Vietnam Legal Newsletter on February 2023 (Labor, Bank, Energy)

Our Newsletter #7 would lead you on the following:

LEGAL UPDATE

I. Compensation by asset for employees working in dangerous, hazardous conditions

Ministry of Labor – Invalids and Social Affairs (“MOLISA”) issued Circular No. 24/2022/TT-BLDTBXH dated 30 November 2022 regulating the compensation by asset for employees working in dangerous, hazardous conditions with the following notable contents:

  • The employees shall be eligible for compensation when the two requirements below are fully met:
  1. The employees working in occupations are under lists of extremely arduous, hazardous, and dangerous occupations issued by the Minister of MOLISA.
  2. The employees are working in environments where at least 01 of the 02 factors below is met:
    • There is at least one dangerous or hazardous factor that fails to meet hygiene standards and regulations according to the Ministry of Health.
    • The employees make contact with at least 01 factors with a score of 4 or more under the group “Contact with sources of infectious diseases according to the Law on prevention and control of infectious diseases”.
  • Levels of compensation:
  1. Compensation shall be calculated based on standard daily allowance and has monetary value according to the following levels of compensation: Level 1: 13.000 VND; Level 2: 20.000 VND; Level 3: 26.000 VND; and Level 4: 32.000 VND.
  2. If the employees meet all requirements mentioned above, specific compensation levels for each occupation are prescribed under Appendix I attached to this Circular, and applied depending on the corresponding working hour.
  • This Circular takes effect from 01 March 2023.

II. One-way money transfer from Vietnam to abroad and payment, money transfer for other current transactions of residents being organizations and individuals

The State Bank of Vietnam issued Circular No. 20/2022/TT-NHNN dated 30 December 2022 on guidelines for one-way money transfer from Vietnam to abroad and payment, money transfer for other current transactions of residents being organizations and individuals with the following notable contents:

  • Cases of purchase, transfer, and carrying of foreign currency abroad for one-way money transfer purposes of organizations including:

i. Cases of purchase, transfer, and carrying of foreign currency abroad for sponsorship and aid

  • Sponsorship and aid according to commitments and agreements between the State, Government, local authorities, and foreign countries. Sponsorship and aid sources are funds from the budget or the money source of the sponsoring or aid organization itself;
  • Sponsorship and aid for overcoming consequences of natural disasters, epidemics, and wars. Sources of sponsorship and aid are voluntary contributions from domestic organizations and individuals and/or the money source of the sponsoring or aid organization itself;
  • Sponsorship for programs, funds, and projects established by domestic and/or overseas organizations to support and encourage development in the fields of culture, education (scholarship funding), and health. Sources of sponsorship are the source of the sponsoring organization itself.

ii. Cases of purchase, transfer, and carrying of foreign currency abroad for other purposes including:

  • Give rewards to non-residents who are overseas organizations and individuals participating in programs and contests held in Vietnam under relevant laws. The source of prize money is from non-residents being overseas organizations or individuals or residents being organizations;
  • One-way money transfer abroad for the following purposes from sponsorship sources received by non-residents being overseas organizations and individuals:
    • Allocate funding to overseas members to participate in scientific research projects in Vietnam and abroad;
    • Refund sponsorships for projects in Vietnam according to commitments and agreements with foreign parties.
  • Cases of purchase, transfer, and carrying of foreign currency abroad for one-way money transfer purposes of residents being Vietnamese citizens
  1. Residents being Vietnamese citizens may purchase, transfer and carry foreign currency abroad for the purposes of one-way money transfer specified in Article 7.2 of Decree No. 70/2014/ND-CP.
  2. The purchase, transfer, and carrying of foreign currency that are carried out by residents being Vietnamese citizens or legal representatives of Vietnamese citizens or relatives of Vietnamese citizens studying or receiving medical treatment abroad shall comply with the instructions of the authorized banks.

III. Inspection of electricity operations and use and settlement of disputes of the power purchase agreement

Ministry of Industry and Trade issued Circular No. 42/2022/TT-BCT dated 30 December 2022 regulating the inspection of electricity operations and use and settlement of disputes of the power purchase agreement (the “PPA”) with the following notable contents:

  • The PPA in this Circular refers to any of the following agreements (excluding agreements between units engaging in electricity operations that engage in the electricity generation market, competitive wholesale electricity, and the PPA from rooftop solar power systems):
    • The PPA for domestic or non-domestic purposes signed between electricity users (including large electricity users) and electricity retailers for the purpose of purchasing electricity for use;
    • Electricity wholesale and retail agreements signed between electricity retailers and electricity wholesalers for the purpose of buying electricity for resale to a third party (except for agreements between member units of Vietnam Electricity (“EVN”) or agreements between EVN and member units).
  • Procedures for settling disputes of the PPA:

i. Step 1: The disputing parties must negotiate by themselves;

ii. Step 2: If negotiation fails, either party has the right to send a written request to the Electricity Regulatory Authority or the Departments of Industry and Trade (the “Authority”) to settle the dispute according to its competence.

  • Within 05 working days from the date of receipt of the request for dispute settlement, the Authority shall inform the relevant parties. If the request for dispute settlement is rejected, the Authority must respond in writing and state the reason.
  • Within 20 days from the date of receipt of a valid dossier, the Authority is responsible for holding a conciliation meeting.
  • Within 05 days from the date of holding the conciliation meeting, the Authority is responsible for issuing a written notice of dispute settlement results.
  • For complicated cases, the organization of the conciliation meeting and the issuance of a written notice of the dispute settlement results shall not exceed 40 working days from the date of receipt of the valid dossier.

iii. Step 3: If either party disagrees with the settlement results of the Authority, they have the right to request commercial arbitration or initiate a lawsuit at Court for settlement.

PUBLISHED ARTICLES

  1. Money laundering and 03 notes for foreign investors who invest into Vietnam 
  2. What are derivative works? Copyright for derivative works?
  3. New electricity generation price for transitional wind and solar power plants – Rescue signal for renewable energy projects in Vietnam? 
  4. 04 musts for replacing household registration books being abolished from 01 January 2023 in Vietnam

PUBLISHED VIDEO

BLawyers Vietnam’s lawyers would like to provide 4 following issues:

1. Requirements for the investor to suspend the investment project
2. Requirements for the investor to suspend the investment project
3. Required documents
4. Penalties if failing to notify suspension of the investment project

UPCOMING EVENTS

VIETNAM – INDIA BUSINESS MEETING PROGRAM IN AGRICULTURE AND AQUACULTURE

Date of Event: 28 February 2023

Location: Hanoi

Hosting Organizations:

  • VCCI
  • FIEO

For more information, see at: Mời tham dự Chương trình Gặp gỡ doanh nghiệp Việt Nam – Ấn Độ trong lĩnh vực nông thủy sản (28.2.2023) (vcci.com.vn)

For downloading: 

Newsletter #7 (EN version)

Maybe you are interested in reading other Newsletters of BLawyers Vietnam: Newsletter on January 2022 / Newsletter on December 2022 

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