January 2003

According to this Decree, enterprises that pay value added tax in accordance with the credit method are entitled to input value added tax deductions at a rate of 1% of the total value in respect of purchases of unprocessed agricultural, forestry and aquatic products purchased for the purposes of production or processing, soil, stones, sand, gravel and scrap materials purchased without value added tax invoices. However, such deductions do not apply to goods purchased for the purposes of trading or export.  

Pursuant to this Decree, collective labour agreements may be adopted by enterprises and organisations in which trade unions or temporary committees of trade unions have been established. Accordingly, it is possible for enterprises having less than 10 employees to sign collective labour agreements. Where a collective labour agreement is partially invalid, the rights and obligations of the parties in respect of the invalid parts will be settled in accordance with the prevailing law and individual labour contracts.
In addition, this Decree stipulates that existing collective labour agreements will continue to be valid and enforceable in the case of merged enterprises provided that employees of premerged enterprises account for more than 50% of all employees of merged enterprises after completion of the merger. If this condition is not met, new collective labour agreements must be negotiated and executed within 6 months of the completion of the merger.   

Pursuant to this Official Letter, persons and entities entitled to diplomatic immunity who purchase goods or services in Vietnam will be refunded with the amounts of value added tax paid. Accordingly, enterprises selling goods to persons and entities entitled to diplomatic immunity must calculate the amount of value added tax and specify such amount in the invoice.
Thereafter, persons and entities entitled to diplomatic immunity may be refunded with the value added tax amount paid as evidenced by such invoices.  

Decision 1280/2002/QD-NHNN dated November 19, 2002 of the State Bank of Vietnam on issuance of the standard charter of joint venture banks
According to this Decision, within nine months from the effective date of this Decision (December 4, 2002), joint venture banks must prepare their charters on the organisation and operation based on the charter provided in this Decision and submit same to the State Bank of  Vietnam for approval. The charter must set out the name of the joint venture bank and the joint venture parties to the bank, as well as a great many other details.

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