Prominent new regulations in effect in mid January 2017

1. Ministry of Industry and Trade’s abrogation of coal trading conditions

On December 05, 2016, the Ministry of Industry and Trade promulgated the Circular No. 27/2016/TT-BCT on amendment and annulment of certain legislative documents on business and investment under the Ministry's management.

The coal trading conditions defined in Article 4 of the Circular No. 14/2013/TT-BCT are annulled pursuant to the list of conditional business lines defined in the Law of Investment.

Moreover, the Circular annuls the entirety of the following documents on food trading conditions:

- Circular No. 54/2014/TT-BCT on conditions for food safety assurance for processed milk production and trading establishments.

- Circular No. 53/2014/TT-BCT on conditions for food safety assurance for beer production and trading establishments.

- Circular No. 59/2014/TT-BCT on conditions for food safety assurance for vegetable oil production and trading establishments.

Circular No. 27/2016/TT-BCT takes effect as of January 20, 2017.

2. Statutory pay rate specified for the Civil Aviation Authority of Vietnam

On November 29, 2016, Prime Minister promulgated the Decision No. 51/2016/QD-TTg on specific financial regimes for the Civil Aviation Authority of Vietnam.

Such financial regimes are not much different from those piloted, as follows:

- The statutory pay rate for permanent state employees and contract workers is 0.8 times higher than that defined by the government.

- Such rate applies to the grade-based salary, level-based salary, position-based salary and allowances. It does not apply to night shift pay and overtime pay.

- Such increase in the salary shall not be subjected to contribution to social insurance, health insurance, unemployment insurance and labor union fee.

Decision No. 51/2016/QD-TTg comes into force as of January 15, 2017 and from the budget year of 2017.

3. Limit on the use of temporary idle state fund

As of November 28, 2016, the Ministry of Finance promulgated the Circular No. 314/2016/TT-BTC on the management of state fund.

The limit on the advances from the temporarily idle state fund to the state budget is defined below:

+ At the central level: State treasury shall determine the limit of advances accordingly, which shall not exceed the temporarily idle state fund in the relevant quarter.

+ At the provincial level: No more than 10% of the temporarily idle state fund in the relevant quarter; in addition, the sum of the advances from the state fund and other loan debts does not exceed the regulated maximum loan debt limit.

Besides, the Circular defines that no more than 50% of the temporarily idle state fund in a quarter can be deposited in commercial banks for a fixed term and spent on term repurchase of government bonds.

Circular No. 314/2016/TT-BTC takes effect as of January 15, 2017.

4. Qualifications required for an executive director of a mine

On November 29, 2016, the government promulgated the Decree No. 158/2016/ND-CP on the implementation of certain articles of the Law of Minerals.

An executive director of a mine is required to possess the following professional qualifications:

- For an executive director of an underground mine: A university degree or equivalent in mining or mine construction;

- For an executive director of an open-pit mine: A university degree or equivalent in mining, mine construction or geologic engineering;

- For an executive director of an open-pit nonmetal mine in which industrial explosive is not used and minerals are manually mined as common building materials:

A college or vocational diploma or equivalent in mining or geologic engineering in line with the type of mine.

Decree No. 158/2016/ND-CP comes into force as of January 15, 2017 and replaces the Decree No. 15/2012/ND-CP .