The following socio-economic policies will come into effect from September 2024: the principle of converting state-owned enterprises into single-member limited liability companies; new regulations on salary scales for workers in state-owned enterprises; and more.
Principle of Converting State-owned Enterprises into Single-Member Limited Liability Companies
Decree 89/2024/ND-CP, effective from September 1, 2024, regulates the conversion of state-owned enterprises established and operating under the Enterprise Law into single-member limited liability companies organized and operating under the Enterprise Law.
The conversion must follow the principle that the single-member limited liability company inherits all the legitimate rights and interests of the state-owned enterprise or its unconverted subsidiaries. It can also use all the assets, labor, and land area managed by the converted company to organize production and business activities as prescribed by law.
The single-member limited liability company is responsible for the obligations of the state-owned enterprise or its unconverted subsidiaries, including unpaid debts, labor contracts, and obligations in land management as prescribed by land law, among other responsibilities.
The branches, representative offices, and business locations of the single-member limited liability company inherit all the rights and obligations of the branches, representative offices, and business locations of the state-owned enterprise and its unconverted subsidiaries.
Amendment to the Regulations on the Rights and Responsibilities of the Representative Agency of the Owner in Managing the Officers of Enterprises with 100% State-owned Capital
Decree 97/2024/ND-CP, effective from September 10, 2024, amends and supplements Decree 10/2019/ND-CP on the implementation of the rights and responsibilities of the state-owned capital representative agency. It modifies the regulations on the rights and responsibilities of the representative agency of the owner in managing the officers of enterprises with 100% state-owned capital with regard to inspectors.
Accordingly, the decision on planning, appointing, re-appointing, resigning, dismissing, transferring, rotating, rewarding, disciplining, terminating, and retiring inspectors shall comply with the law.
Based on the enterprise’s scale, the state-owned capital representative agency decides to establish an Inspection Board with one to five inspectors. If the Inspection Board has only one inspector, that inspector shall also be the Chief Inspector and must meet the qualifications of the Chief Inspector.
The state-owned capital representative agency selects and decides to appoint officials and civil servants under its management as inspectors and is responsible for arranging suitable work for officials and civil servants who are no longer inspectors.
Credit Policy for Providing Clean Water and Sanitation in Rural Areas
The Prime Minister has issued Decision 10/2024/QD-TTg, dated July 15, 2024, on credit policies for providing clean water and sanitation in rural areas, including regulations on subjects, loan amounts, loan methods, and more. It will come into effect on September 2, 2024.
Subjects and Conditions for Borrowing:
– Borrowing subjects: Households residing in rural areas where they are registered for permanent or temporary residence (hereinafter referred to as customers).
– Borrowing conditions: Customers residing in rural areas that do not have water supply works, household sanitation works, or have works that are damaged and need to be newly built, upgraded, renovated, or repaired.
Accordingly, Articles 4, 5, and 6 of Decision 10/2024/QD-TTg stipulate:
Loan Methods:
The Social Policy Bank, where the loan is made, lends to customers through the form of entrusting political-social organizations.
Loan Amounts
– The maximum loan amount is VND 25 million/01 work/customer.
– Customers can borrow capital to invest in two types of water and sanitation works for their households, but the total outstanding debt for each type of work must not exceed the maximum loan amount for each type of work.
Loan Term and Interest Rate
– The loan term is agreed upon between the Social Policy Bank and the customer but must not exceed five years (60 months).
– The interest rate for borrowing is 9.0%/year.
– The interest rate for overdue debt is 130% of the borrowing interest rate.
Regulations on Prohibited Acts in the Temporary Suspension of Circulation, Sealing, Sealing, Detention, and Handling of Money and Property Related to Terrorism and Terrorist Financing
The Government issued Decree 93/2024/ND-CP, dated July 18, 2024, amending Decree 122/2013/ND-CP, providing for the temporary suspension of circulation, sealing, sealing, detention, and handling of money and property related to terrorism and terrorist financing; establishing a list of organizations and individuals related to terrorism and terrorist financing, which took effect on September 1, 2024.
Accordingly, Clause 5, Article 1 of Decree 122/2013/ND-CP has amended and supplemented Article 5 of Decree 122/2013/ND-CP on prohibited acts as follows:
– Taking advantage of the delay in transactions, temporary suspension of circulation, sealing, sealing, detention, and handling of money and property related to terrorism and terrorist financing; establishing a list of organizations and individuals related to terrorism and terrorist financing to infringe on the interests of the State and the legitimate rights and interests of agencies, organizations, and individuals.
