Series of fresh policies take effect in August

Decree 46/2016/ND-CP on administrative penalties for road and rail transport offences took effect on August 1 stipulates heavier penalties for behaviors which would cause transport accidents like ignorance of traffic lights, exceeding alcohol permits, excessive speeds, as well as highway infringements.

Especially, the decree also states a new regulation under which those who steer their vehicles with their feet will incur a fine of VND 7-8 million (US$ 310-360).

Massive increases in health costs

Since August 1, sharp increases of medical costs will be applied in ten cities and provinces with at least 95% of local people using health insurance. 

Accordingly, prices of 1,900 different services and products at public hospitals surged sharply.

By the year end, medical costs will be adjusted four times at the end of August, October, November and December in cities and provinces with high rates of health insurance coverage.

Higher medical costs will be applied in the rest of provinces in early 2017.

Setting higher barriers on recruitment

Decree 51/2016/ND-CP providing labor management, wages and bonuses for employees of wholly state-owned one-member limited liability companies came into effect since August 1.

Accordingly, single-member limited liability companies whose charter capital is wholly owned by the State shall prepare an annual employment plan as the basis for recruitment and allocation of employees; in normal operational conditions, the average number of employees in the annual employment plan shall not exceed 5% of the actual employees of the immediately preceding year.

Every  company  shall  set  aside  a reserve fund for the salary budget of the following year according to their realized payroll. The reserve fund shall not exceed 17% of the realized payroll. For seasonal companies, the reserve budget shall not exceed 20% of the realized payroll.

Tightening operation of foreign exchange agents

Circular 11/2016/TT-NHNN, dated June 29, 2016, of the State Bank of Viet Nam stipulates amendments to a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks.

Accordingly, since August 13, an enterprise working as a foreign exchange agent shall have to make procedures for registering with the State Bank’s branch where the certificate of foreign exchange agent registration is issued: name and/or address of the enterprise; address of foreign exchange agent’s office; increase in the number of foreign exchange agents./.

By Kim Loan