Regulations on opening individual payment account by electronic method

  On December 4, 2020, the State Bank of Vietnam issued Circular No. 16/2020/TT-NHNN amending and supplementing a number of articles of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of The Governor of the State Bank of Vietnam guides the opening and use of a payment account at a payment service supplier. Accordingly, the State Bank has supplemented instructions to open individual payment accounts by electronic method.

Banks and/or foreign bank branches that open payment accounts by electronic method must develop, promulgate and publicize the process and procedures for opening payment accounts by electronic method in accordance with regulations of the law, include at least the following steps: collect information about the application for opening a payment account as prescribed; check, compare and verify customer identification information; warn customers about actions not performed in the process of opening and using payment accounts opened electronically; provide the customer with the content of an agreement to open and use a payment account as prescribed and enter into an agreement to open and use a payment account with the customer; notify customers of the number, the name of the current account, the transaction limit through the current account and the date of commencement of operation of the checking account to the customer.

Banks and/or foreign bank branches shall evaluate on technological conditions to assess risks, determine the scope of use and decide to apply transaction limits via customers’ checking payment account by electronic method but must ensure that the total transaction value limit (debit) through that customer’s payment accounts does not exceed VND 100 million/month/customer.

Banks and/or foreign bank branches may decide to apply a transaction limit via an electronic payment account that is higher than the above limit in one of the following cases: banks, foreign bank branches apply video call to collect, check and verify customer identification information in the process of opening payment accounts to ensure efficiency such as identification and verification of customer information through face-to-face methods; banks and/or foreign bank branches apply the technology to check and compare customers’ biometric characteristics with citizen biometric data through the citizen identification database; after the bank, foreign bank branch has implemented the identification and verification of customer information through face-to-face meeting with the account holder; money transfer transactions for electronic savings and term deposits for the account holders at such banks, foreign bank branches; in cases where banks, foreign bank branches are allowed to actively debit the customers’ payment accounts as prescribed.

Opening payment accounts by electronic method specified in this Article does not apply to joint payment accounts, individual customer who is foreigner; a person who is aged between exactly 15 and nearly 18 years and does not have his/her incapacity or restricted capacity for civil acts; a person who is under the age of 15, has restricted capacity for civil acts or is incapable of civil acts as defined by the Law of Vietnam is entitled to open a current account via his/her legal representative; a person who has limited cognition and behavioral control as defined by the Law of Vietnam may open a current account via his/her guardian.

This Circular takes effect on March 5, 2021.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Vietnam Investigates and Applies Anti-Dumping Measures on Some Plastic Products from China, Thailand and Malaysia (AD07)

 On April 26, 2019, the Department of Trade Protection (PVTM) – Ministry of Industry and Trade received a dossier requesting investigation and application of anti-dumping measures for some plastic products and products by Plastic is made from polymers and propylene (“Investigated Goods”) originating from the People’s Republic of China (China), Kingdom of Thailand (Thailand) and Malaysia. The requester in the case are representatives of the domestic manufacturing industry, including two companies: (i) Hung Nghiep Formosa Limited Liability Company; and (ii) Plastic Joint Stock Company Youl Chon Vina.

On August 5, 2019, the Ministry of Industry and Trade issued Decision No. 2334 / QD-BCT on conducting investigation and application of anti-dumping measures.

What is scope of investigation in anti-dumping case AD07?

The products alleged to be dumped are products made of plastic and plastic products made from propylene polymers (also called Biaxial Oriented Polypropylene film – BOPP) imported from the above countries and dumping on the Vietnam market which caused significant losses to Vietnam’s BOPP film industry under the following HS codes: 3920.20.10 and 3920.20.91.

The period of investigation to determine dumping behavior is from July 1, 2018 to June 30, 2019. The investigation period to determine the damage of domestic manufacturing industry is from July 1, 2016 until June 30, 2019.

How to determine damages and causal relation?

The alleged dumping products are considered to be the main cause of significant losses in the domestic manufacturing industry, reflected by the decline in indicators such as utilization capacity, inventory, profits and dynamic price, price pressure…

What the investigation agency require?

