LEGAL UPDATES VOL 27, NOVEMBER 2021

LEGAL UPDATES
VOL 27, NOVEMBER 2021

Dear Valued Clients and Partners,

ADK Vietnam Lawyers would like to introduce to you the Legal Updates, Vol 27 of November 2021 with new legal provisions with notable contents as follows:

1. The State Securities Commission advises that investors should be wary of participating in investment and business activities on stock exchanges that are not regulated or recognized by the securities law.

Recently, on its official portal, the State Securities Commission (SSC) has announced of investors’ participation in investment and business activities on stock exchanges that are not operated by the Vietnam Stock Exchange and its subsidiaries.

Accordingly, through reflections on a number of mass media and reflections of investors, in recent times, there has been a phenomenon where some organizations and individuals have called and invited investors to participate in securities transactions via international stock exchanges, international derivatives, virtual securities, etc. or an intermediary company connected to international stock exchanges; in which, there are companies that use securities company names for securities transaction, business and investment without being licensed by the SSC.

The above incident has misled investors that these are stock exchanges, securities companies are legally operating and under the management and supervision of the SSC. Therefore, in this regard, the SSC announces as follows:

(i) According to the securities law, only the Vietnam Stock Exchange (VSE) and its subsidiaries, namely the Hanoi Stock Exchange (HNX) and the Ho Chi Minh City Stock Exchange (HOSE), are allowed to organize a stock trading market in Vietnam. Therefore, apart from VSE, HNX and HOSE above-mentioned, there are not any organizations or individuals allowed to organize and operate the stock market;

(ii) Types of securities permitted to be traded and listed on the Vietnamese stock market as prescribed by the securities law must satisfy the conditions for listing and registration for trading, and must be approved by the SSC before the transaction; and

(iii) The SSC shall grant operating licenses to securities companies that satisfy the conditions prescribed by the law on securities and securities market. The SSC does not manage or supervise securities companies or organizations operating securities exchanges without being licensed by the SSC.

Therefore, the SSC recommends that investors should be vigilant and carefully study information when invited to invest in securities through stock exchanges and intermediary organizations that are not specified or recognized contract, in order to limit possible losses.

2. The National Power Development Plan for the period of 2021-2030, with a vision to 2045 (PDP VIII) will consider reducing coal power, excluding solar power from the system distribution

On 19 November 2021, Deputy Prime Minister Le Van Thanh chaired a conference to collect opinions on finalizing the National Power Development Plan for the period of 2021 - 2030, with a vision to 2045 (PDP VIII). This is the third draft of the PDP VIII, which has been consulted by the Ministry of Industry and Trade since March until now.

Accordingly, in the spirit of developing clean and renewable energy sources, in line with the commitment to cut CO2 at COP26, the Ministry of Industry and Trade releases the following proposals:

(i) Consider reducing coal power, developing new and renewable energy. In the field of renewable energy, attention should be paid to ensuring the efficiency, harmony and balance of the system;

(ii) Prioritizing the development of wind power (onshore and offshore wind power), developing a plan to increase wind power in the total structure in the coming period;

(iii) Solar power is not included in the total balance of the national electricity system due to the limited time and unstable characteristics, as well as no stable storage solution of this type of energy. Therefore, solar power will be encouraged to develop to meet the needs of self-production and self-consumption.

In addition, PDP VIII shall calculate the balance of sources - loads by regions in order to limit power transmission over long distances and minimize inter-regional power transmission. Specifically, thousands of kilometers of new 500 KV transmission line to be built has been reduced, compared to the previous draft plan; and at the same time, it is required to ensure regional reserve at a reasonable level, especially in the Northern Vietnam.

Deputy Prime Minister Le Van Thanh emphasized that PDP VIII plays an important role; therefore, it is necessary to calculate in a scientific, thorough manner, considering all factors to ensure the goal of sufficient electricity supply for socio-economic development, and to ensure national energy security.

3. Research and amend the prevailing Land Law to support small and medium-sized enterprises

On 18 November 2021, the Prime Minister issued the Official Document No. 1590/TTg-DMDN on accelerating the implementation of the Law on Support for Small and Medium-sized Enterprises (SMEs). Accordingly, in order to create conditions for these enterprises to overcome difficulties, maintain and promote their production and business activities after the severe impacts of the Covid-19 pandemic, the Prime Minister requested the Ministries, Agencies, localities and associations focus on effectively directing and promoting implementation of the Law on Support for SMEs.

In particular, the Ministry of Natural Resources and Environment is required to study and amend the 2013 Land Law and its guiding documents to be consistent with the applicable provisions on supporting SMEs for the following contents:

(i) Prioritizing allocation of land fund to form and develop industrial clusters, concentrated agricultural, aquatic and seafood processing zones for SMEs;

(ii) Creating favorable conditions for SMEs to access and lease land in industrial parks and industrial clusters;

(iii) Researching solutions to support space rent for SMEs, innovative start-ups, etc.

In addition, the Prime Minister also requested to speed up the preparation, appraisal and approval of all kinds of planning for the period of 2021-2030, including planning of provinces and cities to promptly arrange land fund for production and business.

These contents are expected to open up many active support policies in the field of land for SMEs in order to recover their production and develop their business in the coming time.

We hope you found this brief legal update informative.

Kind regards.

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