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On 12 November 2018 the National Assembly of Vietnam unanimously voted to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ("CPTPP"), making Vietnam the 7th country to ratify the multilateral trade agreement, together with Mexico, Japan, Singapore, New Zealand, Canada and Australia. The CPTPP, having met the requirement for at least 6 signatories, would come into effect from 30 December 2018.
The CPTPP was concluded following the US' earlier withdrawal from the TPP, after the remaining states sought to revive the comprehensive trade agreement.
On 31 October 2018, the Government released the highly-anticipated draft guiding decree to the controversial Law on Cyber Security, for public comment.
Relevantly, the draft decree has provided some guidance as to the scope of subjects that will need to comply with the Law on Cyber Security's data localisation requirements. Under the draft, the subjects will cover organisations – both Vietnamese and foreign – which provide telecommunication services, hosting and data-sharing services, domain names services, e-commerce, online payment, payment intermediation, mobility services via cyberspace, social network, online games and email.
However, despite the broad scope of subjects, the draft is presently still under consultation and subject to further refinement following the consultation with the public. The Government is likely to issue an updated draft in the coming time.
On 15 October 2018, Decree 143/2018/ND-CP came into force to guide the social insurance for foreign employees. Since 2014, the Law on Social Insurance had envisaged the contribution of social insurance for foreign employees and their employers. However, until October 2018, it was not implemented due to an absence of guidelines that specified, among others, the rate of contribution required.
Under the new decree, commencing from 1 December 2018, employers will need to contribute 3.5% of the foreigner employee's salary towards social insurance (covering sickness, maternity and occupational illness allowances). From 1 January 2022 onwards, the social insurance regime for foreigners will mirror those applied to Vietnamese employees, meaning that employers are to contribute 17.5% and employees are to contribute 8%, subject to a salary cap of 20 times the minimum wage.
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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