Notable provisions of new Decrees coming into force from January 01, 2018

1. Instructions on equitization of state-owned enterprises

Decree No. 126/2017/NĐ-CP provides instructions on settlement of deficit assets and surplus assets of enterprises that no longer have state capital after equitization:

- Surplus assets must be transferred to the Vietnam Debt and Asset Trading Corporation (DATC)

- Deficit assets, after making compensation (if any), will be aggregated with business expenses of the joint-stock company.

Decree No. 126/2017/NĐ-CP replaces Decree No. 59/2011/NĐ-CP Decree No. 189/2013/NĐ-CP and  Decree No. 116/2015/NĐ-CP.

2. Quarterly reports by lottery enterprises

Decree No. 122/2017/NĐ-CP contains regulations on financial management and effectiveness assessment applied to lottery enterprises; Stock Exchanges and Vietnam Securities Depository.
According to, a lottery enterprise shall prepare and submit the following reports at the end of every quarter and every year:

- Income statement (Form No. 01/BCXS).

- Report on sale of lottery tickets (Form No. 02/BCXS).

- Report on debts and payment guarantee of lottery agents (Form No. 03/BCXS).

- Report on payment of commissions and authorization fees to lottery agents (Form No. 04/BCXS).

- Report on management and use of state capital and assets (Form No. 05/BCXS).

- Report on actual revenue from sale of computerized lottery products in each province or city, and payments made to provincial-government state budget of Vietlott (Form No. 06/BCXS).

These forms can be found in the Appendix of Decree No. 122/2017/NĐ-CP dated November 13, 2017.

3. Procedures for payment of security for judgment

This is an important content of Decree No. 115/2017/NĐ-CP which provides for payment of security for judgment by legal entities and payment procedures.

According to the Decree, the corporate legal entity shall pay the security for judgment within 07 days from the day on which a decision is received from the proceeding authority.

In case of a force majeure event or inevitable difficulty, this time limit will begin when such event or difficulty no longer exists.

The payment may be made by wire transfer or in cash to a dedicated account of the investigation authority or civil judgment enforcement authority at the State Treasury or a military finance authority.

4. Application of tax incentives to motor vehicle manufacturers

The Government issued Decree No. 125/2017/NĐ-CP to amends Decree No. 122/2016/NĐ-CP on preferential export and import duty schedule, list of commodities, flat tax rates, compound tax rates and outside tariff quota rates.

According to the Decree, the tax incentive program may be participated by qualified manufacturers and assemblers of motor vehicles according to the Government’s conditions for manufacture, assembly and import of motor vehicles.

An application for participation in the program consists of:

- An application form (original copy) using Form No. 05 in Appendix II;

- 01 authenticated photocopy of the certificate of eligibility to manufacture or assembly motor vehicles, certificate of investment registration or feasibility study report of the factory.

Decree No. 125/2017/NĐ-CP annuls Clause 2 of Article 4 and Appendices of Decree No. 122/2016/NĐ-CP dated September 01, 2016.

(To be continued)

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