Notable documents of Vietnam in the previous week (from December 30, 2024 to January 5, 2025)

1. Vietnam to promulgate new Decree on fines for violations against road traffic regulations from 2025

On December 26, 2024, the Government of Vietnam promulgated Decree No. 168/2024/NĐ-CP on fines for administrative violations against regulations on road traffic order and safety; deduction and restoration of points of driving licenses.

This Decree provides for:

- Fines for administrative violations against regulations on road traffic order and safety, including administrative violations; forms, fines, and remedial measures for each administrative violation; power to formulate record, power to impose fines, and specific fines by each title for administrative violations against regulation on road traffic order and safety;

- Deduction levels of points of driving licenses for each administrative violation; procedures and power to deduct and restore points of driving licenses for management of compliance with the law on road traffic order and safety of drivers.

Regarding administrative violations concerning other fields under state management relevant to road traffic order and safety not prescribed in Decree No. 168/2024/NĐ-CP, apply Decrees on fines for administrative violations concerning such fields.

Regulations prescribed in Decree No. 168/2024/NĐ-CP come into force as of January 1, 2025, excluding Point m Clause 3 Article 6, Point e Clause 4 Article 26, and Point b Clause 1 Article 27 of Decree No. 168/2024/NĐ-CP, which come into force as of January 1, 2026; Point b Clause 1 Article 32 of Decree No. 168/2024/NĐ-CP comes into force according to the law on environmental protection regarding inspection of emissions of motorcycles and mopeds.

2. Vietnam’s to officially reduce VAT in first 6 months of 2025

This is a content of Decree No. 180/2024/NĐ-CP on policies on VAT reduction according to Resolution No. 174/2024/QH15 promulgated by the Government of Vietnam on December 31, 2024.

According to the Decree, trading facilities calculate VAT using the credit-invoice method may apply the 8% VAT rate to goods and services applying the 10% VAT rate, excluding the following goods and services:

- Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products.

Details are specific in Appendix I enclosed with Decree No. 180/2024/NĐ-CP.

- Goods and services subject to excise tax.

Details are specific in Appendix II enclosed with Decree No. 180/2024/NĐ-CP.

- Information technology products and services.

Details are specific in Appendix III enclosed with Decree No. 180/2024/NĐ-CP.

VAT on goods and services of specific types mentioned above shall be reduced consistently in all stages, including import, production, processing, and trading. Coal products mined for sale (including coal products mined and then washed, sieved and classified under a closed process before they are sold) are eligible for VAT reduction.

Coal products in Appendix I enclosed with Decree No. 180/2024/NĐ-CP are not eligible for VAT reduction in any stages other than the mining stage.

Coal products produced under a closed process of economic corporations or groups shall be also eligible for VAT reduction.

Where the goods and services in Appendixes I, II, and III enclosed with Decree No. 180/2024/NĐ-CP are not subject to VAT or are subject to 5% VAT according to the Law on Value-Added Tax, the VAT on such goods or services shall be paid according to theLaw on Value-Added Tax and shall not be reduced.

See more details in Decree No. 180/2024/NĐ-CP, effective from January 1, 2025 until the end of June 30, 2025.

3. Vietnam’s Decree on benefits for officials after apparatus simplification

On December 31, 2024, the Government of Vietnam promulgated Decree No. 178/2024/NĐ-CP on policies and benefits for officials, public employees, employees, and armed forces in arranging the organization of the political system apparatus.

