Vietnam Regulatory Brief: Import Duty Exemptions, Foreign Contractor Licensing, and Cambodian Information exchange - Vietnam Briefing News
New Exemption for Import and Export Duties
The Ministry of Finance on August 31 issued new guidelines in Law no 107/2016/QH13 on import and export duties. Goods that are eligible for duty exemption now include:
- Import duty exemption is now for both toll manufacturing and contract manufacturing.
- Goods that are temporarily imported or exported for warranty, repair, replacement and subject to certain conditions
- Goods that are filed under commercial temporary import for re-export custom procedures
- Materials, supplies, and components imported for digital content, information technology and software.
- Fertilizers and pesticides which cannot be locally made.
The above exemption will be welcomed by investors who want to enter the country. The exemption apply to items that are typically not found in the country or are difficult to get. Investors should look out for such sectors that are exempt to benefit from the latest regulations.
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Licensing Procedures for Foreign Contractors Amended
New regulations by the Ministry of Construction was introduced for foreign construction contractors in relation to licensing procedures. The ministry came out with Circular 14/2016TT-BXD which went into effect on August 15. The regulation refers to foreign companies and individuals who want to conduct construction related activities in the country.
The changes have been made to the documentation requirements which must be submitted to the licensing authority. In addition, the process will take longer and will now be 20 days instead of the previous 15. License holders will now only need to submit annual operations reports instead of on a bi-annual basis. Licenses can be revoked if contractors have been sanctioned for violations twice as compared to three times before.
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Vietnam, Cambodia to Strengthen Information Exchange
Vietnam’s government agencies will coordinate with Cambodia to deepen bilateral relations in all areas including information and communications. In a reception hosted by the Cambodian Prime Minister Hun Sen, Sen urged greater information sharing between the two countries. Both the countries signed four cooperate documents including documents on information sharing between 2016-2020 between the Vietnamese Ministry of Information and Communications (MIC) and the Cambodian Ministry of Information. The event was held in Phnom Penh on September 22 and 23. The developments bode well for investors in both countries.
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