Social insurance debt put at VND14 trillion

HCMC – Unpaid social insurance premiums had amounted to VND14.2 trillion by end-October, up from VND13.1 trillion a month earlier, according to Vietnam Social Insurance (VSI).  

VSI deputy general director Tran Dinh Lieu told a conference on how to collect social insurance debt in Hanoi on Wednesday that if social insurance debt owed by insolvent businesses was included, the sum would be bigger. Many companies did not pay social insurance though they already collected premiums from their workers.

Of VND14.2 trillion, VND9.55 trillion was owed to the social insurance fund, with VND6.87 trillion of it owed for at least three months, while unpaid unemployment insurance stood at VND516 billion and unpaid medical insurance at VND4.17 trillion.

VSI attributed the huge social insurance debt to economic difficulties and poor compliance with social insurance regulations by enterprises and insurance agencies at all levels. Debt collections by provincial agencies are below targets and some agencies do not report debt to local governments to find coping solutions.   

Nguyen Tri Dai, head of the collection department at VIS, told the conference that the social insurance agencies in provinces rarely coordinate with the departments of finance to urge insurance payments by provincial budgets for certain groups of privileged people. Notably, such debt in An Giang Province amounted to VND66 billion in January-September.

According to the 2014 Social Insurance Law, the Vietnam General Confederation of Labor is tasked with taking legal action against those enterprises owing insurance premiums and hoarding money of employees.

Lieu said suing businesses owing social insurance premiums is a measure to reduce debt. The confederation of labor in Danang City sued a company but the result has yet to come out.  

Provincial confederations of labor said they had encountered a slew of difficulties when suing businesses which are on the brink of bankruptcy. Even if they win the lawsuit, law enforcement could be hard.

Mai Duc Chinh, vice chairman of the Vietnam General Confederation of Labor, told provincial confederations of labor to take to court businesses that owe social insurance premiums.  

Source: SaigonTimes

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HCMC proposes setting up property market info center

HCMC – HCMC has proposed establishing a center to store and manage data about land, homes and housing projects, heard a meeting last week.

This is one of a number of measures suggested in the city’s property market development plan in 2016-2020 with a vision towards 2030, which was the topic of discussion at the meeting.

The city expects the information center could help it build official real estate market indexes which market participants could use as references.

The plan will develop infrastructure to connect urban areas, diversify property products, boost development of condo buildings, and encourage investors to get involved in projects to build homes for low-income people.  

The city petitions the Government to establish a general department for housing development and allow it to form a housing development board under the city government.  

The plans also mentions a number of measures to ensure transparency on the market, improve the cityscape and oversee housing development.  

Tran Du Lich, former deputy head of the HCMC delegation of NA deputies, said the plan is well prepared but contains no deep analysis of market conditions. It should point out what is not transparent, and what regulations overlap, he said.

Lich said laws such as the Land Law, the Construction Law, the Housing Law and the Law on Real Estate Business have conflicting provisions which have left negative effect on the real estate market.

Le Chi Hieu, vice chairman of the HCMC Real Estate Association (HoREA), shared Lich’s view, saying many existing regulations are inconsistent, making life difficult for property companies.

High land prices and land-use fees are weighing on businesses and homebuyers, he noted, adding the State should set up a special financing mechanism, such as a housing development fund, to lure more businesses to join low-cost housing projects.

An official of the State Bank of Vietnam’s HCMC branch said the plan does not make clear the financing structure of enterprises involved in property projects. At present, a majority of investors rely heavily on bank loans to fund their projects but this source of capital would drop in the future in line with the central bank’s Circular 06 which sets out a roadmap for tightening lending to real estate projects.

To ensure sustainable development for the property market, bank loans should fall while increasing capital from other sources such as homebuyers, investment funds and corporate bonds, the central bank official said.

Source SaigonTimes

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Vietnam National Power Development Plan til 2020

Vietnam Prime Minister on Mar 18th, 2016 has issued decision 428 QD-TTG which approved the national power development plan til 2020 with visions extended til 2030.  This is expected to boost the competitive environment in a way to attract investment in thermal, water, wind and other sustainable power from various sources in Vietnam.

We hereby introduces the decision for your reference.

See more:

http://www.antlawyers.vn/library/decision-no-428qd-ttg-on-the-national-power-development-plan-of-vietnam.html

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Vietnam Assembly to Hold Off Building Nuclear Power Plant

It is important for Vietnam to properly re-balance the power supply. Without nuclear power, Vietnam shall need to add additional coal-fired power plants.  Further, Vietnam will need to accelerate more renewable energy, including wind energy, solar energy projects and attract more investment in Vietnam in these energy sectors.

According to the National Assembly Office, the Parliament met the Minister of Industry and Trade on Nov 10th, 2016 whom  will present the draft draft resolution on holding off building the first nuclear power plant in Ninh Thuan, Vietnam.

