On August 30, 2019, the Ministry of Health issued Circular No. 25/2019 / TT-BYT providing for traceability of food products under the management of the Ministry of Health. This Circular will take effect from October 16, 2019.
Accordingly, Circular 25/2019 / TT-BYT regulating traceability of food products under the management of the Ministry of Health stipulates 05 requirements for food production and trading establishments. Specifically:
– Establishing a data system for traceability of food products, keeping full information about product lots, origins, product safety, raw materials, production, processing and storage processes and business.
– Store and maintain this information data system for at least 12 months from the expiry date of the batch of products, 24 months from the date of manufacture of the batch of products, for containers and containers. Direct contact with food and food products does not require an expiry date.
– Traceability of products as prescribed and report in writing the results of implementation to the competent authorities within 5 working days after discovering or receiving the warning information from organizations and individuals. or upon request of a competent authority.
– Analyzing and determining the causes of unsafety to the lots of products to be traced. In case of unsafe products, it must be recalled and handled.
– Apply the product traceability data system according to identification codes at the request of competent authorities.
As such, Circular No. 25/2019/TT-BYT has clearly defined the requirements and responsibilities of food business establishments to ensure product traceability. This regulation not only enhances and ensures the efficiency in production activities of food businesses, but also ensures the effectiveness of the management of food products origin in the market.
On August 29, 2019, the Ministry of Finance issued Directive No. 01 / CT-BTC on strengthening the revenue collection task to strive to complete the budget collection task and tax administration task in 2019. The directive takes effect from August 29, 2019.
Accordingly, in order to ensure that the tax industry fulfills its state budget collection task in 2019, heads of tax agencies at all levels focus on a number of key tasks such as:
– Strengthen the control of the implementation of tax inspection and examination for businesses facing high tax risks, large tax refund enterprises, etc., each week, month and quarter to arrange inspection and examination resources.
– Monitor and update promptly the operation situation of enterprises; especially big businesses.
– Stepping up the supervision of taxpayers’ tax declaration in order to promptly collect arising taxes.
– Implement drastically measures to urge tax debt recovery and tax debt enforcement such as organizing debt review and classification, closely monitoring and monitoring debts, intensifying the urge to handle debts, …
– Coordinate with land management agencies and local financial agencies in reviewing the collection and payment of land use levies, land rents and water surface rents, ensuring the full and timely collection of collected revenues. arising land.
The enhancement of discipline in the observance of the law on the State budget and in the performance of public duties does not cause troubles to taxpayers; continue to organize, sort by, merge tax offices into regional branches to ensure strictness and not affect the assigned tasks … which are also the key tasks of the tax authority from now to the end of year directed by the Minister in this document.
On July 11, 2019, the Government issued Decree 62/2019 / ND-CP amending Decree 35/2015 / ND-CP on management and use of rice cultivation land. This Decree takes effect from September 1, 2019.
Accordingly, the conditions for conversion from rice cultivation land to annual crops are one of the contents adjusted in Decree 62/2019 / ND-CP amending Decree 35/2015 / ND-CP on management and Using rice land.
The new Decree clearly stipulates the conditions for changing from rice cultivation to annual crops, perennial crops or rice cultivation combined with aquaculture, specifically as follows:
– Do not lose the right conditions to grow rice again; no pollution, degradation of rice land; not damaging traffic works, irrigation works in service of rice cultivation;
– Conforming with the plan of changing crop structure from rice cultivation to annual crops, perennial crops or rice cultivation in combination with aquaculture on rice land of the commune level, ensuring publicity and transparency;
– In case of rice cultivation combined with aquaculture, it is allowed to use up to 20% of the rice land area to lower the ground for aquaculture; the depth of the ground must not be lower than 120 cm when it is necessary to restore the ground to re-grow the rice;
– Conversion of crop structure from rice cultivation to perennial crop cultivation must be organized by regions, in order to form concentrated production zones and effectively exploit available infrastructure; in accordance with the orientation of perfecting infrastructure for local agricultural production;
Decree No. 62/2019 / ND-CP applies to rice cultivation land, based on the conversion of land structure, the adjustment of regulations on rice land is necessary to focus on development in the regions. Certainly, to form concentrated production areas aiming at agricultural development goals of each locality in particular and the whole country in general.
