Monthly Newsletter of May 2023
According to the latest report released on May 29th, the General Statistics Office (GSO) reported that Vietnam achieved a trade surplus of $2.24 billion in May and $9.8 billion in the first five months of the year.
During the first five months, the total trade turnover reached $262.54 billion, experiencing a monthly decline of 14.7%. Export turnover was estimated at $136.17 billion, reflecting a 11.6% decrease compared to the same period last year. On the other hand, import turnover was estimated at $126.37 billion, marking a 17.9% decline from the same period last year. Of the total imports, the domestic sector contributed $43.95 billion, while the FDI sector contributed $82.42 billion.
As stated by the Chair of the Vietnam Textile and Apparel Association (VITAS), the textile and garment industry is expected to face ongoing challenges. Enterprises in this industry have encountered difficulties arising from higher interest rates, exchange rate fluctuations, and a significant reliance on imported raw materials. Furthermore, the industry has experienced a decline in the number of orders due to a decrease in global purchasing power, which saw a drop of 25-27% in the first quarter of 2023. Presently, buyers tend to place small, short-term orders for a limited quantity of products.
Source: Online Newspaper of the Government of the Socialist Republic of Vietnam and Vietnam Economy News.
NEW LEGAL REQUIREMENTS
Decree No. 24/2023/ND-CP prescribing statutory pay rate for officials, public employees and the armed forces
According to the new regulation from The Government, the statutory pay rate will be increase from VND 1,490,000 to 1,800,000.
The statutory pay rate shall be used as the basis for:
a) Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 of this Decree;
b) Determining the levels of subsistence allowances as per the law;
c) Determining contributions and benefits concerning the statutory pay rate. Such as:
– Increase the maximum mandatory insurance (social insurance, health insurance and unemployment insurance) contribution level (maximum 20 times of the statutory pay rate).
– Increase the per-diem allowance for convalescence and health rehabilitation after sickness.
– Increase the lump-sum allowance upon childbirth or child adoption
– Increase the per-diem allowance for convalescence and health rehabilitation after maternity leave period.
– Increase the lump-sum benefit and monthly benefit relating to occupational accidents or occupational diseases
– Increase the rate of direct health insurance benefit payment.
– Increase the requirement for participants in health insurance to enjoy 100% coverage of medical expenses after 5 consecutive years.
The Decree was issued on May 14, 2023. This regulation will come into force from July 01, 2023 and replace the Decree No. 38/2019/ND-CP dated May 9, 2019.
In May 2023, in addition to offering regular audit, assessment, and verification services, OneStepVietnam also organized a team-building event and participated in the opening ceremony of the weather adaptive homestay model in Tan Hoa, organized by Oxalis Adventure.
Towards the end of the month, we made a retirement ceremony to Ms. Nguyen Linh Thao – Vice Director, who has been dedicated and made significant contributions to the company for over 15 years.
OneStepVietnam team – May 2023