Update on new regulations in July 2024

Our Newsletter #24 would lead you on the following:

LEGAL UPDATE

I. Detailed regulations on several articles of the Law on Consumer Rights Protection 2023

On 16 May 2024, the Government issued Decree No. 55/2024/ND-CP on elaboration on the Law on Protection of Consumers’ Rights 2023 which includes several notable points as follows:

1. Responsibility of enterprises regarding defective products and goods

1. Defective Products and Goods (“Defective Goods”) refer to products or goods that do not guarantee safety for consumers (“Consumers”) and have the potential to cause harm to life, health, or property of Consumers. These defects were not detected at the time such goods were supplied to Consumers, even though such goods were manufactured according to existing standards and technical regulations.
2. Enterprise responsibilities for Defective Goods correspond to two groups as follows:
   1. For Defective Goods in Group A – these are products or goods with the potential to harm the life or health of Consumers: Within 3 working days from the time of discovering Defective Goods or receiving a recall request from the competent authority, the enterprise must publicly announce the Defective Goods and the recall process as follows:
      • Display information at business headquarters, business locations, and on electronic information websites or applications (if available) until the recall process is completed; and
      • Publish notices for at least 5 consecutive issues or 5 consecutive days on radio, television, print media, and electronic media at central and local levels where the goods are circulated.
   2. For Defective Goods in Group B – these are products or goods with the potential to harm the property of Consumers: Within 5 working days from the time of discovering Defective Goods or receiving a recall request from the competent authority, the enterprise must publicly announce the Defective Goods and the recall process as follows: Display information at the business headquarters, business locations, and on electronic information websites or applications (if available) until the recall process is completed.
3. In cases where Defective Goods pose a risk to life, health, or property of Consumers, similar public notification rules apply as for the Defective Goods in Group A mentioned in Section I.(ii).(a) above.

2. Enterprise obligation to report to competent authorities regarding the recall of Defective Goods

Before proceeding with the recall of Defective Goods, enterprises are responsible for submitting a report, using Form 08 as prescribed, to the competent authority.

Within 5 working days from the completion of the Defective Goods recall process or from the date of receiving a reporting request from the competent authority, the enterprise must submit a report on the results of the recall according to Form 09 specified for that competent authority.

3. Sources of information and data for specifying groups of defective goods

The specific identification of Defective Goods groups can be based on one or several of the following sources of information or data:

1. Notifications and alerts from competent authorities of other countries and territories;
2. Notifications and alerts from international organizations of which Vietnam is a member state;
3. Court judgments and decisions;
4. Information and alerts from specialized state management agencies;
5. Decisions on the recall of defective products and goods that are still in effect by the competent authority;
6. Determination by the enterprise itself regarding the Defective Goods group; and
7. Other sources of information and data that can demonstrate authenticity or have sufficient scientific basis.

II. Detailed regulations on several articles and measures to implement the Law on Fire Prevention and Fighting

On 10 May 2024, the Government issued Decree No. 50/2024/ND-CP amending and supplementing certain provisions of Decree No. 136/2020/ND-CP, which provides detailed regulations on certain articles and measures for implementing the Law on Fire Prevention and Firefighting (“FPF”) (hereinafter referred to as “Decree 50”). Noteworthy points from this decree include:

1. Adjustment of the subject requiring FPF design approval

Compared to Decree No. 132/2020/ND-CP (“Decree 132”), Decree 50 removes “urban construction planning projects/adjustments to urban construction planning for economic zones, industrial zones, industrial clusters, export processing zones, and high-tech zones” from the group of subjects requiring FPF design approval.

Additionally, projects, constructions, and motorized transport vehicles listed in Appendix V of Decree 132 also fall under the category requiring FPF design approval. However, Decree 50 abolishes Appendix V of Decree 132 and introduces a replacement Appendix V.

Therefore, according to Decree 50, the subjects requiring FPF design approval fall into two groups:

1. Projects, constructions, and motorized transport vehicles listed in Appendix V of Decree 50 when newly constructed, renovated, or modified in a way that leads to one of the following cases:
   • Increasing the number of floors or the fire compartment area;
   • Changing the type or location of escape staircases;
   • Reducing the number of escape routes for floors, fire compartments, and structures;
   • Installing new or replacing fire alarm systems, or installing new or replacing fire suppression systems; and
   • Modifying functions to enhance fire safety requirements for building floors, fire compartments, and structures.
2. Motorized transport vehicles with special requirements listed in Item 19 of Appendix V of Decree 50 when newly manufactured or modified, affecting fire safety requirements.

2. Adjustment of approval time for FPF design

The approval time for FPF design is calculated from the date of receiving complete and valid documents, as follows:

1. Technical design or construction drawing design: Not exceeding 15 working days for national important projects, group A projects, and important constructions; not exceeding 10 working days for other projects and constructions; and
2. Technical design for motorized transport vehicles with special fire safety requirements: Not exceeding 10 working days.

3. Clear division of authority for approval of FPF design

Unlike Decree 132, which determined the authority for approving FPF design by classifying projects, constructions, and motorized transport vehicles based on their nature, Decree 50 has issued 02 new appendices to clearly define the authority of the Fire Prevention, Firefighting, and Rescue Police (“Fire Police”) as follows:

1. Appendix Va of Decree 50: Specifies the list of projects and constructions falling under the approval authority for FPF design by the Fire Police Department; and
2. Appendix Vb of Decree 50: Specifies the list of projects, constructions, and motorized transport vehicles falling under the approval authority for FPF design by the Fire Police Division.

