47 provides detailed regulations on social enterprises, state-owned enterprises, groups of companies, and defense - security enterprises and disclosure of state-owned enterprise information.

In which, regulations on cross-ownership among companies in the group of companies are as follows:

- The capital contribution, share purchase of another enterprise, or the establishment of an enterprise according to the provisions of Clause 3, Article 195 of the Law on Enterprises includes the following cases:

+ Jointly contribute capital to establish a new business.

+ Jointly buy capital contribution, share purchase of an established enterprise.

+ Jointly receive shares and capital contributions from members and shareholders of the established enterprise.

- Enterprises owning at least 65% of the State capital under Clause 3, Article 195 of the Law on Enterprises are state-owned enterprises that hold 65% or more of the charter capital or the total number of shares with voting rights or more.

2. Decision 10/2021/QD-TTg regulating criteria for identifying high-tech enterprises issued by the Prime Minister

On March 16, 2021, the Prime Minister issued Decision 10/2021/QD-TTg on criteria for identifying high-tech enterprises. Accordingly, a high-tech enterprise is an enterprise that meets the criteria in Article 75 of the 2014 Vietnam Investment Law and the following criteria:

- Revenue from high-tech products must reach at least 70% of the total annual net revenue of the enterprise.

- The ratio of total expenditure on research and development of the enterprise to the value of total net revenue minus annual input value:

+ Enterprises with total capital of 6,000 billion VND and total employees of 3,000 people or more must reach at least 0.5%;

+ Enterprises that do not fall into the above cases with total capital of 100 billion VND and the total number of employees from 200 people or more must reach at least 1%;

+ The remaining enterprise must reach at least 2%.

- Percentage of employees directly engaged in research and development with professional qualifications from a college or higher of the enterprise to the total number of employees:

+ Enterprises with total capital of 6,000 billion VND and the total number of employees from 3,000 people or more must reach at least 1%;

+ Enterprises not belonging to the above schools, with total capital of 100 billion VND and the total number of employees from 200 people or more must reach at least 2.5%;

+ For the remaining business, it must reach at least 5%.

Thus, compared with Decision 19/2015/QD-TTg, Decision 10/2021/QD-TTg (effective April 30, 2021) divided enterprises into 3 groups instead of 2 groups to regulate the specific criteria.

3. Circular 10/2020/TT-BKHCN guiding Decree 132/2008/ND-CP and 74/2018/ND-CP on the use of codes and barcodes issued by the Vietnam Ministry of Science and Technology

Accordingly, a dossier of registration for a new Certificate of the right to use codes and barcodes for organizations and individuals to submit an online application on the National Public Service Portal or the Public Service Portal of the Vietnam Ministry of Science and Technology includes:

+ Electronic form to declare registration information with digital signature;

The contents in the electronic form comply with Form No. 12 of the Appendix enclosed herewith Decree 74/2018/ND-CP.

+ An electronic copy of the business registration certificate or the investment registration certificate or the establishment decision or an equivalent document.

For the certificate of the right to use codes and barcodes issued before July 1, 2018, the organization or individual completes the dossier and registers for the re-issue of the right to use codes and barcodes in accordance with Circular 10 before the date of April 1, 2024.

From April 1, 2024, if an organization or individual does not register and is re-granted the right to use codes and barcodes under Circular 10, the issued code and barcode use right certificate will expire.

4. Decree 49/2021/ND-CP amending Decree 100/2015/ND-P on development and management of social housing

On April 1, 2021, the Vietnam Government issued Decree 49/2021/ND-CP amending and supplementing Decree 100/2015 on the development and management of social housing. Accordingly, the principles of consideration and approval for subjects eligible to buy, rent, or lease-purchase social housing for construction investment under the project are as follows:

- If the total number of valid documents for purchase, lease, or lease-purchase is equal to or less than the total number of apartments announced by the investor (PO) for each type of product, the selection of apartments will be in accordance with the agreement between Investor and customers;

- If the total number of valid dossiers for purchase, lease, or lease-purchase registration is more than the total number of apartments announced by the PO for each type of product, the approval and selection shall be made by the draw form organized by the Investor;

(Decree 49/2021 has removed the regulations on the consideration and selection of subjects in the form of scoring specified in Decree 100).

