FINANCE STIMULUS - Banks agree to lend billions of dollars under government interest rate subsidisation scheme
Three large banks, Bank for Investment and Development of Vietnam (Bidv), Vietnam Bank for Foreign Trade (Vietcombank), Industrial and Commercial Bank of Vietnam (Vietinbank), announced that they will offer 70 trillion dong each under the government's interest rate subsidisation.
Meanwhile, the lending amount of Bank for Agriculture and Rural Development of Vietnam (Agribank) under the government's interest rate subsidisation will surely be larger, possibly up to 100 trillion dong, because its large number of clients being farmers and agricultural businesses.
Among commercial joint stock banks, Vietnam Technological and Commercial Bank (Techcombank) planned to lend 50 trillion dong, Asia Commercial Bank (ACB) 35 trillion dong, Vietnam International Bank (VIB) 25 trillion dong. Other commercial joint stock banks also scheduled to offer loans of some 10-30 trillion dong. It is estimated that some 600 trillion dong worth of interest-rate-subsidised loans will be injected into the economy.
With such a large estimated lending amount, the government will have to subsidise about 24 trillion dong while the government scheduled an amount of only 17 trillion dong in planned eight-month period.
However, banks say they are well aware that the most important part of the government's interest rate subsidisation is extending loans to the right business.
ACB said that it would set aside loans primarily for export activities and short-term trade support with the lowest interest rate of only 1.2% a year.
Ly Xuan Hai, ACB's general director, expected that this would help increase outstanding loans for export, bringing its year-on-year credit growth to some 70%.
The State Bank of Vietnam (SBV) in Circular 02 dated 3 February 2009 regulating interest rate subsidisation in details allowed banks to fully satisfy borrowing demand of eligible businesses. After that, upon collecting interest, the central bank will transfer subsidised interest to banks based on banks' lending reports. With such a statute, there is no barrier for interest-rate-subsidised loans. Banks have the right to decide and take responsibility for loans.
Most of banks and businesses questioned why the government chooses the subsidised interest rate of 4%. In 2009, total credit to the economy through the banking channel is estimated at 1,200 trillion dong a year. Thus, the government's subsidy amount of 17 trillion dong will create some over 50% of cheap capital of the above total amount. The remaining credit will follow the normal lending mechanism. SET
Friday, 13 February 2009
INFRASTRUCTURE - Fast capital needed for infrastructure
INFRASTRUCTURE - Fast capital needed for infrastructure
HCM CITY — The city must streamline administrative procedures to ensure a steady flow of foreign capital for infrastructure projects, experts have said.
Experts at the HCM City branch of the National Socio-Economic Forecasting Centre said the continued disbursement of registered foreign capital was even more critical than an attempt to attract more foreign direct investment (FDI).
Last year FDI into Viet Nam increased to more than US$60 billion, with HCM City accounting for more than $8 billion.
Beginning in January, HCM City’s Planning and Investment Department reformed several administrative procedures to prevent slow disbursement by investors.
The department said the city would also pilot some simplified changes in administrative procedures related to construction investment in new urban area projects, housing projects and industrial zone infrastructure projects.
Among the changes would be the abolishment of investment certificates for new urban areas, and housing and industrial zone projects.
The implementation of the United Nations Development Programme’s administrative reform project was also being expedited, city officials said.
Infrastructure projects
According to deputy chairman of HCM City People’s Committee Nguyen Trung Tin, several major transport projects in the 2008-2010 period would be prioritised for investment.
The city needs $15 billion from now to 2020 to develop transport infrastructure, including new roads, according to Tin. Many urgent projects need capital, such as the two-way street Ha Huy Giap, the interprovincial highway 15 expansion project, and theVuon Lai Street and Vam Thuat Bridge projects.
The city will also have to mobilise capital for nine sewage treatment plants and two important projects, the Tham Luong-Ben Cat canal water discharge project, which requires an additional $800 million, and the Tan Hoa-Lo Gom canal sewage treatment and collection project, which requires another $500 million. — VNS
HCM CITY — The city must streamline administrative procedures to ensure a steady flow of foreign capital for infrastructure projects, experts have said.
Experts at the HCM City branch of the National Socio-Economic Forecasting Centre said the continued disbursement of registered foreign capital was even more critical than an attempt to attract more foreign direct investment (FDI).
Last year FDI into Viet Nam increased to more than US$60 billion, with HCM City accounting for more than $8 billion.
Beginning in January, HCM City’s Planning and Investment Department reformed several administrative procedures to prevent slow disbursement by investors.
The department said the city would also pilot some simplified changes in administrative procedures related to construction investment in new urban area projects, housing projects and industrial zone infrastructure projects.
Among the changes would be the abolishment of investment certificates for new urban areas, and housing and industrial zone projects.
The implementation of the United Nations Development Programme’s administrative reform project was also being expedited, city officials said.
Infrastructure projects
According to deputy chairman of HCM City People’s Committee Nguyen Trung Tin, several major transport projects in the 2008-2010 period would be prioritised for investment.
The city needs $15 billion from now to 2020 to develop transport infrastructure, including new roads, according to Tin. Many urgent projects need capital, such as the two-way street Ha Huy Giap, the interprovincial highway 15 expansion project, and theVuon Lai Street and Vam Thuat Bridge projects.
The city will also have to mobilise capital for nine sewage treatment plants and two important projects, the Tham Luong-Ben Cat canal water discharge project, which requires an additional $800 million, and the Tan Hoa-Lo Gom canal sewage treatment and collection project, which requires another $500 million. — VNS
Banking finance – Financial sector stable, as interest rates drop
Banking finance – Financial sector stable, as interest rates drop
HCM CITY — The domestic financial market has been kept stable over the first month of the year, while deposit and lending interest rates have both decreased.
Independent market watchdogs said that the domestic market was still running rather smoothly, with supply and demand of foreign currencies ensured. And this was in spite of the local market being affected by complications in the global financial market, they added.
The exchange rate in credit organisation transactions has already reached a ceiling. Meanwhile, the exchange rate between the US dollar and the Vietnamese dong on the free market was between VND150 – 216 higher than the rates offered by commercial banks.
