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New Policies Effected in Aug 2020 in Vietnam – Legal Update

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Vehicles used for transportation business to be granted yellow license plates; Cars switch owners without transfer papers; Application of the new pedagogical college diploma template; Amendment of conditions for establishment of an industry cluster; Free installation of e-TAG for first time users until the end of December 31, 2021 are New Policies Effected in Aug 2020 – Legal Update

License plates and vehicle registration certificates to be surrender on selling cars

According to the provisions of Clause 3, Article 6, Circular 58 of the Ministry of Public Security, within 7 days from the date of finishing the registration papers for vehicle ownership transfer to organizations and individuals in other provinces or centrally run cities, owners’ vehicles shall, in person or by authorizing individuals and service organizations, surrender their vehicle registration certificates and license plates to the vehicle registration agency.

Vehicles used for transportation business to be granted yellow license plates

According to the provisions of Point dd, Clause 6, Article 25 of Circular 58/2020/TT-BCA, license plates of vehicles for transportation business will have a yellow background with black letters and numbers. The Circular will take effect from August 1.

Furthermore, company vehicles currently operating before the effective date of Circular 58 will need switch to yellow license plates before December 31, 2021.

Cars can switch owners without transfer papers

In Circular 58, in case the vehicle has transferred its ownership through multiple people, owners only need to specify the process of purchase, selling and delivery and guarantee the vehicle’s origin, followed by the submission of following documents:

  • Certificate of vehicle registration, license plate number;
  • Ownership transfer certificate of the person titled in the Vehicle Registration Certificate and the end seller’s vehicle ownership transfer certificate (if any).

As such, the new regulations do not require a sales license to transfer the car to multiple owners. However, this is only done until December 31, 2021.

Application of the new pedagogical college diploma template

The provision is prescribed in Circular 16/2020/TT-BGDDT on new pedagogical intermediate and college diploma templates, stated that the respective academic equivalence of Xuat sac, Gioi, Kha, Trung binh kha and Trung binh in Vietnamese will be written in English as “High Distinction”, “Distinction”, “Credit”, “Strong Pass”, “Pass”.

“Ms” and “Mr” honorifics before first and last name in English full name section will be omitted; Full name will only be written the same as Vietnamese section with diacritical marks removed.

In particular, the new diploma forms will unregister the type of academic training.

Amendment of conditions for establishment of an industry cluster

In Decree 66/2020/ND-CP, one of the conditions for establishing an industrial cluster is “Included in the industry cluster development plan under the approved provincial planning” (new regulation). Other requirements remain the same.

Free installation of e-TAG for first time users until the end of December 31, 2021

Decision 19/2020/QD-TTg on non-stop electronic toll collection will take effect from August 1, 2020.

Vehicle owners are not required to pay for e-tag in their first installation before December 31, 2021. From then onwards, vehicle owners must pay the cost of tag installation to service providers for toll collection.

All road vehicles, including toll-free road users such as ambulances and fire engines, must be installed with an e-TAG, which should be carried out at registry units and agents authorized by service providers.

Click here to request for detailed versions of the relevant Decrees and Circulars.

Truong Nguyen

Truong Nguyen

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