New regulations of Vietnam in effect as of September 2016

1. Guidance on bidding supervision, monitoring and inspection

On 22 July 2016, the Ministry of Planning and Investment issued Circular No.10/2016/TT-BKH, providing detailed provisions on the supervision, monitoring and inspection of contractor selection, such as:

– Legal bases for bidding documents, request for proposals of investors, procuring entities; compliance with bidding documents, request for proposals in terms of format and contents;

– Time limits in selection of bidders, issuance of bidding documents, request for proposals; deadline for bid closing, bid opening; receipt of bids, proposals;

– Quality of evaluation of bids, proposals, the compliance with forms of evaluation of bids, proposals in terms of format and contents; contents of contract;

– Quality of contractor selection result appraisal, compliance with forms of appraisal  of bidder selection results in terms of format and contents, adequacy of documents on results of bidder selection for approval;

– Process of contract finalization, contents of signed contract and compliance with legal bases related to conclusion and execution of contract.

Circular No. 10/2016/TT-BKHDT comes into force as of 09 September 2016 and replaces Circular No. 01/2011/TT-BKHĐT.

2. Addition of subjects of import and export duties

The  law on import and export duties of 2016 regulates additional taxable objects including: In-country exports and imports, and goods imported and exported by enterprises that exercise their right to export, import or distribute.

Taxable objects formerly defined only included:

– Goods exported and imported through border checkpoints of Vietnam.

– Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.

The law shall come into force as of September 01, 2016 and abrogate the 2005’s law on import and export duties.

3. Export tariff exemption for friendly-environmental products

On 09August 2016, the Ministry of Finance issued Circular No.128/2016/TT-BTC regarding export tariff exemption for friendly-environmental products and the products from recycling and waste treatment as stipulated in Decree No.19/2015/ND-CP.

Accordingly, the notable regulations are as follows:

–The products that are in the export tariff schedule of Decree No.19/2015/ND-CP and have Vietnam’s green label certificate are exempt from export tariff;

– In case where an export item is not specifically named in the export tariff schedule of Decree No.19/2015/ND-CP, its product code shall be declared corresponds to the number of item in the preferential import and export tariff specified in Circular No. 182/2015/TT-BTC and recorded export tax rate is 0% (zero percent)”.

– The case in which the paid export tariff exceeds the exemption amount shall be handled in accordance with Circular No. 38/2015/TT-BTC dated 25 March 2015.

– Details of products from recycling and waste treatment which is subject to the 50% deduction of export tariff as stipulated in Article 3 of Circular No.128/2016/TT-BTC

Circular No. 128/2016/TT-BTC takes into effect as from 23 September 2016.

4. Inspection and supervision of the projects on inland waterway traffic safety

On 30 June 2016, the Ministry of Transport issued Circular No.15/2016/TT-BGTVT regulating on inland waterway management.

Accordingly, the inspection and solving of the inland waterway traffic safety (IWTS) projects which are under construction or exploited is performed as follows:

– Project management entities and/or individuals are obliged to inspect and solve the projects and works affecting IWTS upon detection or as per requested by competent authorities.

– In case detecting any dangerous projects or works on IWTS, competent authorities shall request project management entities and/or individuals to give safety measures or to suspend exploitation for repair and remedy.

– When discovering projects and works affecting IWTS, the organization and individual must immediately report to and coordinate with competent authorities for timely solving.

– For the existing projects without signal system or with incomplete, unqualified signal system, the project owners must immediately remedy it.

The Circular No.15/2016/TT-BGTVT takes effect as from 15 September 2016.

5. The procedures for issuing, amending and revoking investment and enterprise certificates

The Ministry of Planning and Investment issued Circular No.06/2016/TT-BKH dated 28 June 2016 guiding the implementation of Decree No.15/2015/ND-CP. Accordingly, the application file for investment certificate includes:

+ Application for investment certificate;

+ Investment agreement, the drafts of project contract and other related contracts (if any);

+ Valid copies of the following documents: decision on project approval and feasibility study report; written approval for State-owned projects; written approval of investor selection results;

+ Joint venture contract and the draft of company charter (if any);

The Ministry of Planning and Investment and the Department of Planning and Investment shall receive the application for investment register.

The procedures for issuing, amending and revoking investment certificate; project contract termination; establishment, management and operation of companies are also specified in this Circular.

The Circular No.06/2016/TT-BKH takes effect as for 20 September 2016.