The exchange rate between the euro and dong declined in proportion to changes of the euro on the international market. The EUR/VND exchange rate on the free market changed based on official market rate changes.
In January, most commercial banks cut their lending and deposit interest rates after the central bank decided to cut the annual basic interest rate from 8.5 per cent to 7 per cent.
In particular, interest rates for deposits in Vietnamese dong fell between 0.2 and 1.5 per cent per year in January against the previous month, with the current popular rates of 6.99 and 7.84 per cent per year.
Meanwhile, the borrowing rate was also down by between 0.5 per cent and 1.2 per cent to 10.82 and 11.52 per cent per year.
Some State-run commercial banks have provided loans with a preferential rates of 6.5 per cent to enterprises involved in sectors deemed to be "priority" by the Government.
The interest rate for dollar deposits dropped by between 0.5 per cent and 1.2 per cent/year to 2.35 and 3.55 per cent/year as compared with the previous month’s level. Meanwhile, the rates of dollar loans stood at 6.61 per cent, down by 0.1 and 0.5 per cent.
Generally, experts said, the decreases in both deposit and lending interest rates contributed to raising the volume of money injected into the economy in January by 0.52 per cent over the amount recorded in December.
Experts attributed the monetary market’s positive changes to efforts by the State Bank of Viet Nam (SBV) in supervising the domestic monetary market and credit institutions.
Among the measures taken have been injecting between VND5,000 billion and 6,000 billion to buy back valuable paper from credit institutions participating on the open market, and allowing commercial banks to withdraw their SBV compulsory bonds before maturity.
The bank also sold foreign currencies to credit institutions in order to meet demand. Additionally, it ensured an adequate supply of cash for credit organisations and stable and safe payment systems. — VNS
HCM CITY — The domestic financial market has been kept stable over the first month of the year, while deposit and lending interest rates have both decreased.
Independent market watchdogs said that the domestic market was still running rather smoothly, with supply and demand of foreign currencies ensured. And this was in spite of the local market being affected by complications in the global financial market, they added.
The exchange rate in credit organisation transactions has already reached a ceiling. Meanwhile, the exchange rate between the US dollar and the Vietnamese dong on the free market was between VND150 – 216 higher than the rates offered by commercial banks.
The exchange rate between the euro and dong declined in proportion to changes of the euro on the international market. The EUR/VND exchange rate on the free market changed based on official market rate changes.
In January, most commercial banks cut their lending and deposit interest rates after the central bank decided to cut the annual basic interest rate from 8.5 per cent to 7 per cent.
In particular, interest rates for deposits in Vietnamese dong fell between 0.2 and 1.5 per cent per year in January against the previous month, with the current popular rates of 6.99 and 7.84 per cent per year.
Meanwhile, the borrowing rate was also down by between 0.5 per cent and 1.2 per cent to 10.82 and 11.52 per cent per year.
Some State-run commercial banks have provided loans with a preferential rates of 6.5 per cent to enterprises involved in sectors deemed to be "priority" by the Government.
The interest rate for dollar deposits dropped by between 0.5 per cent and 1.2 per cent/year to 2.35 and 3.55 per cent/year as compared with the previous month’s level. Meanwhile, the rates of dollar loans stood at 6.61 per cent, down by 0.1 and 0.5 per cent.
Generally, experts said, the decreases in both deposit and lending interest rates contributed to raising the volume of money injected into the economy in January by 0.52 per cent over the amount recorded in December.
Experts attributed the monetary market’s positive changes to efforts by the State Bank of Viet Nam (SBV) in supervising the domestic monetary market and credit institutions.
Among the measures taken have been injecting between VND5,000 billion and 6,000 billion to buy back valuable paper from credit institutions participating on the open market, and allowing commercial banks to withdraw their SBV compulsory bonds before maturity.
The bank also sold foreign currencies to credit institutions in order to meet demand. Additionally, it ensured an adequate supply of cash for credit organisations and stable and safe payment systems. — VNS
Important Vietnamese Tax Changes
In January and February 2009, the Vietnamese Government announced, through the Ministry of Finance (MOF), a number of plans for tax reductions and deferral of tax payments, the details of which have been included in the recently issued Deloitte Tax Alerts. These changes affect Corporate Income Tax (CIT) and Value Added Tax (VAT). These measures are aimed at stimulating the Vietnamese economy.
A further major stimulus was released today affecting Personal Income Tax (PIT).
PIT Changes
Today, the MOF issued Circular 27/2009/TT-BTC, which provides that an employer is not required to withhold PIT from employees’ salaries and wages for the first five months of 2009.
The National Assembly will meet in May 2009. At that time, the National Assembly may decide whether the PIT not withheld from employees’ January through May 2009 salaries will be permanently forgiven, or be payable to the General Department of Taxation and, if so, under what terms.
In our view, the incentive granted in today’s Circular 27 clearly benefits those employees who are remunerated on a “gross of tax” basis. These employees’ cash flow should increase for the PIT that would normally have been withheld for the first five months of 2009. Furthermore, any PIT already withheld from 2009 salaries should be returned to employees.
For employees whose labor contracts are based on “net of tax” compensation, it is unclear how these tax savings will be realized by them and, effectively, it appears the tax benefit is earned by the employer.
The Vietnamese version of Circular 27/2009/TT-BTC is attached for your reference.
CIT and VAT Changes
A brief summary of the recently announced CIT and VAT key changes are:
* Small and Medium Vietnamese Enterprises (SMEs) have had their CIT rate reduced by 30% for the 4th quarter 2008 (to 19.6%), and for the 2009 tax year (to 17.5%);
* The 2009 CIT liabilities otherwise payable on a quarterly basis may each be deferred for payment by 9 months with no late payment or penalty interest accruing. Thus, the 1st quarter 2009 provisional payment due on 30 April 2009 may be deferred, without penalty or interest, until 31 January 2010; and
* The VAT rate has been reduced by 50% for goods and services provided by enterprises in certain industries, including tourism, automobile sales, domestic transportation and certain engineering works. For example, the standard VAT rate of 10%, for a hotel business, has been reduced to 5% output VAT with effect from 1 February through 31 December 2009.
