Legal Document Updates in English (16/2020)

FROM MAY 15, A LABOR GOING TO WORK IN KOREA UNDER THE EPS PROGRAM
MUST DEPOSIT VND 100 MILLION
 

The Decision No. 12/2020/QD-TTg on piloting deposit applicable to migrant workers to South Korea in accordance with the Employment Permit System of South Korea is issued on March 31, 2020 by the Prime Minister.

Accordingly, a worker before go to Korea under the Employment Permit System of South Korea (EPS Program) must make a deposit to ensure the performance of the contract and return home on time after the termination of the labor contract. The deposit amount is VND 100 million.

Within 35 days from the date on which the contract of sending the migrant worker to South Korea under the EPS Program is signed by the worker and the Center of

Overseas Labor, such worker shall make a deposit at the local Social Policy Bank where the worker registers permanent residence. A term of deposit is 05 years and 06 months.

However, the worker who is entitled to borrow capital from the Vietnam Bank for Social Policies to work abroad and has the demand for a loan shall be lent up to VND 100 million at the Vietnam Bank for Social Policies to make a deposit without making loan guarantees.

This Decision takes effect from May 15, 2020, until the Law on Vietnamese guest workers under contract (amended) takes effect.

APPROVAL OF THE SCHEME ON APPLICATION OF FINANCIAL REPORTING STANDARDS IN VIETNAM
 

On March 16, 2020, the Minister of Finance issues the Decision No. 345/QD-BTC on approval of the Scheme on application of financial reporting standards in Vietnam.

Accordingly, specific objectives applied to financial reporting standards in Vietnam consist of 02 contents as follows: To develop measures, roadmap and publicize, provide assistance on application of international financial reporting standards (IFRS) in Vietnam; To issue anew and organize the implementation of Vietnamese financial reporting standards (VFRS).

To be specific, in the preparation phase (2020-2021), by December, 2020, to establish the Boards of translation, examination and completion the IFRS transcript into Vietnamese. By November 15, 2020, the Ministry of Finance shall develop, issue or request competent

authorities to issue appropriate legislative documents to publicize the Vietnamese translation.

Next, in voluntary application phase, foreign-invested enterprise with 100% foreign direct invest capital which are subsidiaries of parent companies located overseas having demand of and sufficient resource shall inform the Ministry of Finance before voluntarily apply IFRS to prepare separate financial statements...

Finally, in compulsory application phase (after 2025), enterprise subjected to the application of IFRS must simultaneously apply all effective IFRS according to the international accounting standards board (IASB) at the same time. Enterprises shall voluntarily or compulsorily apply IFRS consistently throughout the financial year.

This Decision takes effect from the signing date.

TIME FOR APPROVING THE RECEIPT OF INTERNATIONAL EMERGENCY AID FOR RELIEF IS 3 DAYS
 

The Government promulgates the Decree No. 50/2020/ND-CP on providing provisions on receipt, management and use of international emergency aid for relief and remediation of natural disaster consequences n April 20, 2020.

Accordingly, the time for consideration and approval of decision on receiving the international emergency aid for relief is not exceeding 03 days, from the date on which the sufficient and valid dossier is received by the managing agency. A dossier submitted to the authority competent to approve the receipt of international emergency aid for relief

comprises: A written proposal; The donor's written notice or agreement and the list of aid amounts (enclosed with the Vietnamese translation); Other documents related to the aid amount.

The aid recipient may open an account at the State Treasury where conducting transactions for receipt and use of aid amounts in cash (according to the aid agreement or the management requirements). For aid amounts that do not belong to the State budget revenues, the aid recipient may open an account at the Vietnamese commercial bank.

This Decree takes effect on June 15, 2020.

THE ACTION PROGRAM FOR IMPLEMENTATION OF THE FOURTH INDUSTRIAL REVOLUTION
 

On April 17, 2020, the Government promulgates the Resolution No. 50/NQ-CP on the Action Program of the Government on implementation of the Resolution No. 52-NQ-TW dated September 27, 2019 of the Politburo on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution.

To achieve objectives stipulated in the Resolution No. 52-NQ/TW, the ministries, ministerial agencies, Government attached agencies, provinces and centrally run cities’ People's Committees shall concretize and organize the implementation of tasks in addition to the regular tasks as follows:

Foremost, to building flexible mechanisms, suitable with the digital business environment, creating a favorable space for innovation, to issue a controlled experimental institutional framework for pilot implementation then replication of newly-invented technologies, products, services and business models during the Fourth Industrial Revolution with high potential risk as soon as possible.

