Legal Document Updates in English (44/2019)

TO INCREASE THE REGION-BASED MINIMUM WAGE FROM JANUARY 01, 2020

The Government promulgates the Decree No. 90/2019/ND-CP prescribing region-based minimum wage levels applicable to employees working under labor contracts on November 15, 2019.

Accordingly, region-based minimum wage levels applicable to employees working in enterprises are specified as follows:

First, VND 4,420,000/month for enterprises operating in localities of region I.

Second, VND 3,920,000/month for enterprises operating in localities of region II.

THE MAXIMUM INTEREST OF CALL RATE APPLICABLE
TO VIETNAM DONG LOAN BY PEOPLE’S CREDIT FUND IS 7%

On November 18, 2019, the State Bank of Vietnam issues the Decision No. 2416/QD-NHNN on maximum interest of call rate applicable to VND deposits at credit institutions, foreign bank branches for borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in the Circular 39/2016/TT-NHNN dated December 12, 2016.

TO FINE UP TO VND 300 MILLION WITH ORGANIZATION USING BANK CARD
TO CONDUCT TRANSACTIONS FOR FRAUDULENT PURPOSES

On November 14, 2019, the Government issues the Decree No. 88/2019/ND-CP on penalties for administrative violations against currency and banking legal regulations.

Accordingly, the fines of VND 100 million to 150 million shall be applied to individual violating any of the following activities:

First, using bank cards to conduct transactions for fraudulent purposes; clearing bank card transactions against the related laws.

Second, transferring devices that accept cards and QR Codes to other users; accepting card payments without a card payment contract; unauthorizedly using devices that accept cards, QR Codes.

4 SUSPICION ACTIONS RELATING TO MONEY LAUNDERING
AND TERRORISM FINANCING

On November 14, 2019, the Government issues the Decree No. 87/2019/ND-CP on amending and supplementing a number of Article of the Government’s Decree No. 116/2013/ND-CP of October 04, 2013, detailing a number of Articles of the Anti-Money Laundering Law.

Accordingly, organization, individual may be under suspicion of money laundering and terrorism financing if conduct one of the following actions:

First, to conduct or intend to conduct a transaction related to an organization or individual listed in relevant resolutions of the United Nations Security Council;

Second, to conduct or intend to conduct a transaction related to an organization or individual on a list of terrorist and terrorism-financing organizations and individuals made by

another international organization or country and warned by the State Bank of Vietnam;

Third, to conduct or intend to conduct a transaction related to an organization or individual that has been convicted for the crime of terrorism or terrorism financing in Vietnam;

Fourth, to conduct or intend to conduct a transaction related to a terrorist or terrorism-financing organization or individual known to the reporting subject through other information sources.

This Decree also amends regulations on freezing of account, sealing or seizure of properties; beneficial owners; transitions related to modern technology...

This Decree takes effect from the date of its signing.       

MUST VERIFY BENEFICIARIES FOR
INTERNATIONAL ELECTRONIC TRANSACTION VALUED FROM USD 1,000

On November 14, 2019, the State Bank of Vietnam issues the Circular No. 20/2019/TT-NHNN on amending and supplementing a number of Articles of the Circular No. 35/2013/TT-NHNN dated December 31, 2013 on guiding the implementation for a number of provisions on anti-money laundering.

Accordingly, this Circular supplements regulations that international electronic money transfer transactions worth USD 1,000 or more, reporting subjects serving beneficiaries shall verify and identify beneficiaries. During and after money transfer transactions, reporting subjects serving beneficiaries shall implement supervisory measures to detect international electronic money transfer transaction lacking information on originators of money transfer orders and beneficiaries.

FROM JANUARY 15, 2020, LEGAL CAPITAL LEVEL OF PEOPLE’S CREDIT FUND
IN WARD SHALL BE VND 1 BILLION

This is the new regulation issued by the Government in the Decree No. 86/2019/ND-CP on promulgating legal capital level of credit institutions, foreign bank branch on November 11, 2019.

Accordingly, the legal capital level of credit institutions, branch of a foreign bank shall remain as before: Cooperation bank shall have the legal capital level of VND 3,000 billion; Policy bank: VND 5,000 billion; Cooperation bank: VND 3,000 billion; Financial company: VND 500 billion; Financial leasing company: VND 150 billion; branch of a foreign bank: USD 15 million.

FROM 2020, TEMPORARILY SUSPENDING
FROM TEMPORARY IMPORT, RE-EXPORT 32 KINDS OF SCRAPS

The Ministry of Industry and Trade issues the Circular No. 27/2019/TT-BCT on November 15, 2019, prescribing the list of scraps subject to temporary suspension from temporary import, re-export and border-gate transfer.

Accordingly, to replace the list enclosed with the Circular No. 41/2018/TT-BCT by the list of scraps subject to temporary suspension from temporary import, re-export and border-gate transfer enclosed with this Circular. The new list regulates 05 additional kinds of scraps compare to the former list. To be specific:

First, self-adhesive sheets, films, foils, tapes, strips and other flat shapes, made of plastics, in rolls or not in rolls (heading 3919).

Second, other plates, sheets, films, sheets and strips, made of plastics, not porous and not reinforced, not surface-

SUPERVISION OF CONSTRUCTION WORKS
IN THE FORM PUBLIC - PRIVATE PARTNERSHIP

The Ministry of Construction issues the Circular No. 08/2019/TT-BXD on promulgating the supervision and quality management of construction works in the form public - private partnership on November 11, 2019.

Accordingly, for construction works not invested and constructed under BT contracts, the State competent authority shall have the following right on supervision and quality management of construction works:

First, to examine requirements on the capability and experience of the contractors in the bidding dossier or the dossier of requirements and to examine the contractor selection results for the bid packages of the project (if any) in the project implementation step, before the project enterprise approve in accordance with provisions in the project contract;

TO AMEND THE INTEREST DIFFERENCE COMPENSATION
FOR SOCIAL POLICY BANK

On November 14, 2019, the Prime Minister promulgates the Decision No. 33/2019/QD-TTg on amending and supplementing a number of Article of the Decision No. 33/2015/QD-TTg dated August 10, 2015 of the Prime Minister on assistance policy for housing to poor households under the poverty criteria for the period 2011 - 2015 (Poverty Assistance Program for Housing under the Decision No. 167/2008/QD-TTg stage 2).

As the new regulation, for localities with the rate of regulation of shared revenues to the central budget less than 50%; the central budget shall support 50%, the local budget shall ensure 50% of the interest rate difference subsidy for the Social Policy Bank.

For the remaining localities, the local budget ensures 50% of interest difference compensation between the average interest of bond guaranteed by the Government and mobilized by the Social Policy Bank with lending interest for program implementation and average actual loan outstanding balance (calculated by the numerical analysis method) of the program.

Besides, for localities which have not balanced their budget and Quang Ngai province, the central budget shall ensure 100% of interest difference compensation to the Social Policy Bank;

This Decision takes effect on December 31, 2019.