New prominent regulations of Vietnam in effect from October, 2016

1. Guideline for preparing EPC bidding documents

Circular  No. 11/2016/TT-BKHDT of the Ministry of Planning and Investment on guideline for preparing  bidding documents for engineering-procurement of goods-construction (EPC) takes effect as from 01 October 2016. Accordingly:

– This Circular guides the preparation for EPC bidding documents under the projects defined in Article 1 of Law on Bidding 2013.

– With regard to EPC package financed by ODA, the forms of bidding documents enclosed to this Circular shall be applicable if endorsed by sponsors.

– Principles on applying the forms of bidding documents and taxes, fees and charges applicable for EPC package are also provided.

– In addition, Circular No. 11/2016/TT-BKHDT is enclosed with a detailed diagram of EPC package execution process and forms of EPC bidding documents.

2. Increasing allowances for participants in a hearing for a competition proceeding

Vietnam’s Prime Minister promulgated the Decision No. 35/2016/QD-TTg on allowances for members of the Competition Council, organizers of and participants in competition proceedings.

Accordingly, the allowances for individuals who organize or participate in a hearing for a competition proceeding is higher than that defined in the Decision No. 82/2010/QD-TTg, as follows:

– President of the hearing is granted VND 150,000 per day.

– Member of the Council settling the competition proceeding, investigator, examiner or testifier invited or summoned by the Council is granted VND 100,000 per day.

– Interpreter invited to the Council to provide translation services in the hearing shall be granted allowance(s) according to regulations on translation expenditure.

– Examiner, translator and testifier invited by the Council to the hearing shall be compensated for travel expense.

Moreover, participants in discussions and meetings for settlement of competition proceedings and complaints shall be granted allowance(s) according to the Decision.

Decision No. 35/2016/QD-TTg takes effect as of 10 October 2016.

3. Regulations on environmental protection report

Vietnam Department of Natural Resources and Environment issued Circular No. 19/2016/TT-BTNMT on environmental protection report. Accordingly, environmental protection report of the Ministries or ministerial-level agencies includes the following contents:

– General assessment of contamination sources, negative impact on environment, specific types of waste and major environmental issues (if any) in the sectors of the ministries or ministerial-level agencies;

– The situation, results of state management on environmental protection:

+ Organization and resources for environmental protection;

+ Promulgation of policies and legal regulations on environmental protection;

+ The performance of State management on environmental protection as stipulated in Clause 3, Article 142 and related others of Law on environmental protection and its implementation guidelines;

+ Plan on environmental protection in next year and proposals.

Decision No. 19/2016/QD-TTg takes effect as of 10 October 2016.

4. Conditions for imposing VN-EAEU FTA preferential tariffs

Decree No.  137/2016/ND-CP is issued Special Preferential Import Tariffs between Vietnam and Europe-Asian Economic Union and its member countries (VN-EAEU FTA tariff) in the period of 2016 -2018. Accordingly:

– Imported goods to be imposed VN-EAEU FTA tariff must meet the following conditions:

– Belonging to Special Preferential Import Tariffs enclosed to this Decree.

– Being imported into Vietnam from the below countries:

+ Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russian Federation.

+ Other members of Europe-Asian Economic Union.

+ Vietnam (in case of goods imported from duty free area into domestic market).

– Being transported directly from the above-mentioned exporting countries into Vietnam.

– Complying with the regulations on origin of goods in Free Trade Agreement between Vietnam and Europe-Asian Economic Union and its member countries, and having certificates of origin (C/O) in EAV form.

Decision No. 137/2016/QD-TTg takes effect as of 05 October 2016.

5. Increasing expenditure of mid-shift meals, salary advances of employees

This content is stipulated in Circular No. 26/2016/TT-BLDTBXH guiding labor management, salaries and bonuses of the employees working in the limited liability company with one member and 100% state capital. Whereby:

– The maximum expenditure of mid-shift meals of employees is increased to VND 730,000 per person monthly (the previously-stipulated maximum is not exceeding 680,000 VND per person monthly).

– The maximum salary advance is also increased to 85% of salary fund to be paid monthly for employees on the basis of the company’s production and business plan.

Moreover, this Circular also provides some criteria for determining salary (depending on actual requirements) as below:

+ Total revenue;

+ Total revenue minus total cost (without salary);

+ Profit;

+ Product;

+ Production, business efficiency indicators in line with the management characteristics of the company’s production and business.

Circular No. 26/2016/TT-BLDTBXH takes effect as of 15 October 2016 and the benefits indicated in this Circular are applied as from 01 January 2016.b