On November 29 2013, the National Assembly ratified the Law on Land No. 45/2013/QH13 (the "Law on Land"). Notably, the Law on Land introduces provisions protecting the rights and interests of land users, as well as increasing transparency in the State's authority to deal with land.
Some of the significant provisions of the Law on Land are as follows:
- Chapter 2 stipulates the rights and obligations of the State with respect to land users, including the obligation to provide guarantees and information.
- Chapter 4 introduces new mechanisms to promote transparency in land use planning, and provides guarantees for land users in the planning process.
- Chapter 5 governs the subjects and assignees of land leased from the State, as well as the conditions for investment projects on such land.
- Chapter 6 defines the instances in which the State may withdraw and recover land, particularly where the rights and interests of land users are negatively affected. The chapter also sets out regulations for compensation and resettlement.
- Chapter 8 introduces more transparent measures in land management by explicitly outlining land financing, land prices, and the basis for calculating land use levy and land prices.
- Chapter 11 details the rights and obligations of land users, and sets out a new, transparent information system that allows for effective public monitoring.
The Law on Land 2013 shall take effect on 1 July 2014.
On 12 December 2013, the Office of the President announced the President's Order No. 14/2013/L- CTN proclaiming the Law on Employment (the "Law on Employment") ratified by the National Assembly, which is set to take effect from 1 January 2015. This marks the first legislation relating to employment in Vietnam.
Some of the significant provisions are as follows:
- The Law on Employment sets out various policies aimed at supporting the creation of employment for workers such as preferential credit policy, supporting policies for employment relocation in rural areas, and policies on public employments, etc.
- Databases of information on the labour market are to be created and managed by government agencies, which is expected to contribute to the development of competition, transparency and consistency in the labour market.
- The Law on Employment sets out the assessment and grant of National Vocational Skill Certificates, which are aimed at accrediting vocational skill levels according to employees’ qualifications.
- To facilitate the operation and organisation of employment services, employment services organisations are to be developed.
- Unemployment insurance policies are to be regulated so as to modify the existing policies under the Law of Social Insurance.
In addition, on January 16, 2014, the Government issued Decree No. 03/2014/ND-CP, detailing the process for the recruitment of Vietnamese employees working for Vietnamese employers, and working in industrial zones, economic processing zones, high tech and economic zones.
On 26 November 2013, the National Assembly approved and announced the Law on Bidding No. 43/2013 QH13 (the "Law on Bidding"), which replaces the Law on Bidding No. 61/2005/QH11. The new law is aimed at ensuring the independence and competitiveness of the bidding and tendering process, and is set to take effect from 1 July 2014.
The Law on Bidding sets out simplified administrative procedures for bidding, and provides a number of methods to evaluate tender documents. The new law also allows investors to organise and select contractors through online services, specifically through the national tendering network.
Under the Law on Bidding, tenderers or entities involving in the domestic supply of goods are entitled to enjoy preferential treatment. In addition, new regulations on centralised procurement are partly aimed at supporting and encouraging domestic production.
The Law on Bidding further states that contracts are to be in lump sum form. If contractors choose to use unit price contract or time-based contract, they will have justify their choice and prove that it is the more appropriate form of contract.
On 3 January 2014, the Government of Vietnam issued Decree No. 01/2014/ND-CP on foreign investors' purchase of shares of Vietnamese credit institutions ("Decree 01"), replacing Decree No. 69/2007/ND-CP. Decree 01 took effect on 10 February 2014.
Decree 01 has opened the door to more opportunities for foreign investors, increasing the maximum shareholding percentage for foreign investors in Vietnamese banks in certain situations. Foreign investors are also allowed to participate in the Managing Board of Vietnamese credit institutions, subject to certain limitations.
Notably, Decree 01 stipulates certain conditions for a foreign organisation to purchase shares where such purchase would lead to a shareholding level of 10% or more of charter capital in a Vietnamese credit institution, as well as conditions for foreign organisations to purchase shares and become foreign strategic investors. The conditions include being ranked by international credit-ranking organisations, having full financial capacity to purchase the shares, having total assets amounting to at least US$10 billion, and that the share purchase will not affect the stability of the Vietnamese credit institution system.
