DECREE

AMENDMENTS TO SOME DECREES ON BUSINESS CONDITIONS UNDER THE MANAGEMENT OF THE MINISTRY OF FINANCE

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Securities dated June 29, 2006 and Law on amendments to some Articles of the Law on Securities dated November 24, 2010;

Pursuant to the Law on Insurance Business dated December 09, 2000 and Law on amendments to some Articles of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law on Independent Audit dated March 29, 2011;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on amendments to Article 6 and Appendix 4 on the list of conditional business lines stipulated in the Law on Investment dated November 22, 2016;

Pursuant to the Law on Enterprises dated November 26, 2014;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on amendments to some Decrees on business conditions under the management of the Ministry of Finance.

Chapter I

ACCOUNTING AND AUDITING

Article 1. Amending and repealing some Articles of the Decree No. 84/2016/ND-CP dated July 01, 2016 on standards and conditions to be satisfied by eligibility requirements for practicing auditors and auditing firms accredited to provide audit services for public interest entities

1. Some Articles of the Decree No. 84/2016/ND-CP dated July 01, 2016 are amended as follows:

a) Point dd Clause 1 of Article 5 is amended as follows:

“dd) At least 200 entities receive audit reports on their annual financial statements issued by the auditing firm from October 01 of the previous year to September 30 of the year in which the application for registration is submitted.”

b) Points b and c Clause 2 of Article 5 are amended as follows:

“b) It has operated in Vietnam for at least 24 months from the date on which the initial list of practicing auditors is approved by a competent authority or an initial certificate of eligibility for provision of audit services is issued to the submission date of application;

c) At least 250 entities receive audit reports on their annual financial statements issued by the auditing firm from October 01 of the previous year to September 30 of the year in which the application for registration is submitted.”

2. Some Articles of the Decree No. 84/2016/ND-CP dated July 01, 2016 are repealed as follows:

a) Points a, e, g, h and i Clause 1 of Article 5 are repealed.

b) Clause 2, Point g Clause 4 and Clause 5 of Article 9 are repealed.

Article 2. Repealing some Articles of the Decree No. 174/2016/ND-CP dated December 30, 2016 on elaboration of some article of the Law on Accounting

1. Points b, d and dd Clause 1 of Article 30 are repealed.

2. Points b and d Clause 1 of Article 34 are repealed.

Article 3. Repealing some Articles of the Decree No. 17/2012/ND-CP dated March 13, 2012 on guidelines for implementation of Law on Independent Audit

1. Clause 2 of Article 6 is repealed.

2. Points b, dd and g Clause 1 of Article 11 are repealed.

Chapter II

LOTTERY, PRIZE-REWARDING ELECTRONIC GAMES FOR FOREIGNERS, CREDIT RATING SERVICES, CASINO, BETTING AND VOLUNTARY RETIREMENT FUND MANAGEMENT SERVICES

Article 4. Amending and repealing some Articles of the Government’s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business

1. Point a Clause 2 of Article 12 is amended as follows:

“a) Regarding an individual, he/she must be a Vietnamese citizen who permanently resides in Vietnam. Regarding an organization, it must be a business entity legally established and operating in Vietnam;”

2. Clause 2 of Article 23 is repealed.

Article 5. Repealing Clause 9 Article 1 of the Government’s Decree No. 78/2012/ND-CP dated October 05, 2012 on amendments to some Articles of the Government’s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business.

Article 6. Amending and repealing some Articles of the Government’s Decree No. 86/2013/ND-CP dated July 29, 2013 on the business of prize-winning electronic games for foreigners

1. Some Articles of the Government’s Decree No. 86/2013/ND-CP dated July 29, 2013 are amended as follows:

a) Points b and c Clause 2 of Article 5 are amended as follows:

“b) It is required to install electronic equipment and camera system for constant monitoring and surveillance of all activities carried out within the business location (24/24h). All footages must be stored within at least 15 days from the recording date. All footages recorded at the entrance gate, in areas where prize-rewarding electronic gaming machines are located, checkout counter and areas where cash or tokens are converted and cash and token containers are located must be stored within at least 30 days from the recording date;

c) It is required to satisfy security and order conditions as prescribed by the law on security and order conditions for some business lines subject to conditions;”

b) Clause 1 of Article 19 (amended in Clause 6 Article 1 of the Government’s Decree No. 175/2016/ND-CP dated December 30, 2016 on amendments to some Articles specified in the Government’s Decree No. 86/2013/ND-CP dated July 29, 2013 on the business of prize-rewarding electronic games for foreigners) is amended as follows:

