New salary scheme; Ministry of Industry and Trade finalizes electricity generation price framework for 2023

Develop a plan to implement a new salary regime

The Government has just issued Resolution 164 of the regular Government meeting in September and the Government's online conference with localities. Accordingly, the Government requested the Ministry of Home Affairs and relevant ministries and agencies to proactively develop regulatory documents and prepare specific tasks to promptly implement the new salary regime when approved by the Central Government and the National Assembly.

Previously, at the regular meeting of the Government , the agencies said that the State budget had saved 500,000 billion VND to prepare for salary reform in the next 3 years (2024-2026).

Submit to the Central Committee and the National Assembly the new salary regime from July 1, 2024

Authorized by the Prime Minister, Minister of Home Affairs Pham Thi Thanh Tra has just sent a report to the National Assembly on the management of cadres and civil servants.

According to the Minister of Home Affairs, implementing the National Assembly's resolution, the Government has issued Decree No. 24, stipulating the basic salary for cadres, civil servants, public employees and armed forces. Accordingly, from July 1, 2023, the basic salary will be adjusted from VND 1.49 million to VND 1.80 million (an increase of 20.8%); at the same time, pensions and preferential allowances for meritorious people will be adjusted according to the basic salary accordingly.

In the coming period, implementing the opinions of the Politburo and the National Assembly, the Government will submit to the Central Committee and the National Assembly the implementation of a comprehensive reform of the new wage policy according to Resolution No. 27 from July 1, 2024. (See more)

Ministry of Industry and Trade approves electricity generation price framework for 2023

The Minister of Industry and Trade has just issued a decision approving the electricity generation price framework for 2023.
The price framework is issued annually as a basis for investors of power plant projects to negotiate electricity prices and sign electricity purchase contracts with Vietnam Electricity Group (EVN), ensuring that electricity prices do not exceed the price framework issued by the Ministry of Industry and Trade.

Accordingly, the electricity generation price range for coal-fired thermal power plants is 0-1,559.7 VND/kWh (excluding value added tax). Thus, compared to the electricity generation price range in 2022, the ceiling price of coal-fired electricity has decreased by about 200 VND/kWh (the price range in 2022 is 1,773.76/kWh). (See more)

thermoelectric 1446.jpg — The ceiling price for coal-fired thermal power has been reduced. (Photo: Luong Bang)

Proposal to postpone the implementation of the regulation on reducing the ratio of short-term capital for medium and long-term loans

The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the Prime Minister and the State Bank of Vietnam (SBV), requesting the SBV to urgently consider amending and supplementing Circular 08/2020/TT-NHNN, extending by 12 months the time of application of the regulation that credit institutions use a maximum of 30% of short-term mobilized capital for medium- and long-term loans.

According to Circular 08, October 1 is the date to apply the regulation that credit institutions can use up to 30% of short-term mobilized capital for medium- and long-term lending.

Savings deposits are pouring into banks

According to the latest data from the State Bank of Vietnam, the amount of savings deposits of people in the banking system continuously sets new records, despite the continuous decrease in bank interest rates on deposits.

As of the end of July 2023, residents' deposit balance in the banking system set a new record of VND 6,389,593 billion, an increase of VND 6,707 billion compared to the previous month and an increase of 8.93% since the beginning of the year. After 1 year, since the end of August 2022, the total savings deposit balance of residents has increased by more than VND 752,000 billion. (See more)

Proposal to reduce VAT until mid-2024

The Government assigned the Ministry of Finance to review and submit to the National Assembly the extension of the 2% value-added tax (VAT) reduction for another 6 months, until mid-2024. This content was stated in the resolution of the regular Government meeting in September, announced by the Government Office on October 5.

VAT has been reduced by 2% from July 1 for goods and services currently subject to a 10% tax rate and will last until the end of this year, according to the National Assembly's Resolution.

Ministry of Finance continues to inspect a series of life insurance companies

At the regular press conference of the Ministry of Finance on the afternoon of October 5, Mr. Doan Thanh Tuan, Deputy Director of the Department of Insurance Management and Supervision (Ministry of Finance) - said that this unit has completed the inspection of two life insurance companies, AIA and Dai-ichi.

The Ministry of Finance is inspecting Manulife and another company. From now until the end of the year, the Ministry of Finance will continue to inspect 6 insurance companies as planned. (See more)

'Replacing the chair' and CEO of many banks

Since October 3, Mr. Nguyen Hoang Hai has been appointed as Acting General Director of Vietnam Export Import Commercial Joint Stock Bank (Eximbank). Mr. Hai has nearly 20 years of experience working in the banking and finance sector.

The Board of Directors (BOD) of Petrolimex Joint Stock Commercial Bank (PGBank) has just received a resignation letter from Mr. Nguyen Phi Hung from the position of Chairman of the Board of Directors and from the position of member of the Board of Directors for personal reasons.

Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) has just announced the State Bank of Vietnam's approval letter on the appointment of Ms. Tran Tuan Anh as General Director. Vietbank has been vacant this position since October 2021.

Similarly, An Binh Commercial Joint Stock Bank (ABBank) decided to appoint Mr. Pham Duy Hieu (45 years old) - Deputy General Director as acting General Director to replace Ms. Le Thi Bich Phuong.

Proposal to collect non-stop fees at airports

The Airports Corporation of Vietnam (ACV) has just sent a document to the Ministry of Transport regarding the implementation of cashless toll collection and non-stop automatic toll collection at airports. ACV said that recently, the company has worked with units providing non-stop electronic toll collection services.

Accordingly, technically, the use of RFID radio wave object identification technology to implement non-stop toll collection at airports can be applied along with the current toll collection methods that ACV is implementing.

Small and medium enterprises can borrow capital at an interest rate of 1.2%/year.

The Small and Medium Enterprise Development Fund, Ministry of Planning and Investment has just announced that businesses can borrow from the Small and Medium Enterprise Development Fund with a short-term interest rate of 1.2%/year. If borrowing medium and long term, the interest rate will be 4.4%/year. The interest rate will take effect from October 4.

For projects and production and business plans of small and medium enterprises that have signed indirect loan contracts before the Decision takes effect, the loan interest rate according to the signed contract shall continue to be applied.

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