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New policies take effect in April

Released at: 21:17, 04/04/2017

New policies take effect in April

Photo: VGP

Among other new policies, EVN permitted to raise capital from domestic and foreign organizations and individuals.

by Uy Vu

A string of new policies on trade reconciliation, energy labeling, cash collection and expenditure, and financial management mechanisms for Electricity of Vietnam (EVN) will come into effect in April, according to the Government e-Portal.

Trade reconciliation

From April 15, Decree No.22/2017/ND stipulating the principles, policies, requirements, sequence, and procedures for resolving disputes through trade reconciliation shall take effect.

The settlement of disputes via trade reconciliation must ensure the principle of voluntarism and equality in terms of rights and duties between parties to disputes who participate in reconciliation activities. Information relating to the reconciliation case must be kept confidential, except in the case of a written agreement between the parties or other regulations of the law.

The contents of the reconciliation agreement must not violate the law, go against social norms, seek to evade obligations, or infringe upon the rights of a third party.

A dispute can be handled via trade reconciliation if the relevant parties have a reconciliation agreement. Parties can choose to resolve the dispute via trade reconciliation before, after the dispute occurrence, or at any time of the dispute settlement process.

The State encourages parties to disputes to use trade reconciliation to resolve disputes in the field of trade and other disputes legally eligible for trade reconciliation, while favoring the mobilization of resources participating in trade reconciliation and increasing the capacity of trade reconcilers and trade reconciliation organizations.

Regulations on label labeling

Decision No.04/2017/QD-TTg dated March 9, 2017 from the Prime Minister promulgating the list of devices and equipment subject to energy labeling and application of the minimum energy efficiency, and the road map for implementation, shall come into force from April 25.

The decision added certain devices and equipment subject to energy labeling, including LED lights, water heaters with reserves, laptops, passenger cars from seven to nine seats, motorcycles, and mopeds (Article 1).

Compulsory energy labeling shall be conducted from 2020 for LED lights, water heaters with reserves, laptops, motorcycles, and mopeds (Article 1), and from 2018 for passenger cars from seven to nine seats (Article 2).

The road map for the application of the minimum energy efficiency for LED lights, water heaters with reserves, and laptops shall be prescribed later by the Prime Minister (Clause 4 Article 3).

Cash collection and expenditure

Circular No.13/2017/TT-BTC regulating the management for cash collection and expenditure through the State Treasury system came into force on April 1.

The Circular applies to all units under the State Treasury system and units using the State budget, and transaction units.

Units using the State budget that want to withdraw cash in excess of the regulations must be registered with the State Treasury, including: from VND200 million or more for units using the State budget that transact with Provincial State Treasury, and from VND100 million or more for units using the State budget that transact with the State Treasury at the district level.

If units using the State budget when transacting with district level State Treasury want to pay in cash from VND1 billion or more for each payment, they must withdraw cash at the commercial banks where the district level State Treasury has opened an account.

EVN raising capital from domestic and foreign organizations and individuals

Under Decree No.10/2017/ND-CP on a financial management mechanism for EVN, the group is permitted to raise capital from domestic and foreign organizations and individuals to fund its business plans and must take responsibility for the use and repayment of loans, if any.

EVN is allowed to use State capital and other financing sources for its operations in accordance with the prevalent rules. The enterprise must use capital efficiently and inform the State and the Ministry of Finance of its capital use, losses, solvency issues, and other financial matters.

The company must ensure that liabilities do not exceed its equity by over three times as stated in its quarterly and annual financial reports.

EVN’s capital mobilization channels include bond sales and loans from credit institutions, financial organizations, individuals, non-corporate entities, and employees.

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