Vietnam Issues Resolution Supporting Businesses Affected By COVID-19: Resolution 105

Posted: 22nd September 2021 09:33

As done previously, the Vietnamese government has issued another law supporting businesses to overcome the effects of the pandemic. Resolution 105/NQ-CP was issued on September 9 and goes in effect on the date to support businesses, cooperatives, and household businesses affected by COVID-19.

Namely the Resolution aims to meet the dual goals of containing the pandemic and resuming business production and activities to spur economic growth. It also aims to support and resolve issues related to production, business operations, and reducing the number of businesses, which temporarily suspended production or that have gone bankrupt.

In addition, the Resolution looks at supporting enterprises in the form of credit support, tax extensions along with policies to support employers and employees.

One of the most significant development is the easing of regulations for issuing, extending, and certification of work permits for foreign workers in Vietnam. Decree 152, which was issued in February, had tightened regulations on hiring foreign workers prompting several businesses to voice concerns.

The government has taken note and has asked the Ministry of Labor, Invalids and Social Affairs (MoLISA) to instruct local provincial authorities to relax restrictions and some conditions on the issuing and renewing of work permits. Specifically, these include:

MoLISA has also been tasked with introducing policies to help with insurance premium support for employees and businesses which needs to be done by September 2021.

On this, Mai Quoc Hung, Associate for Dezan Shira & Associates, HR and Payroll Ho Chi Minh City Offices HR notes that “After delaying contribution to the death and pension fund in Resolution 68 (the business still need to pay after the delay), the waiver of late payment interest for mandatory insurance is another mechanism that allows businesses to reduce their losses. Businesses are already seeing a depletion of funds as they have to maintain a workforce and adapt to the 3-on-site rules to maintain production. Nevertheless, the government is likely to issue special conditions to ensure that the social insurance fund is protected.”

Apart from human resource related issues, the government has also asked relevant agencies to ensure business activity can resume while also dealing with the pandemic. These include:

Resolution 105 also requests authorities to temporarily suspend unnecessary audits of businesses to a later time for those which were planned in 2021.

The above measures underline the government’s intention to bring the economy up to speed. Businesses have welcomed the new Resolution particularly on the easing of regulations of work permits and experience for foreign workers as these will ease challenges for foreign hires and employers alike. Businesses that want to hire foreigners should ensure they are fully aware of hiring regulations and make preparations accordingly.

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