On May 27, 2020, the Government issued Decree 58/2020/ND-CP stipulating the level of compulsory social insurance contributions to the Insurance Fund for Occupational Accidents and Occupational Diseases (“Decree 58/2020/ND-CP”). According to the content in Decree 58/2020/ND-CP:
The rates of contribution to the Insurance Fund for occupational accidents and occupational diseases are as follows:
Normal contribution rate shall be equal to 0.5% of the statutory base payroll, which is applicable to employees who are public officials, civil servants or public employees, and members of the armed forces under the control of authorities of the Party and State, socio-political organizations, military, public security forces or public service units funded by the state budget;
The contribution rate equaling 0.3% of the statutory base payroll shall be applicable to enterprises that satisfy the conditions specified in Decree 58/2020/ND-CP.
Conditions for employers to reduce the compulsory social insurance
Enterprises operating in industries with high risks of occupational accidents and diseases shall be entitled to the contribution rate equaling 0.3% of the statutory base payroll if they conform to following eligibility requirements:
Within three years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for their violation against laws on occupational safety, hygiene and social insurance;
They have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner within three consecutive years prior to the submission year;
Frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15% of the average frequency of workplace accidents in 3 consecutive years prior to the submission year, or have not had any occupational accident 3 years preceding the submission year.
This Decree shall take effect from July 15, 2020. Regulations laid down in the Government’s Decree No. 44/2017/ND-CP dated April 14, 2017, prescribing the rates of compulsory social insurance contributions to the workplace accident and occupational disease benefit fund, and point b of clause 1 of Article 13 in the Government’s Decree No. 143/2018/ND-CP dated October 15, 2018, providing details about implementation of the Law on Social Insurance, and the Law on Occupational Safety and Hygiene, in terms of compulsory social insurance for employees who are foreign citizens working in Vietnam, shall become defunct from the effective date of Decree 58/2020/ND-CP.
On June 2, 2020 the standing committee of the national assembly issued Resolution No.954/2020/UBTVQH14 changes to personal income tax exemptions. Accordingly, personal income tax exemption redulation in the Law on Personal Income Tax 2007 have been amended and supplemented as follows:
Personal exemption: 11 million VND/month (132 million VND/year). Meanwhile, the deduction level for taxpayers themselves is currently prescribed at VND 9 million/month (VND 108 million/year).
Dependent exemption: 4,4 million VND/dependent/month. Current this deduction is 3,6 million VND/month.
As such, the new regulation at Resolution No. 954/2020/UBTVQH14 has increased the discount on tax payers for more than 2 million VND/month and for each dependent additional 800 thousand VND/month.
For cases where the tax has been paid in accordance with the current deductibles, the personal income tax amount must be filed by the deduction of the scene at resolution 954/2020/UBTVQH14 when settling personal income tax in 2020.
This Resolution takes effect from July 1, 2020 and applies from the 2020 tax period.
On May 25, 2020 the Goverment issued Resolution No.80/ND-CP on visa exemption for foreigners entering Phu Quoc economic zone, Kien Giang province.
Accordingly, the Government stipulates that Phu Quoc Economic Zone, Kien Giang Province is a coastal economic zone, which is applied the visa exemption policy for foreigners upon entry as prescribed in Clause 7, Article 1 of the Amending and Supplementing Law. Supplementing a number of articles of the Law on entry, exit, transit, and residence of foreigners in Vietnam on November 25, 2019.
Specifically, the Law amending and supplementing a number of articles of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam stipulates the conditions for visa exemption as follows: coastal economy is decided by the Government when fully meeting the following conditions: having an international airport; have separate spaces; have definite geographical boundaries, separate from the mainland; It is consistent with the socio-economic development policy and does not prejudice Vietnam’s national defense and security, social order and safety.
Thus, Phu Quoc Economic Zone, Kien Giang Province, is a coastal economic zone that applies the policy of visa exemption upon entry to foreigners as prescribed.
Resolution No. 80/ND-CP officially takes effect from July 1, 2020.
On April 8, 2020, the Government issued Decree No. 44/2020/ND-CP stipulating the Forced execution of judgments against commercial legal entities. This Decree takes effect as from June 1, 2020 providing for the principles, measures, order and procedures for application of coercive measures of judgment execution to commercial legal entities specified in Article 163 of Law on Criminal Judgment Execution.
Measures of coercive judgment execution applicable to commercial legal entities include: Account blockade; property distraint has the value corresponding to the security guarantee enforcement amount (property distraint); custody of documents, vouchers, devices containing electronic data; temporarily seizing or withdrawing seals of commercial legal entities.
