Newsletter no. 137

20-December-2007
The new Personal Income Tax law is applicable to following sources of income: income from business, income from salary, wage; income from capital investment (such as loan interest, dividend and other forms except interest income from Government Bonds); income from capital transfers (including income from capital transfers of business organizations, income from transfers of securities and other forms); income from transfer of property; income from royalty; income from commercial franchising; inheritance income and income from gift which are securities certificates; dividend income.

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Newsletter no. 136

3-November-2007
The Law on Real Estate was issued on 29 June 2006. After more than 9 months, on 15 October 2007 the Government finally issued Decree 153 which regulates the: types of real estate permitted to be made available for trading; legal capital requirements for organisations and individuals conducting real estate business; sale and purchase of houses and construction works in the form of advance payment; financial capacity of investors to real estate business; assignment of entire new urban zones, residential zones, technical infrastructure projects in industrial zones; training of and issuance of certificates for real estate broker and evaluator, managers and operators of real estate trading floors; and State administration of real estate business.

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Newsletter no. 135

28-September-2007
If the foreign invested capital does not exceed 49% of the charter capital of the proposed enterprise, the investor only needs to carry out business registration procedures under Enterprises Law and Decree 88 for the issuance of the Certificate of Business Registration, as if the investor is a Vietnamese investor. In other words, Decree 139 seems to provide for the principle that if foreign capital is 49% or less, it is not required to have an investment project to set up a company in Vietnam.

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Newsletter no. 134

31-August-2007
Ministry of Planning and Investment (“MPI”) is the authority to grant the investment certificate (“Investment Certificate”) for all overseas investment projects. However, with respect to large projects with capital of VND1,000 billion or more from the state budget or VND3,000 billion or more from various economic sectors, MPI only grants Investment Certificates after the approval of the Prime Minister.

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Newsletter no. 133

4-August-2007
Circular 09/2007/TT-BTM of the Ministry of Trade dated 17 July 2007 (“Circular 09”) guiding the implementation of Decree 23/2007/ND-CP on trading rights of foreign invested enterprises (“FIEs”) in Vietnam. Circular 09 takes effect 15 days after its publication on the Official Gazette. The long-awaited Circular 09 provides procedures and conditions for FIEs to apply for the rights to export, import and distribute selected goods and products.

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Newsletter no. 132

3-July-2007
Circular 03/2007/TT-NHNN of SBV dated 5 June 2007 (“Circular 03”) guiding implementation of Decree 22/2006/ND-CP of the Government on the establishment and operation of foreign banks’ branch, joint venture bank, 100% foreign invested bank and the representative office of foreign credit institutions in Vietnam.

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Newsletter no. 131

29-May-2007
Pursuant to Decree 78, a lender to a BOT project is entitled to take over a part of, or all, the rights and obligations of a Project Enterprise - if the Project Enterprise or the investor fails to perform their obligations as set out in either the project contract or the loan agreement signed with the lender. Conditions, procedure and contents for the “take-over” by the lender (i) must be stated in the loan agreement or other agreement signed between the Project Enterprise, or the investor, with the lender and (ii) must be approved by the competent State agency.

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Newsletter no. 130

7-May-2007
Foreign strategic investors and their related persons may own 15% of the charter capital of the bank. But they may hold the maximum shares up to 20% of the charter capital of the bank provided that an approval from the Prime Minister must be obtained. Foreign strategic investor is defined as a foreign credit institution with reputation, financial capacity and ability in support of the Vietnamese bank in developing banking products and services, improving managerial capacity and applying advanced technology; and which have interest in conformity with the development strategy of the bank and satisfy criteria specified by the bank.

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Newsletter no. 129

29-March-2007
For redemption of its own shares, a public company must (i) obtain a resolution of Shareholder’s Meeting in respect of redemption of more than 10% but not exceeding 30% of total number of its issued shares or resolution of the Board of Management in respect of redemption of no more than 10% of its issued shares for every 12 months, (ii) have source of funds for the redemption (iii) have a plan for redemption in which clearly states the duration of implementation and principle for determining prices.

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Newsletter no. 128

7-February-2007
All payments and money transfers in relation to current transactions within Vietnam are liberalised according to the following principles: (i) residents and non-residents are allowed to purchase, transfer and take foreign currencies out of Vietnam for the purpose of payment and money transfer in relation to current transactions, (ii) residents and non-residents are required to provide supporting documents as requested by credit organisations, (iii) residents and non-residents may purchase, transfer and take foreign currencies out of Vietnam without presenting documents evidencing fulfilment of obligations on tax to the State of Vietnam.

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