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Legal answers
List of products subject to inspection of quality upon import
Answered

On June 3, 2021, the Minister of Labor, War Invalids, and Social Affairs issued Circular No. 01/2021/TT-BLDTBXH stipulating the list of potentially unsafe products and goods under management responsibility of the Ministry of Labor, War Invalids and Social Affairs. In which, the Circular stipulates the list of products subject to an inspection of quality upon import, including:
– Head protection equipment for workers: Industrial safety helmets;
– Eye and face protection equipment for workers: Welding goggles and welding shields providing protection from flying objects and ultraviolet radiation;
– Respiratory protective equipment for workers: Full-face and haft-face respirator masks for particle filtering; Full-face and haft-face respirator masks for filtering toxic gas (excluding medical face masks);
– Hand and arm protective equipment for workers: Protective work gloves protecting against cuts, punctures, and stabs, and insulating gloves (excluding medical gloves, medical examination gloves);
– Foot and leg protective equipment for workers: Shoes protecting against punctures, stabs, cuts, hits, and chemicals; insulating boots;
– Safety belts and personal fall-arrest systems for workers;
– Clothing to protect against heat and flame for workers;
– Lifts and their safety components, including Door locks and cabin door locks; Safety gear; Lift machine braking system; Overspeed governor; Shock absorbers; Shut-off valves/check valves of hydraulic lifts;
– Escalators and passenger conveyors; safety components, including Stopping and controlling braking systems for escalators or conveyors; Safety gear system; Traction machines (motors, gearboxes);
– Cylinders and containers for compressed gas with nominal working pressure exceeding 0.7 bar (excluding cylinders for petroleum and liquefied petroleum gas (LPG));
– Electric pulleys and hoists;
– Hand pulleys and hoists with a lifting load of 1.000 kg or more;
– Lift tables and elevating work platforms for lifting people (excluding suspended work platforms used in construction).
For products on the list above, they will have to ensure the quality standards and regulations when imported and approved by the Department of Occupational Safety; The Department of Labor, War Invalids and Social Affairs inspects the quality of imported goods in accordance with the law.
This Circular takes effect from July 18, 2021.
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The latest direction of the Government to promote the formation of the vaccine manufacturing industry in Vietnam
Answered

On June 29, 2021, the Government issued Resolution No. 63/NQ-CP on the main tasks and solutions to promote economic growth, disbursement of public investment, and sustainable export during the final months of 2021 and the beginning months of 2022 (“Resolution 63”).
One of the highlights and notable points in Resolution 63 is the recognition of specific tasks and solutions to promote the formation of the vaccine manufacturing industry in Vietnam. This is one of the key tasks and solutions that are put on the top as stipulated by the Government in Resolution 63. Accordingly, the Government assigns specific tasks to the Ministry of Health to assume the prime responsibility for, and coordinate with relevant agencies and localities:
– Research and propose the establishment of a center for technology transfer, research, and production of vaccines up to international standards;
– Develop specific support policies to attract organizations and enterprises to invest in, research, and receive vaccine production technology, towards the formation of a vaccine manufacturing industry.
Prior to the issuance of Resolution 63, in Notice No. 160/TB-VPCP of the Government Office regarding the conclusions of Prime Minister Pham Minh Chinh at the meeting with scientists, business units, etc. In the research and production of vaccines against Covid-19, Prime Minister Pham Minh Chinh also emphasized the tasks and solutions in the coming time:
– Focus on promptly removing difficulties and obstacles related to legislation, mechanisms, and policies in the spirit of sticking to reality, creating the most favorable conditions for research, technology transfer, and vaccine production;
– The Ministry of Health, the state management agency in charge of vaccines, directs the implementation of tasks: technology transfer, production, and organization of a vaccination campaign against Covid-19; establish a national vaccine research and production center up to international standards; propose to the competent authorities the problems that remain to be resolved in a timely manner. Coordinate with relevant ministries and branches to forecast the situation, balance supply, and demand appropriately to avoid the situation of “when there is a shortage, when there is excess, at the wrong time” to regulate macro policies promptly and effectively.
Passing Resolution 63: The Government has uniformly directed all levels and sectors to focus on drastically implementing key tasks and solutions to promote the formation of the vaccine manufacturing industry, besides promoting economic growth, public investment disbursement, and sustainable exports during the final months of 2021 and the beginning months of 2022.
Resolution 63 takes effect from June 29, 2021.
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Guidelines for application of APA mechanism with businesses with link transactions
Answered

