Legal Document Updates in English (12/2020)

FROM APRIL 01, TO PILOT IMPLEMENTATION ON LABOR MANAGEMENT
AND WAGE IN 3 ECONOMIC GROUPS AND CORPORATION
 

On February 17, 2020, the Government issues the Decree No. 20/2020/ND-CP on pilot implementation of labor management, wage and bonus for a number of economic groups and state corporations.

Accordingly, to pilot implementation on labor management, wage and bonus in 2020 at Vietnam Posts and Telecommunications Group, the parent company - Vietnam Airlines Corporation - CTCP, the parent company - Viet Nam Air Traffic Management Corporation as follow:

The corporation shall formulate the plan of labor to serve as a basis of labor recruitment. In case the labor recruitment excesses the employment demand and lead to labor contract termination and causes increasing on corporation’s expense, the Director General shall have to bear

responsibility (including deduction of wage and bonus) before the Members’ Council or the Board of Directors of such corporation.

A remarkable provision is that the Government stipulate the basic wage of the Chairperson of the Members’ Council, the Board of Directors of type 1 corporation is VND 70 million per month; members of the Members’ Council, the Board of Directors, the head of the Supervisory Board is VND 60 million per month; Supervisors is VND 50 million per month. In which, type 1 corporation shall has equity capital of VND 10,000 billion or more; turnover is from VND 30,000 billion or more and has 10 focal management agencies or has the total number of employees of 5,000 or more people.

This Decree takes effect on April 01, 2020.

FROM MARCH 17, 2020, TO AMEND THE INTEREST OF DEPOSIT OF REQUIRED RESERVES
IN THE STATE BANK OF VIETNAM
 

The Governor of the State Bank of Vietnam issues the Decision No. 421/QD-NHNN on interest of deposit of required reserves and deposit of required reserves extension of credit institutions, foreign bank branches in the State Bank of Vietnam on March 16, 2020.

To be specific, the interest of deposit of required reserves and deposit of required reserves extension of credit institutions, foreign bank branches in the State Bank of Vietnam shall be stipulated as follow:

Firstly, for deposit of required reserves in Vietnam dong: 1.0% per annum.

Secondly, for deposit of required reserves in foreign currency: 0% per annum.

Thirdly, for deposit of required reserves extension in Vietnam dong: 0% per annum.

Fourthly, for deposit of required reserves extension in foreign currency: 0.05% per annum.

This Decision takes effect on March 17, 2020.

TO REDUCE THE MAXIMUM INTEREST RATE FOR TERM FROM 1-6 MONTHS TO 4.75%/YEAR
 

On March 16, 2020, the State Bank of Vietnam issues the Decisions No. 419/QD-NHNN on the maximum interest rate applicable to VND deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014.

Accordingly, the maximum interest rate applicable to VND deposits of entities (other than credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches as prescribed in the Circular No. 07/2014/TT-NHNN dated March 17, 2014 shall be as follows:

Firstly, the maximum interest rate applicable to call deposits and deposits with term of less than one month is 0.5% per annum (in the previous regulations is 0.8% per annum).

Next, the maximum interest rate applicable to deposits with term of one month to less than six months is 4.75% per annum (in the previous regulations is 5% per annum); for People’s credit funds and micro-financial institutions, the maximum interest rate applicable to deposits with term of one month to less than six months is 5.25% per annum (in the previous regulation is 5.5% per annum).

This Decision takes effect on March 17, 2020.

TO AMEND AND SUPPLEMENT THE CIRCULAR NO. 03/2019/TT-BCT ON THE RULE OF ORIGIN
 

The Ministry of Industry and Trade promulgates the Circular No. 06/2020/TT-BCT on amending and supplementing a number of Articles of the Circular No. 03/2019/TT-BCT dated January 22, 2019 of the Ministry of Industry and Trade on providing the rules of origin under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on March 24, 2020.

In accordance with this Circular, the Ministry of Industry and Trade supplements the regulations on De Minimis for textile and apparel goods in Article 29 of the Circular No. 03/2019/TT-BCT. Specifically, the Ministry explains the concept of "wholly formed" in Clause 3 as: the entire manufacturing process and finishing stage, from extruding

filament, strip, film or sheet, and including stretching filaments or films or sheets into strips, or the process of drawing fibers into yarns, or both, and finally acquiring a finished yarn or plied yarn.

In addition, the Ministry of Industry and Trade also replaces 04 Appendices attached to the Circular No. 03/2019/TT-BCT by Appendices attached to this Circular. The replaced Appendices include: Appendix III - De Minimis exceptions, Appendix IV - Vietnam’s CPTPP C/Os form, Appendix V - Form of supplementary declaration to Vietnam’s CPTPP C/Os and Appendix VI - Guidance for filling CPTPP C/Os and supplementary declarations.

This Circular takes effect on May 08, 2020.

ENTERPRISES WITH TRADED VALUE FROM VND 1,000 BILLION
BEFORE ECONOMIC CONCENTRATION MUST NOTIFY
 

On March 24, 2020, the Government promulgates the Decree No. 35/2020/ND-CP on detailing a number of Articles of the Competition Law.

Accordingly, enterprises that intend to participate in economic concentration shall have to notify the National Competition Committee before performing economic concentration if falling into one of the following cases:

Firstly, total assets on the Vietnamese market of an enterprise or a group of associated enterprises of which it is a member is VND 3,000 billion or more in the fiscal year preceding the year expected to perform economic concentration.

Secondly, total sales turnover or purchase turnover on the Vietnamese market of an enterprise or a group of

associated enterprises of which it is a member is VND 3,000 billion or more in the fiscal year preceding the year expected to perform economic concentration.

Thirdly, traded value of economic concentration is VND 1,000 billion or more.

Fourthly, combined share of an enterprise intending to participate in economic concentration in the relevant market is 20% or more in the fiscal year preceding the year expected to perform economic concentration.

Within 30 days after receiving a complete and valid dossier of notification of economic concentration, the National Competition Committee shall issue a notice of the result of preliminary review of economic concentration.

This Decree takes effect on May 15, 2020.

TO POSTPONE OPERATIONS OF SERVICE AND TRADING FACILITIES FROM MARCH 28 UNTIL APRIL 15
 

This noticeable content is prescribed in the Directive No. 15/CT-TTg dated March 27, 2020 on drastically implementing the prevention and control of the COVID-19 outbreak by the Prime Minister.

Accordingly, to effectively mitigate and control the widespread of COVID-19, take prompt and proactive precautions nationwide, best protect the people’s health and lives, the Prime Minister requests:

Firstly, the provincial People's Committees shall direct and apply the following measures to restrict crowded gatherings from 00:00 on March 28 to the end of April 15, 2020, includes: Suspend all meetings, events of over 20 people in one room; not gather over 10 people outside of offices, schools, and hospitals.

Besides, to stop all spiritual events and activities of over 20 people at religious, belief and worship establishments; suspend all cultural, sport and entertainment events in public areas.

Noticeably, to postpone operations of service and trading facilities in areas, except for those selling essential goods and services. Restrict the commuting of the citizens, especially those from pandemic provinces and cities to other localities.

The Prime Minister and the competent authorities shall consider punishing and strictly tackling with the heads of localities where the crowed gathering occurs.

TO SUSPEND VISA EXEMPTION FOR CITIZENS OF JAPAN, RUSSIA
AND BELARUS FROM 12:00 ON MARCH 21, 2020
 

On March 19, 2020, the Government issues the Resolution No. 33/NQ-CP on temporary suspension of unilateral visa exemption policy for citizens of Japan, Russia and Belarus.

Accordingly, to temporarily suspend the unilateral visa exemption policy for citizens of Japan, Russia and Belarus from 12:00 on March 21, 2020.

This Resolution takes effect on the signing date.