In addition, some proposed regulations of PIT (yet to be approved) that may be of interest are as follows:
* Tax Treatment on Fringe Benefits : Under the new regulations, certain fringe benefits provided to which were previously not subject to tax (i.e. employees’ children school fees, home leave, relocation costs) and benefits previously taxed at a concession rate (i.e. domestic rents) will become taxable in full with effect from 1 January 2009. The impact of this, in some cases, resulted in more than 20% increased in tax cost.
In mid-January, the General Department of Taxation (“GDT”) drafted a circular to the MOF seeking to reinstate the previous tax treatment on fringe benefits, i.e. school fees, home leave and relocation costs will not be taxed. Based on the wordings of the draft circular, it appears that the tax exemption on fringe benefits is only applicable to foreign tax resident only. If this draft is approved and issued by the MOF, this will reduce the tax liability of foreign tax residents, i.e. expatriates substantially. In the draft circular, housing remains to be taxable in full.
It is yet to see if this draft will be approved by the MOF.
* Tax Treatment of Salaries and Bonus Relating to 2008, but Paid in 2009: Earlier this month, the GDT issued a Public Ruling dated 31 December 2008 which state that for “salary and bonuses and other benefits” that relates to the 2008 but was paid in 2009, the employer must calculate PIT based on the 2008 tax rates and not the 2009 tax rates. Resulting from this, many employers are required to recalculate the PIT payable in respect of salary and bonuses relating to 2008 but paid in 2009.
In the draft circular mentioned above, it was proposed that “salary and bonuses” paid by employers in 2009 be taxed at the 2009 PIT rates. It appears that there is no requirement to apply the 2008 tax rates even if the salary or bonus payments relates to 2008.
The draft is pending approval by the MOF.
* * * * *
Please consider the environment before printing.
Any advice, comment, or analysis (collectively, "advice") contained in this e-mail is made or given based on the relevant laws, regulations, and rulings (collectively, “authorities”) in effect as of the date of this post, and the facts and assumptions provided to us by you. These authorities are subject to change, and any such changes may be retroactive in their effect. Any changes to the authorities subsequent to the date of this post may affect the validity of the advice. We undertake no obligation to advise you of any changes or developments that may affect the advice in this post or any other matters set forth in this post.
Source: Deloitte Vietnam
A further major stimulus was released today affecting Personal Income Tax (PIT).
PIT Changes
Today, the MOF issued Circular 27/2009/TT-BTC, which provides that an employer is not required to withhold PIT from employees’ salaries and wages for the first five months of 2009.
The National Assembly will meet in May 2009. At that time, the National Assembly may decide whether the PIT not withheld from employees’ January through May 2009 salaries will be permanently forgiven, or be payable to the General Department of Taxation and, if so, under what terms.
In our view, the incentive granted in today’s Circular 27 clearly benefits those employees who are remunerated on a “gross of tax” basis. These employees’ cash flow should increase for the PIT that would normally have been withheld for the first five months of 2009. Furthermore, any PIT already withheld from 2009 salaries should be returned to employees.
For employees whose labor contracts are based on “net of tax” compensation, it is unclear how these tax savings will be realized by them and, effectively, it appears the tax benefit is earned by the employer.
The Vietnamese version of Circular 27/2009/TT-BTC is attached for your reference.
CIT and VAT Changes
A brief summary of the recently announced CIT and VAT key changes are:
* Small and Medium Vietnamese Enterprises (SMEs) have had their CIT rate reduced by 30% for the 4th quarter 2008 (to 19.6%), and for the 2009 tax year (to 17.5%);
* The 2009 CIT liabilities otherwise payable on a quarterly basis may each be deferred for payment by 9 months with no late payment or penalty interest accruing. Thus, the 1st quarter 2009 provisional payment due on 30 April 2009 may be deferred, without penalty or interest, until 31 January 2010; and
* The VAT rate has been reduced by 50% for goods and services provided by enterprises in certain industries, including tourism, automobile sales, domestic transportation and certain engineering works. For example, the standard VAT rate of 10%, for a hotel business, has been reduced to 5% output VAT with effect from 1 February through 31 December 2009.
In addition, some proposed regulations of PIT (yet to be approved) that may be of interest are as follows:
* Tax Treatment on Fringe Benefits : Under the new regulations, certain fringe benefits provided to which were previously not subject to tax (i.e. employees’ children school fees, home leave, relocation costs) and benefits previously taxed at a concession rate (i.e. domestic rents) will become taxable in full with effect from 1 January 2009. The impact of this, in some cases, resulted in more than 20% increased in tax cost.
In mid-January, the General Department of Taxation (“GDT”) drafted a circular to the MOF seeking to reinstate the previous tax treatment on fringe benefits, i.e. school fees, home leave and relocation costs will not be taxed. Based on the wordings of the draft circular, it appears that the tax exemption on fringe benefits is only applicable to foreign tax resident only. If this draft is approved and issued by the MOF, this will reduce the tax liability of foreign tax residents, i.e. expatriates substantially. In the draft circular, housing remains to be taxable in full.
It is yet to see if this draft will be approved by the MOF.
* Tax Treatment of Salaries and Bonus Relating to 2008, but Paid in 2009: Earlier this month, the GDT issued a Public Ruling dated 31 December 2008 which state that for “salary and bonuses and other benefits” that relates to the 2008 but was paid in 2009, the employer must calculate PIT based on the 2008 tax rates and not the 2009 tax rates. Resulting from this, many employers are required to recalculate the PIT payable in respect of salary and bonuses relating to 2008 but paid in 2009.
In the draft circular mentioned above, it was proposed that “salary and bonuses” paid by employers in 2009 be taxed at the 2009 PIT rates. It appears that there is no requirement to apply the 2008 tax rates even if the salary or bonus payments relates to 2008.
The draft is pending approval by the MOF.
* * * * *
Please consider the environment before printing.
