The Vietnamese Government published Decision No. 105/NQ-CP (Vietnam Resolution 105) on September 9, 2021, which goes into effect on the same date and covers assistance policies and activities aimed at companies and business households affected by the Covid-19 epidemic.
Vietnam Resolution 105’s major goals are to offer instructions and action plans aimed at restarting and growing production and manufacturing facilities, as well as providing enterprises with subsidies, financial and cash flow relief.
The following are summaries of significant points.
Priority vaccines for critical industries and a plan for restarting business activities
The Ministry of Health has been charged with replenishing prioritized groups for vaccines suited for production and other vital industries, as well as publishing thorough testing guidelines, testing equipment procurement, self-testing, and a plan for restarting business operations.
Centralised digital platform for pandemic prevention
The Ministry of Information and Communications is to construct a digital platform for pandemic prevention to ensure centralized information to support enterprises, cooperatives and business households.
Free circulation of essential goods and materials
The Ministry of Transport is to ensure stable production and transport of goods. It is not to prescribe additional conditions or permits that hinder circulation, especially for essential goods and materials, and not to further increase costs for businesses.
Reduction in taxes and land rents, digital signatures for original documents and safe and clear custom clearance processes
Ministry of Finance and Vietnam Customs related actions:
- Expeditiously implement the promulgated policies on relaxation and reduction of taxes, fees, charges, and land rents.
Allow enterprises to submit scanned copies certified by digital signatures for documents that must be submitted as originals in the form of paper/notarized/certified copies.
- Instruct customs branches for the continuous, timely, and safe customs clearance to meet the requirements of producing and machining components for enterprises in the field of electronics and high-technology, and for enterprises, cooperatives and business households to import essential goods for pandemic prevention, cures, medical and children’s foods.
Stabilise production and minimise closure of entire factories
Localities are also required to follow specific regulations:
- Proactively manage and facilitate conditions for businesses to maintain stable production while preventing and fighting the epidemic.
Minimize the closure of entire factories.
- Remove challenges that disrupt the supply chain and goods circulation and prevent further sub-permits to be created which increases costs of business to occur.
Exemption of trade union fees for businesses affected by the pandemic
Vietnam General Confederation of Labour is required to research and consider the exemption of trade union dues for union members at businesses affected by the COVID-19 pandemic in 2021 and 2022.
Ease of regulations for granting work permits for foreign employees, work relocation with a mandate provision, exemptions for insurance late payments
- The Ministry of Labour, War Invalids and Social Affairs is required to take specific relief actions:
- Instruct the Vietnam Social Insurance department to research and recommend the exemption from fines for late payment of social insurance arising in 2020 and 2021.
- Instruct localities for flexible implementation and ease of regulations in terms of granting work permits for foreign employees in Vietnam.
- Allow foreign individuals who have been granted a work permit which is still in effect to be allocated/transferred to work in a different city or province with a mandate, not exceeding 6 months. The employer must report to the labour management agency the location where the foreign individual is transferred for work, without having to renew the work permit.
Mutual recognition of “vaccine passports’ between Vietnam and other countries
The Ministry of Foreign Affairs has been assigned to speed up the research, negotiation, and mutual recognition of “vaccine passports” with other countries and focus on tasks to reopen the economy.
Please contact Metasource Asia if you would like to discuss how Vietnam Resolution 105 may apply to you, and stay informed about future updates from the authorities regarding support policies for international investors in Vietnam.
If you need any assistance with these or any other matters relevant for international investors in Vietnam, our experts are ready to work with your company to ensure you understand how the above will apply to your specific situation in Vietnam.