“1. A company shall only qualify for the certification of eligibility for prize-rewarding electronic gaming business after registering for conducting the prize-rewarding electronic gaming business pursuant to the Law of Investment and the Enterprise Law and satisfying all conditions specified in Clause 3 of this Article.”

c) Point c Clause 3 of Article 19 is amended as follows:

“c) There are persons in charge of managing or controlling the casino. Such persons must obtain at least a bachelor’s degree and have at least 03 years of experience in the management of business of prize-winning electronic games.”

d) Point e Clause 3 of Article 19 is amended as follows:

“e) The company must have a prize-winning electronic game business plan to maintain security and social order as prescribed by law.”

dd) Clause 9 of Article 20 is amended as follows:

“9. A business plan contains at least: targets, quantity and categories of prize-rewarding electronic games, expected needs for foreign currency receipt and spending, measures to assure security and social order of the business location and methods for implementing the plan."

2. Point d Clause 3 of Article 19 is repealed.

Article 7. Amending and repealing some Articles of the Government’s Decree No. 88/2014/ND-CP dated September 26, 2014 on credit rating services

1. Clauses 7 and 8 Article 14 of the Government’s Decree No. 88/2014/ND-CP dated September 26, 2014 are amended as follows:

“7. Have a business process satisfying regulations in Article 31 of this Decree.

8. Have a business plan made in accordance with Article 8 of this Decree and containing at least:

a) Expected revenues and operating costs;

b) Expected data sources to be used.”

2. Some Articles of the Government’s Decree No. 88/2014/ND-CP dated September 26, 2014 are repealed as follows:

a) Clauses 1 and 10 of Article 14 are repealed;

b) Clause 2 of Article 15 is repealed;

c) Clauses 1 and 2 of Article 19 are repealed;

d) Clause 1 of Article 20 is repealed;

dd) Clause 1 of Article 21 is repealed.

Article 8. Amending and repealing some Articles of the Government’s Decree No. 03/2017/ND-CP dated January 16, 2017 on casino business

1. Point d Clause 1 of Article 24 is amended as follows:

“d) There are persons in charge of managing or controlling the casino. Such persons must obtain at least a bachelor’s degree and having at least 1 year of experience in the management of casino business.”

2. Clause 3 of Article 24 is repealed.

Article 9. Amending and repealing some Articles of the Government’s Decree No. 06/2017/ND-CP dated January 24, 2017 on business of betting on horse racing, greyhound racing and international soccer

1. Some Articles of the Government’s Decree No. 06/2017/ND-CP dated January 24, 2017 are amended as follows:

a) Points d and e Clause 1 of Article 30 are amended as follows:

“d) A plan on investment in the technological system, technical equipment and business software to ensure their accurate, safe and stable operation;

e) A commitment to community assistance.”

b) Points b and dd Clause 2 of Article 38 are amended as follows:

“b) A plan on investment in the technological system, technical equipment and business software to ensure their accurate, safe and stable operation;

dd) A commitment to community assistance.”

2. Some Articles of the Government’s Decree No. 06/2017/ND-CP dated January 24, 2017 are repealed as follows:

a) Point dd Clause 1 of Article 30 is repealed.

b) Point d Clause 2 of Article 38 is repealed.

Article 10. Amending and repealing some Articles of the Government’s Decree No. 88/2016/ND-CP dated July 01, 2016 on voluntary supplemental retirement program

1. Some Articles of the Government’s Decree No. 88/2016/ND-CP dated July 01, 2016 are amended as follows:

a) Point e Clause 4 of Article 16 is amended as follows:

“e) The supervisory bank is allowed to provide other services to the retirement fund that is a party of the supervisory contract but is required to separate organizational structures of divisions in charge;”

b) Clause 2 of Article 34 is amended as follows:

“2. A retirement fund management company must not be in the restructuring planning upon regulatory body’s decision.”

2. Some Articles of the Government’s Decree No. 88/2016/ND-CP dated July 01, 2016 are repealed as follows:

b) Point b Clause 5 of Article 34 is repealed.

b) Point b Clause 4 of Article 35 is repealed.

