Vietnam Regualtory Brief: Real Estate Trading, Pending Power Market Compliance, and Environmental Tax Cuts
New Conditions for Establishment of Real Estate Trading Floors
The government recently issued new requirements for organizations and individuals that wish to establish real estate trading floors. These conditions, issued under government circular 11/2015/TT-BXD, will be applicable from 16 February.
The circular states that individuals and organizations that wish to establish real estate trading floors need to comply with the following:
- The trading floors should have a minimum of two real estate brokers that have a practicing certificate.
- The management and administration of the corporation should have a practicing certificate for real estate brokerage.
- The firm must reflect a stable organization name and address for a minimum of 12 months. In the event of any change, the company must notify the Department of Building as well as customers.
- The trading floor must have a minimum area of 50 square meters.
Real estate corporations should ensure regulatory compliance with the new conditions. Corporations that ensure such compliance mitigate the legal and reputational risks that non-compliance entail.
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Government Set to Issue New Rules for the Power Market
Hoang Quoc Vuong, Deputy Minister of Industry and Trade, recently said that new laws would be issued for the power market in the second quarter of 2017. These laws will be applicable to the wholesale power market and operational by 2019. The Ministry of Industry and Trade has delegated the task of designing regulations to the Electricity Regulatory Authority of Viet Nam (ERAV).
ERAV has compiled the first draft of prospective regulations which include regulations related to the price offerings and calculations. In addition, the draft also proposed news laws, which will mandate power companies to publish necessary information.
While yet to be passed or implemented, drafts of new rules are good a indicator to track regarding regulations that will be applicable on the power market in the coming years. Industry analysts state that companies planning to invest in the power sector in the coming years stand to gain by tracking such regulations.
Tax Cuts Announced for Select Environmental Products
The Ministry of Finance recently announced tax cuts for some environmental products issued under Circular 05/2016 / TT-BTC. These changes will see change in the import duty rates levied on specified preferential environmental goods.
All types of water heating equipment, machines, and equipment for filtering or purifying water will now be charged a 5 percent import duty. Previously, the importation of these goods was subject to a dutiable rate of 10 percent. The changes will be effective from 27 February.
A few other goods will also enjoy similar cuts in tariff duty rates. The comprehensive details of all changes are available in the Ministry of Finance circular. Importers of the specified products welcomed the reduced tax rates as it implies a lower cost of operation for them.
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