Prohibiting debt collection services

The Law on Investment 2020, effective from January 1, 2021, prohibits activities including: Trading in narcotics and some chemicals and minerals in the law's appendix; trade in specimens of endangered wild flora and fauna species; commercial sex work; trafficking in humans, tissues, corpses, organs or human fetuses; business activities related to human cloning; trading in firecrackers.

In particular, this law officially banned the business of debt collection services.

The Law on Investment 2020 also reduces the number of conditional business lines down to 227, at the same time, adds more industries and occupations that are given investment incentives as well as adding investment incentives and special investment support.

Applying a pre-age retirement policy

Government's Decree No. 143 amending and supplementing a number of articles of Decree No. 108 on policy on staff streamlining has added a number of policies such as retirement at an early age.

Accordingly, the subjects of staff streamlining if they are 5 years younger than the maximum and 2 years younger than the retirement age, having full 20 years of social insurance payment or more, will be entitled to the retirement regime according to regulations and not deducted from the pension rate due to the retirement age.

At the same time, this group also receives a 3-month salary allowance for each year of early retirement; receives a 5-month salary allowance for the first 20 years of working with full payment of social insurance. From the 21st year on, for each working year with social insurance contributions, he/she is entitled to a half of month salary allowance.

If the staff streamlining objects are 2 years younger than the retirement age and have full 20 years of social insurance premium payment or more, they will enjoy the prescribed retirement regime and not be deducted from the pension rate due to the pre-age retirement.

New regulations on retirement age

Government's Decree 135 regulating retirement age takes effect from January 1.

Accordingly, the Decree states that the retirement age of the employees in normal working conditions is full 60 years and 3 months for men and full 55 years and 4 months for women. Thereafter, each year an increase of 3 months for male workers until they reach 62 years of age by 2028, and an increase of 4 months for female workers until they reach 60 years of age by 2035.

Government Decree 135 regulates the increase in retirement age for both male and female employees. Photo: Hoang Ha

The Decree also stipulates that employees can retire at a lower age (but not more than 5 years old than the retirement age) if having full 15 years or more doing heavy, dangerous and hazardous work.

Employees having full 15 years or more in regions with extremely difficult socio-economic conditions; Suffering from a working capacity decrease of 61% or more, etc. is also subject to early retirement.

The procuracy is entitled to criminal examination

From January 1, the Law amending and supplementing a number of articles of the Law on Judicial Expertise officially took effect.

Under the new law, the public examination organizations of criminal techniques include the Institute of Criminal Sciences of the Ministry of Public Security; Criminal Technical Department of the provincial police; Criminal Technical Inspection Division of the Ministry of National Defense and Technical Inspection Department of the Supreme People's Procuracy.

In which, the inspection department of the procuracy conducts audio and visual inspection from electronic data. The Prosecutor General of the Supreme People's Procuracy will define the functions, tasks and organizational structure of the criminal examination department of the unit to submit to the NA's Standing Committee for approval. This is a new point compared to the old inspection law.

Adding nationality conditions of National Assembly deputies

The Law amending and supplementing a number of articles of the Law on Organization of the National Assembly increases a condition on nationality of National Assembly deputies. Accordingly, National Assembly deputies "must have one and only Vietnamese nationality".

From January 1, National Assembly deputies can have only one nationality, which is Vietnamese. Photo: Minh Quan

In addition, the new law also stipulates an increase of 5% in the proportion of full-time National Assembly deputies (at least 40% of the total number of the deputies).

This provision creates a legal basis for the planning work and prepares human resources to introduce candidates to run part-time National Assembly deputies, contributing to enhancing professionalism and improving the operational efficiency of the National Assembly.

The court will reconcile before accepting later

Also from January 1, the Law on Mediation and Dialogue in the court will take effect. Accordingly, the conciliation will be held before the court accepts the case of civil disputes, marriage and family, business, commerce, labor; the request for recognition of a favorable divorce; administrative cases under the courts' jurisdiction according to the provisions of the Civil Procedure Code and the Law on Administrative Procedures.

The time for mediation and dialogue in court is 20 days from the date the mediator is appointed. For complicated cases, this time limit can be extended without exceeding 30 days. The parties can also agree to extend the time for mediation and dialogue without exceeding 2 months.

Buying domestic cars is no longer exempt from 50% registration tax

In 2020, the COVID-19 pandemic will cause Vietnam's economy to face major challenges. In May 2020, the Government issued Resolution 84 on tasks and solutions for dealing with difficulties in business operations, promoting disbursement of public investment and ensruring social order and safety during COVID-19 epidemic.

One of the notable regulations is a 50% reduction in registration fees when registering cars manufactured or assembled domestically to stimulate consumption.

The regulation clearly states “from June 28 to December 31, the registration fee rate is 50% of the rate specified in Decree No. 20 in 2019 of the Government and the current resolutions of the People's Council, or current decision of the People's Committee of the province or city directly under the Central Government on the rate of registration fee in the locality".

From January 1, buyers of domestically manufactured and assembled vehicles will not be exempt from 50% of registration tax. Photo: Viet Linh

However, from the first day of 2021, this policy will officially expire. People buying domestic cars will not be exempt from 50% of the registration fee from January 1.

The registration fee level in 2021 will be re-applied according to Decree No. 20 of the Government and current resolutions of the People's Council, or the current decision of the Provincial People's Committee on the local registration fee rate.

Shortening construction permit issuance time

The Law amending and supplementing a number of articles of the Construction Law, effective from January 1, stipulates numreous new points such as adding constructions that are exempt from permits and shortening the time for granting construction permits. Accordingly, the time to issue a construction permit is shortened by 10 days compared to the 2014 Construction Law (down to 20 days).

The law also supplements a number of projects that are exempt from construction permits such as advertising works that are not subject to construction permits in accordance with the law on advertising; passive telecommunications technical infrastructure works.

In addition, the law also adds a number of projects that require preliminary environmental impact assessment such as national important projects, group A projects using public investment; PPP projects; projects under the authority to approve investment policies of the National Assembly and the Prime Minister./.