LEGAL NEWSLETTER
July 2023
Dear Valued Clients and Partners,
ADK Vietnam Lawyers would like to introduce to you the July 2023 Legal Newsletter with the following main contents:
1. Legal Spotlight
1.1 The Degree about protection of personal data is now in effect
On April 17, 2023, the Government issued Decree No. 13/2023/NĐ-CP on protection of personal data (hereinafter referred to as "Decree 13/2023/NĐ-CP"). This decree has established a new legal framework for data processing and management in Vietnam.
The notable points of Decree 13/2023/NĐ-CP are as follows:
(i) Definition of sensitive personal data, which refers to personal data in association with individual privacy which, when being infringed, will directly affect an individual's legal rights and interests, including:
- Political and religious opinions;
- Health condition and personal information stated in health record, excluding information on blood group;
- Information about racial or ethnic origin;
- Information about genetic data related to an individual's inherited or acquired genetic characteristics;
- Information about an individual’s own biometric or biological characteristics;
- Information about an individual’s sex life or sexual orientation;
- Data on crimes and criminal activities collected and stored by law enforcement agencies;
- Information on customers of credit institutions, foreign bank branches, payment service providers and other licensed institutions;
- Personal location identified via location services;
- Other specific personal data as prescribed by law that requires special protection.
(ii) Violations of personal data protection regulations may be disciplined, or face administrative penalties or criminal prosecution according to regulations.
(iii) Decree No. 13/2023/NĐ-CP also stipulates 5 cases of Personal data processing without the consent of data subject:
- The personal data shall be processed to protect the life and health of the data subject or others in an emergency situation;
- Disclosure of personal data in accordance with the law;
- Processing of personal data by competent regulatory authorities in the event of a state of emergency regarding national defense, security, social order and safety, major disasters, or dangerous epidemics; when there is a threat to security and national defense but not to the extent of declaring a state of emergency; to prevent and fight riots and terrorism, crimes and law violations according to the provisions of law;
- The personal data shall be processed to fulfill obligations under contracts the data subjects with relevant agencies, organizations and individuals as prescribed by law;
- The personal data shall be processed to serve operations by regulatory authorities as prescribed by relevant laws.
Decree No. 13/2023/NĐ-CP takes effect from 01/07/2023.
1.2 Pilot Implementation of Carbon Credit Transactions Mechanism in Ho Chi Minh City
At the end of last month, on 24/06/2023, the National Assembly issued Resolution 98/2023/QH15 on piloting certain mechanisms and policies for the distinctive development of Ho Chi Minh City (hereinafter referred to as "Resolution 98/2023/QH15"), bringing significant benefits to businesses and residents.
Accordingly, the financial mechanism for implementing greenhouse gas emission reduction measures through carbon credit exchange and offset in Ho Chi Minh City is one of the prominent points in Resolution 98/2023/QH15. The pilot implementation is stipulated as follows:
(i) Carbon credits from programs, projects under carbon credit exchange, and offset mechanisms, invested with capital from the city's budget, shall be traded with domestic and international investors. The City People's Committee, in coordination with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, Construction, and Natural Resources and Environment, shall determine the contribution ratio towards emission reduction and greenhouse gas absorption within the city's territory for the national greenhouse gas emission reduction target before conducting carbon credit transactions.
(ii) The City People's Committee shall issue procedures, regulations, and decisions regarding the selection of investors. The revenue generated from carbon credit transactions constitutes 100% of the city's budget revenue, and these funds are not used to determine the percentage distribution between the central budget and the city's budget.
The pilot implementation of carbon credit transactions will commence on 01/08/2023
1.3 The Law on E-Transactions ("Amendment") was officially passed
On 22/06/2023, the National Assembly passed the Law on E-Transactions ("amendment"). The Law on E-Transactions ("amendment") is expected to bring about effectiveness and positive changes to the current economy and transactions.
Accordingly, the Law on E-Transactions ("amendment") has the following prominent points:
(i) The Law on E-Transactions ("amendment"), consisting of 7 chapters and 54 articles, notably emphasizes regulating electronic transaction implementation without intervention in different sectors' content, form, or conditions.
(ii) Regarding the management authority, the Law on E-Transactions ("amendment") designates the Ministry of Information and Communications as the lead agency responsible to the Government for presiding over and coordinating with relevant ministries and equivalent agencies in implementing state management of electronic transactions.