Any advice, comment, or analysis (collectively, "advice") contained in this e-mail is made or given based on the relevant laws, regulations, and rulings (collectively, “authorities”) in effect as of the date of this post, and the facts and assumptions provided to us by you. These authorities are subject to change, and any such changes may be retroactive in their effect. Any changes to the authorities subsequent to the date of this post may affect the validity of the advice. We undertake no obligation to advise you of any changes or developments that may affect the advice in this post or any other matters set forth in this post.
Source: Deloitte Vietnam
Wednesday, 19 November 2008
New Telephone numbers - HCMC
Làm sao để nhận biết các đầu số điện thoại
Nhà cung cấp......Đầu số nhận biết............Số phải thêm vào
VNPT..............5, 6, 7, 8, 9...............3
EVN Telecom.......từ 20xxxxx đến 25xxxxx......2
Viettel...........từ 26xxxxx đến 29xxxxx......6
Saigon Postel.....từ 40xxxxx đến 44xxxxx......5
VTC...............45xxxxx.....................4
FPT...............30xxxxx.....................7
Nhà cung cấp......Đầu số nhận biết............Số phải thêm vào
VNPT..............5, 6, 7, 8, 9...............3
EVN Telecom.......từ 20xxxxx đến 25xxxxx......2
Viettel...........từ 26xxxxx đến 29xxxxx......6
Saigon Postel.....từ 40xxxxx đến 44xxxxx......5
VTC...............45xxxxx.....................4
FPT...............30xxxxx.....................7
Tuesday, 18 November 2008
Provinces of Vietnam
Vietnam is divided into 58 provinces (known in Vietnamese as tỉnh). There are also 5 centrally-controlled municipalities existing at the same level as provinces (thành phố trực thuộc trung ương).
The provinces are divided into districts (huyện), provincial cities (thành phố trực thuộc tỉnh), and towns (thị xã), which are subdivided into towns (thị trấn) or communes (xã).
The centrally-controlled municipalities are divided into rural districts (huyện) and urban districts (quận), which are subdivided into wards (phường).
Government
Vietnamese provinces are, at least in theory, controlled by a People's Council, elected by the inhabitants. The People's Council appoints a People's Committee, which acts as the executive arm of the provincial government. This arrangement is a somewhat simplified version of the situation in Vietnam's national government. Provincial governments are expected to be subordinate to the central government.
People's Council
Each People's Council has a Standing Committee made up of the Chairperson and his/her deputies, who are elected from among the representatives in the People's Council. The Standing Committee has a number of functions, including representing the People's Council when it is not in session. There are also a number of other committees established to deal with specific issues. All provinces have an Economic and Budgetary Committee, a Social and Cultural Committee, and a Legal Committee. If a province has many inhabitants who are not ethnically Vietnamese, there will probably be a Committee for Ethnic Affairs as well.
Citizens are eligible to vote in People's Council elections from when they are aged eighteen, but cannot stand for election until they are aged twenty-one. To become a candidate, one can either nominate oneself or be selected by the Fatherland Front. Nominated candidates are then voted on at "voters' conferences", which are organized by the Fatherland Front. Attendees determine, sometimes by secret ballot and sometimes by a show of hands, whether candidates meet the criteria set down by the People's Council. Candidates who the conference does not "express trust" in cannot stand for election.
The number of candidates elected per voting district is between one and three. There must be more candidates standing in each district than there are seats to be filled.
People's Committee
The People's Committee is, as mentioned previously, the executive arm of a provincial government, and is responsible for formulating and implementing policy. It may be thought of as the equivalent of a cabinet. The People's Committee will have a President and a Vice-President, and between nine or eleven ordinary members.
List and statistics
Name..........Capital
Hà Nội Kinh-Dong Bang Song Hong
Bắc Ninh..........Bắc Ninh
Hà Nam..........Phủ Lý
Hải Dương..........Hải Dương
Hưng Yên..........Hưng Yên
Nam Định..........Nam Định
Ninh Bình..........Ninh Bình
Thái Bình..........Thái Bình
Vĩnh Phúc..........Vĩnh Yên
Bắc Trung Bộ
Hà Tĩnh..........Hà Tĩnh
Nghệ An..........Vinh
Quảng Bình..........Đồng Hới
Quảng Trị..........Đông Hà
Thanh Hoá..........Thanh Hoá
Thừa Thiên-Huế..........Huế
Đồng Bắc
Bắc Giang..........Bắc Giang
Bắc Kạn..........Bắc Kạn
Cao Bằng..........Cao Bằng
Hà Giang..........Hà Giang
Lạng Sơn..........Lạng Sơn
Lào Cai..........Lào Cai
Phú Thọ..........Việt Trì
Quảng Ninh..........Hạ Long
Thái Nguyên..........Thái Nguyên
Tuyên Quang..........Tuyên Quang
Yên Bái..........Yên Bái
Tây Bắc
Điện Biên..........Điện Biên Phủ
Hoà Bình..........Hoà Bình
Lai Châu..........Lai Châu
Sơn La..........Sơn La
Tây Nguyên
Daklak..........Buôn Ma Thuột
Dak Nông..........Gia Nghĩa
Gia Lai..........Pleiku
Kontum..........Kontum
Lâm Đồng..........Đà Lạt
Nam Trung Bộ
Bình Định..........Quy Nhơn
Khánh Hòa..........Nha Trang
Phú Yên..........Tuy Hòa
Quảng Nam..........Tam Kỳ
Quảng Ngãi..........Quảng Ngãi
Đồng Nam Bộ
Bà Rịa-Vũng Tàu..........Vũng Tàu
Bình Dương..........Thủ Dầu Một
Bình Phước..........Đồng Xoài
Bình Thuận..........Phan Thiết
Đồng Nai..........Biên Hòa
Ninh Thuận..........Phan Rang-Tháp Chàm
Tây Ninh..........Tây Ninh
Tây Nam Bo – Đồng Bằng Sông Cửu Long
An Giang..........Long Xuyên
Bạc Liêu..........Bạc Liêu
Bến Tre..........Bến Tre
Cà Mau..........Cà Mau
Đồng Tháp..........Cao Lãnh
Hậu Giang..........Vị Thanh
Kiên Giang..........Rạch Giá
Long An..........Tân An
Sóc Trăng..........Sóc Trăng
Tiền Giang..........Mỹ Tho
Trà Vinh..........Trà Vinh
Vĩnh Long..........Vĩnh Long
Municipalities
Hà Nội..........Hà Nội Kinh-Dong Bang Song Hong
Hải Phòng..........Hà Nội Kinh-Dong Bang Song Hong
Đà Nẵng ..........Nam Trung Bộ
Hồ Chí Minh City..........Đồng Nam Bộ
Cần Thơ..........Tây Nam Bo – Đồng Bằng Sông Cửu Long
Regions
The Vietnamese government often groups the various provinces into eight regions.