– Disclosure of the time, place, and content of mail that has been opened, inspected, sealed, and temporarily detained under the provisions of this Decree and the law on safeguarding national security and social order and safety.
– Facilitating, aiding, mobilizing, and supporting directly or indirectly, in part or in whole, money, property, financial and economic resources, and other financial and other services to organizations and individuals related to terrorism and terrorist financing; organizations and individuals acting on behalf of, under the influence of, owned by, controlled by, authorized by, or directed by organizations and individuals related to terrorism and terrorist financing.
New Regulations on Salary Scales, Salary Scales, and Allowances for Employees in State-owned Enterprises
Circular No. 06/2024/TT-BLDTBXH, effective from September 15, 2024, amends and supplements Circular No. 26/2016/TT-BLDTBXH, guiding the implementation of labor management, salaries, and bonuses for employees working in single-member limited liability companies with 100% state-owned capital.
Supplementing Article 9a on salary scales, salary scales, and allowances for employees in single-member limited liability companies with 100% state-owned capital (state-owned enterprises) is as follows:
– Based on the organization of production and labor, the company shall review and decide to continue to maintain or amend, supplement, or build and promulgate new salary scales, salary scales, and allowances (accompanied by applicable standards), ensuring the provisions of Clause 2, Article 9a of Circular No. 26/2016/TT-BLDTBXH (amended and supplemented by Circular No. 06/2024/TT- BLDTBXH) as a basis for ranking, paying salaries, and implementing regimes for employees under the provisions of labor law.
– The salary levels in the salary scales, salary scales, and allowances are decided by the company, ensuring that the total salary fund is determined on the basis of the total salary of all employees calculated according to the salary levels in the salary scales, salary scales, and allowances of the company, not exceeding the planned salary fund of employees under the provisions of Circular No. 26/2016/TT- BLDTBXH (amended and supplemented by Circular No. 06/2024/TT-BLDTBXH).
– When amending, supplementing, or building and promulgating new salary scales, salary scales, and allowances, the company must consult the opinion of the representative organization of employees at the grassroots level, organize dialogues at the workplace as prescribed by the Labor Code and guiding documents, report to the state-owned capital representative agency for opinions, and publicize it within the company before implementation.
Guidance on the Method of Setting the Average Electricity Selling Price
The Ministry of Industry and Trade has issued Circular No. 09/2024/TT-BCT, dated July 30, 2024, regulating the calculation of the average electricity selling price. The Circular officially came into effect on September 14, 2024.
Circular 09/2024/TT- BCT guides the Vietnam Electricity Group (EVN) to calculate the average electricity selling price according to the regulations in Article 4 of Decision No. 05/2024/QD-TTg, dated March 26, 2024, of the Prime Minister on the mechanism for adjusting the average retail electricity price.
The Circular consists of three chapters and 15 articles, applying to EVN and its member units, organizations, and individuals related to the calculation of the average electricity selling price. It provides detailed guidance on the method of setting the average electricity selling price annually and within the year, as well as the calculation formula to determine the final electricity price.
Accordingly, the average electricity selling price annually and within the year is calculated based on the costs of the power generation stage, the cost of transmission service, the cost of auxiliary services for the power system, the cost of purchasing distribution-retail electricity services, the cost of power system dispatch and electricity market transaction management services, and the cost of industry management and administration.
To provide a basis for calculation, the Circular also guides in detail the method of calculating the total cost of the stages: power generation; transmission; auxiliary services for the power system; distribution-retail electricity services; power system dispatch and electricity market transaction management services; industry management and administration costs, and standard profit…
The Electricity Regulatory Authority is responsible for coordinating with relevant agencies to report to the Minister of Industry and Trade on the inspection, review, and supervision of the average electricity selling price scheme built and adjusted by the Vietnam Electricity Group under the provisions of Decision No. 05/2024/QD-TTg.
The Vietnam Electricity Group is responsible for implementing the regulations in Decision No. 05/2024/QD-TTg and the provisions of this Circular.
Guidance on Management of Deposit for Environmental Restoration in Mineral Exploitation
The Ministry of Finance has just issued Circular No. 57/2024/TT-BTC, dated August 1, 2024, guiding the management and use of the deposit for environmental improvement in mineral exploitation and waste burial activities at the Environmental Protection Fund. The Circular took effect on September 14, 2024.
