Legal Document Updates in English (32/2011)

FROM OCTOBER 01, REGION-BASED MINIMUM WAGE LEVELS ARE
FORMALLY INCREASED TO VND 2 MILLION/MONTH
 

The Government formally agreed to increase the region-based minimum wage levels more 48% (in region IV, increased more 68%) compared current regulations, applied to all domestic and foreign regions.

On August 22, 2011, the Government issued the Decree No. 70/2011/ND-CP providing for region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other organizations employing laborers, takes effect on on October 05, 2011 and replaces the Decree No. 107/2010/ND-CP; Decree No. 108/2010/ND-CP dated October 29, 2010.

The Decree provides for region-based minimum wage levels applied from October 01, 2011 to the end of December 31, 2012 as follows: the level of VND 2.000.000/month applies to enterprises operating in localities of region I; the level of VND 1.780.000/month applies to enterprises operating in localities of region II; the level of VND 1.550.000/month applies to enterprises operating in localities of region III; the level of VND 1.400.000/month applies to enterprises operating in localities of region IV.

The region-based minimum wage levels are the minimum wage levels for enterprises and laborers to take as a basis for negotiating salaries paid to laborers and they are applied for calculating wage levels in wage scales and tables, wage-based allowances and wage levels to be indicated in labor contracts, and implementing other regimes they adopt and issue according to their competence prescribed by the labor law.

The lowest wage levels paid to laborers who have attended vocational training (including training conducted by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels of this Decree; and encourage enterprises to pay wages to laborers higher than minimum wage levels.

ENVIRONMENTAL PROTECTION TAX SHALL BE PAID ONLY ONCE
FOR GOODS PRODUCED OR IMPORTED
 

On August 08, 2011, the Government issued the Decree No. 67/2011/ND-CP detailing and guiding the implementation of a number of articles of Law on environmental protection tax.

The Government regulates taxable subjects, tax bases, tax declaration, tax calculation, tax payment and tax refund for environmental protection tax. Among them, it is necessary to make Taxable subjects clear which shall comply with Article 3 of the Law on environmental protection tax.

What is most important in this Decree is that environmental protection tax shall be paid only once for goods produced or imported. In case the exported goods has been paid for environmental protection tax, but re-imported into Vietnam, such re-imported goods shall not be paid environmental protection tax upon importation. For the goods which are produced for selling, exchanging, internal consumption, gifting, the tax declaration, tax calculation, and tax payment are conducted monthly. For imported goods, entrusted imports, the tax declaration, tax calculation, and tax payment are conducted by each time of arising.

The gasoline, oil, grease are the fossil-original gasoline, oil, grease. For fuel mixtures containing biodiesel and fossil-original gasoline, oil, grease, the environmental protection tax is applied only for the part of fossil-original gasoline, oil, grease. The Hydrogen-chlorofluorocarbon liquid (denoted as HCFC) is the gas

 as solvent used in refrigeration equipment and in semiconductor industry. The plastic bags subject to tax payment are bags, thin plastic packaging made from single plastic membrane HDPE (high density polyethylene resin), LDPE (Low density polyethylene) or LLDPE (Linear low density polyethylene resin), except for packaging pre-packaged goods and bags that meet the criteria of environmental friendliness in accordance with provisions of the Ministry of Natural Resources and Environment.

Hubs companies of gasoline and oil shall declare and pay environmental protection taxes and the state budget for the delivered, sold gasoline and oil  at the local where the value added tax is declared and paid. Declaration, calculation and payment for environmental protection tax for coal shall follow the principles: coal for domestic consumption must be declared and paid environmental protection tax; coal for export is not subject to environmental protection tax.

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TO 2020, BUILDING MORE 6.000 NATIONAL STANDARDS
 

On July 01, 2011, the Prime Minister issued the Decision No. 1041/QD-TTg approving the project on elaboration and application of standards and technical regulations under the National Program on improvement of productivity and quality of products and goods of Vietnamese enterprises through 2020.

