New policy effective from October 2021

Many supports small and medium enterprises to start creative businesses

Effective from October 15, 2021, Decree No. 80/2021/ND-CP issued on August 26, 2021 by the Government details and guides a number of articles of the Law on Support for Small and Medium Enterprises (SMEs), including regulations on support for SMEs.start-upcreative.

The Decree specifies the content of support for innovative start-up SMEs, including: Support for the use of technical facilities, incubators, and shared working areas; support for intellectual property consultancy, exploitation and development of intellectual property; support for implementation of procedures on standards, technical regulations, measurement, and quality; testing and perfecting new products and business models; technology support; support for training and specialized coaching; support for information, communication, trade promotion, and connection to innovative start-up networks.

In particular, 100% of the cost of using equipment at technical facilities, incubators, and co-working areas will be supported, but not exceeding VND 20 million/year/enterprise; and up to 50% of the cost of renting premises at incubators and co-working areas will be supported, but not exceeding VND 5 million/month/enterprise. The maximum support period is 3 years from the date the enterprise signs the premises lease contract.

Support 100% of the value of consulting contracts for management and development of products and services protected by intellectual property rights domestically, but not exceeding 50 million VND/contract/year/enterprise; support up to 50% of the value of consulting contracts for establishing, transferring, exploiting and protecting intellectual property rights abroad, but not exceeding 50 million VND/contract/year/enterprise...

Support up to 50% of the cost of testing new products at units and organizations testing goods and products, but not more than 30 million VND/year/enterprise; support up to 50% of the value of consulting contracts to complete new products, new services, new business models, new technologies, but not more than 50 million VND/contract/year/enterprise...

Provinces consider and decide not to collect tuition fees during natural disasters and epidemics

According to Decree 81/2021/ND-CP of the Government issued on August 28, 2021, stipulating the mechanism for collecting and managing tuition fees for educational institutions in the national education system and policies on tuition exemption and reduction, support for learning costs; service prices in the field of education and training effective from October 15, 2021, when natural disasters occur,pandemic, force majeure events announced by competent authorities; depending on the level and scope of damage, the Provincial People's Committee shall submit to the Provincial People's Council for consideration and decision not to collect tuition fees for a certain period of time for preschool children and public primary school students, students studying at continuing education institutions following the general education program in areas affected by natural disasters, epidemics, or areas where force majeure events occur.

Support for employees and employers affected by COVID-19 from the Unemployment Insurance Fund

The Government issued Resolution No. 116/NQ-CP dated September 24, 2021 on policies to support employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund.

Cash support for workers affected by the COVID-19 pandemic from the Unemployment Insurance Fund balance

Applicable subjects are employees participating in unemployment insurance as of September 30, 2021.

Employees who have stopped participating in unemployment insurance due to termination of their labor contract or work contract between January 1, 2020 and September 30, 2021 will have their unemployment insurance payment period reserved according to the provisions of the law on employment, excluding monthly pensioners.

Support level from 1.8 million to 3.3 million VND/person based on the period of unemployment insurance payment without receiving unemployment benefits of the employee.

Reduced Unemployment Insurance Fund contributions for employers affected by the COVID-19 pandemic

The subjects of application are employers specified in Article 43 of the Law on Employment (excluding state agencies, political organizations, socio-political organizations, people's armed forces units and public service units whose regular expenditures are guaranteed by the State budget) participating in unemployment insurance before October 1, 2021.

Contribution reduction: Employers are allowed to reduce their contribution from 1% to 0% of the monthly salary fund of employees who are subject to unemployment insurance.

Time to implement the reduction in contribution level: 12 months, from October 1, 2021 to September 30, 2022.

*Deputy Prime Minister Le Minh Khai signed Decision 28/2021/QD-TTg dated October 1, 2021 regulating the implementation of policies to support employees and employers affected by the COVID-19 pandemic from the Unemployment Insurance Fund, effective from October 1, 2021.

Allow master's entrance exam online

Effective from October 15, 2021, Circular No. 23/2021/TT-BGDDT of the Ministry of Education and Training on Regulations on enrollment and training for master's degrees, replaces Circular No. 15/2014/TT-BGDDT.

Implementing the Law on Higher Education, the Regulations supplement admission methods and assign training institutions to specify the methods on the principle of ensuring fair, objective and honest assessment. Training institutions decide on admission according to 3 methods: Entrance exam, admission review, and combination of entrance exam and admission review.

To ensure that enrollment is not interrupted due to epidemics or other force majeure events, the Regulations allow online exams when meeting quality assurance conditions so that assessment results are reliable and fair as with direct enrollment.

New regulations on risk provisions at credit institutions

According to Circular No. 11/2021/TT-NHNN of the State Bank of Vietnam on classification of assets, provisioning levels, methods of setting up risk provisions and the use of provisions to handle risks in the operations of credit institutions (CIs) and foreign bank branches, effective from October 1, 2021, CIs and foreign bank branches classify debts into 5 groups: Standard debts, debts requiring attention, substandard debts, doubtful debts and debts with potential loss of capital.

The Circular specifically stipulates the provisioning ratio for each debt group as follows: 0% for qualified debt, 5% for debt requiring attention, 20% for substandard debt, 50% for doubtful debt, and 100% for debt with the possibility of capital loss./.