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Wednesday, January 12, 2011

New policies law in Vietnam, 2011

Many new policies that will have significant impacts on the domestic market will be applied as of January 1, 2011.
 

Gold export tariff raised to 10 percent

From January 1, 2011, under a newly released decision by the Ministry of Finance (MOF) gold materials and jewelry products with high gold content will have an export tariff of 10 percent instead of zero percent.  Besides, bar and ingot gold, powdered gold less than 99.99 percent gold will also be have an export tax rate of 10 percent instead of the current rate of zero percent.

MOF believes that the new taxation policy will help prevent enterprises from “dodging the laws”, trying to export gold bars as jewelry products. Under the State Bank’s regulations, enterprises will have to ask for permission to export gold less than 99.99 percent gold, but there is no need to ask for permission to export jewelry products with lower gold content.

Foreign bank branches allowed to mobilize capital in Vietnam dong

From January 1, 2011, Branches of foreign banks will receive equal treatment with domestic banks as per Vietnam’s commitments when it joined the WTO. Therefore, like domestic banks, foreign bank branches will also be able to mobilize capital in Vietnam dong, the one thing that they had been prohibited to do  so far.

New bank laws take effect

The law on the State Bank of Vietnam and the Law on Credit Institutions ratified by the National Assembly, will take effect on January 1, 2011.

The Law on the State Bank of Vietnam includes big changes, including the article about national monetary policies and jurisdiction to decide national monetary policies. In addition, the new law has an article stipulating capital contribution from the State Bank of Vietnam to special enterprises.

The amended Law on Credit Institutions include 10 chapters with 163 articles.

Individuals, enterprises can pay tax through Internet, Mobile services, ATM

Under the Circular No 180 released by MOF guiding electronic transactions in tax payments, from January 1, 2011, tax payers can pay taxes through electronic channels. They can make transactions at banks where they have accounts, through different channels (Internet, Mobile, ATM), or through the electronic portal of taxation agencies.

Enterprises print their own invoices

Under a newly promulgated decree dated May 14, 2010, from January 1, 2011, enterprises will must print invoices themselves instead of buying invoices from taxation bodies. The decision is believed to make a breakthrough in the mind of enterprises. From now on, enterprises will issue their own invoices, and take responsibility for issues related to their invoices. Meanwhile, enterprises no longer have to queue up to buy invoices from taxation agencies.

However, enterprises have complained that they are encountering difficulties implementing the new decision. On December 14, MOF allowed local tax agencies to increase the volume of invoices to be sold to enterprises, saying that the volume would be enough for enterprises to use until March 31, 2011. It is understood that the deadline for enterprises to use their own invoices has been delayed until the end of March instead of early 2011.

New rules on rice export

From January 1, 2010, rice export companies must follow the Decree No 109 on rice export management. The companies must meet requirements of  maintaining at least one storage with the capacity of 5000 tons of rice at minimum, and having at least one rice husking workshop with the minimum capacity of 10 tons of rice per hour.

New principles for import-export

The international trade rule, Inconterms 2010, 8th version will take effect on January 1, 2011 and includes many amendments in accordance with the international practice.

For example with Inconterms 2000, in FOB sale, sellers only took responsibility for exports until the goods reach the “ship rail”, while in Inconterm 2010, the concept has been replaced with “On Board The Vessel”.

Car imports will see tariff reductions

From January 1, 2011, the import tariff on cars sourced from ASEAN countries will decrease 13 percent under AFTA commitments.

From that time, import tariffs on vehicles that carry less than nine passengers that are  sourced from ASEAN countries will reduce from 83 percent to 70 percent.

New law allows quick settling of trade disputes

The Trade Arbitration Law will take effect as of January 1, 2011 to replace the Arbitration Ordinance which has been valid since 2003.

The new law is believed to help create a new means that allows parties to quickly settle trade disputes. The law gives more power to arbitrators (they can collect evidences and summon witnesses) and reduces the risk that arbitrators’ decision may be abrogated by the court.

The minimum wage will be 1.55 million dong

The minimum wage will be higher than the current level from January 1, 2011. The new minimum wage for foreign invested enterprises will be 1.55 million dong per month, while the level for state-owned enterprises will be 830,000 dong.

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