OneStepVietnam presents
Monthly Newsletter of March 2022

COVID-19 and ECONOMIC NEWS

As of March 31,2022 Vietnam’s Ministry of Health confirmed a total of 9,561,757 cases of infection in 62 cities and provinces in the country (this means that 6,118,272 cases were confirmed during this month). The most severely hit areas are Ha Noi, Ho Chi Minh City (HCMC), Nghe An Province, Binh Duong Province and Hai Duong Province.

There were 42,493 deaths announced due to the pandemic as of February 28, 2022. On the other hand, around 7,516,196 patients were given the all-clear recoveries during the same time period.

According to the General Statistics Office, Viet Nam’s GDP was estimated to grow by 5.03 percent in the first three months this year, mainly by expansion of manufacturing. The total export turnover was estimated at US$88.58 billion, a year-on-year increase of 12.9 percent and import volume rose by 15.9 percent to US$87.77 billion. The number of foreign arrivals soared by 89.1 percent to nearly 91,000 in the January-March period.

Source: Ministry of Health, Online Newspaper of the Government of the Socialist Republic of Vietnam

NEW LEGAL REQUIREMENTS

1. Circular No 28/2021/TT-BLDTBXH elaborating some articles of the Law on Occupational Safety and Health on compensation and benefits for employees suffering from an occupational accident and occupational disease.

a. Paying compensation

* Subjects:

– An employee whose working capacity decreased by 5% or more due to the suffering from an occupational accident that is not entirely his/her fault.

– An employee that suffers from an occupational accident that reduces his/her working capacity by 5% or more or makes him/her die and the accident is not entirely due to his/her fault of this employee.

* Compensation amount:

– At least 30 months’ salary if the employee’s working capacity decrease is at least 81% or if the employee dies from an occupational accident or an occupational disease (in case of death to be paid out to the family of the deceased);

– At least 1.5 months’ salary for the employee whose working capacity decrease is between 5% and 10%. If working capacity decrease is between 11% and 80%, 0.4 month’s salary shall be added for each additional 1% working capacity decrease.

For an employee working under an employment contract, the monthly salary includes the salary, salary allowance and other additional amounts that the two parties have determined in the employment contract.

b. Paying benefit

* Subjects:

An employee whose working capacity decrease is from 5% due to suffering from an occupational accident that is completely caused by the fault of the injured worker (according to the conclusion of the occupational accident investigation report).

* Benefit amount:

– At least 12 months’ salary for the employee if the working capacity decrease is at least 81% or if the employee dies from an occupational accident (in case of death to be paid out to the family of the deceased);

– At least 0.6 months’ salary for the employee whose working capacity decrease is between 5% and 10%. If the working capacity decrease is between 11% and 80%, the benefit amount is 40% of the compensation amount.

The Circular came into force from March 1, 2022.

2. Decision No. 08/2022/QD-TTg stipulating the implementation of the housing subsidy policy for employees

The Decision on housing subsidy policy for employees was issued by the Government and took effect on March 28, 2022.

a. Housing subsidy for employees working in enterprises

* Subject

Employees working in enterprises in industrial parks, export processing zones or key economic areas are supported when fully meeting the following conditions:

– Renting, lodging in the period from February 01, 2022 to June 30, 2022.

– Having an indefinite-term labor contract or a fixed-term labor contract of 01 month or more signed and commenced before April 01, 2022.

– Being participating in compulsory social insurance (named on the list of participating in compulsory social insurance of the social insurance agency) in the month immediately preceding the time the enterprise prepares the list of employees requesting subsidy.

In case the employee is not subject to compulsory social insurance as prescribed in Clause 4, Article 2 of Decree No. 115/2015/ND-CP dated November 11, 2015; he/she must be named on the list of wage payment of the enterprise of the month preceding the time that the request is made.

* Detail of subsidy

– Support level: VND 500,000/person/month.

– Support period: Up to 3 months.

– Payment method: Monthly.

b. Housing subsidy for employees coming back to labor market

* Subject

Employees working in enterprises in industrial parks, export processing zones or key economic areas are supported when fully meeting the following conditions:

– Renting, lodging in the period from February 01, 2022 to June 30, 2022.

– Having an indefinite-term labor contract or a fixed-term labor contract of 01 month or more signed and performed during the period from April 01, 2022 to June 30, 2022 except for the labor contract that is a continuation of the previous labor contract.

– Being participating in compulsory social insurance (named on the list of participating in compulsory social insurance of the social insurance agency) in the month immediately preceding the time the enterprise prepares the list of employees requesting subsidy.

In case the employee is not subject to compulsory social insurance as prescribed in Clause 4, Article 2 of Decree No. 115/2015/ND-CP dated November 11, 2015 or new employee, he/she must be named on the list of wage payment of the enterprise of the month preceding the time that the request is made.

* Detail of subsidy

– Support level: VND 1,000,000/person/month.

– Support period: Up to 3 months.

– Payment method: Monthly.

3. Decision No. 4290/QD-TLD regulating revenue, expenditure, financial and asset management at the primary trade unions

The Decision was issued by Vietnam General Confederation of Labour and took effect on March 01, 2022.

The primary trade union is entitled to use 75% of the trade union funds, 60% of the trade union fee as prescribed by the Presidium of the General Confederation and 100% of other revenue of the unit as prescribed by law and General Confederation.

ONESTEPVIETNAM NEWS

All assessors of OneStepVietnam are vaccinated and now allowed to travel in all areas of Vietnam. We have conducted in-person assessments as usual, remote services including consultation and virtual assessment will still be conducted for some factories during March 2022.

OneStepVietnam team – March 2022