LEGAL UPDATES
VOL 52, OCTOBER 2022
Dear Valued Clients and Partners,
ADK Vietnam Lawyers would like to introduce to you the Legal Updates, Vol 52 of October 2022 with new legal provisions with notable contents as follows:
1. Making conditions easier for insurance businesses.
On June 16, 2022, the National Assembly (hereinafter referred to as "QH") approved the Law on Insurance Business No. 08/2022/QH15. This is an important legal document that is expected to create a new development step for the insurance market in the near future (hereinafter referred to as “Law”). In the Law, some notable provisions include:
(i) Features of micro-insurance products (Article 144 of the Law):
- Designed to be concise, easy to understand, with simple insurance appraisal procedures or without insurance appraisal.
- Only includes benefits to meet the basic protection needs against risks of life, health and asset of the plan participants with the insurance period not exceeding 05 years.
- The amount of insurance on each contract and the annual premium for each of a contract must not exceed the maximum level prescribed by the Government.
(ii) Foreign investors are allowed to contribute up to 100% of charter capital (Article 68 of the Law). This regulation affirms that foreign investors are allowed to own shares, contributed capital up to 100% of the charter capital of insurance enterprises and reinsurance enterprises in order to create clarity, in accordance with Vietnam's commitments at the WTO and signed free trade agreements.
(iii) The Law also adds provisions on financial safety (Article 109 of the Law), in case the capital adequacy ratio is at a level that requires intervention measures, early improvement measures, control measures, regulate responsibilities of enterprises, owners, capital contributors, Board of Directors, Supervisory Board, etc.
- Insurance enterprises, reinsurance enterprises and overseas branches in Vietnam are considered to be financially secure when meeting the regulations on capital, solvency and investment.
- In the operation, insurance enterprises, reinsurance enterprises and overseas branches in Vietnam must actively review processes, regulations, risk management systems, business plans, assessment insurance and reinsurance business, financial activities, effectively ensure safety and comply with the law in order to meet the financial safety in accordance with the provisions of this Law.
(iv) Additional requirements for periodic disclosure of information (Article 118 of the Law), regular disclosure of information (Article 119 of the Law); unusual disclosure of information (Article 120 of the Law) to ensure clear and transparent information about insurance enterprises
The Law takes effect from on January 1, 2023.
2. Amendment and supplementation of regulations on printing activities
The Government (hereinafter referred to as “G”) issued Decree 72/2022/ND-CP (hereinafter referred to as “Decree”) amending and supplementing Decree No. 60/2014/ND -CP's articles dated June 19, 2014 of the Government regulating printing activities and Decree No. 25/2018/ND-CP dated February 28, 2018 of the Government amending and supplementing Decree No. 60/2014/ND-CP's articles dated June 19, 2014 of the Government regulating printing activities. In the Decree, a number of notable regulations are amended and supplemented:
(i) Equipment for printing means machinery and tools to perform one or many steps of prepress, printing, post-processing and photocopying (hereinafter referred to as “printing equipment”) (Article 1.1.b of the Decree) , consists of:
- Computer to-film, computer-to-plate machines, stencil makers (HS code 84.42);
- Digital, offset, flexo, copper roller, letterpress printers and screen printers (HS code 84.43);
- Post-processing machines that are electrically operated (HS code 84.40, HS code 84.41): paper trimming machines (including die cut machines), folding machines, book binding machines (wire stitching, thread sewing or adhesive binding), saddle stitchers, combination lines for finishing printed products; machines for making bags, sacks or envelopes; machines for making cartons, boxes, coffers, tubular and drum boxes or containers
- Color copiers, single-function or multi-function color printer-copiers (HS code 84.43).
(ii) To amend and supplement the import of printing equipment (Article 1.5 of the Decree) as follows: The printing equipment specified in Clause 5, Article 2 of this Decree, before import, the importer must declare to the Ministry of Information and Communications as prescribed in Article 28 of this Decree (except for inkjet printers, monochrome or color laser printers with a speed of up to 60 sheets per minute (A4 size) or with A3 paper size or less and dot matrix printers).
(iii) To amend and supplement the import of printing equipment (Article 1.5 of the Decree) as follows:
- With regard to printing equipment specified at Point a, Clause 5, Article 2 of this Decree, the age of the equipment must not exceed 10 years;
- With regard to printing equipment specified at Points b and c, Clause 5, Article 2 of this Decree, the age of the equipment must not exceed 20 years;
- With regard to printing equipment specified at Point d, Clause 5, Article 2 of this Decree, the age of the equipment must not exceed 03 years;
The Decree takes effect from 1 January 2023.
3. New regulations on order and procedures for appraisal and issuance of Certificate of eligibility regarding chemical sector
The Government (hereinafter referred to as "Goverment") issued Decree 82/2022/ND-CP (hereinafter referred to as "Decree") amending and supplementing a number of articles of Decree No. 113/2017/ Decree-CP dated October 9, 2017 of the Government detailing and guiding the implementation of a number of articles of the Law on Chemicals.
The order and procedures for appraisal and issue of the Certificate of eligibility (Article 1.3 of the Decree) are as follows:
- Organizations and individuals that apply for the Certificate of eligibility to make 01 set of document and send them by post or directly or via the online public service system to the competent agency which issue the Certificate as prescribed in Clause 4 of this Article;
- In case the document is incomplete and invalid, within 03 working days from the date of receiving the document, the competent agency which issue the Certificate shall notify the organization or individual to supplement and complete the document. The time for completing the application shall not be included in the time of issueing the Certificate specified at Points c and d of this Clause;
- In case the chemical production and trading facilities of an organization or individual is located in the locality and is located at the head office, within 12 working days from the date of receipt of a complete and valid dossier specified in Clause 1, Clauses 2 and 3 of this Article, the certificate-issueing agency is responsible for reviewing and appraising the application, checking the actual conditions and issueing the Certificate of eligibility to the organization or individual. In case of refusal to issue the Certificate, the competent agency which issue the Certificate must reply in writing, clearly stating the reason;
- In case an organization or individual has a chemical production or business facilities in a locality different from that of the locality where its head office is located, within 03 working days from the date of receipt of a complete and valid dossier specified in Clause 1, Clauses 2 and 3 of this Article, the competent agency which issue the Certificate is responsible for sending a copy of the application file for the Certificate of the organization or individual for opinions of the local Department of Industry and Trade where the organization or individual locates chemical production and trading facilities. Within 09 working days from the date of receipt of the copy of the document, the Departments of Industry and Trade where organizations and individuals locate chemical production and trading facilities shall have to check the actual conditions of chemical production and trading facilities in their respective management areas and give written opinions on the satisfaction of conditions specified in Clauses 1 and 2, Article 9 of this Decree. The competent agency which issue the Certificate is responsible for reviewing and appraising the application and issueing the Certificate of eligibility to the organization or individual no later than 03 working days from the receipt's date of the document from the local Department of Industry and Trade of the locality where the organization or individual locates the chemical production and trading establishment on the satisfaction of the conditions, and at the same time sends 01 copy to the Department of Industry and Trade where the organization or individual locates chemical production and trading facilities for coordination in management. The form of the Certificate is specified in Appendix VI issued with this Decree. In case of refusal to issue the Certificate, the competent agency which issue the Certificate must reply in writing, clearly stating the reason.
The Decree takes effect from 22 December 2022.
We hope you found this brief legal update informative.
Kind regards./.
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