On August 21, 2019, the Politburo issued Circular 54/2019 / TT-BTC guiding the management and use of state budget funding to support small and medium enterprises (SMEs) using consultancy services of the network of consultant. This Circular takes effect on October 10, 2019.
Accordingly, Circular 54/2019 / TT-BTC has the following highlights:
– SMEs using consulting services belonging to a network of consultants supported by the state budget: Micro enterprises are supported 100% of consulting contract value, but not exceeding VND 3 million per year; Small businesses are entitled to a maximum reduction of 30% of the value of the consultancy contract, but not exceeding VND 05 million per year; Enterprises have been reduced maximum 10% of the value of the consulting contract, but not exceeding 10 million per year;
– In the case that SMEs have used consulting services under the network of consultants and supported by the state budget but the support value has not exceeded the above-mentioned level, SMEs will only be supported for the rest and This content must be clearly reported in the dossier sent to the SME support unit for review and decision on approval of consultancy support.
As such, the issuance Circular 54/2019/TT-BTC provides detailed guidance on the management and use of state budget funding to support small and medium-sized enterprises using consulting services under the network of consultants. This creats favorable conditions for SMEs to conmpete effectively in market economy nowadays.
On July 31, 2019, the Government issued Decree No. 67/2019 / ND-CP stipulating the method of calculation and collection of charges for granting mining rights. This Decree takes effect from September 15, 2019.
Accordingly, from the date of September 15, 2019, at the time this Decree takes effect, the fee level for granting mineral mining rights will be determined according to the coefficient R determined as a percentage of the value of the original ore. Minerals in the area are allowed to be exploited. This R coefficient is stipulated in Decree 63/2019 more specifically than the previous Decree 203/2013 / ND-CP.
The Decree also stipulates the method and time for paying mineral mining rights. Based on the amount to be paid and the time of license for exploitation, this amount may be paid in lump sum for the whole time of license or in installments. The time of payment is divided into two periods, May 31 and October 31 each year.
In addition, the decree also provides for cases where the amount of money that has been paid for mining activities has been refunded.
Thus, with the issuance of Decree 67/2019 / ND-CP, the Government has taken action to tighten management of the mining sector, making more specific and detailed regulations to avoid loss of State budget revenues in mineral activities.
On July 30, 2019, the Minister of Industry and Trade issued a Circular regulating the rules of origin of goods in the Framework Agreement on comprehensive economic cooperation between the Association of Southeast Asian Nations and the People’s Republic Chinese. This Circular takes effect from September 12, 2019.
Accordingly, this Circular prescribes rules of origin for goods as follows: goods are considered to be originating if they meet the rules:
– Wholly obtained or produced entirely in a Member State
– Produced in a Member State solely from materials originating from one or more Member States.
– Produced from non-originating materials in a Member State provided that such goods meet the following requirements:
• Goods with a regional value content (RVC) not less than 40% of the FOB value and the final stage of production carried out in a Member State
• Goods using non-originating materials undergo a 4-digit (CTH) conversion process (applicable to Chapters 25, 26, 28, 29, 31 and 39 ; from Chapter 42 to Chapter 49; from Chapter 57 to Chapter 59; Chapters 61, 62, 64; from Chapter 66 to Chapter 71; from Chapter 73 to Chapter 83; Chapters 86 and 88; from Chapters 91 to Chapter 97 of Harmonized system of description and coding of goods)
– In addition, the origin of goods applies the De minimis rule: goods that do not meet the criteria for change of commodity codes (CTC) are still considered to be originating if:
• The value of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the FOB value of the goods (applies to goods not covered by Chapter 50). to Chapter 63 of the Harmonized Commodity Description and Coding System);
• The weight of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the total weight of the goods; or the value of all non-originating materials that do not meet the CTC criteria used to produce the goods does not exceed 10% of the FOB value of the goods (applicable to goods of Chapter 50 to Chapter 63 of the Harmonized Commodity Description and Coding System).
