Major economic policies take effects beginning May 1

A number of new economic policies took effect on May 1, including rise in minimum salary and use of e-invoices.

Minimum salary to be raised

The Government has approved a plan to raise minimum wage for state employees to VND830,000 ($39.67), from the current VND730,000 ($34.89) a month constituting a 13.69 per cent increase.

The salary hike will benefit state officials, labourers of state-owned enterprises, together with those who work for state military and administrative agencies.

Use of e-invoices

The Ministry of Finance issued a circular on March 14 to allow the use of electronic invoices.

The electronic invoices will enable local businesses to save time, as they can store the invoices digitally and will not have to print them.

Before switching to e-invoices, businesses must first inform their tax agencies.

Stopping gold deposit and leading activities

The Governor of the State Bank of Vietnam issued a circular to end gold deposits and lending activities in an effort to mitigate risks in the domestic market. This comes six months after regulations to tighten control over such activities.

Financial institutions will no longer be able to lend, make deposits, invest or mobilise gold.

Raising key interest rates to 14 per cent year

The State Bank of Vietnam decided to increase refinance interest rate by 1per cent, bringing it to 14 per cent. Rediscount interest rate was also increased by 1 per cent, to 13 per cent.

Raising brokerage fees for securities services

The Ministry of Finance has recently issued a Circular No 38/2011/TT-BTC regulating fees for stock operations. Brokerage fees for stock trades (including shares being traded on the UPCoM floor) at securities companies will be between 0.15 per cent and 0.5 per cent of the total value of the trade, while for bonds and fund certificates the rate will be between 0.02 and 0.1 per cent

The new regulations also apply to the underwriting fees levied by securities brokers and banks for stock purchases. The fees account for between 0.5 per cent and 2 per cent of the underwriting value. – DtiNews

 

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2011