Northwestern (Tây Bắc) contains four inland provinces in the west of Vietnam's northern part. Two of them border Laos, and one borders China.
Northeastern (Dong Bac) contains eleven mountainous provinces north of the highly populated Red River lowlands.
Greater Ha Noi – Red River Delta (Hà Nội Kinh-Dong Bang Song Hong) contains nine small, populous provinces around the Red River, including the national capital Hanoi, and the municipality of Haiphong.
North Central Coast (Bắc Trung Bộ) contains six provinces in the northern half of Vietnam's central part. All provinces in this region stretch from the coast in the east to Laos in the west.
South Central Coast (Nam Trung Bộ) contains five coastal provinces in the southern half of Vietnam's central part. The region also includes the independent municipality of Danang.
Central Highlands (Tây Nguyên) contains the five inland mountainous provinces of south-central Vietnam.
Southeastern (Dong Nam Bo) contains those parts of southern Vietnam which are north of the Mekong delta. There are seven provinces, plus the independent municipality of Ho Chi Minh City.
Southwestern – Mekong River Delta (Tây Nam Bo Việt Nam-Đồng Bằng Sông Cửu Long) is Vietnam's southernmost region, and contains twelve mostly small but populous provinces in the Mekong delta and the independent municipality of Can Tho.
The provinces are divided into districts (huyện), provincial cities (thành phố trực thuộc tỉnh), and towns (thị xã), which are subdivided into towns (thị trấn) or communes (xã).
The centrally-controlled municipalities are divided into rural districts (huyện) and urban districts (quận), which are subdivided into wards (phường).
Government
Vietnamese provinces are, at least in theory, controlled by a People's Council, elected by the inhabitants. The People's Council appoints a People's Committee, which acts as the executive arm of the provincial government. This arrangement is a somewhat simplified version of the situation in Vietnam's national government. Provincial governments are expected to be subordinate to the central government.
People's Council
Each People's Council has a Standing Committee made up of the Chairperson and his/her deputies, who are elected from among the representatives in the People's Council. The Standing Committee has a number of functions, including representing the People's Council when it is not in session. There are also a number of other committees established to deal with specific issues. All provinces have an Economic and Budgetary Committee, a Social and Cultural Committee, and a Legal Committee. If a province has many inhabitants who are not ethnically Vietnamese, there will probably be a Committee for Ethnic Affairs as well.
Citizens are eligible to vote in People's Council elections from when they are aged eighteen, but cannot stand for election until they are aged twenty-one. To become a candidate, one can either nominate oneself or be selected by the Fatherland Front. Nominated candidates are then voted on at "voters' conferences", which are organized by the Fatherland Front. Attendees determine, sometimes by secret ballot and sometimes by a show of hands, whether candidates meet the criteria set down by the People's Council. Candidates who the conference does not "express trust" in cannot stand for election.
The number of candidates elected per voting district is between one and three. There must be more candidates standing in each district than there are seats to be filled.
People's Committee
The People's Committee is, as mentioned previously, the executive arm of a provincial government, and is responsible for formulating and implementing policy. It may be thought of as the equivalent of a cabinet. The People's Committee will have a President and a Vice-President, and between nine or eleven ordinary members.
List and statistics
Name..........Capital
Hà Nội Kinh-Dong Bang Song Hong
Bắc Ninh..........Bắc Ninh
Hà Nam..........Phủ Lý
Hải Dương..........Hải Dương
Hưng Yên..........Hưng Yên
Nam Định..........Nam Định
Ninh Bình..........Ninh Bình
Thái Bình..........Thái Bình
Vĩnh Phúc..........Vĩnh Yên
Bắc Trung Bộ
Hà Tĩnh..........Hà Tĩnh
Nghệ An..........Vinh
Quảng Bình..........Đồng Hới
Quảng Trị..........Đông Hà
Thanh Hoá..........Thanh Hoá
Thừa Thiên-Huế..........Huế
Đồng Bắc
Bắc Giang..........Bắc Giang
Bắc Kạn..........Bắc Kạn
Cao Bằng..........Cao Bằng
Hà Giang..........Hà Giang
Lạng Sơn..........Lạng Sơn
Lào Cai..........Lào Cai
Phú Thọ..........Việt Trì
Quảng Ninh..........Hạ Long
Thái Nguyên..........Thái Nguyên
Tuyên Quang..........Tuyên Quang
Yên Bái..........Yên Bái
Tây Bắc
Điện Biên..........Điện Biên Phủ
Hoà Bình..........Hoà Bình
Lai Châu..........Lai Châu
Sơn La..........Sơn La
Tây Nguyên
Daklak..........Buôn Ma Thuột
Dak Nông..........Gia Nghĩa
Gia Lai..........Pleiku
Kontum..........Kontum
Lâm Đồng..........Đà Lạt
Nam Trung Bộ
Bình Định..........Quy Nhơn
Khánh Hòa..........Nha Trang
Phú Yên..........Tuy Hòa
Quảng Nam..........Tam Kỳ
Quảng Ngãi..........Quảng Ngãi
Đồng Nam Bộ
Bà Rịa-Vũng Tàu..........Vũng Tàu
Bình Dương..........Thủ Dầu Một
Bình Phước..........Đồng Xoài
Bình Thuận..........Phan Thiết
Đồng Nai..........Biên Hòa
Ninh Thuận..........Phan Rang-Tháp Chàm
Tây Ninh..........Tây Ninh
Tây Nam Bo – Đồng Bằng Sông Cửu Long
An Giang..........Long Xuyên
Bạc Liêu..........Bạc Liêu
Bến Tre..........Bến Tre
Cà Mau..........Cà Mau
Đồng Tháp..........Cao Lãnh
Hậu Giang..........Vị Thanh
Kiên Giang..........Rạch Giá
Long An..........Tân An
Sóc Trăng..........Sóc Trăng
Tiền Giang..........Mỹ Tho
Trà Vinh..........Trà Vinh
Vĩnh Long..........Vĩnh Long
Municipalities
Hà Nội..........Hà Nội Kinh-Dong Bang Song Hong
Hải Phòng..........Hà Nội Kinh-Dong Bang Song Hong
Đà Nẵng ..........Nam Trung Bộ
Hồ Chí Minh City..........Đồng Nam Bộ
Cần Thơ..........Tây Nam Bo – Đồng Bằng Sông Cửu Long
Regions
The Vietnamese government often groups the various provinces into eight regions.
