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.

Key Dates

  • 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.

Enterprise
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.

Industry
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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