New policies came into effect from Oct 1st, 2015

1. Time reduction in enterprise registration procedure:

Decree 78/2015/NĐ-CP on enterprise registration has just been issued by the Prime Minister of Vietnam. The Decree is to be effective from November 1^st, 2015, which includes several new points.

To be specific, from Nov 1^st, 2015, enterprise registrators or enterprises are required to submit only 01 (one) application form for registering procedure. Registration agency is not allowed to ask for more forms or irrelevant docments that are not listed in the regulation. The time limit for processing the application form is reduced to 03 (three) working days. Before using, changing, cancelling seal sample or changing the number of seals of enterprise, branches, or representative offices, a notification must be sent by the enterprise to registration division for publishing the seal sample on National Business Registration Portal. Notification content includes: Name, code, address of the enterprise, branches or representative offices; the number of seals, sample, and effective time of the seal sample.

Decree 78/2015/NĐ-CP replaces Decree 43/2010/NĐ-CP and Decree 05/2013/NĐ-CP.

2. Procedures reduction for foreign investors:

According to Circular 123/2015/TT-BTC of the Ministry of Finance on guiding foreign investment activities on Vietnam Stock Market, from Oct 1^st, 2015, foreign investors are granted with the trading code within 01 (one) working day, instead of taking from 03 to 05 working days as before.

Foreign investors whose stock trading code is canceled in two-year time from the date of application form, or are under investigation, or are under punishment in financing and banking sector, foreign currency management, and tax for performing violated activities shall not be granted with stock trading code.

Foreign investors providing inappropriate documentation, or failed to deliver it in time shall be suspended from trading up to 06 months. After suspended time, if the investors still could not correct the missing documentation, the trading code shall be canceled.

3. Financial management machenism of SMEs Development Fund.

According to Circular 119/2015/TT-BTC on guiding financial management machenism of SMEs Development Fund:

– The Fund is a non-profit state-owned financial organization, providing financial support to entities defined in Clause 3, Decision 601/QĐ-TTg and performing activities defined in organization’s regulations and operations.

– The Fund is a financial autonomous organization, which is self-responsible for its activities under the laws; capital preservation and development; costs and risks compensation occurred during its operation.

– The Fund is operated under public, transparent, cost-saving, and effective principles based on regulations of current laws and of this Circular.

– The Fund has an independent balance sheet; have the rights to open bank accounts in State Bank of Vietnam or in other commercial banks in Vietnam.

– The Fund is exempt from taxes and other amounts payable to State budget according to current regulations.

4. Work permit issuance to tecnological-scientific specialists procedure:

According to Circular 24/2015/TT-BLĐTBXH on interesting individuals in scientific and technological operations, application form includes:

– Proposal for issuance of work permits of the organization.

– Approval document of the use of technological-scientific specialist for appoval document of the Prime Minister of Vietnam allowing the use of technological-scientific specialists.

– Notaried copy from the original copy of passport or other corresponding documents or valid international travelling permits.

– 02 colored sefl-portrait (dimension: 3cmx4cm, white background, straight facing, bare-headed, and glasses should be noncolor), the portrait must be taken no longer than 6 months from the date of submitting the application form.

Validity duration of the work permit is decided up on request and is consistent with approval document of authorized agency or appoval document of the Prime Minister of Vietnam allowing the use of technological-scientific specialists but is not longer than 02 years.

5. Import tax exemption for immigrated luggagues not exceeding 10 million Dong.

Free-duty luggages (import tax, luxury tax, and value-added tax) of the immigrants are controlled by strict quota and defined in Clause 3, Decision 31/2015/QĐ-TTg as follow:

– Alcohol with ABV from 22% or higher: 1.5 litre.

– Alcohol with ABV under 22%: 2,0 litres.

– Beverages with alcohol, beer: 3.0 litres.

For alcohol, if the volume in the sealed bottle exceeds the quota by no more than 1 litre, the whole bottle shall be duty free. If the exceeded volume is higher than 1 litre, the exceeded volume shall be taxed.

– Cigarette: 200 cigarettes.

– Cigar: 200 cigars.

– Cigarrette thread: 500 gram.

For cigarettes and cigars, immigrants are allowed to carry the defined quota, for the exceeded amount must be temporarily stored in Custom’s storage.

– Personal belongings: quantity and types must be suitable for the traveling purpose.

– Other items (those are not on the lists of goods the import of which is prohibited or temporarily suspended or of conditional import): total value must no exceed 10.000.000 Dong.

6. Custome delaration required for carrying over US $5,000 through border gate.

According to Circular 120/2015/TT-BTC, people who enter or leave Vietnam must filled the custom application form before entering or leaving if:

– Having registrated baggage before or after the trip;

– Having temporary import, re-export goods or temporary export, re-import good;

– Carry products subject to tax, including more than 1.5 liters of liquor of above 22% proof, or more than 2 liters of liquor below 22 % proof, or 3 liters of beer, more than 200 cigarettes; more than 100 cigars; more than 500 gram of tobacco thread; or other items with a total value of over VND 10.000.000.

