Legal and Regulatory

New Decree Detailing Telecom Law of Vietnam

Apr. 15 – Decree No.25/2011/ND-CP of the government which was issued on April 6, 2011 provides enterprises, including domestic and foreign owned ones, some new regulations in the lucrative field of telecom. The decree stipulates details and specifies new guidelines for the execution of several articles of Telecom Law relating to ratio of ownership, foreign investment, commercial right fees and authorized capital.

Ratio ownership limitation causes impact on the two large mobile networks in Vietnam
Pursuant to this new decree, a prominent new regulation rules that an organization or individual who owned over 20 percent of charter capital or stake in one telecom company will not be allowed to hold more than 20 percent of charter capital or stake in other telecom firms operating in the same services in telecom service market. Continue reading →

New CIT Payment Deferral Incentives for SMEs

Apr. 14 – A decision concerning small and medium-sized enterprises’ (SMEs’) corporate income tax was published, and thereby became effective, on April 6, 2011. This decision from the Vietnamese prime minister allows SMEs to defer their CIT settlements of one year. This new incentive should help the SMEs to overcome their hardships and also stimulate economic development in 2011.

The enterprises entitled to this extension are the SMEs defined in Decree 56/2009/ND-CP: according to the size of their total capital or to their average annual number of laborers, those criteria requirements varying depending on the sectors of activity of the company. In any case, a SME’s capital and number of laborers cannot be higher than VND100 billion or 300 persons (for companies in the trade and services sector, those criteria’s maxima are VND50 billion and 100 persons). Continue reading →

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Vietnam’s MoF Targets FIEs in New Tax Inspection Plan

Apr. 13 – Vietnam’s Ministry of Finance has set up an important tax inspection plan for the year 2011. The objective of the plan is to ensure that enterprises do not commit any tax law violations in Vietnam and might allow to collect tax arrears and to uncover transfer pricing cases.

These inspections will focus on 82 enterprises across Vietnam, including 19 in the capital and 21 in Ho Chi Minh City. Among others, many foreign invested enterprises (FIEs) will receive visits from inspection teams. Continue reading →

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Higher Fuel Prices Proposed to Combat Smuggling

Mar. 24 – Oil companies and authorities in the southern provinces have recommended that fuel prices be raised in Vietnam to combat smuggling into neighboring Cambodia, where fuel is much more expensive.

The Ministry of Industry and Trade said A92 gasoline in Vietnam is VND19,300 per liter, while the price in Cambodia hovers around VND24,000. Continue reading →

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New Changes in Vietnam May Affect Foreign Investors

New rules outline ratio of charter capital in SOEs

Mar. 23 – In newly-signed decision 14/2011/QDTTg, Vietnam’s government will limit its holdings of 50 percent of the charter capital of power production companies that are bigger than 500 megawatts.

The state will continue to hold 100 percent of the charter capital in businesses involved in defense and strategic industries, as well as in infrastructure systems such as railways, airports, and important seaports and television stations. Continue reading →

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Vietnam to Cut Import Duties to 15 Percent

Mar. 15 – Vietnam’s Finance Ministry plans to cut import duties to 15 percent in April. Currently, the tariff on refined sugar is 40 percent, while raw sugar is taxed at 25 percent.

The cuts will help keep prices stable, according to statements made by the finance ministry. However, the Ministry of Industry has set import quotas at 250,000 tons total for both raw and refined sugar, compared to the 300,000 tons of sugar that was allowed to be imported in 2010. Both import quotas and import duties exert the same upward pressure on the price of imports. Continue reading →

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Vietnam’s MOF to Update Finance and Real Estate Regulatory Frameworks

Feb. 28 – Vietnam’s finance and real estate regulatory frameworks are set to undergo changes in the coming months, according to the Ministry of Finance.

New amendments to securities regulations to come into effect in July will allow companies and investors to negotiate investments in terms of cash or assets, contingent upon the mutual approval of contracts and price agreements by both parties. Continue reading →

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Vietnam to Raise Power Prices by 15%

Feb. 22 – Vietnam recently announced that the government has decided to raise the country’s power price by a record 15.3 percent, up from the current VND1,077 per kw/h to VND1,241 per kw/h, starting March 1, 2011.

The government said it had made the price hike as small as possible after considering both the cost factor in production and the impact on people’s living standards. Although the price growth rate this time almost doubled compared to last year’s 8.9 percent, it did not meet the 18 percent to 30.3 percent increase goal the Ministry of Industry and Trade (MIT) set. Continue reading →

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Updated Rules for Small Business Loans to Take Effect February 25

Feb. 17 – The Prime Minister issued decision 03-2011-QD-TTg on January 10, regulating loan guarantees for small and medium-sized enterprises (SMEs). The decision attempts to standardize procedures for the Vietnam Development Bank to issue guarantees for commercial bank loans to SMEs. Continue reading →

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Vietnam Amends VAT Regulations for SMEs

Jan. 25 – Vietnam’s government recently approved a proposal to extend the declaration time of value added tax (VAT) for small and medium enterprises (SMEs) and family businesses, removing cumbersome elements of the country’s tax code for emerging entrepreneurs.

Under Resolution 68/NQ-CP, which takes effect this month, SMEs will only need to declare VAT every quarter. Family-run businesses will need to declare their VAT dues biannually. Previously, companies of both categories had to declare VAT every month. Continue reading →

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