On June 18, 2021, the Ministry of Finance issued Circular 45/2021/TT-BTC guiding the application of the prior agreement mechanism on the tax calculation method (APA) in tax administration for enterprises associated transactions. Accordingly, regulations on transactions proposed to apply APA are as follows:
– Transactions proposed to apply APA are related-party transactions specified in Clause 2, Article 1 of Decree 132/2020/ND-CP of the Government, specifically:
• Transactions as purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposal of commodities, provision of services;
• Transactions as financial borrowing, lending, financial services, financial guarantee, and other financial instruments;
• Transactions as purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposition of tangible assets, intangible assets; and
• Agreements on purchase, sale, and sharing of resources such as assets, capital, labor, and sharing of costs between related parties.
Exception: Business transactions in goods and services subject to price adjustments that the State makes under laws on prices.
– Transactions proposed to apply APA must simultaneously meet the following conditions:
• Actual transactions have arisen in the taxpayer’s production and business activities and will continue to take place during the APA application period.
• The transaction has a basis for determining the nature of the transaction, which determines the tax liability and a basis for analysis, comparison, and selection of independent comparables according to the provisions of Articles 6 and 7 of Decree No. 132/2020/ND-CP, based on information and data in compliance with the provisions of Point b, Clause 6, Article 42 of the Law on Tax Administration.
• The transaction is not subject to tax disputes or complaints.
• Transactions are made transparently, not for the purpose of evading, avoiding taxes, or take advantage of Tax Agreements.
Circular 45 takes effect from August 3, 2021, and replaces Circular 201/2013/TT-BTC dated December 20, 2013.
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Postpone payment of trade union fee for Enterprises affected by Covid – 19
Answered

On June 22, 2021, the Vietnam General Confederation of Labor issued Guidance No. 13/HD-LDLD guiding some contents related to payment of trade union fee dues affected by the Covid – 19 pandemic (“Guidance No.13”). Accordingly, allow Enterprises affected by Covid – 19 to postpone payment of trade union fee, specifically as follows:

  • Subjects of application: Enterprises with the number of employees participating in social insurance must temporarily quit by 50% or more of the total number of employees who are subjects of compulsory social insurance before being affected by the Covid-19 pandemic.
  • The time limit for postponing the payment of trade union fee: shall be considered and decided by the Standing Committee of the superior trade union, up to December 31, 2021.
  • At the end of the above time limit, the enterprise is responsible for fully paying the temporarily postponed trade union fee to the superior trade union according to regulations.
  • Application dossier and order of implementation in case of postponed payment of trade union fee are as follows:

+          Enterprises making the application dossiers include:

(1)       A written request for postponement of payment of trade union fee, made according to the form in Appendix I to Guidance No.13;

(2)       The list of reduced employees in social insurance contributions, made according to the form in Appendix II to Guidance No.13;

(3)       A copy of the written certification of the social insurance or specialized labor management agency about the labor change situation at the enterprise.

+          The order of execution:

(1)       The enterprise submits the application dossier to the direct superior trade union agency where the enterprise registers its business office;

(2)       Within 15 working days from the date of receiving the enterprise’s application dossier, the direct superior trade union is responsible for checking the application dossier and comparing it with the data of employees participating in social insurance to consider and settle the postponed payment of trade union fee and take responsibility for this decision; if not resolved, reply in writing and clearly state the reason for the enterprise to know.

Guidance No.13 takes effect from the date of issue.

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Legal News No. 06/2021
Answered

Conditions for licensing of employment service enterprises
Answered

On March 19, 2021, The Government promulgates Decree 23/2021/ND-CP guiding Clause 3, Article 37, and Article 39 of the Employment Law on employment service centers and employment service enterprises.