Chapter III

INSURANCE BUSINESS

Article 11. Amending and repealing some Articles of the Decree No. 73/2016/ND-CP dated July 01, 2016 on guidelines for the implementation of the Law on Insurance Business and the Law on amendments to some Articles of the Law on Insurance Business

1. Some Articles of the Decree No. 73/2016/ND-CP dated July 01, 2016 are amended as follows:

a) Point a Clause 1 of Article 6 is amended as follows:

“c. Corporate investors contributing to at least 10% of the charter capital are required to have conducted a profitable business in 03 consecutive years immediately preceding the year in which the application for licensing is submitted;”

b) The text of the second dash in Point a Clause 1 of Article 7 is amended as follows:

Have operated for at least 7 years in the sector of business in which they intend to engage in Vietnam;”

c) The text of the fourth dash in Point a Clause 1 of Article 7 is amended as follows:

Have not seriously violated any laws on insurance business of the home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

d) Point a Clause 2 of Article 7 is amended as follows:

“a) At least 02 shareholders are organizations, which meet the requirements stated in Clause 1 Article 7 of this Decree and together hold at least 20% of shares in the insurance joint-stock company to be incorporated;”

dd) Point dd Clause 2 of Article 8 is amended as follows:

“dd) Have undertaken in writing to assume liability for all duties and commitments of the branches in Vietnam;”

e) Points b and c Clause 2 of Article 9 are amended as follows:

“b) Have operated for at least 7 years in the sector of insurance brokerage.

c) Have not seriously violated any laws on insurance brokerage of the home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

g) Point d Clause 10 of Article 11 is amended as follows:

“d) No serious violation of the foreign organization of any laws on insurance business in its home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

h) Point d Clause 11 of Article 12 is amended as follows:

“d) No serious violation of the foreign organization of any laws on insurance business in its home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

i) Point d Clause 8 of Article 13 is amended as follows:

“d) No serious violation of the foreign non-life insurance enterprise of any laws on insurance business of its home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

k) Clause 9 of Article 13 is amended as follows:

“9. The written undertaking(s) of the foreign non-life insurance enterprise as per Clause 2 Article 8 of this Decree.”

l) Point c Clause 10 of Article 14 is amended as follows:

“c) No serious violation of the foreign organization of any laws on insurance brokerage in its home country for 03 consecutive years immediately preceding the year in which the application for licensing is submitted.”

2. Some Articles of the Decree No. 73/2016/ND-CP dated July 01, 2016 are repealed as follows:

a) Point a of Clause 1, and Clause 2 of Article 6 are repealed;

b) The text of the first dash in Point b of Clause 1, and Point b Clause 2 of Article 7 are repealed;

c) Point c Clause 2 of Article 8 is repealed;

d) Point a Clause 8 of Article 13 is repealed;

dd) Points a and c Clause 1; Points a and c Clause 2; Point b Clause 3; Points a and b Clause 4 of Article 86 are repealed.

Chapter IV

VALUATION

Article 12. Amending Clause 1 Article 18 of the Government’s Decree No. 89/2013/ND-CP dated August 06, 2013 on guidelines for implementation of Law on Prices regarding valuation

“1. The total stake of the shareholder that is an organization or of the contributing member that is an organization must not exceed 35% of charter capital of the valuation joint-stock company or valuation multi-member limited liability company.”

Chapter V

SECURITIES TRADING

Article 13. Amending some Articles of the Government’s Decree No. 58/2012/ND-CP dated July 20, 2012 on guidelines for implementation of the Law on Securities and the Law on amendments to some Articles of the Law on Securities

1. Point b Clause 1 of Article 71 is amended as follows:

“b) Proprietary trading: VND 50 billion;”

2. Point b Clause 6 of Article 71 is amended as follows:

“b) The organization has conducted a profitable business during the latest 2 years. In addition:

In case the organization is a commercial bank, insurance enterprise or securities-trading organization, it must not be under operational control, special control or other warning status and must fulfill all conditions to contribute capital and make investment in accordance with applicable laws.

In case the organization is another business entity:

- It has operated for at least 05 consecutive years immediately preceding the year in which it contributes capital for establishment of the securities-trading organization.

- After deducting long-term assets, the remaining of the equity is at least equal to the intended contribution;

- The working capital is at least equal to the intended contribution.”

3. Point a Clause 1 of Article 74 is amended as follows:

“a) The organization must be regularly under supervision of the finance, banking or securities authority in the country where the organization is established and operates;”

4. Clause 2 of Article 74 is amended as follows:

“2. The foreign securities-trading organization providing securities brokerage services is entitled to establish a representative office of the securities company in Vietnam if the conditions mentioned in Points a and b Clause 1 of this Article are met.”

