A number of economic and social policies will come into effect in June 2024, including regulations on electricity pricing and power purchase agreements, amendments to road transport licensing, and revised lending criteria for the Small and Medium Enterprise Development Fund.
1. Criteria for SME Lending from the Development Fund
Effective from mid-June 2024 (specifically, 10/06/2024), Decree 45/2024/NĐ-CP outlines the organization and operation of the Small and Medium Enterprise Development Fund. It details the lending criteria for innovative startups, including:
– Meeting the criteria for small and medium-sized enterprises: The business must be established to realize ideas based on intellectual property, technology, or new business models with high growth potential.
– Having a feasible production and business plan that aligns with the criteria for innovative startups.
– Ensuring a minimum of 20% of the total investment capital for the project or business plan and guaranteeing sufficient funds for its implementation.
– Complying with loan security regulations.
2. Transfer of Road Infrastructure Usage Fee Collection Rights for a Maximum of 10 Years
The Government issued Decree No. 44/2024/NĐ-CP on 24/04/2024, regulating the management, use, and exploitation of road infrastructure assets. This decree came into effect on 10/06/2024.
Decree 44/2024/NĐ-CP stipulates that the transfer of road infrastructure usage fee collection rights involves the state transferring the right to collect road usage fees to an organization through a contract in exchange for a corresponding sum of money. The scope of assets covered by this decree includes road infrastructure assets or parts thereof that are subject to road usage fees according to legal regulations (excluding fees collected through vehicle registration as stipulated by law).
The transfer of collection rights does not apply to road infrastructure assets related to national defense and security or those specified in Clause 1, Article 16 of Decree 44/2024/NĐ-CP.
The duration of the transfer of collection rights is specified in each contract but should not exceed 10 years, aligning with the specific road infrastructure asset (or part thereof) as approved by the competent authority in accordance with Clause 5, Article 14 of Decree 44/2024/NĐ-CP in the Decision approving the Proposal for the Transfer of Collection Rights.
- Additional Case for Revocation of Road Transport Business License:
Decree No. 41/2024/NĐ-CP, dated 16/04/2024, amends and supplements a number of articles in the decrees related to the management of road transport operations by automobiles, automobile driving training services, and driving tests. This decree came into effect on 01/06/2024. Compared to Decree 10/2020/NĐ-CP, the newly issued Decree 41/2024/NĐ-CP has added an additional case for the indefinite revocation of the road transport business license.
Accordingly, the road transport business license will be revoked if the business fails to operate any of the transport forms listed in the license for a period of 6 months or more from the date of license issuance, or if it ceases to operate all transport forms listed in the license for a continuous period of 6 months or longer. The license will also be revoked if the business fails to comply with inspection and examination decisions regarding the observance of regulations on road transport business operations and conditions.
Additionally, if, within 1 month, 30% or more of the vehicles of the unit are handled for violations leading to the revocation or confiscation of the vehicle’s insignia and logo, the road transport business license will be revoked indefinitely.
Decree 41/2024 also stipulates that when the licensing authority issues a decision to revoke the road transport business license for a transport form with violations, the transport business unit must return the license and insignia within 10 days from the date of the decision. The business must also stop operating the transport form according to the revocation decision.
In cases where the transport business unit returns the license and insignia in accordance with the revocation decision, the licensing authority shall reissue the license after 30 days (or 60 days for a second violation within 6 consecutive months).
If the transport business unit fails to return the license and insignia within 10 days from the date of the revocation decision or does not return them as required, the Transport Department shall only reissue the license after 45 days (or 90 days for a second violation within 6 consecutive months) from the date the transport business unit returns the license and insignia as required.
After the decision to revoke the insignia and logo is issued, if the road transport business unit requests for a new issuance or reissuance of the insignia and logo due to loss, the Transport Department shall not issue or reissue them within 60 days from the date of receiving the unit’s request.
4. Regulations on Electricity Pricing and Power Purchase Agreements
The Ministry of Industry and Trade has issued Circular No. 07/2024/TT-BCT dated 12/04/2024 on regulations regarding electricity pricing and power purchase agreements. This circular came into effect on 01/06/2024.
The circular applies to power plants operating in Vietnam that are connected to the national power system and other relevant organizations and individuals.
It does not apply to strategic multi-purpose hydropower plants, small hydropower plants with applicable avoided cost tariffs, independent power plants invested in the form of Build-Operate-Transfer (BOT), power plants and generators providing auxiliary services, and power plants applying the electricity pricing mechanism stipulated by competent authorities.
The principle for determining electricity prices for power plants is based on reasonable and legitimate investment costs throughout the project’s economic life and an internal financial rate of return (IRR) not exceeding 12%…
In addition, the circular provides guidance on determining electricity prices for commercial power plants, determining power purchase agreement prices by year, and inspecting power purchase agreements and the responsibilities of related parties.
5. Standards for University Lecturer Promotion
Circular 05/2024/TT-BGDĐT on standards and conditions for promotion of professional titles of teaching staff in public universities and pedagogical colleges came into effect on 01/06/2024. It outlines the conditions and standards for promotion to the rank of Associate Professor, including:
- The public university must have a need and a suitable vacant position.
- The candidate must be nominated for promotion by the competent authority.
- The candidate must hold the rank of Lecturer.
- In the year preceding the year of the proposed promotion, the lecturer must have been assessed as good or better, possess good political qualities and professional ethics, and not be under disciplinary action or subject to disciplinary regulations.
- The candidate must have held the rank of Lecturer for a minimum period and meet the standards for training, retraining, professional capacity, and expertise…
6. Free Vehicle Inspection Does Not Exempt Fee Payment for File Setup
Circular 11/2024/TT-BGTVT of the Ministry of Transport, effective from 15/06/2024, stipulates the service fees for vehicle file setup for vehicles exempt from initial inspection and for reprinting the Certificate of Inspection and Inspection Mark.
Accordingly, vehicles exempt from initial inspection must still pay a fee for vehicle file setup, as follows:
Fee for vehicle file setup for exempt vehicles: 46,000 VND/vehicle; Fee for reprinting the Certificate of Inspection and Inspection Mark: 23,000 VND/time/vehicle. These fees include the cost of collecting the fee for the Certificate of Inspection for Traffic Safety and Environmental Protection but exclude VAT.
Individuals and organizations providing these services must pay the fees to the registration agency at the rates mentioned above.
7. Official Website for Product and Commodity Traceability
The Ministry of Science and Technology has issued Circular 02/2024/TT-BKHCN on regulations for the management of product and commodity traceability, effective from 01/06/2024.
According to this circular, consumers can look up the following information on the National Portal for Product and Commodity Traceability: Product and commodity names and images; names and addresses of production and business units; time of occurrence of traceability events in the production and business of products and commodities; brand names, trademarks, character codes, and serial numbers of products (if any); and expiration dates of products and commodities (if any).
