Our Vietnam legal update #162 would lead you on 03 legal issues:
I. Newly issued, amended, supplemented administrative procedures in the field of employment
On 06 May 2021, the Ministry of Labor, War Invalids and Social Affairs issued Decision No. 526/QD-LDTBXH about announcing newly issued, amended, supplemented administrative procedures in the field of employment. Those procedures are:
Newly issued administrative procedures:
- Extension of work permits for foreign workers working in Vietnam (at state and provincial level).
Amended, supplemented administrative procedures:
- Reporting on explaining demand, changing demand for using foreign workers. (at state and provincial level).
- Issuing work permits to foreign workers working in Vietnam (at state and provincial level).
- Re-issuing work permits for foreign workers working in Vietnam (at state and provincial level).
- Confirming that workers are not subject to work permits (at state and provincial levels).
- Proposing to recruit Vietnamese workers for the positions that are expected to recruit foreign workers (provincial level only).
Those who are enterprises with their head office located in a province, city but have representative office or branch at another province, city proceed with the procedures at state-level.
The specific contents of the above procedures are mentioned in Part II of the Decision.
II. Several issues in the operations of credit institutions and foreign bank branches
The State Bank of Vietnam (“SBV”) issued the Official Letter No.3029/NHNN-TTGSNH dated 29 April 2021 on several issues in the operations of credit institutions (“CI”) and foreign bank branches with the following contents:
To ensure safety and limit risks arising from operations of CI, SBV requests CI to take the following actions:
- Strictly following the direction of SBV’s Governor on organizing the implementation of key tasks of the banking industry in 2021.
- Strictly controlling the credit growth rate following the 2021 target assigned by SBV, in line with solutions to manage monetary, credit policy, and banking activities under the direction of the SBV’s Governor.
- Strengthening the appraisal and supervision of using the loan.
- Strictly controlling the quality of credit in sectors facing potential risks, such as real estate, securities, BOT, and BT road construction projects.
- Strengthening the inspection and supervision of using capital by enterprise bond issuing to ensure it satisfies its intent.
- Continue actively handle bad debts; implement preventive measures, minimize the arising of new group 2 debt and bad debt.
- Taking drastic measures to recover bad debts, debts for which provisions are already used, and minimize losses incurred by CI, and ensure the legitimate interests of the State and shareholders.
- Actively implement solutions to prevent, detect and strictly handle violations of regulations on credit extension, handling of bad debts, handling of debts that have been used for risk provisions.
- Implement interest collection, withdrawal of accrued interests by the provisions of law, and the guiding documents of SBV to ensure that the profit reflects the actual business operation of the CI.
- Strengthening internal control of securities trading and foreign exchange activities of CI to ensure compliance with legal regulations. Coordinate with functional agencies in capturing information, promptly notify and warn in the system to take preventive measures, minimize risks and possible violations to CI.
III. Transfer profits to parent company abroad
On 14 May 2021, the Tax Department of Binh Duong issued an Official Letter No. 8296/CTBDU-TTHT to guide on transferring profits to parent company abroad. The content of the guidance is:
Foreign investors shall not be allowed to transfer abroad profits they are shared or earned from their direct investment in Vietnam in the araised profit year if in the financial statements of invested enterprises of the araised profit year still contain accumulated losses after such losses have been carried forward under the regulations on CIT.
Maybe you are interested in reading other updates: May 2021 (Part 2) | May 2021 (Part 1) | April 2021 (Part 5) | April 2021 (Part 4) | April 2021 (Part 3) | April 2021 (Part 2) | April 2021 (Part 1) | March 2021 (Part 4) | March 2021 (Part 3) | March 2021 (Part 2)