Back to history, on Nov 25th, 2009, with 382 endorsed delegates (at the rate of 77.48%), the Vietnam National Assembly has decided to approve the investment policy of Ninh Thuan nuclear power plants: Ninh Thuan Phuoc Dinh 1, located in Thuan Nam and Ninh Thuan 2 located in Vinh Hai commune, Ninh Hai district with a capacity of about 2,000 MW per plant.

Key technologies of the two plants is “light water reactor technology improvements, the most modern generation furnace, with proven, guaranteed safety and economic efficiency at the time of the project”.

Recently, there has been concerns among energy experts and Vietnamese people on a number of issues in regard to legal frameworks, technology, safety and expert resources.  It appears that such concern has been listened leading to the possible decision to postpone the deadline to start the the nuclear power project.  According to the new plan, the new clear power plant could be scheduled in the year 2030.

According to energy experts in Vietnam, being cautious is necessary. In order to implement the nuclear power projects, Vietnam will need to take time to prepare.

Firstly, Vietnam will need to evaluate the project, organize international tender, and implement detailed design.  Such will need the help of foreign energy consulting firms to help appraise.

Secondly, Vietnam is sending 300-500 experts to Russia and Japan to study experience about managing the nuclear power plants.  This training period is important to ensure the proper people are well equipped with knowledge and are capable to manage the plants and this process will take time.

Thirdly, Vietnam is negotiating with Russian factories and Japanese factory to import technology in nuclear power plants and the negotiations are still on-going.

Fourthly, number of scientists and people still fear safety problems of nuclear source especially the last two incidents at Chernobyl nuclear power plant in Russia and the Fukushima plant in Japan.  Safe operation is one matter but the handling of residues is also an on-going concerns that Vietnam has to face when investing in nuclear power project.

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Vietnam Is About to Have Laws for Venture Capital Funds

Vietnam is planning to adopt a new law, which forms the basis for the establishment of venture capital funds in the country and calling for more money to invest in startup activities, which is being strongly encouraged.

According to Deal Street Asia, Vietnam will target growth rate of 7% per year until 2020. The draft law on supporting small and medium enterprises, which is expected to be adopted in the 3rd parliamentary session, has a section dedicated to Startup Company called creative enterprise”.

With the adoption of proposals, Vietnam will officially legalize the provisions in the establishment and operation of venture capital funds and angel investment funds.

Vietnam Government is also considering promoting startup activities to boost the economy, which depends heavily on traditional areas. Besides, Vietnam is also attracting significant inflows of FDI capitals with 11.02 billion USD in the first 9 months of 2016, increasing by 12.4% over the same period last year.

According to economic experts, the new law for investors may include provisions to help tax procedures become more favorable, shortening the time of investment license issuance. If passed by the Vietnam National Assembly, the new law can alter the perspective of foreign investors in Vietnam as well as attracting more investment capital from abroad.

The new regulations will also help Vietnam to avoid loss of capital when many entrepreneurs choose foreign countries, such as Singapore, to place their headquarters to take advantage of attractive policies like tax cuts or simple establishment procedures.

Besides restrictions on capital policies, Vietnam is facing problems in the use of foreign talented people. This is considered a major barrier for Vietnam startup businesses to develop and grow regionally and internationally. However, the Government of Vietnam is having many changes, leading to the appearance of more and more investors, including foreign investors. Furthermore, the appearance of laws for venture capital funds will help startup environment in Vietnam becomes more ideal.

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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Hire Lawyers to Collect Debt

The collection of bad debt and late payment after sales are difficult and sensitive jobs. Therefore, the debt collectors should be well informed about the legal nature of the debt profile and they must have skills on debt recovery.

Depending on the nature of each case and each specific dossier, the debt collectors can be able to make suitable plans to deal accordingly.

So there will be a lot of methods and different solutions in the work of debt recovery. However, the recovery of debt will apply the following two basic methods:

– Mediation and agreement methods are ways that lawyers and legal professionals will come directly to negotiate and persuade debtor to make their debt payment schedule.

– Method to resolve through court proceeding or in coordination with the functional agencies: This method will be applied in the case that debtors are unwilling to cooperate, trying to evade responsibility, or the payment plan is delayed.

Time limit for settling the debt collection:

Time limit for settling the debt collection is influenced by many different factors but the two most important factors are the legality of the documents and the payment capability of debtors.

There are debtors, after being explained the consequences and losses of non-payment, late payment by lawyers and legal experts, they were aware of and make plans to pay debts.

But there are debtors that the creditors require the support and intervention of the functional agencies, and then the debtors accept to pay. Therefore, the duration of the case will be prolonged.

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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Decision 3993/QD-BCT on Investigation to Apply Anti-Dumping Measure

On October 5th 2016, the Ministry of Industry and Trade issued Decision 3993/QD-BCT on the investigation to apply anti-dumping measure.

Accordingly, an investigation will be conducted to apply anti-dumping measure against H-shaped steel products, with HS code: 7216.33.00, 7228.70.10 and 7228.70.90, imported into Vietnam from the People Republic of China (including Hong Kong). Investigation procedures are complying with the law on anti-dumping of goods imported into Vietnam.

Decision 3993 takes effect upon signing.

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ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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