Northwestern (Tây Bắc) contains four inland provinces in the west of Vietnam's northern part. Two of them border Laos, and one borders China.
Northeastern (Dong Bac) contains eleven mountainous provinces north of the highly populated Red River lowlands.
Greater Ha Noi – Red River Delta (Hà Nội Kinh-Dong Bang Song Hong) contains nine small, populous provinces around the Red River, including the national capital Hanoi, and the municipality of Haiphong.
North Central Coast (Bắc Trung Bộ) contains six provinces in the northern half of Vietnam's central part. All provinces in this region stretch from the coast in the east to Laos in the west.
South Central Coast (Nam Trung Bộ) contains five coastal provinces in the southern half of Vietnam's central part. The region also includes the independent municipality of Danang.
Central Highlands (Tây Nguyên) contains the five inland mountainous provinces of south-central Vietnam.
Southeastern (Dong Nam Bo) contains those parts of southern Vietnam which are north of the Mekong delta. There are seven provinces, plus the independent municipality of Ho Chi Minh City.
Southwestern – Mekong River Delta (Tây Nam Bo Việt Nam-Đồng Bằng Sông Cửu Long) is Vietnam's southernmost region, and contains twelve mostly small but populous provinces in the Mekong delta and the independent municipality of Can Tho.
Applying for a Work Permit in Vietnam
The work permit is in the form of a licence. (giấy phép lao động)
Who should apply
All enterprises and organizations recruiting foreign laborers to work in Vietnam, except:
* Foreign laborers entering Vietnam to work for a period of less than 03 (three) months; and those entering Vietnam to resolve and emergency situation such as a breakdown or a technically or technologically complex situation which suddenly arises and which affects, or has the risk of affecting production or business and which Vietnamese experts and foreign experts in Vietnam are not able to resolve
* Foreigners who are members of the Board of Management or member’s council (in the case of a limited liability company) established under Vietnamese laws with legal status
* Foreigners who are head of representative offices or branches in Vietnam
* Foreign lawyers to whom Ministry of Justice has issued a certificate to practice in accordance with laws
According to the current labour legislation, all foreign staff are required to have a work permit to work legally in Vietnam.
Application has to be made at the Department of Labor, War Invalids and Social Affairs in the locality where enterprises locate their headquarters.
Validity of the License and application fee
Fees:
* Fees on granting a working license: 400.000 VND/permit
* Fees on re-granting a working license: 300.000 VND/permit
* Fees on extension of a working license: 200.000 VND/permit
Duration:
* Same duration as the duration of the labor contract or as set out in the decision of the foreign party on appointment, but shall not exceed 36 months.
Eligibility of Applicants
1. Being 18 years of age or older
2. Being physically fit to the work requirements
3. Must have highly technical skills or highly professional qualifications (including: engineers and persons of a standards similar to or higher than engineers; traditional trade artisans) and be very experienced and be senior professionally in the direction of production or business operation or in management work which Vietnamese employees are not yet able to perform.
4. Have no previous conviction or criminal record and must not currently be subject to criminal prosecution or any criminal sentence in accordance with Vietnamese and foreign laws
5. Foreign employees engaged in private medical or pharmaceutical practices or directly carrying out disease examination and treatment in Vietnam must satisfy all conditions stipulated by the Vietnamese laws in relation to private medical or pharmaceutical practice.
Application Dossier
The following documents are required to be submitted in two copies in the work permit application.
1. Copy of the business licence
2. Request to issue Work Permit form
3. Copy of labour contract or offer letter
4. Application form (Yellow form No. 3)
5. Curriculum vitae (Yellow form No. 4)
6. Health check report
7. Authenticated Educational qualifications
8. Authenticated Criminal record check from home country
9. Four passport sized colour photographs
10. Judicial Record in Vietnam
Notes
No. 6
A full medical check up at a hospital authorised to issue medical certificates for work permit purposes. Columbia, FV Hospital and SOS are among those authorised by the labour department.
No. 7
A copy of the certificates notarised by the public notary, certified by the Ministry of Foreign Affairs and endorsed by the Vietnamese embassy. Copies of the certificates on professional skills include bachelor, master, doctor degrees on qualifications granted under the laws of the foreign countries. If the foreigners are craftsmen of traditional crafts or are persons having experience, without formal certificates; they shall be required to provide written documents provided by competent authorities of their country attesting to their qualifications and experience.
In the absence of a degree obtained for more than 5 years, a certificate of experience can be used in lieu of the academic degree. Professional qualifications are not recognised as a university degree.
The notarised copies have to be sent for translation at the People's Committee.
No. 8
The original letter, endorsed by the Vietnamese embassy is required. This is also known as Letter of Good Conduct or Police Record.
The letter has to be translation at the People's Committee.
No. 9
The color photos shall show the applicant with a bare head, taken from the front, showing clearly the face and the 2 ears, and without glasses.
Item 10.
This is required is the employee has lived in Vietnam for more than six months prior to applying for the work permit.
