Monthly Legal Update - July, 2009

• Home ownership extended to overseas Vietnamese
  

Omnibus legislation amending the Law on Housing and the Land Law was proclaimed into law on July 3 by President Nguyen Minh Triet.

The new law extends home ownership rights to overseas Vietnamese; investors of Vietnamese origin; and to those who have made an outstanding contributions to the country; scientists, cultural activists and other talented people who have been invited to work in Viet Nam; spouses of resident Vietnamese citizens; and persons of Vietnamese origin who are exempted from visa requirements.

To deter real estate speculation, however, such homeowners must use the property for themselves and their families living in Viet Nam, although they may mortgage their homes or apartments for loans from credit institutions operating within Viet Nam, and they may lease the house or apartment when unused for long periods, as well as authorise others to manage the property.

The new provisions take effect on September 1.

• Amendments simplify land ownership documentation
  

New changes to the laws on construction, tendering, environmental protection, land, housing, and enterprises, are aimed at accelerating the disbursement of capital in publically financed projects. Notably, the deadline for re-registration of foreign-invested enterprises has been extended for an additional five years.

Conditions for bidding and use of foreign labour have also been changed.

Under the amendments, land use rights and property ownership certificates will be combined into a single document. Certificates existing prior to the promulgation of this law shall remain valid without change, except in cases in which the owners request a change. The Ministry of Natural Resources and Environment will be the only agency allowed to grant the certificates. These revisions take effect on August 1.

• National Assembly passes Law on Urban Planning
  

The Law on Urban Planning was passed by the National Assembly on June 17 and will take effect next January 1. The law provides for forms of planning (including general planning, regional planning and detailed planning), agencies involved in urban planning and planning procedures.

The law requires plans to be amended when major factors alter the function or nature of urban areas, including changes in the general socio-economic development, climate, geology and hydrography. Adjustment of plans must be based on a review and assessment of current plans and follow the same procedures as required for the original plan.

The law also sets forth requirements of publicity and transparency in planning and designates responsible agencies. Under the law, a new urban plan must be publicised for at least 30 days following its official approval.

• It's official: new income tax exemptions are here to stay
  

National Assembly Resolution No. 32/2009/QH12, passed on June 19, gave taxpayers the answer to a question they've long been waiting for, making permanent a temporary waiver of personal income tax collections in the first six months of 2009.

The new Law on Personal Income Tax had been slated to take effect back on January 1, but tax collections were deferred as part of the economic stimulus package, as well as to allay controversy over new taxes on dividend income and on capital gains on securities income.

• National Assembly amends Intellectual Property Law

The National Assembly passed amendments to the Law on Intellectual Property last month, with new provisions to take effect next January 1.
The amendments make changes to provisions on copyright protection, industrial property and rights to plant varieties.

Organisations and individuals using published works or recordings that are sponsored or accompanied with advertising materials, in whatever form, do not have to obtain permissions from copyright holders or related rights holders for their use, but do have to pay royalties in an amount to be agreed upon by the parties. If the parties cannot reach such agreement, this amount will be determined by Government regulation or by the courts.

The term of copyright protection will be extended from 50 years to 75 years from the date of first publication. For cinematographic works, photographic works and works of applied art not published within 25 years of fixation, the term of protection will be 100 years from the date of fixation in a particular medium.

The time limits for examining applications to register industrial property rights have been changed as follows: no more than 18 months for an invention, 9 months for a trademark and 7 months for an industrial design.

Provisions on rights to plant varieties, including the registration process, rights of the protection certificate holders, and transfers of rights have also been modified.
The amendments also make acts of infringement of intellectual property rights subject to administrative remedies.

• Foreigners have right to request Viet Nam criminal records

Criminal records are necessary for authorities to verify whether certain persons should be barred from holding posts of trust or practising certain occupations. The National Assembly passed a new Law on Criminal Records on June 17, giving detailed provisions on the updating and maintenance of criminal records, as well as access to them. Under the new law, not only Vietnamese citizens but also foreigners presently or formerly residing in Viet Nam are entitled to ask for their criminal records. (Those still residing here can obtain them from their provincial justice departments, while those formerly residing here can obtain them from the national criminal records centre.)

The application for a copy of criminal records must be accompanied by a request for criminal records, a notarised copy of identification card or passport, and a notarised copy of the family record book or residence permit. The records are issued within 10 days of the receipt of documents. The new law will take effect on July 1, 2010.