1. DECREE 05/2019/ND-CP
“Regulations on internal audit”
Decree 05/2019/ND-CP (“Decree 05”) stipulated by the Government on internal audit (“IA”) is effective as of 01/04/2019.
Decree 05 provides detail on IA; duties, responsibilities and power of IA department, IA conductors; responsibilities of the parties regarding IA; state management on IA. The Decree is considered the very first legal framework on IA in state authorities, state-owned public service units and enterprises.
Pursuant to Decree 05, IA is compulsory to the following enterprises:
- Listed companies;
- Enterprises with more than 50% of charter capital held by the State as parent company, which operate in a parent – subsidiary model;
- State enterprises being parent companies, which operate in a parent – subsidiary model;
The abovementioned enterprises may hire independent audit organizations to provide audit services. However, compliance with fundamental internal audit principles and other requirements for assuring conformance to fundamental internal audit principles must be ensured in accordance with the Decree.
Other enterprises are encouraged to carry out IA.
2. DECREE 29/2019/ND-CP
“Simplifying conditions for issuance of License of outsourcing”
Decree No. 29/2019/ND-CP (“Decree 29”) dated 20/03/2019 of the Governing providing guidelines for implementation of Clause 3 Article 54 of the Labor Code on licensing of outsourcing services, deposit payment and list of permissible outsourced jobs, takes effect as of 05/05/2019 and replaces Decree No. 55/2013/ND-CP (“Decree 55”).
Accordingly, the conditions for issuance of License include:
- The legal representative of the outsourcing enterprise must sastify the following requirements:
- Being the manager of the enterprise;
- Having no criminal records;
- Having worked in the field of outsourcing or labor supply at least 03 years within the 05 years preceding the date of application for the license.
- The enterprise has made payment of deposit of 2,000,000,000 dong at a commercial bank or branch of a foreign bank operating in Vietnam.
In comparison with Decree 55, the new Decree has abolished the legal capital requirement of 2,000,000,000 dong and conditions regarding the location of headquarter, branch, representative office of the enterprise.
In addition, the term of the License has been increased to a maximum of 60 months, from the former term being only 36 months.
3. DECREE 23/2019/ND-CP
“Guidance on cases requiring license for conducting exhibition activities”
Decree No. 23/2019/ND-CP (“Decree 23”) dated 26/02/2019 of the Government regulating exhibition activities takes effect as of 15/04/2019.
Accordingly, individuals, organizations conducting exhibitions must apply for license in the following cases:
- Exhibitions organized overseas by Vietnamese organizations or individuals;
- Exhibitions organized in Vietnam by international organizations or foreign organizations and individuals.
In addition, Decree 23 also stipulates cases requiring the exhibition organizers to send a Notice of organization:
- To the Ministry of Culture, Sports and Tourism for:
- Exhibitions organized in Vietnam by central authorities;
- Exhibitions jointly organized in Vietnam by organizations in 2 or more than 2 provinces or cities.
- To the Department of Culture, Sports and Tourism for: Exhibitions organized in local authorities by local organizations or individuals.
However, the aforementioned regulations and other regulations of Decree 23 do not apply to the following exhibitions:
- Art, photography; publications, precious objects, antiques; in museum system; national and local socio-economic achievements;
- Works, exhibits, documents of internal nature.
4. DECREE 24/2019/ND-CP
“Recent changes regarding adoption”
Decree No. 24/2019/ND-CP (“Decree 24”) dated 05/3/2019 of the Government amending, supplementing several provisions of Decree No. 19/2011/ND-CP (“Decree 19”) dated 21/03/2011 of the Government providing detailed regulations on certain articles of the Law on Child adoption, takes effect as of 25/04/2019.
First of all, regarding the authority for registration of adoption in cases of step-father or step-mother adopting their step-child; aunt, uncle adopting their newphew/niece, the commune People’s Committee (“PC”) of the place where the adopter or adoptee resides shall register the adoption. Previously, only the PC where the adopter resides is authorized for such procedure.
Secondly, regarding the search for adopters, Decree 24 no longer categorizes children into List 1 and List 2 as previously stipulated in Decree 19. In stead, the commune PC is responsible for monthly review and assessment of the necessity for adoption. Thirdly, regarding the conditions to be adopted abroad, Decree 24 has supplmented the case of (i) abandoned children, whose parents are verifiable by the provincial Police and contactable by the Department of Justice, the the Department of Justice shall obtain opinions from such parents before confirming that the children are eligible for adoption; (ii) in case it is impossible to contact parents, the Department of Justice lists at its head office within 60 days from the date of receipt of verification results, and at the same time, the commune People’s Committee where the parents last resided shall also list at its head office for the adoption of children within 60 days as of receiving the written request from the Department of Justice.