The Judicial record (Lý Lịch Tư Pháp)is issued by the Ministry of Justice (Sở Tư Pháp).
The application requires
1. The application form
2. Original passport and copy of the passport and current visa, which will be sighted by the officer of the Justice department.
3. Certification of current residence in the form of a letter (Đơn Xin Xác Nhận) signed by the employee and endorsed by the local police.
Non-compliance penalty
* A fine between 5.000.000 VND to 10.000.000 VND is applied to employers using foreign laborers who have no work permit.
* Sanction of expelling foreign laborers is applied when foreigners working in Vietnam for over 3 months have no work permit or use the invalid work permits as stipulated in Clause 1, Article 133 of supplemented and amended Labor Code
Please take note of the following:
Applying for a Visa and work permit are two separate issues.
A visa gives a foreign national the right to be in Vietnam.
A work permit gives a foreign national the right to work in Vietnam.
They are governed by different laws and are administered by different government agencies.
After the work permit has been issued, the employee can apply for a temporary resident card (Thẻ tạm trú)which can replace the visa, and allow visa free travel within and in/out of Vietnam for the duration stipulated in the card. The duration shall be the same as the term of the work permit.
Legal texts regulating this license
Code of Labor
Circular No. 09/TT- BLDTBXH dated March 18, 1997 of the Ministry of Labor, War Invalid and Social Affair guiding the implementation of issuance of Working Licenses (for foreign laborers working in Vietnam)
Decree No.105/2003/ND-CP of September 17, 2003 detailing and guiding the implementation of a number of articles of the Labor Code regarding the recruitment and management of foreign laborers working in Vietnam
DECREE No.93/2005/ND-CP on amendment of and addition to a number of articles of Decree No.105/2003/ND-CP of the government dated 17 September 2003 providing detailed regulations and guidelines on implementation of a number of articles of the labour code with respect to employment and administration of foreign employees working in Vietnam
Circular 04/2004/TT-BLDTBXH dated 10/3/2004 guiding the implementation of some articles of Decree 105/2003/ND-CP dated 17/9/2003 detailing and guiding the implementation of a number of articles of the Labor Code regarding the recruitment and management of foreign laborers working in Vietnam
Circular 24/2005/TT-BLDTBXH dated 26/9/2005 of the Ministry of Labor, War Invalid and Social Affair amending and supplementing a number of points of Circular 04/2004/TT-BLDTBXH dated 10/3/2004
Decree No, 113/2004/ND-CP dated April 16, 2004 of the Government sanctioning administrative violation on labor
Decision No.54/2005/QD- BTC dated August 04, 2005 of the Minister of Finance stipulating fees on issuance of working license for foreign laborers working in Vietnam
Other useful information
* Enterprises, agencies and organizations (hereinafter called employers) having the right to recruit foreign labors consist of:
1. Enterprises operating under the State Enterprise Law, the Enterprise Law or the Law on Foreign Investment in Vietnam;
2. Foreign contractors (principal contractors, sub- contractors) performing contracts in Vietnam;
3. Representative offices and branches of economic, trade, financial, banking, insurance, scientific- technical, cultural, sport, education, training, and medical organizations;
4. Social professional organizations;
5. Non-business units of the State;
6. Medical, cultural, educational, training and sports establishments (including those set up under the Enterprise Law, the State Enterprise Law or the Law on Foreign Investment in Vietnam)
7. Vietnam- based offices of foreign or international projects;
8. Vietnam- based management offices of foreign parties to business cooperation contracts;
9. Vietnam - based organizations practicing law under the provision of Vietnamese law;
10. Cooperative set up and operating under the Cooperative Law
* Employers listed in item 1 above (state owned enterprises, enterprises under Enterprise Law and foreign invested projects operating under the Foreign Investment Law are allowed to recruit foreign laborers not exceeding 3 (three) percent of the number of their current employees. A minimum of 1 person may be recruited.
* The regulation on the ratio of foreign employees that may be employed by employers listed in items 2-10 above shall not apply; however, they must obtain approval from the Chairman of the People’s Committee of the province or city under central authority to recruit a larger number of foreign laborers.
* Where enterprises or organizations (items 1-10 inclusive) have obtained an approval of a project or an operating license by a Vietnamese authorized State body in which the number of foreign employees is specified, the approval from the Chairman of the People’s Committee shall not be required.
Who should apply
All enterprises and organizations recruiting foreign laborers to work in Vietnam, except:
* Foreign laborers entering Vietnam to work for a period of less than 03 (three) months; and those entering Vietnam to resolve and emergency situation such as a breakdown or a technically or technologically complex situation which suddenly arises and which affects, or has the risk of affecting production or business and which Vietnamese experts and foreign experts in Vietnam are not able to resolve
* Foreigners who are members of the Board of Management or member’s council (in the case of a limited liability company) established under Vietnamese laws with legal status
* Foreigners who are head of representative offices or branches in Vietnam
* Foreign lawyers to whom Ministry of Justice has issued a certificate to practice in accordance with laws
According to the current labour legislation, all foreign staff are required to have a work permit to work legally in Vietnam.
Application has to be made at the Department of Labor, War Invalids and Social Affairs in the locality where enterprises locate their headquarters.
Validity of the License and application fee
Fees:
* Fees on granting a working license: 400.000 VND/permit
* Fees on re-granting a working license: 300.000 VND/permit
* Fees on extension of a working license: 200.000 VND/permit
Duration:
* Same duration as the duration of the labor contract or as set out in the decision of the foreign party on appointment, but shall not exceed 36 months.
Eligibility of Applicants
1. Being 18 years of age or older
2. Being physically fit to the work requirements
3. Must have highly technical skills or highly professional qualifications (including: engineers and persons of a standards similar to or higher than engineers; traditional trade artisans) and be very experienced and be senior professionally in the direction of production or business operation or in management work which Vietnamese employees are not yet able to perform.
4. Have no previous conviction or criminal record and must not currently be subject to criminal prosecution or any criminal sentence in accordance with Vietnamese and foreign laws
5. Foreign employees engaged in private medical or pharmaceutical practices or directly carrying out disease examination and treatment in Vietnam must satisfy all conditions stipulated by the Vietnamese laws in relation to private medical or pharmaceutical practice.
