Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you.
- Government approves 50-percent cut in registration fees for cars from September 1
- Tax and fee reduction and extension totals $3.58 bln in 8M
- Premier requests human resources training in semiconductor, AI, cloud computing
- Law amendments need to facilitate production and business activities: PM
- Premier requests acceleration of site clearance for key transport projects
1. Government approves 50-percent cut in registration fees for cars from September 1
Some highlines are as below:
- A temporary 50-percent reduction in registration fees for domestically produced and assembled cars will be applied from September 1 through November 30 this year.
- Such is announced under Decree 109/2024/ND-CP signed by Deputy Prime Minister Ho Duc Phoc on August 30.
- This move aims to stimulate the domestic auto market, which has seen a significant drop in sales with 67,849 cars sold in the first half of 2024, marking a 15 percent decline compared to the same period last year.
- The reduction is also intended to counter the trend of declining domestic auto sales compared to imported vehicles, which have been outperforming local models.
2. Tax and fee reduction and extension totals $3.58 bln in 8M
Some highlines are as below:
- The policy is part of Government efforts to support businesses and people.
- The Government cut, extended, or waived taxes, fees and land costs worth about VND89.8 trillion ($3.58 billion) in the first eight months of the year, according to the Ministry of Finance (MoF).
- The ministry said tax and customs agencies continued to implement the policies as part of Government measures to support people and businesses.
- The MoF had proposed the Government to issue policies on a range of tax and fee reduction and extension in 2024, totaling nearly VND200 trillion ($7.98 billion). These include extensions and reduction of value-added tax (VAT), corporate income tax, personal income tax, excise tax, and land rental fee.
- Since the beginning of the year, the reduction of environmental protection tax on fuel has been applied under a resolution adopted by the National Assembly.
3. Premier requests human resources training in semiconductor, AI, cloud computing
Some highlines are as below:
- Prime Minister Pham Minh Chinh has requested ministers, heads of ministerial-level and State agencies and chairpersons of provincial-level People’s Committees to implement measures to strengthen the training of high-quality human resources for the semiconductor, artificial intelligence (AI) and cloud computing.
- In Telegram No. 83/CD-TTg dated 23/8/2024, the Premier assigned the Minister of Education and Training (MoET) to direct public and private tertiary education institutions to set up specialized professional units for training and researching in the target industries.
- The ministry was tasked to guide the training establishments to review and renovate their training program while developing and implementing training plans for lecturers, researchers, students majoring in semiconductor microchips, AI and cloud computing, strengthening the application of AI in teaching and studying, and promote cooperation with enterprises, universities and research institutes at home and abroad in training, research and development activities in these fields.
- The Governmental leader also asked the MoET to promptly formulate and submit a scheme to develop high-quality human resources for hi-tech sectors and basic industries and a directive on promoting human resources training for semiconductor microchips manufacturing, AI and cloud computing.
4. PM requests effective implementation of real estate-related laws
Some highlines are as below:
- Prime Minister Pham Minh Chinh asked for overhauling the fundamental and urgent regulations that serve macro-economic stabilization, inflation control and growth promotion, along with ensuring major balances of the economy, while chairing a meeting held on August 16 to discuss the building of a draft law to amend some contents of finance- and budget-related laws.
- Participants discussed the proposals on building the draft law amending some articles of the Law on State Budget, the Law on Management and Use of Public Assets, the Law on National Archives, the Law on Accounting, the Law on Independent Audit, the Law on Securities, and the Law on Tax Administration.
- The amendments of these laws will meet expectations of people and businesses in reducing administrative procedures and compliance costs, he said.
- PM Chinh asked for determination to remove all obstacles relating to legal documents.
- The new law should strengthen State management, streamline administrative procedures, eradicate the “ask – give” mechanism, reduce bureaucracy for people and enterprises, prevent corruption and negative phenomena, the PM said.
5. Premier requests acceleration of site clearance for key transport projects
Some highlines are as below:
- In Telegram 80/CD-TTg dated August 16, 2024, PM Chinh said site clearance, resettlement and technical infrastructure relocation for a number of projects have still lagged behind schedule, affecting the progress of many that are scheduled to complete next year.
- These projects include the eastern North-South Expressway in the 2021-2025 period, Tuyen Quang-Ha Giang, Bien Hoa-Vung Tau, and Hoa Lien-Tuy Loan expressways, Ho Chi Minh Belt Road No.3, component projects No.1 and 3 of Khanh Hoa-Buon Ma Thuot expressway, according to the telegram.
- For projects that are expected to be completed in 2025, it is necessary to speed up the construction of resettlement areas and the relocation of high-voltage power line systems, striving to hand over the ground to the projects by August 30, 2024.
- Related cities and provinces were requested to coordinate closely with the Ministry of Industry and Trade, and the Vietnam Electricity to hasten the relocation of high-voltage power line systems, especially in localities with heavy workloads.