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Effective policies from August

Higher pension and social insurance subsidy, social insurance payment level, and adjustment of the average electricity retail sales come into effect since August, 2017.

Corporate governance for public companies

The Government's Decree 71/2017/ND-CP (Decree 71) dealing with the principles of corporate governance for public companies will help them manage their businesses better.

Decree 71, an upgrade of Circular 121/2012/TT-BTC (Circular 121) issued by the Finance Ministry on July 26, 2012, will take effect on August 1.

It has eight chapters and 38 articles on the company's shareholders, shareholder meetings, board managers, and the board of supervisors.

The new regulation separates the obligations and duties of the chairman and the general director, improving business management of the firm.

Management of natural resource and environment information

Decree 73/2017/ND-CP on the collection, management, exploitation and use of natural resource and environment information and data to regulate the collection, management, exploitation and use of information and data on natural resources and environment was issued on June 14 and took effect since August 1, 2017.

The natural resource and environment data includes land, water, geology and mineral, environment, hydrometeorology, climate change, geodesy and cartography, remote sensing, sea and islands.

Information and data on natural resources and environment also include results of inspection, settlement of disputes, complaints, denunciations, settlement of compensation for damages which have been settled by competent state agencies; legal normative documents, standards, technical regulations, technical guidelines, technical and economic norms on natural resources and environment; files, results of strategies, plans, programs, projects, research projects on science and technology on natural resources and environment; other information and data on natural resources and environment in accordance with the law.

Higher pension and social insurance allowances

Decree No.  76/2017/ND-CP adjusts the monthly pensions, social insurance allowances and social allowances, which are increased by 7.44% since July 1, 2017 for eight groups of objects.

The Decree shall take effect since August 15, 2017.

Security at seaport border gates

Decree 77/2017/ND-CP, dated July 3, 2017 stipulates regulation on the security and order at seaport border gates. The document shall come into force since August 20, 2017.

Deposit insurance limit

Decision No. 21/2017/QD-TTg, dated June 15, 2017 on deposit insurance limit shall come into force since August 5. Accordingly, the maximum insurance payable to a depositor for all deposits at an insured organization will be VND 75 million (around US$ 3,300) from the current VND 50 million.

Adjustment of average retail electricity price

Decision 24/2017/QD-TTg dated June 30, 2017 stipulates a mechanism for adjustment of average retail electricity price. Since August 15, the Electricity of Viet Nam shall be able to raise the average retail price of electricity by 3% to less than 5% without asking for permission from the Ministry of Industry and Trade (MoIT).

The hike can be done when there are fluctuations in input prices, such as the price of coal and gas, or changes in foreign exchange rates, which result in increases to production costs.

The duration of each hike must last at least six months.

In case of an increase from 5% to less than 10% but still within the permitted price range, EVN must ask permission from MoIT./.

By Huong Giang (Source:

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