Within 15 days after the issuance of the investigation decision of the Minister of Industry and Trade, the investigating authority shall send the investigation questionnaire to the following subjects:

– The applicant submits the application for anti-dumping measures;

– Other domestic manufacturers;

– The party proposed to investigate applies anti-dumping measures;

– Importers of goods subject to investigation;

– The diplomatic mission of the country where the goods originated is investigated;

– Other stakeholders that the investigating authority deems necessary.

Within 30 days after receiving the investigation question, interested parties must provide a written answer to all questions in the questionnaire. In case of necessity or a written request for extension with reasonable reasons from interested parties, the investigating agency may extend the time limit but must not more than 30 days.

How long does the investigation will take?

Please be informed that the time limit for the anti-dumping measures imposition investigation shall be within 12 months from the day on which the decision on investigation is issued, with a possible extension up to 6 months if necessary. Interested parties could authorize law firm in Vietnam with international trade and anti-dumping specialization to respond to authorities in Vietnam.

Accordingly, after initiating the investigation, the Ministry of Industry and Trade will send the questionnaires to related parties to collect information to analyze and evaluate the alleged contents including the following acts:

+ Dumping behavior of BOPP film export enterprises of China, Thailand and Malaysia;

+ Damage of BOPP film manufacturing industry in Vietnam.

In case of necessity, from the preliminary investigation results, if found that the damage of dumping has a great impact on the domestic manufacturing industry, the Ministry of Industry and Trade may apply anti-dumping measures. The period includes import management for investigated goods, application of temporary anti-dumping duties, consultations and application of anti-dumping duties effective before.

The Ministry of Industry and Trade will conduct the verification and examine the information provided by the parties before completing the official investigation conclusion on the case. At the same time, the Ministry of Industry and Trade will also hold public consultations so that stakeholders can directly exchange, provide information and express their views on the case before making a final conclusion on the case.

Whom could respond the questionnaire and participate to cooperate?

The Ministry of Industry and Trade recommends that all organizations and individuals who are importing – exporting, distributing, trading and using goods subject to investigation be registered as a related party and provide necessary information to the Ministry of Industry and Trade to ensure their rights and interests in accordance with the law.

The Ministry of Industry and Trade may apply anti-dumping duty which is effective backward for goods subject to tax within 90 days before the application of temporary anti-dumping duty. Therefore, the Ministry of Industry and Trade recommends that organizations and individuals in the process of signing import contracts, distribution, business and use of investigated goods should pay attention to the possibility of applying anti-dumping tax. Temporary and anti-dumping taxes are effective backwards.

As international trade law firm, we at ANT Lawyers always monitor changes in law and provide clients with recent update.

Deadline for submission of AD07 case response questionnaire

 On August 5th 2019, Minister of The Ministry of International Trade and Industry issued the decision no. 2334/QĐ- BCT on the investigation of the application of anti-dumping measures on some plastics and plastic products made from propylene polymers comes from the People’s Republic of China, the Kingdom of Thailand and Malaysia (AD07). The case was initiated under investigation based on a request filed by a local manufacturing industry representative on April 26th , 2019.

Pursuant to Official Letter No. 704 / PVTM-P1 sent by the Vietnam Chamber of Commerce and Trade to all parties involved in the AD07 case on August 19, 2019, asking foreign manufacturers and exporters to conduct questionnaires. The investigation has been posted publicly on the website of the investigating authority and the Ministry of Industry and Trade or contacting the investigation office of the Department of Trade Remedies to receive the questionnaire.

After completing the questionnaire , the manufacturers and exporters related to the case AD07 send the complete questionnaire including 03 confidential copies, 03 public copies (hard copy) and 01 USB containing the soft copy of the answer. The answer is considered to be submitted on time when the Investigation Agency receives all hard and soft copies before 4:30 pm on September 25, 2019 (Hanoi time). Investigating agencies request stakeholders to answer and carefully study the instructions in the questionnaire before answering and submit the questionnaire within the prescribed time limit. Beyond this period, all questionnaires submitted to the investigating authority are not considered valid.

