He also proclaimed the Resolution governing Agricultural Land-use Tax Exemption and Reduction.

The National Assembly approved all the new legislations at its 8th session which ended last month.

The Environmental Tax will become effective on January 1, 2011 and makes products made from oil and gas, coal and the hydro-chloro-fluro-carbons, HCFCs, used in refrigeration liable for tax.

These include plastic bags, pesticides, agricultural-produce preservatives, warehouse sanitisers and chemicals to kill termites.

The tax was necessary to help protect the environment, explained Deputy Finance Minister Do Hoang Anh Tuan.

Economic growth and urban development had damaged the environment and the tax would raise public awareness about the need to protect it; enhance State management, endorse Viet Nam's international commitment and increase the public's contribution, he said.

Insurance

The president's office says the Insurance Business Law was revised to meet the country's commitment to World Trade Organisation membership; harmonise relevant bills and improve State management.

The amended law defines a broader classification of insurance products and insurance bidding.

Specifically, it includes regulations for the supply of cross-border insurance services; compulsory reassurance, insurance bidding and co-operation and competition in insurance services.

It also regulates the supervision of insurance providers from start-up.

The legislation is intended to strengthen the payment capacity of insurance providers and makes it compulsory for them to invest in the establishment of fund for protecting the insured.

The law takes effect on July 1 next year.

Securities

The revised securities law makes it compulsory for public companies to list shares on the stock market within a year of their Initial Public Offering.

It is intended to limit over-the-counter market sales; create equality of securities exchanges; enhance the State management and accord with international regulations.

The law also extends the regulations governing the management of public companies; the organisation of the stock market and its links with other stock markets; securities and fund management companies, private securities offerings and the dissemination of market information.

State Securities Commission chairman Vu Bang said Viet Nam's securities market had grown rapidly since the law took effect four years ago and the amendments were essential to meet its real demands.

Exemption

The Resolution governing Agricultural Land-use Tax Exemption and Reduction allows tax exemptions for:

Land for research and experimental production; arable land used for at least one yearly rice crop; land for salt production; and land the State allocates to impoverished households and for agricultural production.

The tax for land the State assigns to the armed forces; economic and socio-political organisations and other agencies for agricultural production will attract a tax reduction of 50 per cent.

Unused agricultural land not used for production or leases will be forfeit or attract 100 per cent of the tax.

The resolution will take effect from January to December 2020. - VNS