6 key policies effective from January 2019

1. Official increase in regional minimum wage.

The government has issued Decree 157/2018/ND-CP stipulating the regional minimum wage for employees working under labor contracts.

According to this Decree, the regional minimum wage rates are 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 has increased by 160,000 to 200,000 VND per month.

The decree takes effect from January 1, 2019.

2. Increase the environmental tax rate on gasoline and diesel to the maximum level.

Effective from January 1, 2019, Resolution 579/2018/UBTVQH14 of the Standing Committee of the National Assembly on the Environmental Protection Tax Schedule stipulates the following specific environmental protection tax rates for certain groups of goods:

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

- Diesel fuel: 2,000 VND/liter;

- Brown coal: 15,000 VND/ton;

- Plastic bags are subject to tax: 50,000 VND/kg;…

According to the aforementioned Environmental Protection Tax Schedule, the environmental protection tax rate on gasoline and diesel has increased to the maximum level (the 2010 Environmental Protection Tax Law stipulates an environmental protection tax rate for gasoline ranging from 1,000 VND to 4,000 VND per liter).

3. Increase in health insurance examination fees.

The prices for medical examination and treatment services covered by health insurance among hospitals of the same category nationwide will be applied according to Circular 39/2018/TT-BYT of the Ministry of Health.

Accordingly, the fees for medical examinations are regulated as follows:

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

- Level II hospitals: 33,000 VND/visit (an increase of 3,400 VND);

- Level III hospitals: 29,000 VND/visit (an increase of 2,800 VND);

- Level IV hospitals and commune health stations: 26,000 VND/visit (an increase of 2,700 VND).

The fee for consultations to determine difficult cases (expert/case; only applicable when inviting experts from other units to consult at the medical facility) is 200,000 VND.

The circular takes effect from January 15, 2019.

4. Reduced medical examination fees for patients without health insurance.

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

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

- Level II hospitals: 33,000 VND/visit (reduced by 2,000 VND/visit);

- Level III hospitals: 29,000 VND/visit (reduced by 2,000 VND/visit);

- Level IV hospitals and commune health stations: 26,000 VND/visit (reduced by 3,000 VND/visit).

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

The circular takes effect from January 15, 2018.

5. Businesses with fewer than 10 employees are exempt from organizing employee conferences.

This is a noteworthy point in Government Decree 149/2018/ND-CP.

According to this Decree, businesses employing fewer than 10 workers are exempt from organizing employee conferences and issuing written regulations on grassroots democracy at the workplace.

Another new feature of this Decree is that it allows workers to participate in contributing opinions on: the development, amendment, and supplementation of salary scales, wage tables, and labor norms; and to propose and implement solutions to save costs, increase labor productivity, and improve working conditions…

The decree takes effect from January 1, 2019.

6. Network providers 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 fulfilling contracts with customers.

Accordingly, network operators are obligated 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 stipulated by law.

Mobile network operators must ensure that the quality of service provided to customers meets the quality standards they have advertised; they are not allowed to refuse to enter into contracts or unilaterally terminate contracts with customers, except in certain special cases.

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

This Circular takes effect from January 21, 2019.

Ngoc Anh