vietnam

Rules of Origin under EU - Vietnam Free Trade Agreement - July 2020 Update

Quy tắc xuất xứ hàng hóa trong Hiệp định thương mại tự do Việt Nam và Liên minh Châu Âu

On 15 June, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT setting out rules of origin under the EU - Vietnam Free Trade Agreement. Circular 11 set out the criteria for originating products under the EVFTA, Certificate of Origin Form EUR.1 as well as guidance on product specific rules, cumulation of origin, application and inspection of origin of goods.

RHTLaw Vietnam July 2020 Legal Updates: Amended Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; New Law on Tax Administration

Law 51/2019/QH14 on Entry, Exit, Transit and Residence of Foreigners in Vietnam; Law 38/2019/QH14 dated 13 June 2019 on Tax Administration: 1) Law No. 51/2019/QH14 provides for following remarkable updates on requirements relating to visas for foreigners, 2) Law No. 38/2019/QH14 shall replace Law No. 78/2006/QH11 (and its amendments) from 1 July 2020 and gives effect to notable amendments.

Is joint chairmanship in a joint stock company (JSC) allowed under Vietnamese law?

Đồng Chủ Tịch Trong Một Công Ty Cổ Phần (CTCP) Có Được Cho Phép Theo Pháp Luật Việt Nam?

New Criteria Of Anti-Competitive Agreements In Vietnam Under The Competition Law 2018

Tiêu Chí Mới Của Thỏa Thuận Hạn Chế Cạnh Tranh Tại Việt Nam Theo Luật Cạnh Tranh 2018

Governing law of an arbitration agreement in the absence of an express choice in Vietnam

Pháp luật điều chỉnh thỏa thuận trọng tài trong trường hợp không được lựa chọn rõ ràng tại Việt Nam

Issuance of Decree No.68/2020/ND-CP to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP regarding interest expenses of enterprises engaging in transactions with related parties

Quy định về Nghị định 68/2020/NĐ-CP mới ban hành sửa đổi, bổ sung Khoản 3 Điều 8 Nghị định 20/2017/NĐ-CP quy định về chi phí lãi vay đối với các doanh nghiệp có giao dịch liên kết

The Vietnamese Government has recently issued the Decree No. 68/2020/ND-CP in order to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP with regards to the deductibility of interest expenses for calculation of Corporate Income Tax. Decree 68/2020/ND-CP will take effective from tax year 2019 onward.

Letters of Credit (L/C) is subject to Value Added Tax (“VAT”)

Dịch vụ thư tín dụng (L/C) chịu thuế Giá Trị Gia Tăng (“GTGT”)

On 22 April 2020, the General Department of Taxation (“GDT”) issued Official Letter No. 1606/TCT-DNL to provincial tax departments confirming that the letter of credit service is subject to VAT according to the Law on VAT and the Law on Credit Institution.

Update on Vietnam Social Insurance

The Government issued Decree 58/2020/ND-CP on 27 May 2020 guiding employer's contribution to the Social Insurance Fund for occupational diseases and accident. Decree 58 comes into effect on 15 July 2020.

Submission of year-end customs finalization reports

Thời hạn nộp báo cáo quyết toán hải quan

Companies which engage in export production, toll manufacturing activities, and Export Processing Enterprises are required to submit annual customs finalization reports on their usage status of import duty exempt materials, exported products and actual consumption norms during the year.

Personal Income Tax (“PIT”) changes in 2020

The National Assembly has approved the new PIT changes in their recent meeting to increase personal and dependant relief in 2020.

EVFTA officially ratified by Vietnam’s National Assembly

Vietnam's National Assembly has officially ratified the EVFTA. After this ratification, the EVFTA will be effective soon and it is expected to boost the trade volume between Vietnam and the EU.

Resolution 84 – further Government support to businesses during the COVID-19 pandemic

Further to the support to businesses stated in Directive 11/CT-TTg, the Government issued on 29 May Resolution 84/NQ-CP aimed at further reduction of the pandemic’s impact on businesses.

Submission of Certificate of Origin during the COVID-19 pandemic

Thời điểm nộp Giấy Chứng nhận Xuất xứ ưu đãi (C/O) trong giai đoạn đại dịch COVID-19

Due to the current COVID-19 outbreak, many customs declarants are unable to submit preferential Certificates of Origin (“CoO”) at time of importation or within 30 days of the registered date of the customs declarations. Recognising this difficulty, the Ministry of Finance has issued Circular 47/2020/TT-BTC dated 27 May 2020 regulating the deadlines for submitting CoO to enjoy special preferential import duty rates.

Internal restructuring and merger filing in Vietnam

Tái cấu trúc nội bộ và thông báo tập trung kinh tế tại Việt Nam

The Competition Law 2018 does not exempt internal restructuring within the same group of companies from merger filing requirements. That said, arguably, internal restructuring between companies which are under the control of the same ultimate parent company is not subject to merger filing in Vietnam.

Rules of Interpretations of Vietnamese Law Contracts

Các nguyên tắc giải thích hợp đồng theo luật Việt Nam

Under Vietnamese law, the rules of interpretation of contract are mostly provided under Article 404 of the Civil Code 2015. According to this provision, the order of priority in interpreting a contract seems to be (1) “mutual intention” (ý chí chung) of the parties; (2) contract wording; and (3) each party’s intention and customary practice. This update examines the rules of interpretation.

Potential structures for overcoming a merger filing threshold in Vietnam

Các cấu trúc tiềm năng để vượt qua ngưỡng thông báo tập trung kinh tế tại Việt Nam

The merger filing thresholds under the new Decree 35/2020 are drafted broadly and have no exception. Accordingly, many M&A transactions, which have no anti-competitive impact in Vietnam are still subject to filing requirements. A filing process could take substantial time and effort since at law and in practice, the competition authority (NCC) has very broad discretion in demanding additional information or documents about the parties. This update reviews some potential structures for overcoming the merger filing threshold in Vietnam.

New Regulation on Solar Power

The long awaited new fit-in tariffs (FiT) for solar power projects were finally introduced by the Prime Minister’s Decision 13/2020/QD-TTg. However, some aspects of these new rules will cause concern to investors.

Draft Circular on Tax Registration

The Ministry of Finance has now released a draft circular to provide some guidance on its implementation. When it comes into effect, this would replace the current Circular on tax registration, i.e. Circular 95/2016.

New Decree Guiding Competition Law

The Competition Law 2018 (“CL”) came into effect on 1 July 2019 and prohibits (i) competition-restraining agreements, (ii) abuse of dominant market position/monopoly position, (iii) economic concentration, and (iv) unfair competitive practices. The government issued Decree 35/2020/ND-CP dated 24 March guiding the Competition Law 2018. Decree 35 will come into effect on 15 May.

Guidance on the Combined Declaration of Multiple Products in Box 7 of the Certificate of Origin

During recent inspections of the application of Certificate of Origin Form E, Customs have questioned C/O's validity in case multiple product items are combined and declared in C/O box 7. Accordingly, the General Department of Customs has recently issued an instruction on the required content in Box 7 in cases of combined declarations for multiple products in Official Letter No. 575/TCHQ-GSQL dated 31 January 2020.