– Bringing cash, VND in cash, precious metals, precious gemstones, negotiable instruments, gold upon exit and entry must take customs declaration as prescribed in Circular No. 35/2013/TT-NHNN dated Dec 31, 2013 and Circular No. 11/2014/TT-NHNN dated March 28, 2014 of the State Bank of Vietnam.

– The entry person has demand for customs confirmation to foreign currency cash valued at or below US$ 5,000 (or equivalent in other currencies).

7. Issuance and use of International Driving Permit.

Circular 29/2015/TT-BGTVT defines the person to be granted with International Driving Permit (IDP), validity of the IDP and type of vehicles to be permitted as follow:

– The person granted with IDP is Vietnamese or foreigner, who has residential permit in Vietnam, and has already been granted with a valid PET driving licence in Vietnam.

– IDP valids for no more than 3 years, since the date of issuance and must be consistent with the validity of national driving licence.

– Type of vehicles permitted in IDP must be consistent with Vietnam national driving licence as defined in Appendix II of this Circular.

8. Adminnistrative violations in vocational training to be fined up to VND 150 million.

Decree 79/2015/NĐ-CP of the Government defines the highest fine in vocational training activities to individuals: VND 75 million, to organizations: VND 150 million. The Decree shall be effective from November 1^st, 2015.

The Decree defines the specific fine to specific violations. Thus, fine of VND 5-10 million is applied to following violations: Erasing, deleting, editing or changing the content of establishing decision, establishing permission; fraud, counterfeiting papers, documents to establish, or to give permission to establish vocational training centers; vocational education accreditation and quality assuarance organization. Counterfeiting papers or documents to be detected in vocational training registration form shall be fined as follow: from VND 5-10 million to vocational education center; from VND 10-20 million to vocational training school; from VND 20-30 million to college. Violations in admission or training activities without registrative certificate of vocational education acitivities issued by authorized state agency shall be fined: from VND 40-60 million to vocational education center; from VND 60-80 million to vocational training school; from VND 80-100 million to college…

9. Abrogation of 11 papers in medical insurance and social insurance:

On August 26^th, 2015, Vietnam Social Insurance issued Decision 919/QĐ-BHXH on amending and supplementing a number of articles of Decision 01/QĐ-BHXH; Decision 1399/QĐ-BHXH; Decision 488/QĐ-BHXH.

Thus, abrogate 11 papers for enjoying medical insurance, social insurance:

– Request for maternity leave (Form 11A-HSB; 11B-HSB).

– Request for paying examination fee, treatment fee of medical insurance (Form 06/BHYT).

– Request for receiving retroactive payment (Form 17-CBH).

– Confirmation of study of school (Form 22-CBH).

– Request for advance payment of funeral fee (Form 30-CBH).

– Authorized decision of being sent to study or work abroad

– Authorized letter for submiting direct payment document for examination fee, treatment fee of medical insurance.

– Request for confirmation of signature (Form 21-CBH).

– Confirmation list of people who receive monthly social insurance via ATM (Form 24a-CBH).

– Confirmation letter of the person who receives monthly social insurance via ATM (Form 24a-CBH).

10. Piloting self-declaration of goods origins in ASEAN

From October 5^th 2015, mechants are allowed to self-declare the origin of exported good on commercial invoice instead of certificate of origins form D (C/O form D). Merchants joining the pilot program must be the manufacturer and the exporter of the products they made; performed no violation in origin regulation in the last 2 years since the date of applying; trade turn-over in ASEAN issued with C/O from D in the former year reaches at least US $10 million, and having trained staff who are granted with certificate or confirmation of goods origins by assigned units of Ministry of Industry and Trade.

After being selected to be in the pilot program, merchants can still request for certificate of origin form D as usual. Circular 28/2015/TT-BCT of the Ministry of Industry and Trade regulating the pilot program for self declaration of certificate of origins defined in ASEAN Trade in Good Agreement, which came into effective in October 5^th 2015.

11. Only 1 automobile and 1 motorbike are allowed to be imported as a gift.

From October 26^th 2015, each organization or individual in Vietnam is allowed to import only 1 automobile and 1 motorbike as a gift from foreign organization or individual every year.

For imported or temporary imported motorbike, it must be brand new, meets national technical standards on safety and environmental protection; the type of the bike must be on the list allowed for registration and operation in Vietnam, except for non-registering imported, temporary imported bike which is use for exhibition, introduction, marketing, researching and testing purposes.

Circular 143/2015/TT-BTC of the Ministry of Finance on regulation of custom procedures and management of motorbike and automobile allowed being imported, temporary imported without commercial purposes came into effective from October 26^th 2015.