Accordingly, this Decree details the conditions for licensing of employment service enterprises, specifically as follows:

  • Having premises for an employment service business’s main office or branches to organize employment service activities which are owned or rented permanently by the business under a contract having the term of 3 years (36 months) or more.
  • The business has already pledged 300,000,000 dongs (Three hundred million dongs) as a security deposit.
  • The business’s legal representative must meet the following conditions:
  • He/she is the business’s executive under regulations of the Law on Enterprises;
  • He/she is not falling into the following situations: prosecuted for criminal liability; detained; serving imprisonment penalties; serving administrative penalties at compulsory detoxification establishments or compulsory education centers; fleeing from his/her place of residence; having restricted or lost capacity of performing civil acts; facing cognitive difficulties, problems in awareness and behavior control; banned by courts from holding certain posts or practicing certain occupations or doing certain jobs relating to employment services;
  • Having a university degree or higher qualification or having directly involved in professional or administrative tasks related to employment services, or the rendering of employment services, for 02 years (24 months) or more within 05 consecutive years before applying for the license.

So, compared with the previous regulations, this Decree has supplemented regulations on conditions for legal representatives of employment service enterprises. This new regulation has tightened the management, responsibility, and efficiency of employment service enterprises.

This Decree takes effect from June 1, 2021.

Cases exempted from foreign diploma recognition procedures in Vietnam
Answered

In the context of current international integration, the need to employ foreign workers (or Vietnamese who study at training programs of foreign educational institutions) is becoming more and more common in enterprises in Vietnam. This leads to the need for foreign diploma recognition.

On April 15, 2021, the Ministry of Education and Training issued Circular 13/2021/TT-BGDDT on conditions, order, procedures, and competence to recognize diplomas issued by foreign educational institutions for use in Vietnam. (“Circular 13”), Circular 13 has replaced Decision No. 77/2007/QD-BGDĐT; Circular No. 26/2013/TT-BGDDT. One of the important contents of Circular 13 is the provision of exemption from diploma recognition procedures. As follows:

  1. What is the exemption from diploma recognition procedures?

Diplomas issued by foreign educational institutions to learners are recognized for use in Vietnam without having to go through the diploma recognition procedures. In which, “Diploma” is understood to include: secondary school diploma, high school diploma, certificate of completion of general education program, bachelor degree, master degree, Ph.D. diploma, and equivalent qualifications.

  1. Subjects are exempt from diploma recognition procedures?
  • Diplomas of foreign educational institutions within the scope of application of agreements, agreements on degree equivalence or mutual recognition of diplomas or international treaties related to diplomas to which the Socialist Republic of Vietnam applies or signed by the Vietnamese Socialist Association announced by the Ministry of Education and Training;
  • Diplomas issued by foreign educational institutions to learners who are sent by the Ministry of Education and Training to study with the State budget;
  • Diplomas granted by foreign educational institutions to learners under joint training programs with foreign countries in Vietnam have been approved by competent authorities from July 1, 2019.
  1. Requirements for subjects who are exempt from diploma recognition procedures?
  • The title of the degree is consistent with the regulations on diplomas of the Vietnamese national education system;
  • Training time and enrollment conditions are consistent with the regulations of the Ministry of Education and Training;
  • Face-to-face training or face-to-face training combined with online training that the online teaching time does not exceed 30% of the total duration of the program.
  1. Other Note:

The exemption from diploma recognition procedures does not include certification of diplomas; agencies, organizations, or employers are responsible for verifying diplomas in case of necessity.

Circular 13 takes effect from June 1, 2021.

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Procedures for temporary import of automobile and motorcycle
Answered

On April 19th, 2021, the Ministry of Finance issued Circular No. 27/2021/TT-BTC amending and supplementing a number of articles in Circular No. Circular No. 19/2014/TT-BTC dated February 11th, 2014 of the Minister of Finance stipulating procedures for temporary import, re-export, destruction, and transfer of automobiles, two-wheeled motorbikes of who are subject to privileges and immunities in Vietnam.

Accordingly, the procedures for temporary import of the latest automobiles and motorbikes are carried out as follows:

  • Implemented at the border gate Customs Sub-Department
  • The Sub-Department of Customs where the procedures for temporary import are carried out is responsible for checking and comparing information on temporary import papers and customs declarations with actual goods. In case the imported goods are different from the contents on the temporary import paper, the adjustment shall be made; the time limit for adjustment shall not exceed 05 working days from the date on which the Customs Department of the province or city receives all information and dossiers.
  • The Sub-department of Customs that carries out procedures for temporary import shall only grant customs clearance for temporarily imported vehicles when there is a certificate of quality, technical safety, and environmental protection for imported motor vehicles/motorcycles and motorcycles and has been completed customs clearance.
  • The director of the Sub-department of Customs where the procedures for temporary import are carried out shall certify the results of the procedures in 02 copies of the temporary import papers for cars and motorcycles and return 01 copy to the customs declarant;

If paper customs procedures are carried out, the Sub-department of Customs shall certify the customs clearance on 03 declarations:

  • Return to the declarant 01 customs declaration with clearance certification and 01 customs declaration with the stamp “used” for re-export or transfer or destruction of automobiles and motorcycles in accordance with law”;
  • Save 01 customs declaration.

