New policies to take effect in February
The Government has released a host of policies that have come into effect this month, including policies related to the combination of national defense and socioeconomic development, the issuance of corporate bonds, e-transactions in financial operations, and lending requirements for offshore investment.
Combining national defense with socioeconomic development
Since February 10, the Government has adopted Decree 164/2018 on combining national defense with socioeconomic affairs.
The combination includes integrating national defense activities into the development and execution of socioeconomic development strategies, plans and projects among ministries and local governments and ensuring a stable environment for the country’s socioeconomic development.
The decree regulates cooperation in the fields of industry, trade, services, agriculture, forestry, fisheries, transport, information, telecoms, construction, investment and economic management.
The Government issued Decree No.163/2018 on the issuance of corporate bonds in replacement of Decree No.90/2011. The new decree, which took effect early this month, is aimed at creating favorable conditions for companies to raise capital through bond issuance and to develop the corporate bond market in an open and transparent manner.
Companies that have been operational for at least one year from the date of receiving their business registration certificates will be allowed to issue bonds. They must take responsibility for taking out and making payments for loans, ensuring capital efficiency and paying off any liabilities.
Lending for offshore investment
The State Bank of Vietnam issued Circular No.36/2018 on lending operations by commercial banks, credit organizations and foreign bank branches to customers for offshore investment.
The value of these loans should be agreed upon by the lender and the client or investor, but it must not exceed 70% of the client’s total offshore investment. The move is intended to guarantee that clients will arrange for other capital sources, such as their own equity capital for their offshore investment projects or plans, to minimize risks for the lender and, at the same time, ensures that they prove their ability to arrange for the needed finance.
The circular will come into effect this Friday, February 15.
E-transactions in financial operations
The Government issued Decree No.165/2018 on e-transactions in financial operations, which took effect on February 10.
Under the decree, individuals and organizations participating in e-transactions in financial operations must comply with the principles specified in the Law on E-transactions and the provisions of specialized laws and relevant legal provisions.
The decree stipulates that online applications must fully meet the requirements of State management agencies and must be in accordance with specialized law provisions. The form and legal validity of e-documents must comply with the Law on E-transactions.
Restriction of underground water exploitation
The Government has also issued Decree No. 167/2018 on the restriction of underground water exploitation in freshwater areas. The decree came into force on February 10.