According to the Circular, the depositor is an organization or individual engaged in mineral exploitation and waste burial activities as prescribed by the Law on Environmental Protection and its guiding documents. The deposit-receiving organization is the Environmental Protection Fund.
The deposit is the amount of money that the depositor sends to the deposit-receiving organization to ensure the responsibility for carrying out the items of environmental improvement and handling risks and environmental pollution risks arising from mineral exploitation and waste burial activities according to the law and this Circular.
The deposit-receiving organization must deposit the entire deposit amount into a separate deposit account opened at a commercial bank. The deposit account is independent of the deposit-receiving organization’s other accounts at the commercial bank and keeps a detailed record of the deposit and interest arising from the deposit of each project, organization, and individual depositor…
Amendment to the Regulations on Foreign Currency Purchase and Sale between Official Foreign Exchange Reserves and the State Budget
The State Bank of Vietnam (SBV) has issued Circular No. 43/2024/TT-NHNN, dated August 9, 2024, amending and supplementing a number of articles of Circular No. 01/2014/TT-NHNN, dated December 10, 2014, guiding the implementation of the management of official foreign exchange reserves. The Circular took effect on September 23, 2024.
Circular No. 43/2024/TT-NHNN amends and supplements Article 9 of Circular No. 01/2014/TT-NHNN on foreign currency purchase and sale between official foreign exchange reserves and the state budget as follows:
– Purchase of foreign currency from the state budget:
Based on the annual foreign currency sales plan of the state budget and the written request for foreign currency sales of the Ministry of Finance and/or the written direction of the Prime Minister, the State Foreign Exchange Reserve Management Department shall purchase foreign currency to supplement the official foreign exchange reserves from the state budget at the prescribed exchange rate.
– Sale of foreign currency to the state budget:
Based on the written request for foreign currency purchase of the Ministry of Finance to meet the foreign currency demand of the state budget, the State Foreign Exchange Reserve Management Department shall coordinate with the Monetary Policy Department to build a plan to balance the sale of foreign currency to the state budget, submit it to the Governor of the State Bank for approval, and notify the Ministry of Finance.
Based on the approved foreign currency balance plan, the State Foreign Exchange Reserve Management Department shall sell foreign currency to the state budget at the prescribed exchange rate.
– Foreign exchange buying and selling rates of the State Bank:
In case of buying and selling US dollars, the foreign exchange buying and selling rates are equal to the buying and selling rates in the intervention plan. If there is no intervention plan at the time of the transaction or if the intervention plan does not have the content of the spot buying and selling rates, the buying and selling rates shall be applied according to the central exchange rate announced by the State Bank applicable to the transaction date.
In case of buying and selling foreign currencies other than US dollars, the buying and selling exchange rates shall be applied on the basis of the cross rate of the exchange rate determined at the above point and the average buying and selling rate between that foreign currency and US dollars quoted on the international foreign exchange market through the Refinitiv or Bloomberg information network before 10:00 am on the transaction date.
Supplementing Common Requirements for Local Science and Technology Tasks of National Significance Using the State Budget
On July 9, 2024, the Minister of Science and Technology issued Circular No. 05/2024/TT-BKHCN, amending Circular No. 17/2015/TT-BKHCN, regulating the management of local science and technology tasks of national significance using the state budget, which took effect on September 1, 2024.
Accordingly, Circular No. 05/2024/TT-BKHCN supplements the following common requirements for local science and technology tasks of national significance using the state budget:
The time for the approval procedure for implementing local science and technology tasks of national significance, from the time the Ministry of Science and Technology receives the task proposal of the Provincial People’s Committee to before the time of signing the contract to implement the science and technology task, must not exceed one year.
After one year, if the task has not been signed for implementation, the local science and technology task of national significance needs to be reassessed for its urgency and novelty before proceeding with the signing of the contract for implementation.
To reassess the urgency and novelty of the task, the Ministry of Science and Technology shall send a written request to the Provincial People’s Committee, where the local issue of science and technology of national significance arises, to confirm that the issue of science and technology remains urgent. Upon receiving the written confirmation of the Provincial People’s Committee, the specialized unit of the Ministry of Science and Technology shall seek the opinions of at least three experts who are members of the Council for the Identification of Science and Technology Tasks on the same issue of science and technology of national significance proposed.
Among the experts whose opinions are sought, there must be the Chairman or Vice Chairman of the Council. Local science and technology tasks of national significance will continue to be implemented when the experts
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
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