Asia Counsel Insights provide an overview of the key trending legal and business issues in Vietnam and how they may impact your business. Please enjoy your read.
- From 1 July 2016, many significant laws will take effect such as the Criminal Code, the Criminal Procedure Code and the Civil Procedure Code.
- Borrowers must report the status of implementation of its non-Government guaranteed loans in Q2 by 5 July.
Small and Medium Enterprises
The Government has posted the fourth draft of the Law on SMEs on its website for public opinion. Key points of the draft law are below.
- The State encourages commercial banks to increase the outstanding loan balance for SMEs.
- SMEs having a feasible business plan can have access to a loan from the SME Development Fund.
- The Government encourages the establishment of start-up investment funds (“SIF”) to contribute capital to, purchase shares from start-ups. SIF that mobilize at least VND10 billion from private investors may request the State to invest in such SIF.
- A start-up SME in preferential industry will enjoy the corporate income tax rate that is 5% less than the normal rate under the corporate tax law.
Improvement on Administrative Procedures
The Ministry of Industry and Trade has issued Circular 04/2016/TT-BCT to amend and simplify some administrative procedures in specific sectors such as e-commerce, chemicals, franchising and electricity.
Some notable changes are:
- Enterprises are no longer required to submit the following documents in order to apply for a trading license for wine trading and distribution: (i) report on business results during the last three consecutive years; (ii) list of contracts with any wine manufacturers or other wine distributors; and (iii) information on the paid taxes.
- In many of the licensing applications involving franchising and ecommerce, the submission of a copy of a document is accepted if the original document is presented.
This Circular comes into effect as of 20 July 2016.
For more information, please click Asia Counsel Insights 17 June 2016.
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