6 outstanding policies effective from January 2019

1. Officially increase regional minimum wage

The Government has issued Decree 157/2018/ND-CP regulating regional minimum wages for employees working under labor contracts.

According to this Decree, the regional minimum wage is applied as follows:

- Region I: 4.18 million VND/month;

- Region II: 3.71 million VND/month;

- Region III: 3.25 million VND/month;

- Region IV: 2.92 million VND/month.

Compared to 2018, the regional minimum wage increased from 160,000 VND/month - 200,000 VND/month.

The Decree takes effect from January 1, 2019.

2. Dramatically increase environmental tax on gasoline and oil

From January 1, 2019, Resolution 579/2018/UBTVQH14 on Environmental Protection Tax Schedule of the National Assembly Standing Committee, accordingly, environmental protection tax rates for some groups of goods are specifically regulated as follows:

- Gasoline, excluding ethanol: VND 4,000/liter;

- Diesel: 2,000 VND/liter;

- Brown coal: 15,000 VND/ton;

- Taxable plastic bags: 50,000 VND/kg;…

According to the above Environmental Protection Tax Schedule, the environmental protection tax rate on gasoline and oil has increased dramatically (the 2010 Environmental Protection Tax Law stipulates the environmental protection tax rate on gasoline from VND 1,000 - VND 4,000/liter).

3. Increase in health insurance examination price

Prices for health examination and treatment services covered by health insurance between hospitals of the same class nationwide will be applied according to Circular 39/2018/TT-BYT of the Ministry of Health.

Accordingly, medical examination prices are regulated as follows:

- Special class and class I hospitals: 37,000 VND/visit (increase of 3,900 VND);

- Grade II hospital: 33,000 VND/time (increase 3,400 VND);

- Grade III hospital: 29,000 VND/time (increase 2,800 VND);

- Grade IV hospital, Commune health station: 26,000 VND/time (increase 2,700 VND).

The consultation fee to determine difficult cases (expert/case; only applicable in cases where experts from other units are invited to consult at the medical examination and treatment facility) is 200,000 VND.

The Circular takes effect from January 15, 2019.

4. Discount on medical examination for patients without health insurance

Circular 37/2018/TT-BYT regulating the maximum price range for medical examination and treatment services not covered by the Health Insurance Fund has been issued by the Ministry of Health; Specifically:

- Special class hospitals and class I hospitals: 37,000 VND/visit (reduced by 2,000 VND/visit);

- Grade II hospital: 33,000 VND/time (reduced by 2,000 VND/time);

- Grade III hospital: 29,000 VND/time (reduced by 2,000 VND/time);

- Grade IV hospital and commune health station: 26,000 VND/time (reduced by 3,000 VND/time).

The maximum price for comprehensive health check-ups for workers, drivers, and periodic health check-ups (excluding tests and X-rays) is 145,000 VND.

The Circular takes effect from January 15, 2018.

5. Enterprises with less than 10 employees are exempted from organizing employee conferences.

This is the notable content in Decree 149/2018/ND-CP of the Government.

According to this Decree, enterprises employing less than 10 employees are exempted from organizing employee conferences and promulgating written regulations on grassroots democracy at the workplace.

Another new point of this Decree is that it allows employees to contribute their opinions on: Building, amending and supplementing salary scales, payrolls, and labor norms; Proposing and implementing solutions to save costs, increase labor productivity, improve working conditions, etc.

The Decree takes effect from January 1, 2019.

6. Network operators must ensure the confidentiality of user information.

In Circular 16/2018/TT-BTTTT, the Ministry of Information and Communications continues to set stricter requirements for network operators in implementing contracts with customers.

Accordingly, network operators are obliged to ensure the confidentiality of customer information and may only transfer information to third parties with the customer's consent, except in other cases as prescribed by law.

Network operators must ensure the quality of services provided to customers is consistent with the announced quality; must not refuse to enter into contracts or unilaterally terminate contracts with customers, except in some special cases.

In case of suspension of telecommunications services, the network operator must notify customers 30 days in advance.

This Circular takes effect from January 21, 2019.