Vietnam: New documents in the past week (from July 12 to July 17, 2021)

Specifically as follows:

Trong tuần vừa qua (từ ngày 12/7 – 17/7/2021), Thư Ký Luật đã cập nhật được các văn bản quan trọng về Thuế, phí, lệ phí; Ngân hàng, tiền tệ; Xây dựng nhà ở,… Cụ thể như sau:

1. Application of construction classes in management of construction investment

Circular No. 06/2021/TT-BXD on classification of constructions and guidelines for application in management of construction investment, takes effect from August 15, 2021. 

Construction classes under this Circular are applied to serve as the basis for managing construction investment, for example:

- Determining entitlement when appraising feasibility reports; appraising or providing remarks for technology for construction investment projects utilizing technologies restricted for transfer or construction investment projects that potentially negatively impact the environment and employ high technology according to Law on Technology Transfer; appraising design for implementation after fundamental design; examining inspection for acceptance during construction and completion of construction;

- Classifying construction capacity of organizations and individuals to issue certificate of construction capacity and certificate of construction practice;

- Identifying constructions that do not require construction permit;

- Identifying constructions that have major impact on community safety and benefits;

- Identifying constructions that require professional liability insurance;

2. Coercive enforcement costs against commercial juridical persons

Circular No. 55/2021/TT-BTC providing instructions about management, allocation, advance payment and reimbursement of costs or funds for enforcement of court judgements against commercial entities, takes effect from August 25, 2021.

According to this Circular, determination of coercive enforcement costs is conducted according to Article 43 of Degree No. 44/2020/NĐ-CP, for example:

- Cost of deploying persons to execute the coercive enforcement decision;

- Cost of hiring vehicles to carry out dismantling and transport objects and property;

- Cost of distrained property protection;...

* Enforcement costs including:

- The above mentioned costs shall be treated based on contracts, contract termination records, minutes on handover of distrained property (in case of the authorized custody of distrained property), invoices and evidence of actual, legitimate and valid expenditures in accordance with current regulations and must be subject to approval granted by enforcement decision makers.

- In particular, benefits paid to persons mobilized to directly participate in and guard enforcement activities as follows:  

+ Amount paid to a person leading the implementation of a law enforcement decision who works for an authority implementing a law enforcement decision is VND 150,000 per day on duty; 

+ Amount paid to a person mobilized to participate in execution of a law enforcement decision is VND 100,000 per day on duty.

3. Amendments to the term of special loans to credit institutions placed under special control

Circular No. 08/2021/TT-NHNN prescribing grant of special loans to credit institutions placed under special control, takes effect from October 27, 2021. 

According to this Circular, the term of a special loan in the following cases shall be considered and decided by the State Bank of Vietnam, but less than 12 months.

- A special loan shall be granted for supporting the liquidity of a credit institution that is in danger of becoming insolvent or has become insolvent and such insolvency threatens the stability of the banking system while the credit institution is placed under special control, even if the credit institution is implementing an approved restructuring plan or transfer plan;

- The loan loss provision shall be used for granting a special loan with a preferential interest rate as low as 0% according to the SBV's decision to support the liquidity of a finance company, people's credit fund or microfinance institution that is in danger of becoming insolvent or has become insolvent and such insolvency threatens the stability of the system before the restructuring plan is given approval;

- The fund for assurance of safety of the network of people's credit funds shall be used for granting a special loan with a preferential interest rate as low as 0% according to the SBV's decision to support the liquidity of a people's credit fund that is in danger of becoming insolvent or has become insolvent and such insolvency threatens the stability of the system before the restructuring plan is given approval.

According to current provisions, the term of a special loan in the above mentioned cases shall be considered and decided by the State Bank of Vietnam, but less than 01 year.

4. Cases where apartment buildings must be deconstructed

This is a notable content in Decree No. 69/2021/NĐ-CP on renovation and reconstruction of apartment buildings, takes effect from September 01, 2021. 

According to this Degree, cases where apartment buildings must be deconstructed for reconstruction or construction of other buildings as per planning are prescribed as following:

An apartment building that must be deconstructed for reconstruction or construction of other building(s) as per planning under this Decree when:

(1)The apartment building must be immediately deconstructed due to incident, natural disaster, or fire as per the law.

(2) The apartment building runs out of its service life or is concluded by housing authority of the province to be:

- having primary load-bearing structures facing overall danger, risk of collapse, failure to meet use conditions, and/or requiring immediate relocation of apartment owners and inhabitants;

- suffering from severe damage, having primary load-bearing structures facing local damage, and having any of the following factors: firefighting infrastructures; water supply and drainage infrastructures; waste water processing infrastructures; power supply infrastructures; or internal traffic infrastructures fail to satisfy applicable technical standards and regulations or face risk of causing unsafe situations during operation, and requiring deconstruction in order to ensure safety for inhabitants and meet requirements for urban renovation and improvement.

(3) The apartment building has one of its primary structural components (foundation, pillars, walls, beams) damaged and not satisfactory to normal use conditions but not required to be deconstructed according to Clause 2 of this Article yet, but is situated in area with apartment buildings eligible for deconstruction according to Clause 2 Article 110 of Law on Housing.

Bao Ngoc

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