8 outstanding policies effective from August 2018

1. Linkages in agricultural production are supported up to 10 billion VND

The Government has issued Decree 98/2018/ND-CP on policies to encourage the development of cooperation and association in the production and consumption of agricultural products.

According to this Decree, projects linking production and consumption of agricultural products are supported as follows:

- Support 30% of capital investment in machinery and equipment; construction of infrastructure works serving the connection (factories, yards, etc.). Total support amount not exceeding 10 billion VND.

- Support 100% of consulting costs for link building, up to a maximum of 300 million VND.

- Support 40% of transfer costs, application of new science and technology, application of technical processes and synchronous quality management along the chain.

To enjoy incentives, the associated parties must ensure certain conditions such as: Comply with the planning; Have a Certificate or commitment to ensure product quality and food safety; Minimum association period of 03 years or 05 years.

The Decree takes effect from August 20, 2018.

2. Ban banks from buying bonds to restructure corporate debt

The State Bank of Vietnam issued Circular 15/2018/TT-NHNN dated June 18, 2018 amending and supplementing Circular 22/2016/TT-NHNN regulating the purchase of corporate bonds by credit institutions and foreign bank branches.

Notably, the Circular stipulates that credit institutions and foreign bank branches are not allowed to buy corporate bonds issued to restructure corporate debts. At the same time, the regulations on the types of corporate bonds that can be purchased are abolished.

Also according to this Circular, internal regulations on purchasing corporate bonds of credit institutions and foreign bank branches must have at least the following additional contents:

- Regulations on internal control of corporate bond purchase activities, especially bonds issued for the purpose of implementing projects, projects in potentially risky fields...;

- Specific regulations on areas with potential risks and credit policies for investment in these areas.

This Circular takes effect from August 2, 2018.

3. Fee schedule for environmental impact assessment report appraisal

On June 25, 2018, the Ministry of Finance issued Circular 56/2018/TT-BTC regulating the collection rates, regime, payment, management and use of fees for appraisal of environmental impact assessment reports conducted by central agencies.

The fee schedule for environmental impact assessment report appraisal is regulated depending on the investment capital level. Specifically:

- For civil construction projects: From 8 - 84 million VND

- For technical infrastructure projects: From 8.6 - 86 million VND

- For agricultural, forestry, fishery and irrigation projects: From 8.8 - 88 million VND

- For traffic projects: From 9.2 - 92 million VND

- For industrial projects: From 9.6 - 96 million VND

- For waste treatment and environmental improvement projects and other projects: From 6 - 61 million VND.

The fee collection organization shall pay 100% of the collected fees to the State budget.

The Circular takes effect from August 10, 2018.

4. When detecting shrimp injected with impurities, a record must be made on the spot.

On July 10, 2018, the Ministry of Agriculture and Rural Development issued Circular 07/2018/TT-BNNPTNT regulating the inspection of impurities in shrimp and shrimp products.

The Circular clearly states that in case of inspection by a Team, when detecting violations regarding impurities or on-site inspection results concluding that the shrimp batch has impurities, the Head of the Inspection Team must draw up a record of administrative violations according to his authority. At the same time, seal the evidence of the means of administrative violation.

The head of the inspection team is responsible for reporting to the Head of the inspection agency to issue a decision to temporarily detain the exhibits and means of violation within no more than 24 hours from the time of sealing.

In case the inspector is assigned to conduct an independent inspection, when detecting violations regarding impurities or the on-site inspection results conclude that the shrimp batch contains impurities, a record must be made and reported to the Head of the inspection agency for appropriate handling measures.

The Circular takes effect from August 24, 2018.

5. Adjusting the subsidy level for retired commune officials

According to Circular 08/2018/TT-BNV of the Ministry of Home Affairs, from July 1, 2018, the monthly allowance level for retired old communal officials will be adjusted.

Specifically, the monthly allowance from July 1, 2018 of the above subjects = Allowance level received at June 2018 x 1.0692.

Thus, the monthly allowance for former Party Committee Secretaries and Commune People's Committee Chairmen is 1,974,000 VND/month; for Deputy Secretaries, Vice Chairmen, Standing Party Committee Members, Secretary Members of the People's Committee, Secretary of the Commune People's Council, Commune Team Leaders, and Commune Police Chiefs: 1,910,000 VND/month.

The remaining positions receive a monthly allowance of VND 1,768,000.

The Circular takes effect from August 15, 2018.

6. Increase the subsidy level for meritorious people from July 1, 2018

On July 12, 2018, the Government issued Decree 99/2018/ND-CP stipulating subsidy and preferential allowance levels for people with revolutionary contributions.

Accordingly, from July 1, 2018, the standard level to determine subsidy and preferential allowance levels for people with revolutionary contributions is 1,515,000 VND; instead of the previous level of 1,417,000 VND.

Thus, the pension allowance for relatives of 01 martyr is 1,515,000 VND; People's Armed Forces Hero, Labor Hero in the resistance period is 1,270,000 VND; sick soldiers receive a subsidy from 1,581,000 - 3,859,000 VND, depending on the level of reduced working capacity; sick soldiers with a reduction of 81% or more are also entitled to an additional allowance from 760,000 - 1,515,000 VND/month.

The Decree takes effect from August 27, 2018.

7. Remove the regulation that children under 5 years old cannot attend international schools.

On June 6, 2018, the Government issued Decree 86/2018/ND-CP regulating foreign cooperation and investment in the field of education.

This Decree has removed the previous regulation that Vietnamese students under 5 years old are not allowed to study foreign training programs. Instead, this Decree only requires that the number of Vietnamese students studying foreign education programs must be lower than 50% of the total number of students.

Also according to this Decree, the term of operation of a foreign-invested educational institution shall not exceed 50 years from the date of issuance of the investment registration certificate, but shall not be longer than the land lease term.

Meanwhile, the term of operation of training cooperation and foreign language proficiency certification organization cooperation shall not exceed 05 years from the date of approval and may be extended, each extension shall not exceed 05 years and shall not exceed the term of agreement or cooperation contract between the cooperating parties.

DecreecEffective from August 1, 2018.

8. Criteria for determining complex legal aid cases

On June 21, 2018, the Ministry of Justice issued Circular 09/2018/TT-BTP stipulating the criteria for determining complex and typical legal aid cases.

In particular, the general criteria for determining a case to participate in litigation are as follows:

- Provide legal aid in a case that attracted public attention and was reported by many central and local press agencies;

- A case in which the legal aid provider's opinion differs from one of the litigation agencies and is accepted in favor of the person receiving legal aid in the judgment or litigation decision;

- Legal aid in cases where there are many conflicting documents and evidence, or where the assessment of evidence and application of law by the prosecuting agency have many different opinions, or the case is related to many different areas of law;

- Legal aid in cases involving many provinces and centrally run cities.

This Circular takes effect from August 21, 2018.