Summary of Notable Documents in the Past Week

1. Foreign Currency Dedicated Account in Casino Business

Circular 10/2017/TT-NHNN (effective from October 15, 2017) provides guidance on foreign exchange management for casino business operations.

Accordingly, the regulations on dedicated foreign currency accounts of casino businesses (B) are as follows:

- B is only allowed to open one dedicated account corresponding to each type of foreign currency at one authorized bank and utilize the dedicated foreign currency account to conduct specific revenue and expenditure activities. For instance:- Receiving transfers from foreign players' overseas accounts to exchange for convertible money;- Selling foreign currency to authorized banks.- B permitted by the State Bank to collect and spend the currency of a neighboring country, besides the dedicated foreign currency account, B is allowed to open one dedicated account in the currency of the neighboring country to serve their casino business activities.- B is permitted to transfer foreign currency from the dedicated foreign currency account to foreign currency payment accounts opened at authorized banks and vice versa to support their casino business operations.

2. Replacement of Forms in the Foreign Currency Revenue and Expenditure Licensing Dossier

On August 30, 2017, the State Bank of Vietnam issued Circular 11/2017/TT-NHNN, amending and supplementing Circular 15/2014/TT-NHNN on foreign exchange management for electronic gaming business operations for foreigners.

Replacing Appendices 01, 02, 03, 04, 06, 07, 08, 09 attached to Circular 15/2014/TT-NHNN with the corresponding new Appendices as follows:

- Appendix 01: Application for foreign currency revenue and expenditure license and other foreign exchange activities (referred to as foreign currency revenue and expenditure);- Appendix 02: Foreign Currency Revenue and Expenditure License;- Appendix 03: Application for re-issuance/adjustment/extension of the foreign currency revenue and expenditure license;- Appendix 04: Report on the situation of opening and closing dedicated accounts;- Appendix 06: Foreign currency cash winnings and prize exchange confirmation certificate;- Appendix 07: Report on the performance of foreign currency revenue and expenditure;- Appendix 08: Application for conversion of foreign currency revenue and expenditure licenses;- Appendix 09: Report on the implementation of foreign currency revenue and expenditure.

Circular 11/2017/TT-NHNN is effective from October 15, 2017.

3. Advantages of Social Insurance Policies over Commercial Insurance

According to Official Dispatch 3758/BHXH-TT attaching the orientation document for key propaganda content, Vietnam Social Security highlighted the prominent benefits of social insurance policies over commercial insurance (life insurance - L) as follows:

- Contributions to social insurance funds are adjusted to increase in line with the annual consumer price index. L calculates based on market interest rates;- Participants in social insurance who die or become disabled (regardless of reason) will have their contribution time recorded to calculate social insurance benefits. Whereas L excludes certain cases where the company is not liable to pay insurance, such as:- Death due to suicide within 2 years from the first premium payment;- Death or permanent disability due to the intentional fault of the policyholder or the beneficiary.- Unlike L, which only pays benefits as per the signed contract, social insurance participants receive a pension based on periodically adjusted pension levels. When the pensioner dies, the person in charge of funeral arrangements receives a funeral allowance equivalent to 10 months of statutory pay rate.

See more in Official Dispatch 3758/BHXH-TT issued on August 24, 2017.

4. Resolution of Maternity Policies for Female Teachers Coinciding with Summer Vacation

According to the guidance in Official Dispatch 1125/NGCBQLGD-CSNGCB on August 18, 2017, if female teachers have maternity leave coinciding with the summer vacation, the resolution is as follows:

- Educational institutions arrange annual leave as stipulated in Articles 111 and 112 Labor Code. The summer vacation for teachers encompasses annual leave:- 8 weeks for preschool teachers (Clause 2, Article 3 Circular 48/2011/TT-BGDDT);- 2 months for general education teachers (Clause 4, Article 1 Circular 15/2017/TT-BGDDT).- If the educational institution cannot arrange the annual leave for the teachers, they shall receive an annual leave payment as specified in Article 114 of the Labor Code.

Additionally, Thu Ky Luat has updated 2 documents on salary classification in the Military effective from October 10, 2017:

1. Circular 207/2017/TT-BQP provides guidance on salary classification for defense workers as stipulated in Article 4 Decree 19/2017/ND-CP;
2. Circular 208/2017/TT-BQP provides guidance on salary classification for officers, defense workers, public employees in defense, non-commissioned officers, and soldiers who are selected as professional military personnel.

Video highlights of notable documents of the week

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