Vietnam: 11 codes and laws officially effective from January 01, 2021 (Part 2)

Vietnam: 11 codes and laws officially effective from January 01, 2021 (Illustration)

5. Law on Youth 2020

On June 16, 2020, the National Assembly of Vietnam signed for promulgation the Law on Youth 2020 comprising 7 Chapters and 41 Articles, replacing the Law on Youth 2005. Below are some notable new points stipulated in the Law on Youth 2020, for instance:

- Changes in some state policies for youth.

- Addition of youth responsibilities including: Responsibilities to the Nation, to the State and society, to the family, and to oneself.

- Every year, the Prime Minister of Vietnam and the Chairpersons of the People's Committees at all levels must hold a dialogue with the youth at least once concerning youth-related issues.

- The State must ensure resources for the development and implementation of policies for youth as prescribed by law.

- Each March is Youth Month. Youth Month is organized to promote the proactive, voluntary, and creative spirit of the youth to participate in activities for the benefit of the community, and society, and to encourage organizations and individuals to invest in youth development.

- Officially includes state management of youth with 8 contents, such as: Developing and implementing strategies, policies, programs, and plans for youth development; building a team of officials managing state youth affairs; propagating, disseminating, and educating policies and laws regarding youth; issuing policies to support and encourage organizations and individuals to implement youth policies, etc.

- ...

6. Law on Investment 2020

The Law on Investment 2020 was issued on June 17, 2020, replacing the Law on Investment 2014 with many new prominent regulations, such as:

- Only 04 cases require a deposit to proceed with an investment project.

- Real estate business no longer requires a minimum legal capital of 20 billion VND.

- Only 227 conditional business lines remain.

- Addition of 02 prohibited business lines: Trading explosives; and debt collection services.

- Addition of some preferential investment sectors, including the production of products derived from scientific and technological research results as prescribed by law on science and technology; higher education; manufacturing of medical equipment; people's credit funds, and microfinance institutions.

- Addition of 02 projects not eligible for investment period extension: Projects using outdated technology with potential environmental pollution risks, resource-intensive projects; and projects in which investors must transfer non-refundable assets to the State of Vietnam or Vietnamese parties.

- New issuance of the list of narcotic substances prohibited from business investment.

- Accelerated depreciation, and increased deductible expenses for calculating taxable income as a new preferential investment mechanism stipulated in this Law.

- Addition of 02 new parties eligible for investment incentives.

- ...

7. Law on Enterprises 2020

On June 17, 2020, the National Assembly of Vietnam officially promulgated the Law on Enterprises 2020 comprising 10 Chapters and 218 Articles, replacing the Law on Enterprises 2014. Below are some notable new points stipulated in this Law, for instance:

- Organizations that are commercial legal entities prohibited from business or from activities in certain fields as prescribed by the Criminal Code, are not permitted to establish or manage enterprises in Vietnam.

- Allows enterprises to use electronic signatures instead of engraved seals and eliminates the need to register the seal on the national portal before use.

- Changes in the capital ratio in state-owned enterprises: State enterprises include those where the State holds more than 50% of charter capital, total voting shares as opposed to the old regulation where state enterprises were enterprises wholly owned by the State.

- Removes the provision for a time limit on the ownership of common shares.

- Shortens the notice period before business suspension to the Business Registration Authority from 15 working days to 3 working days before the suspension date.

- Some obligations for enterprises were abolished, such as: Fulfilling business ethics obligations to ensure the legal rights and interests of customers and consumers; complying with the law on national defense, security, social order, and safety, gender equality, resource and environmental protection, protection of historical-cultural relics, and natural scenic spots.

- Prohibits business activities under the guise of enterprises that are suspended from business operations.

- ...

8. Amended Construction Law 2020

The Amended Construction Law 2020 was signed and promulgated by the National Assembly of Vietnam on June 17, 2020, amending and supplementing several provisions of the Construction Law 2020. Notable regulations in this Law include:

- Amendment and supplementation of several cases exempt from construction permits.

- Changes in regulations on the type and level of construction works.

- 03 cases of individual housing construction exempted from construction permits include:

+ Individual housing with less than 07 stories within urban development projects or housing projects with a 1/500 detailed plan approved by competent state agencies.

+ Individual housing in rural areas with less than 07 stories not within urban planning areas, functional construction planning, or detailed rural residential area planning approved by competent state agencies; except in conservation areas, and historical-cultural relics.

+ Individual housing in mountainous and island areas not within urban planning areas or functional construction planning; except in conservation areas, and historical-cultural relics.

- Shortened the time for issuing construction permits in cases of construction work permits, including temporary construction permits, adjusted construction permits, and relocation permits.

- ...

(To be continued)

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE