Issue November 2022

Le Hong Phong

Le Thi Tuyet Mai 

Decree 153/2020/ND-CP prescribing private placement and trading of privately placed corporate bonds in domestic market and offering of corporate bonds in international market, issued on December 31, 2020, effective into force on January 1, 2021. After 18 months implemented of the decree, before signs of “hot” growth accompanied by many potential risks, state management agencies have issued consecutive warnings to issuers and investors, especially individual investors. However, the reality shows that there is still a deliberate violation to offer secondary sale to individual investors to buy individual corporate bonds or contribute capital through investment cooperation contracts with securities investors under Civil Code. The law observance of the bond issuer is not strict and in compliance with the legal framework, many serious violations have occurred.

To the corporate bond market, the Prime Minister and the Minister of Finance have issued guiding documents on the management, especially stepping up the inspection of issuance, investment, and service providing services in the corporate bond market [1].

In the face of the fast-growing corporate bond market and many risks, the Government has issued a new legal framework that is safe for investors, promotes a transparent market and enhances the supervisory responsibility of investors in state agencies.

The most notable aspects of the New Decree 65/2022/ND-CP amendments to Government’s Decree NO. 153/2020/ND-CP dated December 31, 2020 prescribing private placement and trading of privately placed corporate bonds in domestic market and offering of corporate bonds in international market.

1. Purpose of issuing bonds

Decree 65/2022/ND-CP amending regulations on bond issuance purposes in order to strengthen the responsibilities and obligations of issuers in using proceeds from bond issuance for the right purposes.

According to, bonds are issued for executing investment projects/programs, restructuring the issuer’s debts or serving other purposes as prescribed in specialized laws. The issuer is required to clearly indicate purposes of the bond issue in its bond issuance plan, and disclose the same to investors to serve their subscription for the bond issue. The funds raised from a bond issue shall be used for the purposes which have been defined in the issuer’s bond issuance plan and notified to investors[2].

Decree 65/2022 allows issuers to issue corporate bonds for the purpose of debt restructuring. This is one of the key points in the direction of easing to help businesses with the purpose of debt restructuring (by regulations) still have access to the corporate bond issuance channel.

 2. Increase the par value of domestic bonds to 100 million

The New Decree has increased the par value of bonds from VND 100,000 (about US$4.20) (and a multiple of VND 100,000 or about US$4.20) to VND 100 million (about US$4,200) (and a multiple of VND 100 million or about US$4,200). This increase also limits the scope of eligible investors and seems designed to exclude small retail investors. Specifically, Decree 65/2022/ND-CP states: “Face value of a bond offered in the domestic market is VND 100.000.000 (one hundred million) or a multiple of VND 100.000.000 (one hundred million)[3].

3. Bond buyers

Decree 65/2022/ND-CP also stipulates specifically about Bond buyers. Accordingly, Buyers of non-convertible bonds without warrant are professional investors as defined in the Law on securities.

An individual that is identified as a professional investor as prescribed in Point d Clause 1 Article 11 of the Law on Securities shall be eligible to buy privately placed bonds if he/she holds a quantity of listed or registered securities, excluding securities borrowed to conduct margin transactions and those of REPO* transactions, of which the daily average price determined in a minimum period of 180 consecutive days preceding the date on which he/she is identified as a professional investor shall not be lower than VND 02 billion. The certification of a professional investor status as prescribed in this Point shall be valid for 03 months from the date of certification.

The New Decree guides on requirements for eligible investors, as well as documentation as evidence for such eligibility, accordingly confirms the responsibilities of both issuers and securities companies in the determination and certification of investor eligibility with respect to participation in private bond issuances.

Decree 65/2022/ND-CP adds responsibilities of bond buyers “Conduct bond transactions according to the provisions of Article 16 Bond trading of Decree 65/2022/ND-CP; not sell bonds to or make joint investment in bonds with investors who are not professional investors in any forms. Capital mobilization and purchase/investment in corporate bonds by credit institutions, FBBs and fund management companies shall comply with specialized laws[4].

Buyers of convertible bonds and warrant-linked bonds are professional investors and strategic investors of which the number of strategic investors of an issue is limited to 100[5].

4. Supplementing the principle of private corporate bond issuance

Bond issuance conditions comply with the Law on Securities and the Law on Enterprises. The Decree supplements regulations on bond offering documents including: (i) credit rating results according to cases and implementation schedule as prescribed for bond offering to the public, from January 1st, 2023; (ii) the contract signed with the representative of the bondholder in case of offering to individual professional securities investors and (iii) the commercial bank’s confirmation on the opening of an account to receive money for purchase bonds.

Upon completion of the offering, bonds must be (i) registered and deposited with the Vietnam Securities Depository (VSD) and (ii) registered for trading with the Stock Exchange. Previously, there was no particular guidance on these requirements, private issued bonds could be registered with a depository member of the VSD. These new provisions should increase secondary trading and create a more transparent secondary market.

The bond exchange will need to be set up within nine months after issuance of Decree 65/2022. The VSD’s bond registration and depository and the bond trading system of the Stock Exchange are targeted to come into operation in June 2023. Pending the setting up of the bond exchange, privately-issued bonds could continue to be traded under Decree 153/2020.

Decree 65/2022/ND-CP provides: With regard to bonds issued in the domestic market, their terms and conditions as prescribed in Article 6 of this Decree may be changed if the change is approved by [6]:

a) The issuer’s competent authority; and

b) A number of bondholders that represents at least 65% of total outstanding bonds of the same type

Information on the change of conditions and terms of bonds must be unusually disclosed by the issuing enterprise [7].

5. Representative of bondholders

The Decree adds regulations on the representative of bondholders to strengthen the supervision of the purpose of using the bond capital of the issuer as well as strengthen the supervision of the implementation of other commitments of the issuer.

The representative of bondholders strengthens the supervision of the purpose of using the bond capital of the issuer, as well as strengthens the supervision of the implementation of other commitments of the issuer.

Where bonds are offered to professional investors that are individuals, the bond offering dossier must include the contract signed with the representative of bondholders as prescribed in Clause 7 Article 14 of this Decree and the Law on securities [8].

In addition, the representative of bondholders shall report to the State Securities Commission and the Stock Exchange on a quarterly and annual basis and report in case the issuer is found to violations affect the interests of bondholders [9].

6. Modify time of bonds offered in each wave

Decree 153/2020/ND-CP stipulates that bonds offered in each wave must be distributed within 90 days from the date of disclosure of information before offering. Total duration for offering of bonds in multiple waves shall not exceed 12 months from the issue date of the first offering wave

According to Decree 65/2022/ND-CP, Bonds offered in each offering wave must be distributed within 30 days from the date of disclosure of information before offering. Total duration for a multiple-wave offering shall not exceed 06 months from the issue date of the first offering wave.

A bond issuer must sign a contract with a bond issuance consultant which is securities company in all cases. Before Decree 65/2022, a bond issuer being a securities company is exempted from engaging a bond issuance consultant.

A private bond issuer must obtain a credit rating from a rating agency (1) if the total par value of issued bonds of such issuer in each 12-month period prior to the issuance date is greater than VND500 billion and 50% equity recorded on its latest financial statements; or (2) the total par value of outstanding bonds of such issuer as at the time of registration for issuance is greater than 100% equity recorded on its latest financial statement. Before Decree 65/2022, this requirement only applies to public issuance of corporate bonds.

Decree 65/2022 now requires the bond issuance agent (or the underwriter) to certify that the bond issuer has received the bond proceeds into its account.

7. Enhanced Responsibilities of bidding, underwriting and brokerage services:

The New Decree provides that (i) only securities companies are permitted to provide services of auction, guarantee and agency, and (ii) commercial banks and branches of foreign banks are permitted to provide agency services if approved by the State Bank of Vietnam and licensed to engage in depository service by the State Securities Commission[10]. These “intermediaries” must not be related parties of the issuer and enter into a service contract with the relevant issuer, in which rights and responsibilities of each party must be specified.

The New Decree also imposes additional responsibilities of these intermediaries to provide true and accurate information on the bond issuance to the investors and ensure distribution of bonds only to eligible investors. This is a clear step towards promoting more responsibility on the part of these intermediaries.

8. Cases in which bonds are redeemed before maturity[11]:

This is a completely new regulation compared to Decree 153/2020/ND-CP, whereby Decree 65/2022/ND-CP requires the responsibility of the issuer. Additional Decree stipulates that Bonds must be compulsorily redeemed before maturity when the issuer fails to comply with the bond issuance plan (including the capital use plan), and that violation cannot be rectified or violate the law; Before and after the bond issuance, there must be a disclosure of information on solvency, an audit report on the financial position and an audit of the use of capital for the bond issuance purpose.

