VietNamNet Bridge – New regulations on re-registration of foreign-funded enterprises, special financial supervision, retail sales of tobacco, preferential customs treatment among others will take effect in August.

Illustrative image. (Source: Internet)

The Law on amendments and supplements to Article 170 of the Law on Enterprises took effect on August 1.

It aims to facilitate the re-registration of foreign-funded enterprises which were established prior to July 1, 2006 and whose business licenses have expired.

Raising monthly credit value for students

The Prime Minister’s Decision 1196/QD-TTg, which also took effect on August 1, stipulates that a student can borrow up to VND 1.1 million per month, an increase of VND 100,000 from the previous level.

This is part of the Government’s efforts to realize the program on granting preferential loans to poor students which was launched in 2007 and has so far benefited around 300,000 students.

The Government expects to spend VND 500,000 trillion (equivalent to US$2.5 billion) for the program by 2015.

Special financial supervision

Decree No. 61/2013/ND-CP promulgating the regulation on financial supervision, performance assessment, and disclosure of financial information for State-owned enterprises and State-capitalized enterprises will take effect from August 15.

The new Decree stipulates that the enterprises shall be put under special financial supervision if:

1- They face losses and their debt/equity ratio exceeds the regulated safe point.

2- They have incurred losses that account for 30% of equity or accumulated losses are higher than 50% of equity.

3- They have the ratio of due debt lower than 0.5.

4- They are discovered to make up financial reports, providing wrong figures about business results.

Workplace talks

According to Decree No. 60/2013/ND-CP on detailed implementation of Article 63 of the Labor Code, employers shall have to organize periodical talks (every three months) with employees at workplace to discuss on production performance; the implementation of labor contracts, collective labor contracts, regulations, commitments, and other agreements.

Proposals of employees as well as employers’ requirements for employees shall also be brought to discussion at the two-party talks.

Each party shall have to send at least three representatives to the talks.

The new Decree will come into effect from August 15.

Five conditions for retail sales of cigarettes

Decree No. 67/2013/ND-CP on elaborating some articles and measures for the implementation of the Law on tobacco harm prevention applicable to tobacco trading will take effect on August 15.

The new Decree stipulates five conditions for traders to be granted with retail tobacco license:

(i) Having registered the business of selling cigarettes;

(ii) Having fixed business locations with clear addresses and facilities as regulated;

(iii) The area of each business location shall be at least three square meters;

(iv) Having sale contracts with enterprises trading tobacco products;

(v) The retail sales of tobacco shall be in line with the Planning scheme of tobacco trading system approved by competent agencies.

Tobacco products for domestic consumption shall be stamped as stipulated by the current regulations.

Preferential customs treatment

Circular 86/2013/TT-BTC, issued by the Ministry of Finance, that is scheduled to take effect on August 11, covers types of enterprises to enjoy preferential customs treatment.

(i) Enterprises which enjoy preferential treatment in export and import of all products;

(ii) Enterprises which enjoy preferential treatment in exporting farm produce, aquaculture, garments and textiles, footwear and in importing materials for production of exports;

(iii) Enterprises certified by the Ministry of Science and Technology as high-tech ones in accordance with the Law on High-tech and granted preferential treatment in importing goods for production and in exporting high-tech products.

Source: VGP