Policies in effect as of November, 2016 (Part 1)

1. Support to planters

Organizations, households, individuals and communities planting forest on bare land or hills which is planned as production forests shall be entitled a support of VND 8 million per hectare in case of planting large wood species (exploited after 10 years of age), multi-purpose trees, native tree or a support of VND 5 million per ha in case of planting small wood species (exploited before 10 years of age) and scattered trees (with density of 1000 trees per hectare); and  an additional support of VND 2 million per hectare for border communes, such as: Son Lai, Lai Chau, Dien Bien and  provinces in the Central Highlands of Vietnam.

Enterprises, communities, households, group of households shall be entitled to forestry extension support of VND 500,000 per hectare for 4 years (1 years of planting and 3 years of caring); support of VND 300,000 per hectare for reforestation survey, design and contracting; and support of 70% of sustainable forest certification fee, not exceeding VND 300,000 per hectare with minimum area of 100 hectares or more …

Such new point is defined in the Decision No. 38/2016/QD-TTg on the promulgation of forest protection and development, and support for investment in infrastructure construction and assignment of public-utility tasks to agricultural and forestry companies enterprises. It takes effect as of 01 November 2016.

2. No exemption or reduction of land rent

Decree No. 135/2016/ND-CP of Vietnam’s Government amending and supplementing a number of Decrees on collection of land use fee, and land rent and water surface rent shall come into force from 15 November 2016.

Accordingly, as of 15 November 2016, no exemption or reduction of land use fee shall be applicable to winners of land use right auction even though they are eligible for exemption or reduction of land use fee.

Exemption and reduction of land use fee for subjects under housing improvement policies shall be based on relevant policies and shall not be applicable in case of land use right auction.

Additionally, in case value of the area of a parcel of land is from VND 30 billion and over for central-affiliated cities; from VND 10 billion and over for mountainous provinces and elevated mountainous regions; from VND 20 billion and over for the remaining regions, the starting price for land use right auction shall be determined by the Department of Natural Resources and Environment.

3. Social house selling subject to a charge of 50% of land use fee

Since 15 November 2016, the seller must pay to the state budget an amount of 50% of land use fee of such apartment in case of selling condominium apartment as social house; or an amount of 100% of land use fee in case of selling low-rise housing as social house.

The land use fee, land rent exemption shall be applicable for the entire land area allocated or leased by the State to construct social houses, including land for business and trading approved by the competent authorities within the entire social housing area. The land use fee, land rent exemption shall be also applicable for the entire social housing area with 20% land fund of commercial housing development projects, urban development projects, including 20% land area for business and trading approved by the competent authorities within the entire social housing area …

The above content is mentioned in Circular No. 139/2016/TT-BTC issued by the Ministry of Finance on the exemption of land use fee and land rental, refund or deduction into financial obligation of investor in building social houses and determination method of payable land use fee if the
buyers and the renters resell social house. The Circular takes effect as of 15 November 2016.

4. Energy consumption norms for beer production industry

As from 01 November 2016, the Circular No.19/2016/TT-BCT takes effect on energy consumption norms for beer and beverage production industry in the period to the end of 2020 and the period from 2021 to the end of 2025.

In particular, by the end of 2020, the energy consumption for beer production industry shall be 306 MJ/hl in case of the capacity of less than 20 million liters; 215 MJ/hl in case of the capacity of 20 million liters to 100 million liters; and 140 MJ/hl in case of the capacity of 100 million liters and more. The energy consumption shall be 55 MJ/hl in case of producing carbonated beverage or either carbonated or non carbonated beverage, or 111 MJ/hl in case of producing only non carbonated beverage (except for pure water and mineral water).

In the period from 2021 to the end of 2025, the energy consumption for beer production industry shall be 286 MJ/hl in case of the capacity of less than 20 million liters; 196 MJ/hl in case of the capacity of 20 million liters to 100 million liters; and 129 MJ/hl in case of the capacity of 100 million liters and more; and 107 MJ/hl  in case of producing non carbonated beverage;  or 52 MJ/hl in case of in case of producing carbonated beverage or either carbonated or non carbonated beverage.

Any producer that fail to meet energy consumption norms as prescribed and fail to propose feasible plans to ensure the norms as above-scheduled shall be subject to penalties according to current regulations.

5. Application for electronic certificates of origin under the ASEAN Trade in Goods Agreement

According to Circular No. 22/2016/TT-BCT pertaining to the use of electronic certificate of origin (C/O) under the ASEAN Trade in Goods Agreement (ATIGA), electronic C/Os will be created based on the e-ATIGA Form D Process Specification and Message Implementation Guideline and can be transferred online through the ASEAN single window system.

An electronic C/O will have the same legal effect as a physical, paper C/O. It can be applied, granted and used as a paper C/O.

The checks on electronic C/O applications will be similar to those on the paper ones. C/O application shall be accepted and verified as being fully and authentically stated under electronic forms.

In term of archiving and preserving C/O data: Related parties, including producers, exporters and organizations that grant C/O, have to keep the C/O data for five years from issuing date.

The Circular takes effect as from 15 November 2016 and replaces the Circular No. 21/2010/TT-BCT and No. 42/2014/TT-BCT.