Notable new policies of Vietnam effective from the end of August 2023

1. Funding sources for adjustments to the statutory pay rate according to Decree No. 24/2023/ND-CP in provinces in Vietnam

On July 17, 2023, the Minister of Finance of Vietnam promulgated Circular No. 50/2023/TT-BTC on guidelines for the identification of needs, sources, and payment methods for adjustments to the statutory pay rate according to Decree No. 24/2023/ND-CP and adjustments to monthly allowances for resigned commune-level officials according to Decree No. 42/2023/ND-CP.

According to the Circular, funding sources for adjustments to the statutory pay rate according to Decree No. 24/2023/ND-CP of provinces and centrally affiliated cities are as follows:

- 10% of regular expenditure savings (excluding salaries, allowances, amounts with salary nature, and expenditures on people according to regulations) of the 2023 estimates assigned by competent authorities.

- 70% of the increased local budget revenues in 2022 compared to the estimates assigned by the Prime Minister of Vietnam (Excluding revenue from collecting fees for the use of lands, construction lottery, revenue from equitization and divestment of state-owned enterprises managed by local authorities; lump-sum land rent advanced by investors for compensation, site clearance, and revenue from handling public property at agencies, organizations, and units used by competent agencies for expenditures on investment following regulations; etc.).

- Remainder of the 2022’s salary form funding (carried forward to 2023);

- 40% of retainable revenues under regulations of 2023 after deducting costs related to the provision of services and fee collection.

Regarding revenues from providing services of medical examination and treatment, preventive medicines, and other health services of public health establishments: at least 35% of such revenues after deducting costs related to the provision of services and fee collection.

The scope of deduction of retainable revenues shall comply with Clause 3 Article 3 of Circular No. 50/2023/TT-BTC.

See more details in Circular No. 50/2023/TT-BTC, effective as of August 31, 2023.

2. New regulation of Vietnam on conditions for using Public Property Management Software from August 27, 2023

On July 12, 2023, the Minister of Vietnam promulgated Circular No. 48/2023/TT-BTC guiding the management, use, and utilization of the Public Property Management Software.

Specifically, conditions for using the Public Property Management Software from August 27, 2023 are as follows:

- Computers must be connected to the Internet, updated with operational system patches for security; installed with antivirus software, and regularly updated with versions that can identify new virus forms.

- Information that is inputted into the Software must be in Unicode TCVN 6909:2001 for Vietnamese writing.

Documents written in fonts other than Unicode TCVN 6909:2001 must be converted to it before being uploaded to the Software.  

- Each data entry unit prescribed in Point a Clause 1 Article 8 of Circular No. 48/2023/TT-BTC is provided with an account (including username and password) and granted management and use rights for access to the Software by the Ministry of Finance of Vietnam (via the Department of Public Asset Management).

- Each data entry unit prescribed in Points b and c Clause 1 Article 8 of Circular No. 48/2023/TT-BTC is provided with an account (including username and password) and granted use rights for access to the Software by a manager. This account shall be approved by the Ministry of Finance of Vietnam (via the Department of Public Asset Management).

- Computers are recommended to meet the following conditions for ensuring access to the Software:

+ Computer configuration: at least 2-core processor, 2 GHz; at least 8GB of RAM.

+ Browser: at least Mozilla Firefox 100+, Google Chrome 100+, or Safari 13+.

+ Operational System: at least Windows 10 or equivalences.

Circular No. 48/2023/TT-BTC comes into force as of August 27, 2023 and replaces Circular No. 184/2014/TT-BTC.

3. Additional tasks and entitlements of Departments of Industry and Trade regarding logistics services in Vietnam

On June 30, 2023, the Minister of Industry and Trade of Vietnam promulgated Circular No. 15/2023/TT-BCT on amendments to Circulars guiding functions, tasks, and entitlements of Departments of Industry and Trade.

Circular No. 15/2023/TT-BCT supplemented the entitlements of Departments of Industry and Trade regarding logistics services compared to Circular No. 04/2022/TT-BCT.

Specifically, regarding logistics services, Departments of Industry and Trade shall:

- Take charge and cooperate with concerned departments, authorities, and units in providing counseling for the development and organization of the implementation of policies, laws, and projects on the development of logistics services and programs and schemes for the development of logistics services in provinces;

- Coordinate and support departments, authorities, and local associations in developing logistics services and improving the capacity of logistics enterprises in provinces;

- Disseminate, universalize, and develop the market, connect logistics service enterprises with production and import-export enterprises in provinces.

Circular No. 15/2023/TT-BCT comes into force as of August 22, 2023.

4. Principle of developing state budget expenditure estimates in 2024 of Vietnam

On July 17, 2023, the Minister of Finance of Vietnam promulgated Circular No. 51/2023/TT-BTC on guidelines on the development of state budget estimates in 2024 and the 3-year plan for state budget - finance during 2024-2026.

Specifically, the development of state budget expenditure estimates in 2024 shall comply with the following principles:

- Complying with the Law on State Budget, Law on Public Investment, and relevant laws; complying with Resolutions of the Standing Committee of the National Assembly of Vietnam and Decisions of the Prime Minister of Vietnam on principles, criteria, and quotas for development investment capital allocation and state budget recurrent expenditures;

Meeting the requirements for the budget restructuring, policies on re-arrangement of the organizational apparatus, payroll downsizing in the political system, and improvement of quality and efficiency of the activities of public service areas under Resolutions of the Central Authority and the Politburo of the Communist Party of Vietnam.

Ensuring resources for reforming salary and policies on social insurance in association with the acceleration of the arrangement of the organizational structure associated with payroll downsizing road maps under Resolutions of the Central Authority.

- Disseminating principles of publicity and transparency and requirements for thrift practice to prevent waste under Resolution No. 74/2022/QH15 when determining tasks, ensuring the uniform implementation of tasks from the estimate preparation to allocation, management, and use of state budget.

- Closely following the implementation capacity and preventing the termination of estimates and transfer of resources to the following year.

Ministries, central authorities, and local authorities shall, based on the implementation assessment of 2023, review overlapped and unfinished tasks to be continued in 2024; arrange the order of priority to perform new tasks approved by competent authorities according to their necessity, importance, and implementation capacity; ensure that the preparation of state budget estimates is in conformity with the capacity of mobilizing and balancing resources (including other legal resources as per regulation).

Circular No. 51/2023/TT-BTC comes into force as of August 31, 2023 and applies to the process of developing state budget estimates in 2024 and plans for state budget - finance during 2024-2026.

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