+ If the project has an object that satisfies the dossier conditions according to Article 22 of Decree 100/2015 who is a person with meritorious service to the revolution or a disabled person, to be given priority in buying, renting or renting-purchase social housing without having to the lottery.

+ The list of the above groups of objects is sorted according to the time of submission and the apartments for these objects are arranged in the order of the priority list until the end, the rest of the objects are loaded. visit.

5. Decree 18/2021/ND-CP amending Decree 134/2016/ND-CP guiding the Vietnam Law on Import Tax and Export Tax

Decree 18/2021/ND-CP supplements regulations on cases of not collecting import and export tax (import and export) as follows:

- Do not collect tax on goods eligible for a tax refund but not yet paid tax as prescribed:

+ Tax refund for exported goods that must be re-imported;

+ Tax refund for imported goods that must be re-exported;

+ Tax refund for machinery, equipment, tools, and means of transport of organizations and individuals permitted to be temporarily imported for re-export;

+ Tax refund for goods imported for production and business but for which products have been exported;

+ Tax refund for taxpayers that have paid import-export tax but have no import-export or import-export goods less than those for import-export goods for which tax has been paid; No tax refund for the case with the minimum tax amount.

- Tax shall not be collected for goods not subject to import and export tax.

+ Tax refund for exported goods that must be re-imported;

+ Tax refund for imported goods that must be re-exported.

The taxpayer submits a non-collection of tax documents to the customs authority where the import and export procedures are carried out at the time of customs clearance or after the goods are cleared.

Decree 18/2021/ND-CP takes effect from April 25, 2021, and abolishes Circular 90/2011/TT-BTC, Circular 201/2012/TT-BTC, Circular 81/2013 / TT- BTC, and Circular 116/2013/TT-BTC of the Vietnam Ministry of Finance.

6. Circular 17/2021/TT-BTC of 2021 amending Circular 14/2015/TT-BTC guiding the classification of goods, analysis for classifying goods; analysis for quality inspection, food safety inspection for import, export, and import goods, issued by the Ministry of Finance.

Revised regulations on analytical requirements to classify import and export goods.

The Vietnam Ministry of Finance issued Circular 17/2021/TT-BTC amending and supplementing Circular 14/2015/TT-BTC on classification and analysis for classification; analysis for quality inspection, food safety inspection for imported and exported goods. Accordingly, the dossier of request for analysis to classify goods is amended and supplemented in the direction that the customs office where the analysis of goods is required is responsible for preparing and submitting the analysis request including:

- Each commodity item shall make 01 requests for analysis of imported and exported goods cum a record of sampling of goods (form 05 / PYCPT / 2021 issued together with Circular 17/2021);

- The slip containing the number, date of the document, and the voucher in the customs dossier related to the sample of goods;

- Sample of goods to be analyzed;

- Technical documentation of the goods; in the absence of technical documents, the customs office where the dossier is submitted must clearly state the reason in item 12, form No. 05/PYCPT/2021 (New regulations).

Circular 17/2021/TT-BTC takes effect from 12/4/2021.

7. Decree 50/2021/ND-CP amending Decree 37/2015/ND-CP detailing construction contracts

A new point in the principle of construction contract adjustment from April 1, 2021.

Recently, the Vietnam Government issued Decree 50/2021/ND-CP amending Decree 37/2015/ND-CP on construction contracts. Accordingly, compared with Decree 37/2015, there are some new provisions as follows:

- Clearly stipulating that construction contract adjustments are applied during the extended contract period.

- For contracts based on fixed unit price, the contractual unit price is adjusted in the following cases:

+ When the State changes policies that directly affect the performance of the contract, unless the contracting parties agree otherwise;

+ When the project is adjusted affecting the contract, unless the contracting parties agree otherwise;

+ Force majeure cases as prescribed by law.

- For package contracts, add 2 additional cases to the following contracts:

+ When the State changes policies that directly affect the performance of the contract, unless the contracting parties agree otherwise;

+ When the project is adjusted affecting the contract unless the contracting parties agree otherwise.

See more details in Clause 12, Article 1 of Decree 50/2021/ND-CP (effective from April 1, 2021).

Above, Doanh Tri Law Firm has brought to you the Vietnam Legal News April, 2021. In case you have any questions, do not hesitate to contact us through the following forms:

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