Cases in which bonds are redeemed before maturity:

a) The redemption is made under an agreement between the issuer and bondholder.

b) Bonds shall be compulsorily redeemed at the request of investors in the following cases:

  • The issuer commits violations against regulations of law on offering and trading of corporate bonds according to decision issued by a competent authority, and such violations cannot be rectified or a number of bondholders that represents at least 65% of total outstanding bonds of the same type refuses to give approval for remedial measures for such violations.
  • The issuer fails to comply with the bond issuance plan, and that violation cannot be rectified or a number of bondholders that represents at least 65% of total outstanding bonds of the same type refuses to give approval for remedial measures for that violation.
  • Other cases defined in the bond issuance plan which is prepared according to Article 13 of Decree 65/2022/ND-CP (if any).

Note: The case of compulsory redemption at the request of the investor does not apply to the case where the bonds are withdrawn under the decision of the competent authority [12].


With the bond issuance of new regulations on the issuance and trading of privately placed corporate bonds, it will promote the formation of professional long-term investment institutions in a transparent and sustainable market. Strengthen coordination between Ministries and sectors in operating, managing and supervising the stock market, bond market, money market, bank credit and proactively informing, propagating and orienting the market. Establish an organized trading market and complete regulations on management and supervision mechanisms.

These represent a key step in ensuring transparency and investor protection in the bond market which industry experts have considered to be lacking.

Market participants, in addition to learning about corporate bonds, need to comply with the law before and during the transaction. Bond issuer must ensure the truthfulness of bond offering documents, use capital for the right purposes, and be responsible for explaining to investors information related to the issuance plan and legal risks management, investment risks, capital use risks, rights, interests and liabilities of the parties when issuing and investing corporate bonds.

*          Repo is a generic name for both repurchase transactions and buy/sell-backs. Repos are sometimes known as ‘sale-and-repurchase agreements’ or just ‘repurchase agreements’. In some markets, the name ‘repo’ can be taken to imply repurchase transactions only and not buy/sell-backs. Repurchase transactions are also known as ‘classic repo’. Under EU regulation — along with securities lending, commodities lending and margin lending — repurchase transactions and buy/sell-backs are types of ‘securities financing transaction’ (SFT)

[1]                 Directive No. 01/CT-BTC dated April 25, 2022 of the Ministry of Finance

[2]                 Clause 2 Article 5 of Decree 65/2022/ND-CP

[3]                 Point a Clause 4 Article 6 of Decree 65/2022/ND-CP

[4]                 Point dd Clause 2 Article 8 of Decree 65/2022/ND-CP

[5]                 Point b Clause 1 Article 8 of Decree 65/2022/ND-CP

[6]                 Clause 4 Article 5 of Decree 65/2022/ND-CP

[7]                 Point c clause 1 Article 22 of the Decree 65/2022/ND-CP

[8]                 Point dd clause 2 Article 12 of the Decree 65/2022/ND-CP

[9]                 Clause 2 Article 33 of Decree 65/2022/ND-CP

[10]               Clause 4 Article 14 of Decree 65/2022/ND-CP

[11]                Clause 3 Article 7 of Decree 65/2022/ND-CP

[12]                Clause 4 Article 7 of Decree 65/2022/ND-CP

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LEGAL UPDATE – OCTOBER 2022 – Decree 53/2022: Some notable points in implementation of Law on Cybersecurity

Issue October 2022

Nguyen Trong Nghia

Le Anh Kien 

On 12 June 2018, the National Assembly passed the Law on Cybersecurity and took effect from 01 January 2019, however, some provisions were not clearly specified and there were many obstacles in practical implementation. Therefore, recently on 15 August 2022, the Government issued the Decree No. 53/2022/ND-CP (“Decree 53”) in order to detail a number of articles of the Law on Cybersecurity.

Decree 53 takes effect from 01 October 2022 and has a number of noted key points as follows:

1. Data localization     

Data localization is considered as the most remarkable point of Decree 53. Accordingly, the subjects of data localization are foreign enterprises that conduct business in Vietnam in one of the following fields: Telecommunications services; services of data storage and sharing in cyberspace; supply of national or international domain names to service users in Vietnam; ecommerce; online payment services; payment intermediary; services of transport connectivity via cyberspace; social networks and social media; online video games; and services of provision, management, or operation of other information in cyberspace in the forms of messages, phone calls, video calls, emails or online chat, are obliged to comply with the data localization requirements and set up a branch or a representative office in Vietnam in case the service(s) provided by foreign enterprises used to commit a violation of the Law on Cybersecurity, which had been notified and requested to coordinate, prevent, investigate and handle in writing by the Department of Cybersecurity and High-tech Crime Prevention under the Ministry of Public Security but the foreign enterprises fail to comply, incompletely comply with, or prevent, obstruct, disable, or invalidate cybersecurity protection measures implemented by the cybersecurity protection specialized force. The time to set up a branch or representative office in Vietnam starts from the foreign enterprise receives the request to set up a branch or representative office in Vietnam until the foreign enterprise no longer operates in Vietnam or regulated services are no longer available in Vietnam.

With regard to the domestic enterprises, Clause 2 Article 26 of Decree 53 stipulates: “Domestic enterprises store data specified in Clause 1 of this Article in Vietnam”. This provision can be understood that all domestic enterprises are obliged to localize all types of data according to the law. However, there may be another viewpoint that only domestic enterprises “provide services on telecommunications networks and the Internet, value-added services in cyberspace in Vietnam have activities on collecting, exploiting, analyzing and processing data about personal information, data on the relationship of service users, data created by service users in Vietnam” is required to localize data in Vietnam (quoted from Clause 3, Article 26 of the Law on Cybersecurity 2018).

2. Data subject to data localization

According to Decree 53, the types of data that enterprises must localize in Vietnam include (i) Data regarding personal information of service users in Vietnam; (ii) Data generated by service users in Vietnam: user service account name, time of service use, credit card information, email address, network address (IP) of most recent login, logout, registered phone number for the account or data and (iii) Data about the relationship of service users in Vietnam: friends and groups with which the user connects or interacts.

3. Form and time period of data localization

The form of data localization in Vietnam is decided by the enterprises.

About the time period of data localization, Decree 53 stipulates: “The data localization period specified in Article 26 of this Decree starts from the time the enterprise receives the data localization request until the end of the request. Minimum localization period is 24 months.”

This regulation does not specify whether it is applicable to the domestic enterprises or foreign enterprises, however, it can be understood that this regulation only applies to foreign enterprises because such enterprises are obliged to localize data at the request of a competent state authority. For domestic enterprises, data localization can be understood that it must be carried out throughout the operation of such enterprises, from the date Decree 53 takes effect.

4. Other provisions

Other than the regulations of data localization, Decree 53 also contains other critical provisions related to the establishment of cybersecurity criteria for important information system for national security; cybersecurity conditions for important information systems for national security; order and procedures for applying cybersecurity protection measures; cybersecurity protection activities in State authorities, central and local political organizations./.

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Issue September 2022

Trinh Hoang Lien

Phan T.Lan Phuong 
Legal Assistant

There are some changes in the regulations on electronic gambling for foreigners business after the issuance of the Decree No. 121/2021/ND-CP dated December 27, 2021 by the Government regulating the business of prize-winning electronic games for foreigners in the territory of the Socialist Republic of Vietnam (“Decree No. 121”) replacing Decree No. 86/2013/ND-CP dated 29th July, 2013, Decree 175/2016/ND-CP dated 15th February, 2017 and Decree 151/2018/ND-CP dated 7th November, 2018 (hereinafter collectively referred to as “Decree 86”). Decree 121 takes effect from 12th February, 2022 and is detailed by Circular 39/2022/TT-BTC (“Circular 39”) dated 24th June, 2022 and Circular 09/2022/TT-NHNN (“Circular 09”) dated 12th July, 2022. This article summarizes notable changes that have significant implications for this business.

1. Persons eligible for participating in e-gambling

Regulations on people eligible for participating in e-gambling under new regulations are stricter than those in the Decree 86, specifically, foreigners and overseas Vietnamese, who legally enter Vietnam with valid passports or international travel documents issued by foreign competent authorities and visa is in validity; have full civil act capacity as prescribed by Vietnamese law and willingly comply with Game Rules as well as other provisions under Decree 121.

Accordingly, Decree 121 does not allow foreigners and overseas Vietnamese illegally entering Vietnam or legally entering Vietnam but not leaving the country before visa expired   according to regulations to participate in e-gambling.

2. Business conditions and licenses

Basically, an enterprise operating this business must have two sublicenses, a certificate of eligibility for prize-winning electronic games business issued by the Ministry of Finance and a license for collection and payment in foreign currency and other foreign exchange operations issued by the State Bank before commencing its operation.

