NEW RESOLUTION ON SUPPORTING BUSINESSES DURING THE COVID-19 EPIDEMIC

In Resolution 105, the Government sets out a plan to get the economy back on its feet while keeping the public safe. It gives specific instructions to various ministries on production, the supply chain, work permits, vaccination passports, and financial support to companies.

12 Sep 2021

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LEGAL UPDATE

The COVID‑19 epidemic severely impacts enterprises, cooperatives, and business households that play an essential role in maintaining economic-social growth and combatting the epidemic. To support these businesses, the Government issued Resolution No. 105/NQ-CP on 9 September 2021 (Resolution 105).

Under Resolution 105, the Government allocates tasks to several ministries and government agencies to support businesses while setting out the following objectives:

  • Focus on restoration and development of production and business activities along with the prevention of COVID-19;

  • Support, remove difficulties and obstacles that businesses are facing, minimising the number of businesses suspended temporarily, dissolved or bankrupted due to COVID-19's impact; and

  • Achieve specific key indicators in supporting businesses impacted by COVID-19 from now to the end of 2021.

In this update, we set out some notable points for your information.

1. Facilitate Resumption of Operation while Implementing Pandemic Prevention Methods

The Ministry of Health (MOH) is in charge of supplementing groups prioritised for vaccination to meet production and business development demand in essential industries. MOH will also amend regulations on health insurance allowing coverage for telemedicine services. Finally, MOH will research and construct the mechanisms and provide guidance for businesses to import and procure vaccines, testing equipment, and conduct self-testing.

The Ministry of Information and Communication (MOIC) is in charge of developing telemedicine platforms, issuing a digital COVID-19 prevention handbook, and building a digital platform to support pandemic prevention, including vaccination, testing, medical declaration, issuance of green channels and green certificates.

The Ministry of Science and Technology (MOST) is in charge of implementing mechanisms for promoting research and technology transfer to produce COVID-19 vaccines and medicines in Vietnam.

2. Ensure Circulation of Goods and Overcoming Supply Chain Disruptions

The Ministry of Transport (MOT) is in charge of uniformly implementing the green channel for road and waterway transport nationwide, inter-provincially and inter-regionally, to transport goods safely and smoothly while simplifying procedures allowing efficient logistics. No additional conditions and permits to hinder the circulation of goods, especially for essential goods and production materials, will be put in place.

The Ministry of Agriculture and Rural Development will ensure there is no disruption in the supply chain, especially for food and essential goods.

The Ministry of Finance (MOF) and the General Department of Customs (GDC) will allow submission of scanned copies certified by digital signatures to replace the need for original notarised and certified documents. They will also instruct local customs to enable continuous, timely, and safe customs clearance for machinery components for the electronics and high-tech sectors. The same applies to businesses importing essential goods to prevent and cure COVID-19 and medical and children's nutritional food.

Finally, local authorities will evaluate the practical possibility of businesses to meet the pandemic prevention requirements when applying the models two destinations, one route, three on the spot, or other models suitable to the local situation. They will minimise the closure of complete factories.

3. Support to Reduce Costs and Financial Difficulties

The Ministry of Labour, War Invalids and Social Affairs (MOLISA), MOT, Ministry of Industry and Trade (MOIT), MOF, Ministry of Culture, Sports and Tourism (MCST), Ministry of Nature Resources and Environment (MONRE), Ministry of Justice (MOJ), State Bank of Vietnam (SBV), Vietnam General Confederation of Labour (VGCL) and local authorities will collaborate to amend or issue new policies related to payment of social insurance premiums, trade union fees, transportation service charges, electricity prices and charges, land rents, import duties, excise taxes, deposits for travel service business, and fees for the grant of mineral mining rights.

4. Loosen Work Permit Requirements for Workers and Experts

MOLISA shall instruct localities to flexibly implement and loosen regulations on granting or extending work permits or confirmations for foreign employees working in Vietnam. It should be done in conformity with the new context while ensuring safety in pandemic prevention. Furthermore, MOLISA shall provide recommendations for businesses to apply abridged procedures in negotiation with employees to increase overtime hours suitable to the current situation of COVID-19.

Finally, foreign workers in possession of a valid work permit can work in another city or province without the necessity to request a new work permit if this is for up to six months only.

The Ministry of Foreign Affairs (MOFA) shall continue implementing Vaccine Diplomacy, mobilising, and promoting partners to supply vaccines according to commitments in terms of quantity and deadlines, early transfer technology to produce vaccines and drugs for COVID-19 treatment, support equipment, supplies and medical-biological products. In addition, the MOFA shall speed up the research, negotiation, and mutual recognition of the Vaccine Passport with other countries, territories, and partners in preparation for reopening the economy once the circumstances allow it.

For more information, please contact:

Mark Oakley / Managing Partner

mark.oakley@acsvlegal.com

Phuong Huynh / Senior Associate

phuong.huynh@acsvlegal.com

Ly / Associate

ly.nguyen@acsvlegal.com

© 2021 ACS Legal Vietnam Company Limited – All rights reserved

This legal update is not an advice and should not be treated as such.

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