Monthly Legal Update - November, 2009

• Licensing of karaoke parlours, discos to resume

The Government issued Decree No 103/2009/ND-CP on November 6, lifting the ban on the issuance of business licences for karaoke parlours and discos instituted in 2005.

Effective January 1, provinces and centrally-administered cities are now permitted to issue business registration certificates and licences in conformity with approved master plans under the conditions that the licensed establishment is at least 200m from a school, hospital or State office and cease operations by midnight daily. Discos must have at least 80sq.m of floor space and satisfy regulations regarding fire safety, sound levels and lighting. The director or manager must also have at least an intermediate level of culture specialisation.

• Decree sets new fines for land use violations

The Government issued Decree No 105/2009/ND-CP on November 11, providing sanctions for land-related administrative violations. Fine levels shall be specified according to a rule of converting the value of a land-use right to a monetary equivalent pursuant to values set by the provincial People Committee at the time of the sanction and will be divided into four rates.

The lowest is applied to agricultural land (of a value of less than VND30 million) and for non-agricultural land (of value of more than VND150 million). The highest is applied to agricultural land (of value from 200 million VND and over) and non-agricultural land (of value of from VND1 billion and over).

Under the decree, which takes effect on January 1, a fine of up to VND300 million is applied to improper uses of land, and a fine of up to VND500 million is applied to trespasses on land.

• Minimum wage increased

The Government has issued Decree No 97/2009/ND-CP, increasing the minimum wage for employees of Vietnamese enterprises, co-operatives, farms, household businesses, individuals and organisations, and Decree No 98/2009/ND-CP, increasing the minimum wage for Vietnamese employees of foreign-invested enterprises, foreign individuals and organisations, and international organisations in Viet Nam.

Effective January 1, the minimum wage for employees within the scope of Decree No 97 is VND730,00 to VND980,000 per month, depending on the geographical area. The minimum wage for employees within the scope of Decree No 98 is VND1 million to VND1.34 million per month.

• New tax laws to finally take effect, says Government
  

The Government issued Resolution No 54/NQ-CP following its monthly meeting for October, deciding to end the 2009 tax reduction and exemption policies adopted to help stimulate the economy, while continuing to delay the implementation of new tax laws for small- and medium-sized enterprises, enterprises in the textile, garment and footwear industries, and enterprises that maintained a high level of employees during the first quarter of 2010.

• New regulations on land-use rights, deeds

The Government issued Decree No 88-2009-ND-CP on October 19 on issuance of certificates of land-use rights, home ownership and ownership of assets attached to the land. The decree also covers construction works and plantation forest land. It also provides guidelines on procedures for Vietnamese residing overseas who have home ownership rights to obtain ownership certificates.
The decree stipulates that (i) a land-use rights certificate be issued within 50 days of a complete and valid application file; (ii) an amended home or fixed assets ownership certificate within 30 days; and (iii) a new such certificate within 20 days.

• New rules on construction bidding

The Government issued Decree No 85/2009/ND-CP on October 15 guiding the Law on Tendering and regulations for selecting construction contractors under the Law on Construction. Taking effect on December 1, the decree sets out details on the prequalification of contractors; extensive bidding regulations and bidding restrictions on consulting services and procurement packages; and decentralisation of responsibilities for evaluation and approval of bids, to ensure fair competition in bidding.

Under the decree, a contractor is required to be independent from other contractors and investors by satisfying two conditions: the contractor is (i) an enterprise established under the Law on Enterprise and (ii) not directly under the control of a mother company which set up the contractor's enterprise or that holds more than 30 per cent of shares or contributed capital in such enterprise.

• Governing retail petrol prices, distribution

The Government issued Decree No 84/2009/ND-CP on September 17 setting forth stricter rules on the adjustment of retail petrol and petroleum prices. The decree also applies to the exportation of petrol and unrefined petroleum products produced inland; imported products; temporary import, transit and re-export of such goods; production and processing of such products for export; and domestic distribution, including warehouse services, port leasing, receiving, maintaining and transportation.

This decree also provides for processing and conditions for granting trading licences, rights and obligations of exporters, importers, distributors and service providers, and principles of setting retail sale prices.