New and notable policies of Vietnam taking effect in the beginning of July 2022

1. Increase in regional minimum wage beginning July 1, 2022, Vietnam

According to Decree 38/2022/ND-CP, the minimum wage for employees working under labor contracts has been increased.

Specifically, the regional minimum wage increases from July 1, 2022 as follows:

- Region I: 4,680,000 VND/month. (currently, 4,420,000 VND/month)

 - Region II: 4,160,000 VND/month. (currently, 3,920,000 VND/month)

 - Region III: 3,640,000 VND/month. (currently, 3,430,000 VND/month)

 - Region IV: 3,250,000 VND/month. (currently, 3,070,000 VND/month)

Decree 38/2022/ND-CP takes effect from July 1, 2022 and replaces Decree 90/2019/ND-CP.

2. Modification of mandatory civil liability insurance buyers in construction with third parties in Vietnam

Decree 20/2022/ND-CP amends Decree 119/2015/ND-CP  on compulsory insurance for construction investment activities, effective from July 1, 2022.

As a result, engineering construction contractors must buy compulsory insurance for employees working at construction sites and compulsory third-party civil liability insurance.

Currently, engineering construction contractors only have to buy compulsory insurance for employees working at construction sites, and the new contractor is responsible for buying compulsory third-party civil liability insurance.

3. Adding public property electronic sales invoice in Vietnam

Decree 123/2020/ND-CP has added public property electronic sales invoice.

Public property electronic sales invoice is used when selling the following types of property:

- Public property at authorities, organizations or units (including state owned houses);

- Infrastructure property;

- Public property that is managed by enterprises as assigned by the Government, excluding state capital invested in enterprises;

- Property of state-funded projects;

- Property under the established all-people ownership;

- Public property appropriated under decisions issued by competent regulatory authorities or officials;

- Raw materials and supplies obtained from the disposal of public property.

Decree 123/2020/ND-CP takes effect from July 1, 2022 and replaces Decree 51/2010/ND-CP, Decree 04/2014/ND-CP, Decree 119/2018/ND-CP.

4. Reducing the rate of retained securities field fees in Vietnam

Circular 25/2022/TT-BTC stipulates exercise of autonomy in terms of payroll and operating funding of the State Securities Commission of Vietnam

The collector shall be allowed to retain and use 70% of total amount of collected fees in accordance with regulations of Decree 120/2016/ND-CP, Decision 29/2009/QD-TTg, and Circular 104/2009/TT-BTC.

Currently, The collector shall be allowed to retain and use 95% of total amount of collected fees in accordance with regulations of Decision 29/2009/QD-TTg and guiding documents.

Circular 25/2022/TT-BTC takes effect from July 1, 2022 and replaces Circular 272/2016/TT-BTC.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE