Update on new regulations in February 2025

Our Newsletter #31 would lead you on the following:

LEGAL UPDATE

I. Regulations on the development of renewable energy and new energy electricity

On 30 November 2024, the National Assembly issued Law on electricity No. 61/2024/QH15 (“Law on Electricity 2024”), effective from 01 February 2025, with several important provisions on the development of renewable energy and new energy electricity as follows:

1. Renewable energy and new energy electricity projects

According to the Law on Electricity 2024, renewable energy and new energy electricity projects are determined by their production sources. Specifically:

1. Renewable energy refers to electricity produced from one or more of the following primary energy sources:
   1. Solar energy;
   2. Wind energy;
   3. Ocean energy, including tides, waves, and ocean currents;
   4. Geothermal energy;
   5. Energy from water power, including hydroelectricity;
   6. Biomass energy includes biofuels and other forms of energy derived from plants;
   7. Energy from waste from production, business and daily activities, except waste from production and business processes that use fossil fuels and waste determined to be hazardous according to the provisions of law on environmental protection; and
   8. Other forms of renewable energy as prescribed by law.
2. New energy electricity refers to electricity produced from one or more of the following sources:
   1. Hydrogen is produced from solar, wind, ocean and geothermal energy sources (“Green Hydrogen”);
   2. Ammonia is produced from solar, wind, ocean and geothermal energy sources (“Green Ammonia”); and
   3. Other forms of new energy as prescribed by law.

2. Principles for developing renewable energy and new energy electricity

According to the Law on Electricity 2024, the development of renewable energy and new energy electricity shall comply with the following principles:

1. Ensuring electricity supply security and the safety of the electrical system;
2. Developing in regions, areas and localities with potential and advantages in renewable energy and new energy and in sync with infrastructure development of the electricity system; ensuring environmental requirements and aligning with the socio-economic conditions of the development area;
3. Ensuring the synchronization of training and developing plans for human resources participating in research and activities in the field of renewable energy, new energy, and moving towards technological self-reliance in appropriate stages;
4. Prioritizing the efficient exploitation and use of renewable energy and new energy sources to exploit sustainably and reasonably natural resources and ensure national energy security and serve electricity export;
5. Prioritizing the development of large electricity source projects to form factory clusters or renewable energy centers to promote natural advantages and grid infrastructure, in accordance with the capacity to release electricity and the operational requirements of the national electricity system in each region and locality, according to the conditions and technological level of each period;
6. Encouraging appropriate development of rooftop solar electricity, surface solar electricity, and irrigation reservoir lakes; and prioritizing development on the water surface of existing hydropower reservoirs, without the need for new transmission grid investments; and
7. Prioritizing the development of offshore wind electricity sources in conjunction with ensuring national defense and security, and maintaining national sovereignty over borders, seas and islands.

3. Regulations on encouraging the development of renewable energy and new energy electricity

The Law on Electricity 2024 includes regulations to encourage the development of renewable energy and new energy electricity, as follows:

1. Encouraging organizations and individuals to invest in wind and solar electricity projects combined with investments in electricity storage systems or the production of Green Hydrogen and Green Ammonia to serve electricity generation and use activities;
2. Developing electricity from renewable energy and new energy sources creates a foundation for transforming the electricity structure towards low carbon, achieving the goal of reducing emissions and ensuring the development of sustainable electricity system;
3. The planning and investment in the development of offshore wind electricity projects are prioritized as follows:
   1. Project for electricity production for supplying electricity to the national electricity system;
   2. Self-produced and self-consumed electricity projects or electricity projects for the production of Green Hydrogen, Green Ammonia and other needs to serve domestic needs; and
   3. Project for electricity production for exporting and production of Green Hydrogen and Green Ammonia for exporting.
4. Developing renewable energy and new energy electricity at sea in accordance with the priority order of developing marine economic sectors in each period.

II. Regulations on employees’ participation in health insurance

On 27 November 2024, the National Assembly issued Law No. 51/2024/QH15 amending and supplementing several provisions of the Law on Health Insurance (“Law on Health Insurance amended 2024”), which takes effect on 01 July 2025, with some notable contents on employees’ participation in health insurance as follows:

1. New health insurance contribution rate for employees

According to the Law on Health Insurance amended 2024, the health insurance contribution of employees is determined based on a percentage of the salary used as the basis for mandatory social insurance contributions as stipulated by the Social Insurance Law (“Monthly Salary”), pension salary, allowances, or reference level.

Compared to the Law on Health Insurance 2008, in addition to being determined based on a percentage of monthly salary, pension salary, and allowances, the health insurance contribution rate is also determined by reference level, instead of the previous regulation that used the base salary.

2. Health insurance payment period

The Law on Health Insurance amended 2024 has supplemented provisions on the latest health insurance payment deadlines for employers as follows:

1. The last day of the following month for monthly payment methods; or
2. The last day of the following month after the contribution cycle for payments made every 03 months or 06 months.

3. Regulations on late payment or evasion of health insurance payment and handling measures

3.1. Cases of late health insurance payment

The Law on Health Insurance amended 2024 has supplemented provisions on identifying employers committing late health insurance payment if they fall under one of the following cases:

1. Failing to pay or paying an insufficient amount of health insurance contribution after the latest health insurance payment deadline as prescribed by law, except in the case specified in Item II.3.2.(iii) below;
2. Failing to prepare or preparing an incomplete list of individuals required to participate in health insurance within 60 days from the expiration of the 30-day period from the date they are identified as eligible to participate in health insurance; and
3. Case not considered as health insurance evasion according to the Item II.3.2.

3.2. Case of health insurance evasion

The Law on Health Insurance amended 2024 has also supplemented provisions identifying employers as having committed health insurance evasion if they fall under one of the following cases:

1. After 60 days from the expiration of the 30-day period, the employer fails to prepare or prepares an incomplete list of individuals required to participate in health insurance;
2. Registering a salary as the basis for paying health insurance lower than the prescribed salary;
3. Failing to pay or paying an insufficient amount of registered health insurance contributions after 60 days from the latest health insurance payment deadline as prescribed and having been urged by the competent authority as per government regulations; and
4. Other cases considered as health insurance evasion according to government regulations.

Note that the above cases may not be considered health insurance evasion if there are legitimate reasons.

3.3. Handling measures

1. For late health insurance payments, handling measures include:
   1. Compulsory payment of the full overdue amount; payment of 0.03% per day on the overdue health insurance amount and the number of overdue days into the health insurance fund;
   2. Administrative penalties as prescribed by law;
   3. Exclusion from consideration for emulation titles or awards.
2. For health insurance evasion, handling measures include:
   1. Compulsory payment of the full evaded amount; payment of 0.03% per day on the evaded health insurance amount and the number of evaded days into the health insurance fund;
   2. Administrative penalties or criminal prosecution as prescribed by law;
   3. Exclusion from consideration for emulation titles or awards.
3. Agencies, organizations, and employers who delay or evade paying health insurance for employees shall fully reimburse the costs of medical examination and treatment within the scope of benefits and levels of health insurance that employees have paid for during the period without a health insurance card due to late payment or evasion.

III. Regulations on environmental protection fees for emissions

On 21 November 2024, the Government has issued Decree No. 153/2024/ND-CP regulating environmental protection fees for emissions (“Decree 153”) with several notable contents as follows:

1. Entities subject to the environmental protection fee for emissions and payers

1.1. Entities subject to the environmental protection fee for emissions

Entities subject to the environmental protection fee for emissions, including dust and industrial exhaust released into the environment, shall be treated by projects, production facilities, businesses, and services that are required to have an environmental permit according to laws on environmental protection, which include provisions for emission permits (“Emission Facilities“).

According to Decree 153, Emission Facilities include:

1. Iron, steel, and metallurgy production facilities (excluding rolling, drawing, and casting from raw materials);
2. Basic inorganic chemical production facilities (excluding industrial gases), inorganic fertilizers and nitrogen compounds (excluding blending, extraction, packaging), chemical pesticides (excluding blending, extraction);
3. Refining and petrochemical facilities;
4. Recycling and treatment facilities for household solid waste, ordinary industrial solid waste, and hazardous waste; using scrap imported from abroad as production materials;
5. Coke production facility, coal gas facilities;
6. Thermal power plant;
7. Cement production facility; and
8. Other facilities, businesses, and service establishments that generate dust and industrial emissions not included in the above items.

1.2. Payers of environmental protection fees

According to Decree 153, the payers of environmental protection fees for emissions are Emission Facilities listed in Item III.1.1 above.

2. Environmental protection fee rates

According to Decree 153, the environmental protection fee for emissions from 05 January 2025, is as follows:

1. For facilities discharging emissions that are not subject to emission monitoring
   1. Fixed fee rates (f): VND3,000,000/year. If the fee payer pays quarterly, the fee calculated for 01 quarter is f/4;
   2. In the case of new emission facilities commencing operations from the effective date of Decree 153 or emission facilities already in operation before 05 January 2025:
      • The payable fee = (f/12) x chargeable period (months)
2. For facilities discharging emissions that are subject to emission monitoring
   1. Fixed fee rates (f) comply with regulations stated in Item III.2.(i) above.
   2. The variable fee rates for environmental pollutants in emissions are as follows:
      • For the environmental pollutant that is dust, the fee is VND800/ton;
      • For the environmental pollutant that is NOx (including NO2 and NO), the fee is VND800/ton;
      • For the environmental pollutant that is SOx, the fee is VND700/ton;
      • For the environmental pollutant that is CO, the fee is VND500/ton;
      • At each emission line of Emission Facilities, the average concentration of an environmental pollutant in the exhaust gas (calculated during the fee payment period) is lower than 30% of the concentration of that substance as specified in the environmental technical regulation on exhaust gas or local government regulations (if any): The variable fee for that substance is set at 75% of the fee payable calculated according to the formula for determining the variable fee for each environmental pollutant in the emission stream; and
      • At each emission line of Emission Facilities, the average concentration of an environmental pollutant in the emissions (calculated during the fee payment period) is lower by 30% or more compared to the concentration of that substance specified in the environmental technical regulation on emissions or local government regulations (if any): The variable fee for that substance is set at 50% of the fee payable, calculated according to the formula for determining the variable fee for each environmental pollutant in the emission stream.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. We would love to hear from you.

Date: 26 February 2025

Writer: BLawyers Vietnam

Legal News and Update Team

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CONTACT US

✍ Legal News and Update Team
📩 legalnews@blawyersvn.com

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Newsletter #31 (EN version)

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