[Legal Updates] Letter Of Quick Legal Update 201905

LEGAL UPDATES

[Legal Updates] Letter Of Quick Legal Update 201905

1. Decree No. 29/2019/ND-CP

Decree No. 29/2019/ND-CP was issued  by the Government on Marth 20th 2019 detailing the implementation of Clause 3, Article 54 of the Labour Code on the licensing of labor sublease activities, deposit, and the work list to be subleased for labour has abolished the provisions on legal capital conditions and the conditions on the location of the head office, branches and representative offices of the labour subleasing enterprises.

In order to get a permit for outsourcing services, the enterprise must deposit an amount of VND 2,000,000,000 (two billion Vietnam Dong) at licensed commercial banks or branches of foreign banks which legally established and operating in Vietnam.

This Decree takes effect on May 5th, 2019.

2. Circular No. 03/2019/TT-NHNN

Circular No. 03/2019/TT-NHNN was issued by the State Bank of Vietnam on March 29th 2019 amending the Circular No. 32/2013/TT-NHNN guiding the implementation of regulations the case of non-residents being allowed to use foreign currency in the territory of Vietnam has further provided that foreign investors are allowed to deposit, escrow in foreign currency for bank transfer when participating in an auction in these following cases:

  • Purchase of shares in state-owned enterprises to be equitized approved by the Prime Minister;
  • Purchase of shares, capital contribution of the State in state-owned enterprises, enterprises with state capital in order to divest the state’s capital contribution under the approval from the Prime Minister;
  • Purchase of shares in state-owned enterprises to be equitized approved by the Prime Minister;

This Decree took effect on May 13th, 2019.

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