Application Dossier
The following documents are required to be submitted in two copies in the work permit application.
1. Copy of the business licence
2. Request to issue Work Permit form
3. Copy of labour contract or offer letter
4. Application form (Yellow form No. 3)
5. Curriculum vitae (Yellow form No. 4)
6. Health check report
7. Authenticated Educational qualifications
8. Authenticated Criminal record check from home country
9. Four passport sized colour photographs
10. Judicial Record in Vietnam
Notes
No. 6
A full medical check up at a hospital authorised to issue medical certificates for work permit purposes. Columbia, FV Hospital and SOS are among those authorised by the labour department.
No. 7
A copy of the certificates notarised by the public notary, certified by the Ministry of Foreign Affairs and endorsed by the Vietnamese embassy. Copies of the certificates on professional skills include bachelor, master, doctor degrees on qualifications granted under the laws of the foreign countries. If the foreigners are craftsmen of traditional crafts or are persons having experience, without formal certificates; they shall be required to provide written documents provided by competent authorities of their country attesting to their qualifications and experience.
In the absence of a degree obtained for more than 5 years, a certificate of experience can be used in lieu of the academic degree. Professional qualifications are not recognised as a university degree.
The notarised copies have to be sent for translation at the People's Committee.
No. 8
The original letter, endorsed by the Vietnamese embassy is required. This is also known as Letter of Good Conduct or Police Record.
The letter has to be translation at the People's Committee.
No. 9
The color photos shall show the applicant with a bare head, taken from the front, showing clearly the face and the 2 ears, and without glasses.
Item 10.
This is required is the employee has lived in Vietnam for more than six months prior to applying for the work permit.
The Judicial record (Lý Lịch Tư Pháp)is issued by the Ministry of Justice (Sở Tư Pháp).
The application requires
1. The application form
2. Original passport and copy of the passport and current visa, which will be sighted by the officer of the Justice department.
3. Certification of current residence in the form of a letter (Đơn Xin Xác Nhận) signed by the employee and endorsed by the local police.
Non-compliance penalty
* A fine between 5.000.000 VND to 10.000.000 VND is applied to employers using foreign laborers who have no work permit.
* Sanction of expelling foreign laborers is applied when foreigners working in Vietnam for over 3 months have no work permit or use the invalid work permits as stipulated in Clause 1, Article 133 of supplemented and amended Labor Code
Please take note of the following:
Applying for a Visa and work permit are two separate issues.
A visa gives a foreign national the right to be in Vietnam.
A work permit gives a foreign national the right to work in Vietnam.
They are governed by different laws and are administered by different government agencies.
After the work permit has been issued, the employee can apply for a temporary resident card (Thẻ tạm trú)which can replace the visa, and allow visa free travel within and in/out of Vietnam for the duration stipulated in the card. The duration shall be the same as the term of the work permit.
Legal texts regulating this license
Code of Labor
Circular No. 09/TT- BLDTBXH dated March 18, 1997 of the Ministry of Labor, War Invalid and Social Affair guiding the implementation of issuance of Working Licenses (for foreign laborers working in Vietnam)
Decree No.105/2003/ND-CP of September 17, 2003 detailing and guiding the implementation of a number of articles of the Labor Code regarding the recruitment and management of foreign laborers working in Vietnam
DECREE No.93/2005/ND-CP on amendment of and addition to a number of articles of Decree No.105/2003/ND-CP of the government dated 17 September 2003 providing detailed regulations and guidelines on implementation of a number of articles of the labour code with respect to employment and administration of foreign employees working in Vietnam
Circular 04/2004/TT-BLDTBXH dated 10/3/2004 guiding the implementation of some articles of Decree 105/2003/ND-CP dated 17/9/2003 detailing and guiding the implementation of a number of articles of the Labor Code regarding the recruitment and management of foreign laborers working in Vietnam
Circular 24/2005/TT-BLDTBXH dated 26/9/2005 of the Ministry of Labor, War Invalid and Social Affair amending and supplementing a number of points of Circular 04/2004/TT-BLDTBXH dated 10/3/2004
Decree No, 113/2004/ND-CP dated April 16, 2004 of the Government sanctioning administrative violation on labor
Decision No.54/2005/QD- BTC dated August 04, 2005 of the Minister of Finance stipulating fees on issuance of working license for foreign laborers working in Vietnam
Other useful information
* Enterprises, agencies and organizations (hereinafter called employers) having the right to recruit foreign labors consist of:
1. Enterprises operating under the State Enterprise Law, the Enterprise Law or the Law on Foreign Investment in Vietnam;
2. Foreign contractors (principal contractors, sub- contractors) performing contracts in Vietnam;
3. Representative offices and branches of economic, trade, financial, banking, insurance, scientific- technical, cultural, sport, education, training, and medical organizations;
4. Social professional organizations;
5. Non-business units of the State;
6. Medical, cultural, educational, training and sports establishments (including those set up under the Enterprise Law, the State Enterprise Law or the Law on Foreign Investment in Vietnam)
7. Vietnam- based offices of foreign or international projects;
8. Vietnam- based management offices of foreign parties to business cooperation contracts;
9. Vietnam - based organizations practicing law under the provision of Vietnamese law;
10. Cooperative set up and operating under the Cooperative Law
* Employers listed in item 1 above (state owned enterprises, enterprises under Enterprise Law and foreign invested projects operating under the Foreign Investment Law are allowed to recruit foreign laborers not exceeding 3 (three) percent of the number of their current employees. A minimum of 1 person may be recruited.
* The regulation on the ratio of foreign employees that may be employed by employers listed in items 2-10 above shall not apply; however, they must obtain approval from the Chairman of the People’s Committee of the province or city under central authority to recruit a larger number of foreign laborers.
* Where enterprises or organizations (items 1-10 inclusive) have obtained an approval of a project or an operating license by a Vietnamese authorized State body in which the number of foreign employees is specified, the approval from the Chairman of the People’s Committee shall not be required.
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