Specifically, Decree No. 178/2024/NĐ-CP stipulates policies and benefits as follows: policies for resigned persons (retirement and resignation); policies for people resigning from positions of leaders or managers or are appointed as leaders or managers at a lower level; policies on intensification of grassroots-level work; policies on utilization of people with outstanding qualities and abilities; policies on training and advanced training in the improvement of qualifications of officials and public employees post-arrangement; responsibilities for implementing policies and benefits for officials, public employees, and employees in agencies, organizations, and units of the CPV, the State, the Vietnamese Fatherland Front, and socio-political organizations from the central level to the district level; commune-level officials; armed forces (including the People’s Army, People’s Public Security Force, and Cipher Authorities) during the arrangement of the apparatus organization and administrative divisions at various levels of the political system, including:

(i) Agencies of the Communist Party of Vietnam, the State, the Vietnamese Fatherland Front, and socio-political organizations at the central level, provincial level, and district level; commune-level officials and armed forces.

(ii) Public service providers subject to the organizational structure of agencies providing counseling and assisting the CPV Central Committee, the Politburo of Vietnam, the Secretariat of Vietnam, ministries and central authorities, provincial People’s Committees, and specialized agencies of People’s Committees of provinces and districts.

(iii) Other public service providers (not prescribed in (ii)) completing the organizational arrangement or restructuring of personnel within 12 months from the decisions of competent authorities.

Specifically, officials, public employees, and employees under labor contracts in agencies, organizations, units, and armed forces due to the organizational arrangement of the apparatus as mentioned above include:

- Officials and public employees who are leaders and managers, and officials and public employees;

- Commune-level officials;

- Persons working under labor contracts according to the law on labor before January 15, 2019 and persons working under labor contracts with applied policies same as officials (hereinafter referred to as “employees”);

- Commissioned officers, professional soldiers, workers, and public employees of national defense of the Vietnam People’s Army;

- Commissioned officers and non-commissioned officers with salaries and public security workers and employees with salaries from the state budget of the People’s Public Security Force.

- Persons working in cipher organizations.

Regarding officials failing to meet the age conditions for re-election or re-appointment to specific positions and titles in a term of agencies of the Communist Party of Vietnam, the State, and socio-political organizations, and officials resigning at will, comply with other Decrees of the Government of Vietnam.

See more details in Decree No. 178/2024/NĐ-CP, effective as of January 1, 2025.

4. Construction project phases in Vietnam from December 30, 2024

This is a content of Decree No. 175/2024/NĐ-CP guiding the Law on Construction regarding construction management, effective as of December 30, 2024.

According to the Decree, construction project phases from December 30, 2024 are as follows:

(1) Phases of a construction project according to Clause 1 Article 50 of the Law on Construction 2014 are as follows:

(i) Pre-construction: proposals for programs and projects using ODA loans and foreign preferential loans (if any); formulation and appraisal of investment pre-feasibility study report or investment policy proposal report for decision or approval for investment policy (if any); construction survey in service of project formulation; formulation, appraisal, and approval for the construction planning as grounds for project formulation; formulation and appraisal of investment pre-feasibility study report or technical-economic report on investment for approval for investment project and decision; other necessary tasks concerning pre-construction;

(ii) Construction: site preparation, demining (if any); construction survey in service of implementation design after grassroots-level design; formulation, appraisal, and approval for design and construction estimate; issuance of construction permit (if required); conclusion of construction contracts; execution of the works; supervision of work execution; advances or payments for completed works; commissioning; taking-over of the works; finalization of construction contracts; supervision and assessment of construction project; other necessary tasks concerning construction;  

(iii) Post-construction: finalization of construction contracts, investment settlement of completed works, confirmation of completed works; handover of works for operations; performance guarantees, handover of relevant documents; supervision and assessment of construction projects; and other necessary tasks.

(2) Phases of urgent construction projects shall comply with Article 69 of Decree No. 175/2024/NĐ-CP.

Phases of public-private partnership projects with construction components (hereinafter referred to as “PPP projects”) shall comply with the law on public-private partnership investment.

(3) Regarding projects not prescribed in (2), depending on specific and technical requirements of the projects, the investment-decision maker shall decide the phases for the work items as prescribed in (ii) and (iii) of (1), whether in succession or coordinately.

(4) Regarding projects under turnkey contracts, their phases shall comply with the regulations prescribed in such contracts. 

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