Since the government issued Decree No. 47/2011/ND-CP of 17 June 2011 detailing the implementation of a number of provisions of the Postal Law (“Decree 47”), the postal services sector in Vietnam has experienced strong growth. Postal service revenue has grown from approximately VND 4,135 billion in 2010 to VND 36,950 billion in 2020, contributing approximately 0.8% to the national GDP. However, after almost 10 years of implementation, some contents of Decree 47 have turned out to be inconsistent with reality and outdated by the trends of modern technological development. To address these issues and limitations, the government issued Decree No. 25/2022/ND-CP on April 12, 2022, amending and supplementing a number of articles of Decree 47 (“Decree 25”). On June 1, 2022, Executive Order 25 came into effect. Here are some highlights of Executive Order 25:
1. Elimination of requirements relating to the evaluation of investment projects
Decree 47 previously states that “foreign-invested projects with capital of less than VND 15 billion shall be appraised but not required to submit them to the Prime Minister for decision on investment policies” and “foreign-invested project with a capital of 15 billion Vietnam dong or more must be assessed before submitting it to the Prime Minister for decision on investment policies.” This regulation is however currently incompatible with the Investment Law 2020 and its documents. On the other hand, this regulation also discriminates between domestic investors and foreign investors when engaging in postal service business in Vietnam, therefore, Decree 25 removed this provision.
2. Abolition of the regulation on the financial conditions of the postal company
Decree 25 officially abolishes the requirement that companies must have a minimum capital of 02 billion VND in case of providing intra- and inter-provincial postal services and 05 billion VND in case of providing international postal services in because of the inefficiency of this regulation in terms of state management and barriers to market entry.
3 Supplementary regulations on the notification and publication of postal charges
Notification of postal service charges is not specified in Decree 47 but specified in Article 5 of Circular 02/2012/TT-
BTTTT of March 15, 2012 of the Ministry of Information and Communications on detailed regulations on the supply and use of postal services. Under these regulations, businesses must notify the Postal Licensing Agency of any changes to applicable Postal Service Charges and any new Postal Service Charges within 30 days of the effective date of the new rates. postal. Decree 25 updated and accomplished the regulation on the notification of postal service charges of Circular 02/2012/TT-BTTTT, in which the time limit for companies to notify changes in postal charges or apply new postal charges is reduced to 05 working days from the date of entry into force of the new postal taxes. Notifications can be made through the online information system. The postal agency is authorized to use the tariff information announced by the companies for the purposes of analysis, synthesis, forecasting of market price fluctuations and the constitution of a database and is responsible for monitoring, review and control the content of postal tax notices. in accordance with the law.
Decree 25 officially abolishes the requirement of a minimum capital of companies providing postal services and the requirements on the evaluation of investment projects
In addition to the notification obligations mentioned above, the company is also required to publish the postal service charges once it begins to offer the service in one or more forms, such as posting at service points, notification by writing, website posting, or other forms to facilitate observation and recognition of all entities. The rates for postal services published by companies must be consistent with those announced to the competent state postal services.
4. Removal of the requirement to analyze feasibility and socio-economic benefits in the application for a postal license
Previously, Decree 47 required companies applying for a postal license to provide an analysis of the feasibility and socio-economic benefits of the business plan included in the application file through the indicators of production, revenue, cost, number of employees, the tax to be paid to the State. budget, rate of return on investment in the next 3 years from the year of postal license application. However, through the practice of evaluating applications, the Ministry of Information and Communications has found that this requirement does little to prove the feasibility of the business plan, causing difficulties and costly damage to companies as well as ‘deep interference in the production and business activities of enterprises. Therefore, Decree 25 abolished this regulation to facilitate business participation in investment and trade in postal services.
5. Legal validity of the electronic document attesting to the acceptance of a postal item
In the context of technological postal services becoming increasingly popular in the market, Decree 25 has for the first time
added regulations on the recognition of the legal value of electronic documents attesting to the acceptance of postal items between postal companies and senders, which will have the same legal value as a written contract between the parties.
6. Postal license documents must be submitted online
Executive Order 25 requires that the postal license application and written confirmation of the notice of postal activities be submitted through the online public service system instead of a hard copy submitted in person or by post to the authority mail as before. The quantity of the application file to be filed is also reduced from 03 sets (01 set of original and 02 sets of copies) to 01 set. information to provide online and connected public services and in step with the current improvement of administrative procedures in all areas. The request for modification or addition of the file or the refusal of the file by the competent postal agency of the State must be formulated in writing via the online public service system. The results of processing procedures for granting postal licenses, written confirmations of notifications of postal activities are issued directly or through the public postal service.
7. Complete the regulations on promotion in the provision of postal services
Decree 25 stipulates that the maximum postage tax rebate shall not exceed 50% of the last postage tax made public. This is a completely new regulation of Decree 25. This regulation aims to avoid the situation where companies take advantage of the provisions of the General Promotion Law to carry out extended “promotions and discounts” for large groups of customers, leading to unfair competition with other postal companies.
8. Modification and addition of modifications to be notified
According to Executive Order 25, companies that have obtained a postal license and/or a written confirmation of the notice of postal activities must notify one of the following changes:
•Legal representative •Telephone number of the legal representative; •Company share capital •Postal service charges; •Postal service quality indices; • Model contract for the supply and use of postal services;
Rules of procedure on complaints and compensation for damages related to postal services provided by companies
Accordingly, Decree 25 has more clearly stipulated the changes that companies benefiting from a notice of written confirmation of postal activities must notify the licensing authority. In addition, compared to the previous regulations, Decree 25 removed the obligation to notify any change in the address of the registered office and in the contact telephone number of the company. the address of the registered office and the contact telephone number of the company.
9. Responsibility for the storage of information and documents of postal companies
Decree 25 supplements the postal company’s responsibility for document retention as follows: (i) archive contracts for the supply and use of postal services and documents confirming acceptance of postal items for at least 5 years ; (ii) To store sender and recipient information (i.e. full name, address and telephone number) and postal item information (i.e. contents of packages and packages, accompanying documents when transported in accordance with the provisions of the law) for at least 01 year from the date of receipt.