On Aug. 19, VIE GVT issued draft law to amend various finance laws.
VIE GVT proposed to amend a number of articles of Law on securities, Law on tax administration, Law on accounting, Law on independent auditing, Law on state budget, Law on management and use of public assets, and the Law on national reserves.
Ministry of Finance requests that the agencies to give their opinions on draft laws.
Document dated Aug. 19, 2024, received from VIE GVT Aug. 21, summarized on Aug. 26.
Law on Securities
Add provisions on the responsibilities of organizations and individuals submitting records or participating in the process of preparing records and reporting documents.
Amends the requirements of company and individual professional securities investors.
Amends the prohibited activities in the securities market such as insider dealings.
Amends articles re topics such as public offering of additional shares of a public company, cancellation of public offering of securities, private placement of securities by public companies, and suspension and cancellation of the private placement.
Also covers conditions for registration of public companies, stock repurchase of employees who resigned, cancellation of the status of a public company and rights and obligations of the Vietnam Securities Depository and Clearing Corporation.
Law on Accounting
Amends clauses on accounting standards, writing and numbers used in accounting, accounting periods, content of accounting vouchers, responsibilities of head/legal representative of accounting unit, and accountants, state management of accounting.
Law on Independent Auditing
Direction of more strictly regulating subjects that are not allowed to practice auditing.
increases the time for signing an audit report by an auditor for a client from no more than 3 consecutive years to no more than 5 consecutive years.
Increases minimum no. of auditors at a branch of a foreign auditing firm from 2 to 5.
Requires auditing enterprises to have at least 5 auditors practicing at the head office.
Increases the number of subjects that need to be audited annually and amends direction of defining large-scale enterprises and organizations as public interest units.
Law on Tax Administration
Supplements the content of promoting the implementation of digital transformation, regulations on electronic invoices, using the database on electronic invoices.
Specifies the content based on socio-economic development situation in each period.
The resources allocated from the state budget to implement digitalization contents above do not exceed 01% of the state budget revenue estimate by National Assembly.
Supplements the right of taxpayers to be compensated; amends regulations related to foreign suppliers re e-commerce business activities, digital platform-based business and other services regardless if they have a permanent establishment in Vietnam.
Effectiveness
Agencies shall provide written comments by Aug. 21, 2024.
Aug. 30, 2024 VIE GVT Response
On Aug. 30, 2024, VIE GVT issued outline, explanation, and acceptance of comments from agencies, organizations, as well as individuals on the proposal discussed above.
Includes comments which seek clarification on perceived shortcomings in proposal, i.e. regarding fines/penalties; and a request to add a provision on registration of auditors.
Sep. 22, 2024 Thematic Meeting
On Sep. 22, 2024, VIE GVT issued resolution 148/NQ-CP, which concerns the thematic meeting on law making in Sep. 2024, regarding proposed draft laws detailed above.
Updated on the progress as well as the future works for ministries for the draft laws.
Document dated Sep. 22, 2024, received from VIE GVT Sep. 25, summarized Sep. 30.
Sep. 27, 2024 Draft Law on Accounting
On Sep. 27, 2024, VIE GVT said the drafting committee requested Ministry of Finance to provide specific procedures on content related to the application of international accounting standards in Vietnam and allow SMEs to apply simple accounting regime.
Plus add a provision that an accountant who has a different opinion from his/her superior and has reported to his/her superior and reserved his/her opinion is not responsible for any violations when implementing the instructions of his/her superior.
Document dated Sep. 27, 2024, received from VIE GVT Sep. 28, summarized Oct. 2.
Oct. 28, 2024 VIE GVT Meeting
On Oct. 28, 2024, VIE GVT said the draft law to amend seven laws aims to resolve regulatory bottlenecks, to save time and address urgent financial sector needs.
Cover the Securities law, Accounting law, Independent auditing law, State budget law, Public asset management law, Tax management law, and National reserves law.
Amendments aim to improve mobilization, efficient use of public financial resources, particularly through State budget Law, Law on management and use of public assets.
The project seeks to reduce compliance costs and empower local authorities.
Proposed changes in Tax management law will streamline tax collection, enhance fairness and timeliness; Securities Law will be revised to protect investor rights, enhance market transparency, and attract domestic and foreign investment.
Enable local governments to fund key infrastructure projects, streamline tax refund processes by decentralizing approvals, require credit ratings for privately issued bonds.
Amendments are projected to take effect in Jan. 2026, providing time for adaptation.
Document dated Oct. 28, 2024, received from VIE GVT Oct. 29, summarized Nov. 1.
Oct. 29, 2024 VIE PRL National Assembly
On Oct. 29, 2024, VIE PRL delegates said rigorous assessment of draft amendments is needed, especially for unique policies, despite the expedited review process.
Amendments impacting national financial management must follow Constitutional guidelines, particularly in budget allocation; clarify terms like large-scale enterprises.
Amendments to the Public investment law are essential to enhance management efficiency, address existing challenges, and improve public investment processes.
Nov. 1, 2024 VIE GVT Proposed Amendments
On Nov. 1, 2024, VIE GVT proposed amendments to strengthen penalties under the Independent auditing law, aiming to address gaps in current regulations and penalties.
The amendments would change the existing regulations on state management of independent auditing activities, including auditor practice registration and suspension.
They would further expand the Ministry of Finance's authority to suspend auditing practices, revoke auditor practice certificates, and manage auditor registration.
In addition, the Ministry could publish lists of audit firms and practicing auditors.
Increases maximum administrative fines to VND 2bn for organizations, VND 1bn for individuals; extends statute of limitations for violations to 5 years from current 1 year.
Nov. 19, 2024 Effective Date
On Nov. 19, 2024, VIE GVT said the National Assembly Standing Committee held its 39th session, discussing proposed changes to the draft 1 law amending 7 laws.
Proposed to amend the name to Law amending the Securities law, Accounting law, Independent audit law, State budget law, Law on management and use of public assets, tax management law, Personal income tax law, National reserve law, and Law on handling of administrative violations; includes 2 other laws that are also affected.
Review agency agreed to submit to National Assembly; law takes effect Jan. 1, 2025.
Nov. 29, 2024 Law Passed
On Nov. 29, 2024, VIE GVT said VIE PRL passed the law amending nine financial laws.
