Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you. Dr. Oliver Massmann is an International Attorney at Law and a Financial Accountant and Auditor, with over 20 years of experience working as a commercial lawyer in Vietnam.
Dr. Massmann is volunteering as a legal advisor for the GBA from the beginning of the association. Our regards and thank you!
Legal updates by Dr. Oliver Massmann| September 2021
1. Vietnam to issue a tax decree on cross-border e-commerce
2. State Bank agrees to extend debt rescheduling for six months
3. Issuance of government’s resolutions on key tasks for dual goals
4. PM issued directive on promoting production, circulation and export of agricultural products amid pandemic
5. New Government resolution creates optimal conditions for foreign workers
6. Supporting policies in Vietnam’s social insurance
1.Vietnam to issue a tax decree on cross-border e-commerce
Some highlines are as below:
- Vietnam intends to issue a new decree to regulate cross-border e-commerce deliveries amidst the e-commerce boom. The draft decree also mentions the process to speed up customs clearance for imported and exported goods through the e-commerce platforms. If approved, this decree is expected to take effect from January 1, 2023.
- Most recently, the Ministry of Finance (MoF) has sent an official dispatch to consult ministries and branches for comments on the draft decree on the management of export-import goods transacted through e-commerce.
- With the increasing number of cross-border e-commerce packages, custom departments have to find solutions to speed up goods clearance to reduce congestion at the border gate. The customs authority does not have prior information about the type of goods to decide whether to carry out inspection or not. Vietnam does not impose import tax on packages worth VND1 million ($44) each or lower delivered via postal and delivery services. Some people have taken advantage of this policy to divide their cross-border e-commerce goods into smaller-value packages to evade tax.
- The MoF proposes each organization or individual will be free of import tax for maximum four orders every month. Meanwhile, packages valued more than $44 with import tax amount above VND100,000 ($4.39) will be subjected to tax paymen
2. State Bank agrees to extend debt rescheduling for six months
Here are some remarks:
- In Circular 14/2021/TT-NHNN issued on Tuesday, the central bank allows financial institutions to reschedule debts incurred before August 1, 2020, instead of June 10, 2020; and debts with repayment obligations from January 23, 2020 to June 30, 2022, instead of December 31, 2020.
- The new circular extends the repayment term for customers by another six months compared to Circular 03, until June 30, 2022.
- The restructuring of overdue debts will also be extended from July 17, 2021 to before September 7, 2021..
- It also allows credit institutions and foreign bank branches to decide the exemption or reduction of interest and fees according to their internal regulations for the debts incurred before August 1 with repayment obligation between January 23, 2020 and June 30, 2022 and for customers unable to repay debts due to the pandemic.
- Meanwhile, the Vietnam Banks Association had proposed extending debt rescheduling to “three months after the Prime Minister announces the end of the pandemic”. This suggestion would help SVB avoid amending their policies.
3. Issuance of government’s resolutions on key tasks for dual goals
Some points stated as below:
- The issuance of the government’s resolution No. 63/NQ-CP on the key tasks and solutions to promote economic growth, disbursement of public investment, and sustainable exports in the last months of 2021 has shown the government’s determination in achieving the dual goals of fighting against the epidemic and socio-economic development.
- The government proposed nine solutions including a focus on prevention of the Covid-19 epidemic for promotion of socio-economic development in addition to maintaining macroeconomic stability. Additionally, the government mentioned acceleration of disbursement of public investment capital and import and export.
- The government ensured to support people and businesses by removing difficulties for production and business. Finally, to boost economic growth, the government needs to increase the disbursement of public investment sourced from the State budget, promote exports and develop the local market.
- According to the World Bank, the government should give greater attention to non-performing loans and adopt a more appropriate fiscal policy for long-term economic growth.
- The government is presently placing the prevention of Covid-19 on top priority. Besides the 5K principles, vaccines are the key factor to curb the pandemic. Once herd immunity is achieved by the end of the year, the situation will soon stabilise again.
4. PM issued directive on promoting production, circulation and export of agricultural products amid pandemic
Prime minister Pham Minh Chinh on Tuesday issued a directive promoting the production, circulation, consumption and export of agricultural products in the context of COVID-19 prevention and control
Some remarks here:
- The prime minister requested ministries, branches and people’s committees of provinces and centrally-run cities to focus on implementing some urgent tasks.
- Along with that, localities should actively develop plans for the production, consumption and export of agricultural products and ensure the stability of people’s lives.
- Localities with border gates are asked to actively support businesses to remove difficulties in warehousing, storage of agricultural products, transportation services, and commercial logistics at the border gates; ensure customs clearance of agricultural products in all situations.
5. New Government resolution creates optimal conditions for foreign workers
Some remarks here:
- The government’s Resolution No. 105/NQ-CP on support for enterprises, cooperatives, and business households has considerably facilitated the granting of permits to foreign workers in Vietnam.
- To facilitate foreign workers coming to work in Vietnam, the government requested the Ministry of Labour, Invalids and Social Affairs to order localities to relax some regulations and conditions on the granting and extension of work permits in line with the new context and but still ensure pandemic prevention and control.
- This rule is now eased that foreigners must hold a Bachelor’s or higher degree or an equivalent degree and have at least three years of work experience that matches the jobs they plan to work in Vietnam.
- Under Point a of Clause 6 in Article 3 of Decree No 152/2020/ND-CP, the requirement for “having at least three years of work experience in the specialities that workers were trained in” was amended as “having at least three years of work experience that matches the jobs foreigners plan to work in Vietnam”.
- Point b of Clause 4 in Article 9 of Decree No. 152/2020/ND-CP is now supplemented with the term “giay chung nhan” (testimonial) and that the already granted work permits can be used as documents proving experts and technical workers in the dossiers seeking work permits.
6. Supporting policies in Vietnam’s social insurance
Some remarks here:
- Article 16 of Decree No.115/2015/ND-CP stipulates that enterprises are temporarily suspended from the duty of paying social insurance if they are facing difficulties due to a pandemic.
- The government issued Resolution No.68/NQ-CP on policies to support employees and employers facing difficulties due to COVID-19, especially two policies related to social insurance and unemployment insurance.
- In order to create convenience and avoid confusion in accessing social insurance policies, the Ministry of Labour, Invalids and Social Affairs also issued Decision No.777/QD-LDTBXH specifying procedures supporting employees and employers to temporarily suspend contributions to the retirement and survivorship fund due to COVID-19.
- At present, according to Resolution No.105/NQ-CP, the ministry directs and guides Vietnam Social Security to study and propose exemption from fines for late payment of social insurance arising in 2020 and 2021 according to the law, completed this month.