LEGAL UPDATES VOL 24, NOVEMBER 2021

LEGAL UPDATES
VOL 24, NOVEMBER 2021

Dear Valued Clients and Partners,

ADK & Co Vietnam Lawyers would like to introduce to you the Legal Updates, Vol 24 of November 2021 with new legal provisions with notable contents as follows:

1. The Scheme on development of non-cash payment in Vietnam during 2021 – 2025 was officially approved

On 28 October 2021, the Deputy Prime Minister Le Minh Khai signed Decision No. 1813/QD-TTg approving the Scheme on development of non-cash payment in Vietnam in the period of 2021-2025. The Decision shall take effect from 28 October 2021.

Accordingly, the general objectives set forth by the Decision include:

(i) Creating a positive change in non-cash payment in the economy with high growth rate, making the use of non-cash payment tools to become the habit of people in urban areas and gradually develop in rural areas and remote areas; reducing the social costs related to cash.

(ii) Applying strongly achievements of the 4.0 Industrial Revolution to upgrade and develop payment infrastructure and non-cash payment services, for the purpose of meeting the payment needs of people and organizations in a convenient and efficient way; and

(iii) Ensuring security, safety and confidentiality in non-cash payments, improving the operational efficiency of the banking system and the management, supervision effectiveness of the State management agencies, making payment transactions transparent, contributing to the prevention and fight against corruption, negativity, economic crimes money laundering and terrorist financing.

In order to achieve the above objectives, the Decision also prescribes the particular solutions as follows:

(i) Completing the legal framework, mechanisms and policies;

(ii) Upgrading and developing modern payment infrastructure which operates safely, effectively and has the ability to connect and integrate with other systems;

(iii) Developing modern payment services and applying achievements of the 4.0 Industrial Revolution.

(iv) Promoting electronic payment in the government sector, public administrative services;

(v) Strengthening the inspection, examination and supervision; ensuring security, safety and applying international standards in payment activities;

(vi) Promoting propaganda, training, guidance and consumers protection in non-cash payments; and

(vii) Strengthening the coordination mechanism to promote non-cash payments.

2. Discount 80% of deposit for travel service providers until the end of 2023

The Government has issued Decree No. 94/2021/ND-CP on 28 October 2021 to amend the Decree No. 168/2017/ND-CP on deposit amount for travel service providers. The Decree shall take effect from 28 October 2021.

Accordingly, the deposit amount for travel service providers is amended as follows:

(i) The deposit for domestic travel providers is: VND 20.000.000 (formerly VND 100.000.000);

(ii) The deposit for international travel providers is:

Provision of travel services for inbound tourists: VND 50,000,000 (formerly VND 250.000.000);

Provision of travel services for outbound tourists: VND 100,000,000 (formerly VND 500.000.000);

Provision of travel services for inbound and outbound tourists: VND 100,000,000 (formerly VND 500.000.000).

In addition, the enterprises should take into consideration:

(i) The above deposit amount for travel service providers will be applied from 28 October 2021 to the end of 31 December 2023.

(ii) From 01 January 2024, travel service providers shall make a deposit pursuant to the previous regulations set forth under Decree No. 168/2017/ND-CP dated 31 December 2017.

3. List of national projects calling for foreign investment in the period 2021-2025

On 01 November 2021, the Standing Deputy Prime Minister Pham Binh Minh signed Decision No. 1831/QD-TTg promulgating the list of national projects calling for foreign investment in the 2021-2025 period.

The List includes 157 national-level projects in 09 areas: (i) transport infrastructure; (ii) infrastructure for industrial parks and economic zones; (iii) energy infrastructure, (iv) information and communication technology infrastructure; (v) waste and water treatment systems; (vi) health and education infrastructure; (vii) cultural, sports and tourism infrastructure; (viii) agriculture, forestry and aquaculture; and (ix) services.

Out of the areas specified in the List, transport infrastructure is the field with the largest number of large-scale projects. There are a total of 34 projects, for example:

Urban railway line (Metro) No. 4;

Trang Bom - Hoa Hung railway, Thong Nhat railway line;

Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway;

Ring Road No. 4 (section through Long An province);

Ring Road No. 5 (section through Hoa Binh province);…

In addition to the project name, the List also contains regulations on project objectives, implementation location, scale/specifications, total investment capital, investment form and contact address.

We hope you found this brief legal update informative.

Kind regards.

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