Lawyer in Vietnam Oliver Massmann - Legal Update June 2016

1. Lawyer in Vietnam Oliver Massmann - Legal Update June 2016
1. Decree No. 37/2016/ND-CP issued by the Government detailing and guiding the
implementation of some articles of Law on Occupational Safety and Health with respect to
compulsory occupational accident and disease insurance (“Decree 37”)
Issuance Date: 15 May 2016
Effective Date: 1 July 2016
Vietnamese employees subject to compulsory occupational accident, disease insurance include:
(i) employees working under indefinite term labor contracts and labor contracts with term of full
three (3) months or more;
(ii) managers of enterprises being paid salary; and
(iii) employees working under labor contracts with term of between one (1) month and under three
(3) months.*
Every month, employers will pay an amount equal to 1% of the payroll into the Occupational accident
and disease Insurance Fund as the social insurance contribution for the employees. From 01 January
2018, the Government will lower this fee.
Duration of social insurance premium payment until 30 June 2016 will be calculated as duration of
occupational accident and disease insurance payment under this Decree 37, excepting those who only
participate in retirement fund and survivorship fund under regulations on social insurance.
*
Decree 37 will apply for employees working under labor contract with term of between one (1) month
and under three (3) months from 01 January 2018, i.e. be enforceable later than the other covered
objects.
2. Decree No. 39/2016/ND-CP issued by the Government detailing the implementation of some
articles of the Law on Occupational Safety and Health (“Decree 39”)
Issuance Date: 15 May 2016
Effective Date: 1 July 2016
Once coming into effect, Decree 39 will repeal (i) Articles 9-14 of the Government’s Decree No.
45/2013/ND-CP elaborating a number of articles of the labor code on working hours, rest hours,
occupational safety and occupational hygiene; and (ii) Article 34.6(a)(b)(c) of the Government’s Decree
No. 59/2015/ND-CP on construction project management.
Generally speaking, Decree 39 guides in detail some articles of the Law on Occupational Safety and
Health with respect to:
(i) the control of harmful, dangerous factors at the workplace;
(ii) the notification, investigation and report of labor accidents, technological problems causing
unsafe, unhygienic workplace;

2. (iii) the occupational safety and health for special employees;
(iv) the occupational safety and health for business, production establishments; and
(v) the state management of occupational safety and health.
The employers are obliged to identify and assess harmful and dangerous factors as a basis to determine
the aims and suitable measures for controlling and preventing the effects of these factors at the
workplace. The employers are also responsible for monitoring, evaluating the effect of such measures at
least once a year.
Decree 39 expressly classifies labor accidents that cause (i) death or (ii) serious injuries or (iii) minor
injuries to the employees into specific circumstances.
Notably, once being aware of labor accidents, the employers are required to establish an internal
investigation team. Expenses for investigating labor accidents paid by the employers will be accounted
into the business, production costs and are reasonable expenses for the calculation and payment of
Corporate Income Tax.
In addition, the employers have to keep records of all labor accident dossiers. Any complaint or
denunciation for labor accidents must be made within ninety (90) days from the announcement date of
labor accident investigation minutes.
Decree 39 also introduces conditions on recruitment of elderly employees who perform heavy and/or
dangerous tasks. An employer is permitted to hire each elderly employee for maximum five (5) years
and is required to hire at least one (1) employee who is not an elderly to perform the same job at the
working place to support work of the elderly employee, where necessary.
Based on the quantity of employees and the sector of operation, the business, production establishment
must have 1-3 occupational safety and health officer(s). The arrangement of the Internal Health Division
is also based on the above scale.
3. Decree No. 50/2016/ND-CP issued by the Government on administrative sanctions for
violations in the planning and investment sector (“Decree 50”)
Issuance Date: 1 June 2016
Effective Date: 15 July 2016
From 15 July 2016, acts of violating regulations on investment in infrastructure system of industrial
zones, export processing zones, hi-tech zones and economic zones will no longer be sanctioned under
the regulations on administrative sanctions for violations in the planning and investment sector. Instead,
these acts will be governed under the regulations on administrative sanctions for violations in the public
and business investment sector in Vietnam and in the bidding sector.
According to Decree 50, a number of violations against regulations on investment and bidding are
amended and supplemented, namely:

3. (i) Establishment or termination of the operation of foreign investors’ Management offices in BCC
contracts without registration or notification with investment registration agencies where the
Management offices are located;
(ii) Failure to carry out the procedures for registration of capital contribution, share purchase as
well as contributed capital purchase of economic organizations;
(iii) Violations against regulations on investor collection plan; etc.
Notably, violations against regulations on time limit for registration of changes in enterprise registration
contents may be subject to a monetary sanction of up to VND15,000,000 (approximately US$667).
Decree 50 also specifically stipulates the competence for administrative violation sanction of Taxation
agencies, planning and investment inspectorates, taxation inspectorates. It is worth noting that Market
Management agencies are now also entrusted with administrative violation handling. .
4. Circular No. 23/2016/TT-NHNN issued by the State Bank of Vietnam dated 30 June 2016 on
amending and supplementing a number of articles of the State Bank of Vietnam’s Circular No.
16/2010/TT-NHNN regarding the implementation of Government’s Decree No. 10/2010/ND-
CP on credit information-related activities (“Circular 23”)
Issuance Date: 1 June 2016
Effective Date: 15 July 2016
Circular 23 adds the following persons into the management staff of a credit information company:
(i) chairperson of the Members’ Council;
(ii) chairperson of the Board of Directors;
(iii) president of the company; and
(iv) other managers who exercises the authority to execute the company’s transactions on behalf of
the company as set out in the company’s charter.
In addition, Circular 23 amends and supplements Article 5 of the State Bank of Vietnam’s Circular No.
16/2010/TT-NHNN regarding the application dossier for obtaining the Certificate of eligibility for credit
information-related activities.
5. Circular No. 83/2016/TT-BTC issued by the Ministry of Finance guiding the implementation of
investment incentives under the regulations of the Law on Investment 2014 and the
Government’s Decree No. 118/2015/ND-CP guiding the Law on Investment 2014 (“Circular
83”)
Issuance Date: 17 June 2016
Effective Date: 1 August 2016

4. To provide clearer guidance on the implementation of incentives for those who are entitled to
investment incentives under the Law on Investment 2014 and the Government’s Decree No.
118/2015/ND-CP guiding Law on Investment, Circular 83 expressly addresses specific examples for each
incentive circumstances , e.g. Corporate Income Tax, import duty and non-agricultural land use tax.
Namely, investment projects on hotels, offices, rent apartments, houses, technical services, commercial
centers, supermarkets, golf grounds, tourist areas, sport areas, amusement parks, establishments of
medical examination and treatment, education, culture, finance, banking, insurance, audit and
consultancy services with imported equipment or products mentioned under the Appendix II of the
Government’s Decree No. 87/2010/ND-CP will be exempted from import duty at the first time of
importation. It is worth noting that only goods imported to create fixed assets of these projects will be
entitled to this duty exemption.
***
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you have
any questions or want to know more details on the above. Oliver Massmann is the General Director of
Duane Morris Vietnam LLC.
THANK YOU !