Circular No. 12/2019 / TT-BCT applies to agencies and organizations that issue certificates of origin (C / O) and traders, agencies, organizations and individuals involved in activities relating to the origin of goods.
On August 26, 2019, Circular 57/2019 / TT-BTC guides the mechanism of dealing with risks of credit guarantee funds for small and medium-sized enterprises. Circular 57/2019 / TT-BTC takes effect from October 15, 2019.
Accordingly, small and medium enterprises will be considered and handled risks in the following five cases:
– Customers suffer financial losses, assets affecting production and business activities, leading to failure to pay debts (principals and interests) on time under the signed debt acceptance contracts signed due to reasons such as: :
Natural disasters, crop failure, epidemics, fires;
Political risks, war.
– Customer goes bankrupt according to current regulations;
– Customers can not pay the debt (principal, interest) on time under the signed debt acknowledgment contract signed by:
The State changes policies affecting production and business activities of customers;
Risks due to other objective factors directly affecting the production and business activities of customers.
– Customers have bad debts (from group 3 to group 5) according to debt classification results prescribed in Clause 1, Article 36 of Decree 34/2018 / ND-CP of the Government.
The above-mentioned regulation helps to define more clearly the cases of small and medium enterprises being assisted in dealing with credit risks, creating favorable conditions for enterprises to develop.
On July 31, 2019, the State Bank of Vietnam issued Circular 10/2019 / TT-NHNN amending and supplementing a number of contents on the procedure for specialized banking inspection prescribed in Circular No. 36/2016 / TT-NHNN. The circular takes effect from September 16, 2019.
Some noticeable contents in the Circular:
Adding more State Bank branches in Ho Chi Minh City and State Bank branches in Hanoi branches to the subjects of application of specialized regulations on inspection of the State Bank (Clause 1, Article 1);
Amend and supplement the rights of the Chief Inspector of the State Bank in specialized inspection activities:
+ Supplementing the authority of Chief Inspector: issuing inspection decisions for the subjects of bank inspection under the management of the State Bank. To be collected the inspection of the anti-corruption work, the large and complex specialized inspections, the re-inspections or when deeming it necessary (Clause 3, Article 1);
+ Amendment on the authority to issue re-inspection decisions of the Chief Inspector. Accordingly, the Chief Inspector is not entitled to decide on re-inspection with cases concluded by the Director of the Banking Inspection and Supervision Department (Clause 3, Article 1).
Amendments to the standards of the inspection team leader (Clause 4 Article 1).
+ Must be from the Head or chief inspector or equivalent or more of the cases that must be appointed by the Governor of the State Bank or the Chief of Banking Inspection and Supervisor.
+ Must be from the Deputy Head or Inspector or more of the cases must be Director of the State Bank branch, Director of Banking Inspection and Supervision Department, Chief Inspector, Supervisor State Bank branch appoint the head of the inspection team.
Additional duties of the inspection team leader in case of temporary suspension of inspection. Accordingly, in case of temporary suspension, the head of the inspection team shall issue a written notice to the inspected subject and report it to the person who issued the inspection decision (Clause 5, Article 1).
The promulgation of Circular 10/2019 / TT-NHNN has overcome the shortcomings and inconsistencies of Circular 36/2016 / TT-NHNN. To strengthen the legal basis when conducting specialized inspection of the State Bank as well as clearly define responsibilities for individuals and organizations when performing their tasks.
On August 8, 2019, the Ministry of Finance issued Circular 48/2019 / TT-BTC guiding the setting up and handling of reserve fund at enterprises. Circular 48/2019 / TT-BTC (hereinafter referred to as “Circular”) takes effect from 10 October 2019. This Circular expires 03 previous Circulars: Circular 228/2009 / TT-BTC, Circular 34/2011 / TT-BTC, Circular 89/2013 / TT-BTC.
Summary of some new points of the Circular are as follows:
1. Regarding payment of reserve fund for the losses of financial investments:
Enterprises will not be allowed to set up risk provisions for outward investments, only risk for domestic financial investments. Specifically:
– In Clause 4, Article 3 of the Circular stipulates: “Article 3. General principles in setting up provisions: … 4. Enterprises do not set up risk provisions for offshore investments. ”
– At Point a, Clause 1, Article 5 of the Circular stipulates: “1. Securities investments: a) Objectives of making provisions are securities issued by domestic economic organizations in accordance with the law on securities owned by enterprises at the time of making financial statements. in the year, the company satisfies the following conditions: – Being listed or registered for trading on the domestic stock market that enterprises are investing; – Is a securities freely traded in the market and at the time of preparing the financial statement, the actual stock price in the market is lower than the value of securities investment recorded in the accounting book. ”
2. Regarding the setting up of receivable bad debt reserve:
– Like the regulations in the previous documents, the Circular still stipulates that the Debt reconciliation record is one of the documents to prove that the amount of unpaid debt is a basis for enterprises to set up funds. provision, however, this Circular adds: “In the absence of debt reconciliation, a written request for reconciliation of debt or debt collection documents sent by the enterprise (with postmark) electricity or confirmation of the delivery unit); ”This is a new and great remedy for cases where the debtor” refuses “to sign a Memorandum of Debt reconciliation with the Enterprise when it is insolvent.
– In addition, with regard to the provision for doubtful debts, the Circular stipulates that telecom service businesses will have separate provisions, which will be different from those of other businesses. ordinary karma.
3. Regarding the setting up of warranty for products, goods and services of construction works
– Adding the type of “Services” of construction works to objects to be set up for provision, which the previous documents have not mentioned.
From the above analysis, it shows that Circular No. 48/2019 / TT-BTC has brought significant values to Vietnamese enterprises, helping Vietnamese enterprises to solve a lot of difficulties in settling payments. The revenue is directly related to the amount of corporate income tax payable, especially there are more specific and feasible provisions for the reserve fund for doubtful debts. In addition, this Circular has unified all previous regulations which are scattered in many different documents related to deduction for reserve fund for devaluation of inventory, loss of investments, doubtful debts and warranty of products, goods, services and construction works at the enterprise, which creates favorable conditions for enterprises to grasp, understand and apply this provision on reality. Therefore, this Circular is a solid basis for many enterprises to minimize risks and maximize profits in their business processes.
On June 30, 2019, Vietnam and EU signed Vietnam – EU Free Trade Agreement. The Agreement will come into effect after competent authorities of two parties ratify the Agreement.
In Chapter 2 on national treatment and market access for goods of EVFTA, Article 2.15 provides that “Viet Nam shall adopt and maintain appropriate legal instruments allowing foreign pharmaceutical companies to establish foreign-invested enterprises for the purposes of importing pharmaceuticals which have obtained a marketing authorisation by Viet Nam’s competent authorities. Without prejudice to Viet Nam’s schedules included in Annex 8-B (Viet Nam’s Schedule of Specific Commitments), such foreign-invested enterprises are allowed to sell pharmaceuticals which they have legally imported to distributors or wholesalers who have the right to distribute pharmaceuticals in Viet Nam”. According to this Article, investors from EU have the right to establish an enterprise in Vietnam in pharmaceuticals import.
Moreover, according to service commitments of Vietnam in WTO and EVFTA, foreign-invested enterprises cannot distribute pharmaceuticals in Vietnam because this is excluded from these two Free Trade Agreements. Therefore, foreign-invested enterprises only have the right to import pharmaceuticals to sell to distributors according to Article 44.1(d) of Law on Pharmaceuticals 2016.
In the past, foreign-invested enterprises were not able to import pharmaceuticals since Decree No. 102/2016/ND-CP provides that these enterprises had to have the right to distribute pharmaceuticals to do so. However, as the content above, foreign-invested enterprises can not distribute pharmaceuticals.
However, the right to import pharmaceuticals of foreign-invested enterprises only mentions in EVFTA but other Free Trade Agreement. Moreover, Law on Pharmaceuticals 2016 only provides about “importer not having the right to distribute pharmaceuticals” (i.e importer who is foreign-invested enterprise). Therefore, it seems that pharmaceuticals import market is only opened to EU investor.