NEWS
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THREE KEY POINTS ON SALARY AND COMPULSORY INSURANCE FROM JAN 2018
Expansion of the definition of salary will lead to increased social insurance premiums, which would increase labor costs. Insurance premiums are, in fact, a great pressure, directly affecting the business costs of enterprises, reducing the employees’ net income; and the pressure is double for the labor intensive enterprises… Pursuant to the Law on Social Insurance 2014, Law on Employment 2013, Decree 105/2014/ND-CP and Decree 44/2017/ND-CP: # Note 1, premiums of compulsory social insurance (SI) and salary deductions include: Pension and death fund (PF). Labor accident and occupational disease fund (LF). Sickness and maternity fund (SF). Unemployment Insurance Fund (UI). Health insurance fund (HI). Applicable from 01/01/2018 according to the table below: # Note 2, in addition to Premiums, the basis for calculating the payable amounts will also be changed; the Law on Social ... -
Foreigners working in Vietnam to pay compulsory social insurance from 2018
The 2014 Law on Social Insurance adds three more groups of subjects to be covered by compulsory social insurance. These are people working under labour contracts of a definite term between one full month and under three months; part-time communal cadres; and foreigners working in Vietnam and possessing work permits, practice certificates, or licenses issued by competent Vietnamese authorities. It means that foreigners working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies will be covered by compulsory social insurance as from January 1, 2018. From 2018, foreigners working in Vietnam are required to participate in compulsory social insurance, and pay insurance premiums based on their wage, allowances and other additional amounts stated ... -
THE CHANGE IN THE LAW ON SOCIAL INSURANCE POLICY SINCE 01/01/2018
The Law on Social Insurance 2014 takes effect from 01/01/2016; However, many of the important provisions until January 1, 2018 officially came into force. Here, KIM HUC synthesis for you easy to follow: 1. Two more subjects must participate in compulsory social insurance From 01/01/2018, besides those who pay compulsory social insurance in accordance with the current regulations, the following two subjects must also participate, specifically: Persons working under labor contracts with a term ranging from one month to less than three months; - Foreign laborers who are working in Vietnam and who have work permits or practice certificates or practicing certificates granted by competent Vietnamese agencies may participate in compulsory social insurance under the provisions of Goverment. (Based on Clause 1, Article 124 ... -
CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS 1980 (CISG)
Contracts for the International Sale of Goods is often called as CISG 1980. Until the end of 2015, there are 84 nations and territories which have been signed and become its members, including Vietnam. On 1st January 2017, CISG 1980 took official effects in Vietnam and directly affect international commercial activities between Vietnamese traders and their partners from other countries. Viet An Law Firm collects and provides our Clients some basic information related to CISG 1980 as follows: Governing scope: This convention applies to contracts for sale of goods between parties whose places of business are in different States: - When the States are Contracting States; or - When the rules of private international law lead to the application of the law ... -
LEGAL REPRESENTATIVE OF FOREIGN-OWNED COMPANIES IN VIETNAM
During operation in Vietnam, many foreign-owned companies need to appoint foreigners as the legal representatives of the companies. This is a necessary need as the legal representative shall act on behalf of the company to sign contracts, make transactions and perform obligations and rights of the company. Appointing foreigners as the legal representatives of foreign-owned companies in Vietnam could make management, control and daily business decisions become easier. However, currently, the regulations on foreign labor have become narrower. Hence, appointment of foreign legal representative of foreign-owned companies in Vietnam need to be complied with the laws. The process of appointment of legal representative of foreign-owned companies in Vietnam as well as foreign employees as follows: Step 1: Determination and reports ... -
DISPUTES ARISING DURING INVESTMENT PROCESS IN VIETNAM
During investment process in Vietnam, investors may face some troubles slowing down investment schedule or affecting their business. These disputes may appear in different aspects: Disputes with target companies: Among foreign investment methods in Vietnam, capital contribution, shares/capital purchase are the most common ones as they save time and are simpler than others. However, to purchase a company in Vietnam, foreign investors may face some legal issues like conditional business sectors. When purchasing one, investors should thoroughly conduct due diligence, especially, satisfaction of business conditions. Assuming that a company which has not applied for sublicenses of a conditional business sector or has not satisfied required conditions, there is a potential risk that they would hide those facts. Dispute with employees: Employers shall ...
