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| October 2021
- No COVID19 quarantine for fully vaccinated int’l visitors to Vietnam from November: proposed new rule
- Vietnam central bank to review draft policies on national digital currency
- Collecting land rent from the power transmission lines in Vietnam
- Fee reductions extended until June 2022
- New green growth strategy adopted to build a green economy
1.No COVID-19 quarantine for fully vaccinated int’l visitors to Vietnam from November: proposed new rule
Some highlines are as below:
- Fully vaccinated foreign visitors to Vietnam from November will not be placed in COVID-19 quarantine, according to a new rule in the latest draft guidance of the Ministry of Culture, Sports, and Tourism that has been submitted to the prime minister for approval.
- Under the rule, such visitors will undergo medical screening at an international airport of entry, including a COVID-19 test, and they can freely enjoy their tours if obtaining a negative test result, without being subject to quarantine.
- The country’s tourism authorities have previously announced that Da Nang, Kien Giang Province’s Phu Quoc City, Khanh Hoa Province, Quang Nam Province, and Quang Ninhwill welcome foreign tourists starting from November in the first phase of Vietnam’s international tourism reactivation. Phase 2 of the plan is scheduled to take place from January 2022, with more provinces and cities permitted to welcome foreign visitors via charter and regular international commercial flights. Phase 3 will kick off in the second quarter of 2022 to fully open tourism to foreigners, but the exact commencement day will be determined later based on the end of phase 2 and actual epidemic situations.
2. State Bank agrees to extend debt rescheduling for six months
Here are some remarks:
- The move which is part of a national strategy to promote non-cash payment in Vietnam in the 2021-2025 period, is revealed in prime minister’s Decision No.1813 on promoting non-cash payment methods in Vietnam in that period.
- Under the prime minister’s decision, the SBV is also responsible for completing the pilot legal framework for the operation of fintech in the banking sector by 2022.
- This year, prime minister Chinh instructed the Ministry of Information and Communications to draft regulations on e-verification and identification for privacy data protection, while the Ministry of Public Security would provide instruction for data sharing from the national database on citizens to aid the verification of information.
- By 2025, the prime minister expects the value of non-cash payment transactions to be 25 times larger than the GDP, and the proportion of non-cash payments to make up 50 percent of total transactions in e-commerce.
3. Collecting land rent from the power transmission lines in Vietnam
Some points stated as below:
- On November 3, 2021, the Government Office issued announcement No 296/TB-VPCP on the conclusion of Prime Minister Pham Minh Chinh at the meeting of the Government Permanent Council on land rent collection from the power transmission lines.
- The Government Permanent Council is unanimous with opinions of the participates in meeting to collect land rent from the transmission lines and assigns the Ministry of Finance in the main responsibility, coordination with Ministry of Industry and Trade (MOIT), Electricity of Vietnam (EVN) and the relevant agencies to propose a concrete time for starting to collect land taxes from the transmission lines so that it would happen no later than the first half of June 2022.
- The Ministries, Agencies in accordance with the assigned functions and targets should control and supervise land rent collection, payment from the power transmission lines according to the law regulations with avoiding negativity, corruption and group interests.
- Assigning Deputy Prime Minister Le Van Thanh to handle and resolve concrete issues in accordance with the law regulations.
4. Fee reductions extended until June 2022
The Government has approved the Ministry of Finance’s proposal to extend the reduction of fees which have been cut this year until the end of June next year.
Some remarks here:
- According to an announcement issued by the Government Office on November 15, the Government also agreed to simplify procedures when issuing circulars on fee cuts to support enterprises, residents and those affected by the Covid-19 pandemic.
- The country’s GDP growth has been forecast to reach some 3% this year, well below the 6% target.
- Many fees have been cut for residents and enterprises since last year, such as fees for licensing the establishment and operation of banks, issuing construction permits, appraising construction projects and some fees in the securities sector, among others. The fee cuts have amounted to some VND3 trillion since last year.
- The Ministry of Finance had also proposed issuing circulars on the fee cuts with simplified procedures and immediate validity to promptly support those affected by the pandemic.
5. New green growth strategy adopted to build a green economy
Some remarks here:
- The nation determines to slash greenhouse gas emission by at least 15 percent by 2030 against the level recorded in 2014; and 30 percent by 2050, provided under Prime Minister Decision 1658/QD-TTg, approving the national strategy for green growth for the 2021-30 period, with a vision toward 2050.
- The ultimate goal of the strategy is to accelerate the process of economic restructuring in association with growth model transformation in order to achieve economic prosperity, environmental sustainability, and social equality. It also aims to build a green and carbon-neutral economy, contributing to slowing down the global warming.
- By 2030, digital economy will account for 50 percent of GDP, the forest coverage rate will be kept at 42 percent, and at least 30 percent of the irrigated dry crop areas will apply advanced and water-saving irrigation methods.
- To achieve the above goals, the Ministry of Planning and Investment is assigned to formulate and submit to the Prime Minister for promulgation the national plan of action on green growth for the 2021-30 period within six months after this strategy is approved.
- The Ministry of Finance will be responsible for developing and completing preferential financial policy tools as well as programs and solutions to promote capital markets and green insurance; using tax and charge instruments to regulate consumption behaviors which are harmful to people’s health, culture, and the environment.