04 Significant Policies Effective from Early April 2019

1. Decree 05/2019/ND-CP: Standards for Internal Audit Personnel

The Government of Vietnam issued Decree 05/2019/ND-CP on January 22, 2019, regulating internal audit activities in state agencies, public service providers, and enterprises.

Notably, the standards that internal audit personnel must meet include:

- Possessing a university degree or higher in a specialized field suitable for audit requirements, having adequate and constantly updated knowledge in the areas assigned for internal audit;- Having 5 years or more of experience working in the specialized field of training or 3 years or more working at the current unit or 3 years or more in auditing, accounting, or inspection;- Having general knowledge and understanding of laws and activities of the unit; being able to collect, analyze, evaluate, and aggregate information; having skills and knowledge about internal audit;- Not having been disciplined at the warning level or higher due to economic, financial, accounting management violations or not currently under disciplinary enforcement;- Other standards as prescribed by the unit.

Decree 05/2019/ND-CP takes effect from April 1, 2019.

1. Decree 19/2019/ND-CP: Regulations on Interest Rates for Hoi

On February 19, 2019, the Government of Vietnam issued Decree 19/2019/ND-CP regulating Hoi, Hui, Bieu, and Phuong, replacing Decree 144/2006/ND-CP.

According to Decree 19/2019, the interest rate for profit-making Hui is agreed upon by the members or set forth by each member to receive Hui in each opening period but must not exceed 20% per year of the total value of the contributed parts minus the value of the contributed parts over the remaining time of the Hui group.

In cases where the limit interest rate is adjusted by the competent authority mentioned in Clause 1, Article 468 of the Civil Code, the adjusted limit interest rate is applied.

If the interest rate agreed upon or set forth by each member to receive Hui in each opening period exceeds the specified limit interest rate, the exceeding interest rate is not enforced.

Decree 19/2019/ND-CP takes effect from April 5, 2019.

1. Decree 20/2019/ND-CP: New Regulations on Registration Fee Calculation for Houses and Land

Decree 20/2019/ND-CP was issued by the Government of Vietnam on February 21, 2019, amending and supplementing certain articles of Decree 140/2016/ND-CP on registration fees.

Notably in Decree 20/2019, the registration fee calculation price for houses and land is adjusted as follows:

- The registration fee calculation price for land is the land price listed in the Land Price Table issued by the Provincial People's Committee at the time of registration fee declaration in accordance with the land law.- In the case of state-leased land with one-time land rent payment for the entire lease period, if the lease duration is shorter than the term specified in the Land Price Table issued by the Provincial People's Committee, the land price for the registration fee calculation period is calculated using the following formula:

Land price for lease term registration fee calculation = (Land price in Land Price Table / 70 years) x Lease term

For details, see Decree 20/2019/ND-CP which takes effect from April 10, 2019.

1. Circular 01/2019/TT-BGDDT: Increase in Enrollment Quotas for Schools if Employment Rate is Achieved

Circular 01/2019/TT-BGDDT was issued by the Ministry of Education and Training on February 25, 2019, amending and supplementing Circular 06/2018/TT-BGDDT on determining enrollment quotas for teacher training at intermediate, college, university, master, and doctoral levels.

The determination of increased enrollment quotas for schools also depends on the employment rate of graduates, specifically:

- For fields without an accreditation program, the increase must not exceed 10% compared to the previous year if the employment rate survey of graduates within 1 year after graduation reaches 90% or more;- If the average employment rate of graduates within 1 year after graduation reaches 90% or more, with students being filtered, after determining the quotas according to the above points, the school may also increase the enrollment quotas by no more than 25% of the average number of filtered students in the preceding 4 years. If the educational institution has not had graduates for 4 years, the average number of filtered students of the graduated courses will be calculated.

For details, see Circular 01/2019/TT-BGDDT which takes effect from April 12, 2019.

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