This is the question on many expat lips, as also that of their employers. As an expatriate working in Hanoi with a full-time contract, Oliver is worried about several aspects of the new compulsory social insurance policy introduced by the Vietnamese government. The 33-year-old Estonian teacher is concerned that he will have to spend part of his monthly income on social insurance premiums and will have less chance of securing a pay rise as his employer will also have to pay insurance contributions for him. Like many other expatriates, he already has adequate medical coverage from his company. He also has no plans to retire in Vietnam and is not thinking about pensions here. Thus, he sees no sense in asking him to pay the insurance. "I haven’t made the decision to stay in Vietnam until my retirement," said Oliver, who asked to be identified only by his first name. Under a decree on compulsory social insurance for foreigners working in the country issued by the government last … [Read more...] about Confusion, worry reigns over Vietnam’s new insurance policy
New insurance laws
FIEs complain about overtime hours, compulsory social insurance
VietNamNet Bridge - Foreign invested enterprises (FIEs) complain that regulations related to the use of laborers are creating difficulties for their operations. The number of overtime hours must not be higher than 200 hours a year The representatives of FIEs attending a meeting with the Binh Duong provincial authorities in late July voiced the same opinion that the regulation about the maximum number of overtime hours is unreasonable. Under the current laws, the number of overtime hours must not be higher than 200 hours a year, and in special cases, must not be higher than 300 hours. Meanwhile, many workers want more overtime hours to have extra income, while enterprises want more overtime hours to fulfill urgent orders. The senior executive of a paint manufacturing enterprise in BInh Duong province said the current regulation puts pressure on enterprises. Because of the sharp increase in number of orders, the company encourages its workers to do overtime. However, with the … [Read more...] about FIEs complain about overtime hours, compulsory social insurance
Myanmar launches new corporate law to attract foreign investment
Myanmar has built a new companies law to secure more investment. (Photo: AFP/VNA) Hanoi (VNA) - Myanmar has built a new companies law after amendment of its outdated Companies Act-1914 to adapt to the current age, registering an important milestone with its efforts to promote foreign investment. The new Myanmar Companies Law 2017 came into effect on August 1, 2018, enabling a company's registration process to be done electronically now. All companies are set to re-register within six months from August and the re-registration process is to be completed through the Myanmar Companies Online (MyCO) system. Under the previous Myanmar Companies Act 1914, restrictions were imposed on foreign companies, leading to hesitation of investors and obstacles to foreign capital flows, thus hindering economic development. According to the new Myanmar Companies Act 2017, foreigners are permitted to own up to 35 percent of stake in local companies, which facilitates business undertakings and … [Read more...] about Myanmar launches new corporate law to attract foreign investment
Vietnam ready to slap compulsory social insurance tax on expats
Vietnam's labor ministry has announced that is going ahead with a controversial provision requiring expat workers in Vietnam to make social insurance payments, raising concerns among foreign workers and businesses regarding aggravated costs. Tran Thanh Nam, deputy head of the ministry’s Department for Social Insurance, said a draft decree for the new provision of the 2014 Law on Social Insurance has been sent to the government, and is expected to be ratified in about a month. The decree states that only foreign workers with labor contracts of at least a year in Vietnam are subject to the compulsory social insurance plan, said Nam, as reported by Vietnam News. “This group, however, excludes foreign workers who are temporarily transferred to work in Vietnam from overseas parent companies, regardless of whether they have labor contracts or not,” he said. The social insurance package covers sickness, maternity leave, occupational accidents, retirement and death, with … [Read more...] about Vietnam ready to slap compulsory social insurance tax on expats
Vietnam ready to slap face compulsory social insurance tax on expats
Vietnam's labor ministry has announced that is going ahead with a controversial provision requiring expat workers in Vietnam to make social insurance payments, raising concerns among foreign workers and businesses regarding aggravated costs. Tran Thanh Nam, deputy head of the ministry’s Department for Social Insurance, said a draft decree for the new provision of the 2014 Law on Social Insurance has been sent to the government, and is expected to be ratified in about a month. The decree states that only foreign workers with labor contracts of at least a year in Vietnam are subject to the compulsory social insurance plan, said Nam, as reported by Vietnam News. “This group, however, excludes foreign workers who are temporarily transferred to work in Vietnam from overseas parent companies, regardless of whether they have labor contracts or not,” he said. The social insurance package covers sickness, maternity leave, occupational accidents, retirement and death, with … [Read more...] about Vietnam ready to slap face compulsory social insurance tax on expats