Key Policies Effective Early September 2018

1. Cases of Reduction of State Capital in Enterprises

The Ministry of Finance issues Circular 59/2018/TT-BTC amending and supplementing Circular 219/2015/TT-BTC on investment of state capital in enterprises and the management and use of capital and assets in enterprises, officially applicable from September 1, 2018.

The reduction of state capital in enterprises is carried out in the following cases:

- The representative agency of the owner determines the charter capital reduction and reports to the Prime Minister of the Government of Vietnam to decide on handling the value of the reduced charter capital;- Restructuring state capital in enterprises by splitting the enterprise;- The source of additional charter capital is not sufficient to supplement according to the adjusted capital level already approved;- Due to policy changes, the enterprise no longer falls under the category eligible for state capital investment and is assigned additional capital, assets to participate in BCC contract capital contributions.

Enterprises are responsible for carrying out procedures to change and disclose information about charter capital in the business registration certificate according to the provisions of the Enterprise Law in the above-mentioned cases.

1. Duration of Policies for Persons with Meritorious Services Residing Abroad

Decree 102/2018/ND-CP stipulates policies of support and other preferential policies for Vietnamese people with meritorious services to the revolution, participants in resistance wars, wars to defend the Fatherland, and international missions who are residing abroad.

Notably, the regulation on the duration of policies for persons participating in the resistance against France, the US, wars to defend the Fatherland, and fireline militia... residing abroad is as follows:

- For military personnel, police, and those working in cryptographic work receiving salaries like military personnel: It is the total actual working time in the military, police, cryptography (excluding the period of labor cooperation abroad);- A person who has time participating in the resistance war, wars to defend the Fatherland, performing international missions, and participating in fireline militia belonging to different groups or having service periods in different phases: The periods are cumulative;- The time counted for one-time support policies if there are odd months: 06 months or more is counted as one year, less than 06 months is counted as 1/2 year.

Decree 102/2018/ND-CP takes effect on September 5, 2018.

1. Methods of Receiving Feedback and Suggestions on Administrative Regulations

The Ministry of Industry and Trade issues Circular 18/2018/TT-BCT stipulating administrative procedure control within the management of the Ministry of Industry and Trade, effective from September 3, 2018.

The Ministry details some methods for receiving feedback and suggestions on administrative regulations in the field of industry and trade, including:

- In writing: The Ministry's Office receives feedback and suggestions and classifies and handles them;- By phone: The phone number for receiving feedback and suggestions is posted on the website http://kstthc.moit.gov.vn. The phone responder requests individuals or organizations to confirm feedback and suggestions in writing or electronic data;- By electronic data: Individuals or organizations send feedback and suggestions via email at CCHC-VPB@moit.gov.vn or through the online support system at http://kstthc.moit.gov.vn and these will be printed out as written form;- Through feedback forms or discussions, opinions delivered at related seminars and conferences on administrative regulations and procedures in the field of industry and trade.

1. General Director Cannot Concurrently be the Chief Accountant in the Same Company

Circular 105/2018/TT-BQP amending and supplementing Circular 147/2016/TT-BQP stipulating the positions and titles in state-owned enterprises managed by the Ministry of National Defense and representatives in joint-stock companies with state capital holding over 50% of the charter capital that have representatives appointed by the Ministry of National Defense.

It regulates positions and titles concurrently held by management personnel as follows:

- Persons appointed to the position of Chairman of the Member Council, Chairman of the company:- Are not officers working at administrative units of the Ministry of National Defense;- Cannot concurrently hold the position of General Director, Director, Controller in their corporation, company, and other enterprises;- Cannot concurrently hold management and operational roles in subsidiary companies.- Persons appointed to the positions of General Director, Deputy General Director, Director, Deputy Director:- Are not officers working at administrative units of the Ministry of National Defense;- Cannot concurrently hold the positions of General Director, Director, Controller in another enterprise and Chief Accountant in their corporation, company.

Circular 105/2018/TT-BQP takes effect from September 8, 2018.

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