According to Decree No. 44/2020/ND-CP, there are 4 types of assets not subject to enforcement of commercial judgment execution including:
Properties banned from circulation as prescribed by law; assets in service of national defense, security and public interests; properties financed by the State budget for agencies and organizations;
Number of medicines in service of prevention and treatment of laborers; food, tools and other assets serving workers’ meals;
Kindergartens, schools, health facilities and equipment, vehicles and other properties of these facilities which are not assets for business;
Equipment, facilities and tools to ensure labor safety, fire and explosion prevention and fighting, and prevention of environmental pollution.
The Decree also states that if the legal entity has no other assets or assets but not enough to execute the sentence, the criminal judgment enforcement agency has the right to distrain and handle the property pledged, mortgage if the value of such property is greater than the guaranteed obligation and the cost of enforcement of the judgment.
The Ministry of Industry and Trade’s Circular No. 10/2020 / TT-BCT of June 15, 2020, repealed Circular No. 03/2014 / TT-BCT of January 25, 2014 of the Minister of Industry and Trade , cast iron and steel production equipment.
Circular No. 10/2020/TT-BCT dated 15/06/2020 of the Ministry of Industry and Trade has abolished the requirements related to technology, equipment in the cast iron, steel industry at Circular No. 03/2014/TT-BCT dated 01/25/2014.
Previously, according to Circular No. 03/2014/TT-BCT, the cast iron and steel production facilities, Including: coking coal, sintering, cast iron and steel furnace, electric arc furnace, induction steel furnace and rolling steel must meet the following technology and equipment requirements:
Comply with provisions of the law on investment, construction and management of work quality.
Technology and equipment used in such manufacturers must ensure synchronism and confirm to provisions of the law on effective and economic use of energy.
Ensure safety of fire and explosion prevention.
Comply with national technical regulations and standards for environmental protection.
When preparing the project for investment in establishment of steel manufacturers and cast iron manufacturers specified in Clause 1 Article 1 herein, the organization or individual (the investor) must provide a representation about technology and equipment used in such project in conformity with regulations herein and send it to the competent authority for inspection and certificate issuance as per provisions of the law on investment. If the project is approved to be run, the investor shall send a report on the implementation result according to the one provided in Appendix IV issued thereto to the Heavy Industry Administration, Ministry of Industry and Trade and Department of Industry and Trade before January 31 each year.
Accordingly, the above requirements in Circular No. 03/2014/TT-BCT will be abolished as soon as Circular No. 10/2020/TT-BCT takes effect. It is understood that technological requirements, treatment of exhaust gas, waste and wastewater in cast iron, steel industry are no longer compulsory.
Circular No. 10/2020/TT-BCT takes effect from July 31, 2020.
On November 12, 2018, the Ministry of Industry and Trade issued Decision No. 4244/ QD-BCT on maintaining the application of anti-dumping measures on some galvanized steel products originating from China and Korea.
Pursuant to Clause 1, Article 58 of the Government’s Decree No. 10/2018/ND-CP of January 15, 2018, detailing a number of articles of the Law on Foreign Trade Management regarding trade remedies measures, September 13 In 2019, the Ministry of Industry and Trade made a public announcement on its website and the Department of Trade Remedies (Investigation Agency) on the official receipt of the application for review from related parties. After receiving the application for review from related parties, pursuant to Clause 1 Article 82 of the Law on Foreign Trade Management, dated December 27, 2019, the Ministry of Industry and Trade issued Decision No. 3859/QD- MOIT on the first review of the application of anti-dumping measures on some galvanized steel products under HS code: 7210.41.11; 7210.41.12; 7210.41.19; 7210.49.11; 7210.49.12; 7210.49.13; 7210.49.19; 7210.50.00; 7210.61.11; 7210.61.12; 7210.61.19; 7210.69.11; 7210.69.12; 7210.69.19; 7210.90.10; 7210.90.90; 7212.30.11; 7212.30.12; 7212.30.13; 7212.30.14; 7212.30.19; 7212.30.90; 7212.50.13; 7212.50.14; 7212.50.19; 7212.50.23; 7212.50.24; 7212.50.29; 7212.50.93; 7212.50.94; 7212.50.99; 7212.60.11; 7212.60.12; 7212.60.19; 7212.60.91; 7212.60.99; 7225.92.90; 7226.99.11; 7226.99.91 is from China and Korea (case code: AR01.AD02).
