LEGAL UPDATES VOL 60, JULY 2023

LEGAL UPDATES

VOL 60, JULY 2023

Dear Valued Clients and Partners,

ADK Vietnam Lawyers would like to introduce to you the Legal Updates, Vol 60 of July 2023 with new legal provisions with notable contents as follows:

1. Decree No. 13/2023/NĐ-CP on protection of personal data takes effect

From 01/7/2023, Decree No. 13/2023/ND-CP promulgated by the Government on protection of personal data takes effect (hereinafter referred to as "Decree No. 13/2023/ND-CP"). Accordingly, Decree No. 13/2023/ND-CP consists of measure and conditions to protect personal data as follows:

(i) Definition of personal data: Decree No. 13/2023/ND-CP defines personal data as electronic information in the form of symbols, letters, numbers, images, sounds, or equivalences associated with an individual or used to identify an individual and it is divided into two main types, namely general personal data and sensitive personal data.

(ii) Personal data protection measures: Measures for protecting personal data shall be adopted from the beginning of and throughout the processing of personal data, accordingly, measures for protecting personal data include:

 Management measure adopted by an organization or individual related to processing of personal data;

 Technical measure adopted by an organization or individual related to processing of personal data;

 Measure adopted by a competent authority according to regulations in this Decree and relevant law;

 Investigation and procedure measures adopted by a competent authority;

 Other measures as prescribed by law.

(iii) The competent authority for personal data protection: the personal data protection authority is the Department of Cybersecurity and Hi-tech Crime Prevention under the Ministry of Public Security that assists the Ministry of Public Security in performing state management of personal data protection.

(iv) Data subject’s rights: Decree No. 13/2023/ND-CP specifies 11 rights of data subjects, including: Right to (1) be informed, (2) give consent, (3) access personal data, (4) withdraw consent, (5) delete personal data, (6) obtain restriction on processing, (7) obtain personal data, (8) object to processing, (9) file complaints, denunciations and lawsuits, (10) claim damage and (11) self-protection.

Decree No. 13/2023/ND-CP comes into force from July 01, 2023.

2. Issuerance new requirements for foreign loans without Government’s guarantee

On July 30th, 2023, the Governor of State Bank of Vietnam issues Circular No. 08/2023/TT-NHNN on eligibility requirements for foreign loans without the Government's guarantee (hereinafter referred as “Circular No. 08/2023/TT-NHNN”). Accordingly, Circular No. 08/2023/TT-NHNN has the following notable point:

(i) 03 requirements on foreign loans without the Government’s guarantee.

 General requirements including provision on foreign loan agreement; currency of foreign loans; secured transactions for a foreign loan; foreign borrowing costs and foreign borrowing by state-owned enterprises.

 Additional requirements to be fulfilled by borrowers that are credit instututions or foreign bank branches including Loan purposes; Limit on short-term foreign loans; Prudential ratios.

 Additional requirements to be fulfilled by borrowers that are not credit instututions or foreign bank branches including loan purposes and limit on foreign loans.

(ii) Limit of foreign loan applying to specific objective:

 Limits on short-term foreign loans for credit institutions and foreign bank branches: A borrower may apply for a short-term foreign loan if it meets the limit on short-term foreign loans as at December 31 of the year preceding the year in which the loan application is submitted with the ration as follows 30% if the borrower is a commercial bank; or 150% if the borrower is a FBB or another credit institution.

 Limit on foreign loans for borrowers that are not credit institutions or foreign bank branches depend on executing an investment project; executing business plans or restructuring foreign debts of the borrower.

This Circular comes into force from August 15, 2023, except the provisions on limits on short-term foreign loans in Article 15 of this Circular which shall come into force from January 01, 2024.

3. Increase the statutory pay rate from 01/7/2023

On May 14th, 2023, Government promulgates Decree No. 24/2023/ND-CP prescribing statutory pay rate for officials, public employees and the armed forces hereinafter refered as “Decree No. 24/2023/ND-CP”).

Accordingly, the new statutory pay rate applied from 01/7/2023 is VND 1.800.000/month.

The statutory pay rate shall be used as the basis for:

 Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 of this Decree;

 Determining the levels of subsistence allowances as per the law;

 Determining contributions and benefits concerning the statutory pay rate.

Decree No. 24/2023/ND-CP comes into force from July 01, 2023.

We hope you found this brief legal update informative.

Kind regards./.

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