Accordingly, objectives of the project for the 2011-2015 period 4.0000 new national standards (TCVNs) will be elaborated for key products and goods of the national economy, of which 80% will be harmonious with international standards, reaching the rate of 45% of TCVNs of the national standard system harmonious with international or regional standards; all products and goods which are likely to be unsafe (products and goods of group 2) will be managed under national technical regulations (QCVNs); 5.000 enterprises will be guided in applying TCVNs and QCVNs, and in elaborating and applying sets of basic standards.
To plan and build a network of conformity assessment organizations (including accrediting, testing, inspecting and assessing organizations) up to international standards and accredited within the Association of Southeast Asian Nations (ASEAN) to meet the needs for assessment of products and goods of group 2 and key products and goods;to conclude and implement agreements on mutual recognition of conformity assessment results with foreign countries, giving priority to exported products and goods of high value;

Objectives of the project for the 2016-2020 period: 2.000 new TCVNs will be elaborated for key products and goods of the national economy, of which 90% will be harmonious with international standards, reaching the rate of 60% of TCVNs of the national standard system harmonious with international or regional standards; to complete the system of QCVNs for products and goods of group 2; 5.000 enterprises will be guided in applying TCVNs and QCVNs, and in elaborating and applying sets of basic standards;

To expand the network of conformity assessment organizations up to international standards and accredited by the European Union (EU), the Asia-Pacific Economic Cooperation Forum (APEC) and other economic regions; all laboratories for testing quality of key products and goods will reach the world level; to conclude and implement agreements on mutual recognition of conformity assessment results with foreign countries, giving priority to exported or imported products and goods which Vietnam has no condition for assessing their conformity;

SPECIFIC OBJECTIVES FOR 2020: REDUCE NUMBER OF
DRUG ADDICTS BY AT LEAST 30%- 40%
 

The Prime Minister issued the Decision No. 1001/QD-TTg dated June 27, 2011 approving the national strategy for drug prevention, combat and control in Vietnam through 2020, and orientations toward 2030

Drug prevention, combat and control is a central task, which is both urgent and regular, continuous and permanent, requiring persistence, endurance, determination and close and synchronous coordination among all levels, sectors and socio-political organizations. Drug prevention, combat and control contents must be integrated in the implementation of related national programs and strategies. Investment in drug prevention, combat and control is investment in sustainable development of the country. The State shall mobilize resources for drug prevention, combat and control work suitable to the country's capability and socioeconomic conditions in each period, while calling for contributions from the community and international financial assistance.

Specific objectives for 2020: to reduce the current number of drug addicts by at least 30%- 40%; to strive to achieve 70% of communes, wards and residential

quarters and 90% of agencies, organizations, units, enterprises and schools free of drug evil; 100% of drug addicts will be detected and managed; 90% of drug addicts will be treated, detoxified and provided with vocational training; 100% of drug addicts in prisons, educational institutions and reformatories will be detoxified: to reduce the current rate of re-addiction by 10%-15%; To increase the percentage of detected and seized drugs in border areas to over 30%, of the total quantity of drugs seized nationwide; to basically abolish all illegal drug trafficking, transportation, storage and use organizations in the country; To closely manage the lawful trading of precursors, habit-forming substances and psychotropics; to prevent the illegal manufacture of synthetic drugs in Vietnam.

THE PRIME MINISTER APPOINTS STATE BUDGET ESTIMATE FOR 2012
 

On June 15, 2011, the Prime Minister issued the Directive No. 922/CT-TTg on the elaboration of the socioeconomic development plan and state budget estimate for 2012 In order to overcome difficulties and challenges to control inflation, stabilize the macro-economy and assure social security and sustainable development,

Accordingly, the target for 2012 is to concentrate on removing difficulties and problems to promote production and business activities; further mobilizing and effectively utilizing sources of investment capital. Striving to achieve an economic growth rate of around 6.5%; Continuing to implement tightened fiscal policies: closely controlling and making more transparent state budget expenditures and public investments, especially investments from the state budget and government bonds and investments of state enterprises; reducing state budget deficits and keeping government debts, public debts and foreign national debts at safe levels, ensuring national financial security;The Prime Minister also directs ministries, industries and localities to continue to implement tight, prudent and flexible monetary policies, harmoniously combining monetary and fiscal policies to control inflation, stabilize the value of Vietnam dong and incrementally increase foreign exchange reserves. To enhance management of operations of the banking system and the foreign exchange and gold markets, prevent risks, reduce bad debts and ensure liquidity and safety of the system of credit institutions; overcoming irrationalities in profit and income in monetary business and banking services; encouraging and attractingsources of money from overseas into the country;

Education and training sector also needs to improve the quality of education and training at all levels; effectively combine the expansion of the scale and improvement of the quality of vocational training in order to develop trained laborers in both quantity and quality; developing forms of vocational training for rural labor. Implementing the administrative reform program during 2011-2020, focusing on simplifying administrative procedures to be favorable to enterprises and citizens; stepping up application of information technology on operations of state agencies along with renovating the administration methods of the administrative system, creating publicity and transparency in state management work;

Also in this Directive The 2012 state budget revenue estimate must ensure state budget revenues accounting for around 24% of GDP, with tax and charge revenues making up for around 23% of GDP. Estimates of domestic revenues  will increase at least 16-18% on average over the figures estimated for 2011.

THE MINISTRY OF NATIONAL DEFENSE AMENDS, SUPPLEMENTS
REGULATION ON LAND BORDER GATES
 

On June 30, 2011, The Ministry of National Defense issued the Circular No. 90/2011/TT-BQP amending and supplementing the National Defense Ministry's Circular No. 181/2005/TT-BQP of November 17, 2005, guiding the Government's Decree No. 32/2005/ND-CP of March 14, 2005, on the regulation on land border gates, and Circular No. 05/2010/TT-BQP of January 18, 2010, guiding the Government's Decree No. 50/2008/ND-CP of April 21, 2008, on management and protection of security and order at border gates and seaports.

This Circular regulates clearly the case that for a citizen of a third country: Upon entry or exit through an international border gate, he/ she must have a valid passport or valid substitute paper (an overseas Vietnamese who has no passport or valid substitute paper must have a valid exit/entry paper granted by a competent foreign authority, provided that the form of such paper has been officially notified to Vietnam via diplomatic channel) and visa, except for cases of visa exemption, enclosed with the visa exemption paper granted by the Vietnamese diplomatic mission in the country in which the citizen resides.

In the case that vehicles and goods on exit, entry, export, import or transit through border gales under Articles 8 and 9 of Decree No. 32/2005/ND-CP must be

accompanied with sufficient lawful papers and subject to principles and procedures provided by the customs law and other relevant laws of Vietnam and treaties to which the Socialist Republic of Vietnam is a contracting part).

Goods, which are traded across the borders and fully satisfy the conditions specified at Point 3. Section II of this Circular and the Government's regulations, on management of cross-border goods trading with bordering countries, may be exported or imported through bolder gates, regardless of whether they are products of border or inland localities. In special cases, the Minister of Industry and Trade shall, at the request of provincial-level administrations or governments of neighboring countries, reach agreement with the Minister of Finance to permit customs clearance for goods of a third country through a principal or auxiliary border gate.

Besides, the Circular also amends and supplements some articles of the Circular No. 05/2010/TT-BQP dated January 18, 2011 on management and protection of security and order at border gates and seaports.

FROM SEPTEMBER 23, CONTROL STRICTLY SOME TOXIC CHEMICALS
IN THE ELECTRONIC, ELECTRICAL PRODUCTS
 

Permissible content limitation of some toxic chemicals such as Pb, Hg, Cr6+, PBB, PBDE in some electronic, electrical products circulated in Vietnam market cannot excess 0,1% volume.

This is new regulations of the Ministry of Industry and Trade issued in the Circular No. 30/2011/TT-BCT dated August 10, 2011 stipulating temporarily the permissible content limitation of some toxic chemicals in the electronic, electrical products.

According to this Circular, Electrical, electronic products circulated on the market of Vietnam must be ensured the permissible content limitation of some toxic chemicals including the following product groups: Big size appliances; Small size appliances; Information technology and communications equipment; Consumption devices; Lighting Equipment; Electrical, electronic tools (except for the big, fixed tools for industrial use); Toys, equipment of entertainment, and sports; Automatic measuring instruments.

Contents of some toxic chemicals such as Pb, Hg, Cr6+, PBB, PBDE in some electronic, electrical products circulated in Vietnam market cannot excess 0,1% volume. Cd in particular, the permissible content limitation cannot excess 0.01 % volume.

Organizations and individuals manufacturing or importing electrical, electronic products disclose information generally in the direction of: electrical, electronic products manufactured, imported by organizations or individuals complied with the provisions of this Circular on permissible content limitation of the toxic substances.

The disclosure of information is made ​​by one of the following forms: Posting on the Website of organizations and individuals; Information in the instruction manual may be in the form of instruction manual or the instruction paper accompanying products; Information in the electronic form (CD, ...); Being printed directly on the products or packaging. In all cases, organizations and individuals manufacturing or importing electrical, electronic products shall be self-responsibility before the law for the accuracy of the information.