Asia Counsel Insights gives readers a concise insight into legal and business developments in Vietnam. This edition has news on Prime Minister approvals for loans by credit institutions exceeding the single borrower limit; regulations of gyms and fitness centres and penalties and fines in the insurance sector.

1. ASIA COUNSEL INSIGHTS
April 2018
Asia Counsel Insights provide an
overview of the key trending legal
and business issues in Vietnam and
how they may impact your
business. Please enjoy your read.
We wish all readers a memorable
Unification Day and International
Labor Day long public holiday
weekend
Commerce
Commodities Trading
On 4 April 2018 Decree No. 51/2018
/ ND-CP was issued to amend and
add a number of articles of Decree
No. 158/2006 / ND-CP on the
conditions for the establishment of a
Commodities Exchange.
Under Decree 51, the conditions for
establishment include having a
charter capital of at least VND 150
billion and an information
technology system that meets the
requirements for technological and
technical solutions for the sale and
purchase of commodities through
the commodities exchange.
Decree 51 has also added a
provision that foreign investors are
entitled to participate in trading
activities through contributing up to
a maximum of 49% of the charter
capital of a commodities exchange
in Vietnam.
Decree 51 comes into effect on 1
June 2018.
Insurance Business
Agriculture Insurance
The government issued Decree
58/2018/NĐ-CP on 18 April 2018, which
is the first legal instrument to deal
specifically with agricultural insurance.
The most significant provision of this
decree is the subsidization of
insurance premiums for certain
individuals/organisations and
categories of agriculture:
• organisations applying advanced
technology can receive a 20%
subsidy;
• those engaged in arable,
livestock, and/or aquaculture can
receive a subsidy from up to 90%
for those classified as being in
poverty, or 20% for all others.
The insured risks for the subsidized
insurance premiums are natural
disaster and disease.
Decree 58 will come into effect on 5
June 2018.
Investment
Investing in agriculture
The government issued Decree No.
57/2018 /ND-CP on April 17 2018 to
encourage investment in agriculture
and rural areas. These incentives
include:
• special investment incentives,
such as for enterprises with
eligible agricultural projects (i)
exemption from land rent or
water surface for the entire
period or up to the first 15 years;
and (ii) VND2 million per labourer
subsidy to support vocational
training.
• providing subsidies and grants for
agricultural research and
development.
• providing support of VND5 billion
for each investment project in
raising beef and dairy cattle.
Decree 57 took effect on 17 April 2018
and replaced Decree 210/2013/NĐ-
CP.
About Asia Counsel
Asia Counsel is a dynamic international corporate and commercial law firm dedicated to serving clients in Vietnam. Our partners have over ten years of
experience in working on complex and challenging matters in Vietnam. We are committed to helping clients achieve their business strategies and providing
outstanding legal services.
If you have any questions on any of the items discussed above, please do not hesitate to contact us.
Christian Schaefer
Managing Partner
E christian@asia-counsel.com
Minh Duong
Partner
E minh@asia-counsel.com
Asia Counsel Vietnam Law Company Limited, Level 15, Deutsches Haus, 33 Le Duan Boulevard, Ben Nghe Ward, District 1, Ho Chi Minh City

2. ASIA COUNSEL INSIGHTS
April 2018
Vietnam Fact Box
According to the Vietnam
Renewable Energy Report
2018 by StoxPlus, there are
currently approximately 245
renewable energy projects in
Vietnam, including solar
power and biomass
electricity. However, only 19%
of these have reached the
construction stage and only
8% have begun operation. If
all of these projects begin
operation, the total capacity
of Vietnam’s renewable
energy will reach 23.2GW,
which is nearly 10 times higher
than the target of 2.65GW by
2020 as indicated in the
Revised National Master
Power Plan VII.
Business Conditions
Gym and fitness centers
Circular No.10/2018/TT-BVHDL providing
regulations on facilities, equipment and
personnel training of gym and fitness
centers recently came into effect.
Under this Circular, gym and fitness
centre facilities and equipment must
satisfy the following requirements:
• the exercise room must be at least
60m2, with the distance from the
ceiling to the floor of at least 2.8m,
and well-ventilated;
• exercise equipment must be
spaced 10 – 30cm from each other;
• lighting with illuminance of at least
150 lux must be in place;
• the sound system must be properly
functioning;
• toilets, changing rooms and lockers
are required; and first-aid kits must
be in accordance with the Ministry
of Health requirements;
• gym and fitness center rules must
include provisions on work hours,
eligible and ineligible members and
recommendations on safety
precautions and measures.
This circular took effect on 15 April
2018.
Commerce
Trade remedies
On 20 April 2018, the Ministry of
Industry and Trade issued Circular no.
06/2018/TT-BCT detailing some
provisions on trade remedies. The key
points are set out below:
• cases exempted from trade
remedies include imported
special goods that are similar to
local goods or directly competing
with local goods, when the
volume of similar local goods or
directly competing local goods
cannot satisfy the domestic
demand and so on;
• during the investigation, the
involved parties have the right to
request the authority to keep their
information confidential, such as
certain business secrets, data on
manufacturing/ trading activities
as costs, commercial terms, sale
price, financial dates;
• the Circular also sets information
permitted to be publicly
announced during the
investigation of trade remedies.
This circular takes effect from 15 June
2018.
Insurance Business
Administrative Penalties
On 21 March 2018, Decree
48/2018/ND-CP was issued to
amend a number of articles of
Decree 98/2013/ND-CP on
penalties for administrative
offences in insurance business and
lottery business (“Decree 48”). The
key amendments include:
• a fine of VND 40 to 50 million
for using any methods to
force organizations or
individuals to buy insurance.
• a fine of VND 60 to 70 million
for investing owner’s equity
against law and distributing
annual surplus of funds to
owners of life insurer contrary
to law.
• a fine of VND 90 to 100 million
for colluding with the
insurance beneficiary to
illegally claim for indemnities
or insurance payout, in case
the appropriated amount is
between VND 20 to 50 million
and not warranting criminal
prosecution.
Decree 48 will come into effect on
10 May 2018.
Banking
Single Borrower Limit
On 6 March 2018, the Prime Minister of Vietnam issued Decision 13/2018/QD-TTg on
approval for loans that exceed the single borrower limit. Article 128.1 of the Law on
Credit Institutions sets a single borrower limit of 15% of the equity of a commercial bank
– this is 25% for that borrower and its related persons. The Prime Minister may approve
extension of credit beyond this limit. Decision 13 sets out the conditions for obtaining
the PM approval:
• The borrower must not have any bad debts in the last three consecutive years and
the borrower’s debt payable must not be more than 3X owner’s equity.
• The investment project of the borrower must contribute to socio-economic
development and within the approved investment sectors of the Government.
An application must be filed with the State Bank of Vietnam which will present the
application to the Prime Minister for his decision.