Policies Come Into Effect In October For Border Trade Activities Between Vietnam And China
Legal News & Analysis - Asia Pacific - Vietnam - Regulatory & Compliance
23 October, 2018
A series of policies on business registration, rice export business, management of foreign exchange for border trade activities between Viet Nam and China come into force in October.
Supplementing articles on business registration
Decree 108/2018/ND-CP (Decree 108) shall replace Decree 78/2015/ND-CP of the Government on business registration. Decree 108 shall take effect on October 10.
Under Decree 108, business locations can be established in any province. An enterprise wishing to establish a business location can now send a notice in this regard to the Business Registration Office (“BRO”) of the province/city where such business is to be located.
In addition, procedures for business registration would be simplified. It will no longer be compulsory to affix an enterprise’s seal on registration forms; notices of changes of enterprise details; or on any resolutions, decisions or meeting minutes which are attached to the application file for enterprise registration. Documents authorizing individuals to carry out procedures relating to enterprise registration will no longer require notarization or certification. If the procedures for the notification of a sample seal are conducted online, the enterprise is not required to submit a hardcopy of the application file to the BRO as currently required.
Removing barriers for rice export
Decree 107/2018/ND-CP comes into effect in October, aiming to remove difficulties and legal barriers for rice businesses to expand into foreign markets.
The new regulation only requires rice exporters to have a special-use warehouse for rice storage and a rice husking and milling facility which satisfy the standards and national technical regulations set by competent agencies under the Law on Standards and Technical Regulations.
Allowing Yuan for payment at border area
Circular 19/2018/TT-NHNN on guiding about foreign exchange management for border trade activities between Viet Nam and China shall take effect since October 12.
Accordingly, the activities of trade in goods and services across the Viet Nam-China border will be allowed to make payment in freely convertible foreign currencies, Vietnamese dong (VND) or Yuan (CNY).
Viet Nam has seven provinces sharing the border with China, including Lang Son, Quang Ninh, Ha Giang, Lai Chau, Lao Cai, Cao Bang and Dien Bien. The Chinese yuan and Vietnamese dong are only used for payment in border areas of these provinces.
More people eligible for retirement
Public employees and officials can take early retirement if they do not meet new job specifications after their company gets restructured. The final decision will be made by management if employees take the retirement option.
Decree 113/2018/NĐ-CP approved by PM Nguyen Xuan Phuc shall take effect since October 15.
Financial support for farmers
Decree 116/2018/NÐ-CP on amending and supplementing a number of articles of Decree No.55/2015/ND-CP on credit policies for agricultural and rural development shall come into force on October 25.
Under the new provision, the credit institution can provide loans at a maximum of VND100 million for those who have no collateral assets, reside outside the rural areas and engage in agricultural production or business activities (it was VND50 million under the old provision). Meanwhile, individuals and households residing in rural areas will be provided with the maximum loan amount of VND200 million (previously VND100 million)./.
For further information, please contact:
Dang The Duc, Partner, Indochine Counsel