III. Detailed regulations on Decree No. 52/2024/ND-CP regarding non-cash payments

On 15 May 2024, the Government issued Decree No. 52/2024/ND-CP, which regulates non-cash payments, which includes 3 notable points as follows:

1. Non-cash payment services

“Cashless payment services” (hereinafter referred to as “Payment Services”) include payment services through clients’ payment accounts and payment services not through clients’ payment accounts, in which:

1. Payment Services through clients’ payment accounts refer to the provision of payment instruments; implementation of payment services concerning cheques, payment orders, payment authorizations, collection orders, collection authorizations, bank cards, money transfers, collection and payment services, and other payment services for clients through their payment accounts; and
2. Payment Services not through clients’ payment accounts refer to the provision of payment services and implementation of transactions that are not through clients’ payment accounts.

2. Providers of Payment Services

1. Providers of Payment Services through payment accounts of client, including:
   1. State Bank of Vietnam (“SBV”) provides Payment Services for clients opening payment accounts at SBV;
   2. Commercial banks, foreign bank branches, and policy banks provide all payment services prescribed in Item III.1.(I) above; and
   3. Cooperative banks may provide specific Payment Services prescribed in Item III.1.(a) above in their establishment and operation licenses issued by SBV.
2. Providers of Payment Services not through payment accounts of client:
   1. Commercial banks, foreign bank branches, and policy banks;
   2. Cooperative banks may provide specific payment services not through payment accounts of clients as specified in their establishment and operation licenses issued by SBV;
   3. People’s credit funds may provide specific money transfer, collection, and payment services for their members and clients as specified in their establishment and operation licenses issued by SBV;
   4. Microfinance organizations may provide specific money transfer, collection, and payment services for their members and clients as specified in their establishment and operation licenses issued by SBV; and
   5. Public postal service providers may provide money transfer, collection, and payment services when they meet the requirements prescribed in Article 19 of this Decree and receive written approval from SBV.

3. Payment intermediary services and conditions for providing payment intermediary services

1. Payment intermediary services include financial switch services, international financial switch services, electronic clearing services, e-wallet services, collection and payment services, and electronic payment portal services.
2. Providers of Payment intermediary services are non-bank organizations or foreign bank branches licensed to provide payment intermediary services by SBV.
3. To be granted a License to provide intermediary payment services by SBV, the providers of payment intermediary services must meet the following conditions:
   1. Have an establishment license or certificate of enterprise registration;
   2. Meet the conditions for actually contributed or allocated charter capital according to Decree No. 52/2024/ND-CP;
   3. Have schemes to provide payment intermediary services approved;
   4. Meet personnel conditions according to Decree No. 52/2024/ND-CP;
   5. Have a presentation of technical measures to serve the provision of payment intermediary services requested for licenses approved; and
   6. Meet other conditions corresponding to each type of payment intermediary services under Decree No. 52/2024/ND-CP.

IV. Providing and publishing of information on selection of contractors, and forms of bidding documents on Vietnam National E-Procurement System

On 26 April 2024, Planning and Investment promulgated a Circular on guidelines for provision and publishing of information on selection of contractors and forms of bidding documents on Vietnam National E-Procurement System (“System”) with several notable points as follows:

1. Responsibilities of bidders throughout the process of participation in bidding

The bidders are responsible for the accuracy of the information declared on the webform https://muasamcong.mpi.gov.vn and the attached documents throughout the process of participation in the bidding. The bidders enter information as required and ensure a number of requirements regarding the validity of the information as follows:

1. Regarding bid security, the bidders shall declare information and attach a scanned copy of the bid security. For the remaining content in the bid, the bidders only declare information on the webform without attaching scanned copies of related documents and materials.
2. Regarding information about qualifications of the bidders:
   1. Regarding financial requirements: the bidders shall declare information; if the bidders use a credit extension commitment to prove financial resources, in addition to the compulsory declaration of information, the bidders shall attach a scanned copy of the credit extension commitment;
   2. Regarding annual revenue, net asset value: from 2021 onwards, the System will automatically extract figures on financial statements from the National Enterprise Registration Information System, the Electronic Tax System to qualification documents of the bidders;
   3. Regarding other contents: the bidders shall only declare the information on the webform and are not required to attach scanned copies of relevant documents; and
   4. Regarding figures on financial statements from 2021 onwards: if the bidders discover that the figures have not yet been updated on the System are not consistent with those on the Electronic Tax System from 2021 onwards, the bidders shall modify such figures; If the figures updated or modified by the bidders on the System are not consistent with the figures on the Electronic Tax System, thereby resulting in misleading results of contractor selection, it shall be considered fraud.
3. Register to join the System to ensure eligibility.

2. Bid opening for the e-selection of contractors

1. Regarding packages adopting single-stage one-envelope procedure: The procuring entity shall open the bid and publicize the bid opening record on the System within 2 hours from the deadline for submission of bids.
2. Regarding packages adopting single-stage two-envelope procedure:
   1. The bidding party must open technical proposals online and publish the record of opening on the System within no more than 02 hours from the time of bid closing;
   2. After issuance of the decision on approval for the list of bidders who meet the technical requirements, the procuring entity shall publish this list on the System and attach a scanned copy of the written approval for the list of bidders who meet the technical requirements on the System. After the list is successfully published, a notification will be sent to the bidders for the packages; and
   3. After publishing the list of bidders who meet the technical requirements, the procuring entity shall open an e-financial proposal of the bidders included in the list and publicize the e-financial proposal opening record on the System.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.

Date: 31 July 2024

Writer: BLawyers Vietnam

Legal News and Update Team

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CONTACT US

✍ Legal News and Update Team
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Newsletter #24 (EN version)

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