Legal updates by Dr. Oliver Massmann | January 2022

Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you.

Dr. Oliver Massmann is an International Attorney at Law and a Financial Accountant and Auditor, with over 20 years of experience working as a commercial lawyer in Vietnam. He is volunteering as a legal advisor for the GBA from the beginning of the association. Our regards and thank you!

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Legal updates by Dr. Oliver Massmann | January 2022

1.   New regulations on financial support for overseas guest workers
2.   Approving the plan for the electricity market operation in 2022
3.   Government issues new decree on registration fees
4.   SBV focuses on improving credit quality
5.   Immigration Department issues relaxed entry protocols for foreign nationals, overseas Vietnamese
6.   Transfer of foreign technologies to Vietnam to be promoted
7.   New rules set for stricter control of prize-winning video games for foreigners
8.   Vietnam to pilot carbon trade exchange

1. New regulations on financial support for overseas guest workers

Some highlines are as below:

• As part of Decision No. 40/2021/QD-TTg on the fund for overseas employment support, signed by Deputy Prime Minister Le Minh Khai, Vietnamese guest workers will get a subsidy worth VND7-20 million (US$300-880) if they are forced to return home earlier than contracted due to natural disasters, disease, war or economic recession.
• Migrant workers working under labor contracts will get a subsidy ranging from VND10 million (over US$300) to VND30 million if they are required to return home earlier than schedule due to labor accidents, illnesses, or diseases that make them unable to work abroad. Overseas guest workers who come back home earlier than scheduled will also get a financial subsidy of VND1 million monthly within six months for vocational training to re-enter the domestic labor market. Relatives of guest workers will get a subsidy of VND40 million if the workers die or go missing in other countries…
• The decision stipulates that manpower export enterprises shall be required to contribute VNd150,000 per guest worker per contract to the fund.
• Managed by the Ministry of Labour, Invalids, and Social Affairs, the fund aims to support and expand the labor export market and minimize risks for guest workers and labor export enterprises.

2. Approving the plan for the electricity market operation in 2022

Here are some remarks:

• The Electricity Regulatory Authority (Ministry of Industry and Trade) has just issued Decision No. 98/QD-DTDL dated December 31, 2021 on approving the plan for the electricity market operation in 2022.
• The National Power System Dispatch Center is responsible to promulgate the contents on plan operating Electricity Market in 2022 on the Electricity Market electronic information website, at the same time to calculate annual, month electricity output for the power plants directly participating in the Electricity Market and promulgate to the electricity generating and purchasing units in accordance with the article 4, clause 1 of Circular No. 24/2019/TT-BCT (individual promulgation for each power plant).
• In the case that electricity generation and purchase units cannot agree on electricity output rate liquidated by agreement prices, the units must continuously negotiate until unification and report the National Electricity Dispatch Center for calculating, proposing the output rate and reporting it to the Electricity Regulatory Authority before 15 June 2022.

3. Government issues new decree on registration fees

Some points stated as below:

• Deputy Prime Minister Le Minh Khai has recently signed Decree No. 10/2022 on regulating registration fees. The decree will take effect from 1 March this year.
• The property registration fee is 0.5 per cent while the fee on hunting guns and guns used for training and sports competition is 2 per cent. For ships including barges, canoes, tugs, pushers, submarines, submersibles and boats, including yachts and aircraft, the fee is 1 per cent. For automobiles, trailers, semi-trailers, and vehicles similar to automobiles, the fee is 2 per cent. For 9-seater vehicles or less (including pick-ups), the first registration fee is paid at a rate of 10 per cent.
• If it is necessary to apply a higher tax rate to suit the actual conditions in each locality, the People’s Council of the province will decide to increase it, but not exceeding 50 per cent of the general regulations.
• The people’s committees of provinces and cities shall issue a new registration fee calculation price list for houses, and the Ministry of Finance shall issue a new registration fee calculation price list for cars and motorbikes according to the decree. The registration fee for battery-powered electric cars shall also comply with the decree.

4. SBV focuses on improving credit quality

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has issued Directive No.01/CT-NHNN on organizing the implementation of the key tasks of the banking sector, with a focus on improving credit quality and tightly controlling loans to potentially risky industries.

Some remarkable points here:

• The Governor has required banks to take necessary measures for controlling credit size and growth, focusing loans on production and priority fields in accordance with the government’s policy to support economic recovery and development, while strictly controlling loans for potentially risky areas such as real estate, the stock market, build-operate-transfer (BOT) and Build-Transfer (BT) transport projects.
• the Governor also said it was necessary to continually carry out measures to restructure credit institutions, especially weak ones, to help the banking system operate healthily, effectively and transparently, meeting international standards
• the Governor has directed SBV’s agencies to manage the monetary policies proactively and flexibly in order to control the inflation in line with the government’s target of about 4 per cent for 2022.
• The Governor said the SBV would also continually promote non-cash payments and digital transformation in banking operations.

