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Overview of Decree 116 on Conditions for conducting automobile manufacturing, assembly, and import; and providing automotive warranty and maintenance

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On October 17th, 2017, the Government issued Decree 116/2017/ND-CP (“ Decree 116 ”) specifying conditions for conducting automobile manufacturing, assembly, and import; and providing automotive warranty and maintenance services. This decree came into effect on the issuance date. Notable regulations of Decree 116 are those providing conditions and procedures for obtaining 3 types of new business licenses issued by the Ministry of Industry and Trade, (“ MOIT ”) namely: (1) a Certificate of satisfaction of conditions for automotive manufacturing and assembly, (2) a Business License for automobile import, and (3) a Certificate of automotive warranty and maintenance workshop. The conditions for applying for these certificates and business license are as follows: (1)Certificate of satisfaction of conditions for automotive manufacturing and assembly: An enterprise must meet the following conditions[1]: (a)       Have the lawful right to use a manufacturing factory, automobi
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LATEST LEGAL NEWS UPDATE

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VCI LEGAL contributes the Legal Chapter for VIETNAM COUNTRY REPORT 2017 Oxford Business Group Our firm has 4 full versions of the Legal Chapter posted on our website, including: English ,  Vietnamese ,  Japanese  &  Korean . Please feel free to contact us to receive a pdf file of this Legal Chapter.
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INCREASE OF REGIONAL MINIMUM WAGE | 2017 Good news for the pay days

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On 14th November 2016, the Government of Vietnam issued Decree 153/2016/ND-CP providing regional minimum wages applied for employees working under an employment contract (" Decree 153 ") to replace Decree 122/2015/ND-CP dated 14th November 2015. According to Article 3.1 of Decree 153, the regional minimum wages for employees working under an employment contract shall be as follows: For Area I, the regional minimum wage is 3,750,000 VND/month (an increase of 250,000VND); For Area II, the regional minimum salary is 3,320,000 VND/month (an increase of 220,000 VND); For Area III, the regional minimum wage is 2,900,000 VND/month (an increase of 200,000 VND); For Area IV, the regional minimum wage is 2,580,000 VND/month (an increase of 180,000 VND).
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SECURITIES TRADING AND INVESTMENT Foreign Major Equity & Local Overseas Presence

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On July 1, 2016, the Government issued Decree No. 86/2016/ND-CP setting out regulatory conditions for securities trading and investment enterprises (“ Decree 86 ”). Some notable provisions of Decree 86 are as follows: 1. Certain conditions for foreign organizations to acquire more than 51% of the charter capital of a securities company in Vietnam: (a)      A foreign organization purchasing shares exceeding 51% of the charter capital of a Vietnamese securities company shall seek (i) its own internal approvals and (ii) approvals from the General Meeting of Shareholders, Members’ Board or Owners of Vietnamese securities company to perform such acquisition; (b)     Only owner equity or other legitimate capital funds of the foreign organization is permitted to be used for the share purchase; the acquirer must not be subject to foreign ownership limits provided under the laws of Vietnam 2. Securities companies can be restructured in various forms including merger, acquisition or
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SAFETY and CONFIDENTIALITY | BANKING SERVICES on the INTERNET

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Circular No.35/2016/TT-NHNN (“ Circular 35 ”), replacing Circular No. 29/2011/TT-NHNN on safety and confidentiality in the provision of banking services on the internet, was issued by the State Bank of Vietnam on 29th December 2016 and takes effect on 1st July 2017. Circular 35 features some notable changes, as follows: A bank or credit institution’s IT infrastructure which provides Internet Banking (“ IB ”) services shall have intellectual property protection: If there is a failure to provide support, or the service provider is unable to upgrade new versions, there must be a plan for upgrading or replacement. A number of specific technical requirements shall be applied to the network system, communications, security, confidentiality and the IB application. For example, a bank or credit institution shall control the source code of the IB application by implementing minimum checking requirements; and to appoint specific individuals to manage the source code of the IB application;
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Legalized Gambling | A Pilot Case of CASINO BUSINESS IN VIETNAM

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On January 16th 2017, the Government issued Decree No. 03/2017/ND-CP (“ Decree 03 ”) on casino business. I.                  Notable regulations under Decree 03 1.                 Vietnamese citizens can gamble in casinos Upon the issuance of Decree 03, Vietnamese are only allowed to play in two casinos in Phu Quoc (Kien Giang) and Van Don (Quang Ninh) under a pilot project. Now, Vietnamese citizens can enter casinos and gamble with certain conditions. 2.                 Certain conditions for Vietnamese players Vietnamese players must satisfy the following legal and financial conditions: (i)                They must be at least 21 years old and have full civil capacity under the laws of Vietnam. (ii)              A player must have sufficient financial capacity to play in a casino. The player must prove their regular income is 10 million VND/month or more, or subject to tax level 3 or above, in accordance with the Law on Personal Income Tax. (iii)            A play
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ATIGA RULES OF ORIGIN IN VIETNAM Asean Trade In Goods Agreement

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Circular 22/2016/TT-BCT (“ Circular 22 ”) was issued on October 3, 2016 come into effect from November 15, 2016 by the Ministry of Industry and Trade to replace Circular 21/2010/TT-BCT, regarding the implementation of origin rules of ASEAN Trade in Goods Agreement (“ ATIGA ” ). Circular 22 was issued within the context of ASEAN countries having agreed on amendments to the origin rules chapter of ATIGA, including:  (i) the list of technology commodities in keeping with the HS codes of 2012 , and (ii)  the C/O issuance and inspection procedures amended for the application of digital C/O (Form D) . In order to include the above international commitments of Vietnam into domestic legal framework, Circular 22 provides the following crucial changes: 1. Appendix IV:  the list of technology commodities is in keeping with the HS codes of 2012. The new list is composed of 441 HS codes, whereas the previous one contained 411 HS codes, ie. there are supplemental 30 HS codes. 2. Appendix
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