Highlight of Prominent Finance - Trade Documents from the Past Week

1. Process of Expenditure Control of State Budget through the Treasury

From October 1, 2017, the unified process for the control of state budget expenditure through the State Treasury (KBNN) will be implemented according to Decision 4377/QD-KBNN.

This process provides guidance on the unified control of expenditures through the KBNN system; the process of document circulation and storage of internal transaction records within the KBNN system, including:

- Development investment expenditures (including estimates and expenditure commitments);- Regular expenditures (including estimates and expenditure commitments); expenditures from deposit accounts (including temporary collection, temporary holding accounts of the revenue agency);- Transfers of district budget to commune budget, source transfers for commune budget, handling of commune budget surplus.

1. Charter and Internal Regulations of Public Companies

This is the central content of Circular 95/2017/TT-BTC guiding Decree 71/2017/ND-CP on corporate governance applicable to public companies.

Specifically, issued with Circular 95 are the Model Charter (Appendix No. 01) and Internal Regulation on Corporate Governance (Appendix No. 02) to formulate the Charter and Regulations in compliance with current legal provisions.

The Model Charter stipulates:

- The Company shall use the Vietnamese Accounting System (VAS), enterprise accounting policies, or other specific accounting policies approved by the Ministry of Finance;- The Company shall maintain accounting books in Vietnamese and retain them according to legal regulations;- The Company shall use Vietnamese Dong as the unit of currency in accounting. If major economic transactions are in foreign currencies, those foreign currencies can be used as the unit of currency in accounting.

Refer to the Model Charter and Internal Regulations in Circular 95/2017/TT-BTC, effective from November 6, 2017.

1. New Interest Calculation Methodology for Deposit, Credit Activities

On September 29, 2017, the State Bank issued Circular 14/2017/TT-NHNN which stipulates the method of calculating interest generated in deposit-taking and credit-granting activities between credit institutions, foreign bank branches, and customers.

From January 1, 2018, the interest calculation rate will be converted to an annual rate, with one year defined as 365 days (current law does not provide a consistent number of days in one year).

The time used to convert the interest calculation rate from %/month, %/week, %/hour to %/day; and from %/day to %/year and vice versa. Specifically:

- 1 year is 365 days;- 1 month is 30 days;- 1 week is 7 days;- 1 day is 24 hours.

1. Requirements for Workshops, Warehouses in Chemical Production, Business

The Government of Vietnam issued Decree 113/2017/ND-CP (effective from November 25, 2017) guiding the implementation of certain provisions of the Chemical Law, replacing Decree 108/2008/ND-CP and Decree 26/2011/ND-CP.

Decree 113 discusses a number of safety requirements for workshops and warehouses in production and business, such as:

- Must have exits and directional signs using boards and illuminated indicators, designed to facilitate emergency evacuation, rescue, and aid;- Must have a chemical safety regulation board and danger signs placed in visible locations;- Must have a lightning protection system or be located in a safe area against lightning with regular inspections in accordance with current legal provisions;- The floor of workshops and chemical warehouses must withstand chemicals, loads, should be non-slippery, have collection and drainage trenches.

And some other notable documents including:

1. Regulation 98-QD/TW issued by the Central Committee on October 7, 2017 on cadre transfer;
2. Decree 112/2017/ND-CP on policies for youth volunteers in the South participating in the resistance period 1965-1975, effective from November 20, 2017;
3. Circular 242/2017/TT-BQP guiding the adjustment of monthly allowances for military personnel, people working in cryptographic work receiving salaries like military personnel who have retired, demobilized, resigned, effective November 20, 2017;
4. Circular 241/2017/TT-BQP on the selection and recruitment of professional soldiers, defense workers, and public employees, effective from November 15, 2017.

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