Notable new policies of Vietnam to be effective from late-November 2022

1. New regulations of Vietnam on the electricity transmission price determination to follow new regulations as of November 22, 2022.

The Minister of Industry and Trade of Vietnam promulgated Circular No. 14/2022/TT-BCT (effective as of November 22, 2022) on amendments to Circular No. 02/2017/TT-BCT on methods and procedures for preparation, assessment, and approval for electricity transmission price.

According to the Circular, from November 22, 2022, the determination of the electricity transmission price will comply with new regulations.  

Specifically, the annual electricity transmission price will be uniformly applied nationwide and does not depend on the electricity transmission distance and power delivery locations.

Circular No. 14/2022/TT-BCT stipulates that the electricity transmission price shall be annually determined on the basis of reasonable and valid expenses on electricity transmission of the transmission network operator with the return on equity that has been determined according to the method of electricity retail price applicable at the time of calculation of electricity transmission price or the decision of the competent authority.

(Currently, Circular No. 02/2017/TT-BCT stipulates that the electricity transmission price shall be annually determined on the principle of ensuring recovery of appropriate expenses and gaining permissible profits to maintain normal operation of the electricity transmission network as required and meet financial criteria for investment and development of electricity transmission network.)

2. New regulations of Vietnam on procedures for appraising the electricity generation price range of solar power plants

This is the content of Circular No. 15/2022/TT-BCT (effective as of November 25, 2022) on methods for determining the electricity generation price range of solar power plans and wind power plants promulgated by the Minister of Industry and Trade of Vietnam.

Specifically, regulations on procedures for appraising the electricity generation price range of solar power plants are as follows:

- Within 5 working days from the date on which documents on calculating electricity generation price range under Article 11 of Circular No. 15/2022/TT-BCT are received, the Electricity Regulatory Authority of Vietnam are responsible for inspecting the documents for their contents, adequacy, and legitimacy.

- In case the documents are inadequate or illegitimate, the Electricity Regulatory Authority of Vietnam is responsible for requesting the EVN in writing to revise or clarify contents of the documents.

- Within 45 days from the date on which adequate documents on calculating electricity generation price range are received, Electricity Regulatory Authority of Vietnam is responsible for appraising the electricity price range using methods prescribed in this Circular.

- If necessary, the Electricity Regulatory Authority of Vietnam shall consult independent experts gather feedback pertaining to the price range via a Board of counsel established by the Ministry of Industry and Trade of Vietnam.

The Board of counsel has up to 9 members, including a Chairperson, a Vice Chairperson, a Secretary, and representatives of relevant entities of Ministry of Industry and Trade with sufficient specialty and comprehensive understanding in electricity generation.

3. New regulations of Vietnam on prohibited acts of educational inspectors of pedagogical universities and colleges

On October 10, 2022, the Minister of Education and Training of Vietnam promulgated Circular No. 14/2022/TT-BGDDT on educational inspectors of pedagogical universities and colleges.

According to the Circular, inspectors of pedagogical universities and colleges are prohibited from:

- Taking advantage of their tasks and entitlements to violate operational principles of educational quality accreditation to profit from educational institutions, educational quality accreditation organizations, and other relevant organizations and individuals

- Connecting and cooperating with educational institutions and educational quality accreditation organizations in conducting violations against regulations of the law on negotiation and conclusion of consulting contracts for educational quality accreditation, affecting public benefits and legitimate benefits of organizations and individuals;

- Receiving or requesting any other amount or benefit from educational institutions and other relevant organizations and individuals aside from agreed wage or cost under concluded contracts and according to regulations of the law;

- Insulting the honor or discrediting colleagues; taking advantage of their influence to illegally interfere in the operations of colleagues;

- Other prohibited acts as prescribed by law.

Circular No. 14/2022/TT-BGDDT comes into force as of November 25, 2022.

4. New regulations of Vietnam on conditions for the establishment of public service providers in the industry and trade sector

Circular No. 16/2022/TT-BCT (effective as of November 28, 2022) on the criteria for classification and conditions for the establishment, merger, consolidation, and dissolution of public service providers in the industry and trade sector promulgated by the Minister of Industry and Trade of Vietnam

According to the Circular, conditions for the establishment of public service providers in the industry and trade sector are as follows:

The establishment of public service providers operating in the industry and trade sector shall satisfy the conditions prescribed in Clause 1 Article 5 of Decree No. 120/2020/ND-CP, including:

- Being suitable for the national planning for the sector of the planning for the network of public service providers (if any) approved by competent authorities;

- Satisfying the criteria for establishment of public service providers according to specialized laws;

- Identifying objectives, functions, and tasks of units providing public services and serving the state management;

- Ensuring that the minimum number of workers is 15 (except for public service providers providing fundamental and essential public services established under specialized laws).

Regarding public service providers that cover their recurrent expenditures and public service providers that cover their recurrent expenditures and expenditures on investment, during the establishment of such units, the minimum number of workers who are public employees is determined according to the Establishment Scheme.

Regarding public service providers that cover their expenditures and expenditures on investment, operating according to corporate regulations, the minimum number of workers includes public employees and professionals under labor contracts.

Regarding public service providers abroad, the number of workers is approved by the Prime Minister of Vietnam in the Scheme for the Establishment of Public Service Providers.

- Having headquarters or schemes for land allocation for headquarters construction approved by competent authorities (in case of constructing new headquarters); initially necessary equipment; personnel resources and the budget for operations as prescribed by law.

- Regarding public service providers abroad: Aside from satisfying conditions prescribed in Points a, b, c, d, dd Clause 1 Article 5 of Decree No. 120/2020/ND-CP, they must also ensure the suitability for policies on foreign affairs of the CPV and the State and agreements between the Socialist Republic of Vietnam with Foreign Governments on the establishment and operation of public service providers.

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