In addition, Ministry of Planning and Investment shall assume the prime charge and coordinate with the Ministry of Finance and other relevant ministries and agencies to ensure business freedom for businesses in industries not prohibited by law.  And at the same time, the Ministry of Information and Communications shall deploy high quality broadband nationwide to all villages, schools, hospitals, community centers, ensuring the continuity and redundancy.

In addition, the Government also assigns the Ministry of Health to focus on research and development of vaccine production technology; research, master and apply advanced biotechnology in the field of medicine and pharmacy; application of modern technology in prevention, medical examination and treatment; promote the application of information technology in health; strongly promote cashless payment in health facilities...

THE GOVERNMENT DIRECTS TO REDUCE ELECTRICITY PRICE
 

On April 09, 2020, the Government issues the Resolution No. 41/NQ-CP on the Government’s regular meeting on March 2020, stating some solutions for socio-economic development during the COVID-19 pandemic.

Regarding solutions to promote social housing development, the Government requests to supplement an additional VND 1,000 billion for Vietnam Bank for Social Policies as stimulated under Resolution No. 71/2018/QH14 and add VND 2,000 billion to subsidize interest rates for 04 commercial banks appointed by the State Bank of Viet Nam to provide support for social housing lending.

Regarding the draft Resolution on measures to support people facing difficulties due to the COVID-19 pandemic,

the Government requires to ensure the following principles: Supporting those whose income had significantly reduced, those losing jobs, or having their employment stopped, and unable to sustain a minimum living standard due to direct impact of the COVID-19 pandemic and avoid stretching support to all subjects.

The Government also requests the Ministry of Finance to reduce electricity price and electricity expenses for electricity users to remove difficulties in the context of the COVID-19 pandemic following the proposal of the Ministry of Industry and Trade.

This Resolution takes effect on the signing date.

WORKERS ON REPAIR OF ELECTRIC EQUIPMENT ARE NOT REQUIRED TO POSSESS ELECTRICITY SAFETY CARD
 

The Government promulgates the Decree No. 51/2020/ND-CP on amending and supplementing a number of Articles of the Decree No. 14/2014/ND-CP dated February 26, 2014 of the Government on detailing the implementation of the Electricity Law regarding electricity safety on April 21, 2020.

Accordingly, workers performing the construction, operation, testing and repair of transmission lines or electric equipment shall be trained and examined in electricity safety, workers are not required to possess the electricity safety cards as before.  The employee shall take responsibility to train and examine on electricity safety for the workers. For electricity operators and repairers in rural, mountainous and border areas and on islands, the grant of electricity cards must comply with the Electricity Law.

In addition, this Decree also amends on compensation and support for houses and works out of the safety protection corridors of high voltage electricity transmission line. To be specific, houses and works serving daily-life activities of households or individuals, which are situated outside the overhead electricity transmission line safety protection corridors but between two overhead electricity transmission lines of 500 kV shall be provided with the compensation or support and relocation as houses and works serving daily life activities of located within the safety protection corridors of high voltage power grid which to be cleared.

This Decree takes effect on the signing date.

TO APPROVE THE TASK OF FORMULATING THE NATIONAL MASTER PLAN ON PETROLEUM AND GAS SUPPLY
 

On April 10, 2020, the Prime Minister issues the Decision No. 503/QD-TTg on approving the task of formulating the national master plan on infrastructure facilities for petroleum and gas reserve and supply for the 2021-2030 period, with a vision toward 2050.

In accordance with this Decision, subjects of the master plan include: The system of infrastructure facilities and depots for storing crude oil, petroleum and gas serving production, and commercial and national reserve all over the country (excluding depots storing materials and products of oil refineries, gas processing plants and power plants under a single general investment project)…

In additional, the formulation of the national master plan on infrastructure facilities for petroleum and gas reserve and

supply covers strategic reserve (national reserve); and reserve serving production and commercial activities (supply, circulation and distribution); the national master plan on infrastructure facilities for petroleum and gas reserve and supply must focus on planning the pipeline system in a feasible manner while meeting  economic, technical and environmental criteria, ensuring sufficient, safe and continuous reserve and supply for the country’s socio-economic development.

The planning period must not exceed 24 months (counting from the time planning tasks are approved).

This Decision takes effect on the signing date.