Conditions that enterprises shall fully satisfy for being issued the certificate of eligibility for prize-winning electronic games business under the Decree 121 are harder. Remaining basic regulations as those in Decree 86, such as having tourist accommodation establishments of five-star class; having an area for arranging Business Location satisfying the conditions under regulations; having managers or operators for Business Location who satisfy the conditions and standards (graduated from university and having experience in managing and operating prize-winning electronic game business for more than 3 years), having a business plan, Decree 121 sets higher conditions in respect of the followings:

  • Increasing the minimum charter capital from VND 200 billion to VND 500 billion and requiring that the profit of fiscal year preceding the year of application for the business eligibility certificate is gain;
  • Increasing the storage time of electronic equipment and camera systems for constant monitoring and surveillance of all activities in the Business Location (24/24h) to at least 180 days from the date of recording and ensuring the clear image of all footage at the following locations: the entrance and exit area of the Business Location; the area where slot machines are located; cashier area, treasury for counting cash, conventional currency and storing equipment for cash and conventional currency. The previous regulations only required minimum storage period of 30 days for such areas and 15 days for others.
  • The slot machines purchased or imported for operation shall be brand new, adhering to the technical specifications announced by manufacturers, and certified by an independent inspection organization from a state member of G7.
  • Strictly regulating the number of slot machines to be licensed. The maximum rate of machines is still 1 machine per 5 accommodation rooms as per the previous regulations, but only counted on the accommodation rooms that have been put into operation.

3. Management of conventional currency

The mechanism for issuing and “registering” conventional currency with the Department of Finance and the tax authority in respect of its model, quantity, and type before putting it into business and re-registering this information upon changes has been replaced by a mechanism of “notifying” to the Department of Finance and the tax authority as the basis for issuing invoices to calculate the revenue of the enterprise. In addition, Decree 121 also annuls the provision on basic information that the conventional currency of enterprise must contain, subsequently, the conventional currency only needs to have its mark and signs for identification.

Regarding this new regulation, Decree 121 has simplified the conditions for the form and quality of the conventional currency as well as the procedures to apply this currency in operation. Furthermore, the enterprises also ease the burden of obtaining licenses or approvals issued by competent authorities on using conventional currency.

The payment for conventional currency under the provisions of Circular 09 remain unchanged in comparison with previous regulations. Players can pay by cash, transference from overseas accounts or from their foreign currency payment accounts opened at permitted banks in Vietnam to the operator’s specialized foreign currency accounts, or by credit card. These regulations seem very limited in consideration of the emerging of numerous non-cash payment methods currently.

4. Loosen deductible expenses

Regulations on accounting expenses for such business are loosen. Specifically, the cap of hiring management fees, which was previously limited to 4% of revenue, is no longer applied.

Decree 121 and its guiding regulations shall tighten state management on such conditional business on the one hand and create a more proper environment for businesses after satisfying all regulated conditions.

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LEGAL UPDATE – SEPTEMBER 2022 – Decree 25/2022: New regulations on postal service business in Vietnam

Issue September 2022

Ha Hai

Phan Minh 

Since the Government issued Decree No. 47/2011/ND-CP dated June 17, 2011 detailing the implementation of a number of provisions of the Postal Law (“Decree 47”), the Postal service industry in Vietnam has experienced strong growth. The postal service revenue increased from approximately VND 4,135 billion in 2010 to VND 36,950 billion in 2020, contributing about 0.8 per cent to the national GDP. However, after nearly 10 years of implementation, some contents of Decree 47 have revealed to be inconsistent with reality and out of date with the modern technological development trends. To address these issues and limitations, the Government issued Decree No. 25/2022/ND-CP on April 12, 2022, amending and supplementing a number of articles of Decree 47 (“Decree 25”). On June 1, 2022, Decree 25 came into force. The followings are some salient points of Decree 25:

1. Abolishing requirements on appraisal of investment projects

Decree 47 previously stipulates that “Foreign-invested projects with a capital of less than 15 billion VND must be appraised but not required to submit to the Prime Minister for decision on investment policies” and “Foreign-invested project with a capital of 15 billion Vietnam dong or more must be appraised before submitting to the Prime Minister for decision on investment policies”. This regulation, however, is currently incompatible with the Investment Law 2020 and its guiding documents. On the other hand, this regulation also discriminates between domestic investors and foreign investors when they engage in postal services business in Vietnam. Therefore, Decree 25 abolished this provision.

2. Abolishing regulations on financial conditions of postal enterprise

Decree 25 officially abolishes the requirement that enterprises must have a minimum capital of 02 billion VND in case of providing intra – and inter – provincial postal services and 05 billion VND in case of providing international postal services due to the ineffectiveness of this regulation in terms of state management and the barriers on market entry.

3. Supplementing regulations on notification and publication of postal service charges

The notification of postal service charges is not specified in Decree 47 but specified in Article 5 of Circular 02/2012/TT-BTTTT dated March 15, 2012 of the Ministry of Information and Communications providing detailed regulations on the supply and use of postal services. Under this regulation, enterprises must notify the postal licensing agency of any changes to the applicable postal service charges and any newly arising postal service charges within 30 days from the effective date of the new postage rates.

Decree 25 has upgraded and accomplished regulations on notification of postal service charges from Circular 02/2012/TT-BTTTT, in which the time limit for enterprises to notify changes of postal charges or apply newly arising postal charges is reduced to 05 working days from the effective date of the new postal charges. Notifications can be made through the online information system. The postal licensing agency shall be entitled to use the postage rate information announced by companies for the purpose of analyzing, synthesizing, forecasting market price fluctuations and building a database and shall take responsibility for supervising, examining and inspecting the content of notices of postal service charges in accordance with law.

In addition to the aforementioned notification requirements, the enterprise is also obliged to publicize the postal service charges since it commences offering the service in one or several forms, such as posting at the service points, notifying in writing, publishing on the website, or in other forms to facilitate the observation and recognition of all entities. The postal service charges publicized by the companies must be consistent with those that are announced to the competent postal state agencies.

4. Abolishing the requirement to analyze the feasibility and socio-economic benefits in the application for a postal license

Previously, Decree 47 required enterprises applying for a postal license to provide analysis on the feasibility and socio-economic benefits of the business plan included in the application dossier through the indicators of output, revenue, cost, number of employees, tax payable to the state budget, rate of return on investment in the next 3 years from the year of application for a postal license. However, through the practice of appraising applications, the Ministry of Information and Communications found that this requirement contributes little in proving the feasibility of the business plan, causing difficulties and costly damage for enterprises as well as interfering deeply in production and business activities of enterprises. Therefore, Decree 25 has been abolished this regulation to facilitate enterprises in participating in investment and trading in postal services.

5. Legal validity of the electronic document certifying the acceptance of a postal articles

In the context that technology postal services becoming more and more popular in the market, Decree 25 for the first time has added regulations on recognition of the legal value of electronic documents certifying the acceptance of postal articles between postal enterprises and the senders which shall have the same legal validity as a written contract between the parties.

6. Postal licensing documents must be submitted online

Decree 25 requires that the application for a postal license and the written confirmation of postal activities notice must be submitted through the online public service system instead of a hard copy submitted in person or by post to the postal authority as previously. The quantity of the application dossier to be submitted is also reduced from 03 sets (01 set of original and 02 sets of copies) to 01 set. Those revised regulations are made in line with the context that state agencies are strongly applying information technology in providing online and connective public services and in sync with the current administrative procedures improvement in all areas.

Request to amend or supplement the dossier or refusal of the dossier by competent postal state agency shall be made in writing through the online public service system. The results of handling procedures for granting postal licenses, written confirmations of notifications of postal activities are delivered directly or via the public postal service.

7. Supplementing regulations on promotion in the provision of postal services

Decree 25 stipulates that the maximum postal charge discount must not exceed 50% of the most recent postal charge that has made public. This is a brand new regulation of Decree 25. This regulation is intended to avoid the situation where enterprises take advantage of the provisions of the general law on promotion to carry out prolonged “promotions and discounts” for large customer groups, leading to unfair competition with other postal enterprises.

8. Amending and supplementing the changes to be notified

According to Decree 25, enterprises obtained a postal license and/or a written confirmation of postal activities notice must notify on either of the following changes:

  • Legal representative
  • Phone number of legal representative;
  • Charter capital of the enterprise
  • Postal service charges;
  • Postal service quality indexes;
  • Sample contract for the supply and use of postal services;

Internal regulations on complaints and compensation for damage related to postal services provided by enterprises

Accordingly, Decree 25 stipulated more clearly the changes that enterprises granted with written confirmation of postal activities notice must notify to the licensing authority. In addition, compared with the previous regulations, Decree 25 has removed the requirement to notify when there is a change in the address of the head office and contact phone number of the enterprise. the address of the head office and contact phone number of the enterprise.

9. Responsibility for storing information and documents of postal enterprises

Decree 25 supplements the postal enterprise’s responsibility to keep records of documents as follows: (i) To archive contracts on provision and use of postal services and documents confirming the acceptance of postal items for at least 5 years; (ii) To store information about senders and recipients (i.e full name, address and phone number) and information related to postal items (i.e contents of packages and parcels, accompanying documents when transported according to the provisions of law) for at least 01 year from the receipt date.

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Issue April 2022

Nguyen T. Thu Trang

Nguyen T. Lien Lien 
Legal Assistant

After the issuance of the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the socio-economic development and recovery program (“Resolution 43”), on January 28, 2022, the Government issued Decree No. 15/2022/ND-CP on tax exemption and reduction policies (“Decree 15”) according to the above-mentioned Resolution 43/2022/QH15 to implement the tax exemption and reduction policy in the National Assembly’s fiscal policy.