(iii) Concerning violations, the Law on E-Transactions ("amendment") provides detailed regulations on 08 prohibited acts in electronic transactions, as follows:
- Exploiting electronic transactions to undermine the national interests, national security, public order, social safety, public benefits, and lawful rights and interests of agencies, organizations, and individuals;
- Obstructing or preventing, contrary to the law, the process of creating, sending, receiving, storing data messages, or engaging in other activities to sabotage the information system serving electronic transactions;
- Collecting, providing, using, disclosing, displaying, disseminating, or engaging in illegal business activities with data messages;
- Falsifying, distorting, deleting, destroying, copying, or moving, in contravention of the law, all or part of data messages;
- Creating data messages to engage in unlawful activities;
- Fraudulently manipulating, falsifying, misappropriating, or using electronic transaction accounts, electronic certificates, electronic signature certificates, or electronic signatures in violation of the law;
- Obstructing the selection of electronic transaction execution;
- Other behaviors prohibited by the provisions of the law;
The Law on E-Transactions ("amendment") takes effect from 01/07/2024.
1.4 The Ministry of Finance provides guidance on the market for trading privately placed corporate bonds in the domestic market
On 17/05/2023, the Ministry of Finance issued Circular No. 30/2023/TT-BTC providing guidelines for registration, depository, exercise of rights, transfer of ownership, settlement of transactions, and organization of the market for trading privately placed corporate bonds in the domestic market (hereinafter referred to as "Circular 30/2023/TT-BTC").
Accordingly, the main entities subject to the application of Circular No. 30/2023/TT-BTC are:
(i) Enterprises issuing privately placed corporate bonds from the effective date of Decree No. 153/2020/NĐ-CP on December 21, 2020;
(ii) Members of the Vietnam Stock Exchange, depository members, and organizations that directly open accounts, excluding organizations stipulated in point b, clause 1, Article 165 of Decree No. 155/2020/NĐ-CP dated December 31, 2020, detailing the implementation of certain provisions of the Securities Law;
Consequently, Circular No. 30/2023/TT-BTC comprises five chapters and 21 articles providing guidelines on the following key issues:
- Guidelines for registration, depository, exercise of rights, and transfer of ownership concerning privately placed corporate bonds;
- Guidelines for organizing transactions, canceling transaction registration of privately placed bonds;
- Guidelines for settlement of privately placed corporate bond transactions;
- Handling cases of errors occurring in privately placed corporate bond transactions.
Circular No. 30/2023/TT-BTC takes effect from 01/07/2023
1.5 The Petroleum Law has officially come into effect
On 14/11/2022, the National Assembly officially issued the Petroleum Law 2022, marking the first comprehensive revision since its initial enactment in 1993.
Accordingly, the Petroleum Law 2022 contains the following noteworthy points:
(i) Supplementing special incentive policies applicable to certain enterprises for oil and gas blocks and fields:
- Applying a corporate income tax rate of 25% for enterprises;
- The tax rate for crude oil exports is 5%;
- The maximum cost recovery rate is set at 80% of the oil production volume extracted within the year.
(ii) Supplementing resource exploitation policies for fully exploited oil fields to create breakthrough mechanisms and generate revenue for the state budget:
- Contractors must allow the full exploitation of oil fields, clusters, and oil blocks when the petroleum contracts have expired.
- Introducing additional resource exploitation policies for fully exploited oil fields, clusters, and oil blocks.
The Petroleum Law 2022 will take effect from 01/07/2023
2. Some prominent legal instruments take effect from July 2023
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No.
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Name of legal instrument
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Date of Issue
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Date of Effective
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DECREE
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-
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Decree No. 41/2023/NĐ-CP prescribing registration fees for domestically manufactured and assembled motor vehicles, trailers or semi-trailers towed by motor vehicles and similar vehicles.
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28/06/2023
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01/07/2023
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-
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Decree No. 39/2023/NĐ-CP elaborating the resolution no. 73/2022/qh15 dated november 15, 2022 of the national assembly on pilot auction of motor vehicle license plates
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26/06/2023
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01/07/2023
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-
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Decree No. 13/2023/NĐ-CP protection of personal data
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17/04/2023
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01/07/2023
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CIRCULAR
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-
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Circular No. 10/2023/TT-BNV provides guidelines for implementing the basic salary level for salary and allowance recipients in public agencies, organizations, public career units of the Communist Party, State, Vietnam Fatherland Front, political-social organizations, and associations under the authority of the Minister of Home Affairs
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26/06/2023
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01/07/2023
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-
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Circular No. 30/2023/TT-BTC providing gudielines for registration, depositing, corporate actions, transfer of ownership, settlement for transactions and organization of trading market for corporate bonds privately placed in domestic market
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17/05/2023
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01/07/2023
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-
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Circular No. 03/2023/TT-BKHCN providing guidance on treatment of risks arising from direct lending operations of national technology innovation foundation
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15/05/2023
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01/07/2023
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-
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Circular No. 06/2023/TT-BGTVT amends the Circular related to the management, operation, use, maintenance, and protection of roads, issued by the Minister of Transport
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12/05/2023
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01/07/2023
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-
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Circular No. 28/2023/TT-BTC prescribing fees for appraisal of construction investment projects, collection, transfer, management and use thereof
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12/05/2023
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01/07/2023
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We hope this Legal Newsletter has a lot of useful information.
Best Regards.
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