New decrees to take effect since March 01, 2015

1. New guidance on salaries

A lot of new regulations concerning pay are defined in the Decree No. 05/2015/NĐ-CP providing guidance on the Labor Code.  For instance:

Any employer who delays payment of salary to employees for at least 15 days shall pay an extra amount that is equal to the delayed amount multiplied by one-month term ceiling deposit interest rate announced by the State Bank of Vietnam at the date of payment of salary.

If such is not stipulated by the State Bank of Vietnam, calculation of extra amount paid to employees shall be based on one-month term ceiling deposit interest rate announced by commercial banks where enterprise, organization opens accounts at the date of payment of salary.

In addition, the Decree specifies that compensation for losses caused by illegal demonstrations must be provided within five working days since the receipt of written request for compensation.

The Decree No. 05 shall replace the decrees 196-CP in 1997, 41-CP in 1995, 93/2002/NĐ-CP , 33/2003/NĐ-CP , 11/2008/NĐ-CP .

2. Oil and gas industry: Subsidiary companies not allowed to contribute investment capital to their parent companies

This is one of the regulations on financial management by parent company - Petrovietnam which is promulgated in the Government’s Decree No. 06/2015/NĐ-CP .

Besides, subsidiary companies which are dependent on their parent company in terms of cost-accounting are not allowed to:

- Contribute investment capital to parent company for the formation of a new enterprise:

- Contribute capital, buy shares when organizations of the same Group or conglomerate of parent companies – subsidiary companies are equitized.

If  an  enterprise’s  outside  capital  investment  activity  fails  to  meet  the  regulations  on  structure  of investment, the member council of such enterprise shall be considered for accountability.

This Decree shall replace the decrees 142/2007/NĐ-CP and 44/2010/NĐ-CP .

3. Determination of damage to the environment

Manner and time for collection of data, evidence to determine damage to the environment are specifically defined in the Decree No.03/2015/NĐ-CP .  According to the Decree:

Data,  evidence  may  be  in  the  form  of  pictures,  audio,  video  and  data  collected  from  observation, measurement, analysis, remote sensing, geographical information system and other forms.

Collection  of  data  and  evidence  should  be  done  at  the  time  when  the  environmental  pollution  or degradation reaches its peak since it happened or at a point of time when the environmental pollution or degradation is detected.

It is also regulated that any act causing environmental pollution and degradation that results in damage to the environment is committed before January 01, 2015 without any compensation being made, the determination of damage and compensation shall be done under this Decree.

The Decree 03 replaces the Decree 113/2010/NĐ-CP .

4. Maximum discount of 5% over sale of wholly state-owned enterprises

The Decree 128/2014/NĐ-CP on sale and transfer of wholly state-owned enterprises is expected to speed up re-arrangement of state-owned enterprises in the coming time. If the purchase of whole or part of an enterprise is paid a lump sum by a buyer, such buyer shall enjoy a maximum discount of 5% over the sale.

If the auction (the right to purchase an enterprise, or part of an enterprise) is won by a collective of employees or only one employee in the enterprise registers for the purchase, a maximum discount of 15% is given.

The aforesaid sale price is not inclusive of land use right value but does not exceed current ownership capital in the enterprise or part of the enterprise.

The Decree 128 replaces the Decree 109/2008/NĐ-CP .

5.  Payment for repatriating crewmembers

Ship owners shall be responsible for paying expenses concerning repatriation of crewmembers, including:

- Transporting crewmembers to their destination of repatriation;

- Accommodation for crewmembers from the time of disembarkation until they reach their destination of repatriation;

- Pay and travel allowance for crewmembers from the time of disembarkation until they reach their destination of repatriation;

- Expenses for transport of up to 30 kilograms of personal luggage to their destination of repatriation;

- Expenses for the provision of necessary healthcare to crewmembers until they are healthy enough to go to their destination of repatriation.

This issue is regulated in the Decree 121/2014/NĐ-CP .

6. International legal cooperation

Decree 113/2014/NĐ-CP on international cooperation on legislation has specified the principles for implementing international legal cooperation activities as follows:

- Comply with the Vietnamese constitution and legislation in accordance with the International Agreements to which Vietnam is a signatory, ensuring independence, unification, territorial integrity, national security and social order.

- Ensure openness, transparency and accountability in the implementation of international legal cooperation.

- Show equality and do not interfere in each other’s internal affairs.

- Ensure efficiency, practicality and no repetition.

- Ensure compliance with the law, efficiency in the receipt, management and use of ODA, concessional loans from sponsors, foreign non-governmental aid in the international legal cooperation.

- The construction, approval, management and implementation of programs and projects, non-project assistance on legal affairs must comply with the provisions set out in this Decree, regulations on management, use of ODA, concessional loans from sponsors, foreign non-governmental aid and other relevant legal documents.

The Decree 113 replaces the Decree 78/2008/NĐ-CP .

7. Advertisements for milk as a substitute for breast-milk prohibited

On November 06, 2014, the Government promulgates the Decree 100/2014/NĐ-CP regulating the business and use of dietary products for children, baby-bottles and artificial nipples. Advertisements for the following products are strictly prohibited:

- Any kind of milk as substitutes for breast-milk for children under 24 months old;

- Supplements for children under six months old;

- Baby-bottles and artificial nipples in any shape or form;

- Use of images of fetuses or newborns in the advertisement for milk product for pregnant women

The Decree 100 replaces the Decree 21/2006/NĐ-CP .