This Circular is effective as of June 2, 2021

Tighten management and handle violations of Karaoke and Disco business from June 1, 2021
Answered

On March 29, 2021, the Government issued Decree 38/2021/ND-CP providing for penalties for administrative violations in the field of culture and advertising (“Decree 38”).

Decree 38 has added regulations to increase the sanction level, apply additional sanctioning forms, and take remedial measures for violations of Karaoke and Disco services regulations. Thereby to deterrence and correct the limitations of this type of service. Decree 38 replaces the corresponding regulations in Decree No. 158/2013/ND-CP and Decree No. 28/2017/ND-CP.

Here are some new regulations in Decree 38 to tighten the management and strongly handle Karaoke and Disco business violations.

  1. Increasing the level of fines for violations, specifically:
  • A fine of up to VND 10,000,000 for the following acts: Not wearing the uniform or not wearing the nameplate provided by the employer; Untruthful declaration in the application file for a license to be eligible for Karaoke, Disco service…
  • A fine ranging from VND 10,000,000 to VND 20,000,000 for the following acts: Providing Disco services to persons under 18 years of age; Business Karaoke services outside the period from 8 hours to 24 hours per day; Correcting, erasing, or adding to change the content of the license for Karaoke and Disco services; Business Disco services at locations less than 200 meters from schools, hospitals, religious establishments, historical and cultural relics…
  • A fine ranging from VND 20,000,000 to VND 30,000,000 for the following acts: Trading in Karaoke services without a license; Using the license eligible for Karaoke service business of other organizations or individuals for business; ….
  1. Applying additional sanctions: Deprivation of the right to use the license to fully satisfy the conditions for doing business in Karaoke, Disco services from 18 months to 24 months; Confiscation of violation exhibits.
  2. Application of remedial measures: Forced revocation of the license to fully satisfy the conditions doing business in Karaoke, Disco services; Forced return of illegal profits obtained from committing violations.

In general, the new regulations in Decree 38 are more deterrent than the previous ones. This is considered appropriate and necessary to correct the operation of various Karaoke and Disco services, which are evolving very complicatedly in the current context.

Decree 38 takes effect from June 1, 2021.

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Policy for emergency support for union members and employees affected by Covid – 19
Answered

On May 19, 2021, the Vietnam General Confederation of Labor issued Decision No. 2606/QD-TLD on emergency support for union members and employees affected by the Covid-19 epidemic, Accordingly, the beneficiaries of supporting will include:

  • The force serving the frontline against the epidemic includes medical facilities, field hospitals, concentrated isolation areas, the support level is from 10 million VND to 50 million VND/unit.
  • Union members; Employees in the area with labor relations (including enterprises, units without a trade union) who are F0, being treated for illness and do not violate the provisions of the law on epidemic prevention and control will receive maximum support is 3 million VND/person.
  • Union members are cadres, civil servants, and public employees; Union members; Employees (at enterprises, agencies and units with union contributions) who are F1 must undergo medical isolation for 21 days at a concentrated isolation place under a decision of a competent state agency; Not applicable to the form of isolation at home, accommodation, businesses, not violating the provisions of the law on epidemic prevention and control, the maximum support level is 1.5 million VND/person.
  • Having a decision to apply medical isolation at home at the request of a competent state agency, in difficult circumstances; Pregnant female employees, employees raising children under 6 years old, employees forced to quit their jobs because they are residing in blocked areas at the request of competent state agencies, the maximum support level is 500,000 VND/person.
  • Other special cases that need support: assign the Standing Committee of the Confederation of Labor in the province or city; Trade Union at the central level and equivalent; Trade unions of corporations under the General Confederation; The immediate superior trade union at the grassroots level will actively consider and decide according to its competence, in accordance with the actual situation, requirements for epidemic prevention and control, and the ability to balance the trade union’s finances in the locality. In which, the level of support does not exceed the corresponding provisions mentioned above; report the results to the General Confederation.

This Decision takes effect from the date of issue.