Key Points of 07 Decrees Effective from Early January 2017

1. Increase in Regional Minimum Wages from January 1, 2017

From January 1, 2017, the regional minimum wage applied to employees working under labor contracts are as follows:

- Region I: 3,750,000 VND/month (increase by 250,000 VND/month compared to 2016);- Region II: 3,320,000 VND/month (increase by 220,000 VND/month compared to 2016);- Region III: 2,900,000 VND/month (increase by 200,000 VND/month compared to 2016);- Region IV: 2,580,000 VND/month (increase by 180,000 VND/month compared to 2016).

Simultaneously, there are adjustments in the applicable regions as stipulated in the Appendix issued with this Decree.

Decree 153/2016/ND-CP takes effect from January 1, 2017, replacing Decree 122/2015/ND-CP.

1. Da Nang can borrow domestic investment capital through issuing local government bonds

The Government of Vietnam has issued a Decree stipulating specific mechanisms on investment, finance, budget, and decentralization management for Da Nang city. The Decree includes the following contents:

- Mechanisms for mobilizing capital for development investment, allowing the City to borrow domestic investment capital through:- Issuance of local government bonds and other forms of mobilization according to legal regulations;- Relending from the Government's borrowing sources for local budget relending.- Financial and budget mechanisms;- Decentralization management mechanisms.

Decree 144/2016/ND-CP takes effect from January 1, 2017.

1. Increase in environmental service fee for forest

According to Decree 147/2016/ND-CP (effective from January 1, 2017), amending and supplementing some provisions of Decree 99/2010/ND-CP on the policy of payment for forestry environmental services, the payment level for environmental services for hydroelectricity and clean water production facilities is as follows:

- Hydroelectric production facilities: Service payment increases from 20 VND/kWh (according to Decree 99) to 36 VND/kWh;- Clean water production and supply facilities: Service payment increases from 40 VND/m^3^ (according to Decree 99) to 52 VND/m^3^.

1. Businesses must notify the state agency if reducing product prices

This is mentioned in Decree 149/2016/ND-CP, amending and supplementing certain provisions of Decree 177/2013/ND-CP guiding the implementation of some articles of the Price Law.

Producers and business individuals of goods and services (collectively referred to as enterprises) subject to price declaration must send a price notification to the competent state agency (CQNN) before setting prices or adjusting prices.

If declaring a price reduction, businesses must implement the price reduction immediately and send a written declaration of the reduction to the CQNN.

Additionally, the Decree stipulates that the Ministry of Industry and Trade, in cooperation with relevant ministries and central agencies, shall submit to the Government of Vietnam decisions on price registration; specific pricing, maximum prices, minimum prices, and pricing brackets for dairy products for children under 06 years old to stabilize prices.

1. Types of digital certificates used for electronic signatures in financial activities

According to Decree 156/2016/ND-CP (effective from January 10, 2017), amending Decree 27/2007/ND-CP on electronic transactions in financial activities, the types of digital certificates (CTS) used for electronic signatures in financial activities between organizations, individuals, and financial agencies include:

- CTS issued by public digital signature certification service providers;- CTS issued by specialized digital signature certification service providers dedicated to political system agencies;- Recognized foreign CTS;- Foreign CTS accepted in Vietnam;- Foreign CTS accepted in international transactions.

1. Sources for covering local budget deficits

Decree 163/2016/ND-CP guides the State Budget Law, stipulating that local budget deficits are covered from the following sources:

- Domestic borrowing by issuing Government bonds, national construction bonds, and other domestic loans;- Foreign borrowing from official development assistance (ODA) loans, preferential loans from foreign governments, financial institutions of other countries, and international organizations; issuing Government bonds in international markets; excluding loans borrowed by the Government for re-lending to economic organizations.

1. State Treasury does not pay interest on budget fund balances

This is mentioned in Decree 24/2016/ND-CP regulating the policies on state treasury fund management, effective from January 1, 2017.

Entities not receiving interest from the State Treasury include: balances of budgets at all levels and deposits from units and organizations originating from the state budget.

See more content on opening accounts, paying interest, and charging fees at the State Treasury in Decree 24/2016/ND-CP.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE