1. Highest land price bracket in Hanoi and HCM City at 81 million dong/sqm:

From today January 1, 2012, the land price in Hanoi and Ho Chi Minh City had a ceiling of 81 million dong per square metre (m2), unchanged from 2010 and 2011. The price adjustment will be only made partially in some locations, routes, newly formed cities, with convenient locations and some areas under the urban development planning of Hanoi. The maximum price is applicable to Hang Ngang Street, Hang Dao Street, Ly Thai To Street (Hoan Kiem district, Hanoi, Vietnam) and Dong Khoi, Le Loi and Nguyen Hue (District 1, HCM City).

2. Increasing car registration fees in Hanoi and Ho Chi Minh City:

In efforts to restrict private vehicles, reduce traffic jams and increase revenues for the state budget, from January 01, 2012, HCM City increased the car registration fee by 15%, while Hanoi raised the registration fee for less than 10-seat automobiles by 20%. In addition, Hanoi has increased the license plate fee for cars by 10 times, from 2 to 20 million dong.

3. First merged bank officially comes in full operations

From January 01, 2012, the bank merged from First Commercial Bank, Saigon Commercial Bank and Vietnam Tin Nghia Bank bearing the name of Saigon Commercial Joint Stock Bank (SCB) with an operation duration of 99 years officially came in full operations. The bank that has charter capital of 10.583 trillion dong is headquartered at No 927 Tran Hung Dao Street, Ward 1, District 5, Ho Chi Minh City. The merged bank also inherits all branches, transaction offices, ATM and saving funds of three former banks.

4. Adjustments of taxes on hundreds of items

The Ministry of Finance said that from January 1, 2012, at least 1,000 tariff lines in the preferential import table according to Vietnam’s commitments with trading partners were reduced. Approximately 945 items saw changes in the tariff rates to follow the roadmap of tax cuts under WTO commitments. 157 tariff lines of the group of essential goods were adjusted up to protect domestic production and restrict imports. Of the 157 tariff lines, the rate of 108 tariff lines has been increased against the prevailing level by 1-2%. The Ministry of Finance also reduced the import duty of 87 tariff lines such as raw materials and components which can not be produced locally or to remedy inappropriateness and ensure compliance with import duties of finished products.

5. EVN Telecom merged into Viettel:

From January 1, 2012, Viettel officially received all assets from EVN Telecom, including land, stations, technology, machinery, telecommunications equipment and others. As for the people, Vietnam only accepted employees of EVN Telecom. And the staff working in the parent group (EVN), but doing the part-time jobs in EVN Telecom, Viettel transferred them back to EVN for management.

6. Social insurance at 24% of salary:

From January 1, 2012, the payment rate for social insurance is 24% of the salary, of which 3% is contributed to sickness and maternity fund; 1% to workers' compensation, occupational disease fund and 20 % to retirement and death fund.

7. Insured health care responsibilities:

In order to insure for mistakes and professional errors in the examination and treatment, caused by technical negligence and carelessness of practitioners in the medical examination and treatment for patients, the Government issued Decree on liability insurance in the medical examination and treatment, taking effect from January 1, 2012.

8. Increasing bus fare in HCM City:

HCM City Department of Transport decided that from January 01, 2012, bus fare would be calculated according to new routes with a landmark of 18 km. Passengers traveling under this distance are charged 4,000 dong each, and more than 18 km, they will be charged 5,000 dong to offset the costs of fuel for transport enterprises. Monthly ticket prices are unchanged.

9. Rising car keeping costs in Hanoi:

Hanoi People's Committee ruled that from early 2012, the car-parking fee in the capital city is increased from 20,000 dong to 50,000 dong/turn. The highest monthly parking is 3.5 - 4.5 million dong, at the lowest is 2-2.5 million dong. The parking fees for motorcycles and bicycles are unchanged.

Six laws took effect from January 1, 2012:

1. Law on Amending and Supplementing some articles of the Code of Civil Procedure

2. Law on Prevention and Anti-Human Trafficking

3. Independent Audit Law

4. Law on Civil Servants

5. Tax Law for Environmental Protection

6. Tax Law for Non-agricultural Land Use

VietBiz24.com - January 1st, 2012