Value-added Tax Reduction from February 1, 2022 to December 31, 2022

In order to facilitate entities, individuals and tax administration departments in application with specialized tax legal regulations, Decree 15 provides the reduction of value-added tax (“VAT”) for goods and services subject to the VAT rate of 10%, and also clearly states the goods and services not eligible for VAT reduction, as particulars:

  1. Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products;
  2. Goods and services subject to excise tax;
  3. Information technology as prescribed in the laws on information technology.

The reduction of VAT shall be applied consistently in all stages including import, production, processing, trading, except for coal products which the reduction of VAT is only applied to the stage of mining for purpose of sale. Accordingly, the VAT reduction is determined according to the tax calculation method and shall be applied from February 1, 2022 to December 31, 2022, specifically including:

  1. For businesses whose VAT payable is calculated by tax credit method, the businesses are entitled to the VAT tax rate of 8% for their goods and services;
  2. For businesses whose VAT payable is calculated per percentage on revenue, the businesses are entitled to reduction of 20% of the percentage rate to calculate VAT for their goods and services.

Procedures for VAT Reduction

In order to apply the deducted VAT rate, businesses must issue separate invoices for goods and services subject to VAT reduction. In case the businesses fail to issue separate invoices, the VAT reduction prescribed under Decree 15 will not be applied. For cases where the businesses issued an invoice and declared at the tax rate or percentage to calculate VAT that has not yet been deducted, the seller and the buyer shall make a minutes detailing the mistakes and the seller must issues and deliver an adjusted invoice to the buyer for the application of VAT reduction. Businesses declare goods and services eligible for VAT reduction according to the declaration on “VAT reduction according to Resolution 43” together with the value-added tax declaration.

Reduction of Expenses for Supporting and Financing the Covid-19 Prevention and Control

Decree 15 has additionally provided for the case that an enterprise provides support and sponsorship through the transfer of this donation to its parent company. In case the enterprise is a member unit, it is required to meet following conditions to be eligible for deduction of support and sponsorship expenses upon determination of deductible expenses:In addition to the expenses prescribed in laws on excise tax, in the corporate income tax period of 2022, expenses for supporting and financing the Covid-19 prevention and control in cash and in kind are included in deductible expenses for determination of taxable income for corporate income tax amounts through certain organizations including Vietnam Fatherland Front Committee at all levels, medical facilities, educational institutions, press agencies and other agencies specified under Decree 15.

  1. The parent company must have a minutes or document certifying the expenses of support or sponsorship signed and stamped by the representatives of enterprises being the member unit and parent company;
  2. The enterprise has legal invoices and documents for support or finances in cash or in kind as prescribed by law;
  3. The parent company has a written confirmation of the supports and finances of the member unit; and
  4. The parent company provides supports and finances through certain organizations  listed in Decree 15.

This is a new regulation in Decree 15 compared to the corresponding regulations in Decree 44/2021/ND-CP on guidelines for deductible expenses upon determination of income subject to corporate income tax regarding enterprise/organization’s grants to prevention and control of Covid-19 pandemic and is supplemented on the basis of arising expenses of supports and finances from economic groups in Vietnam.

Decree 15 takes effect from February 1, 2022.

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LEGAL UPDATE – APRIL 2022 – Vietnam’s Virtual Hearings under new regulations: Step-by-step approaches for e-Court system

Issue April 2022

Nguyen Dang Viet

Nguyen Ngoc Ly 
Assisting Lawyer

1. Overview

Facing numerous difficulties and delays amid the on-going COVID-19 pandemic, courts across the globe have been utilizing their electronic systems in order to implement remote courts.  Such movement is an appropriate solution to balance public health directives with the need to continue upholding the rule of law and thus Vietnam is no exception. Indeed, the Vietnamese government has been applying a series of technological solutions to develop electronic court system.

Within the past 2 years, considered as a component of the e-court platform, term “virtual court hearing” has been gradually used in Vietnam as the possible solution to support physical hearings specially when the pandemic continues to disrupt litigation practice. In many countries, thanks to virtual hearings stakeholders dont have to come to courtrooms.

In this regard, the National Assembly of Vietnam issued Resolution 33/2021/QH15 dated 12 November 2021 (“Resolution 33”) to regulate virtual hearings as a coexistent method with the current method of hearings.

