FINANCIALS

Government Decree 19/2023/ND-CP on Anti-Money Laundering

The Government issued Decree 19/2023/ND-CP on 28 April 2023 providing detailed guidance on the implementation of certain articles of the Law on Anti-Money Laundering 2022. The Decree governs customer KYC requirements, beneficial owner requirements and requirements on information exchanges.

Prime Minister Decision 11/2023/QD-TTg on Anti-Money Laundering

The Prime Minister issued Decision 11/2023/QD-TTg on 27 April 2023 stipulating the thresholds of high value transactions subject to reporting requirement under the anti-money laundering regulations. The Decision will take effect on 1 December 2023. This Decision increases the threshold value that triggers the high value transaction reporting obligation from VND300 million to VND400 million.

Circular 02/2023/TT-NHNN on Rescheduling Debt Repayment Terms

The State Bank of Vietnam issued 02/2023/TT-NHNN on 23 April 2023 on credit institutions and foreign bank branches rescheduling debt repayment terms and retaining debt classifications to support customers. The Circular takes effect on 24 April 2023. It allows credit institutions and foreign bank branches to reschedule debt repayment terms for loans and finance leases of non-bank customers who face financial difficulties when certain conditions are met, such as where customers are unable to repay the due principals and/or interests for a drop in revenue and income. The rescheduled repayment term must not exceed 12 months from maturity date of the outstanding balance rescheduled for the repayment term. Banks may reschedule debt payment terms for customers until 30 June 2024.

INVESTMENTS

Government Decree 18/2023/ND-CP on Multi-level Marketing

The Government issued Decree 18/2023/ND-CP on 28 April 2023 amending a number of articles of Decree 40/2018/ND-CP regarding multi-level marketing business (“MLM”). The Decree takes effect on 20 June 2023. The Decree introduces new registration requirements for foreign-owned enterprises. Shareholders or owners who are foreign investors or foreign-owned economic organizations must have a minimum of three consecutive years of MLM operations in a country or territory. Additionally, the Decree mandates the submission of a business license with retail distribution rights, specifically encompassing retailing in the MLM mode, as part of the registration application. Other additional requirements for MLM include seminar and training requirements and minimum sales revenue requirements for non-participant members.

Prime Minister Directive 14/CT-TTg on Foreign Investment Policy Action Plans

The Prime Minister issued Directive 14/CT-TTg on 24 May 2023 setting forth the action plans for developing and evaluating new regulations on boosting foreign investment. Among important items include to research and develop measures (e.g. cash subsidies, training supports, infrastructure development supports) that promote foreign investment non-tax incentives, based on the conformity with international commitments and equal treatments of investors.

Prime Minister Decision 12/2023/QD-TTg on Encouraged Technology

The Prime Minister issued Decision 12/2023/QD-TTg on 15 May 2023 to govern the issue of certificates of transfer of encouraged technology, which comes into effect on 1 July 2023.Projects eligible for investment incentives under the investment laws on the ground of receiving transfer of technologies on the list of encouraged technologies are required to obtain such certificates. This Decision details the procedures and conditions for issuing such certificates.

Prime Minister Decision 13/2023/QD-TTg on Scraps Permitted for Import

The Prime Minister issued Decision 13/2023/QD-TTg on 22 May 2023 promulgating the list of scraps permitted to be imported for use as production materials. It takes effect on 1 June 2023 and replaces Decision 28/2020/QD-TTg dated 24 September 2020. Scap papers under HS Code 4707 90 00 and scraps under HS Code 3915 90 00 are removed from the list of permitted scraps.