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New decrees to take effect in September

Released at: 10:20, 03/09/2015

New decrees to take effect in September

Among the legal guidance coming into effect this month is a decree on the relaxing of foreign ownership limits in listed companies.

by Tran Minh

September sees a number of new legal instruments taking effect.

Foreign ownership limits in public companies loosened

Decree No. 60/2015/ND-CP, replacing Decree No. 58/2012/ND-CP from 2012 and taking effect on September 1 provides guidance on the Law on Securities and relaxes ownership limits on foreign investors purchasing shares in publicly-listed companies.

Banks forbidden from buying debts

Circular No. 9/2015 from the State Bank of Vietnam (SBV), which came into effect on September 1, regulates that banks and financial institutions can only buy debt with central bank approval and their non-performing loan ratio must be less than 3 per cent.  

Banks and financial institutions are also not permitted to sell their debts to subsidiaries or buy back debts sold previously.

Poor households can borrow all labor export costs

Government Decree No. 61/2015, effective from September 1, allows poor households to borrow up to 100 per cent of labor export fees. If the loan is more than VND50 million ($2,500), property must be offered as collateral.

Loan terms must not exceed the duration of the work permit. Preferential interest rates will be charged, pursuant to related government regulations. Interest rates on overdue payments will be 130 per cent higher than regular rates.

Unemployment support adjusted

Circular No. 28/2015 from the Ministry of Labor, Invalids and Social Affairs regulates that unemployed workers can receive support equal to five times the minimum wage. The Circular will come into effect on September 15.

Employers are responsible for generating unemployment insurance applications for their employees and must submit same to related government agencies within 30 days of an employee’s labor contract taking effect.

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