By Francesca Grassi

Sept. 27 – On October 5, 2011, new Decree no.70/2011/ND-CP on region-based minimum wage levels will come into force in Vietnam bringing in eloquent changes and a step forward from previous Decree no.107/2010/ND-CP and Decree no.108/2010/ND-CP.

The regulation is effectively structured in order to provide companies with exact information about the applicability and scope of the Decree, the amended minimum wage levels, and their application. Continue Reading

By Stefano Miggiano

Sept. 22 – On February 24, 2011, the Vietnamese government issued Decision No.12/2011/QT-TTg pursuant to the Prime Minister’s Decision No. 49 10/QT-TTg of July 19, 2010, approving the list of prioritized high technologies. The Decision took effect on April 15, 2011.

The new regulations aspire to encourage the development of the following industries: manufacturing mechanical engineering, electronics-informatics, manufacturing and assembly of automobiles, textile and garment, leather-footwear and high-tech industry development. Continue Reading

Sept. 19 – Prime Minister Nguyen Tan Dung has decided to simplify procedures concerning exporting, importing, and transiting goods and means of transport in the period 2011- 2014 by implementing the “National Single Window Customs Mechanism” pilot program.

The new system will allow all stakeholders involved in importation and exportation to submit or send standardized information and documents to the single processing unit. New regulations should significantly shorten the time needed for required formalities. Continue Reading

Sept. 15 – According to the information provided by the Ministry of Finance (MoF), domestic merchants providing petrol to manufacturers at open economic and cross-border industrial zones will be subject to temporary import and re-export laws.

All fuel-trading activities between traders and producers will be to operate in accordance with General Department of Customs procedures. Continue Reading

By Francesca Grassi

Sept. 14 – The State Bank of Vietnam (SBV) has recently elaborated a (third) “Draft Decree” regulating foreign shares in Vietnamese commercial banks: if the new guidelines receive the placet of the government, Decree 69/07 ND-CP (dated April 20, 2007) on foreign investors’ acquisition of shares in Vietnamese institutions will be superseded and current legislation on credit institutions and on enterprises will inevitably be shattered.

In particular, the SBV Draft Decree introduces debatable core “novelties” affecting regulations on:

• Mandatory authorization of the SBV Governor in order to purchase a larger quantity of shares by foreign owners; and
• A three-year lock-up rule for foreign share transfers. Continue Reading

By Francesca Grassi

Sept. 7 – On June 17 of this year, the Vietnamese government issued Decree n.46/2011/ND-CP (effective from August 1, 2011) amending and supplementing Decree n.34/2008/ND-CP dated March 25, 2008 on the employment and administration of foreigners working in Vietnam.

The new legislation aims at improving the ineffective implementation of foreign labor regulations with strong regard to the working permit requisite.

In fact, the newly called “expats” (foreigners) are entitled to work in Vietnam if they meet all profile requirements listed in Article 3 paragraphs 1, 2, 3 and 4. Namely, the individual is a minimum 18 years of age; in good health; holds a manager, director or expert position; and has no criminal record for national security offense. Continue Reading

By Bich Lien

Aug. 25 – On August 4, 2011, Vietnam’s Ministry of Finance promulgated Circular No.113/2011/TT-BTC amending and supplementing the guidance of the PIT Law mentioned in the Circular No.62/2009/TT-BTC dated March 27, 2009, Circular No.02/2010/TT-BTC dated January 11, 2010, and Circular No.12/2011/TT-BTC dated January 26, 2011.

Accordingly, organizations and individuals who pay commission to goods sale agents, salaries, wages, remuneration or other sums of money to individuals performing services with total income of VND1,000,000 or more each time shall deduct PIT before paying incomes to these individuals (in previous regulations, performing services with total income of VND 500,000 or more each time will be subject to such PIT deductions) as per below tariff: Continue Reading

Aug. 24 – According to the Ministry of Planning and Investment (MPI), the government has developed a new strategy on attracting foreign direct investment (FDI). Instead of just attracting a huge number of various investors, the new strategy is to tie on quality investors. The MPI aims to “create a breakthrough in the number of FDI projects and the investment quality.” So the focus will be on the quality investors and sustainability. Continue Reading

Aug. 22 – In the first seven months of this year, Vietnam, with 43 cities and provinces, attracted 651 additional foreign direct investment projects.

The top cities and provinces are:

Hai Duong (northern province)

• Total capital of US$2.47 billion = 32.4 percent of the county’s total registered foreign capital Continue Reading

Aug. 17 – Continuing growth in bilateral trade between India and Vietnam is reinforcing the importance of these two emerging economies to each other.

In 2010, bilateral trade grew 34 percent year-on-year to US$2.06 billion, with a similar pattern emerging in 2011. For the first half of 2011, bilateral trade came to US$1.8 billion, a 39.2 percent increase over the same period in 2010.

India’s involvement in trade with Vietnam has grown exponentially in the last decade as evidenced, most recently, by a more than 136 percent increase in exports from Vietnam to India in 2010 over 2009. Key Vietnamese exports include steel, coffee, rubber and electronic items. Continue Reading