Monthly Newsletter of June 2022
According to the General Statistics Office, Viet Nam’s GDP was estimated to grow by 7.72 percent in the second quarter. This is the fastest growth pace in the second quarter during the dedication. With this growth rate, GDP expanded 6.42 percent in the first half of this year.
Foreign direct investment (FDI) flows to Viet Nam slipped 8.1 percent to nearly US$14.03 billion in the first half of 2022, with processing and manufacturing taking the lead with nearly US$8.84 billion.
Average CPI in the second quarter of 2022 increased by 2.96% compared to the second quarter of 2021. On average, in the first 6 months, CPI increased by 2.44% over the same period last year; core inflation increased by 1.25%.
Source: Online Newspaper of the Government of the Socialist Republic of Vietnam and The General Statistics Office of Vietnam
NEW LEGAL REQUIREMENTS
1. DECREE NO. 38/2022/ND-CP PRESCRIBING THE STATUTORY MINIMUM WAGES PAID TO EMPLOYEES WORKING UNDER EMPLOYMENT CONTRACTS
According to the decree, new statutory minimum wages would be changed as follow:
– Region I: 4,680,000 VND/month;
– Region II: 4,160,000 VND/month;
– Region II: 3,640,000 VND/month;
– Region IV: 3,250,000 VND/month;
The list of region-I, region-II, region-III and region-IV subregions is provided in the Appendix enclosed this Decree. Furthermore, some subregions would be changed to higher levels. In detail:
– From region-II to region-I: Ha Long City of Quang Ninh Province, Xuan Loc suburban districts of Dong Nai Province.
– From region-III to region-II: Quang Yen Town and Dong Trieu Town of Quang Ninh Province; Hoa Binh City and Luong Son suburban district of Hoa Binh Province; Vinh City, Cua Lo Town and two suburban districts of Nghe An Province, including Nghi Loc and Hung Yen; Hoa Thanh Town of Tay Ninh Province; Vinh Long City and Binh Minh Town of Vinh Long Province; Bac Lieu City of Bac Lieu Province.
– From region-IV to region-III: Suburban districts of Quang Ninh Province, including: Van Don, Hai Ha, Dam Ha and Tien Yen; Thai Hoa Town, Hoang Mai Town, and other suburban districts of Nghe An Province, including: Quynh Luu, Yen Thanh, Dien Chau, Do Luong, Nam Dan, Nghia Dan; Nghi Son Town of Thanh Hoa Province; Mang Thit suburban district of Vinh Long Province; Hoa Binh suburban district of Bac Lieu Province, etc.
Employees shall review and make appropriate modifications to their agreements in employment contracts, collective bargaining agreements as well as other regulations and rules; are not allowed to cut or reduce any overtime pay, night shift pay, perquisites and other benefits paid to employees as prescribed by the Labour Code. Agreements or commitments under employment contracts, collective bargaining agreements or other lawfully concluded agreements that are more advantageous to employees than the provisions of this Decree shall remain valid, unless otherwise agreed upon between the parties.
This Decree will come into force and replace the Decree No. 90/2019/ND-CP from July 01, 2022.
2. OFFICIAL DISPATCH NO. 2086/BLDTBXH-TLDLDVN IMPLEMENTING DECREE NO. 38/2022/ND-CP ON MINIMUM WAGE
Immediately disseminating, guiding employers and employees in provinces and cities to implement Decree No. 38/2022/ND-CP in a law-compliant manner while paying attention to:
- a) Policies and beneficiaries: minimum monthly wage and minimum hourly wage are the baseline upon which employees, trade unions, and employers agree as salary and pay for employees, in which.
– Minimum monthly wage applies to employees who are receiving monthly wages.
– Minimum hourly wage applies to employees who are receiving hourly wage.
– Regarding employees receiving other forms of wage payment (weekly, daily, by the piece), wages paid in this method shall be converted to those paid by the month or by the hour (pursuant to Point a and Point b, Clause 3 Article 4 of Decree No. 38/2022/ND-CP) without falling below minimum monthly wage or minimum hourly wage regulated by the Government. The conversion of the wages to monthly wage or hourly wage shall be decided by employers. The conversion results shall be used to examine compliance with minimum monthly wage or minimum hourly wage regulated by the Government. The Decree does not require payment methods between employers and employees to be changed.
- b) Responsibilities for implementation: Clause 3 Article 5 of Decree No. 38/2022/ND-CP regulates responsibilities of employers:
– Review clauses in employment contracts, collective employment agreements, regulations, rules ò employers in order to adjust accordingly; do not remove or reduce wage when employees work overtime, work at night, or perquisites, or other benefits according to employment laws.
– If details agreed upon or set forth under employment contracts, employment agreements, or other legal agreements are more beneficial to employees than this Decree is, continue to follow said details unless otherwise agreed upon by the parties. According to the previously mentioned provision, wages for employees working or holding positions that require vocational training that are at least 7% higher than the minimum wage shall continue to be implemented unless otherwise agreed upon by the parties in accordance with employment laws.
3. RESOLUTION NO. 68/NQ-CP ON CERTAIN POLICIES TO SUPPORT EMPLOYEES AND EMPLOYERS IN DIFFICULTY DUE TO THE COVID-19 PANDEMIC IS BEING TERMINATED
According to the Resolution No. 68-NQ/CP dated July 1, 2021, employers are entitled to a premium rate of 0% of the salary fund as the basis for paying social insurance premiums to the Insurance Fund for Occupational Accidents and Diseases for 12 months (from July 1, 2021 to June 30, 2022) for employees eligible for occupational accident and disease insurance (except for officials, public employees, people in the people’s armed forces, employees in the agencies of the Party, the State, administrative agencies, public sector entities on the payroll of the state budget).
Because the Resolution No. 68-NQ/CP will be terminated from June 30, 2022, employers shall apply previous premium rate to contribute social insurance premiums to the Insurance Fund for Occupational Accidents and Diseases as mentioned in Decree No. 58/2020/ND-CP:
– Normal contribution rate shall be equal to 0.5% of the statutory base payroll.
– The contribution rate equaling 0.3% of the statutory base payroll shall be applicable to enterprises operating in industries with high risks of occupational accidents and diseases.
All assessors of OneStepVietnam are vaccinated and now allowed to travel in all areas of Vietnam. We have conducted in-person assessments as usual, no remote services in June 2022.
OneStepVietnam team – June 2022