In the event that the investigating authority does not receive the timely response or the information provided incorrectly, incompletely as required, the investigating authority will apply the provisions of Article 10 of Decree 10/2018/ ND- CP on related parties not cooperating in trade defense cases.

As international trade law firm, we at ANT Lawyers always monitor changes in law and provide clients with recent update.

The Ministry of Industry and Trade Receiving Request for Exemption from Applying Anti-Dumping and Countervailing Measures in September 2021

  According to the regulations on the trade remedies in the Circular No.37/2019/TT-BCT on providing detailed regulations on trade remedy, in March and September of every year, the Trade Remedies Agency of Vietnam requires the companies which meet the conditions of exemption from apply anti-dumping and countervailing measures in the cases of AD01 (Cold rolled stainless steel products), AD02 (Galvanized steel products), AD03 and AD12 (H-Shaped steel products), AD04 (Color coated steel products), AD05 (Aluminum profiles products), AD07 (Plastics and plastic products made from polymers of propylene), AD08 (Cold rolled (cold pressed) steel in coils or sheets), AD09 (MSG), AD10 (Long yarn made of polyester), AD13-AS01 (Sugar cane), AD14 (Sorbitol).

Deadline for companies submitting the dossier on requiring applying for the exemption from anti-dumping and countervailing measures is before 5:00 P.M on October 09th, 2021.

Application dossiers for applying for the exemption from anti-dumping and countervailing measures:

i) A written request for exclusion from trade;

ii) A copy of the enterprise’s certificate of business registration or investment certificate;

iii) Description of the good for which the exclusion request is submitted, including scientific name, trade name, common name; basic physical and chemical properties; main uses; production process; applicable international and domestic standards and/or regulations; HS code according to Vietnam’s nomenclature of exports and imports;

iv) The document stating information about the volume, quantity and value of the imported good for which the exclusion request is submitted (in the last 03 years and in current year);

v) The written production process of the product of which input material is the good for which the exclusion request is submitted;

vi) The demand for consumption or use of the imported good for which the exclusion request is submitted (in the past 03 years and in the current year);

vii) The prescribed or estimated level of consumption of raw material which is the good for which the exclusion request is submitted;

viii) Documents or samples proving the difference between the good for which the exclusion request is submitted and the like or directly competitive products produced by the domestic industry;

ix) The document stating information about the production line and output of the good for which the exclusion request is submitted in the past 03 years and those in the current year;

x) Documents proving the demand for use of the quantity of good for which the exclusion request is submitted, including contracts signed with customers, written approvals for in-progress projects or other relevant documents.

Note: In case the company which has been granted an exemption for 2021 is about to use up the granted exemption volume, the company can submit an additional application for exemption at any time in 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

What is Value-added Tax Reduction Policy in 2022?

  In order to stimulate growth and recover the economy after the impact of the Covid-19 pandemic, the Government has issued a policy to reduce value added tax. The reduction of value-added tax is an effective solution and tool to stimulate consumption and is expected to create a driving force for rapid development to help businesses restore business and production.

The value-added tax reduction policy has been promulgated by Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy according to the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies currency to support the program of socio-economic recovery and development. Accordingly, value added tax will be reduced from 10% to 8%. This reduction will create conditions for consumers to increase spending, through which businesses will sell more products.

The value-added tax reduction will be applied to groups of goods and services currently subject to the 10% tax rate, except for the following groups of goods and services: (i) Telecommunications, financial and banking activities commodities, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; (ii) Products, goods and services subject to excise tax; (iii) Information technology under the law on information technology. However, if the goods and services are not subject to value-added tax or subject to value-added tax of 5% according to the provisions of the Law on Value-Added Tax, the provisions of the Law on Value-Added Tax shall be applied and not entitled to value added tax reduction.

