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On 27 November 2017, the Government passed Decree 139/2017/ND-CP to prescribe new administrative sanctions in the field of construction.
While the decree introduces a number of new sanctions, of note are those applied to employers of foreign contractors such as project owners. The decree now applies administrative fines (VND 80 – 90 million) against such employers for employing non-qualified foreign contractors and for using foreign contractors when the Vietnamese labour market could have satisfied the demands of the employer.
In effect, employers are now tasked with the burden of carrying out due diligence prior to employing foreign contractors.
On 7 December 2017, the Government passed Decree 141/2017/ND-CP to prescribe new region-based minimum wages as follows, which will come into effect from 25 January 2018.
For Region I (which includes cities such as HCMC and Hanoi), the minimum wage will be increased to VND 3,980,000 per month (previously VND 3,750,000).
For Region II, the minimum wage will be VND 3,530,000 per month (previously VND 3,320,000).
For Region III, the minimum wage will be VND 3,090,000 per month (previously VND 2,900,000).
For Region IV, the minimum wage will be VND 2,760,000 per month (previously VND 2,580,000).
On 17 October 2017, the Government passed Decree 116/2017/ND-CP to govern the conditions for manufacturing, assembling, importing and providing warranty and maintenance services of automobiles.
The decree, applying to automobile manufacturers and assemblers, sets forth conditions on facilities, labour, safety and hygiene, fire safety, and environmental protection. They also require such parties to obtain a permit from the Ministry of Industry and Trade to carry out business.
Automobile importers, in order to obtain an Automobile Importing Business License, must engage appropriate warranty and maintenance centre(s) owned / leased by the automobile importers or belonging to the dealer network authorised by the importer and relevant offshore manufacturer / assembler to conduct recalls in Vietnam.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Ho Chi Minh City Office
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HCMC, Vietnam
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Hanoi, Vietnam
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