The new decree replaces Decree No 99/2007/ND-CP of June 2007 and governs all types of contracts, including contracts for consulting services; construction services; engineering, procurement and construction (EPC); and turnkey contracts.

The decree also includes a number of regulations applicable to contractor performance under contracts. Specifically, the contractor is either compelled to buy insurance to ensure its performance as well as insure onsite construction and equipment for a period of at least 24 months, with premiums equal to 3-5 per cent of the value of the construction. The contractor must also provide a guaranty of 10 per cent of the contract price.

Law to allow electronic invoices when trading goods and services

The Government issued Decree No 51/2010/ND-CP on May 14, replacing Decree No 89/2002/ND-CP on the management and use of invoices.

In contrast to the earlier decree, Decree No 51 does not require a uniform type of invoice but allows enterprises and organisations that satisfy conditions set by law to design its own specimen invoices. The decree also defines electronic invoices for the first time under Vietnamese law as those issued and processed on a computerised network of organisations or individuals with tax codes when trading in goods or services and which are filed by computer in accordance with legal provisions on electronic transactions. Organisations and enterprises which do not meet requirements under law for generating their own invoices or using electronic invoices must continue to use invoices under a form issued by provincial taxation departments.

An invoice is not required for transactions of less than VND200,000, unless requested by the buyer. However, proceeds on transactions of less than VND200,000 not documented by invoices must be totalled at the end of each business day and a total of "retail without invoices" reported on a separate invoice.

Decree No 51 also sets administrative penalties, including fines of VND1-100,000,000 in addition to some supplementary sanctions. The new decree takes effect on January 1 of next year.

New regulation details taxable price of natural resources

The Government issued Decree No 50/2010/ND-CP on May 14, including regulations pursuant to the Law on Natural Resources Taxation. Under the decree, in those cases in which the quantity of assessable natural resources output cannot be determined under Vietnamese measurement standards, the quantity shall be set by a fixed estimation.

The new regulations also detail how to determine taxable prices in some specific instances. The taxable price of timber, for example, shall be the selling price at the timber yard or logging site. The taxable price of any exploited natural resources sold in Viet Nam shall be the price before VAT, and that of exported resources the free-on-board (FOB) export price.