New regulations on special financial supervision over State-owned enterprises, the establishment of social enterprises, the competence of environmental police, and the implementation of the revised Law on Investment are among new policies taking effect in December.
Special financial supervision
Under Decree No. 87/2015/ND-CP dated October 6, 2015, the Ministry of Finance (MOF) will be responsible for coordinating with other related ministries and sectors in performing the supervision of state capital investment in enterprises.
The new regulation also lays out five criteria for assessing efficiency of enterprises’ operation, including turnover; after-tax profits and return-on-equity ratio; overdue debts and capacity to pay due debts; observance of the law on investment, management and use of state capital, laws on taxes and other budget remittances, and regulations on financial statements and reports for financial supervision; and provision of public-utility products and services.
The Decree also requires financial information to be made public on a regular basis based on biannual and annual financial statements.
State-owned enterprises (SOEs) may be put under special financial supervision if signs of financial instability are detected.
SOEs banned from capital contribution to real estate, banking sectors
The Government Decree No. 91/2015/ND-CP bans SOEs from contributing capital or investing in real estate business, or purchasing shares of insurance companies, banks, securities companies, venture capital funds and securities investment funds, except those permitted by the Prime Minister.
SOEs that have invested in those fields will be forced to divest, according to the Decree.
Extension of passport duration
According to the Government Decree No. 94/2015/ND-CP dated October 16, 2015, the validity of diplomatic and official passports shall be five years since the date of issuance.
The above passports shall be extended for only one time and the maximum duration of extension is three years.
The Government Decree 96/2015/ND-CP dated October 19,2015 encourages the establishment of social enterprises to deal with social and environmental issues for community benefits.
The Government on October 19, 2015 issued Decree No.97/2015/ND-CP on management of title and position holders at wholly state-owned single-member limited liability companies.
Management and operation of airports
The Government on October 20, 2015 issued Decree No 102/2015/ND-CP on the management and operation of airports in Viet Nam.
The decree stipulates the principles and responsibility of agencies and units to manage, plan and operate airports.
The decree also includes regulations on opening and closing procedures for airports; the management and operation of airports and nearby areas, and shared airports for military and civilian purposes; sales, collateral, rental and capital contribution with assets related to airport land; and business activities in airports.
According to the Government Decree 105/2015/ND-CP on October 20, 2015, environmental police forces shall be responsible for handling crimes and administrative violations pertaining to environmental protection, natural resources, and food safety discovered during the cooperation.
They shall have to cooperate with agencies and units affiliated to relevant ministries and bodies in inspecting, discovering, dealing with crimes and administrative violations pertaining to environmental protection, natural resources, and food safety;
Processing zones, processing enterprises
Under the Government Decree No. 114/2015/ND-CP dated November 9, 2015, processing zones and enterprises may apply legal provisions applicable to non-tariff areas excluding separate preference for border gate economic zones.
Processing enterprises are stipulated in investment registrationlicenses or document of competent registration agencies in case they are not subjected to comply with investment registration procedures.
Detailed implementation of revised Law on Investment
The Government Decree No. 118/2015/NĐ-CP defines some articles of the Law on Investment, which facilitates investment procedures in forms of capital and stakes contribution for foreign investors.
Foreign investors who buy shares in or contribute capital to economic organizations won’t have to deal with procedures involved in investment certification.
Foreign investors will themselves have to register with the planning and investment departments in localities where the economic organizations are headquartered, in the following cases:
- The economic institutions engage in business areas that are accompanied by certain conditions for foreign investment, as stipulated by the authorities.
- The stake acquisition or capital contribution increases the share of foreign investors in the economic institutions from below 51% to 51% or more; or from 51% to higher levels.