Article 14. Amending and repealing some Articles of the Government’s Decree No. 86/2016/ND-CP dated July 01, 2016 on requirements for investment and trading in securities

1. Some Articles of the Government’s Decree No. 86/2016/ND-CP dated July 01, 2016 are amended as follows:

a) Clause 1 of Article 5 is amended as follows:

“1. Requirements pertaining to premises, facilities and equipment:

Have premises ensuring securities trading; adequate facilities, office equipment, computer and software system for investment analysis, risk analysis and management, storage of documents and equipment, and equipment for assurance of security in premises of the company in accordance with regulations on business process. Securities underwriting service and securities investment consulting services are not required to satisfy the requirements pertaining to equipment.”

b) Points a, b and d Clause 3 of Article 5 are amended as follows:

“a) He/she is not facing a criminal prosecution or serving an imprisonment sentence or is prohibited from business practicing job by a court as prescribed by law;

b) He/she must have at least 02 years' experience of working in services departments in the field of finance, banking and/or securities or in finance, accounting and/or investment departments of other enterprises and have at least 02 years' experience in administration;

d) He/she is not facing penalty/penalties as prescribed by laws on securities and securities market within the latest 06 months from the submission date of application;”

c) Point b Clause 1 of Article 8 is amended as follows:

“b) It is not in the state of warning, control, special control, mandatory suspension, voluntary suspension, consolidation, acquisition, dissolution, or bankruptcy;

d) Points a and d Clause 4 of Article 8 are amended as follows:

“a) It is licensed to provide securities brokerage, proprietary trading and securities underwriting services and has its provision of day trading service adopted by the Board of Directors or Board of Members or owner(s) of the securities company;

d) Liquidity ratio accounts for at least 220% in the latest 06 consecutive months by the time of registration of day trading services.”

dd) Point a Clause 1 of Article 10 is amended as follows:

“a) It is operating legally, not in the state of consolidation, merger, full division, partial division, dissolution, or bankruptcy; is licensed to provide securities trading services that are expected to register for the branch in Vietnam; the securities authority of the home country has signed bilateral or multilateral arrangements with SSC of Vietnam;”

e) Point b Clause 3 of Article 11 is amended as follows:

“b) He/she must have at least 04 years' experience of working in services departments in the field of finance, banking, and/or insurance or in finance, accounting and/or investment departments of other enterprises;”

g) Clause 4 of Article 11 is amended as follows:

“4. Requirements pertaining to shareholders and contributing members:

Structure of shareholders and conditions to be satisfied by contributing members shall comply with Clauses 5, 6, 8 and 10 Article 71 of the Decree No.58/2012/ND-CP and regulations on foreign contractors in Clauses 21 and 24 Article 1 of the Decree No. 60/2015/ND-CP. In the cases where the fund management company is structured in the form of a single member limited liability company, the owner must be a commercial bank, an insurer, a securities company or a foreign organization satisfying the requirements prescribed in Article 4 of this Decree.”

2. Some Articles of the Government’s Decree No. 86/2016/ND-CP dated July 01, 2016 are repealed as follows:

a) Point dd of Clause 3, and Point a Clause 4 of Article 5 are repealed;

b) Points c and d Clause 1 of Article 8 are repealed;

c) Point d Clause 3 of Article 11 is repealed;

d) Clause 1 of Article 12 is repealed;

dd) Point c of Clause 1, and Point a Clause 2 of Article 13 are repealed;

e) Points a and b Clause 3 of Article 14 are repealed;

g) Clause 4 of Article 17 is repealed;

h) Clauses 3 and 4 of Article 18 are repealed;

i) Article 19 is repealed.

Chapter VI

IMPLEMENTATION CLAUSE

Article 15. Effect and transition clause

1. This Decree comes into force from the date on which it is signed.

2. Organizations and individuals that have submitted applications for the certificates of eligibility for business in the fields of accounting, auditing, valuation, lottery, prize-rewarding electronic games for foreigners, casino, betting, credit rating services and voluntary retirement fund management services; establishment licenses and licenses to operate in the fields of insurance business and securities trading; certificate of registration of representative office of the foreign securities-trading organization; for approval for margin trading or day trading by securities companies; for approval for provision of audit services for public interest entities by auditing firms before the effective date of this Decree but have not yet been granted the certificate/license or approval are entitled to apply business conditions mentioned in this Decree.

3. Ministers, heads of ministerial agencies, heads of Governmental agencies and Presidents of People’s Committees of provinces and central-affiliated cities shall provide guidelines and implement this Decree./.