New Decree on Non-Cash Payment in Vietnam

On 15 May 2024, a new Decree on non-cash payments has been passed by the Government (Decree 52/2024) to replace the old Decree 101/ND-CP of the Government on non-cash payment dated 22 November 2012 (Decree 101/2012) from 1 July 2024. In this post, we will introduce certain key changes of Decree 52/2024.

Supplementing e-wallets as one of the permitted non-cash payment instruments

Decree 52/2024 provides a specific definition of non-cash payment instruments which are instruments issued by organizations providing payment services, finance companies authorized to issue credit cards, intermediary payment service providers offering electronic wallet services, and used by customers to conduct payment transactions. Furthermore, e-wallets are supplemented as one of the non-cash payment instruments.

Banks, foreign bank branches or intermediary payment service providers may provide E-wallets service. Due to the increase in illegal payments via e-wallets (such as online gambling, or scamming), Decree 52/2024 only allows customers to use e-wallets linked to his or her own payment account or debit card. This regulation may prevent people from renting or lending their identities and documents to alleged violators for opening bank accounts or e-wallets.

Electricity Price Range For LNG Power Plants In 2024

On 27 May 2024, the Ministry of Industry and Trade (MOIT) issued Decision 1260 approving the electricity generation price (EGP) range for the year 2024 applicable to LNG combined-cycle gas turbine (CCGT) thermal power plant (nhà máy nhiệt điện tua bin khí chu trình hỗn hợp sử dụng LNG in Vietnamese).

The ceiling price of such EGP range is VND 2,590.85 per kWh (about 10.67 UScents at the exchange rate of 1 USD = 24,262 VND), exclusive of VAT. Such ceiling price was calculated based on the following factors:

New Land Law 2024 – A Clearer Legal Ground for BCC Projects Involving Land Use Rights

Background

Under the business cooperation contract (BCC) structure, the parties do not establish an entity but usually cooperate to use their available resources, including land use rights (LUR) to do business. The party having LUR (Landlord) will “contribute” its LUR to the BCC and allow the other party (Developer) to develop house/construction works on the land while retaining title to the LUR.

Discussion

Under the current land law, implementing a project involving LUR via BCC is arguably possible. However, the relevant regulations seem vague and may give rise to certain legal issues. With new regulations of the Land Law 2024, the BCC structure will have a more concrete legal framework. In particular,

  • Article 148 and 149 of the Land Law 2024 now codifies regulation on granting ownership certificates to owners of ready-built house/construction works who are not simultaneously land user under Decree 43/2014 guiding the Land Law 2013. In this regard, the Land Law 2024 now expressly recognizes BCC as valid evidence of the owners’ lawful right to use the other party’s land for building their houses/construction works. In light of this clear regulation, the Developers to the BCCs now may find it confident that its title to the building on land will be protected.

Comparison of the Rights and Obligations of Domestic Economic Organization under the Land Law 2013 and the Land Law 2024

Please download the pdf version here.

In this post, we compare the rights and obligations of land users being domestic economic organizations (Domestic EOs) according to Land Law 2013 and Land Law 2024. Our comparison is provided in the contexts of land allocation/land lease with one-off rental payment and land lease with annual rental payment.

This post is written by Cao Khanh Linh, Nguyen Hoang Duong, and Nguyen Quang Vu.