New laws taking effect in Vietnam in 2016 will significantly impact foreigners' rights and obligations: - The Law on Social Insurance makes social insurance compulsory for foreign employees, entitling them to benefits like sickness, maternity, retirement, and death insurance. It also provides paternity leave for male employees. - Decree 122/2015 sets new minimum regional salaries that serve as the basis for social insurance, health insurance, and unemployment insurance contributions. - The Law on Civil Status requires foreigners to register civil statuses like births and marriages at the local ward level instead of provincially. Raising special consumption taxes on cigarettes, beer, and wine aims to increase state budget revenues and public health

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Vietnam Economic Times interviewing lawyer in Vietnam Oliver Massmann
on impact of new laws for foreigners in Vietnam:
1. In your opinion, which are the important regulations taking effect in the year of 2016
that foreigners may care about and the reasons for those?
Answer:
Note: The below answer will only address regulations that have direct impact on foreigners in
Vietnam. Other regulations which do not regulate foreigners specifically in their governing
scope will then be excluded.
Foreigners should be aware of the following legal documents will be in effect from January
2016 as these new laws will significantly impact their rights and obligations:
- Law on Social Insurance:
o Foreign employees with work permit or practicing certificate or practicing license issued by
Vietnam’s competent authorities are now subject to compulsory social insurance.
o Accordingly, foreign employees are entitled to insurance on their sickness, maternity, labor
accidents, occupational diseases, retirement and death. These entitlements are the same as what
local employees currently enjoy.
o From 01 January 2016, male employees (including foreign ones) are entitled to paternity
leave if the wife is on maternity.
In particular, male employees are entitled to 5 working day leave if his wife is on normal
maternity. In case of operation or giving birth to an under 32-week baby, a 7-working-day leave
will apply. In case of giving birth to a twin, paternity leave is 10 working days, with additional 3
working day leave for each further baby. In case the wife gives birth to a twin or more babies by
operation, 14-day paternity leave applies. Please note that this paternity leave only applies within
30 days from the birth date of the baby.
o Male employees when adopting a child under 6 month old are also entitled to the same
paternity treatment as in the case of female employees adopting such child.
- Decree No. 122/2015/ND-CP: in relation with the social insurance participation,
foreigners should also note the following minimum regional salary, which serves as the basis to
calculate payment amount of social insurance, health insurance and unemployment insurance; o
Region I: 3.500.000 VND/month (increasing by 400.000 VND/month) o Region II: 3.100.000
VND/month (increasing by 350.000 VND/month) o Region III: 2.700.000 VND/month
(increasing by 300.000 VND/month) o Region IV: 2.400.000 VND/month (increasing by
250.000 VND/month)
- Law on Civil Status:
o Foreigners permanently reside in Vietnam must register their civil status with the People’s
Committee at ward level instead of the provincial level as previously.
o Children of foreigners born in Vietnam are allowed to register their birth with the People’s
Committee at ward level where the mother or father lives.

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o Foreigners residing in Vietnam wishing to register their marriage in Vietnam can do so at the
People’s Committee at ward level where the wife/ husband lives. Interview is no longer required
so that the total time to register a marriage is reduced by half to 15 days (compared with 25 days
previously) o Foreigners wishing to apply for a Confirmation on marital status can do so at the
People’s Committee at ward level where they register their permanent or temporary residence.
The Confirmation on marital status is issued within 3 working days from the receipt of a valid
dossier and will be valid for 6 months from the issuance date.
2. Starting January 1st, special consumption tax on cigarette, beer, wine will be raised.
How will this affect the economy of Vietnam in the long-term? Also, with this, how do we
expect the change in Vietnamese's consumption habit of these commodities?
Answer: For alcohols of 20oC and above, from 01 January 2016 to 31 December 2016, the tax
rate is 55%. This rate will be 60% for the whole 2017 year and 65% from 01 January 2018
onwards. The schedule for increase in special consumption tax rate for beer is the same.
Meanwhile, this rate for cigarettes is higher (70% from 01 January 2016 to end of 2018 and 75%
from 01 January 2019 onwards).
In my opinion, the increase of such tax rate will on its face increase the State budget. It will
somehow reduce the number of people smoking and drinking alcohol, thereby protect public
health and prevent negative social issues related to social orders, traffic safety and crimes related
to smoking and drinking alcohol.
However, given the fact that the increase is not very high (compared with the increase in
minimum regional salary), the retail price of these goods will not be much affected, leading to
stagnant change in purchasing power of the products. Adults may still continue to consume these
goods. Moreover, the tax increase may create more chances for smuggling which is already very
complicated and hard to control in Vietnam.
Thus, together with policies of increasing special consumption tax, the Government should adopt
regulations on strict control of smuggling, educate young people’s awareness on serious effects
resulting from consumption of alcohols and cigarettes.
3. Starting July 1st, individuals, organizations are not permitted to send commercial
information to e-addresses (including email, mobile number, personal sites and other
similar means) in the cases the recipient does not accept that. How is your view on this
regulation?
Answer: The spread of spam emails and text messages with advertising nature has created strong
disturbance for internet and network users. While previous regulations such as the Decree and
Circular on preventing spam emails and messages or Circular on managing prepaid subscribers
seem to have limited impact, this new regulation is another effort of the Government to fight
against the more serious and much more complicated forms of advertisment. I really doubt about
whether this new regulation could bring significant positive improvement to the current

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situation, but highly hope that with cooperation from network operators, strong sanctioning
measures from the state authorities, the situation will improve gradually.
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you
have any questions or want to know more details on the above. Oliver Massmann is the General
Director of Duane Morris Vietnam LLC.

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