Notable new policies of Vietnam to be effective as of the start of March 2023

1. Entry into force of the Law on Anti-Money Laundering 2022 of Vietnam

On November 15, 2022, the XV National Assembly of Vietnam approved the Law on Anti-Money Laundering 2022 in the 4th meeting.

The Law on Anti-Money Laundering 2022 has added the category of customers by levels of money launder risk as follows:

- For the customer representing a low risk of money laundering, the reporting entity may collect, update and verify customer identification data to a mitigated degree when starting a relationship with that customer;
 
- For the customer representing a medium level of money laundering risk, the reporting entity may apply customer due diligence (CDD) measures specified in Article 9 of the Law on Anti-Money Laundering 2022 to that customer; (new regulation)
 
- For the customer representing a high level of money laundering risk, in addition to the CDD measures applied as specified in Point b Clause 2 Article 9 of the Law on Anti-Money Laundering 2022, the reporting entity shall apply enhanced CDD measures, including the intensified collection, updating and verification of customer identification data and close monitoring of that customer’s transactions.
 
2. 10 Circulars of Vietnam on standards and salary classification of public employees in the transport sector
 
The Minister of Transport of Vietnam promulgated a series of Circulars on codes and standards of the professional titles and salary classification of public employees of the transport sector, which comes into force as of March 1, 2022.

Specifically, documents on standards and salary classification of public employees in the transport sector are as follows:
 
(1) Circular No. 47/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in road engineering and ferry engineering;
 
(2) Circular No. 46/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in road project management;
 
(3) Circular No. 45/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in vehicle register;
 
(4) Circular No. 44/2022/TT-BGTVT on amendments to Circular No. 11/2020/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees in airport authorities;
 
(5) Circular No. 43/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in waterway project management;
 
(6) Circular No. 41/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in maritime project management;
 
(7) Circular No. 40/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees in port authorities;

(8) Circular No. 39/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees in inland waterway port authorities;
 
(9) Circular No. 38/2022/TT-BGTVT on codes and standards of the professional titles and salary classification of public employees specializing in maritime search and rescue and maritime security information;  
 
(10) Circular No. 36/2022/TT-BGTVT guiding job positions of leaders, managers, and professional titles in the transport sector in public service providers.
 
The 10 Circulars mentioned above come into force as of March 1, 2022.
 
3. Vietnam to change the eligibility for perquisites in case of dangerous conditions

On November 30, 2022, the Minister of Labor - War Invalids and Social Affairs of Vietnam promulgated Circular No. 24/2022/TT-BLDTBXH on perquisites for employees working in dangerous and hazardous conditions.

According to the Circular, employees are eligible for perquisites when they satisfy the following 2 requirements:

- The employees are working in occupations and professions included in lists of extremely arduous, hazardous and dangerous occupations and professions and arduous, hazardous and dangerous occupations and professions promulgated by the Minister of Labor - War Invalids and Social Affairs of Vietnam.
 
- The employees are working in environments that have at least 1 of the 2 factors below:
 
+ There is at least one dangerous or hazardous factor that fails to meet permissible hygiene standards and regulations according to the Ministry of Health of Vietnam.
 
+ The employees make contact with at least 1 factor which is given a score of 4 under the sub-heading titled “Contact with sources of infectious diseases according to the Law on Prevention and Control of Infectious Diseases” (number 10.1 of Section A, Appendix I attached to Circular No. 29/2021/TT-BLDTBXH dated December 28, 2021 of the Minister of Labor - War Invalids and Social Affairs of Vietnam). (New regulation)
 
Attention: The identification of factors under Clause 2 Article 3 of Circular No. 24/2022/TT-BLDTBXH must be performed by organizations eligible for operating in working environment monitoring as per the law.

Circular No. 24/2022/TT-BLDTBXH comes into force as of March 1, 2023.
 
4.  Vietnam to amend applications for changes to the charter capital of credit institutions that are cooperatives
 
The Governor of the State Bank of Vietnam promulgated Circular No. 22/2022/TT-NHNN on amendments to Circular No. 05/2018/TT-NHNN on applications and procedures for approval of changes and recommended personnel lists of credit institutions that are cooperatives.
 
According to the Circular, amendments to applications for changes to the charter capital of credit institutions that are cooperatives are as follows:
 
(1) The application form made according to the form in Appendix No. 05 enclosed with Circular No. 22/2022/TT-NHNN;

(Compared to Circular No. 21/2019/TT-NHNN on amendments to Circular No. 05/2018/TT-NHNN, Circular No. 22/2022/TT-NHNN has elaborated on the application form for approval of changes to the charter capital)
 
(2) The plan for increase in charter capital, which shall at least include the following contents:
 
- Funding sources for increasing the charter capital;
 
- Funding sources for refund of contributed capital to its members and level of satisfaction of refund requirements (if any);
 
(3) The plan for decrease in charter capital, which shall at least include the following contents:
 
- Funding sources for making additional contributions to the charter capital (if any);
 
- Funding sources for refund of contributed capital to its members and level of satisfaction of refund requirements;
 
- Expected date of completion of decrease in charter capital;
 
(4) The Resolution issued by the general meeting of members, which shall at least include the following contents:
 
- Change in the charter capital;
 
- Approval of the list of new members or removal of termination of membership at the people’s credit fund;
 
- Decision on exclusion of a member;
 
In case of application for approval of decrease in the charter capital, the new charter capital must comply with regulations of law on legal capital and the credit institution that is a cooperative must have a plan for satisfaction of prudential ratio requirements in its operation;
 
(Compared to Circular No. 21/2019/TT-NHNN on amendments to Circular No. 05/2018/TT-NHNN, Circular No. 22/2022/TT-NHNN has added regulations on Resolution issued by the general meeting of members shall at least include the following 3 contents:

- Change in the charter capital;

- Approval of the list of new members or removal of termination of membership at the people’s credit fund;

- Decision on exclusion of a member)
 
(5) The list of capital contributors to whom their contributed capital will be refunded in the year which is made using the form in Appendix No. 06 enclosed with Circular No. 05/2018/TT-NHNN.
 
(Compared to Circular No. 21/2019/TT-NHNN on amendments to Circular No. 05/2018/TT-NHNN, Circular No. 22/2022/TT-NHNN has changed the form of the list of capital contributors to whom their contributed capital will be refunded in the year)

Circular No. 22/2022/TT-NHNN comes into force as of March 1, 2023.

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