Notable documents of Vietnam in the previous week (from April 3 to April 9, 2023)

1. Vietnam to amend regulations on the commencement date from which land rents are calculated in case of extension or adjustment to the land use term

On April 3, 2023, the Government of Vietnam promulgated Decree No. 10/2023/ND-CP on amendments to Decrees guiding the implementation of the Law on Land.

Decree No. 10/2023/ND-CP has amended regulations on the commencement date from which land rents are calculated in case of extension or adjustment to the land use term prescribed in Decree No. 44/2014/ND-CP as follows:

- If a land user is entitled to extension of the land use term granted by a competent state authority upon expiry of the land use term, land rent calculation shall commence on the first date of the subsequent lease term.

- If a land user receives a competent state authority's decision on adjustment of the land use term, the commencement date of land rent calculation shall be subject to the following regulations:

+ If they use land leased out by the State under a lump-sum rent payment arrangement for the entire lease term, such rent payment shall be calculated from the day on which the State decides the adjustment of land use term. Collecting, offsetting, or refunding land rents shall be subject to laws on collection of land rents;

+ If they use land leased out by the State under an annual rent payment arrangement, calculation of the land rent in the first cycle of fixed land rent shall commence on the effective day of the State’s decision to adjust the land use term as a basis for calculation of the annual land rent.

 See more details in Decree No. 10/2023/ND-CP, which comes into force as of May 20, 2023.

2. Vietnam to change unemployment insurance premium payment methods

On March 28, 2023, the Vietnam Social Security promulgated Decision No. 490/QD-BHXH on amendments to the Procedure for Collecting Social Insurance Contributions and Premiums of Health Insurance, Unemployment Insurance, and Occupational Accident and Occupational Disease Insurance; management of social insurance books and health insurance cards enclosed with Decision No. 595/QD-BHXH dated April 14, 2017 and amendments to Decision No. 505/QD-BHXH dated March 27, 2020.

Specifically, Decision No. 490/QD-BHXH dated March 28, 2023 has amended unemployment insurance premium payment methods prescribed in Article 16 of Decision No. 595/QD-BHXH dated April 14, 2017 as follows:

Every month, employers shall pay unemployment insurance premiums and use deductions from the monthly salary of each employee as per regulation to transfer to the Unemployment Insurance Fund at the same time.  

(Previously, according to Article 16 of Decision No. 595/QD-BHXH dated April 14, 2017, unemployment insurance premium payment methods were as follows:

Unemployment insurance premium payment methods applicable to both employers and employees shall comply with Clauses 1, 2, and 3 Article 7 of Decision No. 595/QD-BHXH dated April 14 2017.)

See more details in Decision No. 490/QD-BHXH, which comes into force as of April 1, 2023.

3. Vietnam to change the name of the Law on Citizen Identification to the Law on Identity

On March 31, 2023, the Government of Vietnam promulgated Resolution No. 46/NQ-CP on the thematic meeting session on law development in March 2023.

According to the Resolution, the Government of Vietnam requests the Ministry of Public Security of Vietnam to take charge and cooperate with relevant ministries and agencies in urgently completing documentation on the Bill on Identity:

- It has been resolved that the name of the Law on Citizen Identification will be changed to the Law on Identity.

- Regarding the collection, update, connection, sharing, utilization, and use of information in the Database on Identity (Article 17 of the Draft Law): The Government of Vietnam shall elaborate on this content.

- Regarding the issuance of citizen identification cards to people who are under 14 years old (Article 20 of the Draft Law); regarding information integration (Article 23 of the Draft Law); regarding transitional provisions (Article 46 of the Draft Law); etc., it is necessary to continue assessing impacts, carefully reviewing and studying, ensuring feasibility, and avoiding conflicts with relevant laws.  

The Law shall prescribe stable and highly consistent contents; the Government of Vietnam shall prescribe new and volatile contents to ensure flexibility in operation and promptly prepare adjustments conformable to reality.

Continue to review relevant international treaties to impose regulations appropriate to the characteristics and conditions of Vietnam and the development of technology on the basis of creating maximum convenience for the people when using identification cards in transactions; ensure privacy and personal secrets according to the Constitution.

The Ministry of Public Security of Vietnam shall take charge and cooperate with the Ministry of Justice of Vietnam, the Office of the Government of Vietnam, and relevant agencies in studying, receiving suggestions from members of the Government of Vietnam, appraisal suggestions from the Ministry of Justice of Vietnam, and suggestions from the Office of the Government of Vietnam, and completing documentation on the Bill on Identity as per regulation.

On behalf of the Government of Vietnam and the Prime Minister of Vietnam, the Minister of Public Security of Vietnam shall sign and present the Bill on Identity to the National Assembly of Vietnam and its Standing Committee.

See more details in Resolution No. 46/NQ-CP promulgated on March 31, 2023.

4. State Bank of Vietnam to reduce interest rates of deposits at People’s Credit fund

This is the content of Decision No. 578/QD-NHNN dated March 31, 2023 on interest rates of deposits in Vietnam Dong of Vietnam Development Bank, Vietnam Bank for Social Policies, People's Credit Funds, and Microfinance Institutions at the State Bank of Vietnam.

Specifically, the interest rates applicable to deposits in Vietnam Dong of Vietnam Development Bank, Vietnam Bank for Social Policies, People’s Credit Funds, and Microfinance Institutions at the State Bank of Vietnam are as follows:

- Deposits of People’s Credit Funds: 0,5% per year.

- Deposits of Vietnam Development Bank: 0,5% per year.

- Deposits of Vietnam Bank for Social Policies: 0,5% per year.

- Deposits of Microfinance Institutions: 0,5% per year.

(Compared to Decision No. 1350/QD-NHNN dated August 6, 2020, in Decision No. 578/QD-NHNN, interest rates of deposits of People's Credit Funds, Vietnam Development Bank, Vietnam Bank for Social Policies, and Microfinance Institutions have decreased from 0,8% per year to 0,5% per year.)

Decision No. 578/QD-NHNN comes into force as of April 3, 2023 and replaces Decision No. 1350/QD-NHNN dated August 6, 2020.

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