LEGAL UPDATES VOL 55, JANUARY 2023

LEGAL UPDATES

VOL 55, JANUARY 2023

Dear Valued Clients and Partners,

ADK Vietnam Lawyers would like to introduce to you the Legal Updates, Vol 55 of January 2023, with new legal provisions with notable contents as follows:

1. Change the formula of social insurance premium payment.

The Ministry of Labour - Invalids and Social Affairs promulgated the Circulars 01/2023/TT-BLDTBXH (hereinafter referred to as “Circulars”). The two formulas for paying social insurance premiums have changed in this document. The details are as follows:

(i) The formula of monthly salary for which social insurance premium has been paid for employees paying compulsory social insurance is specified as follows (Article 2.1 of the Circulars):

Monthly salary on which social insurance premiums are based after adjustment of each year

Total monthly salary on which social insurance premiums are based each year

Adjustment level of salary for which social insurance premiums have been paid in the corresponding year

(ii) The formula for monthly income for which social insurance premiums have been paid (Article 3.1 of this Circulars):

Monthly income for the payment of voluntary social insurance premiums after adjustment of each year	=	Total monthly income on which social insurance premiums are based each year	x	Adjustment level of monthly income for which social insurance premiums have been paid in the corresponding year

Please see the details of the coefficient of change of social insurance each year in the text's two tables of this Circular.

The Circular takes effect from February 20, 2023, and the provisions of this Circular apply from January 1, 2023.

2. New regulations on registration of security interests

The Government (hereinafter referred to as “G”) issued Decree 99/2022/ND-CP on the registration of security interests (hereinafter referred to as “Decree”). In the Decree, a number of notable regulations are:

(i) Add more about the adjustment scope: According to Article 1.2 of the Decree, additional cases on security interests in securities registered with Vietnam Securities Depository and Clearing Corporation (VSDC) shall comply with the law on securities.

(ii) The security interest takes effect against a third party: According to Article 6.1.b, the Decree has added provisions on the effect against third parties to be consistent with the Civil Code, except for the case where determination of the period against the third party does not terminate Clause 2 of this Article and the case of registration of notice of realization of collateral specified in Clause 4 of this Article.

(iii) This Decree prescribes 04 cases of registration of security interests (Article 4 of the Decree), including:

- Registration of mortgage of property, pledge of property, title retention as prescribed in the Civil Code, and relevant laws;

- Registration under the agreement between the grantor and the secured party or at the request of the secured party, except for property lien;

- Registration of notice of realization of collateral in case an asset is used to secure the performance of many obligations but many parties jointly receive the security or in cases where the grantor and the secured party have reached an agreement;

- Registration of changes to registered information (hereinafter referred to as change registration); deregistration of registered information (hereinafter referred to as deregistration) for the case specified at Points a, b and c of this Clause.

The Decree takes effect from January 15, 2023

3. Reduction of land rental and water surface rent of 2022 for subject affected by covid-19.

The Government issued Resolution 07/NQ-CP about a 30% reduction of land rent and water surface rent in 2022 for organizations, units, enterprises, households, and individuals that are being directly leased land by the State under a Decision or Contract or Certificate of Rights land use, ownership of houses and other land-attached assets of competent state agencies in the form of land rental with annual payment due to the impact of the COVID-19 epidemic.

The Resolution 7/NQ-CP takes effect from January 30, 2023 and replaces the fourth bullet point, point a, section 3, part II of Resolution 11/NQ-CP dated January 30, 2022, on the rehabilitation program and socio-economic development and implementation of Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Program.

We hope you found this brief legal update informative.

Kind regards./.

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