Notably, a Joint Circular issued by the People’s Supreme Court of Vietnam, the Supreme People’s Procuracy, the Ministry of Public Security, the Ministry of Defence and the Ministry of Justice on December 15, 2021 (Joint Circular 05/2021/TTLT-TANDTC-VKSNDTC-BCA-BQP-BTP, “Joint Circular 05”) aims to set out the guidelines and procedures on organizing online court hearings which took effect from February 1, 2022.

A virtual hearing may be conducted by using videoconference or teleconference facilities, where cases are progressed without the need for participants to attend the court in person. From the current legal perspective, a  virtual hearing court is held in a courtroom, using electronic devices connected to each other via a network, allowing the defendant, victims, litigants and other participants to join the court session from outside the courtroom, but still ensuring they are able to fully follow the hearings through images and sounds, and to fully take part in the hearing by verbalizing and actions continuously and publicly proceeding at the same time of the court’s proceedings.[1]

2. Cases and authority of holding online hearings

According to Resolution 33/2021/QH15 (Art.1.1), the People’s Court is entitled to hold online court sessions for first-instance trial and appellate trial of the cases that satisfy the following 02 conditions: Cases and authority of holding online hearings

  • Criminal, civil and administrative cases having simple facts and characteristics;
  • Cases having clear factual documents and evidences.

However, e-hearings shall be not applied for:

  • Criminal, civil and administrative cases related to State secrets;
  • Criminal cases for crimes in national security specified in Chapter XIII of the Penal Code;
  • Criminal cases for crimes of against peace, humanity and war crimes specified in Chapter XXVI of the Penal Code.

3. General guides on holding Virtual Hearings

The organization of online court hearings is carried out according to the general principles of organizing the hearings of cases specified in the 2015 Criminal Procedure Code, the Civil Procedure Code 2015 and the Law on Administrative Procedure 2015. Besides, an important legal basis for the People’s Court to organize an online trial is the Resolution 33 and the Joint Circular 05 with some notable points as follows:

3.1  Obligation of the competent authorities

In the stage of preparation for an e-court hearing and decision to bring a case to trial, the court and relevant authorities (including procuracies, detainment centres and legal aid centers) have to coordinate effectively to ensure that the e-hearing is organized in compliance with applicable regulations.[2]

The court as the host of the virtual hearing shall ensure that all parties are properly notified of the virtual hearing so that necessary technical arrangements are made by the parties to test and connect to the e-platform.

3.2  Technical and procedural requirements

Online hearings shall be held by setting up 02 types of connecting points.

The main connecting point or an online courtroom may be at the Court’s headquarters or at a location selected by the Court, held in accordance with the provisions of Circular 01/2017/TT-TANDTC with the compulsory participants (the Trial Panel, the Court Clerk and the procurator assigned to handle the case).

The aforementioned e-courtroom shall be fully equipped with the devices for the online hearing such as lighting system, transmission lines and network equipment, sound systems and image display device, data and power and, etc.

For most civil, administrative or criminal trials, the component points only need to meet the basic conditions of space, image quality and sound to ensure online transmission of the trial. For a criminal court hearing where a component pount is located at a detention facility, separate regulations must be met according to Circular No. 01/2017/TT-TANDTC dated July 28, 2018 of the Chief Justice of the People’s Court. The Supreme People regulates the courtroom.

The participants other than the judges shall joint the hearing through a maximum of 03 component connecting points accepted by the Court.

In addition to the normal procedures as prescribed by the Criminal Procedure Code, the Civil Procedure Code and the Administrative Procedures Law, the online court hearing has other requirements,[3]  e.g. identifying participants in the e-hearing; the dissemination of some information about the online hearing at the opening of the same by the presiding judge.

3.3 General requirements for participants

To attend a hearing virtually, the participants have to comply with the notable etiquettes as follows:

·       Keep the camera and audio on at all times;

·       Do not create any extraneous and distracting noises.

·       Dress appropriately for court when appearing via videoconference;

·       Do not walk around or step away during a videoconference meeting unless allowed by the judge;

·       Ensure the confidentiality and the safety of the court, do not take photos, record audio or distributing documents on the media, etc.

·       Present ID documents as required by the court.

4. Conclusion

Vietnam is applying timely IR4.0 to virtual court hearings, which may bring benefits for stakeholders. virtual court hearings shall save time and costs, and be accessible. If Vietnam develop well such system, it shall improve the court capacity and to avoid the stagnancy of case settlements.

[1] Article 1.2 Resolution 33/2021/QH15

[2] Chapter II Joint Circular 05/2021/TTLT-TANDTC-VKSNDTC-BCA-BQP-BTP

[3] Article 13 Joint Circular 05

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