Highlights of the last week's documents (October 24 - October 30, 2022)

1. Simultaneous increase in regulatory interest rates by the State Bank of Vietnam

The State Bank of Vietnam promulgated Decision No. 1809/QD-NHNN, Decision No. 1812/QD-NHNN, and Decision No. 1813/QD-NHNN on simultaneous increase in interest rates of credit institutions and foreign bank branches from October 25, 2022. To be specific:

- Decision No. 1809/QD-NHNN dated October 24, 2022 prescribes the refinancing rate, rediscount rate, overnight rate for inter-bank electronic payment, and interest rate for loans for covering the capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions and foreign bank branches. To be specific:

+ The refinancing rate increases from 5,0%/year to 6,0%/year.

+ The rediscount rate increases from 3,5%/year to 4,5%/year.

+ The overnight rate for inter-bank electronic payment, and interest rate for loans for covering the capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions increases from 6,0%/year to 7,0%/year.

- Decision No. 1812/QD-NHNN dated October 24, 2022 provides for maximum interest rates of deposits in Vietnam Dong of organizations and individuals at credit institutions and branches of foreign banks according to Circular No. 07/2014/TT-NHNN dated March 17, 2014. To be specific:

+ The maximum interest rate applicable to demand deposits and term deposits under 1 month increases from 0,5%/year to 1,0%/year.

+ The maximum interest rate applicable to term deposits from 1 month to less than 6 months increases from 5,0%/year to 6,0%/year, except those applicable to deposits in Vietnam Dong at People's Credit Funds and microfinance institutions, increases from 5,5%/year to 6,5%/year.

- Decision No. 1813/QD-NHNN in 2022 provides for the maximum short-term loan interest rate in Vietnam Dong of credit institutions and foreign bank branches for borrowers to satisfy the capital requirements for certain economic fields and sectors according to Circular No. 39/2016/TT-NHNN. To be specific:

+ The maximum short-term loan interest rate in Vietnam Dong of credit institutions and foreign bank branches for borrowers to satisfy the capital requirements for certain economic fields and sectors increases from 4,5%/year to 5,5%/year.

+ The maximum short-term loan interest rate in Vietnam Dong of People's Credit Funds and microfinance institutions to satisfy the these capital requirements increases from 5,5%/year to 6,5%/year.

 2. Annulment of the requirement of foreign language certificates and computer science certificates for public employees working in the natural resources and environment sector

The Minister of Natural Resources and Environment promulgated Circular No. 12/2022/TT-BTNMT dated October 24, 2022 amending regulations on standards for the title of public employees working in the natural resources and environment sector.

According to the Circular, in comparison with existing regulations specified in Joint Circular No. 52/2015/TTLT-BTNMT-BNV, Joint Circular No. 53/2015/TTLT-BTNMT-BNV, Joint Circular No. 54/2015/TTLT-BTNMT-BNV, Joint Circular No. 55/2015/TTLT-BTNMT-BNV, Joint Circular No. 56/2015/TTLT-BTNMT-BNV, and Joint Circular No. 57/2015/TTLT-BTNMT-BNV, the job titles of which foreign language certificates and computer science certificates mentioned in standards for educational qualifications include:

- Class II, III and IV cadastral officers;

- Class II, III and IV environmental compliance inspectors;

- Class II, III and IV hydrometeorological forecasters;

- Class II, III and IV hydrometeorological controllers;

- Class II, III and IV environmental compliance monitors;

- Class II, III and IV cartographers.

According to the Circular, only the skill in using information technology and foreign languages according to requirements of job application is required for public employees.  

Circular No. 12/2022/TT-BTNMT will come into force from December 09, 2022.

3. Up to VND 50.000.000 in fine to be imposed on violations against regulations on the conclusion of training contracts with vocational education teachers

On October 26, 2022, the Government of Vietnam promulgated Decree No. 88/2022/ND-CP on administrative penalties in the vocational education field.
Particularly, fines for violations against regulations on conclusion of training contracts with teachers and learners are prescribed as follows:

- Fines for violations of concluding training contracts without sufficient information as prescribed:
+ A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed on the violation of conclusion of contracts with under 10 learners;
 
+ A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed on the violation of conclusion of contracts with from 10 to under 50 learners;
 
+ A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the violation of conclusion of contracts with from 50 to under 100 learners;
 
+ A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the violation of conclusion of contracts with from 100 to under 200 learners;
 
+ A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on the violation of conclusion of contracts with 200 learners or more.
 
- Fines for violations of failing to conclude training contracts:
 
+ A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the violation of failing to conclude contracts with under 10 learners;
 
+ A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the violation of failing to conclude contracts with from 10 to under 50 learners;
 
+ A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on the violation of failing to conclude contracts with from 50 to under 100 learners;
 
+ A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed on the violation of failing to conclude contracts with from 100 to under 200 learners;
 
+ A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on the violation of conclusion of contracts with 200 learners or more.
 
Decree No. 88/2022/ND-CP will come into force from December 12, 2022.
 
4. Annulment of 06 administrative procedures of central authorities in the field of environment
 
This is the content in Decision No. 2787/QD-BTNMT dated October 24, 2022 on publication of administrative procedures to be annulled in the field of environment and water resources.
 
According to the Decision, the Ministry of Natural Resources and Environment shall annul 06 administrative procedures of central authorities in the field of environment prescribed in Decision No. 3806/QD-BTNMT in 2018, Decision No. 2528/QD-BTNMT in 2017 and Decision No. 634/QD-BTNMT in 2016, including:
 
- Issuance of renewed licenses for hazardous waste treatment;
 
- Reissuance of licenses for hazardous waste treatment;
 
- Issuance of marketing authorizations of biological products used in waste treatment;
 
- Approval for use of non-aqueous drilling fluids - NADF;
 
- Approval for separation of the connection from the centralized wastewater treatment system of industrial parks, export processing zones and high-tech zones and self-sufficiency in generated wastewater treatment;
 
- Consideration of Vietnam Environment Awards.
 
Decision No. 2787/QD-BTNMT comes into force from October 24, 2022.

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