It is important to note the value-added tax calculation method to apply. Accordingly, if the enterprise calculates value-added tax by the deduction method, the value-added tax rate of 8% shall apply; and in case the enterprise calculates value-added tax according to the percentage method on sales, collected, it will be reduced by 20% of the percentage rate for calculating value-added tax when issuing invoices for goods and services eligible for value-added tax reduction as prescribed.

The value-added tax reduction will be implemented quickly and businesses and consumers will immediately benefit. This tax reduction is expected to help reduce the cost of products and services, thereby stimulating consumer demand. Besides, it will help increase production output of enterprises and create more jobs for workers. Therefore, the reduction of value added tax is considered necessary solutions to promote the economy to recover soon after a long time affected by the pandemic.

The value-added tax reduction policy will be effective from February 1st, 2022 to the end of December 31st, 2022. Previously, value-added tax was only reduced for a few specific products, but with this policy, the object of tax reduction has been expanded in most fields of business and production. Therefore, the impact of this policy on the economy in the future is very large. However, in order for the value-added tax reduction to reach consumers, tax authorities need stricter inspection and control to meet the set goals. When in doubt, it is important to consult with tax lawyers for solutions and advice.

New Regulations of Intellectual Property Law in 2022

  Intellectual property is currently playing a very important role in Vietnam and other countries around the world. With the participation in Trade Agreements and market expansion, the regulations on intellectual property have had many positive changes towards the protection and promotion of intellectual property rights and in line with the general trend of countries.

Intellectual property rights are the rights of organizations or individuals to trademarks, inventions, designs or other forms of creation. Currently, intellectual property rights are recognized as an asset class, which can constitute corporate assets. Popular groups of intellectual property today include: (i) Copyright; (ii) Inventions; (iii) Industrial design; (iv) Trademarks. These are objects created by thinking, mental labor, cognitive activities of people and protected by law.

Currently, intellectual property rights are governed by the 2005 Intellectual Property Law, which was amended and supplemented in 2009, and 2019. These are efforts in changing Vietnam’s legal system in raise awareness and perfect the legal system on intellectual property of Vietnam. Up to now, the Intellectual Property Law has created a legal corridor for organizations and individuals to establish and protect intellectual property rights, contributing to encouraging creative activities, and enhancing the value of intellectual property, wisdom. However, after 17 years since its promulgation, the Law on Intellectual Property has also arisen problems, inadequacies and incompatibility to ensure the implementation of commitments on intellectual property in trade agreements to which Vietnam is a member.

To implement the above guidelines and policies, the National Office of Intellectual has coordinated with relevant agencies to change and supplement regulations on intellectual property accordingly. Accordingly, the content of amendments to the Intellectual Property Law focuses on important groups of policies with about 100 amended and supplemented articles. Therefore, obstacles and inadequacies such as regulations on licensing of patents, industrial designs, layout designs and plant varieties are the result of scientific and technological tasks using the state budget; regulations relating to procedures for registration and establishment of intellectual property rights and validity of protection titles; regulations on security control for inventions before registration abroad; on compensation to patent owners for delays in marketing authorization of pharmaceutical products; on sound trademark protection; on geographical indication management; on liability for copyright and related rights for enterprises providing intermediary services.

In addition to the Draft of Intellectual Property Law, the Draft Circular is also proposed to stipulate economic – technical norms for a number of public services funded by the state budget, including training and retraining services on Intellectual Property, the service of confirming the validity of international registration of trademarks protected in Vietnam.

Moreover, the National Office of Intellectual also implemented the reform and modernization of the information technology system, reducing the burden of administrative procedures, internal processes to handle administrative procedures; actively review and evaluate administrative procedures and develop a plan for decentralization and simplification of administrative procedures in the field of intellectual property; organize the collection of fees and charges via commercial bank accounts and issue receipts of electronic fees and charges. In addition, the information synchronization for the Government’s National Public Service Portal is also interested in development.

The new Draft Law on Intellectual Property has many additions and adjustments in accordance with practical requirements and is expected to take effect, which will help solve problems that still exist. However, in order to ensure that the enforcement of intellectual property rights is effective and meets the set requirements, businesses need to pay attention and comply well with legal regulations.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.