5. DECREE 30/2019/ND-CP
“Supplementing regulations on determining the time of arrangement for usage of old state-owned houses”
Decree 30/2019/ND-CP (“Decree 30”) dated 28/03/2019 of the Government amending and supplementing several articles of Decree 99/2015/ND-CP specifcying and guiding the implementation of several articles of the Law on Housing, is effective as of 15/05/2019.
Accordingly, the time of arrangement for usage of old state-owned houses in case the house is actually being used, there is a lease contract and the user’s name is in the contract, is determined as follows:
- Pursuant to the time stated in the contract (if any);
- Pursuant to the time of signing the contract if the contract does not state the time of arrangement;
- Pursuant to the time stated in the first contract, if the lease contract is renewed or resigned;
- Pursuant to the time of rent payment if the person directly using the house has documents proving that he/she has paid the rent before signing the contract; in case the competent agency has collected the housing rent (with proof) prior to signing of the contract, it shall be determined pursuant to the time of calculating the rent for collection; and
- Pursuant to the time stated in Resolution/document of arrangement for usage if the person directly using the house has resolution or document of arrangement for usage and his/her name is stated in such document prioir to signing of the contract; if the Resolution/document of arrangement for usage does not state the time, it shall be determined pursuant to the time of issuing such document.
In case of actual usage without lease contract but the user’s name is stated in the document of arrangement for usage, the time of arrangement is determined pursuant to the time stated in such document; if no time is stated in the document, it is shall be determined pursuant to the time of issuance.
In case of actual usage in the form of transfer of rental right (with contract or document of arrangement for usage but the user’s name is not stated in such contract or document), the time of arrangement shall be determined pursuant to the time the first person is named in the contract or document of arrangement for usage.
6. CIRCULAR 03/2019/TT-NHNN
“More persons are permitted to use foreign currency within the territory of Vietnam”
Circular 03/2019/TT-NHNN (“Circular 03”) of the State Bank of Vietnam amending and supplementing Circular 32/2013/TT-NHNN dated 26/12/2013 of the State Bank of Vietnam, providing guidance for implementation of restrictions on usage of foreign currency within the territory of Vietnam, is effective as of 13/05/2019.
Circular 03 supplemented several cases where usage of foreign currency by non-resident within the territory of Vietnam is permitted. Specifically, foreign investors may deposit in foreign currency via wire transfer upon participation of auction in the following situations:
- Acquisition of shares in state-owned enterprises subject to equitization as approved by the Prime Minister;
- Acquisition of shares, capital contribution of the state in state-owned enterprises, enterprises with state capital subject o divestiture as approved by the Prime Minister;
- Acquisition of shares, capital contribution of state-owned enterprises investing in other enterprises subject to divestiture as approved by the Prime Minister.
Simultaneously, Circular 03 stipulates that in case of winning the auction, foreign investors shall transfer investment capital in accordance with the laws on foreign exchange management to pay the value of the acquired shares, contributed capital. In case of unsuccessful auction, foreign investors may remit the deposit made in foreign currency overseas after subtracting any arising expenses (if any).
7. DECREE 31/2019/ND-CP
“Regulations on taking disciplinary actions against cadres, civil servants and public employees violating the laws on denunciation”
Decree No. 31/2019/ND-CP (“Decree 31”) promulgated by the Government replacing Decree No. 76/2012/ND-CP, specifying several provisions and measures for implementation of the Law on Denunciation, takes effect as of 26/05/2019.
Accordingly, if cadres, civil servants and public employees, who have the authority to settle denunciations, violate the laws of denunciation, then they shall be subject to disciplinary actions corresponding to the nature and degree of their violations, in accordance with the laws and regulations of Decree 31 or subject to criminal prosecution. Should they cause damages, they shall compensate in accordance with the laws on State compensation liability.
Disciplinary actions against individuals authorized to handle denunciation include:
- warning; and
In addition, cadre, civil servant or public employee who, despite acknowledging that their denunciation is untruthful or that such denunciation has been duly handled by competent authorities, make denunciation several times without any evidence; pressure, persuade, incite, or bribe other persons to make untruthful denunciations; use another person’s name to make denunciation and thereby harm internal solidarity, shall be subject to disciplinary penalties or criminal prosecution according the the nature and degree of their violations.