Legal Document Updates in English

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FINANCE – BANKING

05 CRITERIA FOR RANKING AND POINTS FOR PEOPLE’S CREDIT FUNDS

The State Bank of Vietnam issued the Circular No. 42/2016/TT-NHNN dated December 30, 2016 promulgating on ranking of People’s Credit Funds.
Accordingly, the ranking will be out of 100 points, and it will be allocated for each criteria as follows: equity: 10 points; Asset Quality: 30 points; Administration, Management and Control: 30 points; Business Results: 10 points; Solvency: 20 points. People’s Credit Funds shall be ranked as follows
Rank A (Good) with total points of 80 points or more; Rank B (Fairly good) with total points of from 70 points to under 80 points; Rank C (Average) with total points of from 60 points to under 70 points; Rank D (weak) with total points of under 60 points. If a People’s credit fund were to receive zero points in one criteria or from two component criteria it would lose one rank.
This Circular takes effect on May 01, 2017

METHOD FOR INTEREST OF CREDIT INSTITUTION

On December 30, 2016, the State Bank of Vietnam issued the Circular No. 38/2016/TT-NHNN on methods of calculating and accounting of revenues and payments of interests in depositing and lending operations between the State Bank of Vietnam and credit institutions and other organizations.
Accordingly, the State Bank and other organizations will calculate interest of each interest period, daily interest equals opening deposit balance of other organization multiplied by interest rate and then divided by 365 days. Within that, interest in interest period equals (=) total daily interest of all days in the interest period.
The State Bank and credit institutions will calculate an interest of each interest period as follows, interest equals deposit balance eligible for interest x number of days
maintaining reserve requirement x interest rate divided by 365. Within that number of days maintaining reserve requirement: number of days in which the same interest rate of reserve maintenance period in the interest period. Interest rate: interest rate of deposits of credit institutions decided by the Governor of the State Bank in each period (% per year).
Also in accordance with this Circular, up to the due date in which a part of or full of principal and/or interests as agreed upon in the contract must be repaid but the credit institution fails to repay full of principal and/or interests to the State Bank, the State Bank shall mark the amount of unpaid principal and/or interests as overdue debt.
This Circular takes effect on February 15, 2017.

AT LEAST 10 DAYS PRIOR TO THE OFFICIAL PROVISION OF INTERNET BANKING SERVICES

This is the important content prescribed at the Circular No. 35/2016/TT-NHNN dated December 29, 2016 of the State Bank of Vietnam on safety and confidentiality over provision of banking services on the internet.
In particular, providers of Internet Banking services shall send reports in writing to Information Technology Administration affiliated to the State bank of Vietnam. In the report on provision of Internet Banking services, time limit for submission: At least 10 days prior to the official provision of Internet Banking services, contents of report; website address or application store; the products and services currently offered; the official date of provision; unit providing for Internet Banking system products. The service providers shall submit irregular reports when the unsafe incidents occur or affecting the operation of the Internet Banking system within 05 days from the time of the accident or of incident detection, in particular; time and place of occurrence of incidents; preliminary description of the incidents, the status of the incidents when they occur; the cause of the problem; assessment of risk, the impact on Internet Banking system and other involved systems…
The service provider must adopt measures for ensure the safety and confidentiality of clients’ database, at least containing sensitive data of clients upon storage or transmission on the Internet must be encrypted or hidden; establish access right according to functions and tasks of personnel in charge of accessing clients’ database; and adopt monitoring measure upon each access; implement measures for managing access to equipment and device that store clients’ information to prevent the risks of exposure of clients’ information.
This Circular takes effect on July 01, 2017

TRANSPORTATION

PURCHASE, SALE AND BUILDING OF SHIPS ARE SPECIFIC INVESTMENT ACTIVITIES

On December 27, 2016, the Government issued the Decree No. 171/2016/ND-CP on registration, deregistration, purchase, sale and building of ships.
In particular, the purchase of ship with state funding shall be performed in accordance with regulations of the Law on bidding. If all regulations of the Law on bidding have been applied but no ship is selected, the form of competitive offering shall be adopted in conformity with the international practices with the participation of at least 03 offering parties who are the ship sellers or brokers. The purchase, sale and building of ships with other sources of funding shall be subject to decisions of enterprises, organizations or individuals concerned.
Another important contents are that age limits of used foreign ships registered in Vietnam for the first time. Age limits of used foreign-flagged ships, submarines, submersibles, floating production storage and offloading units, and mobile offshore drilling units which are registered in Vietnam for the first time shall be provided for as: passenger ships, submarines and submersibles: 10 years of age; other ships, floating production storage and offloading units, and mobile offshore drilling units: Not more than 15 years of age; in special cases, age limits shall be decided by Minister of Transport provided it shall not exceed 20 years and only apply to chemical tankers, ships carrying liquefied gases, oil tankers or floating production storage and offloading units.
Also in accordance with the regulations of this Decree, the ships purchased or newly built of state-owned enterprises or enterprises with state contributions must be registered for sailing under the Vietnamese flag in conformity with regulations herein. A ship under the ownership of a Vietnamese entity without the state funding may be registered for sailing under the foreign flag according to the ship owner’s decision. Within 30 days as from the date of registry of ship for sailing under the foreign flag, the ship owner must send a copy of Certificate of registry of ship to the Vietnam Registrar of Ship for management.
This Decree takes effect on July 01, 2017.

ORGANIZATIONAL STRUCTURE

TO CHANGE ORGANIZATIONAL STRUCTURE OF THE GOVERNMENT OFFICE

This is the content prescribed at the Decree No. 150/2016/ND-CP dated November 11, 2016 defining the functions, tasks, powers and organizational structure of the Government Office, replaces the Decree No. 74/2012/ND-CP dated September 29, 2012.
In particular, the Decree stipulates that the organizational structure of the Government Office includes 21 units instead of 19 units as in previous regulations. There are some units has just been added such as the Department for Industry; the Department for Agriculture and the Agency of Administrative Procedure Control.
Other units such as the Internal Affairs Department; the Department for the National Assembly, Localities and Mass Organizations Affairs; the General Affairs Department; the Department for State Administrative Organization and Public Duties; the Legal Department; the International Relations Department; the Department of General Economy; the Department for Science, Education and Cultural-Social Affairs; the Enterprise Renewal Department…stay the same.
Also in accordance with regulations in this Decree, the Government Office is a ministerial-level agency of the Government and an apparatus assisting the Government and Prime Minister.
The Government Office functions to advise on general affairs and coordinate activities in order to assist the Government and Prime Minister (including Deputy Prime Ministers) in organizing the Government’s general activities and leading, directing and administering the operation of the Government and the state administrative system from the central to grassroots level to ensure a unified, well-functioning, continuous national administration system; control administrative procedures; provide information and build an e-government to serve the Government’s and Prime Minister’s leading, direction and administration work and provide information to the public in accordance with law; and ensure physical, technical and logistical conditions for the operation of the Government and Prime Minister.
This Decree takes effect on December 15, 2016.

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