Legal updates by Dr. Oliver Massmann

Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you.

1. Key solutions to cope with rising sea freight prices

Some highlines are as below:

The Ministry of Industry and Trade has asked local associations and businesses to strengthen coordination in implementing key solutions to promote imports and exports as sea freight rates rise.
The ministry sent Telegram 5178/BCT-XNK on July 19 to the Vietnam Logistics Business Association, the Vietnam Shipper’s Council, the Vietnam Ship-owner’s Association and the Vietnam Ship Agents, Brokers and Maritime Services Providers Association.
In the telegram, the ministry suggested collaboration between associations and businesses to gather member businesses to jointly develop production and business and transportation plans and goods import and export plans as a basis for minimizing the impact of freight rates and surcharges in the current period of complex and unpredictable developments in the international market.
Businesses importing and exporting to Europe can consider alternative routes beside sea routes, including a combined multilateral transport route, going by sea to ports in the Middle East, and then travelling by air, rail or road to Europe.
Import-export industry associations should increase dissemination about the provisions of free trade agreements to local import-export businesses to facilitate trade and enhance preferential utilization rates from these agreements.

2. New credit regulations on related-party transactions proposed

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The Ministry of Finance (MoF) has proposed new regulations on determining related-party transactions between enterprises and credit institutions to fight against transfer pricing, according to a report from the national English-language newspaper Việt Nam News.
The proposal is under a MoF’s draft decree amending and supplementing Decree No. 132/2020/ND-CP regulating tax management for enterprises with related transactions.
In the draft decree, which has been made public for comments, the MoF proposes a related party of a credit institution is an enterprise that directly or indirectly holds at least 20% of the charter capital of a credit institution. Both enterprises have at least 25% of the owner’s capital contribution held directly or indirectly by a third party. The enterprise and the credit institution both have at least 20% of the charter capital held directly or indirectly by a third party.
The revised Law on Credit Institutions, which took effect from early July, is aimed at improving the legal frameworks in the banking sector, meeting the requirements of restructuring the banking system, ensuring safe and sound banking operations and enhancing the transparency in accordance with the international standards and practices.

3. Revised Law on Asset Auction expected to improve auction quality

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Scheduled to take effect on January 1 next year, the Law Amending and Supplementing a Number of Articles of the Law on Asset Auction, which was passed by the National Assembly on June 29, is expected to contribute to improving the quality and professionalism of operations of asset auction organizations.
Accordingly, the new Law additionally specifies prohibited acts of auction participants as well as auction winners, including getting authorized by other auction participants to participate in the auction of assets for which they are also auction participants or getting authorized by two or more auction participants to participate in the auction of the same asset; and participate in an auction in which their spouses or biological siblings are also participants.
The new Law also revises Article 11 of the current law regarding the auction training period in order to ensure that all persons who wish to become auctioneers will be equipped with professional knowledge and practice skills suitable to the profession.
The new Law adds new provisions on online auctions and online auction order and procedures. Accordingly, an online auction may be held via the National Asset Auction Portal or auction information webpages.

4. PM requests effective implementation of real estate-related laws

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Prime Minister Pham Minh Chinh has instructed relevant ministries, sectors, and localities to effectively implement the Land Law 2024, Law on Housing 2023, and Law on Real Estate Business 2023, all of which took effect from August 1.
The implementation of these newly-amended laws is expected to create new momentum to boost socio-economic development and create favorable business environment for enterprises and people, according to an official dispatch issued by the Government leader on August 13.
PM Chinh asked the ministries to urgently guide and train local authorities on the new policies stipulated in these laws and the Government decrees regulating their detailed implementation, serving the effective enforcement of these policies and integrating them into daily life.
PM Chinh requested provincial and municipal People’s Councils and People’s Committees to concentrate resources and ensure the necessary conditions for the effective enforcement of these laws. They must proactively collaborate with relevant ministries and sectors to resolve any issues arising in the implementation process.

Legal updates by Dr. Oliver Massmann | August 2024