Under the provisions of Point d, Clause 4, Article 82 of the Law on Foreign Trade Management, the time limit for a review is 6 months from the date of the decision to review, in case of necessity, it may be extended once but not exceeding 03 months.
In order to ensure a harmonious review of opinions and interests of related parties, on June 19, 2020, the Ministry of Industry and Trade issued Decision No. 1629/QD-BCT to extend the first review deadline for additional 03 months. Accordingly, the time limit for issuing the review conclusions is extended to September 27, 2020.
Decision No. 1629/QD-BCT takes effect from the date of signing.
On May 14, 2020, the Ministry of Information and Communications (“MIA”) issued Circular 11/2020/TT-BTTTT regulating the List of goods likely to cause unsafety under the management of Ministry of Information and Communications (“Circular 11/2020/TT-BTTTT”).
The list is divided into 2 groups:
1. Groups of goods compulsory to be conducted with regulation conformity certification (RCC) and regulation conformity announcement (RCA) include:
– Radio telecommunications terminal equipment;
– Radio transmitters, receivers – transmitters with a frequency band of between 9 kHz and 400 GHz and with a output capacity of 60 mW or more;
– Radio transmitters and transceivers with short distance;
– Radio communication equipment
2. Groups of goods compulsory to be conducted with RCA include:
– Information technology equipment (PC, laptop, tablet);
– Radio and television equipment;
– Radio communication equipment (cordless telephone equipment – subscription extension type)
– Radio transmitters and receivers with a frequency band of between 9 kHz and 400 GHz and with a output of 60 mW or more (Not in the case specified in Section 1).
– Short-range radio transmitter and receiver (Not in the case specified in Section 1).
– Lithium battery for handheld device.
Note: Products and goods subject to the application of two or more national technical regulations must carry out RCC and RCA according to the provisions of such national technical regulations.
This Circular takes effect from July 1, 2020 and invalidates Circular 05/2019/TT-BTTTT.
On May 14, 2020, the Ministry of Industry and Trade issued Circular No. 09/2020/TT-BTC providing the roadmap for the application of border gates of import and export for the following goods: temporarily imported or re-exported goods; transported goods from border gate to border gate; temporarily imported or re-exported goods at bonded warehouses (“Circular No. 09/2020/TT-BTC”). The article would like to go through some main contents as follows:
Those directly affected by Circular No. 09/2020/TT-BTC:
Traders engaged in business activities of temporary import, re-export, border-gate transfer or bonded warehouse.
Organizations and agencies managing business activities of temporary import, re-export, border-gate transfer or bonded warehouse.
Agencies, organizations and individuals involved in activities of temporary import, re-export, border-gate transfer or bonded warehouse.
Main content of Circular No. 09/2020/TT-BTC:
For the goods of temporary import or re-export or border-gate transfer, if imported into or re-exported out of Vietnam across the land border, the import or re-export for these goods may only be carried out through international border gates, main border gates (bilateral border gates) opened in accordance with the Government’s Decree No. 112/2014/ND-CP dated November 21, 2014 on the management of land border gates.
This regulation is also applicable to the goods at bonded warehouses if such goods are imported into or re-exported from Vietnam across the land border.
Time for applicating the regulations of Circular No. 09/2020/TT-BTC: From 00:00 on January 1, 2021.
To attract foreign investors into Vietnam to perform a business project, the state has issued a lot of different incentives policy. When executing investment projects in the sectors eligible for incentives or implemented in geographical areas eligible for investment incentives according to the provisions of law, foreign investors are entitled to certain forms of incentives.
The Law on Investment in 2014 and Decree No. 118/2015/ND-CP detailing and guiding a number of articles of the Investment Law stipulate many preferential policies, investment incentive industries and areas. enjoy investment incentives. On March 30, 2020, the Government issued Decree No. 37/2020/ ND-CP supplementing the List of industries and trades eligible for investment incentives attached to Decree 118/2015/ ND-CP guiding the Law on investment, effective from May 15, 2020. Accordingly, the following industries have been added to the Appendix of the List of industries and trades eligible for investment incentives, including:
Business investment for product distribution chains of small and medium enterprises;
Business investment for basic establishment of small and medium enterprises;
Business investment for technical assistance for small and medium enterprises;
Business investment for common workplace for start-up small and medium enterprises.
These are industries related to business investment activities in accordance with the Law on Supporting Small and Medium Enterprises. It is one of the policies that the State has encouraged to create conditions for small and medium-sized enterprises to have the opportunity to promote their business activities, to promote businesses to grow more and more.