Feb. 27 – Vietnam has approved a plan to boost its economy by focusing on restructuring public investments, banks and state-owned enterprises (SOEs). Furthermore, in an attempt to generate sustainable growth by 2020, attention will also be placed on strictly controlling inflation.
As he signed a 29-page directive that took effect on February 19, Prime Minister Nguyen Tan Dung announced that the goal was to create and maintain prudent monetary policies that would tame inflation and ensure “reasonable growth”. Vietnam also plans to restructure its financial markets and consolidate SOEs and investments.
The directive further elaborates that Vietnam will tighten its fiscal policies, promote exports and control imports while boosting the domestic production of consumer goods.
Jan. 28 – The Vietnamese Ministry of Finance issued Circular No. 213/2012/TT-BTC last week in a move to increase the participation of foreign investors in Vietnam’s securities market. The Circular also includes provisions on disclosure requirements for foreign investors. It will take effect on February 15 and will replace Decision No. 121/2008/QD-BTC.
Under the Circular, it will be easier for foreign investors to open securities trading accounts. Furthermore individual foreign investors will no longer need to submit judicial background records; only a notarized copy of a valid passport or other official identification documents will be necessary. Documents obtained in the investor’s country of origin may be notarized and certified under foreign law and given consular certification under Vietnamese law.
By Marco Azzaro
May 7 – Vietnam’s government has made some important changes to the country’s tax regulations over the first four months of 2012, and has issued Circular 06, which took effect from March 1, providing a detailed guidance on some key changes to VAT rules.
The government has underlined that VAT is enforceable on interest from loan agreements between non-credit institutions. Moreover, a schedule of cases was made in which input VAT of expenses paid by authorized parties can be claimed by authorizing parties and typical cases which constitute payment via banking channels.
By Nguyen Huyen My
Apr. 20 – On April 10, 2012, the State Bank of Vietnam promulgated Circular 09/2012/TT-NHNN stipulating the payment methods for disbursing loans of credit institutions and foreign bank branches (hereafter collectively called “banks”) towards their customers. According to the Circular, banks will not use cash as a method for disbursing loans from June 1, 2012.
This regulation was issued in order to enhance non-cash payments and control the customers’ use of loans in line with the credit agreement.
By Mattia Capsoni
Feb. 24 – The Vietnamese Government issued Decree 05/2012/ND-CP to change and set up new rules concerning mortgages of land use rights and assets lying on land. More specifically, this kind of contract was to be approved by the commune-level People’s Committee; but according to the Decree, from April 2012 this power will be passed on to the district-level authorities.
By Lorenzo Martelli
Dec. 14 – Increases in the ownership ratios that foreign strategic partners can hold at Vietnamese joint stock banks, encouragement for the merger of weak banks, and not increasing the chartered capital are the main points of the European Chamber of Commerce (EuroCham)’s proposal when talking about bank restructuring.
Decree No. 69/2007/ND-CP enacted by the Prime Minister in 2007 decided to allow a strategic foreign investor to purchase from between 15 percent to 20 percent stake in a domestic bank, which, however, must not exceed 30 percent of the chartered capital of that bank.
By Lorenzo Martelli
Oct. 28 – Good news for labor-intensive firms in Vietnam. Decision 54/2011/QD-TT inked by the Prime Minister last week agrees to extend corporate income tax payments in 2011 for labor-intensive companies as well as “co-operatives lawfully established and operating which have revenue from the production or processing of agricultural, wood, seafood, garment, footwear, or electronic products, or from development, construction, and installation of infrastructure works.”
In order to benefit from the tax payment deferral, labor-intensive enterprises are required to employ at least 300 workers, not counting workers with contracts of three months or less. The right to delay payment for 2011 corporate income taxes for one year takes effect from the due date this year.