5. Immigration Department issues relaxed entry protocols for foreign nationals, overseas Vietnamese

Some remarks here:

• The Immigration Department of Vietnam has announced new policies on easing entry procedures for foreigners and overseas Vietnamese as well as their family members with valid visas or visa exemptions. The move was made in accordance with directions stated by Permanent Deputy Prime Minister Pham Binh Minh in Government Office Document No. 450/VPCP-QHQT dated 18 January 2022.
• Foreigners and overseas Vietnamese, who hold valid permanent or temporary residence cards, visas and visa exemption certificates, can enter Vietnam in accordance with the Law on foreigners’ entry without having to obtain prior approval from ministries, sectors, and local authorities or undergoing pre-clearance procedures.
• Foreigners who wish to enter Vietnam for market research, business, investment, work, conferences, study, family visits but do not have one of the above-mentioned documents must obtain approval from the provincial People’s Committees or ministries, sectors, and central authorities before undergoing sponsoring, inviting procedures for visas at the Immigration Department. Those wishing to enter Vietnam for tourism purposes can do so by joining tour groups under the Ministry of Culture, Sports, Tourism’s pilot inbound tourism program for fully vaccinated arrivals.

6. Transfer of foreign technologies to Vietnam to be promoted

Some remarks here:

• By 2025, Vietnam expects to build a database on 4,000 dossiers of foreign technologies, receive the transfer of 400 technologies from abroad, and master 10 technologies. The respective figures are expected to reach 10,000, 1,000 and 30 by 2030.
• It is a salient point of Decision No. 138/QD-TTg, revising Decision No. 1851/QD-TTg issued in 2018, approving a project to promote the transfer, mastering and development of foreign technologies to Vietnam in prioritized industries and fields to 2025 with an orientation to 2030.
• Training on seeking, decoding, mastering and transferring technologies will be provided to about 4,000 technicians and administrators in businesses and organizations through both direct and online formats by 2025, which is expected to increase to 10,000 by 2030. Meanwhile, a network of 200 and 500 international technology partners will be set up by 2025 and 2030 respectively.
• The number of FDI projects that include the transfer of technologies to local firms will increase 10 per cent each year by 2025 and 15 percent per year by 2030, while 30 per cent of businesses producing major products in prioritized areas are expected to build their own research and development facilities serving the transfer and absorption of technologies. The percentage is expected to increase to 70 per cent by 2030.
• Greater attention will be paid to enhancing human resource quality through the in-depth training at home and abroad and inviting foreign experts to work and give training in Vietnam.

7. New rules set for stricter control of prize-winning video games for foreigners

Some remarks here:

• The Government has recently released new rules to better manage prize-winning electronic games for non-nationals in Vietnam. The rules are provided in two decrees issued in late December 2021, namely Decree 121 and Decree 137.
• The first text, set to come into force on February 12, is designed to improve existing legal documents on the business of prize-winning electronic games for foreigners, and the other one, effective on the first day of the year, regulates the sanctioning of administrative violations in betting and prize-winning games.
• Decree 121 tightens the conditions for grant of certificates of eligibility for doing the business of prize-winning electronic games stipulated in Decree 86 of 2013, which was revised under Decree 175 of 2016.
• The new regulation increases the time for storage of recorded CCTV footages from 30 days to at least 180 days from the recording date, in which images of entrance and exit doors, places of installation of gaming machines, cashier counters, and cash and token safes must be clear.
• Decree 121 also specifies those allowed to be in and out of a gaming facility. It basically retains the prohibited acts specified in Decree 86 of 2013 for an enterprise engaged in the prize-winning electronic gaming business.

8. Vietnam to pilot carbon trade exchange

Some remarks here:

• The Government on 7 January  issued a decree requiring the establishment and trial operation of a carbon trade exchange by 2025.
• According to Decree 06 on mitigation of greenhouse gas emission and protection of the ozone layer, by the end of 2027, legal norms on management of carbon credits, commence exchange activities of greenhouse gas emission quotas and carbon credits will be issued and a regulation on operation of a carbon credit exchange will be enacted.
• Exchange of greenhouse gas emission quotas and carbon credits must be carried out on the carbon credit exchange and domestic carbon market.
• It also allows enterprises to bid to own more greenhouse gas emission quotas apart from amounts they are allocated in the same commitment period.
• The State encourages enterprises to willingly return their unused greenhouse gas emission quotas in order to help mitigate greenhouse gas emissions of the country.