Bank Accounts for Foreign Loans
Effective from 15 April 2016, Circular 05/2016/TT-NHNN of the State Bank of Vietnam will amend Circular 03/2016/TT-NHNN dated 26 February 2016 regulating the foreign exchange control in respect of foreign loans.
Amendments in Circular 05 sets out the following for use of bank accounts.
- A borrower being a foreign invested company with a medium to long term loan must operate its foreign loans through a direct investment capital account (“DICA”) opened at a licensed Vietnamese bank. If the borrower has a short-term loan (of less than 12 months), the borrower can use the DICA or other loan account for the operation of the short-term loan. However, the foreign invested borrower must only have one account opened at one bank for short-term loans.
- A domestic borrower can only open one foreign loan account at one bank for any foreign loans.
New Law on Pharmaceuticals
The National Assembly passed Law No. 105/2016/QH13 on Pharmaceuticals on 6 April 2016. The new law will take effect on 1 January 2017 and repeals the 2005 Law on Pharmaceuticals.
The new law sets a comprehensive regime to govern:
- the licensing of the pharmaceutical profession;
- the licensing of pharmaceutical businesses including clinical trials, manufacturing, distribution and marketing of drugs;
- the pricing of drugs;
- drug registration and its circulation;
- traditional medicines; and
- storage of medicines.
The new law has 116 articles compared to the 73 articles that are in the 2005 law.
Click Asia Counsel Insights 4 May 2016 for more information.
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