Viet Nam - A Guide for Business and Investment - asean-korea centre

PART III. BUSINESS AND FOREIGN INVESTMENT ENVIRONMENTrights and obligations of employers and employees, inrelation to working hours, labour agreements, paymentof social insurance, overtime work, strikes, and terminationof employment contracts, among other things.In addition, there are several specific implementingdecrees and circulars related to the provisions of theLabour Code.The law provides for an eight hour working day and 48hour working week. An employer and an employee mayagree that an employee work overtime, but this mustnot exceed 200 hours a year (in special cases, suchlimit may be extended to 300 hours subject to the approvalof the relevant State competent authority). Witheffect from 2 October 1999, a number of organisationssuch as Government offices, administrative agenciesand socio-political organisations have implemented a40 hour working week. Businesses in other economicsectors, including businesses with foreign investedcapital, are also encouraged to adopt a 40 hour week.In any employment contract wages and salaries shouldbe defined clearly in Vietnamese Dong (except for employeesworking for foreign representative offices andbranches: their salaries are still quoted in US dollarsand paid in Vietnamese Dong). The wages of employeesworking in foreign invested enterprises are subjectto minimum rates determined by the Ministry ofLabour, War Invalid and Social Affairs from time to time.The current weekly minimum wage is as follows:- VND870,000 (approximately US$54) for unskilledworkers in urban districts of Hanoi and Ho Chi MinhCity;- VND790,000 (approximately US$49) in rural districtsof Hanoi and Ho Chi Minh City; urban districts of HaiPhong; Ha Long City in Quang Ninh province; BienHoa City in Dong Nai province; Vung Tau City inBa Ria - Vung Tau province; Thu Dau Mot Town andThuan An, Di An, Ben Cat and Tan Uyen districts inBinh Duong province;- VND710,000 (approximately US$44) for otherprovinces.Currently, an employer is also required to contribute15% of total wages to a social insurance fund administeredby the State, and 2% for health insurance purposes.The contribution by the employees is 5% and 1%,respectively. Expatriates are not required to contributeto the health and social insurance funds.As of 1 January 2007, the new Law on Social Insurancewill come into force. The salary subject to social insurancecontribution requirement will be capped at 20times of the minimum salary applicable to domestic enterprises(currently, VND450,000/month). Before 2010,the rates of contribution to the social insurance fund bythe employers and the employees remain unchanged(i.e. 15% and 5%, respectively). From 2010, such rateswill increase 1% in every two years, until they reach8% for employees and 18% for employers. In addition,from 1 January 2009, the employer and the employeeare required to contribute 1% of the salary (subject tothe above cap) to the unemployment insurance fund.16. Intellectual PropertyIn recent years the Government has taken various measuresto increase the legal protection of intellectualproperty, and created an environment of respect of intellectualproperty compared with other neighbouringcountries. Intellectual property rights are protected bythe Civil Code (1995 and 2005), the Law on IntellectualProperty (2005) and a host of subordinate legislation.Production of Electronic parts of Hanel computer - Sai Dong B - HanoiTelecommunication center44 Viet Nam - A Guide for Business and Investment