Fresh policies come into effect in August

Aquatic development

The Government on July 7, 2014 issued Decree 67/2014/ND-CP on some policies for aquatic development.

Accordingly, individuals/organizations (ship-owners) can borrow as much as 95% of the total investment at an interest rate of 7% for building new iron-clad vessels in favor of offshore fishing.

Ship-owners can also borrow up to 70% of the total investment at the same interest rate for building new wooden vessels. 

Ship-owners have to pay interest only from 1%-3% per year depending on the material of the hull and the engine capacity.

Credit loan term will be 11 years.

They will also receive free training courses on operating iron-clad ships, fishing and preservation techniques, and maintenance and repair charges.

The decree shall take effect since August 25.

New regulations on reception of citizens

Decree 64/2014ND-CP on detailed implementation of some the Law on Reception of Citizens stipulates that leaders of Governmental bodies and public non-business units are responsible for receiving citizens at least one time per month.

They have to receive citizens in unscheduled cases which are complicated and involve a large number of participants or cases that may cause serious damages to State/public assets, seriously infringe upon life and property of citizens or affect security, politics, social order and safety. 

New guidelines on selecting contractors

Decree 63/2014/ND-CP guides the implementation of the Bidding Law 2013 with respect to selecting contractors.

The Decree, scheduled to come into effect since August 15, is expected to ensure transparency and efficiency throughout the bidding process.

The Decree also covers regulations on incentives for selecting bidders and for the use of local products.

In addition, the ceiling for direct procurement (monetary limits for direct procurement) was lowered to VND 500 million (US$ 23,500) for a consultancy bidding package and VND 1 billion (US$ 47,000) for procurement bidding package.

The Decree also raises the standards for evaluation of bids, which will help procuring agencies and entities to effectively select contractors appropriate to the demands of each bidding package.

Classification of SOEs

According to Decision 37/2014/QD-TTg, dated June 18, 2014 on criteria, lists for classification of State-owned enterprises (SOEs), the State shall hold 100% of charter capital in SOEs operating in 16 industries and fields.

The State will hold over 75% stake in enterprises operating in management, exploitation and maintenance of airports and terminals, national seaports; domestic road and waterway systems; telecommunications infrastructure; large-scale mineral exploitation; petroleum and natural gas.

The State will hold from 65%-75% stake in enterprises operating in such areas as petroleum and natural gas processing; cigarette production; rubber and coffee plantation and processing and forest plantation and management in strategic, remote and mountainous zones; air transport, electricity distribution, wholesale of petroleum and food, among others.

Meanwhile, the State will only hold from 50% to under 65% stake in companies involving in urban water supply and sewerage; urban lighting and environmental sanitation; basic chemical substance production, railway transport, international sea transport and others.

The decision, scheduled to take effect since August 8, aims to accelerate the re-arrangement and reform of the current SOEs.

Land and water surface rent exemption

Circular 77/2014/TT-BTC guides the implementation of Government’s Decree 46/2014/ND-CP on collection of land and water surface rental.

Under the Circular, investment projects may be considered for exemption and reduction of land and water surface rental if they are formed, verified and approved based on legal regulations.

The Circular took effect on August 1, 2014.

Fresh guidelines on corporate income tax

The Ministry of Finance on June 18, 2014 promulgated Circular 78/2014/TT-BTC (Circular 78) guiding the implementation of the Law on Corporate Income Tax.

Under Circular 78, since January 1, 2014, the corporate income tax declined to 22% (instead of 25% previously).

The tax rate will be further cut down to 20% since 2016.

The Circular will take effect from August 2, 2014, replacing Circular 123/2012/TT-BTC dated July 27, 2012./.

By Huong Giang