New decree governs NGOs

The Government issued Decree No 12/2012/ND-CP on March 1, regulating the registration and operations of foreign non-governmental organizations (NGOs) in Vietnam. The decree governs non-governmental and non-profit organizations, social funds, private funds, and other forms of organizations incorporated under foreign law which supports development efforts, humanitarian aid, or other non-profit purposes in Vietnam.

NGOs seeking to operate in Vietnam must have legal status under the laws of country of incorporation, have charter setting forth clear principles for operation, and have plans for programs, projects or non-project assistance in compliance with social and economic policies of Vietnam. The term of an operating license for a foreign NGO is three years and can be extended.

Decree No 12 takes effect on June 1 and replaces Prime Minister's Decision No 340/QD-TTg of May 1996.

Decree regulates assets subject to security interests

The Government issued Decree No 11/2012/ND-CP on February 22 amending Decree No 163/2006/ND-CP of December 2006 on secured transactions. Under the decree, security interests can be formed in (i) assets securing loans, (ii) assets to be formed or legally constituted by the time the security interest is created, and (iii) assets that have been formed and are subject to ownership registration, but can only be registered after the security interest is created. Such future assets cannot include the land-use rights.

Where motorized vehicles, inland water transport vehicles, railway vehicles are sold without notice to or prior consent of the mortgagee, Decree No 11 requires that the vehicle registration authority must submit a written notice of reregistration or deregistration. This provision aims to prevent mortgaged vehicles from being transferred without the prior consent of the mortgagee.

Decree No 11 also provides guidelines with respect to the sale of other secured assets. Where it is mutually agreed to that secured assets be sold at auction, the prevailing laws on auctions will apply. Otherwise, the sale of secured assets will be subject to the agreement of the parties or subject to an appraisal by a licensed appraisal organization prior to sale.

Decree No 11 takes effect on April 10.

Regulations drafted on import, export of medicines

The Ministry of Health recently invited public comment on the tenth draft of a circular to regulate import and export of medicines by foreign-invested enterprises (FIEs). Under the draft, only FIEs licensed and certified to import and export medicines would be permitted to do so. Such FIEs must have storage facilities in compliance with Good Storage Practices (GSP) standards. FIEs would be prohibited from distributing medicines in Vietnam.